Roles of branding and its impact

Lipton has its ain tea estates and tea research installations, using over 80,000 people. It maximizes consumer and client apprehension, by giving the tea taste testers extended preparation through frequent travels to tea turning countries throughout the universe to derive cognition in the harvest home, production, procurance, blending and tasting of more than 3,000 types of tea. In add-on, it beginnings tea from every bit many as 25-35 different states, to guarantee consistent gustatory sensation and quality.

Corporate Milestone

In 1890, Sir Thomas Lipton founded Lipton whom was considered the male parent of modern advertisement.

In 1893, Sir Thomas Lipton established the Thomas J Lipton Co. , a tea packaging company with its central offices and mill in Hoboken, New Jersey

By 1898, Lipton had stores all over Britain.

In 1915, the present name of the company was adopted, and it was incorporated in with Sir Thomas Lipton as the president.

Now, Lipton is owned by Unilever, which has committed to quality for over 105 old ages.

Today, Lipton is the universe ‘s prima tea trade name and nowadays in more than 120 states, and is besides one of the few companies that employA adept tea taste testers.

Company ‘s Mission

Bring our wealth of tea cognition and international tea expertness to clients throughout the universe and continuously seek new and improved ways to present the best tea experience for our consumers.

Goal

To run into the mundane demands of healthy tea everyplace.

Aims

The company ‘s aims are prolonging profitable growing, making long-run value for the stockholders, people, and concern spouses, committedness to public presentation and productiveness, working together efficaciously, and a willingness to encompass new thoughts and to larn continuously.

Situational Analysis

Market Analysis

Market Size and Trend

2003

2004

Health Conscious

47 %

67 %

Non Health Conscious

53 %

33 %

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Surveies have shown that the figure of “ wellness witting ” people has grown quickly within Singapore in the past two old ages and the figure is still turning.

Therefore, there is a high potency market for the diet decaffeinated tea as caffeine can do increased pulse, respiration, radical metabolic rate, gastro enteral physiological reactions, and the production of tummy acid and piss increases the hazard of developing chronic diseases such as certain malignant neoplastic diseases and bosom disease.

Presents, the tendency is to maintain tantrum and healthy, particularly for adult females who want to maintain slim. So the diet and decaffed tea will be in hot demand.

Market Rivals

The market rivals of Lipton Singapore are Waitrose Originals, Twining, BOH tea, Gold Kili and Nestea. Although these rivals offer a similar scope of tea merchandise as Lipton, but presently, there is no such tea merchandise in the market that has Lipton DD Mix. For now, they are unable to fit Lipton ‘s advantage with this new value-added merchandise. But in the foreseeable hereafter, these rivals might possibily copy the new merchandise after its launch, and sell it at a much lower monetary value.

Company Analysis

Lipton has been in the industry for more than 100 old ages. Besides being the market leader in the tea industry, it besides has a good trade name image and repute, therefore guaranting a certain grade of client trueness among the consumers.

Merchandise Analysis

Lipton merchandise ranges from black to green tea filled with different spirits, to different healthy tea like diet and decaffeinated. It adapts different ways of packaging in showing teas to consumers for different mark markets ( i.e. tea bags, bottled tea and tea mix ) .

Lipton Diet Decaffeinated Lemon Iced Tea Mix ( Lipton DD Mix ) is a bottled powdery drink that enables consumers to blend up to 40 cups of Iced Tea. It is besides available in a twelve convenient packages in a box.

Target Consumer Analysis

Lipton DD Mix caters to the wellness witting people who are among the immature and the grownups. Some of consumers may hold wellness issues such as high cholesterin, allergic to caffeine and hold diabetes can devour this diet and decaffeinated tea.

It besides caters to those concerned about their diet, and the nutrient or drink they consume, to profit their wellness.

S.W.O.T

The company ‘s selling environment is made up of assorted sectors and forces within the organisation. The followers shows the assorted strengths, failings, chances and menaces of Lipton.

Strength

Lipton is the lone company that has tea, which is both diet and decaffeinated. It may take rivals some clip to bring forth this scope of merchandise. This merchandise line extension has some of import benefits:

First, the same gross revenues force can frequently be used to sell the new merchandises and hence, increase gross revenues efficiency ( i.e. gross revenues per sales representative )

Manufacturing capacity can be better utilised and lower the allocated fabrication operating expense for all trade names

Greater advertisement efficiency when merchandise line extensions are built off an bing trade name name which is known for its quality

Faster credence of nucleus trade name extensions because the flanker trade name is associated with a well-known trade name.

