Case Review Lipton Snow Tea Marketing Essay

Lipton Iced Tea is a drink launched by Lipton in collaboration with Pepsico. Lipton is an founded brand in the tea market while Pepsico has a prominent occurrence in the soft drink industry. Since the recognition of tea began to develop in the West, particularly in america of America, the tea market has developed through various levels. In order to dominate the marketplace, major tea providers like Lipton, Tetley and Nestea have kept on coming up with innovative types of tea. Lipton, which has the trustworthiness of being the most ground breaking brand in terms of variety launched cool beverage, Lipton Iced Tea, thus adding a fresh dimension to the tea market. Lipton Iced Tea relishes even more recognition following the recent researches mentioned the healthy advantages of consuming tea. In addition, the iced tea was a good way of targeting those consumers who do not enjoy hotter beverages.

Lipton faces a significant competition from Nestle Nestea and Snapple. However, Lipton Iced Tea effectively were able to lead the marketplace. Considering the risk from new and existing rivals, Lipton has retained is marketing strategy very good an ambitious. Besides setting its product as the healthiest and the most stimulating drink available in the market, Lipton's intelligent product packaging and rates strategy has significantly contributed to its success. Its low prices make Lipton less expensive as compared to its competitors and its packaging helps it be instant and simple to use.

While Lipton Iced Tea comes with an overall strong position in the market, however, its fabricated taste remains its weakness. Therefore, Lipton can further fortify its position by boosting the taste.

On a macro level, Lipton loves a positive press, not only because of its successful quality management system, but also because of its sustainable and environmental friendly production practices.

Introduction

Tea is a household icon in most parts throughout the world. Almost atlanta divorce attorneys country that has tea consumers, when you think tea, the first name that strikes our intellects is Lipton. Lipton tea originates from the house of Lipton, currently a major subsidiary make of Unilever.

Lipton was founded by Thomas J. Lipton, an Irish man, who emerged to United states in the later eighteen hundreds. He started out by a small supermarket and extended it into a string of stores around America. By the end of the nineteenth century, when demand of tea boomed in the European countries, the British tea brokers pressed Lipton to stock their tea in his stores. This offered Lipton an idea of coming up with his own make of tea, and therefore, Lipton Tea was created. Tea at that time was expensive and was considered a wealthy man's drink. Thomas Lipton's idea was to create a far more affordable brand so that even consumers from less strong economical qualifications can enjoy tea.

Lipton has continuing to grow since then, which led it to move public in the early twentieth century. By late twentieth century, Lipton began functioning as a subsidiary company of 1 of the world biggest commercial house, Unilever.

Since its labor and birth, Lipton has been over a road to constant growth and extension. This expansion was not only in terms of exploring new market segments, but also in conditions of introducing a variety of products. Today Lipton contains major market show both, in america of America and around the world.

Ever since Lipton has stepped in to the tea industry, tea has truly gone much beyond when compared to a conventional household beverage. From time to time, Lipton is known to introduce new enhancements in the tea industry and one of the very most ground breaking and popular addition is the Lipton Iced Tea. This product came into being after Lipton collaborated with PepsiCo. , which is generally a soft drink company.

The Market

As a tea brand, Lipton is the marketplace leader both, in the United States of America and around the world. With an array of tea variety, Lipton will serve people from all classes, social backgrounds, and locations. From students to grandparents, from China to the United States of America, Lipton is the main element tea brand that serves virtually all market segments.

Focusing on Lipton Iced Tea in particular, Lipton has segmented its consumers matching to lifestyle. Generally, Lipton Iced Tea has two major targeted groups of consumers. The first group addresses those individuals who lead a busy life style and are hunting for "something instant. " This group mainly includes, students, employees, working women and other similar consumers who live a stressful and active life and may need an instantaneous product to refresh them. Lipton's notion of providing tea in ready to dip tea luggage and instant sachets has been very successful among this segment. Tea in this type of packaging proven not only affordable but also simple and fast to work with.

The second group of people comprises of the health conscious section. Consumers from this particular segment may not always lead as occupied life as the first group, however, they are potential consumers because of the healthy benefits made available from the product. Ever since the researches have mentioned the medical features of tea ingestion, Lipton has played on these studies in order to put its product effectively as healthy, energizer with huge health benefits.

Since Lipton has always located its tea as a health drink that delivers antioxidants, its market share has continued to expand with the duration of time. Moreover, many people favor Lipton to other brands due to its affordability, quality and ease of use.

