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Marketing Assignment 6
Postioning and pricing strategies of Tea
Submitted in partial fulfilment of the requirement for the Semester-2
Marketing Management Course of MBA Programme
Submitted To:
Dr. Neelima Ruparel
(Faculty at BKSBM)
Submitted By: Group no.11
Group Leader:
Priyanka Panchal (11328)
Other Members:
Najeebullah Hemat (11327)
Paresh Chavda (11329)
Sagar Parmar (11375)
Jignesh Patel (11376)
Submitted on:
1/04/2014
B. K. School of Business Management, Gujarat
University

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Introduction:
The product tea is basically falls in the categories of beverages. We will deals in all kinds of
tea stuff. Additionally, we will introduce the iced green tea also which consists of the natural
lemon fibers and drinks which is also healthy for the diet so that diet conscious people should
like it. To generate additional sales, we will make our products available at all the retail stores
so that everybody can have it and enjoy the benefits of life. It is available in the tasty flavor
which is suitable for the taste buds of the human beings. Its natural fibers are also playing an
important role in the reduction of the weight loss.
The product which we have selected is tea. As we all know that there is a huge
demand for tea in India so that is why we preferred to select tea production, and
want to know about marketing of tea how to market the production of tea and how
improve our product in the market?
So far whatever assignment we submitted we got nice respond the previews
assignment was about marketing targeting and segmentation that we have done
successfully, now the assignment which we are going offer is about our product.
Marketing strategy like
Positioning
Objective
Pricing strategy and some other related issues

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POSITIONIN
The positioning that we are going to set in our target customers is that
 The main target is to position the product that is Tea in the minds of a customer,
the job can be done by developing awareness that it has same nutrient of tea
with additional flavors. But the positioning purpose behind tea is to provide pure
and healthy drink that strengthens the body and mind.
 Our product will be a very good flavored nutritious chilled tea. We will let people to
understand the benefits of minerals used in it.
 Our product will carry a famous brand name. Will give it very famous and reliable
brand name, so we will let the people to buy it.
 Our product will be very nutritious flavored mineral water. It will be different from
all the existing beverages.
 Our green tea contains dietary fibers which help in the reduction of weight loss.
 Our green tea eliminates the weakness cause due to the lack of red blood cells. It is the
replenishing and the refreshing drink.
“Our tea is one of the best ways to kick back and have fun this summer.”

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CUSTOMER VALUE PROPOSITION
Customer Value Proposition
Brand, Product and
company
Target customers Benefits Value proposition
green tea in three
flavors(iced green
tea, iced tea with
lemon and iced tea
with peech) by
Unilever
Teenagers, adults and
Health conscious
consumers
Refreshes, energy,
dietary supplements
Our product offers
health conscious
people iced green tea
which is refreshing,
aromatic and rich in
taste and also used as
dietary supplement
free of artificial
flavor.
.”
Customer Value and Satisfaction
 Our principal commitment is to our consumers. We will take best care of our
consumers because consumers are first priority of Unilever.
 Unilever Consumer Services is the main interface between you and the company, and
we make every effort to ensure that your voice is heard. After all, it's your satisfaction
that really counts.
 We want to build a long-term relationship of trust and loyalty with consumers .This
helps ensure that you, our consumers, are happy, satisfied and able to live fulfilling
lives.
 We will try our best to delight our customers of tea by delivering superior customer
value and satisfaction.
Our Philosophy And Strategy
 Win consumers' trust.
 Understand consumers' nutritional and emotional preferences.
 Serving our consumers and improving their quality of life.
 Our strategy starts and ends with the consumer.
Capturing Value From Customers
By creating superior customer value, we will create highly satisfied customers of tea
who stay loyal and buy more.
This, in turn, means greater long-run returns for the company. The outcomes of creating
customer value include customer loyalty and retention, share of market and share of
customer and customer equity.

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Creating Customer loyalty and retention
We will always aims high in building customer relationships. Since CRM of our
product will always creates customer delight by providing them superior customer value
and satisfaction. We will do our best for customers of tea and provide them with highly
affordable and healthy drink which delights them .so delighted customers remain loyal
and talk favorably to others about our product of tea. This results in capturing customer
lifetime value which in turn results an increase in sales of tea.
Growing Share Of Customer
Beyond simply retaining customers of tea to capture customer lifetime value, good CRM
of tea helps us to increase our share of customers. Our product will offers high quality
and a greater taste of tea which will liked by everyone. This results in growth of share of
customers.
Building Customer Equity
The ultimate aim of CRM of our product is to produce high customer equity. Since we
will always gives first priority to our customers and give them what they need and want
therefore profitable customers of our product remain loyal and this results in high
customer equity of tea.
POINT OF DIFFERENCE
Our product will wonders in refreshing the people in the morning, energizing them in the afternoon,
and relaxing them at night.
Following are the point of difference
1: Quality
a:Unique Taste
b: Aroma
c: Natural flavor
2: Packaging

