Lipton V/S Tetley - Corporate War


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Lipton and Tetley are the leaders in the beverage market.
A competitive analysis has been drawn between the two . It includes company profile, history, financial profile, marketing mx , SWOT analysis, awards and social responsibilities of the two .

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Lipton V/S Tetley - Corporate War

  1. 1. MARKETING PROJECT 3 CORPORATE WARS Done By- Yashaswini Agarwal 2012
  3. 3. TABLE OF CONTENTS 1 Acknowledgement 2 Certificate 3 Corporate Wars 4 Introduction of Company – History 5 Financial profile 6 Marketing Mix – the 4 P’s 7 SWOT analysis 8 Questionnaire 9 Survey Results 10 Awards / Social responsibility
  4. 4. V S
  6. 6. INTRODUCTION OF COMPANY- TETLEY Tetley, a wholly owned subsidiary of Tata Global Beverages ,which is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, Tetley's manufacturing and distribution business is spread across 40 countries. It is the largest tea company in the United Kingdom and Canada and the second largest in the United States by volume.
  7. 7. • In 1822, brothers, Joseph and Edward Tetley, sold salt from a pack horse in Yorkshire. They started to sell tea and the venture became such a success that they set up as tea merchants, "Joseph Tetley & Co.", in 1837. They relocated to London in 1856 and set up "Joseph Tetley & Company, Wholesale Tea Dealers". It was the first company to sell tea in tea-bags in the United Kingdom in 1953. • In 1871, Joseph Tetley took his son, Joseph Tetley Junior into the business. HISTORY – BIRTH - TETLEY
  8. 8. • Tetley Tea expanded into the blending and packing of tea. By 1888, Tetley Tea expanded into the United States, and began to distribute tea in the country. • Joseph Tetley Junior took over the business in 1889, after the death of his father. Tetley Tea continued to expand in America, and by 1913 Tetley Tea had established plants in New York City. • In 1953, Tetley Tea launched the Tetley Tea Bag in Britain. • Tetley continued to innovate with the introduction of the round tea bag to the U.S. in 1992, that literally changed the shape of the market. Tetley further revolutionized the industry with the unveiling of the first drawstring tea bag , in 1997. HISTORY TETLEY
  9. 9. • The Tetley Group was bought by India's Tata Group in February 2000 for £271 million. It was one of the largest overseas acquisitions by an Indian company at that time. Tata Group is one of India's largest business conglomerates comprising more than 100 companies including Tata Global Beverages. The acquisition has helped Tata's business ambitions to hold a global tea company. • Tetley Tea, London's favorite household tea brand, announced its 175th anniversary, celebrating how it has helped bring the nation together over quality tea since 1837.
  10. 10. INTRODUCTION OF COMPANY - LIPTON Lipton Tea is a British tea company, founded and named after its original owner, Sir Thomas Johnson Lipton. Lipton tea began in 1870 and is now one of the largest tea traders in the world. It is currently owned by the Unilever Company.
  11. 11. • Lipton was born in 1850, in Glasgow, Scotland. In 1865, Lipton moved to the United States where he held various jobs, including working on a tobacco farm, a rice plantation and a streetcar. Lipton, however, was inspired by working in a department store's grocery. • While working there, he witnessed and learned the power of American merchandising. American merchandising was often involved outrageous images or actions, with catchy slogans designed to grab as much attention as possible. Some advertising campaigns were not adverse to publicity stunts. • Lipton returned to Scotland and opened his own grocery store in 1871. Following from the lessons learnt in America, he promoted the store by conducting publicity stunts. HISTORY - BIRTH
  12. 12. • Lipton's first publicity stunt was a parade of the largest hogs in captivity bearing the sign, "I'm going to Lipton's. The best shop in town for Irish bacon!" This stunt jammed traffic and grabbed headlines - exactly Lipton's intent. • By 1880, Lipton had twenty stores, and by 1890, Lipton owned three hundred stores and had become a household name. • Lipton venture into tea in 1890. On his way to Australia, Lipton made a secret stop to Ceylon. During that year, disease had ruined the coffee plantations, and plantation owners were growing tea instead. HISTORY - BIRTH
  13. 13. • Lipton bought five bankrupt plantations to supply his stores in Britain, and used the slogan, "Direct from the Tea Gardens to the Teapot". Lipton intended the public to associate his name with Ceylon tea. • Lipton pioneered the idea of selling tea as individual packets, for longer freshness, consistent quality and guaranteed weight.
