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Overview of expansion strategy

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Barrys Tea Global Business Strategy An Investigation Into Global Business Strategy and Online Presence for Barrys Tea in Canada and AustraliaIntroduction: Josh1Agenda Meet the TeamBarrys TodayMarket Overview CanadaMarket Overview AustraliaMajor RetailersCompetitorsProposed StrategyOnline PresenceRecommendationsSummary

Font size2The Team

John ONeillContracts Manager at Norland

Josh Deats Territory Manager at VmwareCraig Knott Technical Support at VoxproAlec OConnell Application Support Analyst at Musgraveamonn CaoimhTechnical Contract Manager at GEDelete dashes3Barrys Tea Current overview40 % of Irish marketValue of Irish Market 78 MillionOver 100 Years of R and DIncreased CompetitionPlateau

Currently doing well in IrelandHave had success in the USS that was down to luckA more aggressive strategy perhaps?4Market Overview - CanadaThe population of Canada is 35,540,000 people.(86.2%) of people in Canada lived in Ontario, Quebec, British Columbia, and Alberta.Canada has a growing disposable income and growing salary.

Irish population in Canada is negligible (20,000)The population of Toronto alone is around half of Ireland

5Market Overview - Canada

More than 27 million people live in dense urban areas

6Market Overview Size of Canadian Tea MarketCanadian tea market is worth approx 302.8 million.Specialty teas accounted for 90 million Regular tea bags (73 % tonnage) Canadian tea consumption is expected to Grow by 40% by 2020

Specialty tea is gaining popularityOntario dominates as biggest consumer

7Market Overview AustraliaTotal population of Australia 23 MillionAustralia is showing a decline in disposable incomeAustralia has a lower growth of urbanization17,000 KM from IrelandEast Coast of Australia maintains most of the population Dropping disposable income since 2008

Sydney, Melbourne and Brisbane hold over half of entire population and highest urban density.Increased cost of living

8Market Overview Size of Australian Tea MarketAustralian tea market is valued at or 320 millionMarket is dominated by black and green teaEstimated growth of tea market at 5%Similar Trends to Canada as per tea type

Market Overview - Major PlayersCanadaMassive Market ReachOver 1000 stores in CanadaInnovative and flexible

AustraliaLargest retailers in AustraliaBarrys has existing presence in over 600 stores

Online

50/50 split between with Amazon in sales

John ONeill at this point, I will introduce you and if you could give insight into main shops, and general reach of online presence perhaps mentioning the 50/50k splitMention size of Loblaw's (over 1 k stores) and the different stores they own and operate. No bias at this pointSpeak regarding Amazon and bla bla about the online tea shop and apps barrys have at the momentEmphasize the amount of stores loblaws controls and perhaps open the floor a little bit10Market Overview Canada/Australia/Online CompetitorsAustralia Competitors

Canadian CompetitorsOnline Competitors

John again, go over competitionMention the change to healthy tea brandsMention how Canada doesnt like Chinese brandsOpen up global contextHand back to Josh for overview11Canada/Australia Comparison

New twelve12Canada Proposed Market40% projected growth by 2020 in consumptionMarket projected growth 35% higher than AustraliaCanada ranked as 7th easiest place for doing business globallyOntario has highest population, urban density and constitutes over 40% of the population

Ontario distribution network, infrastructure and US proximity makes it a prime location to launch a campaign13Canada Proposed MarketHigh exposure and advantages to border proximity (USA) 200KMDistance from IrelandToronto population is over 2.53 million, half the population of Ireland in one City!

Over 90% of adult population online

14Canada The Clear Choice

Josh Beat Canada inReacting to marketCost of TravelProximity and market responsivenessAccess to the US15Proposed Strategy for EntryFocus on Canada due to explosive growth forecast and economic stability.Targeting major retailers through the use of professional sales developer with experience in market entryDirect shipment Port HopeHiring Canadian business development manager with distinct KPIs and reporting structure to gain business insight and allow for customer response. Establish base office in TorontoIntegrate all above points with an expanded online strategy that is traceable through a CRM systemSpecific focus on Ontario due to high population, demographics and urbanization, particular entry points such as Toronto, Using Black Tea and emerging blends for introduction to marketPossible need for re-brand due to competitors using similar packaging (Red Rose)

Loblaw major retailerReword point 816Proposed Strategy - Ontario

Leveraging the experience to scale out to more domains and increase market shareAligning with eCommerce methods to grow a consistent and global brandNote: Loblaw as locations on map below, alignment with urban density17Proposed Strategy - Ontario

Selling into large accounts for (Major Retailers) by use of strategic presentations, gaining shelf space18Proposed Strategy - BrandingQualityDiaspora is an element however the risk of isolation from a broader market is real72 box in Canada is the standardBlending to suit the Canadian taste may need to be addressed

A focus on Marketing the Decaf, Black and Green Tea starting in Ontario (Toronto)Packaging will need to be addressed Red Rose and Barrys are identical with red rose offering similar to Barrys

19Proposed Strategy - LogisticsDirect distribution through Loblaw's into TorontoDelivery to Toronto Port for ease of distributionMassive advantage to distribute to the US with border proximity or consolidate logistics effortResponse time to customer needs

Transport to Australia reduces shelf life of product due to time constraintsResponse time to customer needsOffice branch with possible storage facilities

20Resource ImplicationsManagerial buy in and willingness to changeAvailable personnel and new personnel that fit and align with the culture and strategyTimeRaw costsAdaptability Change in company cultureAppetite for riskControl

Eamonn Implications on production, people, culture, finance21The People Candidate for Growth

Professional sales and marketing person with experience in FMCG and market entry Tea familiarBe held accountable with KPI and performance structure. If you think hiring a professional is expensive, try and hire an amateur

Richard Bransons version of the 4Ps:People, people, people, peopleHiring the right candidate is absolutely mission critical

22Advantages of ApproachMaintaining control of brand and having access to direct market dataAccess to consumers in a dense urban market with high pending capacityBroader reach that extends further than the diasporaIncreased pressure on competitionSuccess that can be brought homeLower RiskCost effective exit strategyLess up front investment than subsidiary

If you want to grow sales beyond a certain level, you need someone on the ground to look after that market. Enterprise Ireland on Developing New Markets23Online Market Overview - CanadaTo hit 26 Billion for sales in 2018!Most online nation on the planetOver 90% are online51% of Canadian internet users made online purchases in 2010Over 45 hours per month onlineAverage online spend over 910 for those who shop.

Speak about online presence being part of a broader strategy24Online Presence - Now

Josh25Online Presence - NowAlready improved since first visit! Proving effectiveness and flexibility with campaigning.Need to add list of domains for SEOPromote in Canada and create Canadian LinkedIn pageRecognise threat www.barrystea.comCompliment the shelves, keep engaging and leverage momentumSuccess factorsCorrelation between fans and Adwords campaign

Josh26SummaryA focused coherent and consolidated approach with buy-in from the top and a willingness to change and adapt Realise the necessary investment in resources from a time, revenue, risk, people and process perspective needs to be realised. Canada is a prime, open and workableOur research suggests entrance through Major Retailers as an exporter and the use of ground leverage would assist in launching a successful campaign

27Thank You - Questions