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The packaging and marketing strategy of tea will reflection of Unilever’s
Thrust for consumer welfare and sustainable development, to meet the growing demand for
tea. We will continue to develop new products through our research and development
department.
New flavours will be added to cater to changing and adventurous tastes of consumers.
3: Dietary supplement
There is dietary supplement in the green tea that helps in reducing weight, reduce cholesterol
4: Pricing: The price of our product will be reasonable and affordable.
 Our product has following advantages over other tea brands:
 Natural antidepressant
 Reduce headache
 Natural cure for cancer because of natural anti oxidant catechin
 Diet for natural weight loss
 Successfully defend the skin from damage due to ultraviolet radiations
Reduce cholesterol level
PRICE STRATEGY
Price is a factor that we always say it has never compromised on quality of our
product while our competitors might do compromise. Therefore the price
values with the number of add on features that are present in our products and
not in its competitors. The cost of the R & D work, the composition
manufacturing, marketing, promotion, thus all factors coincide to decide the
ultimate price of a products. We are going to focus at the basic need of the
people considering all the segments of marker equally. We will provide

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unlimited ways to treat their taste buds by producing high quality flavored,
nutritious, and delicious flavors that are replenishing. And selling them at the
best practical cost. We will offers to customers with discount cards and
coupons that help provide the customers with their products at a cheaper rate
which attracts them more towards them therefore resulting in increased
revenue being earned by the company. Its price is pretty suitable for everyone
to enjoy all the attributes of our product.
Tea is already in hot beverage differentiates them as a strong taste but with low price
and catering mostly rural areas because rural people mostly use the strong tea because
of the hard work they are doing.
Price
More the same Less
More
Benefits The same
Less
More for
more
More for
the same
More for
less
The
same for
less
Less for
much

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SETTING THE PRICE
Selecting the Price Objectives:
We set the price in order to gain maximum market share. Because higher sales volume will
lead to higher long run profit.
Determining Demand:
As price and demand are inversely related; the higher will be the price, the lower will be the
demand. So we set our price that will not affect the demand of our product.
Customers are very price sensitive in order to viewing those consumer we categorize our
product. We are providing are product in liquid as well as in powder form and powder are
less of cost as compare to liquid with a similar taste.
Analyzing Competitor Cost:
As we have to analyze the direct competitor and indirect competitor’s price, so we carefully
observed the cost of our competitor and their selling price in the market. After that we will
conduct surveys that customers are satisfied with the price or not. After all the observation we
analyze our data decide to set the price.
Selecting The Pricing Method
There are many methods to set the product’s price. We have selected the GOING RATE
pricing, we will set the price of the product with compression of that our competitors
Pricing Strategy:
We will go for Market-Penetration pricing in start. Tea market of INDIA is already
highly price sensitive so that low price produces more market share. We will sets the
low price at initial stage in order to penetrate the market quickly and deeply, to attract
a large number of buyers and win a large market share.

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Our pricing strategy is “high quality with fewer prices” which gives competitive advantages
against the multinational brands in beverages. Pricing charged for the product is
Other brands charged for the beverages more than the Lipton ICE TEA for the same quality
Level.
ADAPTING THE PRICE
Geographical Pricing:
We will charge the same prices to all geographical areas to create the consistency in our
product.
Price Discount And Allowances:
We will also provide some discounting packages, different packages for retailers and
customers. If retailer buys our product frequently and increases the sales volume we will
provide them refrigerators and for customers by buying one dozens Cain at a time we will
provide one Cain free to them.
Promotional Pricing:
In promotional pricing we are thinking to decrease our price in off season and also giving
some tremendous offers to the customers in Dewali like the price of one Cain is 25Rs by
buying 2 Cain at a time we will charge those 45Rs “only an example”

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Target Market and Positioning Decision:
Retailers must define their target market and then decide how will position themselves in the
market. A class stores holds the high-price position. Therefore in our new marketing plan we
are positioning our product in every type of stores.
Product assortment and service decisions:
The retailer’s product assortment should differentiate the retailer while matching the target
shopper’s expectations. The service mix can also help set one retailer apart from another.The
stores atmosphere is another element in the reseller’s product arsenal. Every store has a
physical layout that makes moving around in it hard or easy. The retailers must design an
atmosphere that suits the target market and moves customers to buy.
Price decision:
Price is less than the competitors. Give the best quality products in low price.
Promotion decision:
Retailers use all of the promotion tools – advertising, personal selling, sales promotion,
public relations and direct marketing to reach consumers.
Place decision:
Public transport is easily available or easy access to stores. Location is very important that
retailers select locations that are accessible to target market in areas that are consistent with
the retailers arking for customers.