MGT301 Principles of Marketing GDB 1 Solution Fall 2014


A well-established Food Company has decided to come up with a new product under its product range. Its existing product range consists of various products such as; pasteurized milk, coffee, yogurt etc. The management wants to launch instant tea sachet. The management of the company is concerned about the fact that how consumers would perceive launching instant tea, not only has this but they are concerned to know the demand of different types of teas among people, the target population and packaging for tea. It is a new concept for this company and already some other companies offering such kind of products.

Point of discussion:

Imagine that the owner of this company hires you as a marketing researcher and you have been assigned a task of designing specific research objectives and appropriate research design based on the above given scenario.


Key Factor for Research Design
 High demand of such blended tea in the locality.
 Accelerated sales growth experienced in the category of sachet packs.
 Extensive distribution channel for the sachet packs focusing even on small kiosks in the urban and rural areas.
 The product would be focussing the price conscious segment of the market by providing similar and better quality branded product at lesser price.
 Emphasizing on excellent service to the other wholesalers.
 Adapting to the rapid social and economic changes.
 Improving the packaging will increase the life of tea and hence would secure the overall distribution and selling techniques.
Strategic Recommendation:
Initially, the product should be launched in the local market with branding concept in mind. Tea sachets have shown tremendous growth in the last few years. The company should focus to capture the sachet market first by aggressive marketing campaign. The preferred mode of distribution is going directly to the wholesalers. There is an option of having no involvement of any distributor between the manufacturer and the wholesaler in the city where manufacturing is being done.
By giving healthier profit margins to the wholesalers, the wholesalers will hence promote the product. This strategy is important to introduce such a new product and to create an extensive distribution and sales channel. The company will later expand into other cities through a distributor network.