Master of Business Management in Marketing Program

For Group and Individual Assignements

Subject Details
Subject MBMM 52092 – Global Marketing
Subject Code MBMM 52092
Students Details
Group Name Group 01
Student Name Student Number Signature

1 C D Muthuhetti FGS/MBM/E/2019/012

Nature of the Assessment Report

Assignment topic complete strategic marketing plan
Learning Outcomes
Word count Min 2000
Time for the presentation (Eg: 10 Min & 5 min Q &A)
Due date / Time 31/12/2020
Individual / Group Declaration
I certify that the content of the above assignment is one of our original work and not copied from any of
the published or internet based documents. Without references we have not used any of the other person’s
original work or ideas. So the report or the work we have done is free of plagiarism.
Group leader’s
Chaminda Devan Muthuetti Date 30.12.2020
Signature

i|Page
 Strategic Marketing Plan
Launch of MacVally Organic Moringa Tea to
Australia

ii | P a g e
Table of Content Page no
1. Executive Summery 1
2. Hypothetical Story about MacValley Tea PLC 2
3. MacValley Organic Moringa Tea 3
4. Tea Product Description 4
4.1. Suggested use and preparation 4
4.2. Over view of the product 4
5. Global moringa tea Market 5
6. Understanding the product 6
6.1. Who drinks Moringa tea 6
7. Moringa ingredients 7
8. MacValley Tea Brand 8
8.1. MacValley’s Values 8
8.2. Mission and Vision 8
9. Brand Value 9
9.1. Guiding Principles 9
9.2. Global Marketing opportunity 9
10. Why Australia 10
10.1. MacValley’s Export Model 10
10.2. Understanding the Market 11
10.2.1. Understand the culture 11
10.3. Australian Tea Market Characteristics 13
10.4. Decision about the Market 14
11. Objectives 15
11.1. Australian Market objectives 15
12. Positioning map and gap identification 16
12.1. Consumer behavior 16
13. Competitors Market share 17
14. Value proposition 18
15. PESTEL analysis 19
16. Porter’s five forces analysis 20
17. SWOT analysis 22
17.1. Quantifying opportunities 23
18. Targeting and segmentation 24
18.1. Segmentation 24
18.2. Targeting 25
19. Positioning Statement 25
19.1. Significance of MacValley 26
20. Marketing objectives 26
20.1. Advertising Objectives 27
20.2. An effective promotion hierarchy 27
20.3. Selection of Promotion channels 28
20.4. Allocation of promotion budgets 28
21. Time line of activities 29
22. Plan for performance management and KPIs 30
23. Conclusion 31
24. Bibliography 32

iii | P a g e
 1.Executive Summary
Today the globalization has led the businesses to go beyond the origin country and the open
economy opened up the domestic businesses to international arena. It benefits the businesses as
well as customers by giving opportunity to experience the wide variety of products and services.
Because of the new Sri Lankan government policy directions the Export Development Board of
Sri Lanka is also playing a vital and proactive role towards assisting local manufactures to reach
new international markets for their products/ brands. And also, in line with government’s policy
direction Local banks are providing financial support for the exporters to take their brands in to
the global market.
When considering the Sri Lankan context there are several giants in the business world which
already have stepped into international markets, namely CBL, Brandix, Siddhalepa, Dilmah tea,
and Dankotuwa Porcelain etc.
The assignment based on a hypothetical " MacValley Tea PLC" company which is aiming to
approach the international market. A company is selected within Sri Lankan context and
analyzes its internal capabilities for going international, the environment of the targeted country
and Strategic Marketing plan for win the destination market.
Product is MacValley Organic Moringa Tea .Single product to capture growing herbal tea
market. Identified 12% of hot beverage drinking people in Australia are herbal tea drinkers.
Moringa tea is one of fastest growing market with Compound annual growth rate (CAGR) 7.5%
to 8%. Industry competition, PESTEL analysis and situation analysis is favorable to company
and product.
Moringa Tea packet weight is 65 grams where 40 gram are Moringa tea from20 sachets each
weight 2grams. Retail price will be AUD $ 3.49 for one packet.
Clearly targeted 12 years and above people who concern about wellness and wellbeing.
To achieve the target in first year MacVally Australia need to sell 3,133,000 packets in the first
year then need to enhance it by 50% for the coming year.
First year to capture 5% from herbal tea market they going to spend 30million LKR to first year
promotion campaign.
MacValley Tea PLC will be top foreign exchange earner to Sri Lanka if they clearly practice in
the Australian market.

