International Business Strategy: Clipper Tea in Sri Lanka Market

This report provides a detailed analysis of Clipper Tea's international business strategy for entering the Sri Lankan market. It includes a background of the company, a mission statement, and product details. The report covers the target market, financial analysis, and PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors influencing the business. A SWOT analysis identifies the strengths, weaknesses, opportunities, and threats for Clipper Tea in the Sri Lankan market. The report also discusses international business strategies, market entry approaches, competitor analysis, and marketing mix strategies, focusing on product, price, promotion, and place. The goal is to provide a comprehensive understanding of how Clipper Tea can successfully expand its business into a developing market like Sri Lanka.

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Table of Contents
PART A...........................................................................................................................................2
Background and Introduction.......................................................................................................2
Analysis...........................................................................................................................................2
Mission Statement........................................................................................................................2
Product.........................................................................................................................................2
Target Market...............................................................................................................................3
Financial Analysis........................................................................................................................3
PESTLE analysis.............................................................................................................................3
Political Environment..................................................................................................................4
Economic Environment................................................................................................................4
Social Environment......................................................................................................................4
Technological Environment.........................................................................................................4
Legal Environment.......................................................................................................................4
Environmental Analysis...............................................................................................................5
SWOT analysis for Clipper Decaffeinated Green Tea....................................................................5
International business strategy.....................................................................................................6
Strategy for entering the developing market...................................................................................8
Competitors..............................................................................................................................8
Customers.................................................................................................................................8
Collaborators............................................................................................................................8
Climate.....................................................................................................................................8
Marketing Mix Strategies.............................................................................................................8
Product......................................................................................................................................9

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Price..........................................................................................................................................9
Promotion.................................................................................................................................9
Place.........................................................................................................................................9
Part B.............................................................................................................................................10
Reflection...................................................................................................................................10
References......................................................................................................................................11

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PART A
Background and Introduction
The Clipper Teas limited started clipper tea in 1984. It was a new concept in the field of tea. It is
an innovative idea that tea, which was being served in cups, will now be severed in a tea bag
with sugar and milk. Mike and Lorraine were determined to change the taste of tea and they
started taking initiates in 1984 in that direction. They had a tag line ‘It is what is on the inside
that counts. Company started their journey from UK. Clipper Teas Limited has a good market in
UK. Company also supply its products in different countries through third parties (Clipper,
2019).
Analysis
Mission Statement
The Clipper Teas Limited wants to export its Clipper decaffeinated green tea to Sri Lanka. They
want to capture international market through low price range and quality product. The Clipper
Teas Limited is having a roadmap to start with the goals. They take their decisions and actions to
succeed in international market (Clipper, 2019). Their missions are:
1. Make a refreshing morning
2. To create a brand
3. To motivate people for their health and happiness
4. To create a new culture in society
Product
The Clipper Teas Limited wants to extend thier business at international level. They introduce
their Clipper decaffeinated green tea in the International market, which is Sri Lanka. There are
various benefits of Green tea from the physical fitness viewpoint.

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Green tea is having polyphenol antioxidants that are best for health. This antioxidant provides
many benefits to health (Clipper-Teas, 2019). These are the benefits of clipper caffeinated green
tea.
 It is having bioactive compounds, which are good for health.
 It reduces fat that improve health of a person.
 It is antioxidants that are reduce different types of cancer in human body.
 It reduces risk of Alzheimer's and Parkinson's in human body as well as protect brain
 It reduces risk of Type 2 Diabetes in human body.
 It reduces risk of Cardiovascular Disease in human body
 It is also helpful to lose weight and lower risk of obesity in human body
Target Market
The Clipper Teas Limited will target those people who have their age above 5 years as well as
health conscious people. It is beneficial for the human body. Clipper caffeinated green tea
reduces fat and diabetic problems as well. It is not containing sugar. Therefore, it will target
those customers who have age between 20 to 65 years.
Financial Analysis
At starting level, it will be priced at lower range. They provide 20 tea bags of Clipper
Decaffeinated Green Tea in just 490 Sri Lankan Rupees. It will increase sales of organization by
45%. It will also provide maximum benefits to the company. It will produce profit form the
green tea product is 17 % in the starting of the year and it will increase in end of the year by
35%. All things are important for extending business at international level.
PESTLE analysis
Most of the researchers use PESTLE analysis framework to understand different external
environment factor (Ajmal, et al., 2010). It is beneficial for understand macro level factors of the
business at international level. In this report, PESTLE and SWOT analysis is used to analyze the

