Marketing Rakura Tea
Marketing Rakura Tea
Marketing Rakura Tea
Submitted By:
Submitted to: P14010715
Hans Breitenstein
P14010121
P 14010732 Date of
Submission: 14-April-2015
P14010473
P14010794 Word Count:
2,374
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1. INTRODUCTION............................................................................ 4
2. RESERCH METHOD. 5
2.1 Primary data collection ... 5
2.2 Secondary data collection .. 5
3. THE CHALLENGE.. 5
4. SITUATIONAL ANALYSIS. 5
4.1 Company analysis. 5
4.2 Customer analysis. 6
4.3 Buying behavioral process... 6
4.4 Competitor analysis... 7
4.5 Collaboration... 7
5. SWOT ANALYSIS 8
5.1 Strength 8
5.2 Weaknesses 8
5.3 Opportunity 8
5.4 Threat. 8
6. SEGMENTATION. 9
6.1 Geographical.. 9
6.2 Demographic.. 9
6.3 Psychographic 9
6.4 Behavioral... 9
7. MARKETING MIX 10
7.1 Product analysis.. 10
7.2 Price determination. 11
7.3 Place (Distribution).. 11
7.4 Promotion.. 11
8. ACTION PLAN.. 12
9. CONCLUSION.. 12
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ABSTRACT
This study focuses in Marketing Nepalese Rakura tea in Denmark. The main
objective of the study is to find out if Rakura will make profit if it is promoted
well in the country.
A thorough study outlining based on the methodologies that are being used on
how to have an effective promotion to persuade in Danes in buying Rakura tea.
An online survey is being conducted to collect primary data and desk research
for the secondary data. The findings were analysed in order to know to how
manipulate the target market through an effective marketing. Furthermore, the
results were represented in the conclusion.
MARKETING RAKURA TEA IN DENMARK
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1. INTRODUCTION
Rakura tea is one of the popular tea brands with a tagline of Drink Health from Himal Tea
industries in Nepal. It was founded in 1973 but it launched Rakura tea in 2012 (Bashyal, 2014).
Rakura tea aims not only to sale its product in domestic market but to market it as well in foreign
countries. Himal Industries has already been exporting Rakura tea in some countries such as:
Germany, UK, Iran, Japan, India, Holland and Pakistan (kantipur.com, 2012). Rakura tea is
increasing its popularity and consumption by 10%-15% annually (Bashyal, 2014). It launched three
different varieties such as green, black and CTC tea. Total annual production of Rakura is 196,000
ton (Bashyal, 2014). It has been promoted in the sense of health benefits such as its effectiveness
against high blood pressure, diabetes and cancer (Bashyal, 2014). Green tea is also publicized as
being good for healthier skin and building a stronger immune system and assisting hair growth and
Danish people are becoming conscious about the drink green herbal tea for health purpose.
Denmark is one of the worlds tea drinkers (Country report, 2015). Denmark has 0.317 pound per
person average annual tea consumption (Euromonitor, World Bank, 2014). Total volume sales of
tea increased from 2012 & 2013 while other hot drinks continued to be affected by lower volume
sales and Tea is foremost driven by the growing health and wellness trend in Denmark, while other
hot drinks sales are restricted by its unhealthy image (Country report, 2015). Danish people are
use green herbal tea for the sake of their health and Rakura is that product which can satisfy to the
Danish people.
2. RESEARCH METHOD
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For this project primary and secondary data collection are used to get the correct information about
the Rakura tea. The information that is being collected will be going to use to analyse the niche of
To obtain primary data, the group use descriptive technique to help better understand who will be
the right customers for Rakura Tea. The designed an online survey questionnaires was created
and mailed the eleven questions to one hundred fifty Danes in selected and random matter.
For the desk research collection, books and websites have been used to gather more information
to help analyse on how to market the Takura tea in the right place and time.
3. THE CHALLENGE
Nowadays, the awareness about healthy lifestyles is growing. Denmark is one of the countries that
are health oriented. The Rakura Tea is the one of the finest tea in the World and it is focusing to
target health and wellness trend. The aim is to of Rakura Tea is to be marketed in Denmark and to
4. SITUATIONAL ANALYSIS
The goal of Himal Tea Industries Private Limited is to generate a reasonable profit and to export
the tea worldwide. It is emerging in the new trends now as what their tagline say Drink health,
obviously the Rakura Tea is targeting people that are concern with their health. Although this tea is
just recently launched last December 01, 2012, it gained an amazing respond in the market.
Rakura is accessible in 600 major outlets. It is available in large super markets, five star hotels,
Customer analyses is most important for business plan when the business going to market a new
product in the country. Rakura tea is a new product and it is going to be marketing in Denmark.