1|Page
2.Hypothetical Story about MacValley Tea PLC
Macvalley Tea PLC started his operations in 1990. Company situated in Sri Lanka
western province. The company making herbal tea products for Sri Lankan people. All products
that company produce is combine of herbals with Ceylon Tea. That products make customers
make happy helping them to rejuvenate, boost and detoxing the body.
Macvalley Tea Company establish good relationship with suppliers. They reduce cost of
products by good practice of supply chain. Helping small herbal producers to giving good price
for their products.
Distributing their products throughout the island using their distributing channels and
modern trade chains.
In 2020 Company planning to go international market. Because recent health problems
arisen in the world they get opportunity to introduce immunity boosting herbal drinks to the
international market. Also present Sri Lankan government policy to develop small and medium
enterprises to approach international markets to expected economic and social benefits to the
country.
Company has chosen “Organic Ceylon Moringa Tea” product under MacValley brand to
introduce for international market.

2|Page
3. MacValley Organic Moringa Tea
"Macvalley Organic Moringa Tea" is formulated to create optimum nourishment while gently
supporting the body’s natural immunity enhancing process. Moringa leaf is celebrated as a
nourishing super food, combined with mineral rich nettle, fruity hibiscus and spices that support
healthy body condition. Replace sugar rich beverages with this caffeine free, uplifting tea.
The highest grade of Moringa leaf tea, made with handpicked fresh leaves grown without
chemicals or additives in the paradise island Sri Lanka."Macvalley Organic Moringa Tea" -
100% pure Moringa Oleifera infusion. Caffeine free. No added sugar.
Moringa Oleifera, also known as the "miracle tree" because of its high nutritional content . Its
leaves are rich in vitamins, proteins and minerals with antioxidant, anti-inflammatory,
detoxifying, purifying and balancing the metabolism properties, promoting a faster elimination
of toxins from the body.

Picture1.

3|Page
4. MacValley Organic Moringa Tea product
description

Picture 2.

4.1. Suggested use and preparation

 Heat up water
 Place tea bag in cup
 Carefully add freshly boiled water to your tea bag
 Wait for 5 minutes, remove the bag
 Ready to drink
Store at room temperature, in a dry location.

4.2. Overview of the Product

Brand Product Size Weight Servings
MacValley Organic Moringa Tea 20 tea bags 40 grams 20
Chart 1.

4|Page
5. Global Moringa Market 2018-2022

Figure 1

Figure 2

5|Page
6. Understanding the product
What is Moringa?
Moringa is widely regarded as one of the most nutrient-dense plants on the planet and is known
world-wide as the miracle tree. Studies show that Moringa leaves contain more than 90 different
nutrients, including 47 antioxidants and all 9 essential amino acids. Moringa leaves have been
used in traditional medicine passed down for centuries in many cultures including the Egyptians,
Indians, Sri Lankans and Romans. Studies like moringa's nutritional properties to various
benefits, including reduction of fatigue, promoting more radiant skin, boosting the body’s natural
immune system, and promoting muscle growth.

6.1. Who Drinks Moringa?

Women
Studies show that Moringa may have benefits for Females, including healthier looking skin,
improved mood, and defense against Menopause. Moringa also has shown benefits linked to
enhanced breast milk for babies.
Elderly
Studies show that Moringa may have benefits for the Elderly. In these studies, Moringa was
shown to strengthen the immune system and lower blood sugar levels versus control groups who
had not taken Moringa.
Athletes
Moringa may be a valuable addition to an athlete's nutritional regimen. With all the natural
nutrients and vitamins found in Moringa, athletes may benefit from the natural boosts in energy,
endurance, and strength.
Students
Students may benefit through Moringa's natural source of Vitamins and minerals. Studies show
that vitamins and minerals may lead to improved vision, improved focus, and are linked to
healthier brain function.
Professionals
Working professionals have stressful lives as today's businesses continuously demands continued
focus and attentiveness. Studies show that Moringa's natural source of vitamins, nutrients, and
antioxidants help reduce stress, provide natural energy.

6|Page
7. Moringa Ingredients
Vitamins
Studies show that Moringa contains
Vitamin A, B1, B2, B3, B6, B7, C, D,
F, & K.
Antioxidants
Studies highlight how Moringa
contains many antioxidants, all of
which may neutralize free radicals in
the body!
Minerals
Studies show Moringa is rich in
Calcium, Iron, Potassium, &
Magnesium - key building blocks for a
functioning body.
Figure 3
Phytonutrients
Studies show Moringa is full of phytonutrients such as alpha carotene, beta carotene, lutein,
zeaxanthin, & chlorophyll - compounds which may enhance the body's defense!
Amino Acids
Moringa is one of the only leafy green plants which contains all 9 essential acids, the building
blocks for the proteins found in their bodies, making it an ideal addition for vegetarians/vegans!
Fiber
Studies show that Moringa leaves are naturally high in fiber. Fiber can help support a healthy
digestive system, and can also be helpful for weight management.

