Module Code & Module Title Brand Management Assessment Weightage & Type 60% Individual Report Year and Semester 2020-2021 Autumn
Module Code & Module Title Brand Management Assessment Weightage & Type 60% Individual Report Year and Semester 2020-2021 Autumn
Module Code & Module Title Brand Management Assessment Weightage & Type 60% Individual Report Year and Semester 2020-2021 Autumn
Brand Management
Executive Summary.........................................................................................................................3
1. Introduction..............................................................................................................................4
2. Company Profile......................................................................................................................4
2.1 Brand Profile.....................................................................................................................5
2.2 STP Analysis.....................................................................................................................5
2.3 Competitor Analysis.........................................................................................................6
2.4 Recent Trends...................................................................................................................7
3. Discussion on academic theory...............................................................................................8
3.1 Secondary Brand Association................................................................................................8
3.2 Relevant Theory (CBBE Theory)..........................................................................................9
4. Secondary Research Findings................................................................................................12
4.1 Rakura and People..........................................................................................................12
4.2 Rakura and Health...........................................................................................................12
4.3 Rakura and Environment................................................................................................13
4.4 Visibility in the market...................................................................................................13
4.5 Rakura in Foreign Market....................................................................................................13
5. Discussion..............................................................................................................................14
6. Conclusion.............................................................................................................................14
7. Recommendations..................................................................................................................15
References......................................................................................................................................16
Executive Summary
Rakura was the first tea company in the country to export its products. The company delivers the best tea
and has a strong relationship with the locals, as it employs over 1400 small farmers. Rakura teas were
introduced with design standards, raw materials, and teas that had never been seen in Nepal before, really
altering and reshaping the tea industry. Rakura offers a wide range of teas in a variety of flavors, from
traditional green tea to Himalayan tea. Rakura was founded in late December 2012 with the purpose of
raising global awareness of Nepalese tea via effective branding and marketing. People are getting
increasingly worried about their health and the environment all around the world. As a consequence,
because all of Rakura's products are healthy, they are best suited for the growing market. Thanks to client
feedback, Rakura has become synonymous with quality tea in Nepal, once again forging new ground in
the perception of our country's teas. It fosters communal development while simultaneously having a
positive impact on the environment. Rakura is dedicated to reaching the Nepalese tea aim. They research,
develop, and alter people's minds about Nepalese tea, as well as any other industry they work in.
1. Introduction
The purpose of this research is to evaluate how the brand has gained popularity among consumers and
what the brand can do to improve its brand recognition. Rakura teas were debuted with embracing
design standards, raw materials, and teas never seen before in Nepal, really transforming and
redefining tea business. (kathmandupost, 2021)
2. Company Profile
Rakura is the result of a lifetime of discussions, ideals, and skills committed to Himalayan tea's
purpose and longevity. Mr. Ram Kumar Rathi, the firm's founder discovered the world of tea in China
in 1996 A.D. and was astounded by the richness of the tea, prompting him to study more about it.
Rakura envisioned as a brand that would encompass the finest tea brands in the country and promote
them around the globe. It is the first ever tea company in the country to be exported. With more than
1400 small farmers, the company provides the finest tea and has a great relationship with the people.
The company has been working on zero waste packaging since it started. It has exported its products
to various countries across Europe and Asia. It is yet to export to other countries. Rakura was
formally established in late December 2012 with the goal of increasing worldwide awareness of
Nepalese tea via proper branding and marketing. (himalayantea, 2021)
2.1Brand Profile
Rakura provides a variety of teas in a variety of tastes, ranging from conventional green tea
to Himalayan tea. The packaging was also stated to be environmentally friendly and match
international food quality standards, according to the brand. As the company's motto "Drink
Health" clearly states, the brand offers healthy tea in a variety of flavors and alternatives,
and it is aimed at people who enjoy tea in general.
Nepal's first double chambered biodegradable tea bags, The Finest teas, World's Best Filter
paper and aluminum-wire, non-bleached thread, and food-grade tags, and Eco-friendly and
Freshness guaranteeing Packaging are all available from the brand. (tnm, 2021)
Consumers think about Rakura's market. They target their buyers' needs and wants
through using merchandise segmentation. They primarily categories behavior based on
geography and demographics. Before promoting their products, they cover urban areas
and focus on income, age, and profession.
b. Targeting
Rakura's company is entirely geared toward families and professionals. Rakura focuses
on health-conscious people, students, and individuals who can make a decent living.
