Market Plan for Tata Beverages - Tetley Energy Drink

2014 Tetley Energy Drink

Group – 3

Members: Prajakta Talathi – GSEP13CMM031 Shreye Dhaon – GSEP13IT017 Sarath Tambaan – GSEP13IT013 Shantanu Kulkarni – GSEP13CMM34 Siddharth Mehta – GSEP13GLSCM050

Tetley Energy Drink

Marketing Plan for Tata Beverages: Tetley Energy Drink Page 1

Executive Summary

The following report includes the marketing plan for launching a new energy drink product in the

Australian Market. The product will be launched under the brand of Tetley which is a part of Tata

beverages. The energy drink market has been growing for past few years as more people are moving

towards a healthier lifestyle.

Consumers have high spending power and per capita online shopping and number of regular online

user has increased over the past few years and is expected to rise more in the future. The target

market will be people from the age group of 15 to 35 years who are conscious about their health and

spend time working out.

There are number of energy drinks in the market and an immense competition for it. The market is

monopolistic as it has large number of players producing very similar products. The existing players

differentiate regularly to provide something unique product to the consumers and thus often use

short term policies and attractive marketing campaigns.

The SMART goals that the organization has led to the marketing objectives which are product

awareness, preference and setting a target sale figure. Also TATA doesn’t deviate from its ultimate

goal of making the world a better place, this time with the launch of a new health drink.

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http://prezi.com/a63s9-pn1ex2/?utm_campaign=share&utm_medium=copy

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Table of Contents Executive Summary ................................................................................................................................. 1

Prezi Link ............................................................................................................................................. 1

Introduction ............................................................................................................................................ 5

Aim ...................................................................................................................................................... 5

History ................................................................................................................................................. 6

Mission .................................................................................................................................................... 7

Tata Beverage’s mission ...................................................................................................................... 8

Tata Beverage’s vision......................................................................................................................... 8

Situational Analysis ................................................................................................................................. 8

Organizational Core Competencies Analysis ...................................................................................... 8

Environmental Analysis ....................................................................................................................... 9

PESTLED ........................................................................................................................................... 9

PESTLED of Australia ..................................................................................................................... 10

Market Analysis ................................................................................................................................. 13

Porter’s 5-Forces: .......................................................................................................................... 13

Porter’s 5- Forces Analysis of Energy Drink Market in Australia .................................................. 15

Market analysis for Energy drinks ................................................................................................. 15

Customer Analysis ............................................................................................................................. 17

Competitor Analysis .......................................................................................................................... 17

Market Type .................................................................................................................................. 18

Competitors Topology................................................................................................................... 18

Competitor’s Strategy ................................................................................................................... 19

Competitive Positions ................................................................................................................... 19

Market Leader strategies .............................................................................................................. 19

Advertisement Strategy for Brand Management ......................................................................... 19

SWOT Analysis....................................................................................................................................... 20

SWOT matrix analysis of TGBL .......................................................................................................... 21

Strength ............................................................................................................................................ 21

Weakness .......................................................................................................................................... 22

Opportunities .................................................................................................................................... 22

Threats .............................................................................................................................................. 23

Critical Issues ......................................................................................................................................... 23

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Marketing Goals and Objectives ........................................................................................................... 24

Goals ................................................................................................................................................. 24

Objectives ......................................................................................................................................... 24

What is TATA trying to achieve through Tetley Energy drink ....................................................... 24

Target Market ....................................................................................................................................... 25

Target Market for Tetley ................................................................................................................... 26

Marketing Strategy and Tactics ............................................................................................................ 26

Marketing Strategy for Tetley ........................................................................................................... 26

Marketing Mix ....................................................................................................................................... 26

Product / Service ............................................................................................................................... 27

Product – Tetley Energy Drink: ..................................................................................................... 27

Place – Distribution ........................................................................................................................... 27

Distribution of Tetley Energy Drink ............................................................................................... 29

Price .................................................................................................................................................. 29

Pricing Strategy for Tetley Energy Drink ....................................................................................... 29

Promotion ......................................................................................................................................... 29

Promotion Strategy for Tetley Energy Drink ................................................................................. 30

People ............................................................................................................................................... 30

People in Tata – Tetley .................................................................................................................. 30

Process .............................................................................................................................................. 31

Physical Evidence .............................................................................................................................. 31

Physical Evidence of Tetley Energy Drink ..................................................................................... 31