7|Page
8. MacValley Tea Brand
8.1. MacValley's Values
MacValley's Valuesis a privately-owned
nutritionally-focused brand launched in Sri Lanka,
and marketed globally. Picture 3
Founded in 1990, MacValley focused on sourcing the highest
quality herbal teas with a special focus on nutritional ingredients. The brand is the largest
specialty tea brand focused on distributing herbal teas and products throughout food-service,
grocery stores, tea and coffee shops, mass merchandisers, club stores, natural foods stores, mail
order and the Internet. MacVally're the largest company exclusively dedicated to producing
organic certified Sri Lanka Moringa products. MacValley offer a comprehensive line of
nutritional teas designed to balance and improve the body's cognitive, neurological and physical
well-being.
MacValley's main strength is their people, a blend of experience and youth, with one trait in
common – a passion for tea. MacValley believe that their experience and expertise in tea is
bettered by none. Today, they are recognized as one of the only teams with both local and
international experience. All their employees, starting with the tea boys and factory laborers, all
the way up to their senior most executive, are stakeholders in their company, thereby enabling
accountability, passion and creativeness.

8.2. Mission & Vision

MacValley's vision is to redefine the healthy beverages - improving the lives and well-being of
their consumers, their employees, their communities, and their environment
The mission of MacValley is to create a delicious, healthy, nutritious, sustainable tea product
that has the highest quality standards in the market. MacValley's direct relationships allow them
to produce the highest quality herbal infusions that offer an unmatched level of freshness and
taste. Being at origin to maintain these relationships is their way of ensuring the quality and
authenticity of their teas and herbs from the heart of the rainforests in Sri Lanka.

8|Page
9. Brand Value
9.1. MacValley's guiding principles are defined by three
underlying beliefs:
MacValley believe in Living Well: Every decision made in their company begins with a
simple question – is this in the best interests of their consumer? MacValley's number one priority
is to inspire their consumers to discover the wonders of the MacValley – and enjoy the nutritious
benefits of herbal Tea!

MacValley believe in Treating People Fairly: MacValley work with ethical

manufacturers and independent farmers from Sri Lanka and ensure a positive impact on their
social well-being and communities. Trust and Respect is a crucial ingredient to their success!

MacValley believe in Treading Lightly: MacValley make the right choices for the
environment! MacValley work and champion organic and sustainable tea processing and cut
energy/shrink waste. Furthermore, their Moringa plantations grow organic Moringa trees helping
absorb Carbon Dioxide from their atmosphere!

9.2. Global Market opportunities for Organic MacValley

Moringa tea Brand
 People are consuming natural healthy beverages to keep them healthy and young.
 People need protection from ongoing epidemic situations like covid -19 .studies suggest
moringa tea can enhance the immunity level.
 Moringa tea is all natural MacVally tea is USDA organic certified product
 Fast growing consumer market for herbal products
 Consumers are educated about potential risk of caffeine / soy /palm oil /pasteurized /
GMO and growth hormones products.
 There are rising awareness among young and working people about natural health drinks
will keep them health in busy life style.

9|Page
10. Why Australia
 Because Australia satisfying global opportunities for herbal beverages products.
 Strategic market size
 Australia is the world's 12th largest economy. Nominal GDP was estimated to be US$1.3
trillion in 2016, accounting for 2.2% of the global economy. With a population of 24
million, Australia has one of the highest levels of per capita GDP in the world. Australia
is the only country to wholly occupy a whole continent, with the mainland covering 7.7
million square kilometers. Notably, the Australian economy is entering its 26th year of
consecutive economic growth and is forecast to have an annual real GDP growth of 2.5%
in the medium term. Australia has low inflation and is ranked 15th internationally in the
World Bank’s 2017 ‘Doing Business 2017’ index.
 Company is strengthen to cater to all Australia. Because population in Sri Lanka is
similar to Australian population.
 One country single rules for market entry.
 People with high education level make opportunity to herbal products because their
modern lifestyle
 Wagers weekly paying country, average weekly income is $650 to $750 therefore high
disposable income.
 Positive growth in herbal tea products in the market.
 Weekly purchasing behavior.
 Ease of doing business
 Urbanization
 Over 150 thousand Sri Lankans in Australia.
 On-line Purchases are popular option in this country.
 Powerful modern trade practice in Australia that will help to grow us rapidly.
 If we establish in Australian market that will helpful for us to enter other markets.