Failings

Lipton already has a broad scope of merchandises. The populace may non needfully accept this new merchandise or the market volume might non be large plenty. Furthermore, it might cannibalise Lipton ‘s other merchandises.

Opportunities

With this new merchandise, Lipton can farther cover another section of the tea market and reenforce its leader place in the industry. Presently, there are no such teas available. It will besides portray Lipton as an pioneer and trendsetter.

Menaces

There are plentifulness of teas from other trade names offered to consumers such as Chailatta Tea, Black Tea, Chinese Tea, Ginseng Tea, Organic Tea, and Herbal Tea. Slimming teas have besides become more popular among the immature grownups. With more and more utility drink drinks available in the market, rivals compete with one another for more market portions.

Target Market

With the increasing outlook and demands of consumers, the challenge of companies in today ‘s tea industry is to offer consumers a better merchandise

Market Cleavage

Market cleavage is the procedure of placing a specific set of features that differentiate one group of consumers from the remainder.

The market for tea can be easy segmented on the footing of gustatory sensation and monetary value. Some persons prefer the highest class of loose-leaf tea because of its gustatory sensation, while others who can non state the difference in quality would purchase chiefly based on the monetary value, trade name image and handiness.

Lipton uses a few chief bases for sectioning the tea market in Singapore, viz. , demographic, psychographic and behavioural cleavage.

Demographic cleavage

Demographic cleavage divided the market into groups based on variables such as age, gender, income and instruction.

Age, Gender & A ; Income:

The entire population in Singapore is about 4,2403,000. 45.8 % of the Singapore labour force is female and the remainder are males. With turning household income, there is an addition in purchasing power. With a healthy life style going a tendency in Singapore, more people will purchase and seek this new merchandise, to experience good and to maintain tantrum.

Education:

Among those with secondary or third instruction, there is consciousness on the preferable and fitter pick of drinks they consume. These consumers gain their cognition on “ diet tea or decaffeinated tea ” through books, Internet and magazines articles, etc. And they are willing to pay a premium monetary value for this tea.

Psychographics cleavage

Psychographics cleavage divided the purchasers into different groups based on societal category and life style.

Social Class, Lifestyle:

Through the authorities promotion runs, it has encouraged people to take a healthy life manner. Hence, tea is one of the picks for healthy drink.

For the immature grownups, they have discovered the pleasance of sipping a assortment of black and green teas, and tea is non merely a fresh, hep drink, but a healthy one excessively. Womans between the ages of 30 to 50 are still the chief tea-drinking consumers, who normally drink it during leisure-time interruptions and in societal mercantile establishments. Among the work forces, who comprises of an increasing section that is seeking the enjoyment of tea. They gain their consciousness of the benefits of tea imbibing through imperativeness studies. Most of them consume tea for wellness grounds, every bit good as to alleviate emphasis.

Our new Lipton DD Mix will be the most preferable among others teas, as it has diet ( low Calories count ) , decaffeinated ( caffeine free ) , natural lemon spirit ( vitamin C ) , more value for money as it has three in one in merely a cup of tea.

Behavioral cleavage

Behavioral cleavage divides purchasers into groups based on their cognition, attitudes, uses, or response to a merchandise, based on juncture, benefits and trueness position.

Juncture:

Buyers can be grouped harmonizing to occasions when they get the thought to purchase, really make their purchase, or utilize the purchase point.

Tea is most frequently consume at breakfast, but Lipton tea agriculturists have promoted imbibing tea as a cool and reviewing imbibe that can besides be consume at anytime of the twenty-four hours.

Benefits:

Lipton tea of course contains flavonoid antioxidants that protect the organic structure against free groups. It helps to keep a healthy cardiovascular system. Our new tea besides contains vitamins, low Calories count ( AIDSs to advance healthy operation of the tummy and bowels ) , and no caffeine.

Loyalty position:

Lipton Tea offers a strong portfolio of trade name. Today, most people associate Lipton with tea because of the ultimate power of a trade name ; that is both modern and rich in heritage.

Target Selling

A mark market consists of a set of purchasers who portion common needs or features that the company decides to function.

Differentiated Selling:

Hot or cold, ready-to-drink, powdered or bagged, black or green, tea is one of the healthiest drinks on Earth, and as such is going progressively relevant to the turning figure of consumers taking a healthy life style. With the new launch of Lipton DD Mix, it caters to those who want to bask a cup of tea without disbursement much and feels slim and healthy at the same clip.