Communication/ Action Plans .............................................................................................................. 31

Communication Plan/Strategy .......................................................................................................... 32

Profiling of Target Audience ......................................................................................................... 32

Impact of Campaign ...................................................................................................................... 32

Creativity ....................................................................................................................................... 32

Vehicle Selection ........................................................................................................................... 32

The Promotional Mix..................................................................................................................... 33

Forecasts and Budgets .......................................................................................................................... 34

Forecasts ........................................................................................................................................... 34

Financial Forecast.......................................................................................................................... 34

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Budget ............................................................................................................................................... 35

Implementation and Evaluation ........................................................................................................... 36

Marketing Implementation ............................................................................................................... 36

Marketing Control and Evaluation .................................................................................................... 37

Conclusion ............................................................................................................................................. 37

Bibliography .......................................................................................................................................... 38

Tetley Energy Drink


Introduction A marketing plan is a document which comprises of (Drummond, Ensor, & Ashford, 2008):

Analysis of the current marketing situation,

Threats and opportunities of the firm,

Marketing objectives and strategy specified that has the 4 Ps,

Plan of actions, and

Projected budget and other financial statements

The marketing plan consists of 3 main phases:

Phases of Marketing Plan (Source: (Drummond, Ensor, & Ashford, 2008) )

A documented market plan helps in tracking the progress of the company activities by providing a

point of reference.

While creating a new market plan around three end goals should be kept in mind. Having end goal in

mind will help in efficient formulation of marketing Plan. Placing more goals will lead to dilution of

efforts and shortage of resources for the company (Luke, 2013).

Aim The report is a marketing plan for Tata Global Beverages Limited, Brand Name Tetley, to launch their

new Energy Drink in the Australian Market.

Tetley Energy Drink


History Tata global beverage was set up as a joint venture between Tata Sons and the UK-based tea

plantation company, James Finlay and Company in 1962. Tata Tea was born in 1983 after James

Finlay sold his shareholdings to Tata. The company set out on a path with global ambitions,

evidenced by the acquisition of Tetley in 2000. Refer below for Evolution timeline (Tata Global

Beverages, 2014):

Source: (Tata Global Beverages, 2014).

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Brands under Tata Beverages:

Source: (Tata Beverages, 2014)

In Australia, Tetley has a variety of products of coffee, tea, purified water and other beverages.

Using this marketing plan, it plans to introduce non-milk, high in glucose energy drink.

Mission The mission of the organisation is the unique purpose that helps in distinguishing the company from

its competitors and defines its boundary of working. The mission statement is the organisation’s

primary objective that encapsulates its core values (Drummond, Ensor, & Ashford, 2008). The

organisation’s objectives and mission are influenced by followings:

Source: (Drummond, Ensor, & Ashford, 2008) (Adapted from Jhonson and Scholes, 1999)

• What aspects of the mission are prioritised?

• Influence of the cultural environment

• Social responsibility

• Expectations of individuals ethical behavior

• Whom does the organization serve?

• Balance of power and influence of various stakeholders

• Whom should the organization serve?

• Accountability and regulatory framework

Corprate Governan

ce

Stakeholders

Cultural Context

Business Ethics

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The mission statement is a broad description of a firm’s objectives and the scope of activities it plans to undertake and attempts to answer two main questions (Grewal & Michael, 2014):

1. What type of business are we in?

2. What do we need to do to accomplish our goals and objectives?

These questions are answered at the highest corporate level before any marketing activity is

initiated. To understand the role of the organizational mission in strategic planning it is important to

understand the difference between mission and vision. The mission statement, seeks to answer the

question:

‘‘What business are we in?’’ It is a clear and concise statement (a paragraph or two at most) that

explains the Organization’s reason for existence. Whereas, the vision statement seeks to answer the

question: ‘‘What do we want to become?’’ (Ferrell & Hartline, 2010).

Tata Beverage’s mission “We believe passionately in making the world a better place through life-enhancing sustainable

hydration” (Tata Global Beverages, 2014).

Tata Beverage’s vision “To become the global leader in branded ‘good for you’ beverages“ (Tata Global Beverages, 2014).

Thus the mission and vision of the Tata Beverage are in sync and support each other.

Situational Analysis

Organizational Core Competencies Analysis “Core competency is a unique capability acquired by a firm over a period of time in form of a

resource, operations facility, specially skilled manpower, knowhow or delivery of service which gives

the firm sustainable competitive advantage in future in quality, design, production or distribution of

a product/service or in cost of the product and is viewed as a relative value addition by a prospective

Customer” (Gupta, 2013).

