Ceylon Tea Services Plc Marketing Essay

Ceylon Tea Services Plc Marketing Essay Introduction Ceylon Tea Services PLC which is a subsidiary of MJF group, is engaged in the manufacture, export and marketing of tea bags and packets under the brand name Dilmah. The company exports its products to the UK, the US, Canada,Australia, New Zealand and South Africa. The company primarily operates in Sri Lanka, where it isheadquartered in Peliyagoda which is 7.5 km from Colombo. Merrill J. Fernando the founder of Dilmah set out in the 1950s to offer tea drinkers the finest tea on earth. Whilst doing so, he desired to make a genuinely ethical brand. It took nearly four decades for Merrill to fulfill his mission, but in 1988 he launched his family tea – Dilmah – the first producer owned tea brand in the world, handpicked, perfected and packed at source and shipped within days to tea drinkers around the world. Key Milestones Table 1 – Company milestone Year Key Milestone 1930 Merrill J Fernando, Founder of Dilmah is born in Pallansena, a tiny village in S outh Western Ceylon 1950 Merrill begins his journey in tea, as a trainee Tea Taster in London 1981 The incorporation of Ceylon Tea Services, the company which markets Dilmah tea 1988 Launch of Dilmah Tea in Sydney Australia 2000 Dilmah launches in Sri Lanka 2001 Dilmah launches in United Kingdom 2005 Medinge honors Dilmah as a Top Brand with a Conscience 2006 Dilmah acquires ISO 22000 : 2005 status 2007 Dilmah receives accolades at the Best Corporate Citizen Awards 2009 Dilmah Conservation unveils first Elephant Information Centre in Sri Lanka Source: Dilmah website Dilmah operates both in B2B and B2C markets by producing tea, tea bags and packets. Its product range varies from different flavored tea as depicted in Table 2. Products and features Table 2 – Product Categories Product Categories Product Names Dilmah Tea Premium Singal Origin Tea The Original Gourmet Teas Exotic Fun Tea Other Products Asian Spice Tea Ceylon Green Tea Watte Single Estate Tea Green Tea Fruit Infusi ons Trax Pack Box Pack Almond Toffee Creamity Wafer Rolls Korento Cookies Fruit Cookies Good Choice Cookies Chocopie Cheese Ball Cracker Fruit Drop Candie Wafer Sticks Darling Jelly Source: Marketing Memo June 2010 Salient features of Dilmah tea brand includes, à ¢Ã¢â€š ¬Ã‚ ¢ Safe to use & consume à ¢Ã¢â€š ¬Ã‚ ¢ Non-toxic à ¢Ã¢â€š ¬Ã‚ ¢ Rich in aroma and taste à ¢Ã¢â€š ¬Ã‚ ¢ No side effects à ¢Ã¢â€š ¬Ã‚ ¢ Free from artificial ingredients à ¢Ã¢â€š ¬Ã‚ ¢ Secure Packaging Company Performance The company recorded revenues of Rs. 4,957.1 million (US$43.2 million) in the fiscal year ended March 2010. Its net profit was Rs.1,203.5 million (US$10.5 million) which is 25% in fiscal year 2010. Ceylon Tea Services PLC has a issued share capital of Rs.200 million (US$ 2M). Year over year, Ceylon Tea Services PLC has been able to grow their bottom line from 487.1M to 1.2B primarily through revenue growth (4.4B to 4.9B). For while the costs associated with cost of goods, SGA and income tax a ll increased as a percentage of sales, the growth in top line revenues contributed enough to still see net income improve. Figure 1 – Company Performance Source : Ceylon Teas PLC Audited Accounts Industry and Market As Dilmah operates in over 95 countries, competing in a global market place they fight for market share with both global and local players in each country. Therefore, the market share differs based on the country in which the organization cater. The MJF Group which is the parent company of Ceylon Teas PLC, caters to over 95 countries which include Australia, New Zealand, CIS, Eastern Europe -Poland, Baltics.