Module Code & Module Title

Brand Management

Assessment Weightage & Type

60% Individual Report

Year and Semester

2020-2021 Autumn

Student Name: Prakriti Karki

London Met ID:
College ID:
Assignment Due Date: December 9, 2021
Assignment Submission Date: December 9, 2021

Word Count: 2500

I confirm that I understand my coursework needs to be submitted online via Google

Classroom under the relevant module page before the deadline in order for my assignment to
be accepted and marked. I am fully aware that late submissions will be treated as non-
submission and a marks of zero will be awarded.
Contents

Executive Summary.........................................................................................................................3
1. Introduction..............................................................................................................................4
2. Company Profile......................................................................................................................4
2.1 Brand Profile.....................................................................................................................5
2.2 STP Analysis.....................................................................................................................5
2.3 Competitor Analysis.........................................................................................................6
2.4 Recent Trends...................................................................................................................7
3. Discussion on academic theory...............................................................................................8
3.1 Secondary Brand Association................................................................................................8
3.2 Relevant Theory (CBBE Theory)..........................................................................................9
4. Secondary Research Findings................................................................................................12
4.1 Rakura and People..........................................................................................................12
4.2 Rakura and Health...........................................................................................................12
4.3 Rakura and Environment................................................................................................13
4.4 Visibility in the market...................................................................................................13
4.5 Rakura in Foreign Market....................................................................................................13
5. Discussion..............................................................................................................................14
6. Conclusion.............................................................................................................................14
7. Recommendations..................................................................................................................15
References......................................................................................................................................16
Executive Summary

Rakura was the first tea company in the country to export its products. The company delivers the best tea
and has a strong relationship with the locals, as it employs over 1400 small farmers. Rakura teas were
introduced with design standards, raw materials, and teas that had never been seen in Nepal before, really
altering and reshaping the tea industry. Rakura offers a wide range of teas in a variety of flavors, from
traditional green tea to Himalayan tea. Rakura was founded in late December 2012 with the purpose of
raising global awareness of Nepalese tea via effective branding and marketing. People are getting
increasingly worried about their health and the environment all around the world. As a consequence,
because all of Rakura's products are healthy, they are best suited for the growing market. Thanks to client
feedback, Rakura has become synonymous with quality tea in Nepal, once again forging new ground in
the perception of our country's teas. It fosters communal development while simultaneously having a
positive impact on the environment. Rakura is dedicated to reaching the Nepalese tea aim. They research,
develop, and alter people's minds about Nepalese tea, as well as any other industry they work in.
1. Introduction

The purpose of this research is to evaluate how the brand has gained popularity among consumers and
what the brand can do to improve its brand recognition. Rakura teas were debuted with embracing
design standards, raw materials, and teas never seen before in Nepal, really transforming and
redefining tea business

2. Company Profile

Rakura is the result of a lifetime of discussions, ideals, and skills committed to Himalayan tea's
purpose and longevity. Mr. Ram Kumar Rathi, the firm's founder discovered the world of tea in China
in 1996 A.D. and was astounded by the richness of the tea, prompting him to study more about it.
Rakura envisioned as a brand that would encompass the finest tea brands in the country and promote
them around the globe. It is the first ever tea company in the country to be exported. With more than
1400 small farmers, the company provides the finest tea and has a great relationship with the people.
The company has been working on zero waste packaging since it started. It has exported its products
to various countries across Europe and Asia. It is yet to export to other countries. Rakura was
formally established in late December 2012 with the goal of increasing worldwide awareness of
Nepalese tea via proper branding and marketing.
2.1Brand Profile

Rakura provides a variety of teas in a variety of tastes, ranging from conventional green tea
to Himalayan tea. The packaging was also stated to be environmentally friendly and match
international food quality standards, according to the brand. As the company's motto "Drink
Health" clearly states, the brand offers healthy tea in a variety of flavors and alternatives,
and it is aimed at people who enjoy tea in general.

Nepal's first double chambered biodegradable tea bags, The Finest teas, World's Best Filter
paper and aluminum-wire, non-bleached thread, and food-grade tags, and Eco-friendly and
Freshness guaranteeing Packaging are all available from the brand.

