...Case Study: Lipton and Kai Shii Competitors in the iced-tea market Author: Parag Agarwal Date: 25/11/2002 Tutorial Group: 7 Tutor: Ms Gillian Scott 1. Executive Summary Unilever Bestfoods, USA and Shin Shii, Taiwan are competitors in the rapidly growing iced-tea market with their brands Lipton (in alliance with Pepsi) and Kai Shii respectively. Unilever has also introduced an instant hot-tea can by the name of Brooke Bond’s PG Tips. Kai Shii is about to be launched in the US market. The following study evaluates various market segmentation strategies, potential consumer target segments, and factors to forecast demand that were used or could have been used by these two companies. The main reference for this report was Chapter 3 of the textbook ‘Principles of Marketing’ by Kotler et al. The main results of the analysis are as follows: • Both companies’ SWOT analysis reveals that they are dominant and successful in their home markets. • Kai Shii would require a great amount of effort to market itself and bridge the cultural divide and varying tastes and perceptions between Taiwanese and American consumers. • Behavioural (seeking convenience, health conscious), demographic (age groups) and geographic factors largely influence the market segmentation. • Pricing amongst competitors...
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...theoriesProvide strong justification and arguments based on Brand Management concepts and theories | 40 | | Academic references, referencing styleMinimum of 5 ACADEMIC REFERENCES | 15 | | Formatting, structure, grammar, spelling, formatting and presentation of the case study | 5 | | Total Marks | 100 | | Please ensure that your case study is submitted on Blackboard as well as via TURNITIN. Late penalties apply. Brand Reinforcement About Lipton Lipton is a brand that is synonymous with quality, aromatic yet affordable tea. A brand that primarily sells tea and several varieties of tea products. The brand was established in 1893 by then 40 year old entrepreneur, Sir Thomas Lipton, an innovator and the brand was named after the founder himself (About Lipton, 2015). He established a tea packing company called Thomas J Lipton Co, and opened both headquarters and factory in New Jersey. There was a perception among public that tea was considered to be a luxury drink and only enjoyed by the wealthy. Mr Lipton created a vision in 1880 to make tea accessible universally with maintained quality and affordable prices. Today, Lipton becomes one of the leading brand and was sold in 150 countries and more. Lipton had changed the look of its logo a couple times since the brand was first...
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...A Marketing Plan for Lipton Ice Tea Institutional Affiliation Date Marketing Plan: Lipton Ice Tea Industry Analysis In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel 2005). Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favorable movement in the tea industry can be attributed to two major factors: a) consumers need for convenience and time-saving services; and b) the positive press given to tea. American lifestyle and work habits have made convenience a necessity. As employers demand for productivity from their employees, consumers are more pressed for time. In addition, the shaky economy has made Americans fear for their jobs; thus, any product that can fill the consumers' need for convenience and speed are almost automatically embraced into the American lifestyle (Mintel 2005). For the last decade, the health benefits of tea have gained wide coverage in the media. Studies continue to show the beneficial properties of teas, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea (Mintel 2005). Both the need for convenience and positive press on tea have spurred an increase in sales of tea products, specifically ready-to-drink (RTD) teas sold in single-serve containers (Mintel 2005). Recognizing...
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...This title is part of the IDH Case Study Series, published in December 2010. Another title in this IDH Case Study Series is: • nilever sustainable tea, Part II: U Reaching out to smallholders IDH also has a Best Practices Series, whose titles include: • Marketing sustainability • Sustainable sourcing among SME’s • Beyond auditing • Sustainable trading • Retailers and sustainability • Sustainable sourcing and procurement Case study Unilever sustainable tea Part I: Leapfrogging to mainstream y Tania Braga, B Aileen Ionescu-Somers and Ralf Seifert, IMD’s Center for Corporate Sustainability Management Dutch Sustainable Trade Initiative (Initiatief Duurzame Handel) Utrecht, The Netherlands www.dutchsustainabletrade.com office@dutchsustainabletrade.com Foreword A tipping point happens when a critical mass of people begin to shift their perception of an issue and take action in a new direction. As I look across the global landscape, I feel that we are approaching a tipping point concerning global sustainability. It is catalyzed by at least three important realizations by business, government, and civil society: The first is a realization that the world is finite and that a growing population with a higher ambition for living standards will inevitably lead to a world which will be resource and carbon constrained. The second is the realization that to solve the challenges for this future world we need systems solutions. We cannot solve individual...
