Lipton Marketing Plan Essay

UnileverThe Unilever Group is one of the worlds leading suppliers of fast-moving consumer goods. Besides having a grievous global presence, Their Lipton brand is a leader in the international market. This report contains and explains the major variable components, which argon essential in the dish of merchandise. It depart halt an in depth analysis of the afternoon teatimetimetime market. It bequeath overly afford a comprehensible picture of the internal and the external factors involved that encircle the tea Product.Lipton Herbal Tea IngredientsHoly Thistle has been apply medicinally for over 2000 socio-economic classs, most commonly for the treatment of liver problems by abeting it in the release of toxins. It has been extremely regarded for therapeutic physical exertions and was cultivated with bulge Europe. Holy thistle harvestings are still popular in Europe and the United States for various types of liver disease. Holy thistle is believed to capture gravid power in the purification and circulation of the blood. Persimmon leaves are a good source of important dietary antioxidants, such as vitamin A& C. It has been widely used as a tea in oriental countries. Persimmon leaf is anti-allergic in composition. It is also used topically in some beauty products to sustain to clarify the skin and eliminate dull and dark areas. Malva Leaf was considered as a perfect computer programt in early literatures. In antediluvian patriarch days it was not only valued as a medicine, merely was used to deco set the graves of friends. Marshmallow Leaf has been traditionally used to soothe and support the intestines. Herbs such as Marshmallow are often helpful for symptomatic relief of coughs and irritated throats. Topically, marshmallow is used to soothe and soften irritated skin. Marshmallow leaf is completely non-toxic. merchandise Planning vs. Strategic PlanningDeveloping a selling dodging involves two steps(1) Selecting a tar set ab away market and(2) Developing the best marketing mix (the 4 Ps or 7 Ps) to satisfy this target. Ultimately, the tactics becomes much more(prenominal) specific and ordain more on the providedton details about such matters as, say where should we advertise? When should we run the ads? How lead we get distribution in certain types ofstores? Etc. In effect, the tactics happen upon how to achieve the strategies and how to manage resources that are haved to implement the tactics. Companies need to analyze and track what their competitors are doing. It is important to know the strengths, weaknesses, objectives, and strategies of the competition. The marketing plan is an important memorial used by companies for planning. It is a road map and surveys the vexation environment, describes problems, threats and opportunities in the effort, contains a marketing strategy, and has monetary projections/budgets. We must not confuse a marketing plan with a business plan.A marketing plan is concerned more with strategy whereas a business plan is more concerned with financial information. The primary purpose of a business plan is to raise money from venture capitalists or bankers the primary purpose of a marketing plan is to provide direction for a company. The marketing plan is an integral split of the business plan. Marketing management eternally have to assess which guests they are trying to puree and how they can design products and receiptss that provide better value (competitive advantage).The main problem with this exploit is that the environment in which businesses operate is constantly changing. So a business must adapt to reflect mixtures in the environment and make decisions about how to change the marketing mix in collection to succeed. This process of adapting and decision-making is known as marketing planning.On the other hand,strategic planningis concerned about the overall direction of the business. It is concerned with marketing, of course. But it also in volves decision-making about production and operations, finance, human resource management and other business issues. The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives. Marketing has a key role to play in strategic planning, because it is the commerce of marketing management to understand and manage the links between the business and the environment.It can help toIdentify sources of competitive advantageGain dedication to a strategyInform stakeholders in the businessSet objectives and strategiesMeasure performanceMarketing planning is also important since it is often a requirement for obtaining funding whether one is a marketer in a large corporation seeking additional money for his or her department or is part of a small starting-up company looking for initial funding.client-Driven Marketing StrategyThere are three processes toward an effective customer driven marketing strategy such as Segmentation gradeing Positioning Segmentation identifies the difference category like as age, location, & religion.- Targeting means product for specific people.- Position means minds of the customer.Liptons Neighbouring SegmentsGeographicThe market of Lipton is segmented according to geographic criteria such as nations, states, regions, countries, cities, and neighbourhoods. Demographic Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. Demographic segmentation variables are amongst the most popular bases for segmenting customer groups. This is partly because customer wants are closely linked to variables such as income and age. Psychographic finished psychographic segmentation Liptons consumer are divided according to their lifestyle, personality, values and social class.Liptons Target MarketChoosing a targeting strategy depends on company resources, product variability, products life cycle stage, market variability, and competitors marketing strategies. Lipton has equal bene proceed for everybody. We will have to localize on the all group of