Introduction
Fusion tea is a new entrant with a completely new concept and new business idea. Our model aims to target the Turkish economy as this model has been previously tested in the Pakistani market. However, due to a greater potential seen in a market abroad we (the board) decided to take a step forward towards growth. The product will be non-export as we have already tested it in the Pakistani market. The same product will be marketed in Turkey as we exercise standardization in the beginning. The great demand of tea in Turkey will support our business as Turkey has one of highest tea consumption all around the world. Turkey as a tourist destination can also be beneficial for our brand for global attractions.
Cities we would be targeting are one of the busiest and top attractions in Turkey which have more footfall than other cities such as Istanbul, Ankara, Izmir, and Kayseri. The concept of “easy to make” practice in such cities can be beneficial for our brand. Easy to export such products because the taste of tea is almost the same across the world so the cultural difference and climate will not be a factor which would be an obstacle to export the product. The good relationship between Turkey and Pakistan makes export to Turkey much easier. According to the FTA “free trade agreement” between Turkey and Pakistan, both countries agreed to eliminate 85% of tariff which resulted in huge increase in exports between both sides. Our team has bigger plans to take this brand on a global level for worldwide recognition of Pakistan.
Mission Statement
Our mission is to provide our customers with the all-natural ingredients in one packing to ease their everyday lives. At Fusion Tea, we stay true to our word by always providing the best quality experience, customer service, and tea.
Vision Statement
Our goal is to provide the easy to make experience for our customers. Fusion Tea wants to start the trend of providing healthy beverage options and by combining drinking excellent teas with their daily lifestyle. We want to change the way people see and think about tea.
Corporate Product background:
Fusion tea is a new entrant with a completely new concept and new business idea. Fusion tea offers a daily use product “tea” to satisfy the caffeine intake of the customers. The main adaptation of the fusion tea is from the Lipton tea bags and after spending ample time on research fusion tea came up with the 3 in one tea bag. This includes all the essentials to make tea in one single tea bag and which is way more convenient and easier to use. We are making our position different in matters of ease and time saving because the user of Fusion Tea does not have to wander in search of tea, milk, and sugar. Fusion Tea does this once and for all. But to compensate for this flaw (as users do not like the product costlier than its competitive product) we are giving great facility of all the three components of the tree in one Tea Pack. That is why we say, “When one will do, why use three”.
Our easy to make feature (The core concept of the product) is also our competitive edge that no other marketer is following currently. Fusion tea is adapting product development which means the market is the same, but the product is new and will be using market penetration to enter the market. This product is suitable for export because there is a huge market of tea drinkers and according to current market dynamics fusion tea fully fills all of the customers’ needs related to tea which is convenient and time saving. It would be easy to export such a product because the taste of tea is almost the same across the world so the cultural difference and climate will not be a factor which would be an obstacle to export the product. The product will be non-export as we have already tested it in the Pakistani market. The same product will be marketed in Turkey as we exercise standardization in the beginning.
Market Analysis Customer Based:
The Marketing Objectives of “Fusion Tea” are as follows:
· To get high return on products through customer satisfaction.
· To provide high quality products in order to earn customer loyalty.
· To encourage repeat sales
· To introduce the innovated form of tea that already contains milk and sugar to achieve high growth in tea industry.
Target Market of Fusion Tea:
· Turkey has a huge consumption capacity when it comes to Tea consumption, and with a huge consumption rate many huge retailers make up most of the market cap in order to fulfil the demand. An individual in turkey on average consumes tea 3 times a day and Turkeys total population of approximately 90 Million, this shows how huge our target market is. The major goal will be to penetrate in the market through various large-scale retail giants such as Carrefour and Migros, this would enable us to target a huge number of people that could directly purchase our product. Trade fairs would be a key aspect in terms of understanding turkeys’ market itself, this would enable fusion tea to get a firm standing in terms of launching its products in turkey.
· Last the Wholesalers and distributors would be fusion teas main source of bridging the gap between fusion tea and the consumers, Fusion Tea will be looking to lock high end retailers especially dealing with FMCG goods in order to make sure we have a chance of a firm standing within the market.
Segment Marketing of Fusion Tea:
It is to make some segments. Everyone needs tea as per their requirement. We are dividing our customers in two segments which are as follows:
Regular (Tea) Users.
Sugar Free Users.
Through segmented marketing there will be a chance to sell our tea at comparatively high prices with high profit margin. A good image will be created in the market. There is a large number of people in Turkey who are concerned about their health and use sugar free tea. We do not want to lose our share in them. That is why we are providing Sugar free version of Fusion Tea.This is the current market analysis of Fusion tea based on the local market.
