1. 1. Sebastain Alvarez, Maida Jusufovic, Jenny Kaveney, Gina Kothe, Edita Kovacevic, Jake Menkoth, Agustin Villalba
2. 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. 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. 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. 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. 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. 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. 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. 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. 10. The Tea Garden An innovator in healthy on the go beverage choices for consumers
11. 11. The Lipton Tea Garden
12. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 49. Ready to Drink Industry Sales in 2008
50. 50. Lipton Sales Industry Sales 2,005.5 M 100% Lipton Sales 727.1 M X x = 36.26%
51. 51. Forecast Unit Sales
52. 52. Average Selling Price Total Dollar Sales
53. 53. Plan Budget
54. 54. Contribution Profit Assessment
55. 55. Break Even Analysis
56. 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
57. 57. Performance Evaluation Customer Satisfaction Survey 100% Customer Satisfaction Sales Report Achieved Daily Sales Increased Market Share Profit Earned