Page 13 - CIMA OCS August 2018 Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

Thomas Fine Teas is based on a single site in Hightown, a large industrial town in the north of
Deeland. Deeland has a lengthy coastline with developed ports and borders several other
countries. The site has good transport links with other parts of the country allowing for the
efficient delivery of the product to the supermarkets and wholesalers.

We use an external logistics business for onward delivery of our teabags from our factory to
customers.
Thomas Fine Teas sells its products to supermarkets and wholesalers, no selling directly to the
end consumer, which allows us to build a relationship with the customer and tailor the product to
their needs without having to deal directly with thousands of individual consumers.

Moving forward, whilst the factory, warehouse and offices are no doubt close to a good labour
supply in Deeland, Thomas Fine Teas should consider economies of scale in production versus
extra distribution costs of being located in one place. A cost/ benefit analysis could be
undertaken to establish whether changes should be made in this respect. Aspects of our support
operations could potentially be moved from their centralised location.
Promotion
Promotion relates to how a business communicates with its customers. By understanding what
elements of the product is valued by the customer it can then use these as the focus of the
communication to promote the product and thus increase sales.
Promotion includes such things as advertising, sales promotions, direct selling and public relations
activities. Thomas Fine Teas has a strong brand reputation of providing high quality teas and
infusions. Our blends are renowned in the industry for their depth of flavour and smoothness.
We have traditionally targeted the end consumer through traditional marketing methods,
including television and media advertising.
Moving forward, as we recognise that demand for green tea and infusions is growing and these
are becoming particularly popular with the younger generations, we should be looking to
advertise in ways that will target these consumers more directly e.g. social media advertising,
building our own website and in general more of an online presence.

Not only will we want to make customers aware of new product lines, but also educate them
about how seriously we take our Corporate Social Responsibility. Increasingly, customers are
avoiding buying products that do not have ecological sustainability.

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