EXECURTIVE SUMMARY PROBLEM
Our client is unfamiliar with the Dutch market, we are to conduct an in-depth research of the target market in order to provide a deep understanding of the marketplace and its consumers. Research question: Will the product be able to capture the consumption of tea in the Dutch market?
SECONDARY DATA COLLECTION
AGE DISTRIBUTION DATA
Population The Hague to surpass the 500 thousand mark in September The population of The Hague is anticipated to surpass the 500 thousand mark in September this year, having grown by nearly 60 thousand since the turn of the century. The proportion of young residents under the age of 20 has increased markedly and at the same time, the proportion of over-65s has declined.
Considerable growth since 2002
The population of The Hague has increased almost continually since 2000 and has grown substantially in 2002 when the number of Dutch municipalities was reduced further. Other factors contributing to the population growth were people moving in from other municipalities, more foreign migrants and natural population growth. The population increase caused by people moving to The Hague from other municipalities is partly due to the construction of new housing estates like Leidschenveen. This is not the first time for The Hague to surpass the 500 thousand mark. In the early 1960s, the population even exceeded 600 thousand
Figure 1: Popution of The Hague
More young people, fewer over-65s
The share of young people in the population of The Hague has increased over the past 15 years. The proportion of people under the age of 20 has grown from 21.4 percent in 1996 to 23.0 percent in 2011, whereas for the Netherlands as a whole, the proportion of people younger than 20 declined marginally. The increase in The Hague is caused by an increase in the number of households with children. Simultaneously, the over-65 population in The Hague shrank from 17.1 to 12.9 percent. This is surprising, because elsewhere across the Netherlands the over-65 population grew from 13.3 to 15.6 percent in the same period.
Figure 2: Population of The Hague by age
Nearly half have foreign background
The share of people with a foreign background has grown from 37 to 49 percent in The Hague between 1996 and 2011. On 1 January this year, 241 thousand residents of The Hague had a foreign background, i.e. 73 thousand had a western background and 168 thousand had a non-western background. The most substantial increase by nearly 10 percentage points was recorded among people with a non-western background. The population with a non-western background comprises four large groups. The proportion of Turks grew most. People from Surinam are still the largest ethnic group in The Hague. The group of people with a western foreign background grew by just over 2 percentage points. The largest group of people with a western background are people from the former Dutch East Indies or Indonesia. This category declined by 15 percent, while the group of other western migrants grew by 65 percent.
Figure 3: Population with foreign Backgrounds
RATE OF TEA CONSUMPTION IN THE NETHERLANDS
Next to coffie is tea one the most largely consumed beverage in the Netherlands. Data collected by CBS shows that 100 litres of tea is consumed per person in 2006. The targeted group for our product fall within the ages of 20 – 65 years who are the majority of the entire population of The Hague. In figure 3, it shows the population of people in The Hague with foreign backgrounds and among them are people from morocco, Turkey and Indonesia (Condliffe). These people are among the top 20 world tea consumption countries. Below is in figure showing the rate of tea consumption in the Netherlands per person in 2006.
Figure 4:Rate of Beverage consumption
COMPITION IN THE TEA MARKET
The Immediate competitors in the market are those companies that produce tea products with different flavours. One of the top competitors in the tea market are Lipton and Pickwick. These potential competitors are producing tea in the old traditional trend with little variations bringing to the market slightly improved flavours. Advantages of the Barley tea over the potential immediate competitors. 1. The barley tea has numerous health advantages over the various immediate competitors. Below is the nutritional contents chart of the various tea products in the market as compered to Barley tea (Asianfoods) Figure 5: Nutritional contents of leading tea products