Introduction
Market Situation
It is important to understand the current market situation to re launch tea as a new product. Let us assume that the brand of the re launch tea is X.
At present there are about 9 players in the market and its very tough and competitive. There is a very tight competition in the market for the product. A SWOT Analysis has to be conducted to identify the strengths, weaknesses, opportunities and threats in the existing market.
- Laojee
- Lipton
- Watawala
- Dilmah
- Halpe
- Kotagala
- Zesta
- Meh
- Stuarts Tea
Substitute Competitives
- Coffee
- Green Tea
- Ice tea
A market analysis has to be conducted in order to understand the preferred brand of the consumers and identify the customer preference and the income level of the consumers for the brand.
Segmentation
According to Philip Kotler, “ Market segmentation” is the sub dividing of market into homogenous sub sections of customers, where any sub section may conceivably be selected as a market target to be reached with a distinct marketing mix”.
The market is segmented on the basis of the following need, characteristic, behavior , requirements and market mix.
- Geographic segmentation
- Demographic segmentation
- Psychographic segmentation
- Behavioral segmentation
| Segmentation Base | Variables | Examples |
| Geographic Segmentation | Region | Island wide |
| City | Major and small towns & rural areas | |
| Density | Urban , Suburban & rural | |
| Demographic Segmentation | Age | 10-20,21-30,31-40,41-50,51-60, 61+ |
| Sex | Male / Female | |
| Marital Status | Married, Single , Living together, widowed, divorced | |
| Income | Under 10k, 20K, 30K,50K, above 50K | |
| Education | School goes, undergraduates, graduates | |
| Occupation | Managers, Professionals, Military , unemployed and employed, students | |
| Psychographic Segmentation | Social Class | Lower, Middle, Upper |
| Behavioral Segmentation | Benefits | Availability , Quality |
Target Market
The target market of X Tea includes all sections of the society and will cover lower, middle & upper class irrespective of age.
Product Positioning
According to Philip Kotler, product positioning “the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”.
To position the product in the consumer mind, the below positioning strategies can be used .
- To promote distinct features of the product.
- To launch position strategy
An affordable price will be charged from the consumer to provide a quality product , so that it would create a good position in the mind and will lead to a great promotion . Focus would be on quality instead of quantity.
Product
The product is made up of tea plant ,with a smell and a tangy taste with health standards. The packing size would come up in different sizes. It will be very attractive and readily available in the market
500grms
200grms
100grms
50grms
The price of the X TEA are given below according to the different sizes.
Size Price
500grms 250/-
200grms 150/-
100grms 70/-
50grms 40/-
Positioning of the product Price against the Quality
Quality wise our position will be strong because of:
- Good quality
- Special taste
- Disposable packing
- Availability
- Size variety
To position the tea in the consumer mind advertising has to be carried out using Newspapers, Press, radios, TV, outdoor advertising, Cinema, Internet and magazines.
References
Evan .T .“What is market segmentation”, [online] available at: https://www.investopedia.com/terms/m/marketsegmentation.asp
Kotler, P., 2003. Marketing Management. 11th ed ed. Englewoods Cliffs,NJ: Prentice-Hall.
Fuchs, C. & Diamantopoulos, A., 2010. Evaluating the Effectiveness of Brand-Positioning Strategies from a Consumer Perspective. European Journal of Marketing, 44(11/12), pp. 1763-1786
One Response
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