According to the result of the survey questionnaires there are 74 female that is 67.3% and 32 male
that is 32.7%. Most of the respondents are in the age bracket of 25 years old above which have
89.2%. Most of the respondents drink two or more cups of tea everyday. Furthermore, 90 out of
111 respondents want to try Rakura Tea. There could be so many types of customer like brand
oriented, price and taste oriented, quality and health oriented. In the result of the survey conducted
quality, taste and ease of use have the high percentage. In the business, market and customer are
sensitive so it is important to take into consideration the value of product. In accordance with the
result of the survey customer are not price sensitive. They are willing to pay a high price as long as
the need is satisfy like the taste, quality and ease of use.
There are five senses that influence the customer to purchase a product. These are vision,
audition, smell, taste and touch (Aradhna A., 2013). There are a lot of attributes that a product can
attract the customers. Once the customers know the problem or need then they will explore to seek
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any information or alternative. In the context of the Rakura Tea, customers feel the need to satisfy
their wants to be healthy. In addition, when customers will go to evaluate any product, costumers
just tend to purchase any brand jut to fulfil their needs. Thats why it is important for the products to
convey the correct information that the customer wants. In order for customer to choice Rakura Tea
instead of the other brands, it is vital to attract the five senses of buying behaviour.
The strategy about launching Rakura tea and extending market in Denmark is quite challenging in
the company. The company has to analyses their competitors before going to the new market
because it has to face different kinds of competitors. The competitors of Rakura Tea in Denmark
are Lipton, Pickwick and Twining. Their prices in Fakta supermarket are the responding Lipton has
19.00dkk, Pickwick has19.50dkk and Twining has 18.95dkk. They are popular tea globally. In
Danish market Lipton gain 21%, Pickwick has 26% and Twining has 13%. (Euromonitor, World
Bank, 2014) This value of share may gain more in the future. It is important for the Rakuta Tea to
add value and Position itself in the market to compete with the existing competitors.
4.5 Collaboration:
Rakura tea will go to collaborate with COOP trading. It is a good start for a product to gain market
in Denmark because Coop Denmark has four thousand retail shops in Nordic countries and have
more eleven consumers. (Coop Trading, 2014) In addition in Denmark they have SuperBrugsen,
Irma, Kvickly, Fakta, Coop Nr, Coop Konsum, Coop Extra, Coop Mega, Prisma, etc.
5. SWOT ANALYSIS
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Launching the Rakura tea in Denmark is challenging so the company. It needs to analyse the
strength and weakness of Rakura tea and all the threats from the market and opportunity from that
threat.
5.1 Strength:
Rakura is well known product for its different interesting flavours especially that it is focusing on the
health and wellness. Among them green flavour is special and popular for health. It has three layer
and doubled chambered packaging style that protect from microbes and climate change.
5.2 Weakness:
For newly launched product, this might difficult for the company to take a position and survive in
5.3 Opportunity:
Launching Rakura tea product in Denmark will be the great opportunity to expand market and
5.4 Threat:
Main challenging factors in Danish market is the presence of competitors and their market share
value. Import policy of Denmark as well. Producing and distribution in Denmark may take time and
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costly. This will affect and raise the price of product in market. Launching Rakura in Denmark has
Overall, the weakness can be the strength when Rakura tea position itself properly and gain
market in Denmark. On the other hand the threats can be opportunity by taken into considerations
to follow the import policy in Denmark and have a competitive advantage among the competitors.
6. SEGMENTATION
6.2 Demographic: Demographic always include different factor such as age, gender, family size,
income status, population density, religion and social class etc. that fluctuate the buying process of
product (Net MBA, 2010). According to our survey there is clearly shown, comparatively female tea
drinker are more than man that represents female will be more fascinated than the man by the
Rakura tea. So that Rakura product should focus more to the women.
6.3 Psychographic: Rakura tea should be distributed in the market as an opinion, interest and
attitude to the product. In the survey from 100 Danish people, 86% organic tea, 31.1% Green tea
6.4 Behavioural: In our Survey there are 60.6% people are interest on the branded tea and more
than 50% Danish people use to quality tea with good taste ant the ease of use. Only 12.8 percent
Danish are curious about the tea price. So Rakura should not have to more curious about the
price. For Launching program me of Rakura should be consider as a Brand loyalty, quality
7. MARKETING MIX:
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7.1 Product analysis: Rakura is a packaged eye catching product and has good brand
recognition, which is available especially in three-premium flavour as a black tea, green tea and
CTC tea. Rakura tea is produced through innovation like odourless rapid release filter paper,
surgical grade antimicrobial aluminium wire, unbleached pure cotton threads as well as food grade
tags that are made from natural fibers. (ekantipur.com, 2012). Product analysis use to examine
different types of factors such as: feature, packaging, styling, reliability and size service.
