Teas n' Line: Market Analysis

The soft drink industry is one of the most highly profitable industries in the USA. Also, the competitive market is a very large market. Americans consumed about 53 gallons of soft drinks per person a year in 2000 by $ 60.3 billion!! Comparing with the market in 1990, since it was 47 gallons. In recent years, the market growth has slowed.

As the name suggests Honest tea is a brand that produces 100% organic iced teas, aimed at the health conscious. In this assignment I will attempt to, identify the target market, conduct a situational analysis as well as set SMART communication objectives for the brand.

The existing concentrate business is largely controlled by Coca-Cola Company (Coca-Cola) and PepsiCo (Pepsi), together claiming a combined 72% of the U.S. carbonated soft drink (CSD) market sales volume in 2009. Refer to Exhibit 1 for an illustration of the CSD industry value chain. For more than a century, Coca-Cola and Pepsi have maintained growth and large market shares through mastering five competitive forces, shown in Exhibit 2, that drive profitability and shape the industry structure.

As a consequence of recent political changes in some of the countries where the company operates, the global economy continues to be in doldrums. Though the black tea market has been growing steadily in Asia, there has been a fall in the everyday black tea consumption in some of the developed markets. Consumer behaviour has evolved over time with some customers seeking better value and others seeking convenience, health and improved lifestyle.

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten

stores counted on soft drinks to generate consumer traffic, so they needed Coke and Pepsi products. But due

As we all go about our day, we rush to place to place. Around us there are things for sale, people everywhere trying to make money. As we are rushing around, we all tend to get thirsty as we have a thousand things going on. In America we have dozens of choices when it comes to soft drinks, although the two most widely known are Coca-Cola and Pepsi. Many are often stuck between choosing Coke or Pepsi; even though they are slightly different in appearance, taste, and price it makes a world of difference to the customer.

For its oriental, tranquil looks, suggestively more health conscience ingredients and international wording 'Arizona ' green tea has gained popularity. It now follows the line of many other drinks which have entered this age group over the years, it appeals first to a few, who want to be different and then to almost everyone else to be more like the rebellious. 'Arizona ' Green Tea has not only established a market for its product, but has become

For supermarket and restaurant chains, the sale typically is made to the purchasing department/buying division of the retailer. These sales often involve a significant amount of field testing by the direct sales force, giving Tasteless a competitive advantage. Tasteless heavily advertises its products in trade magazines and attracts individual sales through advertising in media such as health care magazines. Individual clients include CEOs of Fortune 1000 companies, as well as individuals from coast-tocoast. Management’s objective is to establish Tasteless as the most recognized and respected tea brand in the U.S. market, eventually supplanting Lipton Tea as the market leader in tea brand recognition and tea sales in both the higher-end and lower-end tea markets. While Tasteless currently is experiencing some sharp growing pains, the good news is the growing interest in different types of non-traditional beverages, combined with increasingly health-conscious baby boomers and younger adults. These factors have tripled sales over the past five years ending December 31, 2008. At the same time, new local and regional competitors with a bevy of new products are offering fast delivery from local production centers and in some cases lower prices, challenging Tasteless for retail shelf space. Without this shelf space, especially in supermarkets, Tasteless’ tea products cannot be retailed on a volume basis. Tasteless has

The new products division of Palmer Jackson, Inc., a Cincinnati-based food and beverages manufacturer, successfully perfect a technique for dissolving common antioxidants such as Vitamin E and Selenium into high-glucose beverages. As a result a new line of sports beverages with added benefit of antioxidants occur. Palmer Jackson hired AccuityBrand, a brand consultancy specializing in developing product names and logos, to name and develop creative

Portland Drake Beverages (PDB) had acquired Crescent Pure, a non-alcoholic, all natural energy enhancing and hydrating functional beverage. Having organic ingredients as the bases of Crescent Pure beverages made the perfect acquisition for extending the PDB organic brand to more markets. These multiple attributes made the drink an attractive product for the consumer, but the necessity to position it, sparked a debate. Some people wanted to market it as an energy drink, while others wanted to market it as a hydrating drink. The VP of marketing, Sarah Ryan, thought that although Crescent Pure fit both of these categories, there was an alternative option. The third option would be to position the new beverages as healthy drinks, this would be a broader market positioning strategy, one that a transcendent product like Crescent Pure, could fulfill. The concern was to simultaneously position the drink in the most lucrative market, while also ensuring that the drinks attributes aligned with the market consumers’ needs.

The Coca Cola company is perceived to be the most famous trademark on the globe, and it is equally so. The company claims more than 400 brands that appeal to a wide range of individuals throughout the world. They are in a position to fulfill needs of every one of their buyers making their experience with their beverages a better one. The entity’s drinks entice a lot of people across all races, age, and gender. Coca Cola is outstanding for its overall popularity as its items are sold in over four hundred countries in the world, while major contenders like Pepsi are just available in very few countries. Such a competitive advantage has placed

Coca-Cola Great Britain (CCGB), is the largest manufacturer, distributor, and marketer of non-alcoholic beverage in the UK, employing 4000 people and operating out of 13 locations (Odell, 2015). CCGB currently produce 19 brands and 96 different products, UK sales rates of 4 billion bottles and cans per year. Which has aided in CCGB achievement as the market leaders and cemented their presence as one of the most globally recognisable products. (Jorgensen, 1994). In 2015, Coca-Cola unveiled a new retail marketing strategy, entitled “the One Brand” strategy, designed to address growing concerns towards Coca Cola’s products, caused by the worldwide debate on sugar and its links to global obesity (Roderick, 2016).

Coca-Cola Great Britain (CCGB), is the largest manufacturer, distributor, and marketer of non-alcoholic beverage in the UK, employing 4000 people and operating out of 13 locations (Odell, 2015). CCGB currently produce 19 brands and 96 different products, UK sales rates of 4 billion bottles and cans per year. Which has aided in CCGB achievement as the market leaders and cemented their presence as one of the most globally recognisable products. (Jorgensen, 1994). In 2015, Coca-Cola unveiled a new retail marketing strategy, entitled “the One Brand” strategy, designed to address growing concerns towards Coca Cola’s products, caused by the worldwide debate on sugar and its links to global obesity (Roderick, 2016).

There are times when I simply cannot decide between sweetened iced tea, and unsweetened iced tea, but offering me a third option (that is most similar to one of the sweetened levels for example, ¼ sweet tea mixed with ¾ unsweet) to aid my decision making process has been a well-documented marketing strategy for years. Introducing a “decoy” (or dominated alternative) helps consumers narrow their focus on the simpler choice. However, choosing sweet tea may involve giving up the fewer-calorie-healthier-for-me option found in the unsweet tea, and this can cause conflicts in my process that result in an absence of the decoy’s intended benefit. Choosing the sort of iced beverage I consume on a hot day has little significance compared to the sort