Fusion Tea "Biri yapacaksa, neden üç kullanalım” “When one will do, why use three” Exported to: Turkey Export Marketing Group Members Muhammad Mustafa Atif Abker Usama Arif Muhammad Ali Gondal Hassan Istafa Executive Summary: Fusion tea is new entrant with completely new concept and new business idea. Our model aims to target the Turkish economy as this model has been previously tested in the Pakistani market. However, due to a greater potential seen in a market abroad we (the board) decided to take a step forward towards growth. The product will be non-export as we have already tested it in the Pakistani market. The same product will be marketed in Turkey as we exercise standardization in the beginning. The great demand of tea in turkey will support our business as turkey has one of highest tea consumption all around world. Turkey as a tourist destination can also be beneficial for our brand for global attractions. Cities we would be targeting are one of the busiest and top attractive in turkey which have more footfall than other cities such as Istanbul, Ankara, Izmir and Kayseri. The concept of “easy to make” practise in such cities can be result beneficial for our brand. Easy to export such product because the taste of tea is almost same across the world so the cultural difference and climate won’t be a factor which would be an obstacle to export the product. The good relationship between Turkey and Pakistan makes export to turkey for us much easier. According to FTA “free trade agreement” between Turkey and Pakistan, both countries agreed to eliminate 85% of tariff which resultant huge increase in exports between both sides. Our team have bigger plans to take this brand on global level for worldwide recognition of Pakistan. Mission Statement Our mission is to provide our customers with the all-natural ingredients in one packing to ease their everyday lives. At Fusion Tea, we stay true to our word by always providing the best quality experience, customer service, and tea. Vision Statement Our goal is to provide the easy to make experience for our customers. Fusion Tea wants to start the trend of providing healthy beverage options and by combining drinking excellent teas with their daily lifestyle. We want to change the way people see and think about tea. Corporate Product background: Fusion tea is new entrant with completely new concept and new business idea. Fusion tea offers a daily day use product “tea” to satisfy the caffeine intake of the customers. The main adaptation of the fusion tea is from the Lipton tea bags and after spending ample time on research fusion tea come up with the 3 in one tea bag. This includes all the essentials to make tea in one single tea bag and which is way more convenient and easier to use. We are making our position different in matter of easiness and time saving because the user of Fusion Tea does not have to wander in search of tea, milk, and sugar. Fusion Tea does this once and for all. But to compensate this flaw (as user do not like the product costlier than its competitive product) we are giving great facility of all the three components of tree in one Tea Pack. That’s why we say “When one will do, why use three”. Our easy to make feature (The core concept of the product) is also our competitive edge that no other marketer is following currently. Fusion tea is adapting product development which mean the market is same but the product is new and will be using market penetration to enter the market. This product is suitable for the export because there is huge market of tea drinkers and according to current market dynamics fusion tea full fill all of the customers need related to tea which is convenient and time saving. It would be easy to export such product because the taste of tea is almost same across the world so the cultural difference and climate won’t be a factor which would be an obstacle to export the product. The product will be non-export as we have already tested it in the Pakistani market. The same product will be marketed in Turkey as we exercise standardization in the beginning. Industry Analysis: Fusion Tea make consumption of tea very convenient for the lovers of tea and therefore in economies like Turkey where per capita consumption of tea is nearly 7 pounds in a year (as per a world bank survey), Fusion Tea will most definitely attract the tea loving Turkish people. The consumers can now spend more time enjoying tea than making it. Especially for the consumers who are occupied by their work which accounts for almost 87% of their labor force. Turkey being a growing market and recognized as the newly industrialized country is progressing towards labor and employee efficiency and Fusion Tea can aid in improving efficiency at work because it saves time of making tea and if considered as a whole there are uncountable hours wasted on making tea yearly in the corporate sector of Turkey. Revenue in the Tea segment amounts to US$11,535.6m in 2021. The market is expected to grow annually by 13.33% (CAGR 2021-2025). By 2025, 57% of spending and 6% of volume consumption in the Tea segment will be attributable to out-of-home consumption (e.g., in bars and restaurants). The average volume per person in the Tea segment is expected to amount to 2.9kg in 2021. Market Analysis Customer Based: The Marketing Objectives of “Fusion Tea” are as follows: To get high return on products through customer satisfaction. To provide high quality products in order to earn