2.2 STP Analysis

The brand is aimed at people from all backgrounds of life, particularly those who are health-
conscious or attempting to live a healthy lifestyle.

a. Segmentation

Consumers think about Rakura's market. They target their buyers' needs and wants
through using merchandise segmentation. They primarily categories behavior based on
 geography and demographics. Before promoting their products, they cover urban areas
and focus on income, age, and profession.

b. Targeting

Rakura's company is entirely geared toward families and professionals. Rakura focuses
on health-conscious people, students, and individuals who can make a decent living.
They also target price-conscious customers seeking healthy, low-cost alternatives.

c. Positioning

Rakura has already been providing low-cost, healthful products while still exceeding
consumer desires. Their quality of the product has facilitated the development of their
brand image in the marketplace.

2.3 Competitor Analysis

Brand Logo

Brand Name Rakura Tokla tea Red Label

Geographical Segment
Covers all regions, with a focus on
urban areas.

Demographic Segment
Segmented
While delivering the product, keep
Market income, age, and occupation in mind.
 Behavioral Segment
Customers are prioritized by
providing lower-cost services and
amenities.
Himalayan organic green tea, Tokla Gold, Tokla rich tea Red label Natural care cardamom,
Himalayan organic earl grey, bags, Tokla Green Tea, Tokla ginger, Red label Tea box, Red label
Offerings Himalayan organic light green tea, Masala Tea pouch tulsi
Rakura Himalayan Green Tea +
Natural Lemon & Honey

Points of
Parity

Point of
Difference

2.4 Recent Trends

Recently intensification of voices by the Indian tea Industry to pressure the Government of India
to block all imports of tea from Nepal. Establishment of non-tariff-based trade barriers by the
government of India on Nepalese teas. Green tea has been gaining popularity among younger
urban residents. Rakura offering 18 different packages with 11 different tea varietals, including
both loose teas and tea bags. People all across the world are becoming increasingly concerned
about their health and the environment. As a result, Rakura’s products are best suited for the
rising market because all of their products are nutritious. (nepaleconomicforum, 2021)

Recent reviews on Rakura tea

 Positive review of Rakura Negative review of Rakura

3. Discussion on academic theory

3.1 Secondary Brand Association

One such way is to use secondary brand associations, which involves attaching your brand's
reputation to another entity's image to a certain level. By establishing a link between the two, the
brand effectively adopts features of the other's identity in the minds of its target audience.
(alexonmarketing, 2021)

a.  Companies 
A corporation is a separate legal entity founded by a group of people to engage in and operate a
commercial or industrial business. Depending on the corporate law of the jurisdiction, a firm can
be constituted in a variety of ways for tax and financial liability considerations. (investopedia,
2021)

Rakura's facility is in Haldibari, Kathmandu, and the company markets its products through
numerous middlemen, offering a wide range of tea items to its customers.

Rakura has grown their brand value by advertising their items under their corporate name.

b. Channel of distribution
 A distribution channel is a network of firms or intermediaries that a product or service flows
through before reaching the final customer or end user. Wholesalers, merchants, distributors, as
well as the internet are all possible distribution channels.

International market

Already available on Amazon, the company is eyeing the large supermarket chain stores like
Sainsbury’s and Wipro.  Rakura tea is available in the Philippines, UK, China, Hong Kong, and
the US. “We are in talks with Australia and planning to enter India this year.

National market

In terms of sales, brand recognition, and speciality tea. Rakura tea is used in all of Kathmandu's
major hotels, including the Hyatt, Annapurna, Yak and Yeti, Radisson, and Marriott. Rakura is
distributed to local vendors as well as supermarkets.

3.2 Relevant Theory (CBBE Theory)

Keller's brand equity model, also known as the Customer Based Brand Equity (CBBE)
model, demonstrates how a company's performance influences its customers' perceptions of
it. As a result, this approach explains how to increase brand equity by first understanding
about your consumers and then executing solutions that are tailored to their requirements.
This helps the brand to know which strategy works well and how the company can provide
the best experience to their customers the CBBE model, helps companies choose which
strategies to employ and how to provide the ideal experiences to their target audiences in
order to generate the WOW factor. Keller's Brand Equity Model is remarkable in that it tells
a brand which stage it is in and what it can do to go up the stage. Ultimately, it supports
brands in establishing brand equity. The Brand equity pyramid has several levels, and
progressing from one to the next might take years.

