MARKETING PLAN FOR AFRI TEA & COFFEE BLENDERS (1963) LTD

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OUTLINE
Introduction Company Objectives Company Governance Product Mix Marketing Program Distribution Channel Pricing Strategy Conclusion and Recommendation
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 The company was established in 1963 as Brookebond Tanganyika Limited

Introduction

managed by London based Brookebond group of companies. Tanzanias government through Tanzania Tea Authority (TTA).

There after ownership transferred to Tanzania Tea Blenders owed by Like many state owned companies, the company was privatized and

eventually changed its name to Afri Tea and Coffee Blenders (1963) Limited in October 2008. operations spread out to 16 regions within Tanzania with 12 branches and 1 agent.

The company operates from its headquarters in Dar es Salaam with its

The company employs 210 people while getting its regular supplies of raw

materials from various tea estates in the Iringa and Tanga regions. The firm has got a production capacity of more than 3000MT and 750MT of Tea and Coffee respectively.
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Objectives of Afri Tea & Coffee Blenders (1963) LTD

Establish and maintain an effective quality management system Measure all aspects of the quality management system as a basis for

continued

improvement.

Improve the system through training and investment in new technology. Comply with statutory and other requirements

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CORPORATE GOVERNANCE
VISION STATEMENT
To be the leading tea blending, packing and marketing company in Africa and a significant player In the World.

MISSION STATEMENT
To be the consumers first choice for blended tea of high quality and great tastes

The main company activities include: Blending and packing of tea. Packing instant coffee powder. Roasting, grinding and packing pure coffee. Marketing and selling company's products.
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Company Product Mix

The Company consist of 3 main aspects which are: Tea products, Coffee Products, Herbal tea products.

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Product Mix
Tea Products

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Products Cont
Coffee Products

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Products Cont

Herbal Tea Products

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Product Mix Summary

Product Mix Width
Tea Products Coffee Products Tea Herbal Products
Camomile tea bags Green tea tea bags Hibiscus tea bags Lemon grass tea bag Peppermints tea bags Rooibus tea bags Kilimanjaro infusions loose chamomile flowers Kilimanjaro infusions loose hibiscus petals Kilimanjaro infusions loose peppermints leaves 10

African Pride Tea Gold Blend Tin Africafe instant coffee tins African Pride loose tea African Pride tea bag
Africafe instant coffee pouches African caterer pack

African Pride Gold Blend tea Bag Africafe 1.6 gm sachets African Pride Masala tea Bag Chai Maarufu tea bag Gold Blend Tea loose Green label tea Green label tea bags tag less
Africafe 3 in 1 Africafe gold (Agglomerated)
Africafe safari blend coffee beans (Dark roast) Africafe safari blend ground coffee Africafe Zanzibar Blend medium roast GROUP _5_DAR_CAMPUS

Product Life Cycle

Afri Tea & Coffee Blenders (1963) ltd, apply a product life cycle

approach involving their partners from farm to consumer in order to minimize the environmental impact of their products and activities. Aims of the cycle is: To use natural resources efficiently; To improve the environmental performance of the products

along their entire life cycle.

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Marketing Programs
The chart below shows tools that have been used for analysis of the Afri

marketing.

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 Product

Product brands of the company have been in the market for more than two decades except for Chai Maarufu brand. Afri Products have good quality, value, packaging and branding Place

Place relates to decisions about the storing and transporting of products, and also about selecting the products channel of distribution. These decisions are critical to the success of an organization. Price
The firm has several options for addressing the price. Manufactured products may be force to switch to offshore sourcing of certain component to keep costs and prices competitive. Another factor is a through audit of the distribution structure in the target markets. Promotion The company use advertisement as the form of promotion through newspapers, magazines, television, radio, billboards, or the Internet
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Product
Product brands of the company have been in the market for more than two decades now except for Chai Maarufu brand. Product brands are those very well known to the Tanzanian masses especially at the domestic market. Meanwhile all Afri Tea Brands have been doing well in the export markets. As for the coffee products, Africafe has been noticeably accepted in the export market so much that it is competing effectively with other brands from multinational companies.

The export destination for Afri teas & coffees is Germany, Faroe Island, Japan, Russia, Belgium, Denmark, Kenya, Comoros, Zambia and Uganda, United Arab Emirates (UAE), Oman etc.

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Branding
Is the collection of attributes that the consumer has come to expect from a product, which will strongly influence their buying patterns. Branding can be achieved using a company name - it can be applied generically or, as in the case of , on an individual basis. The brand name promises the consumer particular benefits, such as quality and value for money, with these expectations being built up over many years. A brand name is often considered by a company to be its most important intangible asset. In a market where repeat purchases are the key to profitability, a brand name becomes paramount to a product's success.

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Packaging
Afri products packaging is the most direct and largest communication vehicle that the organization had with the most impressions they can deliver. And on the packaging, the firms communicate wellness benefits in their business. The packaging materials continue to be the main source of concern, mainly in plastics, paper boxes, metal and glass. Afri packaging have been target to all consumer types and business. Eco-efficient packaging Packaging is essential for food safety. It also helps to avoid wastage before and after purchase by maintaining freshness for the consumer. Packaging Source Reduction Waste recovery schemes for the collection, separation and recovery of used packaging .

