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A Marketing Plan for MYTEA

1.0. Executive Summary


PT. Suntory Garuda Beverage has launched its latest product, which
is MYTEA, the oolong tea. Eventually, this division had launched the
similar products that were Mirai Ocha and Mount Tea. And PT.
Suntory Garuda Beverage is taking advantage of it, because MYTEA
is the first bottled oolong tea in Indonesia. Choosing “Mytea, Enak
Terus” as the tagline, MYTEA would like to position its brand to the
customers who like to have snack without fearing that they will have
too much bad calories in their body because according the US
Agriculture Research Services’ Diet and Human Laboratory, the
oolong tea is effective in controlling body weight, removing the harmful
free radicals, controlling diabetes, and as an anti-cancer properties.

The primary marketing objective is to achieve half-year Kalimantan


Barat sales of Rp 2 million, trying to get at least 10% of the tea-based
beverage in the half-year launching.

2.0. Situation Analysis


2.1. Current Marketing Situation
PT. Suntory Garuda Beverage is a joint venture of Suntory
Beverage & Food Ltd. (Japan) and the Indonesian food and
beverage company Garuda Food Group owned by Tudung
Group. It was established in July 2011. And now, under this
division focuses on the non-alcoholic beverages. In Japan,
Suntory Beverage & Food Ltd. has been known as the second
largest tea-based sales, such as Suntory Oolong tea, Boss and
Orangina with Rp 183 trillion in the recent two years.

As the tea-based category, bottled tea experienced tremendous


growth in the recent years. Currently, the average people in
Kalimantan Barat consume more tea while they are dining in
the restaurants or cafeteria. And another choice is the mineral
bottled water.

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Competition is more intense now and more new types of bottled
tea emerge. The Kalimantan Barat market is dominated by four
products, namely Teh Botol Sosro, Frestea, Teh Pucuk Harum.
To gain market share in this dynamic-environment, PT Suntory
Garuda Beverage must carefully target specific segments with
features and benefits valued by customer group.

2.2. Market Description


The bottled tea-based market consists of many different types
of tea. Varieties of tea type include the green tea, flavoured tea,
black tea, original tea. Although these different types of tea are
sold as consumer products, they also serve as the core
ingredient, including the enhanced tea, such as anti-oxidant or
adding the ECGC (Epigallocatechin gallate) chemicals; milk
and tea flavored; fruit flavored; or any combination of those
categories.

Although some consumers may not perceive much of a


different between brands, others are drawn to specific product
features and benefits provided by different brands. For
example, some consumers may perceive the bottled tea is
more sterilize. Some may look for tea for quenching thirst.
Others may seek additional benefits claimed by bottled tea as a
low-calorie, healthy alternatives to soft drinks, without
preservatives, and plus the anti-oxidant than any other types of
beverages.

Bottled tea brands also differentiate themselves by size and


type of container, and refrigeration at point of sale. PT. Suntory
Garuda Beverage’s market for Mytea consists of consumers of
single-serving-sized bottled beverages who are looking for a
healthy yet affordable alternative. “Healty” in this context means
low-calories, containing anti-oxidant and giving more benefits
than any other teas. This market includes traditional tea
consumers who are the food-lovers without fearing they will
have too many bad calories as well as the consumers who want

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an option other than plain water. Specific segments that PT.
Suntory Garuda Beverage will target during the first half-year
include restaurant consumers, food lovers, the health
conscious, and Millennials who like to try something different.

2.3. Market Demographics


The profile for the typical Mytea customer consists of the
following geographic, demographic, and behavior factors:

2.3.1. Geographics
 Kalimantan Barat is divided into twelve regencies and two
cities. With the total population around 4,477,348
population, I would like to focus the selling point in Sambas
regency, Sanggau regency, Kubu Raya regency, Ketapang
regency, and Pontianak city by 10 percent, and the other
regencies by at least 5 percent of sales.