Source: (Drummond, Ensor, & Ashford, 2008)

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The above figure shows the importance of core competencies in the strategic plan of an

Organization.

Following are the three competencies of Tata Beverages:

1. A great product

2. Good value for the price and

3. Good service

Tata is known in the market to provide high quality products at a competitive value to its customers.

They are also known to produce and launch products which are demanded by customers.

Environmental Analysis

PESTLED

When we start analysing the macroeconomic factors we have to identify critical variables which are

going to influence the supply and demand of products and costs of its business activities (Johnson &

Scholes, 1992). The "radical and ongoing changes occurring in society create an uncertain

environment and have an impact on the function of the whole organization" (Tsiakkiros, 2002). A

number of checklists have been developed as ways of finding and analysing various factors that are

going to affect an industry or an organization.

PESTLED analysis is one of the frameworks which help finding and various factors that are going to

affect an industry or an (Bull, Marketing Presentation 2 & 3, 2014):

Source: (Bull, Marketing Presentation 2 & 3, 2014)

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Additionally there are two more factors:

Environmental: not only affects the seasonality of the product but also affects the supply of raw

material and distribution activities

Demographics: to study the change of population demographics of the market for sustainable

growth (Bull, Marketing Presentation 2 & 3, 2014)

The analysis documents not only the impact of these factors on the business but also on each other.

The result analysis is then used to identify opportunities, to make business and strategic plans and to

make contingency plans for threats (Byars, 1991). PESTLED analysis is a useful strategic tool for

understanding growth or decline, business position, potential and direction for operations in any

market. The headings of this framework are helpful in assessing a situation, and can in addition to

SWOT and Porter’s Five Forces models, be applied by companies to assess a marketing proposition

and formulate strategic directions (Kotler & Keller, Marketing Management, 2012).

PESTLED of Australia

Political

Australia has a liberal-capitalistic democracy. The state interferes in the economy through the use of

various fiscal policies; International businesses are affected as taxes may keep on varying from time-

to-time and this may in turn affect the currency exchange rate.

Economic

Source: (The World Bank, 2014)

• USD 961 Billion (2012 estimate) GDP

• 19 Rank

• USD 59,570 Per Capita Income

Characteristics of Australian Economy

• Continuous Growth

• Low Unemployment

• Low Inflation

• Low Public Debt

• Stable Financial System

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The consumers have high buying power in Australia and this is reflected by comparatively higher

prices of consumer products in the nation.

Due to high value of Australian dollar the manufacturing sector is weak. Australia has benefitted

from rising global commodity prices as demand in Asia especially China has increased. Australia has

abundant natural resources and is a major exporter of food and energy. Australia is a comparatively

open market with low restrictions on import. Australia has bilateral free trade agreements (FTAs)

with: New Zealand, Chile, Thailand, Singapore, Malaysia, and the US, moreover it has a regional FTA

with ASEAN and New Zealand. Currently it is negotiating agreements with Asian countries including

India, China, Japan, Indonesia, and the Republic of Korea, as well as with its Pacific neighbors and the

Gulf Cooperation Council countries (Central Intelligence Agency US).

Social

Source: (Central Intelligence Agency US)

Following is the result of self-assessment of the population on their own health:

Source: (Australia bureau of statistics, 2011)

Total Population: 22,262,501 Population growth rate:

1.11% Urban population: 89% of

total population (2010)

Sex Ratio: 1.01 male(s)/female (2013 est.)

Education expenditures:: 5.1% of GDP (2009)

compared to the world: 7.1%

Obesity in Adults: 26.8% (2008)

country comparison to the world: 44

This shows that obesity is prevalent in Australia

Rate of Urbanization: 1.2% Annual Rate of change

Literacy: Total population: 99%

Male: 99% Female: 99% (2003 est.) High literacy, therefore,

well-educated population

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Close to 40% of people in the age group of 15-34 self asses themselves in Very Good health and thus

are health conscious.

Source: Australian Health Survey (2011-2013) (Australia bureau of statistics, 2011):

Technological

The benefits of e-commerce to the economy in terms of reduced costs, higher quality, new products

and larger markets are significant highlights in a country’s international business. Australian e-

commerce sales have increased from AUD 27 Billion in 2010 to 37 Billion in 2013. Sales have

continuously increased by a margin of AUD 3-4 Billions every year. The Australian average online

spending has increased from AUD 1048 in 2006 to AUD 2108 in 2013 (Merlinfx, 2013).

