Lipton Tea Lipton

Topics: Lipton, Tea, Iced tea Pages: 8 (2489 words) Published: May 3, 2013
Lipton is one of the best known and bestselling brands of tea and has made a big splash in global market with its tea-based drinks including leaf tea, infusions, ready to drink tea and other alternatives to soft drinks. It has a wide product range which includes, Yellow Label Tea, Lipton Ice Tea and Lipton Green Tea (Unilever, 2011) SWOT Analysis

SWOT analysis is a strategic plan that is used by businesses and companies to evaluate the strengths and weaknesses that can make or break their organization. It also highlights the opportunities that a company can consider and threats that can cause problems for a company. Strengths and weaknesses are internal organizational factors where as opportunities and threats are external factors for an organization (Kotler, 2009) Strengths

i. Lipton is a brand of Unilever, which is a multinational company with huge funds and profits and business spread all over the world. Hence, Lipton through Unilever has access to vast markets and large customer data base. Consumers too, trust Lipton as a brand since it is a product of a great company like Unilever. ii. The biggest strength of Lipton as a company is that it has existed for years in the market and has operations worldwide in over hundred and ten countries. (Unilever, 2011) Hence, it has strong brand recall and brand awareness. People all over the world are aware of the brand and have strong recall of it. Moreover, the company has a large number of loyal customers that have stayed loyal to the brand since years. iii. Lipton uses internet based marketing techniques extensively to promote offers, discounts and introduction of new products and services (Boyer and Hult, 2005) It also has competent management team which is able to perform outstandingly even in existing fierce competition and high inflation rates. Through its management team Lipton Tea has retained its position as the market leader with the sales of nearly over three billion today. (Unilever, 2011) iv. Lipton as a brand has strong ethical values and its slogan for Lipton Tea “Lipton Tea Can Do That” has been successful worldwide (Lipton, 2011) v. Another prominent strength of Lipton is that it comes up with new innovative products quickly to satisfy changing consumer demands. It has come up with different tea flavors like as Lipton Vanilla and Lipton White Tea Pomegranate for its consumer’s. Moreover, Lipton realized the growing need and demand of market for green tea and instantly came up with its Lipton Green Tea product to satisfy its consumers (Lipton, 2011) Weaknesses

i. One of the biggest weaknesses of Lipton is its high price. Due to this a lot of consumers are unable to buy the product. ii. Tea is a habitual need of many people around the world. Hence, the competitors in market are immense. These include Indian and Chinese tea production companies that have generally lower prices than Lipton. Moreover, since Lipton has operations in more than hundred countries, the local tea producing houses are also potential competitors. iii. There are also potential substitutes in the market available for tea. These range from coffee to juices and soft drinks. iv. The positioning of Lipton as a brand is such that it has given an image of a premium product. Such positioning has resulted in low emotional attachment on the part of consumers for Lipton. Opportunities

i. One of the biggest opportunities for Lipton is the increasing population growth globally and the increasing growth of tea market all over the world. Lipton can, hence, increase its customer database. ii. People all over the world have become health conscious even when it comes to drinking tea. Green tea has become a favorite for all people regarding losing weight. Hence, Lipton can exploit this particular consumer need and increase its market shares. iii. Lipton has exploited markets all over the world but there are markets remaining to be exploited. It can exploit...
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