Piping Company Info

Question 1

Introductory information, History & Products

Answer 1

• Quoted company
• Based in Northlandia a developed country (i.e. UK)
• Tea manufacturer - Premium brand
• Local market is strongest market
• Foreign markets caters mainly to expats
• Products: brief overview
  > Two main product lines of varying strengths, loose leaf and tea bags. Exclusively black tea (leaves many product areas to expand into)
• History
  > First company to manufacture teabags in Northlandia 1958.
  > Premium brand, CREATES VALUE by quality tea leaves, high quality packaging keeping contents fresh and spends heavily on advertising for brand awareness.

Question 2

Tea Industry

• types of tea
• ## price

Answer 2

• Must come from Camellia sinensis to be called Tea.
• Harvested by plantation workers by hand every 7-14 days
• Black Tea
  > Dried then oxidised (left to absorb oxygen), then dried with hot air to turn them black.
• Green Tea
  > Steamed after plucking.
• Tea auctions
  > Black tea is sold in bulk as a commodity, manufacturers will often bid for leaves from specific plantations to help the blending process.
  > Tea price as a commodity is on a downward trend since Mid-2018., this would indicate supply is outweighing demand.
  » This could be a change in tastes from consumers or bumper harvest years for plantations creating over supply.
• Tea consumption
  > Second only to water as the most widely consumed drink in the world.

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Manufacturing

• Tea Blenders: Critical staff members

- Types of tea products:
> Loose Tea
> Teabags
> Tea pods
> Ready to drink
> Complimentary products:
>>Tea pots and mugs / sets
>> Tea infusers (for the loose leaf)
>> Iced tea
>> cross over products: Tea mug with infuser (gift for themselves)
>> Raw materials:
>>> Matcha
>>> Chai
>>> White Tea
>>> Herbal and Floral (Infusions)

Question 3

Operations

• HQ/Headcount
• Buying system and inventory [adv/disadv]

Answer 3

• Factory in Central City in Northlandia
  > 700 staff in factory
  > 200 staff in head office close to the factory. Procurement, Marketing and Admin.

Question 4

Piping in terms of the CGMA Business Model

Define, Create, Deliver, Capture Residual Value.

Answer 4

Define value
- defined in terms of the needs and wishes of consumers. Piping pays close attention to feedback and adapts products and packaging accordingly.

Create Value
- Piping uses good quality materials for its products and packaging. Piping constantly innovates to maintain the quality of its products and the manner in which they are packaged.

Deliver Value

• Markets its products in a clear and relevant manner to maintain brand loyalty.
• Piping has an efficient distribution system that ensures products are readily available.

Capturing Residual Value
- Piping uses quality materials and packaging for its products and adds value through the manufacturing process in order to justify the premium pricing. Piping supports plantations by paying realistic prices and controls costs through efficient manufacturing processes.