Dilmah Ceylon Tea: Market Development in Australia
The marketing environment
Dilmah Ceylon tea made its entrance to the Australian Market in the year 1985 where the founder Mr Merrill Fernando, one of the major Ceylon tea exporters in the world, managed to convince a major supermarket retailer to stock the tea brand. With time the brand gained popularity in the market. The marketing environment within Australia is relatively lucrative. This is so because of Sri Lanka’s ability identify the opportunity Australia offered whereby it could import Ceylon products because of the waning Ceylon tea content in the various products offered by other influential companies. In this respect, the move to instigate the importation of the Ceylon tea as a brand packed from the land of Sri Lanka to Australia was rather advantageous in that it saved on costs since Sri Lanka offered a low packaging and production cost. Another benefit from the Ceylon tea import from Sri Lanka to Australia was that both countries would enjoy the benefits brought about by the large profit margins within the chain of distribution and exempted import duties and taxes for any tea products brought into the Australian border (Kelegama, 2006).
All this was strategic in that it provided a suitable platform that would allow Sri Lanka to plan and prepare to develop and come up with new brands of its own. In this respect such development of the tea Market within Austarlia would gradually build a trusted credibility for the Ceylon tea and products. Dilmah Ceylon Tea eventually will be differentiated as a premium brand when put into comparison to other products of tea in the market
Can the market be segmented?
The market for Dilmah Ceylon Tea can indeed be segmented. Most tea consumers are usually the elderly with the middle aged and the seniors taking a larger percentage. In this respect the market can be segmented to fit these categories of tea consumers. The target market therefore would be the senior and middle aged. It would therefore be in order to promote the brand in work places and senior homes as a strategy to widen the consumer base of the tea product.
How would you manage the marketing mix?
Since the Dilmah Ceylon tea has already made its name within the Australian market itself is a product that is steadily available for it is regularly imported in large quantities from Sri Lanka. The main attribute about the Dilmah that I would focus on promoting would be its freshness and its quality. This would go a long way in enticing consumers to remain loyal to the brand. (Richter, 2012) Most consumers would favour having a product of quality. Aggressive advertising would become a very important strategy to keep the brand afloat and appealing to the consumers. Mass media advertising would therefore be in line as a method to promote the Dilmah Ceylon Tea. These mass media would include radio broadcasts and television commercials which would vastly spread the awareness of the product.
Branding and packaging would also play a big role within the marketing mix. I would make sure the theme colours for the brand are appealing to the eyes of the consumer in a way that it would set a clear distinction from a regular product as a premium brand. Nevertheless it would also be in order to take into the consideration the pricing of the brand. I would position the price between well known brands within the mainstream such as Lipton. In doing so the brand would gain more favour with the consumers.
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.KELEGAMA, S. (2006). Contemporary economic issues: Sri Lanka in the global context : weekly commentaries on economic issues published in the Sunday Island, 2005-2006. [Colombo], Sri Lanka Economic Association.
MACQUEEN, H. (2004). Social sketches of Australia: [1888-2001]. St. Lucia, Qld, Univ. od Queensland Press
RICHTER, T. (2012). International marketing mix management: theoretical framework, contingency factors and empirical findings from world-markets. Berlin, Logos.