Features: Rakura tea is an affordable high quality product with the purpose of health and fitness,
which contain natural flavour. Rakura has brought seven natural healthy product containing
varieties of flavour such as: natural jasmine organic green tea, natural lemon and honey, organic
green tea, organic Himalaya sencha green tea, Himalaya chai / masala chia, organic Himalayan
green tea, organic Himalayan orthodox black tea and CTC with whole leaf tea. This Rakura brand
provides consumers one of the finest experiences with an amazing taste. (myRepublica, 2014)
Packaging: Rakura has easy and attractive packaging style, three layers pack products in order to
protect from microbes and climate change. Rakura tea can be easily recognized by Danish
costumers according to their choice, because its products like CTC tea is covered by yellow
packet, black tea by black and green tea by green packet. (Maharjan, 2011)
Styling: Colourful packaging system and rounded corners product is Rakuras style. Even every
tea bag is made in compostable doubled chambered having large surface that produces great
infusion of both flavour and smell mixing with water properly. (Rakura, 2014)
Reliability: Rakura is manufactured by ecologically which can be used as a fertile to fertilize the
plant after utilization. As well as it is really remarkable product with easy disposal to keep
Size: Available 200 and 500 grams packet containing 10-50 tea bags of Rakura tea allows Danish
costumers to buy individual tea bags like quantity of one to five according to their needs. It would
Service: Rakura tea is presented and promoted on basis of its natural test refreshing and relaxing
effect and its imposed beneficial effect on health and bodily fitness. (Maharjan, 2011)
Price determination is one of the main factors of marketing analyses, which is important because it
is related with the product positioning. It can also affect with the quality of product, where it is to be
distributed and how it will be promoted. The pricing that is suitable to used with a similar the
product that is already exist in the market according to Hollensen, S. (2004) is the market pricing. It
is based on differentiating the price from the competitors. This allows the distributors to set the
Rakura tea is sold in the form of tea bags and in attractive packaging. This makes it suitable for
sale through several retailors. In the Danish market this would include Irma and other Coop
Denmark supermarket like superbrugsen and quickly, as well as Dansk supermarkets, Fotex, Netto
and Bilka. In this context Rakura tea will be competing direct with Lipton, Twinings and Pickwick,
7.4 Promotion
Rakura is promoted on the basis of natural taste and health benefits. The brand has already
established a user community on a facebook, where the company and costumers have their
experiences with the products. It can be promoted to a distributor-oriented manner as well, such as
trade magazines. In addition online advertising is helpful in promoting the product besides that it is
cheap, Denmark has 4, 989, 108 users of Internet almost 90% of the population according to ITU.
(Internetworldstats, 2013) The language use in the advertisement will be Danish and English. It is
8. ACTION PLAN:
Start Date Completion Date Action and Comments
(Chronological) (estimated)
Launching Rakura tea in 2-3 months Online Advertisement
Denmark (e-mail, social media)
Distributors Magazines
Resources Required: It is
to be specified in the
financial forecasts.
9. CONCLUSION:
The Marketing Strategy for Rakura tea in Denmark will take place in January 2016 through
In the result of the survey that is being conducted that customers behaviour are taken into
consideration the quality and ease of use of the product. Rakura tea combats health concerns.
It is focusing to market itself considering the five senses of buying behaviour that emphasis more
into a healthy lifestyle. Rakura tea suits best in Denmark now with the new trend of being health
conscious. In this report it is shown that Rakura tea is not just can be marketed in Denmark, it is
also globally competence. Is it not just concern about the health and wellness but also it takes
REFERENCES:
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[Accessed 08-40-2015].
http://www.euromonitor.com/tea-in-denmark/report[Accessed 07-40-2015].
worlds-biggest-tea-drinkers-are/[Accessed 01-04-2015].
Internetworldstats, 2013. Internet World Stats. European Union. Denmark. [Online] Available at:
story/himal-tea-launches-rakura-brand/364454.html[Accessed 07 04 2015].
Net MBA, 2010. Net MBA Business Knowledge Centre. [Online] Available at:
http://www.netmba.com/marketing/market/segmentation/[Accessed 04 04 2015]
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http://nepalnewsinfo.blogspot.in/: http://nepalnewsinfo.blogspot.in/2012/12/rakura-heavenly-
classics-launched.html
APPENDICE:
International Business Project about finding out if there is a niche in Marketing Nepali Tea (Rakura
Tea) in Denmark.
All responses and information from this survey will be treated confidential and will not be shared or
use by any third party.
1. Gender:
S Male
S Female
2. Age:
S Below 20
S 21-24 years old
S 25 - 30 years old
S 30 years old +
3. Occupation:
Business
Service
Teacher
Others
10. Would you like to try the fresh and fruity Rakura Tea from Nepal?
S Yes
: No
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RESULT:
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