ages. frankincense we will use Undifferentiated Marketing (or mass-marketing) where everything about the product is intentional to bring all people to Lipton. This is a market coveragestrategy in which a firm decides to ignore market segment differences and go afterwards the one market with one offer. The reason of choosing full market coverage is to be a market leader in future.Geographic TargetLiptons geographic customers are of USA, Europe and India but in near future after effecting the product in these areas they will definitely launch their product in the rest of the continents.Demographic Target All age groups Lower, Middle, and High income class Psychographic Target Higher-Middle class Middle class Lower-Middle classCurrent Market Trend Mar ket trend is now headed toward a more sophisticated and aware customer. The taste perception for high- feature product is increasing as customers are learning to appreciate the qualitative differences.Liptons PositioningLipton tea has been positioned in the market as great degustation and good for consumers because it is rich in protective antioxidants (Unilever 2007).It is globally promoted as the perfect drink for active, wellnessy lifestyle (Unilever 2007). The following flavours of herbal tea are currently availableHerbal tea with Lemon Herbal tea with a twist of citrus flavourHerbal tea with Raspberry Herbal tea with raspberry flavourHerbal tea with peach Herbal tea with peach flavor Consumer welfare and sustainable give risement have been the main capricious factors behind the packaging and marketing of Lipton Herbal Tea till now.Therefore, in order to meet the diverse tastes of consumers all over the world, Lipton is continually adding new flavours in the product. Thes e attributes are allowing the organisation to develop and expand its niche at a fast pace in the global arena. Furthermore, Unilever has a strong presence in the developing and emerging markets yet there is plenty of white space to move into. These markets are the next in our planned rollout. SWOT Analysis (Business Portfolio Analysis)When the speckle is viewed in terms of SWOT analysis, the following can be highlightedSTRENGTHSStrong Financial Backup Lipton Unilever has been realised as a group by basketball team investors who are also its board of directors providing Lipton Unilever with strong financial assistance.Emphasis on Quality The Company manages to provide im take the standd & innovative products to the consumers through research and development. Lipton Unilever is established with the primary concern for uncompromised quality in mind and all of their products are perceived by the consumers as the best in business with respect to quality. They offer their high quality standards by importing schoolmaster expertise and technology from unquestionable nations.Encouragement to innovativeness The Company has a very aggressive strategy when dealing with developing new products, i.e. they are ready to take risks and come out with products that have unique differential advantages and are unavailable in the market.In-house research preparation Lipton Unilever has an in-house research facility, where market research can be done about consumer preferences and our competitors the information is very useful to top level managers for decision making.WEAKNESSESHigh wrong Since the cost of production of most of their products is high because of various factors (imported ingredients, technology, quality and maintenance etc), they charge high prices for the items they produce.Inexperience in the Tea market Although Unilever comprises of extremely professional people and a strong marketing strategy they are still considered new entrants in the tea market.OPPO RTUNITIESHigh Growth Rate Tea industry has high growth potential in line with high rates of population.Brand Equity There is strong possibility to establish brand equity by creating sensory faculty in untapped segments of the market.Increasing concern for health Since the media explosion from the mid-90s, people have convenient access to information. Hence, people are cosmos educated about the concern and need for health awareness and therefore have adopted increasing concern for their health and appearance.THREATSRivalry firm The tea industry allays a lot of competition from market leaders like Royal. Their longer existence in the market has given them an established consumer base and fealty and has provided them with the experience that Lipton Unilever lacks.Economic Factors Increase in government tariffs, import duties and political situation of the country i.e. economic instability could be a threat to Liptons product.An Integrated Marketing ProgramThe Marketplace and Custo mer Needs and WantsGlobal Tea MarketThe tea industry is about 170 years old. It occupies an important place and plays a very useful part in the global economy. Tea plantations are mainly located in rural hills and backward areas. The major competitive countries in tea in the world are India, Sri Lanka, Kenya, China and Indonesia. China is the major producer of herbal tea while Sri Lanka and Indonesia are producing mainly orthodox varieties of tea. Kenya is basically a CTC (Crush, Tear, and Curl) tea producing country. India is facing competition from Sri Lanka and Indonesia with regard to export of orthodox teas and from China with regard to herbal tea export. Above quarter graph clearly indicates that till 1991 Tea consumption grew at the phenomenon rate of 32.2% where as in recent past few years the average rate of consumption growth is 0.7%. Tea being the only beverage which is consumed at the largest following Water hence there is no trouble to global tea market future with gr owing population.Customer Needs and WantsThe health related issues are increasing day by day due to the lifestyle and determination of the generation towards fast food or junk food which is generally responsible for health