Legal

Australia has practical structure of financial regulations that allow business to invest without undue

delay. A new business can be established in Australia within two days compared with an average of

20 days in most of the other countries. Australia ranks 11 out of 189 countries on the ease of doing

business index, below is the summary:

Source: (The World Bank, 2014)

Major Risk Factors

• Being overweight or obese

• Smoking

• Poor diet and nutrition

• Blood Pressure

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Environmental

The mid part of the continent is too dry for inhabitation and most of the population is concentrated in the coastal region. There is huge variation in climatic conditions and it can range from 0 degree Celsius to 50 degree Celsius. (Australian Government Bureau of Meterology, 2014).

Source: (Central Intelligence Agency US)

Demographics

Most of the population are in the age range of 20 – 45 years. Following is the demographics:

Source: (Australia bureau of statistics, 2011):

Market Analysis

Porter’s 5-Forces:

The essence of strategy formulation is coping with competition. The state of Competition in a market can be explained by five forces:

Source: (Porter, 1997)

Area of Australia

• Total: 7,741,220 Sq km

• 6th largest country in the world

• Land: 7,682,300 sq km

• Water: 58,920 sq km

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Once the above analysis is done a company can makes a strategy that places itself in the best

position among the competitors ad also makes it immune to shifts in the future market trends

(Porter, 1997).

Jockeying for Position:

1. Competitors are numerous

2. Market growth is slow

3. Exit barriers are high

4. Product lacks differentiation

Threat of New Entrant:

•Economies of scale

•Product differentiation

•Capital requirements

•Cost disadvantage independent of size

•Access to distribution channel

•Government Policy

Bargaining Power of Customers

•Variety of choices

•Move to another similar product from different producer

Threat of Substitute

•Customers move to substitute products

•Threat not only from competitors but also from substitutes

Bargaining Power of Suppliers:

•Monopoly

•Pressure on producers

•Raise prices or reduce quality

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Porter’s 5- Forces Analysis of Energy Drink Market in Australia

Market analysis for Energy drinks

1. Market volume increasing per year

Source: (Euromonitor International, 2013)

2. Volume per capita increasing per year


Threat of Entrants

• High

• Low barriers to entry in energy drink market

Bargain Power of Suppliers

• Low

• Large number of suppliers available

Bargain power of Customers

• High

• Variety of good brands to choose from

Threat of Substitutes

• High

• Various products like soft drinks, herbal drinks, protein shakes and pre workout supplements like NO explode

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3. Market segmentation by types


4. Market share by company


5. Distribution breakup


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Customer Analysis Marketing is about identifying and meeting human and social needs (Kotler & Keller, Marketing

Management, 2012) profitably. When directed towards specific objects that might satisfy needs,

needs become wants (Kotler & Keller, Marketing Management, 2012). Marketing is a process of

identifying and converting consumer “wants” into products and services. Marketing begins with

customers (identify their needs) and ends with customers (satisfy these needs).

Companies succeed only when they choose their target market carefully and prepare a customized

marketing plan for them. A company can carefully define its target market yet fail to correctly

understand the customers’ needs as it is a complex process.

To cater to Customer needs, difference between responsive marketing, anticipative marketing, and

creative marketing needs to be understood.

Companies are trying to become more market-oriented and their major efforts go in retaining

customers. Customer-retention has become more important than customer-attraction because

attracting new customer costs five times more than pleasing an existing one. (Kotler P. , Marketing

Management Millenium Edition, 2002).

Competitor Analysis Competition is the most critical factor in marketing management and includes all of the actual and

potential rival offerings and substitutes that a buyer might consider.

Types of

needs

Stated

Real

Unstated Delight

Secret

Responsive Marketers

• Tries to find and fill a stated need

Anticiptive Marketers

• Looks ahead to the needs that customers may have in future and provides a solution for the same

Creative Marketers

• Creates solutions that customers did not ask for and that customers have not thought of

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Competition can be broadly divided into following categories on the basis of substitutability:

Following are the major direct competitors in the energy drink market segment in Australia:

V

Red bull

Monster

In addition to above there are various substitute products available in the market. These are the

indirect competitors.

Market Type

Monopolistic Competition: There are large numbers of market players that offer similar products

and are thus being forced to differentiate themselves from others.