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...9 -5 1 2 -0 1 1 REV: FEBRUARY 3, 2012 THALES S. TEIXEIRA ALISON CAVERLY Pepsi-Lipton Brisk In September 2010, Mary Barnard and Marisol Tamaro returned to their offices at Pepsi Headquarters after a meeting with their new advertising agency. Mekanism had just been hired to work on the re-launch of Brisk Iced Tea, a brand that had had its glory days in the ‘90’s and later had become stagnant. As of 2009, Brisk sales were rising and it attained a 10% market share in the fast growing ready-to-drink tea category, despite having virtually no advertising support. Pepsi decided that it would start investing heavily in the brand in 2011. To start off the year, a spot had been purchased for a Brisk ad to be shown during the Super Bowl, in early February. What Barnard and Tamaro needed to decide was how to carry the advertising momentum in the months following the most viewed sports event in American television. Should they stick with advertising on TV or try out a viral advertising approach in social media? Their budget wouldn’t allow for both media to be used. Barnard, Vice President at PepsiCo and the General Manager of the Pepsi-Lipton Tea Partnership (PLP), owner of Brisk, was in charge of the final decision and conferred with Tamaro, Brand Building Director for Brisk, on what to do. PepsiCo was the second largest food and beverage company in the world. So at $340 million in net revenues in 2009-10, PLP seemed like a drop in the ocean compared to the $10 billion1 from its holding...
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...This title is part of the IDH Case Study Series, published in December 2010. Another title in this IDH Case Study Series is: • nilever sustainable tea, Part II: U Reaching out to smallholders IDH also has a Best Practices Series, whose titles include: • Marketing sustainability • Sustainable sourcing among SME’s • Beyond auditing • Sustainable trading • Retailers and sustainability • Sustainable sourcing and procurement Case study Unilever sustainable tea Part I: Leapfrogging to mainstream Tania Braga, By Aileen Ionescu-Somers and Ralf Seifert, IMD’s Center for Corporate Sustainability Management Dutch Sustainable Trade Initiative (Initiatief Duurzame Handel) Utrecht, The Netherlands www.dutchsustainabletrade.com office@dutchsustainabletrade.com Foreword A tipping point happens when a critical mass of people begin to shift their perception of an issue and take action in a new direction. As I look across the global landscape, I feel that we are approaching a tipping point concerning global sustainability. It is catalyzed by at least three important realizations by business, government, and civil society: The first is a realization that the world is finite and that a growing population with a higher ambition for living standards will inevitably lead to a world which will be resource and carbon constrained. The second is the realization that to solve the challenges for this future world we need systems solutions....
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...This title is part of the IDH Case Study Series, published in December 2010. Another title in this IDH Case Study Series is: • nilever sustainable tea, Part II: U Reaching out to smallholders IDH also has a Best Practices Series, whose titles include: • Marketing sustainability • Sustainable sourcing among SME’s • Beyond auditing • Sustainable trading • Retailers and sustainability • Sustainable sourcing and procurement Case study Unilever sustainable tea Part I: Leapfrogging to mainstream Tania Braga, By Aileen Ionescu-Somers and Ralf Seifert, IMD’s Center for Corporate Sustainability Management Dutch Sustainable Trade Initiative (Initiatief Duurzame Handel) Utrecht, The Netherlands www.dutchsustainabletrade.com office@dutchsustainabletrade.com Foreword A tipping point happens when a critical mass of people begin to shift their perception of an issue and take action in a new direction. As I look across the global landscape, I feel that we are approaching a tipping point concerning global sustainability. It is catalyzed by at least three important realizations by business, government, and civil society: The first is a realization that the world is finite and that a growing population with a higher ambition for living standards will inevitably lead to a world which will be resource and carbon constrained. The second is the realization that to solve the challenges for this future world we need systems solutions. We cannot solve individual problems in silos. The...
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...advertising report required as a component for assessment of our group in the course “ADVERTISING” This report provides an overview of how the advertising plan should be made when a product is being launched in the market. What are the tactics and strategies used in order to implement the overall campaign plan Please do not hesitate to contact us if you have any questions regarding this report. Yours Sincerely Raieef Qureshi INTRODUCTION: Lipton was created at the end of the 19th century by Sir Thomas Lipton. Under the slogan “direct from the tea gardens to the tea pot,” this entrepreneurial businessman wanted to make tea a popular and approachable drink for everyone - with a high quality but reasonably priced product. The Lipton business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the US and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business. Over the course of a century, Lipton has become a dominant tea brand in many markets. The brand is well-represented in many...