Tabel Population in Kalimantan Barat by Regency/ City in 2011

Kabupaten/Kota L P L+P
(1) (2) (3) (4)
Kab. Sambas 247 083 254 066 501 149
Kab. Bengkayang 114 647 105 420 220 067
Kab. Landak 175 407 160 045 335 452
Kab. Pontianak 120 862 116 860 237 722
Kab. Sanggau 215 742 200 213 415 955
Kab. Ketapang 227 537 210 076 437 613
Kab. Sintang 191 824 179 498 371 322
Kab. Kapuas Hulu 115 958 111 109 227 067
Kab. Sekadau 95 175 88 928 184 103
Kab. Melawi 93 363 88 862 182 225
Kab. Kayong Utara 49 882 47 761 97 643
Kab. Kubu Raya 259 731 250 642 510 373
Kota Pontianak 283 529 282 327 565 856
Kota Singkawang 97 837 92 964 190 801
Kalimantan Barat 2 288 577 2 188 771 4 477 348

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Kalimantan Barat Map

2.3.2. Demographics
 There is an almost equal ratio between male and female
consumers. The data shows that there are 2,288,577 of
male and 2,188,771 of female.
 The target might start from ages 15-40, with 45% clustering
around those ages. The food lovers tend to be ages 17-30.
The Millenials tend to be ages 15-25. The health conscious
tend to be ages 31-40.
 The adult consumers who have a median personal income
of Rp 1.200.000-Rp 3.000.000.

2.3.3. Behavior Factors


 Consumers who like to have snacks during their spare
times.
 Consumers who realize the needs of healthy life-style.
 Consumers who mostly dine outside rather than having food
at home.
 Consumers who want to have the other preferences.

2.4. Market Needs

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Mytea is giving the new preference of the tea-based beverage
by launching the oolong tea, which is categorize as new
product in Indonesia, especially in Kalimantan Barat. And the
company seeks to deliver the following benefits that are
important to its customers:
 Weight Management: The polyphenol compound found in
oolong tea is very effective in controlling the metabolism of
fat in the body. It activates certain enzymes, thereby
enhancing the functions of fat cells in the body. It is
commonly believed that daily consumption of oolong tea can
reduce obesity. More widespread studies need to be done
on humans, but early studies are very promising. In one
animal study, mice that were given polyphenols in addition
to a high-fat and high-sugar diet still showed a decline in
overall body weight and fat index. Some earlier studies
actually showed that the caffeine content was the active
ingredient behind the weight loss, but it now appears to be
mainly due to polyphenols.
 Removal of harmful free radicals: The polyphenol
compound in oolong tea is also responsible for the removal
of free radicals in our body, because it functions as an
antioxidant and stimulates the behavior of other free radical
compounds in the body. Therefore, consuming daily doses
of oolong tea can help people from the potential harm that
these free-moving cells often pose to the human body,
including cancer, atherosclerosis, stroke, rheumatoid
arthritis, neurodegeneration, and diabetes. Any antioxidant
characteristic of food or drink is beneficial, but polyphenols
are particularly powerful antioxidants in oolong tea.
 Without preservative, highly sterilize, and taste better.

2.5. Market Trends


Mytea will distinguish itself by marketing products not
previously available to consumers, that is oolong tea. Though
the awareness of consumers have been built by showing the

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trend of consuming green tea, which is healthier and as another
option, beside soft-drink and other bottled water, oolong tea can
be considered as new. The new life style creates the demand
for more tea products. And tea-based beverages now are
contributing about 30%-40% in the market share. The market
trends are showing continued growth in all directions of drinking
tea, which is healthier yet affordable.

2.6. Market Growth


With the affordable price of healthy tea, now people are
considering to have tea after they ate the full-of-oil foods to
eliminate the bad calories. The life-style is changing now.
Besides the plain water, now the tea is also in the
consideration. Especially for the athletes or dietary consumers
who really pay attention on what they consume. It would be the
potential market for Mytea to grow. The growth statistics of tea-
based beverages now are 30%-40%. More and more people
are discovering the health benefits to drink the healthier
beverages.