Competitors Topology

Most of the competitions present in this industry are Prospectors. New products, flavours, limited

editions are being continuously launched. This is a rapid changing market and companies have to

differentiate on the basis of marketing campaigns, offers or package design as there is not much to

differentiate on the product itself.

• All the companies that supply the same service. Can also include substituents

• All the companies that compete for the same consumer buying power

• All the companies in the same industry

• Competitors that produce similar product at similar price

Brand Competi

tion

Industry Competi

tion

Form Competi

tion

Generic Competi

tion

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Competitor’s Strategy

The current market is increases so it provides a chance to new entrants to make a place in the

growing market.

They try to build customer intimacy to gain and maintain the market share of their respective

products.

Competitive Positions

The existing competitors are market leader.

Market Leader strategies

Expand the market by attracting new customers and increasing the frequency of current users.

Advertisement Strategy for Brand Management

All the available market brands try to connect to customers of different taste on the basis of

advertisement campaigns.

1. Red bull: Promotes “gives you wings” and is associated with adrenaline sports like

snowboarding and F1 race.

Source: Red Bull Website Gallery

2. Monster Energy Drinks: Associated with motor sports mostly biking. They sponsor events

like Dew Action Sports Tour and X games.

Source: Monster energy drink website

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3. V energy drink: Ad campaigns include stunt driving and sponsorship to NZ extreme games.

Source (nbr.co.nz)

4. Rockstar Energy Drink: Associated with partying and having a celebrity lifestyle

Source: Gallery Plus

SWOT Analysis The overall evaluation of a company’s strengths, weakness, opportunities, and threat is called SWOT analysis. It is the way of monitoring the internal and external marketing environment for an organisation (Kotler K. , 2012). It is a general tool designed to be used in the preliminary stages of decision-making and as a precursor to strategic planning in various kinds of applications (johnson). SWOT studies internal and external environmental factor which may affect business at any point of time (Bull, Marketing management, 2014).

Internal environment analysis evaluates company’s strength and weakness. External environment evaluates opportunity and threats for an organisation. External environment should monitor the micro economical and macro-economic factors that can affect its ability to earn its profit. The SWOT matrix illustrates how the external opportunities and threats facing a firm can be matched with its internal strengths and weaknesses to result in four sets of possible strategic alternatives. It enables mangers to create various kinds of growth and retrenchment strategies (Wang). The SWOT matrix includes (Wang):

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SO strategies focus on how to use strengths of a business to take advantage of opportunities (Wang).

ST strategies attempt to utilize the strengths of a company to avoid threats (Wang).

WO strategies aim to eliminate weaknesses to open new opportunities (Wang).

WT strategies are basically defensive and mainly act to minimize weaknesses and avoid threats (Wang).

Hence considering the new opportunity Tetley (brand of TGBL) has considered launching a product which is decaffeinated energy drinks and it will be using extracts of green tea for energy source with no caffeine and sugar.

SWOT matrix analysis of TGBL

Source: (TGBL, Global company profile (TGBL), 2013)

Strength

Wide geographic footprint with strong presence in global market: TGBL is second largest tea producer in the world with operations spanning over 15 countries throughout the world. Some of its popular brands like Tetley reach out to 70 countries; about 45 million cups of tea are drunk per day around the world. Some other famous brands present are Grand in Russia, Vitax in Poland, Jemca a leading brand in Czech Republic. In India, Tata tea brand enjoys a super brand status and the market share is over 18% (TGBL, TGBL Swot analysis, 2012).

Focussed on sustainable initiatives: TGBL focuses on sustainable initiatives which are ethical sourcing, packaging, etc. In packaging company follows the target of no packaging to landfill by 2015. Company also focuses on reducing carbon emissions and also developing a corporate water strategy which includes quantified water reduction target. Therefore, focus on sustainability initiatives in order to minimise the adverse impact on environment which enhances the company’s brand image (TGBL, TGBL Swot analysis, 2012).

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Increased investments in Innovation (TGBL, Global company profile (TGBL), 2013).

Weakness Overexposure to commodity based business: TGBL core business comprises of tea and coffee, which are two highly commoditized businesses. Overdependence on two commodities would exposes the company’s profitability to external factors like demand supply gap, production status and inflation (TGBL, TGBL Swot analysis, 2012).