10.1. MacValley Organic Moringa Tea Export Model

Distribu
ting
Sole channel
MacValley Tea s End User
Distributor

Sri Lanka Australia Figure 4

10 | P a g e
10.2. Understanding the Australian Market
10.2.1. Understanding the Culture

Figure 5

Dimension Sri Lanka Australia

1. Power Tall organizational structure Flat organizational structure
Distance
There is a big difference Marginal salary difference between
between the salaries of unskilled unskilled employee and managerial
employees and managerial level Friendly culture
employees.
No autonomy as the responsibility is
High respect for superiors shared.
Less autonomy
2. Individualism Collectivism can end up in labor Individualism and only work towards
unions therefore organization personal objectives.
should be careful.
The meeting are precise to the point
Start meetings with general Relationships are not given priority
conversation than business Trust
worthy relationships should be
formed

11 | P a g e
3. Masculinity considered a Feminine society Better balance between competition
and surviving them Conflicts are
Quality of life is an important
avoided
factor Avoiding of conflicts is
ignored.
4. Uncertainty Employees are strongly Monitoring on the employees are less
avoidance monitored The employee severe
socialization is at a particular
The socialization of the employees is
time
not restricted
The employee related law should
It is not necessary to communicate to
be effectively communicated.
employee pertaining labor laws.
5. Long-term Accepts changes easily Vales traditional methods along with
orientation the modern technology.
A focus on achieving quick results.

6. Indulgence Restraint to release their Relatively weak control their desires

impulses and desires with regard and impulses
to enjoying life and having fun.

Chart 2

12 | P a g e
10.3. Australian Tea Market characteristics
Australian Tea Market According to Stastisa per person
. Revenue is US $ 40.84

Chart 3

Black Tea Latte Style Herbal Tea Green Tea

Half of the population in Australia 9.8 million tea drinkers among 24.6 million they drink at
least one cup of Tea weekly .2014- 2018 Australian added 300 thousand new Tea drinkers.
Australian tea market is $1.2billion and growing.
Australia’s tea market is expected to grow at an annual rate of 3.5%. Over the last eight
years, Australian tea revenues have grown by more than 56%. Australia’s tea volume was 16.5
million kilograms in 2018. Through 2023, Australia’s tea volume is expected to grow to 18.1
million kilograms. Over the last eight years, Australia’s tea volumes have grown by nearly 27%.
Below table shows hot drinks consumed by Australian in an average week by Generations

Chart 4

13 | P a g e
 Chart 5

This table shows 50% of Australian drinks 9.5 cups of tea.

Below chart Australian all tea consumption segmented to three categories
1. Black and latte as regular tea 2. Green Tea 3. Herbal tea

Figure 5

14 | P a g e
10.4. We can come some conclusions with above information.
1. Total tea market size is 44% from all Australians who take hot beverages ( because 40%
taking tea and added new segment Herbal and fruit infusion tea help to attack another
4%),but herbal tea percentage is 12% new add consumers and converted consumers.
2. Moringa tea products is growing at 7.5% to 8% CAGR.
3. Herbal tea revenue will be US $ 144 Million in 2018 and US $ 166.5 Million in 2020
will be raised above US $ 200 million in 2025

11. Objectives
11.1. Objectives of the Oraganic MacValley Moringa Tea
for the Australian market.

1. Our category is Herbal Tea.

2. Our brand product will be price at low and average price with good quality.

3. Within first year try to achieve 5% of Herbal tea market. That is US $ 8.3 million sales.

4. Retail price of a one packet of our Herbal tea brand will be US $ 2.65 and AUD 3.49.

5. To achieve that target we need to sell 3133000 packets per year 262000 per month.

6. We are planning to 10% margin form FOB price for MacVally Sri Lanka Company to
earn and Australia sole distributor to 10% from whole sale price. Retail price will be 10%
adding to the whole sale price.

15 | P a g e
12. Positioning Map and Gap Identification
MacValley Organic Moringa Tea position in the identified market gap as best value average
price innovative herbal tea.

