Executive Summary
Analysis of the Macro and Micro environment of the business is essential for any company to understand where the company stands, where it is heading and how to strategically plan its direction. The span of this assignment was covered by analyzing the issues and challenges the company is facing at present, conducting a micro and macro environmental analysis, competitor analysis, analysis of marketing objectives and strategies, 4 Ps analysis, understanding of tactical plan and budgets and objectives. As Kotagala Plantations is having the intention of developing their green tea and herbal tea ranges, they are interested in identifying the future growth opportunities and the key factors that customers may consider when making the purchase decision. Both primary and secondary data have been used for this marketing plan in understanding the micro and macro environment and marketing strategies.

1.0 Company Overview

Kotagala Plantation PLC is a well known Sri Lankan tea products manufacturing company which has diversified not only in to tea, but also in rubber and palm oil production with Lankem Group. The tea segment of Kotagala Plantation Company own more than 2,500 hectares in high grown country and low grown country.

1.1 Key Problems Addressed in the Marketing Plan
Sri Lankan tea industry has started to face various challenges in the past few decades, even though tea industry has been one of the main income generating sectors in the Sri Lankan economy. The lack of rain fall can be identified as of the main challenges that the industry faces. According to central bank annual report, 2016/17, this uncertain weather setting and relatively small rainfall compared to past few decades has been affected to have a reduced tea crop. As a result of this reduced rain fall, Sri Lankan tea crop has been abridged by 11%. These issues have led Kotagala Plantations to achieve only 72% of the forecasted target in high grown country. Further, in low grown country, the achieved target is only 77% from the forecasted amount.
Further, indecisive trading environment of the key tea importing nations has resulted to diminish the selling charge of “Sri Lankan tea”. The revenue of Kotagala Plantation has declined from Rs 2,375Mn to Rs 2,368 Mn in the 2016/17 financial year. Further, the contentious ban of Russia for “Sri Lankan tea” has also been harmfully impacted on the Sri Lankan tea industry revenue.
Due to this current vagueness of the Sri Lankan tea industry, tea producers have to find substitute options to develop the sales of tea. Further, these manufacturers should concern on adding value to the process of tea manufacturing and distribution and improve its quality rather than only focusing on bulk exportation; which means that quality is more important than quantity.
Even though it was forecasted that the new health conscious generation will increase the demand for green tea and open new opportunities to expand, the reality of the green tea and herbal tea demand was not as to the expected level. Sri Lankan tea producers are not strategically using the opportunities raise due to this social trend of health consciousness to grow the market share for green tea and herbal tea. Further, market surveys have proven that the customers have lost the faith in Sri Lankan tea as some of the exporters have been exporting low quality tea products to the international market.