LEVEL 1: BRAND IDENTITY (Who are you?)

A customer's perception of a brand and how it differs from others is referred to as brand
identity. Simply defined, it is indeed how a company presents itself to its consumers. When
clients are uninformed of the items, brand identity is formed. As a result, a company should
make a concerted effort to establish a strong brand identity in order to benefit itself and
attract a large number of customers. The first and most critical phase in the brand equity
pyramid is to develop a brand identity. The pyramid will be stronger if the foundation is
robust. As a result, for a brand to be powerful and successful, its foundation, or brand
identity, must be robust.

LEVEL 2: BRAND MEANING (What are you?)

When a customer learns about a brand, usually wants to learn more about it. they want to
know if the brand is dependable, if it is excellent to use over a long period of time, and if it
has good customer service, among other aspects. The consumer is discovering about the
brand and wants to learn more about it.

- Brand Performance

Customers value a brand's performance since it encompasses the product's features,

functionality, dependability, style and design, customer service, and price, all of which
influence consumer happiness.
- Brand Imagery

This demonstrates if the brand is addressing the customer's social and psychological
demands. How a brand is portrayed in the marketplace is determined by its brand image. In
the perspective of the client, what does the brand represent? If the brand were a human, how
would the client perceive it? Is he of the opinion that the Brand is tough or soft? The brand
may develop a strong brand image through targeted marketing and term.

LEVEL 3: BRAND RESPONSE (What about you?)

When a customer purchases the goods, they develop expectations for the brand and the
transaction. If reality fulfills their expectations, the consumer is delighted and gets a
favorable impression of the brand. If a product exceeds expectations, it produces a lot of buzz
and may even transform a buyer into a brand booster. Customers' thoughts are filled with
"Feelings" as a result of such great situations. If a consumer makes an unfavorable judgment,
the brand should respond graciously and develop good sentiments for the customer.

LEVEL 4: BRAND RESONANCE (What about you and me?)

A brand develops brand resonance when it thoroughly satisfies its clients in all respects. This
is a challenging level to reach since there is a strong social and psychological bond between
the brand and the client. Simply ask customers if they are content with the brand and its
products, and if they would suggest those items to others, to determine brand resonance.
Brand resonance is determined by elements such as behavior, values, and attitude, consumer
engagement, connection, and sentiments.
4. Secondary Research Findings

4.1 Rakura and People

The brand has been developing positive relationships with its customers. It emphasizes that
not only attracting people is crucial, but also appreciating and developing them so that they
may attain their maximum potential through improving their and their family' lives. They've
got to do a lot of studying. Customers' feedback has aided them in experimenting, learning,
and so well their products to meet their needs. Rakura has become synonymous with
premium tea in Nepal, breaking new ground in the view of our country's teas once again,
thanks to feedback from customers. They have been working on to ensure the wellbeing of
their people as well. That includes the topics like Encourage fair recruitment and
employment practices. Increasing diversity awareness and appreciating differences. Women's
empowerment should be promoted. Support the freedom to free association and collective
bargaining. Encourage good health and safety. Anti-discrimination and anti-child labor
campaign. Take full advantage of industry-leading pay and benefits.

4.2 Rakura and Health

Rakura has promoted the health benefits of tea under the slogan "Drink Health." Because tea
was previously regarded as harmful, it has produced a big shift in how people approach their
tea now. Many individuals in Nepal and throughout the world have already made tea a
regular part of their lives, and this trend will only continue as more study is conducted. Tea
consumption has been linked to a lower risk of cancer, heart disease, and diabetes, according
to research. Additionally, it promotes weight reduction, lowers cholesterol, and improves
mental alertness. Rakura appears to offer antibacterial and immune system-boosting
properties, ensuring overall health.

