Paper on Organic Green Tea for Optimal Health: Lowest Prices Guaranteed

Introduction

Currently, there is a health-conscious mindset and with the health consciousness, came the need to consume organic green tea (Reygaert, 2017). Therefore, the company's mission statement is to produce organic green tea with the highest combination of nutrients for optimal health for the whole family.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Value Proposition

To deliver healthy, organic green tea at the lowest possible market prices. The company promises to blend the matcha green tea with other neutral ingredients and package the final product that will be marketed in Australia. The strength of the company's products is its various natural ingredients that will produce the most health benefits any organic green tea can ever produce

Customer Segments

While the focus is the average consumers, the company will produce a separate product for the high-end market to take advantage of the high-end market segment (Reygaert, 2017). There products categories will be produced.

Volume unpacked green tea for the low-end market segments. The products will be packed for the customer at the point of sales based on their demands

High-end green tea- this will be specifically blended for high-end customers. Each customer will provide his tastes and preferences for the unique blending

Wholesale packet for the wholesale market. These will be produced and packed in volumes for the whole market. No products variation will be possible.

Channels

The company will use integrated marketing communication to reach the customers with the cost of marketing apportioned equality between traditional marketing (television, radio, billboard, word of mouth and newspapers) and digital marketing (social media, internet marketing, blogs).

Customer relationships to be fosteredThere are two customer farmers in the value chains. the high end and low-end retailers who buy the green tea for their final use such as households, and hotels. These customers will require small volumes for their use and will form the bulk of the company's customers (Lee, 2013). There are also businesses especially the wholesalers such as supermarkets and distributors who will order the green tea in bulk. The company will adopt the customer's relationship management strategy for each group of customers. The whole sellers will need a lot of assistance from the company which means that the company must liaise with them and develop unique products for their customers. The company will also work with the customers in co-creation to create value to the customers through feedbacks and recommendations (Finne & Gronroos, 2017).

Revenue Streams

The main source of revenue will be the sales of the packed organic green tea. The company will source the organic green tea from Thailand's small-scale producers and will not be directly involved in farming the green tea (Rhee, Moon & Rhee, 2015). The company will then process the green tea blend and package the green tea for export to Australia. The company's main sources of revenue will be the sales of packaged organic green tea and blends (Hwang et al., 2018, Reygaert, 2017). The company will leverage its economies of scale to sources the raw materials at very low costs and sell volumes of the final products at a profit (Stenstrom, Norrbin, Parida & Kumar, 2015). Export cost of large volumes of organic green tea is much lower compared to exporting small volumes of the same. The company will apportion the cost of production by production volume and the farmers will only be paid for the high-quality tea purchased by the company at the farm (Zielke & Dobbelstein, 2007). The company can, however, organize small loans to the farmers that produce the highest quality tea and have the potential to increase their production volume. The company will sell to other resellers (B2B) and collect all the amount due after every two weeks.

Identification of strategic resources

The company already has a go down in Australia because the company owner is an Australian. Most of the labor will be provided by the family members who have history and experience in green tea production and already has a small market share in the country. The company will expand through market and products development (Stouras, 2016). The company will introduce a new category or class of green tea with other blends to improve the aroma, taste, and quality.

Key Partners

The key partners will be farmers in Thailand who will liaise with the company to produce the best and high-quality tea leaves. The other strategic partner will be a local sourcing company in Thailand that will take care of coordination in Thailand, from sources to the warehouse for processing and packaging.

Key activities that will lead to sustainable competitive advantage

The main activities will include:

• Green lea leaves collection from all farms to the local store or depot
• Shipment to the warehouse
• Professing the green tea leaves
• blending
• Packaging
• Shipment to Australia
• Sales and distribution

To develop a sustainable competitive advantage, the company will work with the farmers by providing procure input on farming in term of advice, quality assessment and other necessary farm inputs (Mathy, 2016). The company will use intelligent coordination to make the supply chain sustainable. For example, the company will minimize trips to the farms buy going for full loads instead of small loads. The trucks will only be released to collect raw green tea when the volume is adequate to avoid waste.

Cost structure

The company will produce and sources the organic green tea from Thailand and ship the final products to Australia that will be marketed through its outlets and authored distributors to maintain the brand image and prevent waste and lower the cost of production, the company will establish its own chain stores across the country

Therefore, the main costs include:

• Raw Materials 120000
• Packaging Materials 10000
• Labor 15000
• Marketing 4000
• Fixed costs Warehousing 200000
• Machine Operating and Repair Cost 4000
• Utility Bills, 3000
• License, 2000
• Business Permits, Tax 4000

References

Fine, A., & Gronroos, C. (2017). Communication-in-use: customer-integrated marketing communication. European Journal Of Marketing, 51(3), 445-463. doi: 10.1108/ejm-08-2015-0553

Hwang, J., Shim, D., Im, H., Park, S., Kang, E., & Cho, K. et al. (2018). Changes on Physicochemical and Matcha Quality of Tea Leaves (Camellia sinensis) under Shading Cultivation. The Korean Tea Society, 24(2), 40-49. doi: 10.29225/jkts.2018.24.2.40

Khandelwal, D. (2013). 'Product Community: Strengthening Bond with Customers'. SSRN Electronic Journal, 23(12). doi: 10.2139/ssrn.2859619

Lee, H. (2013). Major Moderators Influencing the Relationships of Service Quality, Customer Satisfaction, and Customer Loyalty. Asian Social Science, 9(2). doi: 10.5539/ass.v9n2p1

Mathy, K. (2016). Key provisions and implications for businesses of the New General Data Protection Regulation. Journal Of Intellectual Property Law & Practice, 11(12), 886-888. doi: 10.1093/jiplp/jpw148

Reygaert, W. (2017). An Update on the Health Benefits of Green Tea. Beverages, 3(4), 6. doi: 10.3390/beverages3010006

Rhee, J., Moon, S., & Rhee, M. (2015). Effects of Product Targeting on Non-Targeted Customers. Journal Of Marketing Thought, 01(04), 52-63. doi: 10.15577/jmt.2015.01.04.52

Stenstrom, C., Norrbin, P., Parida, A., & Kumar, U. (2015). Preventive and corrective maintenance - cost comparison and cost-benefit analysis. Structure And Infrastructure Engineering, 12(5), 603-617. doi: 10.1080/15732479.2015.1032983

Stouras, K. (2016). Online Product Support Forums: Customers as Partners in the Service Delivery. SSRN Electronic Journal, 21(11). doi: 10.2139/ssrn.2868382

Stouras, K. (2016). Online Product Support Forums: Customers as Partners in the Service Delivery. SSRN Electronic Journal, 23(11). doi: 10.2139/ssrn.2868382

Zielke, S., & Dobbelstein, T. (2007). Customers' willingness to purchase new store brands. Journal Of Product & Brand Management, 16(2), 112-121. doi: 10.1108/10610420710739982