Market Positioning

Positioning is to set up a merchandise to busy a clear, typical and desirable topographic point comparative to viing merchandises in the heads of the mark consumers. The competitory place adopted should be based on fiting merchandise attributes to client demands.

Due to the force per unit area of a fast paced life style, many Singaporeans do non watch what they consume and that consequence in wellness issues. Surveies have shown that 16.2 % of the immature and the grownup Singaporeans are corpulent and this is the 2nd largest wellness job Singapore faced.

Therefore, Lipton DD Mix will be the most preferable among other drinks, as this tea is the first in Singapore that has 3 in1 benefits ( diet, decaffeinated and lemon gustatory sensation ) when consumed. It aims to aim on the differentiated market of today ‘s wellness witting consumers of the immature and the grownup.

Marketing Mix

The end of a market positioning scheme is to make a product-price place that is attractive to aim clients. However, a extremely incorporate product-price positioning scheme will besides necessitate an effectual place-promotion selling attempt which will assist the company construct a successfully mark market positioning scheme.

Selling determinations by and large fall into the four governable classs ( 4Ps ) : Merchandise, Price, Place ( distribution ) and Promotion.

Merchandise ( Characteristics )

Lipton DD Mix is a fast moving consumer good.

A sugar-free drink that can slake thirst in an blink of an eye, contain protective antioxidants and it is a great savoring manner to acquire necessary day-to-day fluid intake.

A innovator merchandise in Singapore with the hope of capturing the wellness witting tea drinkers.

A merchandise under the universe ‘s tea prima brand-Lipton.

Price ( Premium Pricing )

The sensed quality and value of a merchandise is normally indicated by the monetary value

Adopting a premium monetary value policy while still presenting superior client service until competition can fit its beginning of competitory advantage ( i.e. merchandise distinction ) . During this “ monopoly ” period, this premium pricing is sustainable because competition can non fit Lipton ‘s comparative advantage. Lipton should prosecute production cost ( per unit ) decrease and be in strong place to vie at a lower monetary value degree when competition matches their beginning of advantage.

Supplying allowances for establishing and future gross revenues publicity without giving excessively much net income.

To guarantee a meaningful net income for retail merchants, jobbers and company.

Topographic point ( distribution )

Distribution is about acquiring merchandises to clients.

Penetration of bing or new channels: to name or enroll jobbers and retail merchants to administer this new merchandise to clients in Singapore.

Order processing: to put an efficient and effectual manner for distributers to order the merchandise as needed.

Improvement of organisational transit and logistics system to back up distributers for establishing the new merchandise, and to better accomplish distribution aims.

Promotion

Promotion represents the assorted facets of marketing communicating, that is, the communicating of information about the merchandise with the end of bring forthing a positive client response. To bring forth a high grade of consciousness of the merchandise, it is highly important to pass on to the targeted audience. The benefits derived from utilizing the merchandise must be made known to targeted consumers by:

Advertising- by agencies of Television media, Radio, Newspaper, Magazines and Posters

Gross saless promotion- carried out attractive publicities when foremost establishing the merchandise to pull as many clients as possible.

Sponsorship- in amusement activities to beef up the company ‘s public image and repute.

Marketing aims

Merchandise:

For the entire market portion, the aim is to accomplish 15 % by the terminal of the first twelvemonth of merchandise launch.

Price ( Premium Pricing )

Selling monetary value: S $ 11.50 per bottle ( 40 helpings ) , S $ 4.50 per box ( 12 packages ) and $ 1.80 per bottle “ Ready-To-Drink ” ( 500ml ) . This pricing has considered some factors like: Waitrose Original Blend Decaffeinated Tea ( comparative bigger size-80 bags ) , a close rival, is priced at S $ 10.95 and Lipton Green Tea ( similar size-50 bags ) is priced at S $ 6.50 in the market.

At the beginning of merchandise launch, we can offer attractive price reductions in the short-run to carry consumers to purchase ( take downing the “ Hazard ” for consumers )

Topographic point ( distribution ) : Extensive distribution

The chief launch is to accomplish 80 % coverage of supermarkets and convenience shops in Singapore.

Promotion:

The aim of promotional plans is to make an unforgettable feeling of the merchandise in the heads of our targeted consumers.

Awareness- through our intensive promotional plan, we aim to accomplish an consciousness of 80 % by the terminal of the first twelvemonth of merchandise launch.