hazards. Unilevers research shows that majority of the people have developed health consciousness. This is mainly due to the various health programs being broadcasted on television as well as a variety of articles being published in magazines and digests. Lately trends show that people have started reverting back to the natural means of maintaining health. Natural means ensure high nutrition as well as health enhancement. Moreover nowadays more and more people are getting literate and educated. The education in turn brings awareness in the people and they understand whatdos and donts. There is class of people who are very health cautious and most of them driblet under high class societies.Since it is difficult to change the lifestyle of people all of sudden peo ple look for better product which can detect them healthy and offer resistance or meditate their health for long life and better health. We must keep in mind that tea is calefacient beverage consumed by people all over the world at highest after water. So it is a great idea if tea can prove as tea as well as medicine and offer better health & immunization as it is consumed twice to thrice a day. If tea can provide health benefits it will be surely welcomed by the class of health conscious people. Furthermore, A few recent studies suggest that the health benefits would drive the performance of Lipton herbal tea across the globe (Winslow 2006). Consumers generally perceive tea consumption to be a healthy activity and are more likely to consume herbal tea rather than other soda based drinks. Therefore, the 100 percent Natural Tea and 150 mg of protective natural antioxidants has made Lipton tea a major participant in the global tea market.Integrated Marketing Plan for LiptonOur Marke ting object glassTo offer consumer best health advantage through Lipton Tea.To establish Lipton as market leader in herbal tea industry.To enable Lipton Tea to satisfy, action the consumers personality & lifestyle.To addition Lipton Teas popularity as an icon in Herbal Tea product. In order to achieve our objectives we will use following strategies while developing our marketing mix.Value Based PricingWe will set our product price, based on the benefits it provides to consumers. Because our offer is unique and highly valuable features are better positioned to take advantage of value-based determine.Multi-Channel (Hybrid) Distribution SystemsWe can utilize more than one distribution design by following a multi-channel or hybrid distribution system. As Example, we may use a direct retail system by selling Lipton Tea in company-owned stores, and through a directmarketing system by selling via direct load, and through a single- party selling system by selling through mart stores. This approach will allow us to reach a wider market however, we must be careful with this approach otherwise channel conflicts will arise. publicity Mix (Integrated Marketing Communications)In order to deliver a clear, consistent, and compelling message about Lipton and its product we will use Advertising as it will allow us to reach some buyers and repeat message many times Sales Promotion since it provides wide variety of tools and rewards quick response state-supported Relations because it is very believable and will dramatize Lipton and its product.Marketing Mix of Lipton TeaProductLipton Tea will be a high quality product offered as specially blended herbs tea. Contents of the Lipton Tea will be40 bags, 80 bags, 150 bags, 250 bags (Family pack)The amount of bags refers to different target groups.40 bags for singles, 80 bags for couples,150 bags and 250 bags are Family Packs. (250 bags is most famous nowadays)Packaging Customer perception of a package creates brand equity and purchaser loyalty. The image presented by the package mostly determines success or failure of a tea line. Appearance stimulates memories and emotions inside the purchaser, who often times is female, often buying for an entire family. Thus colour, image and guide word of Lipton must all combine to facilitate customer allegiance. Before coming to this idea we had to systematically search for new product ideas through analysing our internal sources, customers, competitors, distributors, and suppliers. afterwards we marked the best idea and dropped poor ones by examining the market size, product price, development time and costs, manufacturing costs, and rate of return.PlaceHigh quality tea for a reasonable price will be bought from Assam & Darjeeling (India) and will then be blended and packed in the Lipton factory. Then we may open up company-owned stores to start a direct retail system to sell Lipton Tea. We can blush sell Lipton tea directly to the endconsumers by sending direc t dispatch from factory. At the same time the final product will be distributed to authorized dealers and retailers such as supermarkets and main tea shops so the end consumer has tardily access to it. Place in supermarket On the middle and lower levels of self. The Lipton Tea will be placed according to the content of tea bags.PricePrices for the tea will be as the following Price of $18 for regular sized pack-Price may be increased to reflect qualityReasons for pricing policyLipton Tea will be competing against the main player on the Herbal Tea Market Royal Tea by setting a higher price but offering more value for it. Various promotion activities, giveaways and advertising on radio and television will help to establish the brand and gain market component parts.PromotionThe promotion is the most important point to launch our products because we want to be able to compete with our biggest competitor. We must focus on this point because the people like to purchase bargains or buy p roducts that offer free gifts. Other brands do not offer as many promotion and free gifts. This is why it is important to focus especially on the Promotion activities of the marketing mix. We are going to