Developing an integrated Marketing Mix Plan for a new brand (TEA) - Research Paper Example

Developing an Integrated Marketing Mix Plan for a New Brand (TEA) At the current the world tea market is swiftlydeveloping with emerging customer necessities. The importance of the drastic change is noted from the export of value added tea products is highlighted in literature to face the shortcomings that are increasingly aggressive beverages. The firms fail to address the competitive forces by developing their marketing policies will minimize the competitors (William 56). The marketing policies adopted by the organizational leaders, they direct their firms towards gaining the competitive advantage in the value added tea industry are discussed in the research. Data is collected through interviews with founders of nine firms using an interview guide and use records at the UK Tea. The results produced that brand structure, position advertising, product discrimination, cost control, and customer center were the most important policies approved by the organization. Opening up new markets abroad, fair trade, ecological sustainability, and closer delivery were acknowledged as imperative policies that are distinguished compact from contenders and located them among the market influential. It was also discovered that the deliberate resolutions could be endorsed to vision of the leaders, menace taking, their eagerness and assurance. Identifying marketing policies depending on the firm’s competence and modernization, and is found fundamental for the cost added tea export industries to attain production realization as well as to make significant involvement to the United Kingdom market. Introduction The Tea Processing market research reports on that provides the key industry with the analysis and market statistics, measures the market size, analyzes the current and future industry trends and identifies to the industries the share for the largest markets. The IBIS World publishes the largest collection of the economic report so that an industry can have a supply chain, economic drivers and key buyers and sufficient markets for their products. Tea is distinctly the British beverage, and more than 60 billion mugs of tea are taken annually in the United Kingdom only. The Britons are noted as the world tea drinkers per each capita, it has over 1,200 diverse types of tea sold all over the country. Viewing it from the economic depression and dilapidated customer expenditure, the Tea processing industry has remained resilient, due to its staple and cheap nature. The majority of the of the tea that is consumed in the United Kingdom, is the black tea type, it is primarily made from a blend of East African and South Asian tea leaves. There is a low amount of tea that is grown in the United Kingdom; the industry is exposed to the volatilities including global sourcing, for example, weather, crop diseases, political unrests and other external factors (Allen 42). The consumption of tea mostly ranges at 88% at the household purchasing. The South East part has the highest proportion of tea drinkers at 94%. According to the geographical spread of the tea manufacturing industries follow the trends of population development and the disposable capita income. Considering the low cultivation of tea in the U.K, and the large multinational companies such as Tetley and Unilever, they occupy the dispensation, amalgamation, covering and distribution of tea, and they are located close to their major customers (Data monitor 78). The wholesale bypass keeps the industry on its toes, through the IBIS World’s coffee, tea, and spices. The wholesaling market investigation, report provides the latest industry statistics and trends, making it possible for consumers to recognize the products and customers during the revenue augmentation and effectiveness. The manufacturing statement identifies the principal corporation and offers premeditated manufacturing analysis for the key aspects that manipulate the market at large (Mersey 34). The Coffee, Tea and Spices industries has had a bitter and marvelous run, even after benefiting from the distribution of the inexpensive grocery staples in a financially distressed climate. There was also contending factors, due to the increased issues of wholesale circumvent. The domestic consumption landscape is robust as Britain is the world’s supreme and leading drinker of immediate coffee in Europe. It houses the world’s leading cocoa buyers and a sturdy multi-cultural populace. The ratio of labor to the capital is determined by the amount of the labor used to determine the amount of labor used in every unit of capital (William 89). It is used to determine the labor used for all the units of capital. This is an indicator that the wage costs are used as proxy for labor, while depreciation is used as proxy for capital. The IBIS World estimates that the investment to struggle proportion in the market will anticipated to a ratio of 2:9:1. This will require the wholesalers to provide labor worth $2.90 for every $1 they invest. This indicates that there is a elevated intensity of capacity intensity. It is evident that the industry needs warehousing and storage facilities, with modern packing facilities, sophisticated machinery