Distribution Management [MKT625.

1] NSU Spring 2021

1. Jafflong tea brand in terms of value it is offering to its target segment (s).

Jafflong Classic tea brand slogan tag “Sip Positive”. That slogan encourages people to build a positive attitude towards their nature. The slogan
impacts a lot and also manipulates consumers' psychology during final purchasing decisions time.

Market segmentation Value it is offering

Psychological needs Offer High quality (export quality) tea
Ensure maximum health benefit health by offering Zero calorie, Zero
sugar-free tea.
Also offer Green Tea, Black tea, Flavored tea.
Economic benefits Charge lower comparatively competitors
Offer discounts for bulk amount purchase
Functional values Jaflong tea is available in both online and offline store
Jafflong tea export tea that means they maintain export quality which
is more acceptable in mass people.

Jafflong tea did their market segments from a psychological, economical, and functional value perspective. First, they select a logo which may
help to create a positive impression towards consumers mind. Secondly classified their products based on consumers need, and offer varieties of
size so that people can buy according to their needs and always available both online and offline store so that mass people can buy according to
their needs.

2. UNIQUE characteristics of Jafflong tea

In terms of Demography:
Overall tea demography market
In all areas, people drink tea. Chittagong, Dhaka areas people consumed more than 70% tea. The rest of the tea is consumed by other regional
areas.

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 Urban Area: 65% of people consumed tea in Urban area
Rural Area: 80% of people consumed tea in the rural area
Age group: 22-45 years old people consumed more tea
Education: educated and health concern people consume green tea and black tea. General people consume premium or classical tea
Income: higher income group people prefer premium quality tea
Average income group people prefer classic tea rather than the premium one.
Jafflong tea needs to concern that issues. Jafflong tea is more available in the urban area rather than in rural areas. Whether rural areas customers
rate is high. And mass people prefer classic one rather than premium or flavored one.
In Terms of Behavioral:
Usage rate -3-4 cups daily (average basis)
Tea demand rate-95.2 million KG
Selling rate- 12525kg sold (Jafflong tea)
Tea produced annually – 96.07 Kg
In Terms of Psychography:
Based on consumers psychology perspective Jafflong tea offer various size and price
Offer gold, premium, classic three-level of and categories of tea.
Also offer flavored, black tea, and green tea
Always looking for export quality tea which already Jafflong tea offered.

3. Distribution Strategy of Jafflong tea

Sensitivity: Internal
 Distribution Strategy
Take order
Jafflong tea first tries to gather market demand based on that they decide how much they supply internally and how much they supply into the
other country. Based on that they took internal and external orders. First of all, they don’t have their retailers so they followed some lengthy
distribution channels to sell their product to the final consumers.
Recheck the capacity level
After analyzing the market demand and the international market order Jafflong tea company check the capacity level does it capable to provide
the ordered supply on time or not.
Arrange shipment
After that, the team selects their shipment team. Does the shipment is done by an internal or external team.
Discuss with inventory management
After that, the management team discussed with their inventory management team (how much they allow for the local users and how much they
allow for the international market)
Packing
After discussed with the inventory management the team prepared for packaging. For the local market, the packaging style is different. and for
the export market, the packaging style is different.
Order processing
After that, the management team prepared for the disbursement of the product for delivery purposes.
Transportation and traffic management
For internal distribution purposes, the management of Jafflong tea uses their best transportation system which is more convenient and budget-
friendly.
Material management
After that, they send it to the wholesaler or the resellers

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 Warehousing
The resellers stock the Jafflong tea in their (resellers/whole-sellers) warehouse.
Reverse logistic
After that, the wholesaler's logistics team delivers it to the retailers or final consumers.
Proposed Strategy
Use their own distribution channel
It is true that whole sellers reduce Jafflong tea Ltd.'s Risks via purchasing a bulk amount of product. But in most cases, it reduces their overall
profit margin. Instead of that if Jafflong tea distributes the product by their own distribution channel they may earn more.
Online presence
In Bangladesh majority of the tea company has their own website even they offer their own original branded product. In that perspective, Jaflong
tea may offer an online service system by their own website. When they are more present on the online platform and offer free home delivery
and other services (at minimum purchase) they became more popular with both local and international customers. Because for product order
perspective they don’t need to rely on the other party. And the organization also assumes its actual market demand. Based on that they design
their product.
Open own retail shop
Most of the time Jafflong tea promote by a third party, as a result, most of the time there has a gap in between customers relationship with the
organizations. In that perspective on some super shop, they can open their own retail branch whether Jafflong may sell their own branded tea
directly.
When Jafflong directly handles that issue they can found many suggestions and ideas from their customers. Which they may implement later for
future growth perspective.
Reasons for change
If we concern the long-term perspective to open retail shops is mostly demandable for mass expansion. Because normal retailers kept all the tea
companies' products and sell based on their customer's requirements. Even the retailers didn’t push up Jafflong tea. If Jafflong tea open their own
retail shop it might be more beneficial if we concern long term perspective

Sensitivity: Internal
 Online presence helps to rectify consumer’s actual demand. When Jafflong tea sees that they had mass consumers demand locally and
internationally they design their inventory management like that they can fulfill the others demand.
When an organization uses its own distribution channel their overall cost might be reduced. Even they don’t have to depend on a third party
regarding distribution.

