2. Mission Statement Tea Garden is dedicated to the advancement
of a healthier tomorrow. Our mission is to create an efficient,
self- serve vending machine with a variety of healthy substitutes
for s oft drinks at an affordable price. As we strive for a greener
environment, we will provide reusable, recyclable cups as an
alternative to plastic bottles and aluminum cans. Our commitment to
the health of our customers, the world they live in, and their
convenience motivates Tea Garden to continually improve our product
to better serve them.
3. Key Marketing Objectives Tea Garden will to focus on
creating a green reputation while also promoting a healthy
lifestyle by offering a variety of nutritious choices and morning
drink alternatives. Tea Garden would like to contribute a 5%
increase in Pepsi Co sales. In addition, we will strive to increase
market shares by 15%- 18%. Tea Garden always wishes the best for
its consumers and will encourage establishment of 100% customer
satisfaction.
4. Target Market health cautious environmentally friendly
individuals from 18- 45 years of age an average household income of
over $50,000 some level of college education on the-go drinkers
Lipton ice tea is marketed globally as the perfect drink for
active, healthy lifestyle
5. Market Demographics of Consumer Demand the biggest spenders
on snacks and drinks from vending machines and mobile vendors are
parents with children vending customers with an average household
income of $50,000-$69,000 and up make up 26.9% of the market share
Consumers with an income of $70,000+ which make up 25.8% of the
market share
6. Media of the target market Consumers who subscribe to
digital cable are 12% above average likely to purchase Lipton
premium teas those who watch Adult Swim are 81% above the average
index likely to purchase Lipton products. Consumers who watch the
cable program Style are 403% more likely to purchase Liptons
premium teas
7. Media of the target market Consumers who watch the Cable
channel Planet Green purchase Liptons teas 382% more than the
average consumer Consumers who read: Life and Style Magazine are
340% Bon Apptit magazine are 195% Bicycling magazine are 317% more
likely to purchase Liptons products than the average consumer
according to New Strategist Publications.
8. Initial Target Our initial target market will consist of
approximately 30,000 consumers whom we will find at the placement
centers of our first five machines Lipton places in St. Louis, MO.
These locations will include : Webster University, St Barnes Jewish
Hospital, the Edward Jones Office Building, local YMCA, and the
Double Tree Hotel and Conference center at Westport
9. Positioning Leadership position in vending choices The Tea
Garden will offer a healthy product at a low competitive price A
timely delivery while cutting down on the waste caused by plastic
and aluminum containers One of the first companies to sell
refillable cups, Lipton is positioning itself above the vending
competition in environmentally friendly practice Tea is the second
most consumed beverage worldwide partly due to its reputation as a
healthy beverage A growing body of research on the benefits of
green tea antioxidants
10. The Tea Garden An innovator in healthy on the go beverage
choices for consumers
11. The Lipton Tea Garden
12. The Tea Garden was inspired by the idea of creating a
healthy, affordable, and environmentally friendly alternative to
consumers everyday on the go choices The Tea Garden name seemed
very appropriate for a product offering a variety of fresh choices
for the consumer including : Strawberry Green Tea, Mango Tea,
Cranberry Pomegranate, Peach, Raspberry, Limon Ginseng, Mixed Berry
and so on.
13. History of Tea: Industry 2737 B.C: the second emperor of
China, as well as scientist, Shen Nung, discovered tea as a leaf
was blown into his water 648: People started drinking tea for its
medicinal qualities. 1958: Tea was introduced to Europeans 1650s:
Tea parties started circulating worldwide and the Dutch introduced
tea to the Americas. 1765 Tea became the most popular beverage in
the American colonies and alcohol consumption declined. 1773:
Boston Tea Party occurred, where there was a protest against
British tax on tea After many disputes, things started to calm down
and countries everywhere started growing tea and trading it across
the oceans.
14. History continued 20th century: there was a significant
rise in tea consumption due to the appearance of tea bags. A New
York merchant, Thomas Sullivan, started sending out samples of tea
bags to customers, who were amazed by the great quality of tea. The
price of tea at this point started decreasing and more people
started buying it. The possibility of drinking tea without the use
of utensils made it the worlds most prevalent hot beverage. Tea
crops were spreading throughout the world, from Japan to Africa and
South America. The tea industry was bringing in three billion
dollars a year (History).
15. History: Industry Presently The amount of space devoted to
tea is tremendous and the increase in the size of the competition
is unbelievable. Today tea is found in warehouse clubs, mass
merchandisers, gas marts, drug stores, convenience stores, and the
even the foodservice sector. Today, there are over 2400 specialty
tea rooms and retail shops all around America (TeaUsa). Tea is
presently grown and produced in over 40 countries worldwide. Every
year, over 2.5 million tons of tea is produced, primarily in Asian
countries (History). In 2009, the tea industry has grown to over
seven billion dollars in sales (TeaUsa).