to accumulate and arrange the products, and a convoy of trucks (Allen 54). This report is comprehensive on the research of tea market in the United Kingdom. It illustrates the analyses of the tea market in the country and defines the major market players, including the producers, wholesalers and distributing companies. The main aim to study this research is to discover the maximum commercial opportunities while dealing with their business partners from other countries. There was a time when a cup of builder’s tea was enough to obscure the nation’s frustrations; new research from Mintel identifies Britons as people who are diversely increasing towards the substitute varieties, as illustrated by the sales of green tea bags. This has increased the economic development with an increase of 83% in the past two years. There are shortcoming have been encountered in pursuit of changing the good conservative English breakfast tea. According to the accounting done for the biggest share of the tea economy, which ranges at 70%, the sales of ordinary English Breakfast tea bags has declined by a 1.5% this indicates depreciation from ?470 million to ?463 million between the yea 2010 and 2011 (William 90). Since the year 2009, the share of ordinary bags in terms of percentages in all the regional sales, has depreciated from 73% in 2009 to 70% to the year 201. The percentage of the Britons using the English breakfast tea in the past 12 months has declined from an 87% in the year 2010 to 83% in 2011. According to a recent research, there are many indigenous varieties of tea that have registered a positive performance, for example, between 2009 and 2011, the sales of Fruit and Herbal teabags augmented by 10%, while “Specialty bags” (?52 million) and “Decaffeinated bags” (?36 million) developed by 8% and 16% respectively. This was termed as the “Green bags” region, which was the popular organization in the regional tea sectors. The marketing of the Green bags developed with a sensation of 83% between 2009 and 2011. The market doubled from ?12 million in the year 2009 to ?22 in the year 2011. Currently there are as many as 12% of the Britons drink Green tea on every week. According to Alex Beckett, the Senior Food Analyst at Mintel, the English breakfast is fondly considered due to the expansion of the coffee links and the distinct flavors of herbal, fruit and the green teas,. This has enhanced the consumer diversity through their consumption methods, provoking fewer cups of indigenous tea that is taken. Though the section prolongs the functional position in the market, Green tea and Herbal teas, has been endorsed from the affirmative relations due to vigor (William 112). The Green tea products are gradually established in aesthetic beauty products, lifting the outline of Green tea among women. The overall, retail value sales of tea in the UK has skipped by 22% to ?655 million between 2006 and 2011. The yearly sales augmentation had rapidly hastened to 11.9% in 2009 when the market was valued at ?610 million. This was highly influenced by price increases, which also continued high in 2010 when the whole value raised to ?660 million. The tea market was then rejected in 2011, when the value fell 1% to ?655 million. Currently the tea is drunk by almost nine in ten Britons. The Britons have been noted to take a cup of tea whenever they are faced with misfortunes. The state of the initial economic climate is supposed to be in theory providing abundant times for tea brands; this is considered as comforting by the consumers. However, miscellanies emerge as the impacting tea utilization more than misfortunes these days. With convention rates depreciating the sales value tend to develop. The consumption of loose leaf tea has been constant for a couple of years, with 9% of the consumers choosing the other tea brands, this has resulted to the sales depreciating in past years, and the prices of loose tea have made it susceptible for the customer to withdraw from the consumption. However, the highest levels of consumers are the individuals aged between 25 years and 34 years. According to a recent research, 10% of the individuals are often raised in families that use loose tea rather than tea bags. According to a recent research, there is a likelihood that the economy will disintegrate; the attitude of the consumer confidence in the UK is depressing. However, many consumers use tea as a domestic tack rather than a sumptuousness item, tea sales are unlikely to be strappingly unfavorably pretentious. The general tea market is forecast to develop at a high rate between the year 2011 and 2016, as global wholesale tea prices ricochet, forcing manufacturers to pass on the costs. Health Evidences Many health reimbursement are gained with the consumption of tea, through recent researches and studies, it has been noted that these assumptions are real. The most noteworthy one is probably a study by the Japanese that discovered green tea consumers have a minor risk of ill-health and disability as they grow older. Estimates of 14,000 elderly citizens were experimented for 3 years, which is not easy, and reveals how accurate examine around tea has become. Green tea consumers were stated to suffer less from handy disabilities while doing their