Marketing Research

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The purpose of this research is to identify whether Dilmah should continue the current campaign or modify the campaign. The result from the secondary research and primary qantative research show the total black tea sales has great increased about 13% from 2008 – 2009 which is a fantastic result in the world economic recession period of time. Dilmah has market share of 29% which is the highest share of one brand.

Dilmah target customer is traditional family and age is from middle to mature group. The Larry report says their customers are satisiftied with the freshest and finest tea quality and consumers agreed Dilmah has achieved the goal of tea quality. The main tea market are in Auckland 51% in 2009, Wellington and Canterburry.

From primary research findings, female has higher purchasing tea percentage than male and the age group is 36 and more.

People who are employeed as income earner less than 20 hours is recall seeing the TV advertising.

Dilmah doesn’t have the top of mind brand awareness for the age group 36-45 but it is mostly recognized by the age group 26-35.

Dilmah issues

Bell is a very strong competitetor of Dilmah in black tea market as they have a very close market share percentages over years from 2005 to 2009. Bell is more reconigized at the age group of 35 – 46 by 94% (193) but the age group of 18 – 25 and 46 and over still have 67% and 61% top of mind brand awareness for Bell. The 58% of age group 26 – 35 has top of mind brand awareness for Dilmah and the 33% of age group 18 – 25 has top of mind brand awareness for Dilmah.

59% of male and 64% female all reconigized Bell but 39% male and 13% female know Dilmah as top of mind brandawareness. 66% of less 20 hrs knows Bell but 15% knows Dilmah. 61% of non employeed knows Dilmah…but which they might not be the main group who purchase tea normally in the household. 32% of 35 – 46 who purchased tea

Be to café last 4 weeks:
Female purchased tea more $704,000 and is about 4 times than male $188,000 at sales.

Top main 3 group purchase tea 40 – 44, 45 – 49 and 70 and over


Who bought tea last 4 months:
* 2 main group:64% of traditional family (middle to mature age with stable income and family oriented and traditional value) and 41% visible achievers and they have very similar family values

Who purchased tea last 3 months
* 36 – 45 and 46 and over for bell (29% of interviewers purchased Bell Tea) * 26 – 35 and 36 – 45 for Dilmah (30% of interviewer purchased Dilmah) * 25% purchased Twinings

The market trend to drink black has started from 2007 because the black tea sale.

The total black sale of 2005 to 2009 has increased steadily which presented the successful of the media and publicity from the secondary data findings. The result shows that those three major brands Dilmah, Bell and Twinings are invested into the most effective forms of media at the past three to four years.

Dilmah media expenditure has always been the highest in TV advertising from 2005 – 2008 ( 67% to 91% of Dilmah total expenditure of media) apart from 2009 comparing to the major three tea brands. Bell, the second tea brand spent the most amount of money in TV advertisement at 2009 which showed the result of the total tea sale was the only one brand has had increases sales from 2008 to 2009 about few percentages. Dilmah reduced the spending for TV advertisement about 23% which has slightly reduced the tea sales about little percentage but Dilmah is still No.1 of black tea market.

As a result, Dilmah has been always focusing on the right media form for advertising their product and has been successful on the result of sales and market share. Nevertheless, Dilmah still lacks the brand awareness as it shows in the primary / qanatative research findings that Dilmah did not come to “Top of mind brand awareness” and Bell was the first tea brand comes to their mind. 62% of interviewers chose Bell and only 22% of...
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