They also target price-conscious customers seeking healthy, low-cost alternatives.
c. Positioning
Rakura has already been providing low-cost, healthful products while still exceeding
consumer desires. Their quality of the product has facilitated the development of their
brand image in the marketplace.
2.3 Competitor Analysis
(mailchimp, 2021)
Brand Logo
Points of Tea leaves, packing, tea factory, Tea leaves, packing, tea Tea leaves, packing, tea factory,
Parity distributors factory, distributors distributors
Posi
tive review of Rakura Negative review of Rakura
3. Discussion on academic theory
One such way is to use secondary brand associations, which involves attaching your brand's
reputation to another entity's image to a certain level. By establishing a link between the two, the
brand effectively adopts features of the other's identity in the minds of its target audience.
(alexonmarketing, 2021)
a. Companies
A corporation is a separate legal entity founded by a group of people to engage in and operate a
commercial or industrial business. Depending on the corporate law of the jurisdiction, a firm can
be constituted in a variety of ways for tax and financial liability considerations. (investopedia,
2021)
Rakura's facility is in Haldibari, Kathmandu, and the company markets its products through
numerous middlemen, offering a wide range of tea items to its customers.
Rakura has grown their brand value by advertising their items under their corporate name.
b. Channel of distribution
International market
Already available on Amazon, the company is eyeing the large supermarket chain stores like
Sainsbury’s and Wipro. Rakura tea is available in the Philippines, UK, China, Hong Kong, and
the US. “We are in talks with Australia and planning to enter India this year.
National market
In terms of sales, brand recognition, and specialty tea. Rakura tea is used in all of Kathmandu's
major hotels, including the Hyatt, Annapurna, Yak and Yeti, Radisson, and Marriott. Rakura is
distributed to local vendors as well as supermarkets.
Licensing: When conducting secondary research, Rakura has not adopted licensing
strategy with others to date.
- Brand Imagery
This demonstrates if the brand is addressing the customer's social and psychological
demands. How a brand is portrayed in the marketplace is determined by its brand image. In
the perspective of the client, what does the brand represent? If the brand were a human, how
would the client perceive it? Is he of the opinion that the Brand is tough or soft? The brand
may develop a strong brand image through targeted marketing and term.
The brand has been developing positive relationships with its customers. It emphasizes that
not only attracting people is crucial, but also appreciating and developing them so that they
may attain their maximum potential through improving their and their family' lives. They've
got to do a lot of studying. Customers' feedback has aided them in experimenting, learning,
and so well their products to meet their needs. Rakura has become synonymous with
premium tea in Nepal, breaking new ground in the view of our country's teas once again,
thanks to feedback from customers. They have been working on to ensure the wellbeing of
their people as well. That includes the topics like Encourage fair recruitment and
employment practices. Increasing diversity awareness and appreciating differences. Women's
empowerment should be promoted. Support the freedom to free association and collective
bargaining. Encourage good health and safety. Anti-discrimination and anti-child labor
campaign. Take full advantage of industry-leading pay and benefits. (rakura, 2021)
Rakura has promoted the health benefits of tea under the slogan "Drink Health." Because tea
was previously regarded as harmful, it has produced a big shift in how people approach their
tea now. Many individuals in Nepal and throughout the world have already made tea a
regular part of their lives, and this trend will only continue as more study is conducted. Tea
consumption has been linked to a lower risk of cancer, heart disease, and diabetes, according
to research. Additionally, it promotes weight reduction, lowers cholesterol, and improves
mental alertness. Rakura appears to offer antibacterial and immune system-boosting
properties, ensuring overall health. (rakura, 2021)
Nepal produces some of the world's finest teas, which have traditionally been mixed with
other better teas or marketed alone as a high-end product. This strategy has deprived
Nepalese tea producers of a fair price and, more crucially, their rightful brand value.