16. History: Company Thomas J. Lipton Company is the largest
manufacturer of tea in the world. Lipton tea is named after Thomas
Lipton himself, who was a Scottish entrepreneur and innovator that
started his own tea business. He went from having eight dollars in
his pocket to becoming a multimillionaire simply because he
guaranteed quality in his tea and made it accessible to everyone at
affordable prices. Thomas Lipton cuts out the middleman and sells
his teas direct from the tea garden to the tea pot. Lipton is owned
by Unilever company and its headquarters and factory are located in
Hoboken, New Jersey (Tea).
17. History: Company continued.. Lipton controlled about 50
percent of the U.S. brewed-tea market in the mid- 1990s. Lipton
went public in 1897 with its very first stock offering which people
rushed to buy into. In the 1930s and 1940s, regardless of the
economic problems and World War II, Lipton continued to be a
success and make profit. Throughout the decades, Lipton remained
the dominant supplier of bagged tea in United States, Northern
Europe, and other parts of the world as well. Competition rose in
the 1990s, but Lipton remained at the top of the game by increasing
diversity in their food and beverage products. Liptons primary
growth came from the demand for ready-to-drink fountain, canned,
and bottled teas, and for gourmet bagged teas. In 1990, Lipton and
Pepsi formed a partnership to offer seven bottled teas, three
canned teas, and four fountain tea drinks. By 1995, Lipton became
the U.S. leader in novelty ice cream and instant soup industries
and as a top seller of salad dressings, snacks, seasonings, gelatin
products, and various side dishes. A As it had for many years now,
Lipton continues to dominate the global tea industry (Thomas).
18. Internal Environment: Strengths Profitable all year around.
Offer variety, with numerous different flavors Offered at prices
that are affordable for everyone. Lipton tea is naturally
decaffeinated, uses only the top leaves of the tea plant, and is
rich with vitamins and antioxidants which is a benefit to our
consumers if they are looking for a healthy beverage (Kasper).
Lipton has strong brand preference, as well as strong brand
recognition. Being in partnership with Pepsi, has opened up many
opportunities for Lipton and has increased the loyalty of its
customers. The Tea Garden: is promising to improve our environment
by going green. Our recyclable cups will benefit society as a
whole. Our product will make tea more accessible to all and offer
the option to mix flavors if so wanted. Since we are the first tea
company introducing a product as such, we anticipate people will be
eager to try it out.
19. Internal Environment: Weaknesses Developing this new type
of vending machine involves extensive labor hours, planning, and
building to make it work properly and efficiently. Obtaining proper
funding for the creation and promotion segment of our product.
Fight for space at different institutions. Until the Lipton Tea
Garden is a proven success, some companies may not want to take up
room with our vending machines when coffee and soda machines are
already in place. The biggest weakness for Lipton is that people
may be afraid to try new things.
20. External-Micro Marketing Segments: Multiple Target
Approach. Target Markets: Consumers on the go, consumers that lead
a busy life style and move continuously from one place to another.
Health conscious consumers who believe that tea is very good for
the body.
21. Customers Considered & Opportunities Our product is
much cheaper than other similar products so that will be an
opportunity for Lipton in the market. Another important opportunity
is that these vending machines will be more available than other
products. Many tea drinkers choose Lipton because it is really
inexpensive and you can get it just about anywhere.
22. Demographics/Psychographics Primarily a gap from 16 to 30
years old because for them being healthy and keep in shape is very
important. Those looking for something cheap are more likely to buy
the tea. The psychographics might be consumers that are the
health-conscious and on- the-go drinkers that try to give the
healthier option to their body. People that are also concerned
about the environment and being green as much as they can in their
daily life,
23. Purchase Behavior Patterns/Needs and wants. Convenience to
consumers because it needs no preparation, and can be consumed
immediately anywhere. Customers need something to drink and feed
themselves on mornings or evenings. Something to drink that
satisfies all their needs, a product than it taste good, it is
healthy, cheap, always available, etc
24. Competition Major competitor for Lipton in the world ice
tea market is Nestle Refreshment Company, maker of Nestea Ice Tea,
and behind, Snapple. Competition is intensifying in the ready to
drink iced tea market though.
25. External-Macro Political/Legal: In recent years, the FDA
has begun cracking down on food companies that overstate the
benefits of their products. That might be considered as an
opportunity and as a threat at the same time for our business. FDAs
requirements are strict enough to get inside a big trouble.
