Marketing Plan of Lipton Ice Tea

2383 Words Oct 3rd, 2009 10 Pages
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
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PepsiCo is expected to build the sales of the Lipton ice tea in 60 countries including
Brazil, Spain, Greece, Poland, Czech Republic, Slovakia, Hungary, Albania, Romania, Thailand,
Singapore, Vietnam, Australia, Turkey, Egypt, Saudi and the six Gulf States.
The Pepsi Lipton International venture is a logical expansion of an earlier collaboration between the two companies. The Pepsi Lipton Tea Partnership was set up by the two companies some 10 years ago to expand sales in the North American market, and is now firmly established as the leading RTD tea player in both the United States and Canada.
With the aim of achieving a similar level of market dominance in the rest of the world, the latest joint venture will aim to leverage the strengths of both parents. It will principally sell ready-to-drink tea concentrate to franchise bottlers for distribution by
Pepsi. As the world's largest tea producer, Unilever will bring the brand, knowledge of the tea industry and a substantial research and development capability to the JV; Pepsi will contribute access to its extensive bottling and distribution network with strong customer relations (“Unilever PepsiCo” 2003).
Customer Analysis
There are two major target markets for

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