daily activities, for example, bathing or dressing. Deducing this result in the context of West’s aging population reveals the potential those beverages are healthy and cost-effective compared to the traditional medication. A research done in Australia and in the UK proves that there is credibility to the perception that black tea is vigorous as emerald. According to research, black tea was discovered to lower blood pressure, reducing the threat of heart disease. It also minimizes the levels of LDL cholesterol and blood sugar. The heart disease is one of the major causes of death in modern countries; the regular cuppa seems like a gradually promising and self-effacing solution to keep the consumers health in check (Ash 34). The tea producer function with the long-held attitude and the 30years and 50 years old female individuals are the principal consumers, and that prevailing the young generation of teens the way to develop the consumption levels in the future, from business aspects, (Driffill 52). Both pinnacles are certainly valid, but they do not achieve to imitate the current economic and demographic authenticity .This is a result of the future of complete inhabitants of baby-boomers that is currently incoming retreat. With immense amounts of wealth and legitimate concerns about elderly and wellbeing, this target should not be ancient history by tea businesses. The population may be not as gastronomically complicated or as innovatively minded as others, yet no company or trader can ignore the product given that tea is termed to be relevant to health concern. Majority of the health benefits of tea is the minimization of the cardiovascular diseases, cancer and obesity. Increased medical awareness has been achieved through the consumption of tea. The medical studies indicate that tea industries will eventually develop despite the shortcomings of health issues through scientific developments. With reports of popularity, has with time started conjecture if the gourmet tea industry can understand from the way its fermented businesses was made creating an impact to the market. Tea is more consumed than kombucha; while the gourmet eminence leaves remain in the mass and sphere sectors despite all massive enhancements in the past few years. Initially, kombucha gained traction through the variety of health benefits that the consumer guarantees, these comprise of detoxification, cancer prevention and energy augmented (SILLAR 98). On both associations, manufactured goods became better products that caters for the consumer’s preferences with the accumulating the flavorings that improve their remarkable taste (Allen 90). The motivating issue is how kombucha has diverted into various aspects foodstuffs, thereby escalating its business penetration. Crucial aspects to upgrade the beverages as a combination in the alcoholic beverages and a substitute, for example, Coke. This characteristic makes kombucha relevant to the taste that it adds up to the mix proportions. Generally it has been noted that alcohol affects the health, negatively, and this creates the counterbalance effects that deter the body and the consumer health (Data monitor 90). Tea is a main source of beneficial elements, and it is rarely found in bars as a mixer. Another new idea prediction by kombucha industries to improve their products, for example, fermented drinks that are non-negligible alcohol content (Mersey 54). Facing the FDA qualifications that resist the transaction and the marketing the tea beverages that have an alcohol content of 0.5%, while soft drinks affects the kombucha manufacturers. Some kombucha industries have the concept that their product is targeted the adults and the programmed as the breweries to make the real fermentation (Heiss, Mary and Robert 72). Such bold moves are invigorating to witness, especially on behalf of diminutive producers that take on extra economic menace just to make their vision a reality. Real tea requires matured taste buds (Driffill 67). Flavorings can be added to make the concoction more appetizing to the average consumers; this would add sales to the bottom line in the short scuttle. However, if a tea retailer’s business is alert on full-leaf teas, it wouldn’t it make sense to try to instruct and “train” consumers’ appetite instead of pandering to their every wish. Although the superior point is that kombucha’s budding accomplishment acts as an example of how functional players are extending promote restrictions that empower the tea skills to take analogous treads of dedication in all the directions. They should not just reproduce policies espoused by kombucha makers, or any other beverage manufacturers, they should be bolder in pursuing their own directions. Where that direction leads remains inscrutability through identifying the reasons behind it undoubtedly alleviates.  