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2.7. Product Review
PT. Suntory Garuda Beverage’s new line of
oolong tea – called MYTEA – offers the
following features:
 Single-serving-size, 330ml and 450ml, PET
recyclable bottles.
 All natural – no artificial flavors, colors, or
preservatives.
 Rich in antioxidants and contains
polyphenol compound – for the removal of
free radicals in our body
 Contained eczema which can give a
remarkable improvement in skin.
 Contained vital vitamins and minerals such
as calcium, manganese, copper, carotin,
selenium, and potassium, as well as
Vitamin A, B, C, E and K. Additionally, it
contains folic acid, niacin amide and other
detoxifying alkaloids.
 Formulated for those who are in dietary
period and care about what they consume.

2.8. Competitive Review


Bottled water was first pioneered by Aqua in 1973. And this was
followed by the emergence of tea bottles by PT. Sinar Sosro in
1974. After that, around 2000, the several of bottled beverage
began to appear with certain flavors, as a new option for the
consumer. And now, the bottled beverages have got bigger
market in Indonesia, included Kalimantan Barat. Currently, the
bottled beverages sales account for approximately 30%-40% of
the total bottled beverages market.

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The fragmentation of this category, combined with domination
by the market leaders, has created a severely competitive
environment. Although there is indirect competition posed by all
types of bottled water and even other types of beverages (soft
drinks, energy drinks, juices, teas), this competitive analysis
focuses on direct competition from enhanced water brands. For
the purposes of this analysis, enhanced water is bottled water
with additives that are intended to provide health and wellness
benefits. The most common additives include vitamins,
minerals (including electrolytes), and herbs. Most commonly,
enhanced waters are sweetened, flavored, and colored.

And now, the market now is filled by various types of tea.


Starting from jasmine tea, green tea, honey tea, black tea and
the newest, oolong tea. And all of them are enhanced by
various differentiations, starting by low-calories, sugar free, no
preservative, antioxidant. The types of the additional features
used create a point of differentiation.

Pricing for these products are consistent across brands and


varies by type of retail outlet, ranging from Rp 3.500,- to Rp
7.000,-, with some niche brands costing slightly more.
Key competitors to Mytea include the following:

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Teh botol Sosro is the first bottled tea in
Indonesia, launched in 1974. The botol Sosro is
the market leader in Indonesia, including
Kalimantan Barat. It can be found easily in the
retail stores and restaurants. And now, the botol
Sosro has made its varieties by the types of tea
and the sweetness level. It is known by the
tagline, which is “Apapun makanannya,
minumnya teh botol Sosro”. Therefore, the
company focuses its sales also in restaurants.
The botol Sosro also advertises its product by
emphasizing the sterilize tea, hygiene and can
be consumed by all ages. Available in 220ml
RGB (Returnable Glass Bottle), in 200ml, 250ml,
500ml and 1liter of Tetra Pack, 150ml of Pouch
pack returnable glass bottle. By seeing teh botol
Sosro is the market leader in Indonesia, it is
might be hard for the challenger to compete with
it. Besides, teh botol Sosro is known as the
legend of the tea. More notably, it outsells all
other bottled water brands, including the other
tea-based product lines.

