Bang of Business - Essay Example

The most well known brands of tea in Kazakhstani market are “Assam”-known by 88% of consumers of tea and different brands of Russian Sapsan Company (“Princess Nuri, Kandi, Gitta) (Appendix-Table 1). But looking at the usage of tea Kazakhstani consumers do not prefer the brands of Sapsan Company, but “Assam”-77%, Lipton-41% and Piala-36% (Appendix-Table 2). It means that “Piala” tea has some priority and meaning in consumers’ tastes. But why do consumers buy “Piala” tea brand? There are some factors that influence consumer buyer behavior.

First of all, it’s a culture. For Kazakhstani people tea procedure is the old tradition of their grandfathers- and grandmothers-nomads. People drank tea not only for vitality and refreshing of body, but also during tea procedure there were solving significant questions of every deal. That is why today time for drinking tea is very respected (nobody will interrupt), serious and usual procedure of almost every inhabitant of Kazakhstan. The tea had been drunk by piala-special Kazakh’s traditional dish for tea. The brand “Piala” makes sound in people’s minds.

Second is subculture. The advertising of “Piala” tea was presented in kazakh language at 1st time and in form of kazakh history time when kazakhs lived in fields in urtas, that is why kazakh nationality is motivated by this. Then, it is the family. Kazakhstani families are not small, 2-4 children in most, where the older people are in huge respect. They have strong influence on buyer behavior. Lifestyle. The most constant user of tea is “families”-people who have family and “healthy fighters”-mostly old retired people who are really caring of their health.

The advertising strategy of “piala” tea is directly based on families and old people. The last is brand personality. “Piala” is associated with the calmness and if you want to calm yourself -taste “Piala” tea (advertising). Segmentation of the market of “Piala” tea In order to find the best way to view the market structure of tea market in Kazakhstan the marketers of RG Brands Company have to try different segmentation variables, know what people look for in the product and so on. In the Kazakhstan market there are lots of various tea brands, and a competition is very rigid.

Consumption of tea by inhabitants of Kazakhstan one of the highest in the world – 1,2 kgs a year per every person. For comparison: in India it makes only 650 gr per capita. But recently the tendency is observed to some decrease in consumption of tea because the part of young generation prefers alternative drinks like Pepsi, lemonades, and coffee. Taking into account this tendency and the increased competition, it’s easy to guess, that the company can work successfully in the market only if offering very qualitative and various production.

Looking at the Customer’s value Table we can see that “Assam” tea has a few advantages over “Piala” brand. “Piala” tea brand in 2003 was in the top ten list of large advertisers among Kazakhstani brands and in the list of 50 biggest advertisers in the Kyrgyzstan TV. Nowadays for the year 2004 I cannot find any advertising of this brand. However the TV is fulfilling by Assam tea brand. Assam tea is making good marketing strategy like every 1 tenge from each sold box of Assam tea goes to the charity or if you buy Assam tea you can win 100/200/500/1000 tenge banknotes.

I suggest to the RG Brands Company make something similar to the Assam tea brand. They can create some kind of lottery, so if you buy a box of Piala tea you can win different kinds of electronic techniques or car. It might be done by erasing the loose leaf on the package of the tea. Another way to increase the attention of consumers to the brand and its profits is producing tea with fruit additives such as strawberry, cherry, apple, burberry and other kinds of fruits under the same brand. Fruit tea can be packaged in teabags. In my opinion it will attract young people.