Marketing Plan of Lipton Ice Tea
Marketing Plan: Lipton Ice Tea
Industry Analysis
In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel 2005). Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favorable movement in the tea industry can be attributed to two major factors: a) consumers need for convenience and time-saving services; and b) the positive press given to tea.
American lifestyle and work habits have made convenience a necessity. As employers demand for productivity from their employees, consumers are more pressed for time. In addition, the shaky economy has made Americans fear for their jobs; thus, any product that can fill the consumers' need for convenience and speed are almost automatically embraced into the
American lifestyle (Mintel 2005).
For the last decade, the health benefits of tea have gained wide coverage in the media.
Studies continue to show the beneficial properties of teas, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea (Mintel 2005).
Both the need for convenience and positive press on tea have spurred an increase in sales of tea products, specifically ready-to-drink (RTD) teas sold in single-serve containers
(Mintel 2005). Recognizing this trend, various companies in the tea industry have come up with innovative products to take advantage of the booming market for ready-to-drink teas. Lipton tea, one of the global leaders in refreshment brands, launched new products to meet the growing the need for ready-to drink teas and introduced innovative product line to capture the healthconscious market. 3
For over a century, Lipton has been dominating the world tea market with the company’s tea-based drinks including leaf tea, infusions and ready-to-drink tea. Its success has been attributed to the
Industry Analysis
In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely (Mintel 2005). Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future. The favorable movement in the tea industry can be attributed to two major factors: a) consumers need for convenience and time-saving services; and b) the positive press given to tea.
American lifestyle and work habits have made convenience a necessity. As employers demand for productivity from their employees, consumers are more pressed for time. In addition, the shaky economy has made Americans fear for their jobs; thus, any product that can fill the consumers' need for convenience and speed are almost automatically embraced into the
American lifestyle (Mintel 2005).
For the last decade, the health benefits of tea have gained wide coverage in the media.
Studies continue to show the beneficial properties of teas, with health benefits ranging from lower cholesterol levels to improve arterial health and decreasing chance of cancer. This positive press has definitely catapulted the demand for tea (Mintel 2005).
Both the need for convenience and positive press on tea have spurred an increase in sales of tea products, specifically ready-to-drink (RTD) teas sold in single-serve containers
(Mintel 2005). Recognizing this trend, various companies in the tea industry have come up with innovative products to take advantage of the booming market for ready-to-drink teas. Lipton tea, one of the global leaders in refreshment brands, launched new products to meet the growing the need for ready-to drink teas and introduced innovative product line to capture the healthconscious market. 3
For over a century, Lipton has been dominating the world tea market with the company’s tea-based drinks including leaf tea, infusions and ready-to-drink tea. Its success has been attributed to the
Bibliography: Mintel. 2005. “Tea and RTD Tea in the United States.” Available from http://www.liptont.com/our_products/iced_tea/ Sturdivant, S. 1992. “Ready to drink teas and new alliances: the race is on for market share.” Tea & Coffee Trade Journal , October 1992. Available from http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffee-tea/323313- 2.html “Unilever, PepsiCo join forces to meet ice tea challenge.” Available from http://www.foodanddrinkeurope.com/news/ng.asp?id=18257-unilever-pepsico-join Wikipedia. 2007. “Lipton.” Available at http://en.wikipedia.org/wiki/Lipton