  14. 14. • The Lipton tea business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the United States and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business from Allied Stores.
  16. 16. FINANCIAL PROFILE – TETLEY Tata Tea, a mere $114 million company that sold commodity tea, acquired the global brand Tetley for $ 450 million, three times its size. All Tata companies together earned just around $9 million in 2000 when Tata Sons acquired Tetley . RABO BANK International, financial advisor and lead arranger for the leveraged debt financing package in Tata Tea's acquisition of Tetley, had planed to finalize seven lead managers and managers to syndicate a 165-million loan by June-end 2000 .
  17. 17. Tata Tea then vice-chairman R K Krishna Kumar said that the acquisition will be financed with pound 70 million (about Rs 4.874 billion) of equity. Pound 60 million will be from Tata Tea India and pound ten million from Tata Tea Inc USA, a 100 per cent subsidiary of Tata Tea.
  18. 18. FINANCIAL PROFILE – LIPTON • Unilever was the leader of the global tea industry in 2007. It purchased around 12% of the world’s total black tea production and was strongly placed in the market with leader brands. • Lipton was the global market leader in both leaf and ready-to- drink tea, with a global market share nearly three times larger than that of its nearest rival. It was one of Unilever’s 12 major brands and was available in 110 countries. Lipton’s main markets were Western Europe, North America, the Middle East and parts of Asia. • Lipton sales in 2007 were of €3 billion. • PG Tips was one of the two leaders of the UK tea market, with consumers drinking over 35 million cups per day.
  19. 19. FINANCIAL PROFILE – LIPTON • In India, a market that consumed approximately 25% of the tea the company sold worldwide, Unilever was also the market leader (for packed tea), with the brand Brooke Bond. • Back in 2005 Lipton was not perceived as a shiny, vibrant brand and was suffering the consequences in the market. • In 2006 an assessment group made up of brand developers, supply managers, corporate responsibility executives, outside consultants and Unilever managers from diverse functions was created, and Lipton became one of the first two Unilever brands to run the brand imprint exercise.
  21. 21. Product refers to the goods and services offered by the organization. It is the bundle of benefits of tangible and intangible attributes which a marketer offers to a customer for price. Needs of the consumer must be recognized before deciding the product to be developed. It consists of product line and product range, product design, product package, product quality, product labeling, product branding, after sales services and guarantees. PRODUCT MIX PRICE MIX Price, the second element of marketing mix is the value of product expressed in terms of money. Pricing decisions and policies have a direct influence on sales volume and profits of business. Many factors like Demand, cost, competition, government regulation etc. must be kept in mind while fixing price of a product or service.
  22. 22. Promotion is an important element of marketing mix as it refers to a process of informing, persuading and influencing a consumer to make choice of the product to be bought. Promotion is done through means of personal selling, advertising, publicity and sales promotion. It is done mainly with a view to provide information to prospective consumers about the availability, characteristics and uses PROMOTION MIX PLACE MIX Goods are produced to be sold to the consumers. They must be made available to the consumers at a place where they can conveniently make purchase. Place mix stand for arrangement for smooth flow of goods and services from the place of manufacture to the place of consumption. It is concerned with creation of place, time, and possession utility.