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external factors that might affect the business of Clipper Decaffeinated Green Tea product in Sri
Lanka.
Political Environment
Clipper Decaffeinated Green Tea is having many political elements, which affect business of the
company. Duty and tax rate of Sri Lanka is a one of the reason. It has power to affect the
spending is of customers in Sri Lanka as well as company expenses. Currently, Sri Lanka
government brought down the interest level to improve their economy. It will help to investment
of investors in different projects of Sri Lanka. Clipper Decaffeinated Green Tea will be able to
bring investment in the market of Sri Lanka through loans (Anderson, et al., 2009).
Economic Environment
Economic environment can affect the business of Clipper Decaffeinated Green Tea in Sri Lanka.
Sri Lankan economy has seen robust annual growth at 6.4 percent. Clipper Decaffeinated Green
Tea will hope for better business in Sri Lanka (Cadogan, 2009).
Social Environment
Many customers will use clipper Decaffeinated Green Tea. In addition, social changes are being
seen in Sri Lanka. It will increase consumption of Clipper Decaffeinated Green Tea. It is also
having health benefits.
Technological Environment
Sri Lanka is a developing country and it has been technological changes as well as IT-services. It
will help create an online business for Clipper Teas Limited. Now days, consumers are prefer
online shopping (Chen, et al., 2012).
Legal Environment
The Clipper Teas Limited will handle all the rule, laws, and legal procedures for their
international business planning in Sri Lanka. Company will have to maintain rule and regulations

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in different terms, such as processing of tea, packaging, distribution, manufacturing, and many
other things (Canadian Trade Commissioner Service, 2018).
Environmental Analysis
Sri Lanka climate is warm throughout the year. Temperatures of Sri Lanka vary in between 20 to
30 degree Celsius. It is a positive condition for Clipper Decaffeinated Green Tea (Chesbrough,
2010).
SWOT analysis for Clipper Decaffeinated Green Tea
SWOT analysis is useful for understand different factors of company at macro level. It will
provide strength of the company, which can be used for new business in international market. It
will explain about weaknesses of the company that is used for avoiding weaknesses from new
business processes. SWOT analysis will also provide opportunities of company to become an
international brand and many innovations in their fields. It will provide threats of the company.
Therefore, company can avoid those threats at the time of new product launching and product
launching in international market (Enderwick, 2009).
Strengths Weakness
 The Clipper Teas Limited has a strong
brand image in UK.
 The Clipper Teas limited is famous for
their products as well as fresh ingredients.
 They provide their products in a budget
price as well as less price then other
brands
 Few products are having unique taste
 Their products are sugar free that is
beneficial for health
 It bears international standard.
 Advertising and marketing is having
poor strategies
 Clipper caffeinated green tea is a
new product in Sri Lankan market.
 Rate of awareness is low
 There are many competitors in the
market.
 It is still having a less promotion.

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Opportunities Threats
 The Clipper Teas Limited can introduce
their new concepts with unique products,
such as sugar free products and flavored
products.
 Competitors are not having new
technologies as well as decaffeinated
products.
 They have an opportunity to promote their
products with the help of new marketing
mix strategies.
 Lipton was established their product
a long time ago that is a threat to
Clipper Teas Limited
 They are having sugar free and
sometimes, it is boring in taste.
International business strategy
Marketing is terms that will always be an inevitable in order to supply of products in domestic
and international market. Therefore, when a company wants to extend their business at
international level, it has many things to do for getting success. Domestic and international
business is having many differences in terms of marketing (Canadian Trade Commissioner
Service, 2018).
Most of the companies are aims to capture the international market, whenever they see
themselves doing great in the domestic market. However, international market is having different
things to capturing success and it is not easy thing. International market is requires efforts,
planning and research for getting successes (Teece, 2010). It is compulsory to understand all the
diversities and complexities of international market through manager. In addition, they need to
build knowledge, attitude, and professional skills to achieve their target in the international
market (Waranantakul, 2014).
For establish in international market, company should perform different analysis before
launching products in international market, such as SWOT and PESTLE analysis. SWOT

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analysis is described about the strength of the organization as well as weaknesses. It is also
provide opportunities for company with threats of present market (Trkman, 2010).
Sri Lanka is increasing consumption of clipper tea day by day. Therefore, company having
though of exporting clipper tea to Sri Lanka. There are many facts for exporting a product in
international market. In this report, external environment analysis is focus by Clipper Teas
Limited (Hoey, 2018). It will explain about strength and weaknesses of the company with many
opportunities and threats. In this report, Clipper Teas design new marketing strategies for
exporting clipper tea in Sri Lanka. International market requires more analysis as compare to
domestic market (Trade Commissioner Service, 2018).
Planning is required for getting success in future. Companies are putting their efforts with their
strengths to achieving thier goals. It is ways to make different things in a synchronized way for
getting success otherwise different business problems are occurred in front of company (Slater,
et al., 2010).
Planning can be related to the formulation of missions and functions for getting success.
Therefore, it can be termed as process and philosophy. Planning can be defined in three ways,
which are corporate, tactical, and strategic. Planning for international market is defined to be
long-term goal. It is a highest level of any organization that conducts international corporate
planning. They deal with the research, capital, and product (Saunders & Lewis, 2012).
International market is required international marketing strategies for product launch. It is a kind
of corporate planning that is undertake by the highest level of managers. Managers are planning
for the product launch in international level and they design entry market strategies with the help
of mix marketing strategies. Therefore, product can attract the customers and catch the essence
of the market ( Saif, 2015).
Based on many researches, a cup of tea contains less caffeine than coffee. Therefore, consumers
consume tea. Clipper tea is having so many health benefits. There are many inventions in tea,
such as green tea, organic tea, and many others. It has been promoted these days (Peter & Olson,
2010). Sri Lanka is having many customer, which are health conscious and it is increases day by
day. Clipper teas limited chose it as their international market place for clipper tea.

