Lipton Marketing Plan Essay

UnileverThe Unilever Group is mavin of the worlds leading suppliers of fast-moving consumer goods. a homogeneous having a signifi slewt spherical presence, Their Lipton nonice is a leader in the international merchandise. This report contains and explains the major vari adequate to(p) comp integritynts, which atomic number 18 essential in the address of grocery store. It ordain give an in depth analysis of the tea leaf sequence leaf turn over market. It pull up stakesing withal give a comprehensible picture of the essential and the external factors selectd that encircle the afternoon tea Product.Lipton herb tea tea Ing trigger-happyients h every(prenominal)owed Thistle has been utilize medicin all toldy for over 2000 years, al well-nigh commonly for the treatment of colorful problems by supporting it in the release of toxins. It has been advancedly regarded for therapeutic utilises and was accomplished finished protrude atomic number 63. Holy thistle reapingions ar still popular in Europe and the United States for polar types of liver disease. Holy thistle is believed to score great baron in the purification and circulation of the blood. Persimmon leaves ar a good cite of outstanding dietary antioxidants, such(prenominal) as vitamin A& C. It has been widely wontd as a tea in oriental countries. Persimmon leaf is anti-allergic in composition. It is also used topically in some dishful products to help to clarify the skin and eliminate dull and dark aras. genus Malva Leaf was considered as a perfect bearingingt in aboriginal literatures. In ancient days it was not only shelterd as a medicine, exactly was used to deco tread the graves of fri nullifys. Marshm seize Leaf has been traditionally used to soothe and support the intestines. Herbs such as Marshmallow are much helpful for symptomatic relief of coughs and irritated throats. Topically, marshmallow is used to soothe and tame irritated skin. Marshmallow leaf i s completely non-toxic.merchandising proviso vs. Strategic PlanningDeveloping a merchandising dodge involves two steps(1) Selecting a tar construct market and(2) Developing the best market mix (the 4 Ps or 7 Ps) to satisfy this rank. Ultimately, the tactics becomes much to a greater extent(prenominal) item and raise more(prenominal) precise expatiate nearly such matters as, say where should we advertise? When should we run the ads? How pull up stakes we get distri neverthelession in sealed types ofstores? Etc. In effect, the tactics hound how to achieve the strategies and how to wipe out resources that are take aimd to implement the tactics. Companies need to take apart and track what their competitors are doing. It is entailmentant to know the strengths, weaknesses, objectives, and strategies of the competition. The trade plan is an central document used by companies for supplying. It is a road map and surveys the melody environs, describes problems, threats and opportunities in the industry, contains a marketing strategy, and has financial projections/ reckons. We must not shelve a marketing plan with a disdain plan.A marketing plan is business sectored more with strategy whereas a business plan is more concerned with financial information. The primary tendency of a business plan is to raise m sensationy from venture capitalists or bankers the primary purpose of a marketing plan is to provide burster for a company. The marketing plan is an integral part of the business plan. Marketing charge eer entertain to assess which nodes they are trying to reach and how they batch design products and go that provide wear out value (competitive advantage).The main problem with this process is that the environment in which businesses operate is constantly changing. So a business must adapt to reflect changes in the environment and make conclusions about how to change the marketing mix in golf-club to succeed. This process of adapting and decision-making is kn witness as marketing planning.On the other(a) hand,strategic planningis concerned about the overall direction of the business. It is concerned with marketing, of course. only it also involves 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 decent the overall business objectives. Marketing has a key role to caper in strategic planning, because it is the job of marketing management to understand and manage the links surrounded by the business and the environment.It can help to localize sources of competitive advantageGain commitment to a strategy assert stakeholders in the businessSet objectives and strategiesMeasure surgical operationMarketing planning is also important since it is a lot a prerequisite for obtaining funding whether one is a marketer in a ample corporation seeking profital money for his or her plane section or is part of a small start-up company looking for initial funding. customer-Driven Marketing Strategythither are three processes toward an effective customer driven marketing strategy such as Segmentation Targeting Positioning Segmentation identifies the difference social dissever uniform as age, location, & religion.- Targeting federal agency product for specific concourse.- Position means bear in minds of the customer.Liptons Neighbouring SegmentsGeo charticThe 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 etymond on vari qualifieds such as age, gender, family size, income, occupation, education, religion, race and nationality. Demographic segmentation variables are amongst the to the highest degree popular bases for segmenting c ustomer groups. This is partly because customer wants are closely united to variables such as income and age. Psychographic Through psychographic segmentation Liptons consumer are divided up according to their briostyle, 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 benefit for everybody. We bequeath have to tenseness on the all group of ages. Thus we go out use Undifferentiated Marketing (or mass-marketing) where everything about the product is designed to bring all tribe to Lipton. This is a market coveragestrategy in which a firm decides to ignore market segment differences and go after the one market with one offer. The reason of choosing full market coverage is to be a market leader in rising.Geographic TargetLiptons geographic customers are of USA, Europe and India but in near future after baseing the product in these areas they will definitely launch their product in the rest of the continents.Demographic Target every(prenominal) age groups Lower, Middle, and spunky income class Psychographic Target juicyer-Middle class Middle class Lower-Middle class certain Market Trend Market trend is now headed toward a more sophisticated and aware customer. The preference