Nepalese teas lack the global brand recognition that other tea-producing countries have,
owing to a lack of support and resources. This is when, Rakura enters the picture. A concept
and a brand that incorporates Nepal's best teas while also working to promote and increase
global respect for Nepalese tea. It promotes community development while also creating
constructive environmental influences. They embrace the social acceptance and support
human service as well. (rakura, 2021)
The first thing they do is radically affect the Nepalese tea experience. Rakura saw that teas in
Nepal were either marketed as unbranded loose novelty gift items or as a branded product
made with inferior raw ingredients. As a result, in order to keep up with some huge
worldwide companies, they create plenty of fascinating items that consumers all over the
world would want to take home on a regular basis. They seek to establish a brand that
typifies Nepalese tea and competes with the greatest teas in the world, from the sense of
value to hand-selected teas within each Rakura product, to the standard and function of
packaging, as well as the use of cutting-edge technology. Every time they come out with a
new product; they raise the bar. (rakura, 2021)
4.5 Rakura in Foreign Market
Rakura are rather tall. They have formed strategic agreements with other superior tea-
producing facilities in addition to handpicking just the finest teas. This aids in the selection of
the best teas for a well-balanced Nepalese tea blend. They have climate-controlled packing
units, cutting-edge packaging technology, and the most up-to-date hygiene and food safety
requirements, all of which contribute to serving the freshest teas available. They have made it
a point to employ the world's best and most environmentally friendly packaging materials to
create not just a pretty but also an useful box. Overall, every part of the Nepalese tea
experience, from unwrapping the box to the flavor striking the tongue and then sipping the
flavorful brew, has been carefully examined to provide Nepal's greatest tea product ever.
According to the Managing Director, “Today’s competition isn't only with local businesses;
we're up against the best teas from across the world.” (rakura, 2021)
5. Discussion
Rakura's official website is still not updated since 2016, therefore hasn't been very
comprehensive. Rakura is unconcerned with social brand linkage. Rakura is denying the fact
that they too require digital marketing to increase their business. They are still unable to
organize consumer interactions. Rakura's brand image will suffer as a result. They seem to be
unable to perform co-branding, which ensures better product sales. Rakura is struggling to
secure celebrity endorsements, resulting in a lack of advertising that will assist in reducing
Rakura sales. According to the research, Rakura is still a long way from receiving honors.
6. Conclusion
Rakura is the first Nepalese tea brand to export tea to other nations. The brand had
effectively built a brand and gained consumer support throughout the years. Rakura is on its
way to becoming the top tea brand not just nationally, but also worldwide, by offering
healthy, high-quality tea to its clients. The firm has a bright future in the tea industry since it
has been supplying high-quality teas in a variety of flavors and employing cutting-edge
technology. Rakura is committed to achieving the goal for Nepalese tea. They study,
innovate, and change people's perceptions about Nepalese tea, as well as every other area
they enter. Rakura has raised the profile of Nepali industry, the country as a whole, and, most
importantly, has developed a tea that has impressed people all over the world.
7. Recommendations
Sponsorship: Rakura has never taken part in a sponsorship program. They are trailing
behind, which will aid in the growth of the Rakura share market and product visibility.
Rakura's relationship with non-competing businesses might be strengthened through
sponsoring an event or trade exhibition. Rakura can sponsor an event to improve its business
image while also gaining a competitive edge.
Celebrity endorsement: A marketing tactic in which one or more celebrities are used to
promote a certain product or service is known as celebrity endorsement. Rakura has not had
a celebrity endorsement since its inception, hence they are unable to benefit from it. Direct
sales are aided by celebrity promotion. It will also contribute to a greater understanding of
the brand and its qualities. When people see advertising in which a well-known celebrity
recommends a Rakura product, for example, it helps to boost people's confidence and acquire
their devotion. (wiki.optimy, 2021)
Licensing: Licensing is a commercial agreement in which a firm grants another company
temporary access to its intellectual property, such as its manufacturing method, brand name,
copyright, trademark, patent, technology, trade secret, and so on, in exchange for a fee and
under certain restrictions. (businessjargons, 2021)
It will be required for the commercialization of innovative technologies as well as the
extension of a brand franchise internationally. Licensing can also help you make more
money.
Rakura's official website hasn't been updated since 2016. On the official website, there really
is no information. They should make information available on their website so that
consumers are aware of Rakura's products. Rakura should concentrate on digital marketing
since that everyone has access to the internet.
References