  23. 23. CLASIC BLACK TEA - a unique blend of quality Assam teas specially crafted for tea bags or packet format, famed for its distinctive aroma and rich colour TETLEY - PRODUCTS BRITISH BLEND - British Blend combines premium Kenyan and Assam teas to deliver a richer, full-bodied blend with superior tea flavor, body and color.
  24. 24. TETLEY FLAVOURED TEAS – a choice of classic and unusual flavours, including earl grey, masala and lemon, to brighten any day. TETLEY GREEN TEA- A beautifully smooth blend of green tea that is rich in naturally occurring oxidants and available in a over 13 popular variants, including ginger mint & lemon, lemon & honey and jasmine
  25. 25. TETLEY T4KIDZ - Tetley in the UK launched T4KIDZ, a totally new kind of hot drink, specially blended for kids from Redbush and Honeybush. Available in three fun flavours – Pure, Vanilla and Strawberry – T4KIDZ is caffeine-free, sugar-free but naturally sweet tasting. TETLEY ROOIBOS - also known as Red bush or Red Tea. Rooibos is a tea-like plant only found in the Cedarburg mountains in South Africa. It has a gorgeous red colour that is naturally sweet and caffeine free. The Tetley Redbush range also includes a variety of flavours to suit different palettes, including Vanilla and Orange
  26. 26. TETLEY INFUSIONS - Real- brewed, naturally sweetened Tetley tea with no preservatives, artificial sweeteners, flavours or colours which blends perfectly in water for natural, refreshing tea anywhere TETLEY FRUIT AND HERBAL – a range of over 10 fruit and herbal blends that will excite and entice the most discerning palettes, ranging from Peppermint to Blueberry and Ginseng
  27. 27. TETLEY CHAI LATTE - An exciting new product competing with both coffee and tea, the range includes three flavours - classic, vanilla & berry. TETLEY COLD - light, refreshing fruit infusions specially created to brew in cold water, naturally caffeine free with no added sugar, no artificial sweeteners and only 4 calories per serving (200ml), available in two variants –Strawberry with blueberry or raspberry.
  31. 31. TETLEY - PRICE Lemon Chamomile Tea $ 4.53 Peppermint Tea $ 4.70 Decaffeinated Ice Tea $44.85 Black Tea British Blend $ 4.86 Earl Grey $ 4.03
  32. 32. TETLEY - PRICE Rooibos Vanilla and Pear $ 8.40 Green Tea Decaffeinated $ 12.73
  33. 33. LIPTON - PRICE Flavoured Black Tea Dhs. 7.25 Black Tea Dhs. 7.25 Herbal Infusion Dhs. 7.25 Pyramid Tea Bags Dhs. 9.65 Chai Latte Dhs. 8.75
  34. 34. LIPTON - PRICE Earl Grey Dhs. 4.95 Clear Green Dhs. 16.75
  35. 35. • Tetley has its products reaching out to a number of countries. Some of them are: South Africa Mozambique Namibia Zimbabwe Ghana Nigeria India Kazakhstan Slovakia Czech Republic TETLEY – PLACE France Italy Cyprus Greece Latvia Faroe Islands Lithuania Portugal Spain Switzerland Mongolia Uzbekistan Australia UK Poland Bulgaria Hungary Estonia Romania Malta Belarus Saudi Arabia UAE Kuwait Oman Bahrain Qatar USA Canada
  36. 36. TETLEY – PLACE
  37. 37. • Available in over 110 countries, Lipton is particularly popular in Europe, North America, Africa and the Middle East, parts of Asia and Australasia (Australia and New Zealand). Despite its British origins, Lipton black tea (such as Yellow Label) is not marketed in the UK and is not found in mainstream British stores. However, Lipton Ice Tea and fruit teas are available in the UK. TEA IN U.A.E • Until 1998, the tea for the Arabian markets was sourced from the United Kingdom. The strategic geographical location between tea growing areas and the world’s largest tea markets encouraged Unilever to establish its first fully automated tea factory in 1998 in Jebel Ali Free Zone in Dubai. LIPTON – PLACE
  38. 38. While the factory was originally conceived to supply to the local markets, the site has since grown in capacity and geographic reach. With production volumes increasing from 5000 Tons to 25,000 Tons in 10 years, the site is today a global sourcing hub exporting to 53 countries worldwide. • Unilever, on 12th May 2009 celebrated the Lipton Tea factory's (Located in Jebel Ali Free Zone) 10 Years of Excellence. LIPTON – PLACE
  39. 39. TETLEY – PROMOTION Tetley Promoting – Green Tea Decaf Tetley Promoting – Tetley Refresh – Mint Ginger and other flavours
  40. 40. MINI, the iconic British auto brand, embarked on its greatest cross country road rally ever – “MINI TAKES THE STATES” and Tetley Tea was there! The extravaganza took place from July 4-13 2012 with 5000+ MINI enthusiasts traveling from New York to Los Angeles .Tetley went along for the ride with a Tetley wrapped MINI as part of the festivities. Road rally participants enjoyed samples of Tetley British Blend, English Breakfast and Earl Grey.
