Problems Facing AriZona Tea
One of the largest issues facing the industry is competition. With numerous brands of tea offering similar products with nearly the same benefits, it’s difficult for any one brand to stand out. In addition to the intense competition, ready-to-drink tea faces problems with availability. AriZona tea, specifically, is only sold in certain retail stores in the United States and only in a few countries outside of North
America. Also, the lack of advertising has created problems for the company. Without advertising, it is harder for the brand to compete against Lipton, Snapple and Nestea, which produce national advertisements are a regular basis.
Opportunities Facing AriZona Tea
One of the greatest opportunities facing the brands in the ready-to-drink tea industry is the ability to expand their products. Companies can expand their brand by introducing new types of drinks, new flavors, new ingredients or they can expand a product and/or brand line. Another thing that is quickly gaining popularity in the world today is the promotion of positive health benefits through organic products. This is something that AriZona tea, as well as its competitors, have started promoting through their all-natural, gluten-free drinks
Target Description
This report will focus on all users of ready-to-drink tea who consumed AriZona tea within the past six months. Our specific target market is males and females ages 18-34 who are high school graduates, attended college and live in the southern region of the United States. Our campaign will focus on people who are young and vibrant, appreciate creativity and have a desire to take part in bold new experiences. 3
Our target market will consist of people who are extroverted and like spending time with friends, but also enjoy meeting new people. They possess a thirst for everything life has to offer them.
Marketing and Advertising Objectives
We will be concentrating on two specific objectives. The first objective involves: each month of the year
2013 AriZona tea will attempt to make 60% of both females and males between the ages of 18 and 34 who drink AriZona Tea aware that the brand is the number one in the Ready-To-Drink-Tea market. The second objective involves: each month of year 2013 AriZona Tea will attempt to increase the knowledge and recognition of the brand slogan to 50% of females and males between the ages of 18 and 34 who drink AriZona Tea.
Budget
We have determined an advertising budget of $10,100,000 in order to reach our objectives. To achieve that figure the methods used were the Percentage of Sales. We chose to analyse the Ad/Sale Ratio of
Lipton, which is the major competitor of AriZona tea to establish AriZona tea 2012 budget. Creative Strategy
AriZona tea has never invest on advertising, therefore, the advertising campaign that will be conducted will have to be creative and strong enough to have a great impact in the target market and keep AriZona tea as the first brand in the RTD Tea market. We are using our target market to creatively depict the adventurous, young and fun-loving AriZona tea lover.
Media Mix and Recommendations
According to the MRI data, our target market for AriZona tea includes moderate to heavy users of radio,
TV and magazines. Considering that the budget is limited to $10 million, the media mix will be 4 composed by radio spots, print ads in magazines and outdoor advertising. We believe that radio offers high frequency and good coverage locally as well as regionally. Our radio advertisements will be focused in the southern region of the United States. We believe that magazines will be the best option in this media mix since AriZona tea’s target are heavy users of magazines. This media will give efficient coverage and the opportunity to see the ad every time there is a chance the reader chooses to re-read the magazine. For our final media recommendation we are going to concentrate on outside
(billboard) advertisements. We think this will reach a large part of AriZona’s target and since most messages stay in one place for an extended period of time we will be able to reach our target market more than once.