Low profit margins: Continuous rise in competition as well as increase in rise of raw material has led to reduce the profit margins of the company. And the trend is going on to be the same which would impact the company’s investments in other fast emerging value added product. Hence, keeping in mind the present industry scenario poses negative outlook for TGBL financial performance, and there by affecting its position in global beverage market (TGBL, TGBL Swot analysis, 2012).

Opportunities Add a new product mix in Australian market: As Tetley brand represents TGBL in Australia and has different products offered in tea market. TGBL is entering into Energy drink market with a unique drink which is green tea drink which is full of powerful antioxidants ,assist in fat oxidation and by increasing energy expenditure helps in burning body fat. It gives you more energy than energy drinks without sugar and caffeine (TGBL, TGBL Swot analysis, 2012).

Rising target Market: As discussed in market analysis as well, Australia is having obesity a major concern in their population, energy drink without caffeine and sugar can be targeted to this market segment. Also it can be projected as sports drink where it will be facing brands like V and Red bull (TGBL, TGBL Swot analysis, 2012).

Regulations by governments for caffeine contents in Energy drinks: There are various tests carried out by governments of Australia and from a sample of 70 energy drinks more than 77% of energy drinks have high caffeine content were over the accepted limit (Euromonitor).

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Threats Intense level of competition: Presence of market leaders like Red bull, Monster, V will give tough competition in Energy drink market segment.

High marketing cost: In order to launch the new product, intensive marketing will be required to make target customer aware the existence of brands (TGBL, TGBL Swot analysis, 2012).

Impact of soaring input prices on margin: There is continuous rise in the production cost of tea as because of the dry season. All the major tea producing nations like India, Sri Lanka and Kenya are facing this weather problem due to which there is decline in production of Tea production and on the other hand there is a continuous rise in demand on tea and coffee (TGBL, TGBL Swot analysis, 2012).

Critical Issues One of the key issues in entering Australian market would be the government regulations on the

caffeine content in energy drinks. As already mentioned in SWOT, government had banned five

energy drinks in Australian market because of high caffeine content. So keeping a check on the level

of caffeine would play a key role in the survival of the product in the market. Another issue would be

the wide variety of energy drink products in the market. There are a number of well-established

energy drink brands (example: Red Bull, V etc.) in Australian market and it is a restricting factor to

enter to the market. But as our product is caffeine free and more of herbal, it would be a success

because it would attract more people as majority of Australians are health conscious or turning to be

health conscious.

Initially pricing the product will be an issue and price is an important element that contributes to the

revenue and profit. Thus the profit margin on the product would not be high because of the

competition. Public should be made aware of such a product as it is first of its kind in the Australian

market. This would require good initial campaigning. But the product also should release along with

the campaigning as it would help people use the product and experience the advantages by

themselves.

Critical Issues

Strong regulations by Government for caffeine content in

energy market

Adding a product mix in

Australian market

Impact of soaring input prices on the

margins

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Marketing Goals and Objectives Marketing goals and objectives outlines the expected outcomes of a marketing plan. Having good

goals and objectives is vital because these become the basis for measuring the success of the entire

marketing program.

Goals Goals should be designed in such a way that it would not only help set milestones for evaluating

marketing performance but also motivates managers and employees. Goals help in the development

of objectives (Ferrel & Hartline, 2010).

The goals should be SMART (Bull, Marketing management, 2014).

Source: (Bull, Marketing management, 2014)

Objectives Typically, the marketing objectives include market share, return on investment. But for launching

‘Energy drinks’ it is required to have different objectives such as (Mark Beard, 2011):

Product Awareness – to create awareness amongst the target audience

Preference – to make the energy drink preferred over the competitors

Set Target – to set the target figure for sales revenue and market share within specified

timeline

What is TATA trying to achieve through Tetley Energy drink

A healthy drink that would help the world to be a better place, just as the organization’s mission

says. TATA would give importance to the triple bottom-line (people, planet and profit) which

definitely defines the marketing objectives and the marketing goals would be tailored accordingly.

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Target Market

Target marketing is aiming at specific target customers (Perrault & McCarthy, 2006).