26. Social/Cultural The social issues and trends also can
affect drastically our business and the entire industry. It is
estimated that roughly 54 million Americans are dieting at any
given time, and an additional 32 million have altered their
consumption in some way because of some dieting philosophy. The
biggest and most important opportunity that we are facing is that
tea popularity has increase a lot threw these last years.
27. Economic The largest increase in costs stem from packaging
and transporting costs. Energy and oil has encountered dramatic
inflation over the last year due to fears of a global supply
disruption and tension in the Middle East. However, competition
restricts manufacturers ability to raise prices.
28. Technological In the last few years, truck chassis and
power plant improvements have been incorporated into transportation
vans. New stepped vans have been designed for service- orientated
beverage distributors.
29. Critical Issues One of many pertinent issues for Lipton Tea
is the competition. Coca Cola/Nestle ice tea in the United States
and some parts of the globe remains a threat to the goals of
Unilever PepsiCo to make Lipton the most dominant player in the
global ice tea market. The fact that costs are getting each day
higher and that represents huge costs for the tea producers.
30. Positioning The products are fabricated using high grade
raw material and are rigorously checked under a strict quality
control process. Our vending machines offer a great product at a
low price with a timely delivery while cutting down on the waste
caused by plastic and aluminum containers.
31. Positioning (Continued) Tea is the second most consumed
beverage worldwide partly due to its reputation as a healthy
beverage. Gree n tea is the least processed and therefore has the
highe st concentration of the protective compounds called catching
polyphenols. There is a growing body of research on the benefits of
green tea antioxidants (Vaux-Bjerke, 2010).
32. Positioning (Continued) The Tea Garden will offer a healthy
product at a low co mpetitive price while observing environmentally
frien dly practices. By being one of the first companies to sell
refillable cups, Lipton is positioning itself above the vending
competition. Liptons Tea Garden will position itself as an
innovator in healthy on the go beverage choices for consumers.
33. Product Strategies Our main purpose is to appeal to and
satisfy our target market, faculty and students at the college
level. Lipton strives to make sure our product appeals to consumers
even more then our competition (i.e. soda and coffee machines) so
they will continually choose Lipton products from the Tea
Garden.
34. Product Strategies (Continued) We will uphold Liptons image
of being a healthy drink by offering low calorie drinks, many fres
h flavors, and a high level of quality that will satisfy ou r
consumer needs. Unlike vending machines that give out a plastic
bottle each time a soda is purchased our machine does not disperse
plastic or aluminum containers and offers the option of customers
bringing their own reusable cups f or purchase.
35. Pricing On average a plastic bottle of soda alone cost
$1.25 while one serving of Lipton tea from The Tea Garden cost only
$0.75. Also, our customers can save both money and the environment
by bringing their own refillable cups from home. If they forgot
their cup at home they can always purchase one of our reusable cups
at our vending machine for $0.25.
36. PLACEMENT Even though Lipton sells products in Europe,
Asia, the South Pacific, Africa and America we will premiere the
machine in the United States. Vending machines will be placed in
large facilities where there are over 5,000 people participating in
their program or purpose. We will start off by introducing the
product in Saint Louis, Missouri. (Webster University, a local
YMCA, Edward Jones, Double Tree Hotel, and Barnes-Jewish
Hospital.)
37. Placement (Continued) The Tea Garden will eventually be
available at gyms, YMCAs, college campuses, hotels, hospitals,
large office buildings, recreation centers and sport park centers
throughout the U.S. Our product will conveniently located for the
health oriented consumer market.
38. Placement (Continued) Open lines of communication between
Lipton and its distributors will be essential. Vendors will need to
take training courses in order to properly be able to maintain the
machine, including the installation, and the replenishment of tea.
There will need to be a set schedule when the machines will be
refilled. The vendors will also need to take courses on how to
repair the machines if there should be any malfunctions. These
vendors will be employed by Lipton, and trained by Lipton.
39. Placement (Continued) We do not expect that there will be a
dire need for reverse channels. On every Tea Garden machine we will
have a customer service number that our customers will be able to
provide feedback about our product. They will also be able to place
any complaints that they might have about our product or the
vending machine. In order to maintain a loyal customer base we will
provide those who are dissatisfied with a refund. The customer will
be able to go to the main office of their location and receive a
gift card that they will be able to use on Tea Garden machines
anywhere. Tea Garden cards will be available at each location and
replenished as needed when the tea is refilled.
40. PROMOTION Also, there will be pamphlets available on the
side of the machine that educates our customers on the benefits of
drinking tea. Our pamphlets will be made using recycled paper.