Figure 6

12.1 Customer behaviors

Australian Herbal tea Drinkers Identified behavior and new Trends
1. Australia has a history of being a
black tea drinking country due to its
strong British heritage.
2. Australia have changed dramatically
with the addition of flavors,
botanicals, herbs and spices.
3. Coffee consumption is very strong in
Australia, and this has affected the tea
consumption levels, but the
introduction of new and interesting
flavored and blended teas has helped
overcome this by enticing the
younger consumers to try new
varieties of teas.
Picture 4

16 | P a g e
 4. Some stats from the ABS’s Australian Health Survey, showing what proportion of
Australians enjoy a cup of tea on an average day; that figure being 37.6%.
5. Premium quality is another positive development on the Australian market, as customers
are showing strong preferences for functional botanical blends and single estate artisanal
teas.

13. Competitor Analysis

Competitor’s Market Share illustration on available information (whole Tea Market)

17 | P a g e
14. Value Proposition

MacValley Organic Moringa Tea Value Proposition

MacValley Moringa tea will be the good quality not
blended single tea solution for taste, significant aroma,
immunity boosting, detoxifying and relaxing also average
price with high availability tea brand in the Australia.

Figure 5

18 | P a g e
15. PESTEL Analysis of MacValley Organic
Moringa Tea
Variable Factor Impact
Political No political pressure or intervention on firms +2
Stable government Condition in Australia +2
Australia will be safe business market
Legal Cost association with new environmental , employment and -2
taxation laws and regulations
Royalty laws and distributorship laws protect both patties 1
Regular updates of consumer protection laws -2
Legal frame is fair and trustful for Business
Economical Stable GDP growth +2
High per capita income +3
Less volatile Australian dollar in respect to LKR +2
High tax rate -2
Weekly salary payments +2
Low inflation rate +2
High wages and high corporate tax pressure on net profit -2
Economic situation good for business
Social High obesity level ,Growth of non-communicable diseases +3
High consumption of coffee and nonalcoholic beverages -3
Increased price sensitivity make less brand loyal -3
Developing trend of People seeking for health foods +3
Women are more interested in fat reduction and slimming +3
Busy life style need of instant foods +2
Increasing elderly people and they are more health consciousness +3
Social impact make suitable situation for Moringa tea
Technological New technology improvements ( Internet, AI , on-line orders) +2
Cost savings because technology improvements ( digital media ads +3
)
High cost for initialization of technology platforms -3
Easy access of information available +2
Technology improvements make things easy ( Ai powered ERP +2
systems)
High establishment cost but technology is more improved in
Australia
Environmental Many environment protection business activities are concerned by -1
customers e.g. : total water usage ,renewable energy usage ,
recyclable materials in packaging
Production of Organic Moringa Tea is environmental Friendly +2
Packaging done at Sri Lanka +2
Because of that we are environment friendly

19 | P a g e
+3= High positive effect +2= Medium positive effect +1= Low positive effect 0= Neutral
effect
-3= High negative effect -2= Medium negative effect -1= Low negative effect

16. Porter’s five forces analysis

Industry competition (Very High)
- Approximately 800 tea companies
- Unorganized players high market growth in the herbal tea industry
- Because of many players low margin for similar products and they differentiated
products to different from the competition.
- But people are very price sensitive and they knew the benefits of recognized raw-
material
Bargaining Power of Buyers (Very High)
- Less brand loyalty because of products at introductory level in product life cycle.
- less switching cost
- Many tea products in departments stores and modern trade stores

Bargaining power of suppliers (Moderate)

- High availability of raw materials in the mother country
- Own MacValley Moringa estate
- Unorganized printing and packaging suppliers have strong alliance with packaging
partners
Threat of new entry (Moderate)
- Low margin because of high competition
- Because of quality standards and consumer protection laws make entry barriers
- Need mass production to sustain in the market
Threat of substitutes (Moderate)
- Coffee is the main substitute
- Pepsi, coke , energy drinks are indirect substitutes
- Purpose of having Moringa tea and purpose of having coffee, Pepsi coke energy drinks
are different.
- Growth rate of herbal tea industry is high than other substitutes
- But herbal tea add value to the health because of that there is moderate switching cost.

20 | P a g e
17. SWOT Analysis for MacValley Organic
Moringa Tea
Strength
- Financial stability of MacValley Company
- High brand awareness in Sri Lanka
- Experience management in the company
- 20 years of experience doing business
- Online store for modern consumers in Australia
- Moringa tea can be store d for long time contributing to decreased operational cost
- Sri Lankan Moringa tea has strong identical aroma and color when comparing to other
country Moringa tea.
- Integrated supply chain activity in MacValley
- Their own Moringa Estate
- Not blended or flavored to give original Moringa taste and to give the every goodness of
moringa to the user while ensuring safety on long term day to day use.
- Innovative product that can give all the health benefits (cleansing, replenishing,
strengthening, balancing) without charging high price.
Weakness
- Going to Australia through sole distributor without establishing own production factory
there.
- Chosen Relatively low price but consumers think price reflect the quality.
- MacValley is not a giant player in the Sri Lankan market.
- Single product not having Product range.
Opportunities
- Hot chocolate and coffee drinkers switching to herbal tea brands
- Changing consumer behavior to tea as sensual and wellness drink
- Australian tea drinkers are known to prefer brand with heritage.
- Tea drinkers shows high interest in low or zero caffeine products
- Low rate financial support from Sri Lankan government.
- Export development board of Sri Lanka support under government new policy to improve
small and medium enterprises to go International.
- Sri Lanka is popular for Tea
- Recent health issues in host country (Obesity, diabetics, cholesterols).
- More than 150 thousand Sri Lankan heritance people in Australia.