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...Differentiator and value proposition Today every brand in the market speaks of the health benefits of tea. To that extent this valuable claim is now a generic claim. Looking deeper into the market one notes that it is the strength of the individual brands that dominate the market. The global leaders Lipton, Tetley, Brook Bond and the like have won the ‘trust’ of their consumer and have the strength to market leading tea variants without any association to Ceylon Tea. Of course they have Ceylon Tea products too. However, the fact is that the strength of their individual company brand makes it possible for them to market the larger share of their volume and variants without the Ceylon tea story. Looking into the shelves of supermarkets particularly in the developed markets we note many tea brands with no reference to Ceylon Tea at all. Given this scenario it is time for us to ask the question, is Ceylon Tea losing its power to influence the consumer with a relevant, credible and differentiating value proposition? Call for urgent consumer research We often speak of Ceylon being famous for quality tea, and some may assume that the entire world knows about it. However, when have we last verified this assumption through in depth research in the key markets? Is it our own perception or that of those involved in the tea trade, or only in the minds of the older generation? Does today’s ‘new consumer’ know about it? Even more important, when another brand of tea (local or foreign owned)...
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...BRISK® CASE STUDY Overview Customer Profile The Pepsi-Lipton Partnership is a joint endeavor between two major brands, Pepsi-Cola North America and Unilever. This entity is responsible for the Canadian promotions of Lipton, one of the leading beverages in the global market. Business Situation The company launched an entirely new Brisk® Ready-to-Drink Iced Tea early last year. The brand recognized the emerging presence of a new media segment and required assistance in exploring the potential of direct-client communication using Mobile and Web technology. Addictive Mobile Corp. Solution Addictive Mobile Corp. combined marketing savvy with their licensed technology to design and power a Txt 2 Win Contest campaign, “Beat the Blues with Brisk®”. The promotion incorporated both web and mobile mediums to enhance customer experience. 1 Benefits Brisk® gained the ability to offer contestants premium web and mobile content while providing an amusing, interactive and instantaneous entry method. This trend setting use of wireless technologies created a consumer buzz while allowing the brand to track promotional results in real-time. PROFESSIONAL SOLUTION Traditional media assisted in forming initial contest awareness with high school party announcements, beverage cooler stickers and high traffic website banners. Consumers were informed they could enter the Brisk® contest for chances to win a grand prize and one of the weekly draws, 1001 prizes in all. Participants sent an SMS message...
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... MARKET RESEARCH INSTITUTES MISSION To provide clients with all data and information required to be able to take best marketing and commercial decisions To Understand requirements, opinions and behaviors on Markets To Propose a reading sheet for the society, understand social behaviors, and understand markets evolutions - - 4 Copyright ©2012 The Nielsen Company. Confidential and proprietary. MAIN COMPANIES IN FRANCE : • Turnover = around 2 milliards € • How many people engaged in Market research sector : 11 300 • • • • • • • • • • • • • • nielsen, TNS Secodip Worldpanel (Kantar group) IMS, IRI, GFK, NPD, IPSOS, IFOP, TNS Sofrès, Research International, Millward Brown, BVA Médiamétrie … 5 Copyright ©2012 The Nielsen Company. Confidential and proprietary. MARKET RESEARCH SECTOR SPLIT IN 3 : QUALITATIVE SURVEYS: (15%), QUANTITATIVE SURVEY (AD HOC SURVEYS): (52%) PANELS SURVEYS AND CONTINUOUS TRACKING (33%). Source: Syntec NIELSEN WORKS ON THESE 3 PARTS, BUT OUR CORE BUSINESS IS PANELS, BOTH RETAILER AND CONSUMER PANELS. MARKET RESEARCH OVER EACH ACTIVITIES, BUT MAINLY ON FAST MOVING GOODS (FOOD, DRINKS AND DRUGS) 6 Copyright ©2012 The Nielsen Company. Confidential and proprietary. WHY PURCHASE RESEARCH DATA? Why do manufacturers and retailers purchase research data? Information to assist with marketing planning, review and comparison. What information can...