customer loyalty. To encourage repeat sales To introduce the innovated form of tea that already contains milk and sugar to achieve high growth in tea industry. Target Market: Turkey has a huge consumption capacity when it comes to Tea consumption, and with a huge consumption rate many huge retailers make up the most of the market cap in order to fulfil the demand. An individual in turkey on average consumes tea 3 times a day and Turkeys total population of approximately 90 Million, this shows how huge our target market is. The major goal will be to penetrate in the market through various large-scale retail giants such as Carrefour and Migros, this would enable us to target a huge number of people that could directly purchase our product. Trade fairs would be a key aspect in terms of understanding turkeys’ market itself, this would enable fusion tea to get a firm standing in terms of launching its products in turkey. Last the Wholesalers and distributors would be fusion teas main source of bridging the gap between fusion tea and the consumers, Fusion Tea will be looking to lock high end retailers especially dealing with FMCG goods in order to make sure we have a chance of a firm standing within the market. Segmentation: Segmentation is to divide the total market in segments. Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying practices. Through market segmentation, we will divide large markets into smaller segments that can be reached more efficiently and effectively. Our main focus in terms of segment marketing is as follows: Segment Marketing: It is to make some segments. Everyone needs tea as per their requirement. We are dividing our customers in two segments which are as follows: Regular (Tea) Users. Sugar Free Users. Through segmented marketing their will be chance to sell our tea at comparatively high prices with high profit margin good image will be created in the market. There is a large number of people in Turkey those are concerned about their health and use sugar free tea. We do not want to lose our share in them that is why we are providing Sugar free version of Fusion Tea. Geographic Host Country Pakistan Target Country Turkey City Lahore Density Urban Climate Northern, Southern Demographic Age 19+ Gender Male, female Family Size All Family Life Cycle All Income Above USD 3000 annual (Seekers) Occupation Professionals, managers, supervisors, retired, employees Education Any Religion Any Nationality Turkish Psychographic Social Class Middle class and onward Lifestyle Achievers, Strivers Personality Gregarious, authoritarian, ambitious Behavioral Occasions All Benefits Quality, convenience, economy User Status Potential user, First time user, regular user User Rates Medium User, heavy user Loyalty status Medium, strong, absolute Readiness stage Interested, desirous, intending to buy Attitude toward product Enthusiastic, positive, indifferent This is current market analysis of Fusion tea based on the local market. Demographic Segmentation Fusion tea will be targeting all types of consumers from the age of 18 and Above, Both Male and Female consumers will be our Key Target Audience. Consumers between the age of 18-22 tend to develop life lasting habits, therefore it would be crucial for Fusion Tea to gain as many young consumers as they can and turn them into life time consumers of our product. Major Target market would include Students as they are the key Individuals in terms of having to be our lifetime consumers, Housewives would also be our targeted consumer as housewives mostly have control over groceries and we would want to make sure that Fusion Tea is always a part of their grocery List, Lastly, we’ll be targeting Cooperate workers since our product is a Quick Fix for tea lovers and works best for cooperate workers since they have a busy schedule. Geographic and Psychographic segmentations Fusion Tea will lay its foundation by entering major cities of Turkey and setting ups its distribution channels in Izmir, Istanbul and Ankara. Major target areas would include, Commercial Areas, Grocery stores located in different housing societies and stores near student hostels and student accommodations. In terms of Psychographic segmentations fusion tea will be targeted towards people that have less time throughout the day and have a busy schedule. We’ll be targeting middle class consumers since they make up for most of our targeted audience bracket and consumers that consume even more than 3 Servings a day. Competitors Turkey has a mass market space for Tea therefore there are many Tea manufacturers and retailers across turkey. Hafiz Mustafa, Zencefelli, Caykur Imported Brands such as Lipton and Tapal 207 Tea Companies across Turkey 45 Manufacturing Units Across Turkey Market Targeting: A set of buyers sharing common needs or characteristics that the company decides to serve. After evaluating different segments, the company must decide which and how many segments it will target. Market targeting can be carried out at different levels. Our target marketing market will be “concentrated marketing”. Concentrated marketing targets a small share of a large market with limited company resources. One should have knowledge of the market in order to spread and distribute product more effectively and efficiently. We are targeting market of Istanbul, Ankara, and Kayseri to start with. Export marketing plan: References: (Source: https://www.statista.com/outlook/cmo/hot-drinks/tea/turkey). (CAGR 2021-2025)