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Niles Brock De Monfort University

Title: Marketing Rakura Tea in Denmark

English Language Skill for Business

HUMS 3006
GCIB (Afternoon) Students

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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TABLE OF CONTENTS PAGE

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

weight loss (Rakura, 2014).

Tea consumers in Denmark

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

Rakura tea and possibilities to market the product in Denmark.

2.1 Primary data collection

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.

2.2 Secondary data collection:

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

gain market share.

4. SITUATIONAL ANALYSIS

4.1 Company 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,

and fine dining restaurants in Nepal.

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4.2 Customer Analysis

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.

Rakura tea main focused on health and fitness.

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.

4.3 Buying Behaviour Process:

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.

4.4 Competitors Analysis

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.

Furthermore it is bio gradable.

5.2 Weakness:

For newly launched product, this might difficult for the company to take a position and survive in

the Denmarks market.

5.3 Opportunity:

Launching Rakura tea product in Denmark will be the great opportunity to expand market and

globalize its image. Marketing in international level is helpful to increase profit

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

no certainty to grab the market value like other competitor 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

Four major segment variables used in segmentation:

6.1 Geographical: Copenhagen, Denmark

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

and rest of Herbal and Black tea is preferred.

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

orientation by the Danish.

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

environment pollution free. (Limbu, 2015)

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

be easier for them to purchase. (npNews.info, 2012)

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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)

7.2 Price Determination:

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

price of the product.

7.3 Place (Distribution)

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,

but Rakuras Nepalese roots will distinguish it as a different product.

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

influenced by a high degree of pull strategy.

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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

emerging the trend of healthy lifestyle.

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

responsibility about taking care of our Mother Earth.

REFERENCES:
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Bashyal, S., 2014. Kathmandu Post. [Online] Available at: http://www.ekantipur.com/the-

kathmandu-post/2014/08/06/money/green-tea-sales-heat-up-as-health-trend-spreads/265860.html
[Accessed 07 04 2015].

Coop Trading, 2014. Own Brands. [Online] Available at: http://cooptrading.com/menu2.htm.

[Accessed 08-40-2015].

Country report, 2015. Euromoonitor International. [Online] Available at:

http://www.euromonitor.com/tea-in-denmark/report[Accessed 07-40-2015].

Euromonitor, World Bank, 2014. Quartz. [Online] Available at: http://qz.com/168690/where-the-

worlds-biggest-tea-drinkers-are/[Accessed 01-04-2015].

Hollensen, S. 2004. Global Marketing. A decision-oriented approach. 3 rd Ed. London: FT Prentice

Hall. PP. 488-506

Internetworldstats, 2013. Internet World Stats. European Union. Denmark. [Online] Available at:

http://www.internetworldstats.com/eu/dk.htm /[Accessed 12- 04-2015].

kantipur.com, 2012. Kantipur.com. [Online] Available at: http://www.ekantipur.com/2012/12/21/top-

story/himal-tea-launches-rakura-brand/364454.html[Accessed 07 04 2015].

Limbu, G. (2015). Friday. Retrieved 04 04, 2015, from http://www.fridayweekly.com.np/:

http://www.fridayweekly.com.np/event_reviews.php?id=1334

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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np News.com. (2015). np News.com. Retrieved 04 04, 2015, from

http://nepalnewsinfo.blogspot.in/: http://nepalnewsinfo.blogspot.in/2012/12/rakura-heavenly-

classics-launched.html

Rakura, 2014. Rakura. [Online] Available at: http://rakura.com.np/health/[Accessed 04 04 2015].

Republica. (2014). My Republica. Retrieved 04 04, 2015, from http://www.myrepublica.com/:

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=70599
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APPENDICE:

Hi! I am an International Business student in Niels Brock. I am currently working with my

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.

It will only take 2 minutes to answer the survey questionnaire.

Your time and help is highly appreciated! Thank you very much in advance!

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

4. How often do you drink Tea in a day?

S never
S one cup
S two or more cups

5. At what time do you drink Tea?

Morning
Afternoon
Evening

6. Do you prefer a specific Tea brand?

S Yes
S No

7. Which is important for you in Tea?

S Quality and Taste
S Price
S Ease of Use

8. Does packaging affect your choice of Tea?

S Yes
S No
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9. Which Tea do you prefer?

Organic
Green
Herbal
Black

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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