Lipton Tea is Rainforest Forest Alliance Certified. The Rain Forest
Alliance is guided by ten principles. These principles focus on
conserving eco-systems, protecting wildlife, conserving water, and
managing wastes responsibly. We plan on also joining the alliance
with our new product and meeting its standards. We will encourage
our customers to bring their own cups that they will fill up with
our tea, if they do not they will be able to purchase a 16 oz. cup.
These cups will all be made from recyclable material.
41. Health Benefits of Tea Tea contains antioxidants.
Antioxidants can help slow down aging and help your cells to
regenerate and repair. Tea has less caffeine than coffee. Tea helps
keep you hydrated. Tea can create a calmer & more alert state
of mind. The amino acid L-theanine found in the tea plant alters
the attention networks in the brain and can have demonstrable
effects on the brain waves. Tea may reduce your risk of heart
attack and stroke. Tea helps to prevent the formation of dangerous
blood clots which are very often the cause of heart attacks and
strokes. Tea aids in digestion & increases your metabolism. Tea
strengthens your immune defenses. Tea lowers stress hormone levels.
Black tea has been shown to reduce the effects of a stressful
event. (Health Benefits, 2007-2010) The Rainforest Alliance is a
nonprofit conservation organization that works to conserve
biodiversity and protect the rights and welfare of workers, their
families and communities. Lipton is a proud member of the
Rainforest Alliance. LIPTON only uses the top leaves of the tea
plant. These are the youngest, most tender and most flavorful
leaves that produce the best, highest-quality cup of tea. We grow
our own. We have our own tea estates in India, Kenya and Tanzania.
We also conduct extensive research programs at our estates to
improve growing and harvesting practices so you enjoy a dependably
delicious cup.(Lipton Tea Experts, 2010)
42. PROMOTION (Continued) Our website and social network sites
we will use will provide our customers with the health benefits of
Lipton tea. Even though our customers will not be able to purchase
our product on the internet, large establishments will be able to
contact us to request the installation of a Tea Garden.
43. PROMOTION (Continued) We will add a new tab for Tea Garden
on Liptons official website. On this site customers will be able to
find out about the benefits of drinking tea, our environmentally
friendly approach, the different flavors available, and where to
locate a machine near them.
44. PROMOTION (Continued) We will promote Tea Garden on social
networks, primarily on Facebook and Twitter. Our marketing
department will create a page that focuses on our new product.
Status updates will provide consumers with very timely information
about promotions we have going on at the time and where we will be
holding promotional events.
45. PROMOTION (Continued) A portion of our market will rely on
information they receive from their peers who have tried beverages
from Tea Garden. Consumers will be able to upload videos about
their experience with our product on our website. Our marketing
department will filter through the videos and post the best ones on
our official website, as well as on Facebook. Our consumers will be
able to create their own commercials.
46. Advertisement We will focus on healthy magazines, food
magazines, women magazines and sport magazines. We will place ads
in Better Homes & Gardens, Good Housekeeping, Midwest Living,
Readers Digest, Sports Illustrated, Weight Watchers, People, and
Fitness magazines (Publications, 2005).
47. CALENDAR We will hold events monthly at large facilities
where we will have samples for game goers. These events will be
held at universities, YMCAs, hospitals, offices, and hotels. We
will have booths at large football and soccer games at several
universities in the Saint Louis area (See Calendar). One of the
most effective buzz marketing strategies, the taste testing has
been perfected in recent years by CSD giant PepsiCo. By increasing
trial usage, we feel that Lipton can dramatically raise brand
awareness in the community. We plan on hosting taste-testing events
in conjunction with community events.
48. Tea Garden Rewards At these events, as well as Tea Garden
locations, our customers will be able to sign up for a reward
program. By being part of the reward program they will swipe their
card every time they make a purchase. After making ten purchases
they will be receive a free cup of tea. We believe this will
motivate customers to purchase more frequently.
49. Ready to Drink Industry Sales in 2008
50. Lipton Sales Industry Sales 2,005.5 M 100% Lipton Sales
727.1 M X x = 36.26%
51. Forecast Unit Sales
52. Average Selling Price Total Dollar Sales
53. Plan Budget
54. Contribution Profit Assessment
55. Break Even Analysis
56. Performance Evaluation Increase Liptons market share by
0.01592% in the Ready to Drink Tea Market by 2011. Achieve daily
sales of 200 units per machine on the five machines that will be
placed. In the year of 2011 Tea Garden should earn a profit of
$45,000 or more Maintain a 100% customer satisfaction. Key
Objectives