Demographic Segmentation
Fusion tea will be targeting all types of consumers from the age of 18 and Above, Both Male and Female consumers will be our Key Target Audience. Consumers between the ages of 18-22 tend to develop life lasting habits, therefore it would be crucial for Fusion Tea to gain as many young consumers as they can and turn them into lifetime consumers of our product.
Major Target market would include Students as they are the key Individuals in terms of having to be our lifetime consumers, Housewives would also be our targeted consumer as housewives mostly have control over groceries and we would want to make sure that Fusion Tea is always a part of their grocery List, Lastly, we’ll be targeting Cooperate workers since our product is a Quick Fix for tea lovers and works best for corporate workers since they have a busy schedule.
Geographic and Psychographic segmentations
Fusion Tea will lay its foundation by entering major cities of Turkey and setting up its distribution channels in Izmir, Istanbul, and Ankara. Major target areas would include, Commercial Areas, Grocery stores located in different housing societies and stores near student hostels and student accommodations.
In terms of Psychographic segmentations fusion tea will be targeted towards people that have less time throughout the day and have a busy schedule. We will be targeting middle class consumers since they make up for most of our targeted audience bracket and consumers that consume even more than 3 Servings a day.
Competitors of Fusion Tea
Turkey has a mass market space for Tea therefore there are many Tea manufacturers and retailers across turkey.
- Hafiz Mustafa, Zencefilli, Caykur
- Imported Brands such as Lipton and Tapal.
- 207 Tea Companies across Turkey
- 45 Manufacturing Units Across Turkey
Market Targeting of Fusion Tea:
A set of buyers sharing common needs or characteristics that the company decides to serve. After evaluating different segments, the company must decide which and how many segments it will target. Market targeting can be carried out at different levels. Our target marketing market will be “concentrated marketing”.
Concentrated marketing targets a small share of a large market with limited company resources. One should have knowledge of the market in order to spread and distribute products more effectively and efficiently. We are targeting the markets of Istanbul, Ankara, and Kayseri to start with.
Export Marketing Plan for Fusion Tea:
The Export Marketing Plan for Fusion Tea is where the product, price, place, and promotion are explained.
When it comes to the Product phase, Fusion Tea is one-of-a-kind products with little or no competition. With unique flavors, unique packaging and ingredients, Fusion Teas all aspects will be unique in their own way. This is how the product will be distinguished among other products in a shelf. Another unique aspect about Fusion Tea is its convenience and time saving use process. Since one essentially needs hot water and a Fusion Tea sachet to enjoy a refreshing tea, it is arguably the most convenient and time efficient product in the whole wide array of other products that fall in the tea and hot beverage industry.
This ease of use and efficiency in the usage can very well be used as a competitive edge over the other products in the promotion of the products too. These attributes of the product can also provide a boost to young workers’ daily routines and hustles. Apart from these utility attributes, Fusion Tea also offers a very unique and delicious variety of flavors that are unmatched by the rest of the competing products available in the market. Also, a special focus is put to maintain the aroma of the product to make sure that it is pleasing not only for the consumers but for the nearby people too.
When it comes to the Price section of the Marketing plan, Fusion tea will initially use a price penetration strategy to make sure that it grabs as more market share as possible and to make a stable place in the daily disposable incomes of consumers. As Fusion Tea holds a handsome market share with steady growth, gradually the prices will be increased in order to start reaping profits off the regular consumer and to sustain the company well. However, the price will still be kept in the ‘affordable’ range so that it can still continue to be a part of the daily consumables. Once the affordable range captures the market stably, a premium range of teas will also be launched that will offer exclusive variants offering special ingredients and features.
Moving on to the Place attribute, entire production from processing tea leaves to final packaging, the operations will take place in the home country. The product will be distributed through wholesalers to retail outlets or to volume commercial users. The company will also set up a direct selling outlet or warehouse to sell the product directly to wholesalers and retailers in the high consumption districts.
In the Promotion part, among many benefits that can be propagated through marketing, on is that exporting consumer goods like Tea into the Turkish market will promote the cultural harmony and both the countries’ people will better relate to each other which will in turn promote further business activity as well as peace and progressiveness among nations. The main marketing medium used for advertisements will be Social Media where popular social networking apps like Facebook and Instagram will be used to run ads and marketing campaigns extensively.
Mass Media in Turkey will also be used in which there will be a bunch of TVCs as well as billboard ads to increase awareness of the product among the customer base. Marketing Agencies from Turkey will be hired to execute the mass media advertising strategy and execution in order to make sure that Fusion Tea is advertised as a culturally fit product. Apart from these, in supermarkets, there will be digital kiosks that will be placed near checkout counters to ensure maximum exposure and increase first-time purchases.