21 | P a g e
Threats
- Private label branding at supermarkets is threats for all manufactures of tea; diminishing
brand loyalties.
- Increasing bargaining power of buyers and intermediaries
- Intense competition from both establish players and other new entrants specially in
uprising herbal tea market.
- Due to the popularity of coffee in Australia over tea, coffee considered to be the
dominating drink in the hot drinks market.

17.1. Quantifying opportunities for market capitalization

Category Description Calculation Critical Business

target
1. Consumer Hot coffee and Circulating social Attract changing
behavior chocolate media awareness customers to MacVelly
drinkers program using Moringa Tea Brand.
changing to company official pages
herbal tea and channels where we
show Herbal tea is
more healthier than
other hot drinks
2. Consumer Australian tea 1. Advertisements in This physicological
behavior drinkers known magazine and advertisements help to
to prefer good newspapers showing to take 40% of our
brand and Sri Lankans rich Tea monthy target.
heritage culture.
2. Show the 20 yers of
MacValley business
legend.

22 | P a g e
3. Consumer Sri Lanka Make special Make brand loyalty
behavior heritance people campaign for them and among them and 500
living in make testimonials thousand unit sale in the
Australia from them to Moringa first year.
believe they are tea
healthy because - Help their
they are from cultural events
rich health food - Supporting to
country. religious
activities
- Issuing
sponsorships
4. Mother Helping to have Take the loan and use Low rate of interest
Country low rate loans it for long term payments take off the
Government and Export product development burdens in the net
support Development process then that will profit.
Board Support strength the Core-
competence

5. Health issue Obesity 1.Same campaign use Our biggest sales

,Diabetics will in first option generating idea is this
increase 2. Issuing product health issue campaign
continues usage awareness catalog in try to capitalized more
of sugary and the supermarkets. than 70 % of our
caffeine 3. testimonial monthly target from this
products collecting program for idea
Moringa Tea

23 | P a g e
18. Targeting and segmentation
18.1 Segmentation profile of Australian market
Demographic 12-18 19-30 31-45 46-59 Above 60
Age
Family life Schooling College Working Working Retired adults
cycle student students and Adults Adults and
working retiring adults
adults
Life style Dependent Busy with Busy with Close to Retired age
upon carrier career retiring age. affected by
parents Obesity growth and Affected by diabetes and
Obesity found in family diabetes and cholesterol
found in most of the commitment cholesterol.
some adolescence Obesity and
children prone to
diseases such
as diabetes
and
cholesterol
Behavioral Most of Consumption Consumption Consumption Consumption of
segmentation the of fast food of fast food of strict diet strict diet with
children due to and with green tea green tea
consume convenience. consumption
junk or Consumption of coffee and
fast food of high tea.
with high caffeine
sugared
beverages

24 | P a g e
18.2. Targeting
The targeted customer segment of MacValley Organic Moringa Tea
• All age groups affected by obesity, cholesterol and diabetic
• Those who need to slim down
• Non tea drinkers
• Those who are busy with career
• Health conscious people.

19. Positioning statement for MacValley

Organic Moringa Tea
MacValley Moringa tea will be the good quality not blended
single tea solution for taste, significant aroma, immunity
boosting, detoxifying and relaxing also average price with high
availability tea brand in the Australia.

19.1 MacValley differentiate their Moringa Tea with

•Innovation- the Sri Lanka grown Moringa evolves in identical flavor, aroma and taste as per the
changing needs and requirements of the consumers.
•Refreshing experience in the consumption
•Instant and easy to use
•Loads of health benefits
•Fair trade-the company ensures that their production is made in the most environmental friendly
manner with appropriate use of water and energy.

25 | P a g e
20. Marketing Objectives
First two years marketing objectives for Organic MacValley Moringa Tea
1. Reach 8.3 million sales target in first year end
2. 2nd year 12.45 million sales in respect to first year 50% growth.