Selling schemes

Lipton DD Mix is a new merchandise in the Singapore market. We intend to follow a Rapid-Penetration Strategy to establish the new merchandise at a low monetary value ( offering attractive price reductions to take down the monetary value temporarily ) and passing to a great extent on publicity. Heavy publicity will hike the merchandise ‘s image every bit good as converting consumers to purchase the merchandise. This scheme can convey about the fastest market incursion and the largest market portion.

Merchandise

Product class- a comparative high-class merchandise for those who know its value of quality.

Branding- a meaningful trade name name “ Lipton ” reflects on the high life criterion among the populace.

Packaging- an attractive packaging brings a perceptual experience of brightness, verve and merriment with natural goodness to heighten consumers ‘ penchant for the merchandise.

Monetary value

We intend to implement a “ Price leading ” scheme for Lipton DD Mix. This pricing scheme offers the undermentioned advantages:

To reenforce its leader position in Singapore

Adopt a premium pricing to reenforce its “ uniqueness ” and “ premium image ”

Offer attractive trade price reductions to jobbers or distributers and guarantee higher net income border ( comparative to other trade names or merchandises ) for them. Get their “ buy-in ” and “ entice ” them to force gross revenues

Topographic point ( distribution )

Market coverage scheme uses selective distribution from bing or new channels for establishing this new merchandise because of the comparative high merchandising monetary value. For illustration, those supermarkets like NTUC, Cold storage, Carrefour and convenience shops like 7-eleven, Cheers, which possess strong possible to sell the merchandise good, are selected.

Offer higher price reductions to distributers to promote them to transport the new merchandise for resale.

Promotion

Promotion consists of both advertisement, gross revenues publicity, and public dealingss. Ad offers grounds to purchase a merchandise ; gross revenues publicity offers ground to purchase it now. Gross saless publicity consists of short-run inducements to promote purchase or sale of a merchandise. No affair how good a merchandise is, consumers still require some signifier of persuasion in order to convert them that they really need the merchandise. Our promotional schemes involve the usage of the undermentioned vehicles:

Ad: “ high range ” scheme

Ad is the usage of paid media by marketer to inform, persuade and remind consumers about its merchandises or organisation. Examples of advertisement medias include: Television, Newspaper, Radio, Health Magazines, Computer related Magazines, Outdoor transit such as on public coach, MRT and taxis, etc. With a strong nucleus trade name name ( i.e. Lipton ) and a well-established distribution web, Lipton can see utilizing aggregate media like Television, Newspaper and Radio to publicize about its new merchandise offering. The frequence of advertisement in Television, Radio and Newspaper must be intensive particularly for the first 6 months of merchandise establishing to make an exhilaration in the market. This strength will be bit by bit reduced but the continuity must be maintained to transport on the reminding consequence.

Gross saless publicity

Occasional gross revenues publicity is critical, as it is utile for new merchandise launching, it will be conducted to pull clients every bit good as to bring forth high gross revenues volume. To avoid stifling the trade name image, offer a sensible price reduction for the first several months of establishing the merchandise to pull consumers, alternatively of take downing the monetary value for a long-run. A Purchase-With-Gift method is besides recommended ( e.g. giving out a free bottle sociable with every bundle of Lipton DD Mix purchased ) .

Personal merchandising

To post gross revenues boosters at all selected supermarkets in order to make a “ push ” consequence and to ask for valuable feedback from the consumers at the beginning of merchandise launching.

Public dealingss

Public dealingss: Build good dealingss with the company ‘s assorted populaces by obtaining favourable promotion, constructing up a good corporate image, etc. Occasional sponsorship of amusement plans ( i.e. wellness seminars ) will assist the company to hike its repute and relationship with the populace. This in bend will give the organisation a good public image. This scheme will assist to reenforce consumers ‘ mentality ( Lipton merchandise is really good ) and convert them to purchase the merchandise for case, patronizing the one-year National Healthy Lifestyle run held one time every twelvemonth.

Action program and Execution

Implementation ( action program ) :

We have come up with an action program, prior to the merchandise launch, slated to be release in January 2006 in Singapore.

Program Overview

November 2005:

Inform stores, mercantile establishments, e.g. at supermarkets, convenient shops, that a new drink merchandise will be launched in January, and it is under the trade name Lipton.

Request for new merchandise to be placed with the other bing Lipton merchandises in mercantile establishments, for easy designation for clients.