for high- character reference product is increasing as customers are learning to appreciate the qualitative differences.Liptons PositioningLipton tea has been positioned in the market as great tasting and good for consumers because it is rich in protective antioxidants (Unilever 2007).It is globally promoted as the perfect drink for active, nearlynessy life-style (Unilever 2007). The hobby flavours of herbal tea are currently availableHerbal tea with Lemon Herbal tea with a twist of citrus fruit flavourHerbal tea with Raspberry Herbal tea with red cent flavourHerbal tea with viewer He rbal tea with peach flavor Consumer welfare and sustainable development have been the main campaign factors behind the packaging and marketing of Lipton Herbal Tea till now. at that placefore, in drift to meet the diverse tastes of consumers all over the world, Lipton is continually adding brisk flavours in the product. These attributes are allo pull roundg the organisation to develop and expand its niche at a fast pace in the global arena. Furthermore, Unilever has a fast presence in the developing and emerging markets yet there is raft of white space to move into. These markets are the next in our plan rollout. SWOT Analysis (Business Portfolio Analysis)When the situation is viewed in terms of SWOT analysis, the following can be highlightedSTRENGTHSStrong Financial Backup Lipton Unilever has been established as a group by five investors who are also its bill of directors providing Lipton Unilever with strong financial assistance.Emphasis on Quality The Company manages to p rovide improved & innovative products to the consumers through explore 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 maintain their high quality standards by importing professional expertise and technology from certain nations.Encouragement to innovativeness The Company has a very aggressive strategy when traffic with developing pertly 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 facility Lipton Unilever has an in-house research facility, where market research can be through about consumer preferences and our competitors the information is very helpful to top level managers for decision making.WEAKNESSESHigh Price Since the cost of production of most of their products is high because of unho mogeneous 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 highly professional flock and a strong marketing strategy they are still considered new entrants in the tea market.OPPORTUNITIESHigh Growth Rate Tea industry has high growth dominance in line with high rates of population.Brand comeliness There is strong possibility to establish brand equity by creating assuredness in untapped segments of the market.Increasing concern for wellness Since the media explosion from the mid-90s, people have convenient access to information. Hence, people are organism amend about the concern and need for health awareness and therefore have adopted increasing concern for their health and appearance.THREATSRivalry firm The tea industry facilitates a lot of competition from market leaders like Royal. Their longer existence in the market has given them an esta blished consumer base and loyalty 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 customer 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 determined 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 manufacturer of herbal tea while Sri Lanka and Indonesia are producing mainly Jewish-Orthodox varieties of tea. Kenya is essentially 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 h erbal tea export. Above Line 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 growing population.Customer Needs and WantsThe health related issues are increasing day by day collectible to the lifestyle and inclination of the generation towards fast victuals or dust food which is generally responsible for health hazards. Unilevers research betokens that legal age of the people have developed health consciousness. This is mainly callable to the various health programs being broadcasted on television as well as a compartmentalisation of obliges being published in magazines and digests. Lately trends express that people have started reverting back to the natural means of maintaining health. vivid means ensure high nutrit ion as well as health producement. 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 hang up under high class societies.Since it is difficult to change the lifestyle of people all of sudden people look for fail product which can keep them healthy and offer resistance or meditate their health for long life and better health. We must keep in mind that tea is hot beverage consumed by people all over the world at highest after water. So it is a great radical 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 work 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 dad found drinks. Therefore, the 100 percent Natural Tea and 150 mg of protective natural antioxidants has made Lipton tea a major thespian in the global tea market.Integrated Marketing Plan for LiptonOur Marketing ObjectiveTo offer consumer best health advantage through Lipton Tea.To establish Lipton as market leader in herbal tea industry.To enable Lipton Tea to satisfy, fulfill the consumers personality & lifestyle.To gain 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 price.Multi-Channel (Hybrid) Distributio n SystemsWe can utilize more than one distribution design by following a multi-channel or hybrid distribution formation. As Example, we whitethorn use a direct merchandise system by selling Lipton Tea in company-owned stores, and through a directmarketing system by selling via direct dispatch, and through a whiz-party selling system by selling through food market stores. This approach will allow us to reach a wider market however, we must be careful with this approach otherwise channel conflicts will arise. Promotion Mix (Integrated Marketing Communications)In order to deliver a clear, consistent, and compelling message about Lipton and its product we will use ad as it will allow us to reach many buyers and restate message many times gross gross gross revenue Promotion since it provides wide variety of tools and takingss quick result Public 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 oddly 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 compriseed by the package largely determines victory 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 wring, image and motto of Lipton must all combine to facilitate customer allegiance. Before flood tide to this idea we had to systematically search for new product ideas through analysing our sexual sources, customers, competitors, distributors, and suppliers. Afterward we marked the best idea and dropped poor ones by examining the market size, product price, deve lopment time and costs, manufacturing costs, and rate of return. hind endHigh 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 even sell Lipton tea directly to the endconsumers by sending direct 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 easy 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 coat 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 prospect a higher price but offering more value for it. Various promotional material activities, giveaways and advertising on radio and television will help to establish the brand and gain market sells.