Marketing Plan The marketing plan is essential in a tea organization as it plays the key role in the companies largely business plan. It explains the product, advertising, pricing and the establishment of distribution objectives suitable for the future years (Data monitor 107). The most effective component of marketing plan is the customer’s demographics, which has the main characteristics of the customer’s preferences. Components of the Marketing Mix The specified items to be used Product Trademark name, the product specifications, and the desired association for the new Tea brand. Price The conclusion made from the researched market price and the new proposed price of the trademark. Location The initial main distribution guide for the New trademark. Promotion The effectiveness of the new market brand in communication. Trademark elements This includes the URL, logo or the symbols, mottos, jingles or a spokesperson. The marketing plans are usually put in place to enhance the purpose of advertising. A well researched market plan is usually effective when making decisions about a new Tea brand in the organization (Pride 67). This ensures that the key forces help to steer the business campaigns, gain profits for the company and offer adequate brand awareness (Sillar 142). Through the understanding and implementation of the objectives, the marketing advantage is created enabling a product to be marketable. This is also achieved when the consumer’s preferences are achieved by the organizations tea brand. Tea Organizations use the customer demographics in the marketing plans to determine their principal intentional audiences. These are the consumers who are likely to purchase the tea brands (Mersey 87). Demographics are essential as they define the customers taste and preferences enabling the organizations to improve their products with the aim of meeting the consumer requirements(Ash 78). A general assumption is usually clarified that not all consumers are impressed by the tea products; some opt for coffee or other beverages instead. Manufacturers are advised to target consumers at a controllable size; this is the only way they can afford to advertise products for specific customer segments. Logo and packaging designs While developing a logo or an effective packaging design, there are steps followed to achieve a brilliant result. I. Idea Generation- this is the stage where a basic research is carried using the SWOT analysis to identify the market and consumer trends. The insight of the products is identified to make it easier for an appropriate tea logo to be carried out. II. Idea Screening- this enables the elimination of unsound concepts before setting aside the resources to be used. III. Concept Development and Testing- this investigates the marketing policies and the patent database system in an organization, to discover the target consumers. The consultation of the consumers is put in place to discover the improvements that need to be enhanced. IV. Business Analysis- this is to estimate the marketing price, it is usually based on the competition and customer feedback. V. Beta Testing and Marketing Testing- this entails of the prototypes and mock-ups that produce an initial idea of a product and they sell it in a test market to establish the basis of the customers reaction VI. Technical Implementation-this is an effective program initiation that involves the finalization of a program review and monitor. VII. Commercialization –this entails of the launching of the product and identification of a useful analysis that caters for the consumer health. VIII. New Product Pricing- this has great impact on the entire product assortment and it predicts the market profit that will be earned by the new product. These steps are needed in the establishment of a new tea product logo, but some can be eliminated (Heiss, Mary and Robert 91). Many organizations view the new product as a proactive process where the resources are allocated to identify the market renovations. Product Positioning This is the marketing strategy that is aimed at making the brand occupy a distinct level and relative to the competing brands initiated to attract the customer’s attention. Organizations apply their policy through emphasizing the renowned features of their trademark and through creation of a presentable image through advertising (Pride 89). When a brand has been installed it is usually difficult for it to be reinstalled without ruining its credibility. The brand position of Tea industries in the UK is all about discovering the effective places for a brand market location that is appropriate to the requirements of the consumer (Edison 67). A brand should meet all the requirements of a consumer, failure to which it is usually considered as incompetent. For a flourishing brand installation, there are policies that should be implemented to produce magnificent results and help in the development of an organization, consumers, and the competitors through discovering the similarity and difference points. The realization of the consumer preferences is attained through narrowing down the target market (Heiss, Mary and Robert 102). A market constitutes of a category of people with same behaviors, often referred to as segments. The segments are usually distinguished on basis of individual consumption levels, which constitutes of the marital levels, consumption of a certain product, the rate of usage of a certain product and the expected results from the product. The demographic levels are also essential in the maintenance of an effective business environment. It includes age, income levels, race, sex and family. Segmentation can also be carried out in a