Negotiate and discourse with distributers, to come up with an understanding on the new merchandise.

December 2005:

Confirm the sum of the new merchandise to be distributed and transported to each mercantile establishment.

Fix and confirm the day of the month of transit of the new merchandise to the mercantile establishments.

1 hebdomad before merchandise launch:

Advertise through telecasting, wireless, magazine, newspapers, in-station bulkheads, on cab tops, the Internet and at wellness or Lipton ‘s web site. These create consciousness and generate involvement in the new merchandise.

Ads should stress on the well-known trade name image, Lipton, and the new tea ‘s strengths, which are the diet and decaffeinated.

On the twenty-four hours and during the hebdomad of merchandise launch:

Create exhilaration and wonder among the populace with the new merchandise, by including a package sample with every transcript of a popular magazine, like 8 yearss and Health Today.

A free sample given with a transcript of popular local newspapers, such as The Straits Times or The New Paper.

Budget

Market Expenses Budget

2006

2007

Advertising & A ; publicities

$ 373,320

$ 323,280

Transportation ( cargo costs & A ; distributers )

$ 24,840

$ 19,200

Administrative disbursals

$ 110,160

$ 78,680

Labor ( wages )

$ 80,160

$ 56,556

Others

$ 4,852

$ 4,112

Entire disbursals

$ 593,332

$ 481,828

Since the new merchandise is to be released in January 2006 here, budgets must be planned in progress to guarantee that overspending does non happen. Entire disbursals budgeted for twelvemonth 2006 is much more than in 2007, as more money is needed for making consciousness and distribution of the new merchandise.

Income statement ( Consolidated Profit & A ; Loss ) Account )

2005

2004

Entire gross revenues gross

$ 5,023,440

$ 4,355,760

Cost of goods sold

$ 1,461,120

$ 1,253,640

Gross net income

$ 3,562,320

$ 3102,120

Less-Operating disbursals:

Advertising & A ; Promotions

$ 373,320

$ 323,280

Transportation system disbursals ( cargo costs & A ; distributions )

$ 24,840

$ 19,200

Administrative disbursals

$ 110,160

$ 78,680

Labour ( wages )

$ 80,160

$ 56,556

Others

$ 4,852

$ 4,112

$ 593,332

$ 481,828

Operating cyberspace profits/losses

$ 2,968,998

$ 2,620,292

The budgeted net incomes for twelvemonth 2006 and 2007 are shown above. After subtracting all disbursals from gross revenues gross, the sum is the net incomes we will acquire in that twelvemonth.

With strong advertisement and publicities through media channels, consciousness for the new merchandise will be created. And since Lipton is a trade name, which the populace familiarized and trust, more people and bing clients might purchase the new merchandise to seek. Therefore, the budgeted net income for the twelvemonth 2006 is much more than twelvemonth 2007.

Monitor and Control

Selling controls that we will utilize to supervise the new merchandise ‘s advancement and let direction to reexamine execution consequences, and to take disciplinary action.

8.1. Operating control

Evaluation of the gross revenues will be done one time every two months after the launch, to look into on the gross revenues gross.

Check ongoing public presentation against the one-year program and taking disciplinary action when necessary, so as to guarantee that the company achieves the gross revenues, net incomes and other ends set out in its one-year program.

Hearers will look into exhaustively on the histories that have been done, one time every four months.

Online feedback subdivision provided for bing and new clients about the new merchandise. It besides helps to maintain the company updated on its patterned advance.

8.2. Strategic control

Expressions at whether the company ‘s basic schemes are good matched to its chances.

We should sporadically reevaluate its overall attack to the market place, by utilizing a selling audit. It examines the company ‘s environment, aims, schemes, and activities to find job countries and chances, and to urge a program of action to better the company ‘s selling public presentation.

It is usually conducted by an aim and experienced outside party.

We may besides utilize selling effectivity evaluation instrument and selling excellence reappraisal.

8.3. Efficiency control

Evaluates and improves the disbursement efficiency and impact of selling outgos.

It pertains to the efficiency of the selling section with regard to the gross revenues force, advertisement, gross revenues publicity and distribution channels.

Decision

In decision, this strategic selling program has provided all the information such as assorted chances and menaces, which the company might confront when the merchandise is launched. By mensurating the costs and benefits, we believe that this program will be successful when we implement mensurable action programs and budget control.

We besides believe that this merchandise will be among the best merchandising drink points in Singapore, as now the people are more wellness focused.