4. Developing a channel efficiency table/matrix

This is the process through which way Jafflong tea may enrich with their target consumers. An organization is successful only that time when
they invest their current revenue 20% of the money on their promotion style.
Channel efficiency factors Current budget Competitors budget Proposed budget

Marketing budget Approximate. 500K Approximate.2.5M Approximate. 1-1.5M

(Khatun,2019)
Advertising budget Approximate. 100K Approximate. 100-150K Approximate. 1.2M
(Khatun,2019)
Personal costs Approximate. 200K Approximate. 700K-1.2M Approximate. 500K
(Khatun,2019)
Time invested Approximate < 3 Approximate. 3-5 months Approximate. 3-6 months
months (depends on projects)
(Khatun,2019)
Content creation costs Approximate.50K-100K Approximate. 300-500K Approximate. 400-600K
(Khatun,2019)

Now business sustainability ensures by only doing mass promotion. Jafflong tea is more standardized and classified and offers varieties of
flavors and packages but very few people know about them. Jafflong tea believes that they maintain the best quality tea their quality is enough
for their promotions. Which concept is wrong. A person purchases a product only that time when they have clear knowledge and idea about the
product. Jafflong sales volume that not much satisfactory as Mirzapur Ispahani tea, blenders, zareen tea, etc. as a result Jafflong tea sales
volume, not a satisfactory level.
Channel efficiency is the process through which an organization can enjoy efficiency in their marketing sectors (like with minimum cost they
can grab mass consumer’s attention).

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 To enjoy channel efficiency purposes the experts always suggest usinga digital platform. Because this is the medium through which an
organization can enrich their target customers. It is true that their current marketing budget that not much at a satisfactory level if we compare it
with the competitors. Even their market position is very weak in that perspective we suggest some amount so that in the preliminary stage they
need to make a strong brand image towards the consumer's mind. In that perspective, they need to focus on both digital and traditional
promotion. The organization must need to promote its product in an aggressive way. To create a mass awareness perspective the organization
must need to develop a marketing team that always develops the marketing content, promotion strategy, and style. After doing mass promotion
Jafflong tea may start their promotion via a digital marketing system. When a customer always heard the Jafflong tea brands adds their
subconscious mind createsa positive attitude towards that brands. When they established a famous brand they can invest less amount that didn’t
impact much on their brands. After that, if the Jafflong tea shrinks their budget it didn’t impact much on their sales volume.

5. Developing a Service Gap Analysis

The current Gap in Jafflong tea
The knowledge gap
Jafflong tea produces varieties range of tea but their promotions are very limited. Because of lack of promotions majority of the people don’t
know about their brand's criteria especially their product attributes. Whether Mirjapur and other brands spend millions of taka for promotion
purposes jafflong teas marketing strategy is very weak. For that reason, customers have to lack knowledge about their brands.
The policy gap
There has a huge gap between customers' expectations and Jafflong tea’s customer service sectors. They even don’t know what are the
consumer's expectations. Because consumers never purchase products only based on product qualities. They purchase a product based on many
other factors among them right and proper promotion strategy is a must.
The delivery gap
Customers have purchased products when they get the promised service from that specified brands. But very few consumers know about their
brand's specifications. When consumers don’t aware of the product they never purchase it. Even in most cases, they dot appoint any of their
agents who may inform the consumers about their product attributes.
The communication gap
Proper advertisement is the process through which an organization creates relationships with its consumers. Proper communication is absent on
jafflong tea.

Sensitivity: Internal
 The customer gap
This is the most important part. It is true that Jafflong tea did proper market research and based on customers' demand they offer varieties range
of products.
Developing a service gap analysis table
Proposed idea Problem solving implementation of the Possible outcomes
strategy
360-degree customers view Eliminate knowledge and customer gap Via this way, Jafflong tea ltd can monitor
their customer’s attitude and expectations.
Based on that information they design their
product improvement through which way
they can improve.
Competitor benchmarking Reduce Policy gap When Jafflong analyze their competitor's
positions and strength part they easily
identify their lacking’s and develop
themselves so that they can create a strong
position in the market
Prioritized action plan The delivery gap These prioritized actions always value
consumers’ expectations. Based on their
expectations they design their service value.
When consumers get their expected service
the brand value automatically enhances.
Future-proofing Communication gap When Jafflong continuously communicates
with their customers they always try to
introduce something which is expected by the
consumers. When the consumers desired their
service and product they became loyal
customers.

References

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 1.Huda, K.,Karim, M.R. & Khan,R.(2012,September 11). An Empirical Study on Competitive Distribution Management of Tea Brands in
Bangladesh. Retrieved from

2.https://www.researchgate.net/publication/272805139_An_Empirical_Study_on_Competitive_Distribution_Management_of_Tea_Brands_in_B
angladesh
3. Khatun,A.(2019,August 5). Analysis of Marketing Strategies of Ispahani Tea Limited. Retrieved from
4. http://dspace.uiu.ac.bd/handle/52243/1281

5. http://www.orion-group.net/concern/2/1/jafflong-tea-company-ltd

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