certain location, if the consumer is global or local (Mersey 99). Other segmentation is also done featured on the individual motions, it constitutes of the personal beliefs and virtues, the preferred lifestyle and the religious affiliations. Business market is usually important in the development of the tea industries and management. It includes the product class, and the target industry, which includes both chemical and agricultural levels. The segment of decision making is competent and through the tender and bidding procedure. During the end, a consumer is exposed to the segmentation that is usually based on the organizations profile, this profile entails of the financial strengths and the geographical situations. The SWOT analysis is identified as the effective start point. The competition is usually based on the products belonging to a specific class but it is usually substituted by other products in the industries, for example tea versus coffee (Boone 45). The main aim is not laid on the narrowing down of the competition in a way that will divert an organizations focus. According to the research, in the past apparels, the organizations has encountered competition from the consumer electronic manufactures, this is because majority of the individuals spend allot of income on iPod and HDTV to enhance the style statement. The differentiation points are usually defined on the basis of the attitude of a consumer towards a specific trademark. These are the key points that make a brand to be efficient and gain popularity among the consumers. Points of differences includes of the appearance, the expected performance, the quality of the tea products and the customer service. For example, the tea industry encounters shortcomings and competitions from other organizations. The point of differentiation of a product usually ranges in different offers at competitive prices in comparison to other stores. The points of similarity in the tea industries in the UK are essential to create the awareness of a certain product to the consumer (Edison 56). This aids in the enforcement of the simple points that helps in the identification of the product class. It is effective because a brand has an extension level and the aim to develop to a different level. It is more prevalent in consumer goods industry. Brand positioning is very effective in the innovation of customer based equality. The target market, the realization of competitors, the different aspects of differences and similarities form the strategic branding process in the tea industries. Conclusion The study aided in enlightening the various strategies that have been adopted by the UK tea firms to maintain a competitive advantage over their competitors. The research indicates that a variety of marketing and discovery initiated by the organizations, product differentiation, cost leadership, niche marketing, branding and the customer care were the policies that were adopted by many firms (Heiss, Mary and Robert 121). Each organization has also set strategies, which make it distinct when compared to other organization and give it a aggressive advantage over others, some of the major policies include, fair trade, environment conservation, strategic partnership, outreach capability, market diversification and immediate delivery. Organizations have introduced new commodities in the market as well as extending the range of product manufacture. According to the developing market demand in the UK, opening up new markets has been an effective policy initiated by the organizations among the market controllers. When the sale of tea is put into consideration, it is evident that the organizations that have outdone their entrants in the sales and have initiated a customer attracting as the most effective policy. The organization that establish the enhanced tea bags are the key leader in all the exports, while innovations are the termed as the foundations in the maintenance of a competitive business environment. Through the combination of innovative principles, a competitive structure is usually achieved. They are vital as an organization moves bringing the case study that motivates the formation of the leadership of the pioneers of an organization (Mersey 117). It was revealed through a research that the inspiring role of leaders was initiated through their commitment, creative thinking and the motive to achieve success that will empower an organization. Through the value added market operations for growth, few organizations have tried to maintain their market through the value addition. This results show that the initiation of business and development policies, depending on the organizations capability and flexibility, is very important for the firms to achieve and maintain business success as well as the United Kingdom economic levels (Sillar 181). Works Cited Afternoon Tea: Perfect Places for Afternoon Tea. Basingstoke: AA Publishing in association with the Tea Guild and the United Kingdom Tea Council, 2009. Print. Allen, R I.G. The United Kingdom Economy. London: Heinemann Educational [for] the Commission of the European Communities, 1977. Print. Ash, J. C. K, and David J. Smyth. Forecasting the United Kingdom Economy. 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