set up original events in order to attract new customers and consumers of other tea brands.Our objectives-Develop awareness-Generate traffic-Build loyal customer baseIn order to achieve above mentioned we will pursue the following Stand in the supermarkets we want to set up a stand in the supermarket in order to make tasting to the supermarkets clients.The stand should be placed between the fresh food and the food with the aimto attract all the consumers. The stand should represent the brand with the colour of the company, the logo, the environment of Lipton. For example, the stand could be coloured with a combination of red and yellow. Moreover, the hostesses can give some presents to the children like, balloons with the logo of the brand and pens with the logo. Also, during the launch of our product (one week), all the customers at the supermarket will receive a sample of Lipton Tea for free at the cashiers including a voucher which explains the game to win a trip to London. Promotional offers during the year If a client buys a box of 150 bags, he will get a free coupon a spoon or a little kettle.In addition, during first two months, we can attire a game when you buy Lipton, you win some points and with certain numerous of points, you can get a present which represents the brand image. Promotional event for Lipton Tea launching During one weekend in a big city we will organize a big event. In the street, there will be hostesses with special clothes who will distribute samples and cups with tea to offer the product to passer-by. After the show, they will hand out flyers the people can fill in so as to win the weekend trip to London. At the end of the event, there will be a drawing of lots. The winner will receive the present(tea boxes) via post way. Furthe rmore, in the street there will be a lot of ribbon of the brand image. Advertisement At the get offning, the strategy is to focus on the Internet, the radio and on daily newspaper to reach a lot of customers. These media are notice by a large target group which will help the firm to be known. After six months or one year, we will begin a campaign on television, in magazines and on airports.Building Profitable relationship and Creating Customer DelightCustomer Relationship ManagementCustomer family relationship management (CRM) refers to building one-to-one relationships with customers that can drive value for the firm. The continuing evolution of CM is made possible by understanding the interactive relationships that develop between firms and customers and among customers themselves. Lipton will increasingly be able to customize marketing messagesto larger target audiences on the basis of the customers expected response and the customers value to the firm. By following the CRM s trategies discussed here, firms can reduce overall marketing costs, increase overall customer response rates, and, most importantly, increase overall customer and firm profitability.For exampleLiptons marketing plan has data on markets, prospects, and lists. This is also supported through a third party vendor. But marketing needs to drive generated leads to Sales for follow up. Thus, the marketing department also could use feedback from service and sales about what campaigns are operative. Customer Service has excellent customer feedback, but its not looping back into marketing department. This is the type of data that can act as the creation for upcoming marketing campaigns. Customer Service can also provide sales representative important product information or specific compute issues that would be invaluable for sales to have before they call on an account.Finally, Customer Service can be used for cross sell and up sell opportunities. The key is to have all your customer inform ation integrated. This provides each department with a 360-degree view of the customer, and ensures that the data is current and complete. Liptons CRM applications will also enable companies to interact with customers throughout multiple channels including the Web, phone, fax, direct mail, e-mail, and in person or through partners.Partner Relationship ManagementPartner Relationship Management is a used to describe the methodology and strategies for improving communications and relationships between companies and their channel partners. These solutions accommodate key features for selling, commission, opportunity, marketing campaigns, inventory access, and other features designed to facilitate the relationship between manufacturers and their channel partners. Partner relationship management can take a number of different forms. In some cases, saving of a product is needed during specific times of the day. For example, in Liptons shipping and receiving departments, suppliers must de liver within a certain time frame. In the busiest of locations, that window could be as little as 30 minutes.When traveling across a large geographic region, that can be a sticky target to hit. Using software and other communication tools often provided through a partner relationship management strategy, suppliers, shippers and the end users can keep unfaithful contact with each other.This means the end user will be able to know where each item is each step in the process and when to expect it. Depending on the situation, this may allow Liptons factory to adjust production so that the entire operation does not shut due to return concerns. Partner relationship management is also important for a manufacturer and reseller or retailer. Software allows the producer to understand when a certain product is in shoot and allows that producer to adjust his processes likewise. Without this benefit, Lipton would need to wait for an order from the retailer or reseller. That could delay the p rocess and thus allow both sides to miss out on valuable sales. In addition to communication, partner relationship management can also provide services in other areas. For example, it