In order to further diversify its clientele, Lipton has launched further types of Iced Tea that includes, Diet Iced Tea and Flavored Iced Tea in Mixed Berry, Lemon, Raspberry and Peach flavours. Since Iced Tea is actually a cold drink, the integration of flavours with the beverage has managed to get popular in the younger categories as well.

Since Lipton recognizes the actual fact that its potential consumers include people who are either health conscious or are have a busy workout or they choose for Lipton due to its affordability, it continues to build up products that are better, better to use and are definitely more inexpensive.

Size and Development of the Market

In earlier days, espresso was a relatively more popular drink in america. However, recently, the tea has gained much reputation, thus resulting in a phenomenal progress in the American tea market.

The primary reason behind this popularity, corresponding to some study reports, is the actual fact that tea is a wholesome and more stimulating brew as compared to its counterparts such as espresso. Furthermore, the benefits of flavored tea and other tea varieties such as green tea extract and iced tea has broadened the buyer basic. Another reason, aside from the health factor, for the reputation of tea is the fact that it's instant and is readily available as a prepared to drink brew.

While in the beginning, tea was known to be a glass or two of colder regions, however, the ground breaking release of iced tea has made the beverage popular amonst the inhabitants of warmer temperatures as well. Corresponding to market surveys, 85 percent of the total tea market in america of America comprises of iced tea. Additionally it is said that iced tea sales has seen the average total annual increment of 145 percent.

Although the iced tea market is dominated by various top tier brands, however, Lipton keeps the best market share of 32. 6 percent, accompanied by Snapple with 26. 5 percent talk about and Nestea with 10. 8 percent share. Lipton leads the marketplace not only in the us, but also around the globe.

Environmental Impact

Lipton is known to have realized its Corporate Sociable Responsibility well. As a business, it adheres to the concept of sustainability. The largest evidence because of this is the fact that Lipton expands its tea plantations in the Rainforest Alliance Certified estates. These estates are certified by the Rainforest Alliance corporation, which is a non-profit entity, aiming to conserve the surroundings, managing farms effectively and safeguarding the privileges and welfare of the personnel and their own families associated with those farms.

Moreover, Lipton in addition has switched to containers that use 20 percent less plastic. This is another step towards an environmental friendly business activity.

Competition

The American tea industry is principally dominated by Lipton, Snapple and Nestle. Focusing on the Lipton Iced Tea, specifically its major rivals stay Snapple and Nestea, something of Nestle. While Lipton teamed up with PepsiCo to start its iced tea, Nestle became a member of Coca Cola to get into competition. Just like Lipton and Nestle, PepsiCo and Coca Cola are into immediate aggressive competition with one another. Therefore, the target behind Nestle's teaming with Coca Cola was to compete with the Lipton-PepsiCo collaboration and ensure a strong global distribution system. However, Nestea centered on a more presentation based marketing strategy and unlike Lipton, it failed to give a variety of tastes to cater various likes. Lipton, on the other side, not only centered on offering variety, but also sold its product and located it as an ideal healthy and prepared to drink beverage. Because of this, it didn't only create brand loyalty for Lipton among normal tea drinkers, but also been successful in recording the consumers from the soda pop drinker's portion as well. This kept Lipton much before Nestea as far as completion is concerned.

The competition difference between Nestea and Lipton Iced Tea is crammed in by Snapple iced tea, which is the second most popular brand after Lipton. Unlike Nestea, Snapple comes with an edge of offering a wide variety of flavors and first, it did come up as a strong competition for Lipton. However, the relatively smaller size of Snapple and its own failure to put itself properly on the market resulted in the loss of major market talk about to Lipton. Although weaknesses of its competitors have always maintained Lipton before them, however, the threat is usually there and to be able to keep its position in the market, Lipton has to ensure constant innovation and improvement of its product.

The Marketing Mix

As mentioned before, despite of being a market head, Lipton glaciers tea encounters a regular competition from other dominating brands in the tea market. This prompts Lipton to maintain an aggressive online marketing strategy to make brand loyalty also to ensure its authority in the tea market. Lipton's marketing mixture is designed the following:

Product

As something, Lipton glaciers tea has too much to offer as a unique selling point when compared with its rivals. The biggest edge that Lipton has is the recent research information saying the medical great things about eating tea. Lipton has prevailed in creating an image that Lipton Glaciers Tea is the healthiest drink available on shelves.

Apart from that, Lipton ensures regular and continuous advancement in the product and it maintains on discovering newer plus more improved flavors. To help expand increase its consumer platform, Lipton introduced the dietary plan and unsweetened selection of snow tea, so that diabetic patients, who generally avoid tea, can also benefit from the beverage.

