BCG MATRIX FOR DILMAH PLC

A BCG matrix aids firms in analysing their industry's immediate and long-term competitive
landscapes, to plan appropriately. The growth-share matrix helps the firm decide which
products or units to maintain, deliver, or increase investment in.
There are four main groups in the BCG growth-share matrix: They are; "dogs," "cash cows,"
"stars," and "question marks."
The following diagram categorizes the products and services of Dilmah which falls under the
groups in the BCG matrix.

Ceylon tea Resorts

Retail outlets and

T-lounges
supermarkets

Stars – Dilmah provides its loyal consumers in over 100 countries throughout seven regions
with a single-origin, genuine, natural, and ethical tea experience. For the fifth year in a row,
Dilmah has been named the most trusted tea brand in New Zealand by the New Zealand
Reader's Digest Trusted Brand Awards 2020. And, Dilmah’s Inspirations has been named
Product of the Year in Australia for 2021. Therefore, overall Ceylon tea has a high market
growth and market share.
Question mark – Resplendent Ceylon is the hospitality part of Dilmah. Cape Weligama, Ceylon
Tea Trails, and Wild Coast Tented Lodge are all operated by Resplendent Ceylon. Currently
with the pandemic situation in the country the tourism industry has drastically decreased.
Despite, less people tend to visit the resorts, it has a high market growth and low market
share. Question marks are not always successful, and even after significant expenditures,
they struggle to obtain market share and finally become dogs.

Cash cows - The most productive brands are cash cows, which should be "milked" to generate
as much revenue as possible. The money made from "cows" should be put into stars to help
them develop even more. Retail outlets and Supermarkets are the core of Dilmah. Cash cows
does not need a lot of investment, and it generates cash which can be used for other
businesses. This results in a high market share and low market growth.

Dogs - In comparison to rivals, dogs have a small market share and operate in a slow-growing
market. They are not worth investing in general since they produce poor or negative cash
returns. Therefore T-lounges by Dilmah is not very successful when it comes to the market
growth or market share.

Ansoff Matrix for Dilmah

In the strategy step of the marketing planning process, the Ansoff Matrix is employed. It is
utilized to determine which general strategy the company should employ, as well as which
marketing methods should be employed. 
Marketing Penetration – In this stage, Reduced prices for slow-moving items are available on
the company's website and online. And introducing new promotional materials and
flavours/herbs to improve existing consumers' use rates. Also Continue to inform clients about
Dilmah tea's ethical nature through its unique selling offer (handpicked and packaged in the
place of origin) above its rivals. However the lack of a good loyalty program, on the other
hand, is a significant drawback which results in a Gap in the market.

Product development - Dilmah has launched 175 varieties of new products to the market
based on its R&D during the last three years. The Elixir line received the Tea Product of the
Year 2016 in Japan, while Dilmah WATTE won the Tea Innovation Award at the SIAL show in
Paris, France 2018. And also won the product of the year for Dilmah natural infusions range in
Australia 2020.

Market development - The Elixir collection of tea cordials and vibrant range of tea options
attract a new client group, particularly Gen Z, who will fall in love with these tea selections.
Dilmah has even penetrated the West African market, with tea being supplied to nations like
Ghana, Tema, and Burkina Faso. Dilmah exports tea to 107 countries, therefore it is at a level
of partly ideal. However, because they are confined to current sales methods, their
distribution routes, particularly in the local market, can be increased.

Diversification - Brew bar by 1987 and t-lounge by Dilmah outlet ideas are presently
functioning as a franchised company in more than 5 countries. Dilmah also has another
business scale under the hospitality sector called Resplendent Ceylon (Related to
Diversification). However, to minimize brand impact, the t lounge idea may be spread outside
franchisees through joint ventures and strategic alliances. This also results in a Gap in the
market.

Dilmah focuses solely on Product Development Strategy, while also demonstrating acceptance
of the other methods listed above. Dilmah's present New Product Development plan does not
align with developing customer loyalty; instead, Dilmah should focus more on keeping
consumers through a Market Penetration strategy to achieve customer loyalty.
Businessnewsdaily.com. 2021. [online] Available at: <https://www.businessnewsdaily.com/5693-bcg-
matrix.html> [Accessed 25 June 2021].

Dilmahtea.com. 2021. [online] Available at: <https://www.dilmahtea.com/sustainability/pdf/dilmah-

ceylon-tea-company-plc-annual-report-2019-20.pdf> [Accessed 27 June 2021].

Essay48. 2021. Dilmah Tea Blending Quality and Authenticity Case Solution. [online] Available at:
<https://www.essay48.com/case/49052-Dilmah-Tea-Blending-Quality-and-Authenticity-Case-
Solution> [Accessed 27 June 2021].