Page 11 - CIMA OCS August 2018 Day 1 Suggested Solutions
P. 11
SUGGESTED SOLUTIONS
Opportunities Threats
• Opportunity to target the green tea • Damage to brand if fail to release enough
market with different flavours as new products (TFT used to be at the
consumers become more health forefront of market development)
conscious. • TFT accounts for approx. 16.5% by
• Opportunity to target the infusion volume of the green tea market in
market with a wider variety of flavours, Deeland. This compares to 25% for
promoting the health benefits/medicinal green tea five years ago. Decline is due
qualities of the powerful antioxidants in to lack of new product development.
the leaves used. • TFT currently accounts for only 5% of the
• Demand for green tea and infusions will infusions market in Deeland; it was 20%
grow at around 5-6% a year for the five years ago. Decline is due to the
foreseeable future. limited flavour combinations currently
• Green tea and infusions are becoming available.
particularly popular with the younger • Threat of publication of the TFT’s secret
generations and those people trying to recipes - the company’s trade secret.
live a healthier lifestyle. • Customers generally more aware of the
• The market for green teas and infusions environmental aspect of food miles and
is particularly buoyant in the summer are increasingly seeking locally sourced
months. products.
• Growth in the market for unblended teas • Increasing numbers of consumers are
(both black and green), typically sold concerned about the provenance and
loose leaf rather than in tea bags. purity of the products that they eat and
• Opportunity to sign up to direct supply drink. This has part fuelled the growth in
agreements with tea blenders. demand for loose leaf teas, as opposed
• Development of new blends, in particular to tea bag.
infusions. • Tea plantation disease is on the increase.
• Forging connections with new tea • Tea bought at auction, so risk re quality,
plantations. quantity and price of supply.
• Sell direct to small convenience stores • Power of customers – either demanding
and/or consumers? lower prices and/or delaying payment.
• Grow tea? • Receivables management.
• Buy Butler?
• Look to sell to more supermarkets
outside Deeland?
• Develop new products e.g. loose-leaf
unblended tea?
KAPLAN PUBLISHING 53
