Lipton Marketing Strategy

Topics: Tea, Marketing, Tea culture Pages: 8 (2577 words) Published: April 3, 2012
Product Name: Lipton Tea

Table of Contents

2.0Overview of Consumer Behavior Audit for Lipton tea3
2.1Market segmentation3
2.2Product positioning4
2.4Distribution strategy5
2.5Promotion strategy5
2.7Consumer satisfaction and commitment6
Reference List8

1.0 Introduction
Lipton as one of Unilever’s brands established by Thompson Lipton in the UK is now the world’s largest tea brand regardless from reputation or sales volume, which is marketed in global 110 countries and regions including Australia. Meanwhile, Lipton tea is also the third largest nonalcoholic beverage most consumed by the global consumers, only next to Coca Cola and Pepsi. According to the statistics, Australians consume more than 22 million cups of tea every day (Unilever, 2012). Lipton provides consumers with a wide range of options, including black tea, green tea, large leaf tea, ice tea, herbal infusions, and Chai tea, so as to cater for their different tastes and preferences (Unilever, 2012). The purpose of this report is to analyze the market for Lipton tea using the categories and questions listed in the consumer behavior audit as a framework. After the overview, the report will identify the most important facets of the selected product’s market.

2.0 Overview of Consumer Behavior Audit for Lipton tea
According to Quester, Pettigrew & Hawkins (2011), the consumer behavior can be analyzed from market segmentation, product positioning, pricing, distribution strategy, promotion strategy, product, as well as consumer satisfaction and commitment. On this basis, it will provide an overview of consumer behavior audit for Lipton black tea from those perspectives.

3.1 Market segmentation
Consumers in different market segments will have different buying behaviors. Four typical types of segmentation criteria are geographic segmentation, demographic segmentation, psychological segmentation, as well as behavioral segmentation (Kardes, Cronley and Cline, 2011). On this basis, Australian tea market will be mainly influenced by some demographic variables such as culture, gender, age, occupation and income. To be specific, a majority of Australians are the descendants of British people and inherited their living habits and cultural traditions including drinking tea. In particular, they prefer to have black tea in bags and emphasize one-time brew. On this basis, their tea culture is consistent with the consumption of Lipton tea. This product is appropriate for male and female consumption, because it is with the function of keeping healthy. It is researched that Australian women pay much attention to keeping fit (McColl-Kennedy, 2011) and there are about 100,000 women more than men in Australia (Mercer, 2008). Hence, the ongoing gender-role changes will influence who consumes the product or how it is consumed. However, people there do not have different consumption pattern in relation to tea due to the difference in ethnics, society, region or religion. Consumers with different ages, sexes and occupations usually differ in their consumption of product. For example, young women may tend to pursue the function of losing weight while elder women attach much importance to health. In addition, students and professional people will be also different in consuming tea. Lipton tea does not have a very high price positioning, so this product is appropriate for the common public without strong requirement for income. However, this product is particularly suitable for professional women as the target consumers of Lipton tea. It would be very useful to concentrate on specific adopter categories. In this way, they can better satisfy consumer needs. Moreover, groups at different stages of family life cycle might have different consumption patterns for the product. As a whole, housewife in the family is involved in the whole purchase process. In...
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