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...Samir Lakhani Stephen Martinek Mahek Parikh Unilever Group Submission Unilever is a consumer goods company that has a variety of product types to serve consumers across the globe. For this case, Unilever’s tea brand, Lipton, is focused on sustainability for the production of their tea production. Sustainability is defined as a method of using a resource so that the resource is not depleted or permanently damaged. In other words, it is focusing on a production method that is sustainable long-term. Currently, Unilever has about 25% of their tea from Rainforest Alliance Certified farms, which brought forward gains in the environmental, social, and economic sustainability of tea production. It was one of the few brands of tea that was able to have ethical practices while growing beyond a niche market into a larger market share. However, Unilever is looking to source 100% of its agricultural raw materials sustainably (Rainforest Alliance certified) by the year of 2020. This is a lofty and ambitious goal that requires a supply chain transformation, as nearly 8 million tons of commodities across 50 different crops are required for production. There are multiple reasons for this action: to have ethical production practices, to make their brand favorable to customers, and to increase the longevity of their farms. However, they will bear costs of having to increase the market price and convincing their suppliers to be certified. For example, the firm...
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...underdeveloped. We are not saying that our economy ranks in pari-passu with that of Western Europe. However, we are so far away from where we started as a nation. Hence the Nigerian economy have being attaining a measure of relative sophistication over the years. This is evident in the recent development in the Nigerian financial system. The hitherto esteemed financial practices which are assumed to be the exclusive practices of developed Western Eutopean economies continue to assure prominence in Nigeria. Nay, in all the developing countries. These financial practices manifest themselves in the area of corporate finance. Such practices among others are leasing, loan – sydication and merger – acquisition which is the focus of this study. Merger – acquisition has been defined in many ways ostensibly to bring to light its legal and literal meaning. It will suffice however, to define merger acquisition as a combination of two or more existing companies. Such combination of companies take different forms. Various reasons and theories have been advanced to be the moving focus behind merger execution. The main focus of all the theories or reasons advanced have been the achievement of synergy. What has come to be known in financial parlance as 2 + 2+ = 5. That is, the value of the combined company being greater than the addition of the value of the companies as separate entities. The word merger – acquisition continues to echo and re-echo in Nigeria recently...
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...Edward Mathewson Arizona Iced Tea 12/8/14 MKT/421 - MARKETING Instructor: STEPHEN GROTHE Arizona Iced Tea There are many different brands to choose from but when it comes to my favorite there is one that sticks out, Arizona Iced tea. I am what you could say am obsessed with the original flavored iced tea. While many may say obsessed is a very strong word, the reason I say this is because I drink my coffee in the morning then I go straight to my iced tea for the rest of the day. I do not drink anything else other than iced tea and coffee. On my way to work I purchase 2 cans which is what gets me through the day and when I go home I always have a gallon in the fridge waiting for me. The cans I buy I do so from the same gas station everyday which has led to a personal friendship with me and the owner because of my loyalty to them. I also purchase the gallons of iced tea from the same convenient store because they always have the price of buy 2 gallons for $5.00 which is by far the best deal around. Passionate for Arizona There are many reasons that I am so passionate about Arizona iced tea and why I refuse to drink any other brand. For one the taste is something that I have become accustomed to and do not like the taste of any other brand. Their number 1 ingredient is premium brewed tea using filtered water along with 100% natural ingredients, which is the reason I feel the taste is better than others who use artificial flavors. The loyalty that Arizona has for its consumers...
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...Question: Should Brisk be advertised on prime time TV or with viral ads in the month following the Super Bowl ad? Why? Answer: Background: Mekanism (new digital media advertising agency hired by PLP) was tasked to work on re launch of Brisk Iced tea, a RTD (ready to drink) tea brand which was launched in mid-1990s by PLP (Pepsi Lipton Tea Partnership) and had its glory in 90s and later became stagnant. Brisk’s first major advertising campaign was launched in 1996, was a series of television and print ads featuring clay based animation versions of iconic characters and celebrities. After Brisk campaign wrapped up in 2002, PLP stopped investing in mainstream advertising, opting to support its core brand, Lipton. PLP decided to invest heavily in promotion of this brand in 2011. Judgement: PLP should go for viral ad and below are supporting reasons in importance order: * While Brisk’s sales were growing, the brand was falling behind its competitor in terms of its social media presence. Mekanism concluded from one study comparing social media campaigns that Brisk was practically absent from this space (Exhibit 5) * Table A below displays sales and market shares from 2007-2010. It’s to be noted here, Brisk sales were growing fast with minimal consumer oriented promotion was done in this period with the exception of package redesign, POS display and other trade promotion activity * For fiscal ending May 2010, Brisk was 3rd in rank and it’s sales volume growth...
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