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Nu green tea is the first green tea bottled in
Indonesia. Emerged in 2005, it would like to give the
additional tea taste besides the Jasmine tea. And
also because of the trend of drinking green tea
which is known good for health. As one of the
product line owned by PT. ABC President, Nu
Green Tea is using PET ASEPTIC Cold Filling
Technology to maintain the original flavor, sterile
results, superior taste and preservative free. It
makes the claim to be the first for Ready to Drink
PET plastic category. And now, Nu Green Tea is
available with three variants, they are Original in
330ml and 500ml, Honey Flavor in 330ml and
500ml, and Dates Longan 500ml. It also adds the
Vitamin C, Antioxidant, with natural identical honey,
dates, longans extract and rich in various flavors as
the additional features. Moreover, it has won four
times the TOP Brand Award since 2008 till 2011.
Therefore, Nu Green Tea is considered as the
second largest market share in green tea category.
The Coca Cola Company is best known for its
worldwide brand soft drink Coca Cola. And Coca
Cola also launched its tea-based beverage, that is
Frestea to aim the tea lover in Indonesia. Launched
in September 2005, however, the success of its
product cannot be compared to Teh Botol Sosro and
Nu Green Tea. Its promotion does not empahisize
on the additional benefits just like Nu Green Tea. It
relies on the big name of Coca Cola Company. And
usually, Frestea is placed in the Coca Cola
Refrigerant Selling Point. Frestea marketing part
also claimed that it has made the corporation among
well-known hotels, restaurants, café. However, the
strength point for Frestea is the seal sterilization,
price, aroma, flavor variance. Available in 220ml of
RGB, 200ml of Tetra Brick Aseptic, and 500ml of

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PET Bottle. The price is vary from Rp 3.000,- to Rp
6.000,-.
Over the decades, MAYORA group has grown to
become one of the recognized names in the Fast
Moving Consumer Goods Industry. And Mayora also
takes part in order to give the other references for
tea-based beverage, by launching Teh Pucuk
Harum, and best known by the cute caterpillar in the
advertising media. As its tagline “Teh Terbaik Ada
Di Pucuknya”, this product would like to highlight
that it is processed through the new tea leaf. The
additional feature such as it uses the AST
(Advanced Sterilizing Technology), which claimed it
can be stored until 1 year without adding any
preservative chemicals and real brewed which
assures that the taste is still fresh. Available in two
variants, the less sugar and original, in 350ml and
480ml. The price starts from Rp 4.000,- till Rp
6.000,-.

2.9. Channels and Logistics Review


Mytea will be distributed through an intermediaries or
independent distributor to a network. And medium-big
restaurants in Kalimantan Barat. And we will try to get into the
regencies area to promote this product. For the travellers, the
drivers, the food lovers, the Millenials in the regencies area.
These areas might be the right place to start selling our
product. And also, we will try to update the logistics in most
places, and monitor it. Therefore, we decided to put the
products into some retailers, they are:
 Small-medium grocery chains
 Food stores: Chains such as Padang restaurants, warung
lamongan, and other food stores.
 Gasoline station: Chains such as gasoline station in
Mempawah, Sambas, Singkawang and other places for the
travellers to stop by.

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3.0. SWOT Analysis
3.1. Strength
Mytea can rely on the following important strengths:
 The first oolong tea: It is the new variant of tea based
beverage, that is Oolong tea which is believed to have a
higher effect than the regular tea. Therefore, the benefits
could be the strength to compete in the tea beverage
market.

3.2. Weakness
 Limited budget: As it only focuses on the regional area,
Mytea’s budget might need quite much budget, since it
takes time to build the brand awareness to make it as the
consumers’ first choice or the complement of other tea
based beverage products.
 Lack of brand awareness: As an entirely new brand, Mytea
will enter the market with limited or no brand awareness.
Therefore, it could be very challenging to promote this
product into the market as the old competitors have existed
long time ago before launching.

3.3. Opportunity
 Growing market: Nowadays, the tea beverage market has
shown its incremental around 30 percent. It could be noted as
the promising business in nowadays market. Moreover, the
differentiation of Mytea which is composed of Oolong tea will
make it easier to grow.
 Health trends: Health trends can be valued as the life-style
now. Therefore, people are demanding the healthy product to
endorse their life because they aware of the healthy life style.
The emerging of Mytea could be one of their choices to have a
healthy life style.
 Focus on the sub-district: Mytea is considered as the new
product in the mature market. Thus, the marketing strategy is
switched to focus on the sub-districts or regencies. Not to

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mention that the regencies are lack of product selections hence
it could be the potential opportunity for Mytea.

