Page | 1 Assignment 1 (10%) Lecturer: Drew Smylie Roger Thompson (300653701) Principles of Marketing: MKTG116-104 Section: Marks Your marks: available: Mission statement 5 Objectives 5 Situation analysis 25 Target markets 15 Marketing mix Product 5 Price 5 Promotion 5 Distribution 5 Presentation and formatting – spelling , 10 grammar and neatness/creativity, including a title page and this rubric Total: 80
Company Business mission statement Lipton is owned by a bigger parent company called Unilever. Unilever’s mission statement is aimed at meeting consumers demand by continuously adapting its strategies and products to meet new consumer trends, needs and wants to providePage | 2 customer satisfaction. Unilever also makes it their purpose to create products that promote vitality in its customer’s life by providing products that are healthy, good in quality, taste great and easy to enjoy without being time consuming. Objectives Unilever’s Lipton ice tea are to provide the public with a healthy alternative when compared to other soda beverages and dominate the market of ready-to-drink teas while still keeping a strong hold on its “tea” niche market. The primary financial goal of this product is to gain maximum market share over the first 5 years, and reach market saturation within the following 5 years. Situation analysis: As people become more conscious of what they consume they tend to buy products that have healthy attributes to its contents. Lipton ice tea is Unilever’s answer to this new consumer demand. Internal Strengths: 1. Lipton as a brand has been in operation for over 100 years in the tea making industry and has become a well trusted brand in its market. 2. The products that are produced by Lipton are also naturally healthy to it consumers and therefore has the advantage of being a health beverage. 3. The ingredients needed to make the product/ ice tea are grown on estates which are owned by the company reducing the cost of making the product. 4. Lipton is Unilever global consortium, which is a multinational, fast moving consumer goods company who serves consumers worldwide. 5. Due to partnership with Pepsi the product is well distributed. Weaknesses: 1. Cost of producing the ice tea drink is higher than the other products produced.
2. Sugar content of the drink is higher than those of fruit drinks. 3. Shelf life of the product is not as long a soda pop. 4. Not as healthy as the other products produced by Lipton.Page | 3 Opportunities: 1. Lipton ice tea can dominate the niche market of healthy refreshment drinks. 2. Lipton ice tea can be the fore leader to the type of soft drink that consumers will want to drink in the future. 3. Advertisement/brand building opportunity by using ice tea to be an introductory product to a healthier choice for kids. 4. Has the possibility to get support from the government to provide citizens with a healthy alternative to sods pops. 5. Unilever PepsiCo can make a deal with retailers ensure retail shelf space and prominent positioning for Lipton Ice Tea Threats: 1. Consumer loyalty to the new product is not yet achieved. 2. Consumers might not enjoy the new taste. 3. Consumers might be skeptical to the drink because it’s called tea. 4. When compared to other health beverage Lipton’s ice tea might seem no so impressive. 5. The product is not as healthy as the rest of Lipton products and can cause damage to brand name. Target market(s) There are two major target markets for ready-to-drink ice tea: One group is the consumers on the go: These are employees, students, and other consumers who lead a busy lifestyle. The hectic American lifestyle demands for optimize productivity with lesser time consumption. Therefore, consumer tends to buy products that are accessible and readily available.
Convenience has dominated the market, particularly the food and beverage industry. Health conscious consumers: Specifically the baby boomers who patronize anything healthy. The positive reviews as well as the studies on the benefits ofPage | 4 tea drinking have stirred an interest in tea drinking. Marketing mix Product strategies: To ensure customer satisfaction research and develop of new flavors of ice tea are to be provided to consumers to allow many different taste of ice tea to select from. Continual and well-timed response to consumer wants and need will ensure that the ice tea is providing consumers with their current preference. Distribution strategies: Unilever already has a strong presence in the emerging markets around the world. An alliance with PepsiCo should be strengthened/ kept. PepsiCo currently distributes its products across more than 200 countries worldwide and is one of the top distributors in the world. Promotion strategies: The use of multiple strategies for selling its products is more effective. First the product can be introduced by using the “Push” method of promotion; this makes the product have a presence on the shelves. Then the product can be promoted by using the “Pull” selling strategy. This will increase the sales of the product by making the consumers more aware of the product and familiar with it. Pricing strategies: The Market-oriented pricing strategy is necessary to ensure that consumers will purchase the ice tea, when they compare the price and benefits to that of any soda pop. Implementation, evaluation, and control: Implementation: In relation to the company’s promotional schedule, it will be reviewed every 3 months in order for the company to meet deadlines Evaluation: Evaluations will be based primarily on meeting sales and market share expectations. Through audits, team leaders and management staff will document progress in order to continually improve quality of all production. Control: Total Quality Management (TQM) is met within the company. Lipton will work in accordance with the government regulations of countries and international Standards.
References advanceessays.com http://www.advanceessays.com/samples/Marketing_Plan.pdfPage | 5 Answers yahoo.ca http://nz.answers.yahoo.com/question/index?qid=20110228010004AAjL60 G RTD tea market research available at: euromonitor.com http://www.euromonitor.com/rtd-tea Pepsico.com, 2012 http://www.pepsico.com/Brands.html Wikipedia. 2012. “Lipton.” Available at http://en.wikipedia.org/wiki/Lipton Cover picture 1 http://fc08.deviantart.net/fs71/i/2010/047/3/f/Lipton_Ice_Tea____Paradise _by_fezakyuu.jpg Cover picture 2 http://www.jor-on.com/blog/wp-content/uploads/2007/12/liptonice.gif Cover picture 3 http://4.bp.blogspot.com/-Kix-BVa2RHY/Tp1zcS7_s3I/AAAAAAAAAbE/z_UzP36am6E/s1600/Unilever- thumb-360x376.jpg