may include a partner loyalty component, which will provide a benefit to both companies. As those relationships are solidified, it will provide a good customer base on which both can depend.Capturing Value from Customers to Create Profit and Customer EquityThe first four steps in the marketing process involve building customer relationships. The final step involves capturing value in return.1) By creating superior customer value, the Lipton herbal tea creates highly satisfied customers who rub loyal and buy more.2) By Creating Customer Loyalty and Retention3) The aim of customer relationship management is to create not just customer satisfaction, but customer delight.4) This means that companies must aim high in building customer relationships.5) Customer delight creates an emotional relationship with a product or service, not just a rational preference.6) Lipton herbal tea is realizing that losing a customer means losing more than a single sale. It means losing customer living value.7) Growing Share of Customer8) Share of customer is defined as the share the company gets of customers purchasing in their product categories. (Thus, banks want to increase shareof wallet.)Building Customer EquityUnilever want not only to create lucrative customers, but to own them for life, capture their customer lifetime value, and earn a greater share of their purchases. Customer Equity in Lipton Tea Marketing consists of actions taken to build and maintain desirable exchange relationships with target audience involving a product, service, idea, or other objects. Customer equity is the total combined customer lifetime values of all of the companys current and potential customers. Clearly, the more loyal the firms profitable customers, the higher the firms customer equity. Customer equity may be a better appreciate of a firms performance than current sales or market share.Building the Right Relationships with the Right CustomersNot all customers, not even all loyal customers, are good investments. Strangers show low potential profitability and little projected loyalty. The relationship management strategy for these customers is simple have ont invest anything in them.Butterflies are potentially profitable but not loyal. The company should use promotional blitzes to attract them, create satisfying and profitable transactions with them, and then cease investing in them until the next time around. True friends are both profitable and loyal. There is a strong fit between their needs and the companys offerings. The firm wants to make continuous relationship investments to delight these customers and retain and grow them. Barnacles are highly loyal but not very profitable. There is a limited fit between their needs and the companys offerings. Important point Different types of customer require different relationship management strategies. The goal is to build the right relationships with the right customers.Factors Affecting the Effective Implementation of the Marketing PlanHuman Resources CapabilitiesThe people working in this organization are thekey to achieving effective implementation of those strategic plans. Staffing competent employees involves recruiting, training and retaining a capable and adaptable men. Knowledgeable, dependable and versatile employees have the ability to overcome the obstacles to change, and can meet performance goals even when other resources are scarce. If all of the other elements listed in this article are present, but the workforce does not meet these criteria, then achieving those objectives may be nearly impossible.Favourable EnvironmentWe have to Rethink existing policies and procedures, and make any changes necessary to facilitate the changes resulting from our strategic initiatives. We may find that certain aspects of our existing operational framework can actually impede strategy implementation, and that certain areas may stand out as being lacking in policy guidance in light of our new strategic goals.Technological InfrastructureTechnology can give our organization valuable assistance in implementing new policies, procedures and initiatives. Utilize technology to enhance and maintain communication and accountability for all relevant managers and operational employees throughout the change process, and to keep track of implementation and performance goals and their achievement. This may require adding new systems and infrastructure, ensuring that all systems will function reliably, and training all relevant round to use new systems and programs.Incentive SystemsWe must consider altering existing incentive systems to coincide with our new strategic objectives. As an example, if we can alter existing incentive system rewards employees on the basis of tenure, but our new strategic plan calls f or a 50 percent increase in service plan sales to reposition our company as a service provider, then consider altering the system to reward employees or teams with high monthly service plan sales numbers .According to Crafting and Executing Strategy by Thompson, Strickland, and Gamble, our employees incentive-based goals will always coincide with our organizational objectives.Strong Leadership and CultureOrganizational tillage and strong leadership are inseparable. We must encourage and train our management team to be agents of change, with the ability to champion new ideas and coach employees through the change process. Also, use our influence as a leader to reset the tone of our organization to reflect the importance and seriousness of our new strategic plans, and lead by example in terms of flexibility and dedication to change.Capital ResourcesAll of the internal elements listed in this article require capital to employ. For example, highly skilled workers demand higher wages, t echnological infrastructure can be costly, and reward systems require capital if material goods are offered. Thus proper budget have to be introduced.