To achieve above targets we need fallowing customers in the first year and need to grow
by 50% for the second year.
1. Consumers who drink 2 cups of Moringa tea each day 10% from total customer base
This customers buy 3 packets for month. 36 packets for one year.
We need 10000 customers from this category.
2. Consumers who drink 3 cups of Moringa tea each day 10% from total customer base
This customers buy 4 packets for month. 48 packets for one year.
We need 5000 customers from this category.
3. Consumers who drink 1 cups of Moringa tea each day 10% from total customer base
This customers buy 2 packets for month. 24 packets for one year.
We need 50000 customers from this category.
4. Consumers who drink 1 cups of Moringa tea each day 10% from total customer base
This customers buy 1 packets for month. 12 packets for one year.
We need 100000 customers from this category.
5. Rest customers on and off customers purchase 1 packet at least for 3month period.
That means they purchase 4 packets for one year
We need 35000 Customers from this category.

26 | P a g e
20.1. Advertising objectives
1. 2 million people of Australia need to see our promotions just 8% of total population per
month.
2. Need to convert to be customer 1 out of ten viewers

Chosen Promotion mix for MacValley Moringa tea in Australia.

Chart 7

20.2. An effective promotion hierarchy

The Hierarchy of AIDA model

Promotion campaign target to reach more than

Awareness 2 million audience

From above Promotion campaign 50% will be

Interest interested

From above 50% will be Potential customers to

Desire buy MacVally Moringa Tea

Action From above Promotion campaign 50% will

Purchase the product (250000 customers)

27 | P a g e
20.3. Selection of promotion channels
• Catalogues- The MacValley Moringa tea awreness catalogue is available at all leading
supermarket and departmental stores where MacValley Moringa tea is available.
. • Social media- This is an effective way of promoting the product as the generation today is
extensively using the modern technology. Through social media network the experience of the
MacValley Moringa Tea, especially the benefits of the Moringa tea are shared among other
customers to make the purchase decision. The appearance of the MacValley Moringa tea on
social media with enormous number of likes and shares make the product trend.
• Newspapers- This is a daily circulated non electronic media. The appearance of the
advertisement daily influence the consumers psychologically to make their purchase decision.
• Special events- Have special events in supermarkets in Australia where they provide free
tasting of MacVally Moringa Tea. Sponsoring cultural events in Australia. Sponsoring Sri Lanka
inherent people to have cultural events in Australia.

20.4. Allocation of promotion budget

Media Amount Allocated
TV Commercials 2.5 Million LKR
Catalogues 2.5 Million LKR
Special Events 10 Million LKR

Social Media 15 Million LKR

**The distributor of Australia will be charge 25% from his share for the first year promotion.

28 | P a g e
21. Timeline of activities
The next requirement for the international business plan is to show the timeline of basic activities
in the business Plan. Therefore here the prepared timeline for the suggested work load of the plan.
Basically the following activities are included in the plan and the time period is two years’ time.
Starting with massive research and development project and then it leads to the successful
international business in Australia by MacValley. Then it needs to launch a heavy marketing
campaign including promotions and advertisements. Then it needs to teach the distributor’s
employees, about the production processes, technology used, culture of the organization, health
and safety and other environmental aspects. then thing is to launching the social media marketing
campaign as Australians are more towards new technology and highly using the internet.

Then it needs to get the customer feedback as MacValley has no more experience with Australian
customers and then it goes for the remedial and other actions. Hence the prepared timeline for the
campaign as follows;

The Gantt chat explains the MacValley plan for next two years. Chart 8

Description Months
Jan Feb Mar Ap Ma Ju Jul Aug Sep Oc Nov Dec
r y n t
Conduct marketing
research
Promotion and
advertising
Employee T&D

Online activities
and social media
marketing
Other Promotion
mix Activities
Getting Customer
feedback
Corrective actions
and measuring
expected results

29 | P a g e
 2nd year
Promotion and
advertising
Employee
evaluation and
training
Online activities
and social media
marketing
Other promotion
activities
Getting Customer
Feed back