Source: (Perrault & McCarthy, 2006)

Source: (Perrault & McCarthy, 2006)

All customer needs

Some Generic Market

One broad product-market

Homogeneous (narrow) product-markets

Single target market

approach

Multiple target market

approach

Combined target market

approach

Market-oriented

Strategies

Single Target: Segmenting the market and picking one of the homogenous

segments

Combined Target: Combining 2 or more submarkets into one larger target market

as a basis for 1 strategy

Multiple Target: Segmenting the market and choosing 2 or more segments, then

treating each as a separate target market needing a different market mix

Narrowing down to specific product-market

Segmenting into possible

target markets

Selecting target

marketing approach

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Target Market for Tetley The product will be targeting the following population segment:

Marketing Strategy and Tactics Marketing manager defines the mission, marketing and financial objectives, and needs the market

offering is intended to satisfy as well as its competitive positioning. All this requires inputs from

other areas, such as purchasing, manufacturing, sales, finance, and human resources (Kotler &

Keller, Marketing Management, 2012).

Market-oriented strategic planning is the managerial process of developing and maintaining a viable

fit between the organization’s objectives, skills, and resources and its changing market

opportunities. The aim of strategic planning is to shape the organization’s businesses and products

so they yield target profits and growth. Strategic planning takes place at four levels: corporate,

division, business unit, and product.

Marketing Strategy for Tetley The key to the marketing strategy is focusing on the health-conscious customers. Since there are

many energy drinks available in the market, Tetley will have to position its energy drink strategically.

Rather than being innovative in its product, it should be innovative in terms of its promotions and

advertising.

Marketing Mix Marketing-mix models analyse data from a variety of sources, such as retailer scanner data,

company shipment data, pricing, media, and promotion spending data, to understand more

precisely the effects of specific marketing activities. Marketing mix consists comprises of 7Ps.

Target Market

People from the age range of 15 to 35 both

male and females

Health conscious people preferably involved in

regular work out

People who are trying to switch to a healthier

lifestyle and want to give up soft drinks

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Product / Service Product and brand managers have many decisions to make as they seek to develop the best

products and communicate their features and value to the customers (Bull, Marketing management,

2014).

Product – Tetley Energy Drink:

The characteristics of Tetley Energy Drink are:

First Energy drink in the market with Tea Extracts

Non-milk based

High in glucose-sucrose

Excellent source of vitamins and minerals

Place – Distribution Distribution means delivering the product to the right place at the right time, in right quantities and

at right price. It comprises of seven attributes:

Marketing Mix

Product / Service

Place – Distribution

Price

Promotion People

Process

Physical Evidence

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Source: Adopted from (Chopra, 2008)

The essence of managing distribution lies in the emphasis from transaction-based selling to

relationship marketing. Right distribution strategy helps in managing inventory, controlling costs,

recognising importance of intermediary customers and managing supply chain (Bull, Marketing

management, 2014).

Effective distribution strategy involves:

Source: Based on (Bull, Marketing management, 2014)

Marketing Mix

Location

Transport

Channels

Coverage Delivery

Availability

Inventory

Review the distribution

environment

•Learn what the customers want

•Decide on outlets

•Learn about costs

•Determine changes

•Prepare an action plan

Establish distribution

objectives and channel strategy

•Competitive scope

•Positional advantage

•PLC stage

•Market leader versus challenger/follower.

Design the distribution

structure

•Length – the number of intermediary levels

•Intensity – ranges from exclusive to selective to intensive distribution

Tetley Energy Drink


Distribution of Tetley Energy Drink

From the PESTLED analysis, it can be observed that e-Commerce is growing in Australia. Online

shopping will be the main channel of distribution. Apart from online shopping, the product will also

be available in leading supermarket stores like Woolworths, Aldy, Coles, etc. Tetley will be

positioned at the middle shelves. It will also be available in gym vending machines, at beach side

cafes and other similar places where people come for working out.

Price It is very crucial for the success of the product to be priced right. Price is a measure of value to both

buyers (a measure of benefit) and sellers (to cover costs and provide profits). Pricing objectives are

(Bull, Marketing management, 2014):

Buyer and Seller benefit

SMART (Specific, Measurable, Actionable, Reasonable, Timetabled)

Profits

ROI

Consider the following before implementing the pricing strategy:

Profitability

Long-term prosperity

Market share

Positioning

Pricing Strategy for Tetley Energy Drink

Penetration Pricing:

As Tetley Energy Drink is a new product and the market already has few similar products, Tata

Beverages needs to penetrate the market using price which is lesser than that of the competitor’s

product or substitute products. Tata is a big company; hence by making use of Economies of Scale, it

will be possible for Tata to initially keep lower prices than the prevailing market prices.

Competitive Pricing:

Once the market is captured significantly, the prices can be changed. The market for energy drink is

highly competitive and the product is not differentiated to a great extent; hence price cannot vary

from that of the competitor.

