Company Summary
The following report has been prepared to establish a new line of tea product that is sold in the large supermarkets of Australia, especially Coles and Woolworths. The product that has been selected in the following project is Lipton Tea which is the one of the best products of Unilever Company. The product already has its presence in the Australian market but the aim of the company is to ensure the modification of the product into a more sophisticated and effective brand. The modification of the following company will help the product to increase its sales and compete in a totally new segment of the tea market of Australia.
Unilever is a British-Dutch transnational consumer goods producing company that is headquartered in Rotterdam, Netherlands. The products of the company vary from a lot of different ranges including food and beverages, cleansing products, personal care products to other kind of different products. The large number of brands owned by the organization cannot be just listed down at one go. The company is a dual listed public limited company and was founded in the year 1930. Headquartered in London and Rotterdam, the annual report of the company shows total revenue of US$62.222 billion with a net income of more than US$6.9 billion. With a total of more than 169,000 employees, the company is termed as one of the largest global employers. Some of the main products of the company include the likes of the Axe/Lynx, Lipton, Lux, Sunsilk, TRESemme, Rexona, Magnum, Vaseline and many more as such (unilever.com, 2018).
As mentioned earlier the following report has discussed the modification of the Lipton brand of tea. Unilever will launch the Ayurvedic flavor of the tea in the Australian market which will initiate a totally new market of flavored tea in the country. The sales of Lipton Ayurvedic Tea are expected to be initially a 10000 units per month which will initially rise to 40000 units after a stable period of 5 months. The major competitors of the brand will be the Tetley range of Ayurvedic Tea by Nestle (Tanner & Raymond, 2015). Though Lipton occupies a great market share in Australia, the new products of Nestle has been quite a revelation in the country.
The rising number of health problems added with the rising amount of chronic diseases has made the population of Australia quite vulnerable. The introduction of the new line of Ayurvedic Tea product will just act as one of the products that have a large range of medical benefits. Consuming Ayurvedic Tea is being strongly recommended by the Doctors. Therefore the decision to introduce the modified version of Lipton tea comes at just the right time. Apart from this the rising growth of Nestle products in the form of Tetley tea can also be cited as one of the reason for the introduction of the particular kind of modified tea (unilever.com. 2018). The marketing environment is just suitable enough for the introduction and the launch and growth of the product in the Australian market.
Product Segment Summary
The target market of the proposed product depends on different types of factors including demographic, geographic and psychographic factors. The demographic factors for Lipton Ayervedic Tea will be the income, time of purchase, customers purchasing the product, average age of the people buying the products and many more as such (Armstrong, et al., 2015). The product is especially designed for the middle and high range income earning people and the average targeted age for the particular product will be between 32 to 65 years. The product will be available at all the geographical stores in Australia irrespective of their size and annual turnover, However the company has decided to abstain from directly entering the rural supermarket segment as it will be mainly based on the assess of the success of the product in the market (Tanner & Raymond, 2015). The product will surely be liked by the people who like to stay fit and healthy especially after the age of 30. Thus the medical benefits will surely play a great pshycographical part in the success of the product in the market of Australia.
Unilever being one of the top marketers in Australia has to provide a unique selling strategy that helps to separate them from the competition by offering a special benefit to the customers on Lipton. The company wants to provide a unique flavor to their customers of the same range of tea that they regularly buy from the supermarkets. The marketing mix strategy has been created by the management of the company keeping in mind the specific range of benefits (Khajavi, et al., 2015). The following strategy involves the pricing, advertising as well as the distribution strategies that will be used by the organization to promote the new brand in the Australian Market.
Product:
Lipton is one of the most popular and preferable brand of tea in Australia. Being a t6ea brand the product has a very strong line in the tea segment only. The company has released different types of flavors of the following brand in the market which has been helpful to extend the brand portfolio of the product (Goworek, McGoldrick & McGoldrick, 2015). The new brand named Lipton ayurvedic is basically based on medical characteristics and thus will have a unique market in Australia. The tea will offer large scale medical benefits and will be essential for the consumption of different individuals especially for the middle aged people. A market survey of the brand has generated a positive response and thus it suggests the popularity of the brand once it is established in the Australian market (Di Benedetto, Calantone & Brioso, 2015).
New Product Rationale
Price:
Price is one of the main factors on the success of the following brand in the Australian market. The large consumption of tea in the market is one of the main positivity for the product. The presence of large scale supermarkets like Woolworths, Coles, IGA makes it a tough choice for the company to select the price. This is because the organization has to ensure that the price are kept in line with the different policies of the supermarkets to provide the best value for all of the products they sell to their customers (Cook, 2016). The targeted segment of the Lipton Ayurvedic tea will be the upper and middle class segment of Australia which suggests that the price will be a standard one to meet all the different needs of the customers, the company as well as the sellers.
Place:
The place is one of the most important considerations before the launch of the modified Lipton tea in the Australian market. The marketing of the following product has been done in different supermarkets and large departmental stores of Australia. The places for the marketing have been select6ed after a thorough revision of the different market segments and the thorough revision of the different characteristics of the market (Bouncken et al., 2018). The products will be initially available in all the different supermarkets namely Woolworths, Coles, IGA and many more as such. A number of distributors amounting to more than 400 have been fixed to manage the distribution and supply chain network of the following product.
Promotion:
The promotion of the brand will be exclusively performed by a selected group of marketing team in Australia. A number of different marketing and promotional technologies will be applied in the course to promote the product among the target segment and to make the customers have a clear and transparent idea about the price, place of availability and benefits of the product. The promotional technique will use the likes of television, online and social media promotions which are believed to be the best forms of the modern forms of marketing and promotions (Chang & Taylor, 2016).
Conclusion
The following report has been successful in providing the detailed elements that needs to be considered before the launch of a product in the market. The description of the different marketing features like marketing mix and market segmentation of the product will surely help to make the report more compact in nature. A thorough analysis of the report helps the readers to analyze the steps and marketing initiatives involved in the launch of a product in the market.
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Cook, A. G. (2016). Forecasting for the pharmaceutical industry: models for new product and in-market forecasting and how to use them. Gower.
Di Benedetto, C. A., Calantone, R., & Brioso, R. R. (2015). Models of Successful Industrial Product Launch: What Drives the Development Process?. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference(pp. 204-204). Springer, Cham.
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Khajavi, S. H., Partanen, J., Holmström, J., & Tuomi, J. (2015). Risk reduction in new product launch: A hybrid approach combining direct digital and tool-based manufacturing. Computers in Industry, 74, 29-42.
Tanner, J., & Raymond, M. (2015). Principles of marketing. University of Minnesota Libraries Publishing.
unilever.com. (2018). Retrieved from https://www.unilever.com/brands/food-and-drink/lipton.html
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