4.3 Rakura and Environment

Nepal produces some of the world's finest teas, which have traditionally been mixed with
other better teas or marketed alone as a high-end product. This strategy has deprived
Nepalese tea producers of a fair price and, more crucially, their rightful brand value.
Nepalese teas lack the global brand recognition that other tea-producing countries have,
owing to a lack of support and resources. This is when, Rakura enters the picture. A concept
and a brand that incorporates Nepal's best teas while also working to promote and increase
global respect for Nepalese tea. It promotes community development while also creating
constructive environmental influences. They embrace the social acceptance and support
human service as well.

4.4 Visibility in the market

The first thing they do is radically affect the Nepalese tea experience. Rakura saw that teas in
Nepal were either marketed as unbranded loose novelty gift items or as a branded product
made with inferior raw ingredients. As a result, in order to keep up with some huge
worldwide companies, they create plenty of fascinating items that consumers all over the
world would want to take home on a regular basis. They seek to establish a brand that
typifies Nepalese tea and competes with the greatest teas in the world, from the sense of
value to hand-selected teas within each Rakura product, to the standard and function of
packaging, as well as the use of cutting-edge technology. Every time they come out with a
new product; they raise the bar.

4.5 Rakura in Foreign Market

Rakura are rather tall. They have formed strategic agreements with other superior tea-
producing facilities in addition to handpicking just the finest teas. This aids in the selection of
the best teas for a well-balanced Nepalese tea blend. They have climate-controlled packing
units, cutting-edge packaging technology, and the most up-to-date hygiene and food safety
requirements, all of which contribute to serving the freshest teas available. They have made it
a point to employ the world's best and most environmentally friendly packaging materials to
create not just a pretty but also an useful box. Overall, every part of the Nepalese tea
experience, from unwrapping the box to the flavor striking the tongue and then sipping the
flavorful brew, has been carefully examined to provide Nepal's greatest tea product ever.
According to the Managing Director, “Today’s competition isn't only with local businesses;
we're up against the best teas from across the world.”

5. Discussion

Rakura's official website is still not updated since 2016, therefore hasn't been very
comprehensive.  Rakura is unconcerned with social brand linkage. Rakura is denying the fact
that they too require digital marketing to increase their business. They are still unable to
organize consumer interactions. Rakura's brand image will suffer as a result. They seem to be
unable to perform co-branding, which ensures better product sales. Rakura is struggling to
secure celebrity endorsements, resulting in a lack of advertising that will assist in reducing
Rakura sales.
According to the research, Rakura is still a long way from receiving honors.

6. Conclusion

Rakura is the first Nepalese tea brand to export tea to other nations. The brand had
effectively built a brand and gained consumer support throughout the years. Rakura is on its
way to becoming the top tea brand not just nationally, but also worldwide, by offering
healthy, high-quality tea to its clients. The firm has a bright future in the tea industry since it
has been supplying high-quality teas in a variety of flavors and employing cutting-edge
technology. Rakura is committed to achieving the goal for Nepalese tea. They study,
innovate, and change people's perceptions about Nepalese tea, as well as every other area
they enter. Rakura has raised the profile of Nepali industry, the country as a whole, and, most
importantly, has developed a tea that has impressed people all over the world.
 7. Recommendations
Co-branding: Co-branding is a marketing technique that involves a strategic collaboration
and the use of numerous brand names on a product or service. (.investopedia, 2021)Co-
branding allows you to combine market power and good associations. Rakura is unable to
participate in the co-branding effort. Rakura is having trouble growing in popularity because
there is no co-branding. According to the data, they are not interested in doing co-branding
anytime soon.

Sponsorship: 

References

.investopedia, 2021. investopedia. [Online]

Available at: https://www.investopedia.com/terms/c/cobranding.asp
[Accessed 2021].
alexonmarketing, 2021. alexonmarketing. [Online]
Available at: https://alexonmarketing.com/secondary-brand-associations-leveraging-and-types/
[Accessed 2021].
investopedia, 2021. investopedia. [Online]
Available at: https://www.investopedia.com/terms/c/company.asp
[Accessed 2021].
nepaleconomicforum, 2021. nepaleconomicforum. [Online]
Available at: https://nepaleconomicforum.org/neftake/expert-speak-tea-industry/
[Accessed 2021].