  41. 41. Tetley UK Website provides its customers with locations from where they can buy Tetley Tea
  42. 42. An advertisement of Lipton tea in 1892. LIPTON – PROMOTION The advertisement say’s – Lipton’s tea have the fastest sale in the world. Over 10,00,000 packages sold weekly.
  43. 43. Lipton promotion – Buy the Lipton Milk Tea Promo Pack and WIN INSTANT PRIZES. Lipton promotion – With Lipton Yellow Label Tea bags win prizes like T.V, mobiles, Cameras and much more !
  46. 46. • One the oldest Tea Brand in the World: Tetley has been around since 1837, and is among the oldest living brands in the world and has been making tea for more than 160 years. • Association with TATA Group: It is owned by TATA Group of Co. which is the largest tea manufacturer and distributor of tea in the world. • Pioneers: Tetley has always been the pioneer in inventing new things when it comes to tea. Their inventions include the tea bag and the round tea bag. • Promotional strategies: Tetley is among those brands that have made a mark in very especially in the interiors. It battled with players like Tapal and Unilever. It was only possible because of their strong promotional activities. TETLEY – SWOT ANALYSES STRENGTHS
  47. 47. TETLEY – SWOT ANALYSES STRENGTHS Quality: Quality has always been Tetley’s strong point. The price driven market is now becoming a little quality conscious and it is helping Tetley’s cause. Association with Lakson: It is partly owned by Lakson Pakistan, which deals in many diverse products and has full experience and knowledge of the Pakistani environment & its consumers.
  48. 48. • Experienced and quality management. • Strong Ethical values • Strong financial position • Strong company name • Success of the slogan • Quality and variety / Rich taste and flavour / Unique aroma • Effective and attractive packaging / Good packaging • Brand recognition / Brand Visibility • Accessibility LIPTON – SWOT ANALYSES STRENGHTS
  49. 49. TETLEY – SWOT ANALYSES WEAKNESS • Market share: Out of the total share Tetley has only been able to capture 7% of the national market. One reason is the fact that they have not entered the metropolis areas with full force as of now. •Customer Preference: Due to recent increase in recent tea prices many consumers have shifted to unrefined tea better known as ‘kholi Chai’ because of the cost factor. Since most of it is smuggled, so Tetley and other good brands are not able to compete with them. •Customer Awareness: Customer Awareness is another issue that the company needs to work on. A lot people are still unaware that Tetley is available in the urban centers.