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Price
The firm has several options for addressing the price. Manufactured

products may be force to switch to offshore sourcing of certain component to keep costs and prices competitive. Another factor is a through audit of the distribution structure in the target markets.

Price strategy Price strategy is a basic, long-term pricing framework, which establishes the initial price for a product and the intended direction for price movements over the product life cycle. It consists of 3 type of pricing strategy which is Price skimming, Penetration pricing and Status quo pricing.

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Price technique
Price Setting
Establish price Benchmark Estimate demand, costs and profit
Skimming Status quo Penetration

Choose price strategy

Evaluate result Fine tune best price

Set Price

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Price technique
Skimming Is a pricing technique designing to allow high price at higher income groups for luxury or status goods, or at extracting maximum returns from a market for a new technology product before competitors emerge.

Penetration
Is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. Status quo

Is the pricing technique of a firm may seek price stabilization in order to

avoid price wars and maintain a moderate but stable level of profit.

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Factor Affecting the Pricing

Cost
Product

Promotion
Place

Competition Quality

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Place
Place relates to decisions about the storing and transporting of products, and also about selecting the products channel of distribution. These decisions are critical to the success of an organization. Effective inventory management drives down costs and enhances product quality. Choosing the right distribution channel (i.e. should we sell through middleman firms or should we sell directly to the end-user) Direct energy cost pressures have eased in recent months. The major distribution channel include with geographically consideration with the manufacturing place situated. Its very cost effective way for the firms expenses in distribution its products to targeted market. Afri Channel decisions and intermediaries:i. Direct and indirect sales ii. Mail order and internet iii. Retail iv. Wholesale
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v. Agents

Distribution Channels
Retailer Channels
Producer

Wholesaler Channels
Producer

Agents Channels
Producer

Retailers

Wholesalers

Agents Wholesalers Retailers

Retailers Consumers Consumers

Consumers GROUP _5_DAR_CAMPUS 22

Product transportation
Adequate transport have been uses to transport products from the factory to consumers. Containers Trucks Pickups

Motorcycles

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Promotion
Few good or services, no matter how well developed, priced or distributed, cannot survive in the marketplace without effective promotion which is a communication by marketers that informs, persuades and reminds potential buyers of a product in order to influence their opinion. Advertising

Advertising is defined as any paid form of product information that is delivered to potential customers in a non-personal way (such as through newspapers, magazines, television, radio, billboards, or the Internet). The communication is not just about advertising only, and the communication often creates a creative slogan in order to make sure consumer will remember Products African Pride/ Africafe /Kilimanjaro
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Advertising Media
Television Outdoor media

Internet
Printed Media

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Benefits and limitation

Porters five forces Afri Tea and Coffee Blenders (1963)

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Benefits and limitation cont.

Threats of Substitute products (Strong)
During our visit and interview with the Afri management team and major products consumers we could identify Substitute product for Afri Tea and Coffee Blenders (1963) ltd. Substitute of products is a threat for Afri because there are many substitute product available on a market Such as Chai Bora Limited product as a part of Trans century under the Tatepa Group of Company

Threats of New Entrants (Moderate)

Afri Business Competition still attractive. So the threats of new entrants is moderate because the variation segment on this industry is moderate attractive which has moderate entry barriers and low exist barriers.

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Benefits and limitation cont.

Industrial Rivalry (Strong)

The intensity of rivalry among Afri existing competitors in the markets is strong due to company have good and clear markets leader with a small existing competitors and high switching cost of substitute products from a customers. Bargaining power of suppliers (Moderate) The profitability of those industries significantly depends on the suppliers pricing strategy of the products that serves as input for the industry players. During our visit and interviews with tea and coffee suppliers including major industry players we identify Afri Bargaining power of suppliers is little strong due to controlling power over increasing the price of supplies.
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SWOC ANALYSIS
STRENGTHS Being a product of African. They offer high quality and safe products at affordable prices. Importance is given to nutrition, health and wellness of the consumer. The brand is well differentiated from its competitors. They have an efficient supply chain. Responsive organization structure and a strong management team. WEAKNESSES Supply chain configuration is complex Cascading indirect taxes Weak bargaining power towards consumers/buyers. Weak marketing and distribution products.

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SWOC ANALYSIS CONT

OPPORTUNITIES There is potential for expansion in small town and other geographies. Rising demand for premium product. Simply taxation and distribution. Product offering. CHALLENGES Sectoral woes volatility of price of raw material, packaging material and fuel. Availability of agro based commodities. Food inflation. Competition with East African community. Unreliable electricity Power Supply Competitors have diversity in packaging (bottles, pouches, cans, etc)

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Conclusion and recommendation

Afri corporate objectives and strategy uses as a tools to maintain its market position as the Tanzanias number one selling tea and coffee brand. In order to achieve this, Afri has to develop a marketing strategy that will take into account all the elements of the marketing mix. This will involve individual strategies for pricing, product development, promotion and distribution.

Since Afri tea and coffee blenders (1963) ltd is an established brand name, these strategies must be flexible and relevant to each new generation of consumers, but at the same time, great care must be taken not to damage the perceptions of the product built up over decades of marketing.

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Thank you for your Attention !

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