Aanchal Narula * Ryan Miller * Lisa Sousa

Agenda
Company Background Competitive Analysis Marketing Environment Target Market Marketing Mix Recommendations

Profile
Tea is 2nd most consumed beverage in world Tetleys Black Tea most prominent in Canada First imported in 1716 by HBC HBC began importing through Tetley Officially came to Canada in 1968 Joined the Tata Beverage Group Family Top in Canadian consumers minds Maintain position as traditional & relaxing beverage-of-choice in Canada

Products
Strict focus on tea Black teas, Red teas, Herbal teas, Specialty teas, Green teas, and more

In-Home Tea Out-of-Home Tea Indirect Beverages

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Competitor:

Unilever is Tetleys major competitor

Unilever Canada currently owns both Liptons Tea and Red Rose Tea. Purchased Red Rose in 1985. Largest producer of tea and tea related products in the world

Competitor: Tim Hortons

Tea products are offered in a wide variety of locations (Retail, Grocery Store) Strongly linked within the Canadian mind set Affordable compared to tea shops Sells the most cups of tea in Canada Has a relatively small product line in comparison to competitors

Competitor: Starbucks (Tazo Tea & Teavana)

Starbucks purchased Tazo Tea company in 1998 Started in Portland Oregon in 1994 under the brand STASH Offered in a variety of different locations Offers a wide range Teavana teashop similar to Davids Teas Replicate same vibe as Starbucks, place to hang out Both Tazo and Teavana offers fairly expensive specialty teas Offer a variety of herbal, fruit, and green teas as well black teas

Positioning Map

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Competitive Advantage
Purchased by TATA Worldwide in 2000 TATA is a multinational company that has a strong beverage division Distributed all over the world (North America, Europe, South America, Australia, Asia) Continued innovation of tea products TATA uses their strategic alliances to provide a competitive advantage over their competitors Strong tea brewing tradition since 1837

One of the oldest tea companies in the world

Largest market share in Canada 31%

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Positioning Statement

To busy urban women who need to relax, Tetley is a traditional tea that gives you peace of mind.

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Marketing Environment
Demographic Changing Age Structure
Median age has risen
Baby Boomers & Gen Y Kids Increasing Life Expectancy Gen X couples having less kids

Economic Price of Food Increasing Tea is considered RecessionResistant

Especially for In-Home Low-Involvement Purchase

Net International Migration

200 different visible minorities Chinese, Jamaican, & South Asian ethnicities Strong presence in media landscape

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Marketing Environment
Legal & Political Regulatory Frameworks Food & Drugs Act
Health Canada
Safe for Consumption

Difficult to Grow Tea in Canada

Imported from Sri Lanka, India, China, Argentina, & more No tariff on importing

Canadian Food Inspection Agency

Packaging, Labelling, & Advertising General Health & Functional Claims

Not following these rules may land Tetley in Hot Water

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Marketing Environment
Cultural People are becoming more aware of the benefits of tea Reasons why people avoid tea
Perceptions of high caffeine Not convenient enough

Growing interest in Premium Teas

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Target Market
Descriptive
Geographic
Distributed worldwide but each region of consumers is marketed to differently
Divisional offices in each country to take care of this

Canada-> campaigns and products are nationwide However, some regions will be marketed to differently
This is dependent on tea drinking statistics

Demographic
Mainly female, highly educated, middle to upper class Heavy drinkers = Baby Boomers, light drinkers= Gen X and Y Interesting because Tetley is looking toward the future

Psychographic
Want an experience Needs oriented instead of tea-type oriented Health conscious Mainstream & Resigned Reformers & Explorers

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Target Market
Behavioral
Usage
Currently 10 billion cups of tea are consumer in a year (in Canada) to rise 40% by 2020 Black tea is most popular but specialty gaining Out-of-home is increasing , in-home decreasing Tea bag dominates but loose-leaf and pods are increasing in popularity Based on needs, not tea type

Loyalty Seasonality
Tea is seasonal in nature Sizeable Facebook Fan base of over 60,000 Consumers are aware of the product
Targeting lies in creating a preference

Focus on existing users

Benefits Sought
Trend toward healthy living looking for these benefits Experience Complexity and versatility Convenience

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Marketing Mix: Product

Mass-produced convenience product
Widely available at grocers, convenience stores, restaurants, etc.

Goal: Differentiate brand Brand name is widely known

Tradition

Experience has given ability for quality assurance Own innovative packaging
Round tea bag Stay-fresh containers Mood & colour-coordinated labelling

Augmented Service features for Canadians:

Customer service email Facebook Page

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Marketing Mix: Place

Indirect Marketing Channel

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Marketing Mix: Price

The price of Tetley Tea products is dependent on Retailers
Therefore, the price of Tetley Tea can be considered in several ways:
Good-value pricing & value-added Competition based
Tea market and grocers Cost-plus pricing
In-Home Brand Tazo Twinings Lipton Stash Tetley Celestial Presidents Choice Our Finest (Walmart) Price (per 20 bags approx.) 5.47 4.37 3.67 3.47 3.27 2.99 2.79 2.28

Cost-based Also slightly psychological Geographical

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Marketing Mix: Promotion

Tetley Colour Therapy

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Marketing Mix: Promotion

Mind. Body. Spirit.

Consumer-Oriented versus Product-Oriented Starting your morning off right

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Marketing Mix: Promotion

Green Tea Renewal Party

Experiential campaign Target: Generation X & Y Receptive to CSR initiative

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SWOT
Strengths
Strong Tradition Continue to innovate and make new products Largest market share in Canada

Weaknesses
Brand perceived as oldfashioned. In-home less convenient for todays busy consumer In-direct distribution channel

Opportunities
Generation X and Y becoming increasingly interested in tea Consumers are looking for an experience Specialty Tea business is rapidly expanding

Threats
Losing customers to new speciality teas. Consumption of tea is less in-home and more out-ofhome Market place becoming cluttered with new tea brands.

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Recommendations
Continue to focus on needs of consumer rather than on product Continued focus on female consumers Target generation X and Y more heavily while ensuring loyalties are not severed
Building and harvesting light users not non-users

Consider out-of-home experiences and direct interaction with consumers Continue innovation & think beyond the bag Focus on market development

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Recommendations

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Rationale for Positioning Map

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Source: TEA TIME SURVEY for The Tea Association

of Canada by Nielson, September 19, 2013

Figure 2.3 Product/Market Expansion Grid

AAM 520 - Introduction to Marketing