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Strategy for entering the developing market
Competitors
The Clipper Teas Limited is having several competitors in UK. Therefore, they can make a good
price for their products and their quality to establish in market. However, customers are always
ready for quality products (Pandurangarao, 2015).
Customers
Sri Lanka is increasing in consumers that are preferring clipper tea as compared to coffee. They
want to have clipper-decaffeinated tea with a high discount and low price as compared to other
brands. The Clipper Teas Limited has potential to catch the international market though their
business strategies. The Clipper Teas Limited can start their business at Sri Lanka and they can
easily catch the market through their products (Krstic & Becic, 2011).
Collaborators
For setting up business in the other country, media or agencies are helping companies are known
as collaborators. The Clipper Teas Limited will use collaborators for selling and distribution of
their products in Sri Lanka. They can use them for starting few months. Indirect channels are
providing many benefits. Indirect channels are third parties agencies. They do not require sale
personnel for selling of products in market (Osterwalder & Pigneur, 2010).
Climate
The clime is an external environment for a business. The Clipper Teas Limited is having
different products and they are ready to face different complexities in the Sri Lankan market
(Chimngamsert, et al., 2014).
Marketing Mix Strategies
Business is requires different market strategies for getting success. Therefore, it requires 4P’s,
which are product, price, promotion, and place.

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Product
The Clipper Decaffeinated Green Tea is a best product of the Clipper Teas Limited in the
market. It contains no chemical at the time of growing it. The product will be directly exporting
to the market of Sri Lanka for protects originality of product. It will use their brand name to sell
the Clipper decaffeinated tea in the market. Clipper Decaffeinated Green Tea will be pack in the
tea bags and good quality packets for the convenience of the consumers.
Price
Clipper Decaffeinated Green Tea price will be an affordable for consumers. Retailers will keep
35% of the margin who buy in a bulk. Company will provide a bonus in end on the month.
Promotion
Clipper Decaffeinated Green Tea will be used social media for advertisements because it is a
best way to marketing. They will also use line advertisements for product sell.
Place
The Clipper Teas Limited will rent a place for distribution of the product. It will have availability
at various supermarkets as well as airports, railway stations, and many other places. It is easily
available in retail shops. The Clipper Teas Limited will have their own website for maintaining
their online transactions as well as marketing of product (Faber, 2018).
Part B
Reflection
I learnt from this study that international business is not easy. It has many difficulties and
mangers should have higher level of research for business at international level. According to my
opinion, they should design mix-marketing strategies for growth of the company in international
market. Thus, introduce a product in international market is very tough process. It requires
number of things for start to the business, such as analysis, decision-making, and research.

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Competitors are everywhere in the world. Therefore, they have a strong business planning for
international market. To getting success in international market, there is a need to develop
marketing mix strategy based on the SWOT and PESTLE analysis.
I learnt about the different analysis for the international business planning, such as PESTLE and
SWOT analysis. Both PESTLE and SWOT analysis are beneficial for launching a product in
different geographical location at international level.
I leant about the international market strategies through different activities in my class. It is
beneficial for my professional career development. Marketing mix strategies are useful for
business. However, Marketing mix strategies is also helpful for decision making for business
processes and operation of an organization.
Learning activities are so beneficial for my career development and it is useful in business
setups, which are held in class workshops. e-tivities were also beneficial for my personal
development as well as professional development.
I learnt about many skills form that workshops that are held in class, such as self-awareness,
motivation, reflective learning, teamwork, leadership, and effective communication. All these
skills are transferable. In addition, I worked as a leader in different activities.
References
Saif, A. N., 2015. How does Marketing Strategy Influence Firm Performance? Implementation
of Marketing Strategy for Firm Success.. International Journal Of Innovation And Economic
Development, 1(3), pp. 7-15.
Ajmal, M., Helo, P. & Kekäle, T., 2010. Critical factors for knowledge management in project
business. Journal of knowledge management, 14(1), pp. 156-168.