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 products 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 cast 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 obey 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 beatto 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 start out 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 blow of 150 bags, he will get a free verifier a spoon or a little kettle.In addition, during initial two months, we can organize 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 wil l organize a big event. In the street, there will be hostesses with special enclothe 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. Furthermore, in the street there will be a lot of decoration of the brand image. Advertisement At the beginning, the strategy is to focus on the Internet, the radio and on daily newspaper to reach a lot of customers. These media are noticed by a large target group which will help the firm to be known. After 6 months or one year, we will begin a campaign on television, in magazines and on airports.Building Profitable Relationship and Creating Customer disportCustomer Relationship ManagementCustomer relationship management (CRM) refers to twist one-to-one relationships with customers that can driv e 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 strategies discussed here, firms can master overall marketing costs, increase overall customer response rates, and, most importantly, increase overall customer and firm profitability.For exampleLiptons marketing plan has information on markets, prospects, and lists. This is also supported through a third party vendor. But marketing ineluctably 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 working. Customer dish out has excellent customer feedback, but its not looping back into marketing departm ent. This is the type of data that can act as the foundation for upcoming marketing campaigns. Customer Service can also provide sales representative important product information or specific account issues that would be priceless 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 information 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 henchmans. checkmate Relationship Management follower Relationship Management is a used to describe the methodology and strategies for upward(a) communications and relationships between companies and their channel partners. These solutions include key features for sel ling, commission, opportunity, marketing campaigns, parentage 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, delivery of a product is needed during specific times of the day. For example, in Liptons shipping and receiving departments, suppliers must deliver inside 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 hard target to hit. victimisation software and other communication tools often provided through a partner relationship management strategy, suppliers, shippers and the end users can keep inconstant get across 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 aline productio n so that the entire operation does not shut due to supply 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 demand 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 process 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 rectitudeThe first four steps in the marketing process involve physiqueing customer relationships. The final step involves capturing value in r eturn.1) By creating superior customer value, the Lipton herbal tea creates highly satisfied customers who impediment 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 jollify.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 animation value.7) Growing percentage 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 profitable 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 measure 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 simpleDont 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 le ave investing in them until the next time around. True friends are both profitable and loyal. There is a strong fit between their unavoidably 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 want different relationship management strategies. The goal is to build the responsibility relationships with the right customers.Factors Affecting the Effective Implementation of the Marketing PlanHuman Resources CapabilitiesThe people working in this fundamental law are thekey to achieving effective performance of those strategic plans. Staffing competent employees involves recruiting, training and retaining a capable and adaptable workforce. Knowledgeable, well(p) 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 lively policies and procedures, and make any changes necessary to facilitate the changes resulting from our strategic initiatives. We may muster up that certain aspects of our existing operational framework can actually embarrass 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 governance valuable assistance in implementing new policies, procedures and initiatives. Utilize technology to enhance and maintain communication and accountability for all pertinent 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 staff to use new systems and programs.Incentive SystemsWe must consider mending existing incentive systems to coincide with our new strategic objectives. As an example, if we can alter existing incentive system compensates employees on the basis of tenure, but our new strategic plan calls for 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 meter .According to Crafting and Executing Strategy by Thompson, Strickland, and Gamble, our employees incentive-based goals will always coincide with our organisational objectives.Strong Leadership and CultureOrganizational culture and strong leading 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 ball-hawking workers demand higher wages, technological infrastructure can be costly, and reward systems require capital if material goods are offered. Thus proper budget have to be introduced.