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alternative courses of action

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Dilmah Tea already has a large market share within the Australian market with 13.9% of value. (Retail World 2010) They are a trusted household name with an established brand. Following the trend of positioning its Ceylon tea as a quality product, (Sharp 2013) Dilmah should look at some of the recent trends within the food and beverage industry in Australia. As already mentioned, Australian culture has adopted a European style of beverage consumption, with café’s and coffee shops becoming ever more popular. In an article for the Sydney Morning Herald from 2010, Danny Rose reported that Australian’s were spending over AUD $1.2 Billion on coffee and tea alone, with tea making up around $452 Million of the sum. On a poll of Australians aged 15-49 only 16% of caffeine intake was from tea, with coffee taking over 50%. (Australian Beverages 2013) But how can Dilmah, with their Ceylon tea increase its market share? The two highlighted courses of action are;

1. Opening a Concept Retail Location
In line with Dilmah’s current online store Real tea boutique, Dilmah could explore the idea of opening a retail/café style store, which would not only increase brand awareness and drive sales; it could open up a new opportunity in the service industry. It would provide a more social way to experience and purchase tea, much like how café style coffee is commonly consumed. The store could concentrate on introducing different blends of the Ceylon tea while still ensuring that the Sri Lankan heritage of the tea is easily recognized. This would be one of the most important aspects as Sharp mentions that when Dilmah was first repositioned as a quality retail brand that there was an “absence of any distinct brand that could be directly identified with the country of origin.” (Sharp 2013, p. 507) An Australian brand, which first opened in 1998 named t2 has shot into prominence over the last few years, with many consumers enjoying their different flavored... Show More

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