3.4. Threat
 The bigger promotion by competitors: There might be an alert for
the competitors for the emergent product, such as Mytea.
Competitors might launch the similar product to defend their
market shares.

MYTEA SWOT
Strengths Weaknesses
The first oolong tea Limited budget
Lack of brand awareness
Opportunities Threats
Growing market The bigger promotion by
competitors
Health trends
Focus on the sub-district

4.0. Objectives and Issues


4.1. The First Quarter Objectives
During the first quarter on the market, Mytea aims to introduce
its product to the suburbs and districts area. Mytea will try to
achieve 5 percent share of the tea-based beverages market, or
approximately Rp 1,2million in sales. With an average retail
price of Rp 5.500,-, that equates with a sales goal of 223,868
bottles.

4.2. The Second Quarter Objectives


During the second quarter objectives, Mytea will still find a way
to promote its product and starting to slowly get into the city
market which has more population than the districts. The
second quarter objective is to double sales form the first
quarter.

4.3. Issues
In launching this new product, the main issue is the ability to
establish brand awareness and a meaningful brand image

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based on positioning that is relevant to target customer
segments. Mytea will invest in the promotion to accomplish
these goals and to spark word-of-mouth interactions, buzz
marketing by involving or creating opinion leaders. And the
probability that the product will be attacked by the market
leader, if we are doing the frontal promotion. And also the other
issues constantly monitor the sales and ensure the growth
strategy in the suburb.

5.0. Marketing Strategy


Mytea marketing strategy will involve developing a “more for the
same” positioning based on extra benefits for the price. The brand will
also establish channel differentiation, as it will be available in locations
where major competing brands are not. The primary target segment is
food-lovers. This segment is comprised of teens to adults. Mytea will
also focus specifically on the adult market. Subsets of this
generational segment include the health conscious and dietary
process.

5.1. Mission
This product exists to fulfill the demand for the Millenials and
health conscious. Mytea offers the different value from others.
With the new innovative product, Mytea will become the
accompaniment for the food lovers.

5.2. Positioning
Mytea will be positioned on an “Expect more” value proposition.
This will allow for differentiating the brand based on product
features (expect more natural ingredients), desirable benefits
(expect greater nutritional benefits). Marketing will focus on
communicating that Mytea is giving more than any competitors’
brand. New in preferences, and give customers much more for
the money through the benefits.

5.3. Product Strategy

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Mytea will be sold with all the features described in the Product
Review section. As awareness takes hold and retail availability
increases, Mytea will still keep promoting its product to expand
the market share, by stressing on the health aspect by
consuming Oolong Tea. Besides, the big event for certain
month will be part in the planning to gain the consumer
attention, such as Chinese New Year, which we know people
will buy soft drink or any beverages to serve the guests. It is a
very potential part to attract the consumers by promoting the
additional features. All aspects of the marketing mix will be
consistent with the brand.

5.4. Pricing
The national price of Mytea is Rp5.500,- for single 450ml bottle.
However, the cost in the every regency might be different
starting from Rp 500,- to Rp 1.500,- depending on the area
itself. However, we still will maintain to push the price not to
have a big difference with the original price.

5.5. Distribution Strategy


Based on the information presented in the Channels and
Logistics Review section, Mytea will employ a selective
distribution strategy with well-known regional grocers, health
and natural food stores, and fitness centers. This distribution
strategy will be executed through a network of independent
beverage distributors, as there are no other major brands of tea
based beverage following this strategy. PT. Suntory will try to
gain success for its core tea based beverage line using this
method. It also placed coolers with the brand logo in truly
unique venues such as foods, bottles – places that would
expose the brand to target customers. Then, this brand
expanded by getting contracts with retailers such as the
restaurants or café or food court. This same approach will be
taken with Mytea by starting small, then expanding into larger
chains.