  50. 50. TETLEY – SWOT ANALYSES WEAKNESS •Distribution: Their poor distribution is making matters worse. Tetley is either not available at the stores, and even if it is there will only be one SKU available per store. •Advertising: It only advertises in the rural areas and no mentionable efforts have been made to capture the urban population
  51. 51. • High Price of the products • Substitutes of the product • Communication problems – Yellow label is absorbed so much in the minds of consumers that they will not be interested in a new product. Most of the Lipton loyal customers will still prefer using the Yellow Label because it has a sense of trust and commitment in terms of taste. LIPTON – SWOT ANALYSES WEAKNESS
  52. 52. • Unexploited rural markets • Increasing number of working youth who prefer tea • Need for tea in Asian countries TETLEY – SWOT ANALYSES OPPORTUNITY
  53. 53. • Research and development • Makes people active • Brand is the part if traditional drinking habits • Expansion in other areas of the country is easily possible. • Corporate tie-ups / Hotel tie-ups • Cheaper packets for rural areas LIPTON – SWOT ANALYSES OPPRTUNITY
  54. 54. TETLEY – SWOT ANALYSES THREATS • Strong presence of regional competitors • Competitive prices • Less production
  55. 55. • Strong competition in urban areas. • Internationally increasing tea prices • Political conditions in the country may be obstacles in export process • High inflation in the country can negatively affect the brand. • Preference of people having coffee or other beverages LIPTON – SWOT ANALYSES THREATS
  56. 56. • Which brand do you use? - Lipton - Tetley • How long have you been using it ? - Some months - 1yr - more than 3 yrs. • Do you feel you are charged according to the quality of the product ? - Yes -No • Do they offer a wide variety of products to you ? - Yes - No QUESTIONNAIRE • Are you made well aware of a new product of this brand coming to the market? - Yes - No • Do their advertisements provide relevant information about the product? - Yes - No • Taste wise, how would you rate this brand : -Excellent - Very Good -Good - Alright - Not at all pleasing
  58. 58. We come to know that out of 10 customer, 6 customers prefer Lipton in terms of quality. Lipton is again chosen by 10 customers when asked regarding the variety offered. Lipton has a variety of tea flavours available for its customers. PRODUCT 10 customers were surveyed regarding their choice of Lipton or Tetley. They were asked, “Which brand provides better quality of tea?” and “Which brand offer a wider range of tea?”. 0 1 2 3 4 5 6 7 8 9 10 Quality Variety 4 0 6 10 Tetley Lipton
  59. 59. From the pie chart we can derive that 60% customer find the prices of Lipton tea to be as per the quality offered to them. They are attracted by its fragrance and colour . We also found out that as Lipton has a variety of tea’s available the prices differ and are suitable to all. PRICE 10 customers were surveyed regarding their choice of Lipton or Tetley. They were asked, “Do you feel you are charged according to the quality of tea provided to you ?”. 40% 60% Price par Quality Tetley Lipton
  60. 60. Here, in Dubai both the brands Tetley and Lipton are available equally, 50% each . But, when asked in detail customers said they found many outlets selling Lipton. Being a Non- Indian brand it is more famous among both the local and expatriate population. Mainly, the Indian retail outlets provide their customers with Tetley. PLACE 10 customers were surveyed regarding their choice of Lipton or Tetley. They were asked, “Is Tetley and Lipton easily available in your localities retail outlets?”. 50%50% Availability Tetley Lipton
  61. 61. Customers feel that Lipton has more colourful and attractive promotional advertisements. In, Dubai the customers do not get to see the advertisements of Tetley in papers or TV, therefore the graph show 10 – 0 . The customers have not really seen Tetley promoting their brand in this region. PROMOTION 10 customers were surveyed regarding their choice of Lipton or Tetley. They were asked, “Do the advertisements provide enough and relevant information about the new product in the market? and “Are the advertisements attractive?”. 0 1 2 3 4 5 6 7 8 9 10 Relevant Information Attractive 2 0 8 10 Tetley Lipton
  62. 62. • Tetley has been rewarded for all the hard work that constantly goes into satisfying their customers as they picked up the Gold Medal Foodservice Brand at the Federation of Wholesale Distributors . • The Tetley brand, scooped the Large Employer title at the National Training Awards (NTA) in recognition of its outstanding contribution and commitment to training, learning and development in the workplace in 2011. TETLEY – AWARDS