Corrective actions
and measuring
expected results
Chart 8

21. Plan for performance management

Key performance indexes for evaluation of Strategic Marketing plan for MacValley
Sales and Marketing KPIs
1. Shops to one sales representative
2. Day selling rate / Week selling rate / Months selling rate for sales representative vice and
sales manager vice
3. Repurchasing rate regards to sales representative vice.
4. Number of commission earners who breaks the benchmark among sales Managers
5. Number of commission earners who breaks the benchmark among sales Representatives
Human resource management KPIs
1. Number of training hours completed.
2. Employee retention
Help desk (customer service) KPIs
1. Number of calls received in a working day
2. Number of satisfied customers for the given solution
3. Number of web inquires (e-mail/ Facebook /YouTube comments/ blog /Instagram/whatts
up) per day.
30 | P a g e
Promotion and advertising
1. Number of subscribers for You Tube channel per day
2. Number of viewers of the website for a day
3. Number of likes for Facebook post with in first 72 hours.
4. Number of leads generated by paper advertisement in a week.
5. Return on ads spend
6. Cost per Conversations
7. Conversion Rate leads to customer
Financial KPIs
1. Earnings before interest and taxes (EBIT)
2. Economic value added (EVA)
3. Berry ratio.( gross profit to operating expenses)
4. Contribution margin.( gross profit to Total sales)
5. Liquidity ratio.
6. Interest cover.
7. Days in accounts receivables.
8. Net cash flow.

23. Conclusion
Ceylon tea is the high quality tea all over the world. Using that advantage
Sri Lankan Tea Company MacValley decided to enter the Australian Market. Also company get
support from Sri Lankan government and Export development board in Sri Lanka. The product
will be Organic Moringa Tea ,
This assignment analyzes the Hypothetical Company MacValley Tea
PLC strategy to enter into Australian market. According to the analysis there is a favorable
market in Australian. In Australia they chosen indirect export appointing one sole distributor to
whole Australia region .Australian MacValley will serve them in a unique way while obtaining
the market opportunity. There and will give a good competition too.

31 | P a g e
24. Bibliography
1. “Brief Report on Australia’s Tea Market – Consulate General of the Democratic Socialist Republic

of Sri Lanka.” CONSULATE GENERAL OF THE DEMOCRATIC SOCIALIST REPUBLIC OF

SRI LANKA, SYDNEY-AUSTRALIA, slcgsydney.org/brief-report-on-australias-tea-market/.

2. “Choice Reviews Reveal Australian Tea Trends.” World Tea News, 12 Nov. 2019,

worldteanews.com/market-trends-data-and-insights/choice-reviews-reveal-australian-tea-trends.

3. Cox, Robert F., et al. “Management’s Perception of Key Performance Indicators for

Construction.” Journal of Construction Engineering and Management, vol. 129, no. 2, Apr.

2003, pp. 142–151, 10.1061/(asce)0733-9364(2003)129:2(142). Accessed 20 Aug. 2019.

4. “Dilmah Ceylon Tea (COSE:CTEA.N0000) - Share Price, News & Analysis.” Simply Wall St,

simplywall.st/stocks/lk/food-beverage-tobacco/cose-ctea.n0000/dilmah-ceylon-tea-shares.

Accessed 30 Dec. 2020.

5. E. Dobbs, Michael. “Guidelines for Applying Porter’s Five Forces Framework: A Set of Industry

Analysis Templates.” Competitiveness Review, vol. 24, no. 1, 14 Jan. 2014, pp. 32–45,

cemi.com.au/sites/all/publications/Dobbs%202014.pdf, 10.1108/cr-06-2013-0059.

6. “Export Products from Sri Lanka - Exporter Information - SLEDB.” Www.Srilankabusiness.com,

www.srilankabusiness.com/exporters/sri-lanka-export-products/. Accessed 30 Dec. 2020.

7. iEduNoteTM. “Marketing Plan: Contents of a Marketing Plan.” IEduNote.com, 12 Sept. 2020,

www.iedunote.com/marketing-plan. Accessed 30 Dec. 2020.

8. Khade, Anindita A. “Performing Customer Behavior Analysis Using Big Data Analytics.” Procedia

Computer Science, vol. 79, 2016, pp. 986–992, 10.1016/j.procs.2016.03.125.

32 | P a g e
9. Mangram, Myles Edwin. “The Globalization of Tesla Motors: A Strategic Marketing Plan

Analysis.” Journal of Strategic Marketing, vol. 20, no. 4, July 2012, pp. 289–312,

10.1080/0965254x.2012.657224.

10. statista. “Tea - Australia | Statista Market Forecast.” Statista,

www.statista.com/outlook/30020000/107/tea/australia#market-marketDriver. Accessed 30 Dec.

2020.

11. vision, Tea. “TeaVision.” Teavision, 8 June 2018, www.teavision.com.au/blogs/teavision-blogs/five-

australian-tea-trends.

12. online.visual-paradigm.com/knowledge/marketing-tool/aida-model-for-marketing-strategy/.

33 | P a g e