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5.6. Marketing Communication Strategy
As one of the product line from PT. Suntory Garuda Beverage,
the marketing communication strategy for Mytea will not be
based on traditional mass-communication advertising.
Promotional resources for Mytea will focus on these areas:
 Trade promotions: Mytea’s success will rely on relationships
with retailers to create product availability. Primary
incentives to retailers will include point-of-purchase displays,
branded coolers, and volume incentives and contest. There
will be the combination between the push and pull marketing
strategy.
 Event marketing: The marketing promotion will be
scheduled based on the relevant event for each month or
the marketing program planned by the regional marketing
team.
 Online marketing: As the escalating numbers of internet
users, online marketing is becoming the preferable choice
because of its flexibility, low cost, and can reach more part

5.7. Marketing Research


Using research, we are identifying the specific features and
benefits that our target market segments value. Feedback from
market test, testimonials, and focus groups will help us the way
to offer Mytea in the appropriate place and time. We are also
measuring and analyzing customers’ attitude toward competing
brands. Brand awareness research will help us determine the
effectiveness and efficiency of our message and media. We
also will use it to study the geographical needs, so we can
make sure our product is needed in some geographical areas.

6.0. Action Programs


Month Action Details
January  January, Mytea will be Date : Around 13
introduced here and we January 2014 – 2

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would like to put it and February 2014
promote it as the new Location : Carrefour
choice for the Chinese New Matahari Pontianak,
Year. We will make a parcel Hypermart Pontianak,
or a gift package and offer Kaisar Pontianak, Mitra
discount for at least buying Anda Pontianak, and
two dozens because the the biggest
event is totally suitable for convenience stores in
this occasion, whereas a lot every sub-district.
of snacks and foods are
served and people need to
drink tea to neutralize the
bad chemicals and calories
they have been consumed.
And for the promotion area,
it will focus to the
supermarket or the sales
promotion. There will be
discount for 20% for the
second dozens for buying
Mytea product.
 And Mytea will start
introducing to like the
fanpage in social media
such as facebook.
February “Mytea Love You” program will Date : 10 Februari
be planned to aim the couple in 2014 – 15 Februari
the valentine day. We know that 2014
most couple are very aware of
this event, therefore, Mytea will
make a program buy 2 Mytea
will get a coupon for an
interesting merchandise. Then,
there will be a free photo booth
for a couple if they buy 4 bottles
(450ml) of Mytea.

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March There will be no special event Date : 24 Februari
for this month, but Mytea will try 2014 – 31 March 2014
to make this product available
for most of the retails especially
from the restaurants’
consumers. And every
purchase for buying minimum 4
Mytea in a restaurant, the
consumers will be given a
coupon for winning a great gift
from Mytea. The gift will be
worth for grand total Rp
10.000.000,- and will be valid till
June 2014. The assessment is
based from the highest
numbers of purchasing.
April There will be event for Date : 31 March 2014
Christian, Eastern Day. Mytea – 18 April 2014
will make a charity program by
donating Rp100,- for
purchasing Mytea. And Mytea
will keep promoting to buy the
product at least four to get a
coupon to win the prize in June
2014.
May  Vesak Day is predicted on Date : 28 April 2014
May, 15th, Mytea will -15 May 2014
participate in the Vesak Day
held in the famous temple in
Kalimantan Barat by
opening a booth for each
temple, because usually
they hold it by making an
event. Still Mytea will keep
promoting and reminding
the consumers about our

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final event that is the prize
which will be announced in
last June 2014.
 Mytea will give an incentive
for the retailers that can
reach the highest sales.
June Mytea will announce the winner Date : 27 June 2014 –
and create an event to 29 June 2014
introduce Mytea more.

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