Promotion

Lipton Iced Tea is aggressively advertised using both, above the series and below the line promotional strategies. It generally uses printing media and television for the promotion of its product. Lipton's main promotional strategy is to position its product as the utmost stimulating, energizing and healthy drink available for sale.

Besides regular advertising, Lipton also retains on coming up with parallel promotional strategies. Its latest plan involves buying two Lipton Ice Tea products and obtaining a chance to gain a Convertible car.

Placement

In order to ensure a strong, efficient, massive, broad and uninterrupted syndication system, Lipton teamed up with PepsiCo, which already has a well-established syndication system around the world for its soft drinks. Therefore, Lipton Iced Tea is sent out through PepsiCo's syndication channels.

Lipton Ice Tea is easily available on the market. It could be easily found in all shops ranging from a tiny supermarket to a huge hypermarket. Besides regular retailing, it comes via vending machines. Lipton has also maintained an internet presence and its own products can be purchased and purchases through the internet.

Pricing

Lipton feels in catering to mass market without disregarding the consumer sections with lesser purchasing power. Because of this, Lipton Iced Tea is available in a wide range of prices that begins as low as 41 cents. This makes Lipton the least expensive brand in the market and forces a large range of consumers to choose for Lipton. In addition, it offers larger current economic climate packs at a price of about US$ 34. This aggressive pricing strategy has a significant contribution in keeping Lipton's competition at a lower position.

Packaging

Lipton has effectively and successfully used the colour 'Yellow' as Lipton's personal color. It really is as if pondering 'Yellowish' means pondering 'Lipton'. Furthermore, Lipton's presentation is an essential part of its online marketing strategy. Lipton Iced Tea can be found not only in cartons and in boxes, but it is also available in ready to drink bottles, ready to use tea hand bags as well as pocket sachets. This does not only make the product simple to use, but also instant and easy to carry. This instantaneousness and user friendliness makes the product popular in consumer segments of all years and public backgrounds, especially one of the students and the employees. As time passes, Lipton retains on causing changes in its product packaging, thus increasing the product's quality and which makes it easier for consumers to utilize.

SWOT Analysis

Strengths

Lipton is beyond doubt, the best tea brand on the market. Its biggest strength is its partnership with PepsiCo and its incorporation with Unilever. This makes Lipton a strong brand as connection with both these organizations ensures efficient distribution system as compared to its rivals.

Another strong point that Lipton has is that press has always been in Lipton's favor. This is scheduled to recent researches portraying tea as a beverage with medical benefits coupled with Lipton's successful marketing strategy of projecting its product as clinically fit for intake.

Other strong things on Lipton's side include its affordable price, an individual friendliness of the product and all of the innovative flavors offered by the business.

Weaknesses

Although, a variety of flavors is offered, some survey accounts declare that Lipton Glaciers Tea must work on tastes augmentation. Some consumers complain that they think it is too artificial and the preference, and in some cases, the after flavour of the ice tea is awkward. Several consumers also complain that although they find the drink cool and relaxing, however, they find it tasteless at exactly the same time.

Opportunities

Having a strong brand image coupled with cost efficient development system, Lipton has the opportunity to weaken its rivals without engaging in any price wars. By working a lttle bit more on style enhancement, it can take away the remaining market show that is organised by its rivals.

Threats

Although up to now Lipton had effectively fought back your competition, however, to be able to keep up its position in the market it has to ensure it remains in the process of continuous development.

Recommendations/ Conclusion

Lipton Glaciers Tea is at present, one of the best brands in the brew market. However, it can further reinforce its position by increasing its shelf occurrence and increasing its shelf life. Although some companies tend to ignore the importance of where there product is put in a brilliant market, however, in practicality, just how a product is viewed in a store has a great, and sometimes a direct impact on its income.

Increasing shelf life means that the product would last for a longer time, which will result in consumers to like Lipton to its competitor's products.

As mentioned earlier, that some consumers have reported the fragile preference of Lipton Snow Tea, it has to work with its preference experts to be able to build up the taste to match consumer requirements. Inability to take action, might lead to a lack of potential market show to existing or new competitors.

The fact that press has been constantly praising Lipton's quality and analysts are seconding Lipton's lay claim of offering a healthy beverage, can be employed to increase its consumer foundation by pursuing helpful promotional initiatives.

Lastly, it must ensure so it keeps on discovering both new flavors and improved packaging so that it appeals more to the buyer and can maintain steadily its image as an important household product. It could have kids as its potential consumers by coming up with flavors that suit their flavour such as chocolates and strawberry.

Appendix

Based on information from online sources.

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