  63. 63. • Unilever received the MRM Business Award in the Manufacturing (Free Zones) category for its Lipton Tea Factory which was recognized for its performance on strategic initiatives, leadership perspectives, quality imperatives, corporate culture and corporate social responsibility. The award was presented by his Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister and Vice President of the U.A.E. and ruler of Dubai to Sanjiv Mehta, Chairman, Unilever North Africa Middle East. • They were also nominated for the SLAA Rising Star Award 2012 and won the property Management Company of the Year . • The Lipton Tea Factory has also received a number of certifications to internationally recognized standards of quality and consumer safety and has also been awarded for its excellence by the Japanese Institute of Plant Maintenance. • In 2007, their factory was awarded gold in the" Health and Safety Award- 2007" from EHS, the Environment, Health and Safety regulatory arm of Dubai World. LIPTON – AWARDS
  64. 64. TETLEY – SOCIAL RESPONSIBILITY Caring for People At Tetley, they do what's right for their tea drinkers, their team and their world. Tetley cares about the social and ethical conditions involved in growing the tea they buy. They believe their success must not be at the expense of the people or the environment that make that success possible. That's why they are committed member of the Ethical Tea Partnership (ETP). The ETP is a non-commercial alliance of 18 international tea packers working together to promote social responsibility in the world tea trade and assure the ethical sourcing of tea. The ETP monitors the living and working conditions on tea estates and works with estate owners to see that appropriate improvements are made. Sometimes estates choose not to meet the minimum standards. That's when they draw the line and stop buying tea from them. So when you buy Tetley Tea, you can feel good knowing that every cup you enjoy was produced in a socially responsible way.
  65. 65. LIPTON – SOCIAL RESPONSIBILITY Lipton Tea, an industry pioneer in sustainable agriculture practices and social responsibility, is undertaking a major expansion of its long term commitment to sustainability. Selected Lipton Tea products bearing the Rainforest Alliance-certified seal are available on grocery store shelves across the United States. The brand is also launching an integrated partnership with National Geographic Global Media to highlight the social, economic and environmental benefits of Lipton's sustainability practices. In 2007 Lipton set out to lead the industry by committing to purchase all of its tea from sustainable, ethical sources. Since then, the company has worked closely with the Rainforest Alliance, a non-profit conservation organization that works around the world to develop and promote sustainable standards in farming, forestry and travel, to certify as sustainable all of the tea estates that supply its tea.
  66. 66. CONCLUSION • Which brand is more preferred ? Both the 2, Tetley and Lipton have a good share in the market. According to my project result, I have found out that customers have been preferring Lipton for their tea brand. Their are many reasons to their choices – • Taste • Aroma • Cost • Variety • And most importantly – Availability We find that Lipton is widely available in Dubai as compared to Tetley. Customers here are more comfortable in using an already established brand who’s quality they trust. They also show ‘brand loyalty’ towards it.
  67. 67. CONCLUSION • We find that the goodness of a cup of Tetley tea is enjoyed in close to 11 million homes in the UK and in 70 countries worldwide. Acquired by Tata in 2000, Tetley is a true leader in black, decaffeinated, red bush and green tea. Currently market leader in both the UK and Canada, the brand's strong innovation agenda includes the first launch of Extra Strong tea, for that fuller flavour, Tea for Soya, specially created to be drunk with soya milk, and ‘Infusions’ – a liquid ‘Real Brew’ tea mix for water, created exclusively for the Canadian market. • We see that Tetley has captured the UK and Canadian market much stronger than other countries.
  68. 68. BIBLIOGRAPHY • • • • • • • • • • supply-chain.pdf • • sustainability-initiative-62159847.html • •
  69. 69. THANK YOU