Promotion An organization needs to promote its product so that market is aware of the product. Promotion

refers to the various activities undertaken by the enterprise to communicate and promote its

products to the target market (Chopra, 2008). Though not limited to, the commonly used promotion

techniques are:

Tetley Energy Drink



Promotion Strategy for Tetley Energy Drink

As Tetley Energy Drink is a sports drink, and Olympics are around the corner, the product will be

launched in one of the Olympic Games. This will give a good exposure and recognition to the

product. The tagline is Energy Drink – helping the world be a healthier place.


To boost the brand of the product, celebrity endorsing can be done using sports personalities and

Hollywood actors. Apart from this, the traditional style of billboards, hoardings, television ads, radio

ads can be made. Also, online marketing using social networking sites like YouTube, Facebook,

Twitter etc. can be used for publicising the product.

People People in the 7Ps determine the organizational skills and the skills and abilities of people in the

organization. The value can be added by:

Training and development

Support resources

Formal and informal encouragement

People in Tata – Tetley

Following are the three mantras which people of Tata Beverages follow:

1. A great product

2. Good value for the price and

3. Good service

Tetley Energy Drink


Tata is known in the market to provide high quality products at a competitive value to its customers.

They are also known to produce and launch products which are demanded by customers.

Process Following process is very important for smooth functioning of the product life cycle (PLC). Process

channelizes the development cycle. It facilitates the Initiation (Planning), Strategizing (Formulating

plans) and Executing (Implementing) of any product.

Since Tetley Energy Drink is a new product, the product development process would be (Bull,

Marketing management, 2014):

Source: Based on (Bull, Marketing management, 2014)

Physical Evidence Physical Evidence determines the tangibility of the product. It considers:

Ambience or packaging

Spatial layout

Brand identity

Standardization

Physical Evidence of Tetley Energy Drink

The packaging of Tetley will be done such that it is very handy and easy to carry. The packaging will

be in form of plastic recyclable bottles and cans. The standard size of the bottle will be 200-300ml

depending on its can size. 500ml can be bottled.

Communication/ Action Plans These primarily include customer centric materials such as social networking sites, magazines, press

releases, brochures and trade shows etc. (Kennaugh)

Idea generation

Screening

Concept evaluation Marketing strategy

Business analysis

Product development

Test marketing

Commercialisation

Tetley Energy Drink


Communication Plan/Strategy Profiling of Target Audience

It is essential to ‘Know Your Customer.’ The psychographics and demographics of the audience’s

should be learned. Then, it is preferred to understand (Kennaugh):

How the consumer favours to get the information about the Energy Drinks?

Secondly, how he uses this information to buy the product?

Usually, the communication process is divided in following stages:

The process of communication goes from identifying the needs of customer, making customer aware

of the Energy Drink and then building loyalty and credibility.

Impact of Campaign

(Mark Beard, 2011)

It is required to make the marketing strategy to penetrate the market rapidly.

For creating brand image & brand awareness, it is needed to have effective advertisements.

The duration of campaign and its impact time should be analysed before launching.

Creativity

(Kennaugh)

Some creative messages, appeals have to be created.

Top celebrities should be hired to reach to the highest possible audience and to make them

aware about the motives.

For generating buzz, some user interface contests should be made online or on television.

(Philip Kotler, 2012, p. A6 of 812)

Vehicle Selection

It is necessary to identify the communication vehicles and use them efficiently.

Tetley Energy Drink


Source: Office.com

The trade shows should be organized regularly to influence the target audience in selected areas.

The Promotional Mix

(Mark Beard, 2011)

Some promotional offers in sports events would be given to create brand image. Until the brand is

getting established, consumers will be encouraged to purchase through channel partners and not

from websites. (Philip Kotler, 2012)

It is suggested to use all the following media channels:

Source: (Mark Beard, 2011)

Tetley Energy Drink


Forecasts and Budgets

Forecasts

Financial Forecast

For any business forecasting is required to reduce the financial risks. It allows mapping the cash

flows, sales etc. It helps in achieving the goals and targets. It helps in managing your resources

efficiently managing your money (Financial Forecasts).

Normally, it comprises of estimated sales, expenses forecasts and break even analysis (Philip Kotler,

2012, p. 86 of 812). The plan for the business is revealed by the financial forecast. It is nothing but

estimate of your income and expenses. It is best to use for business financials in future. The profit

and loss statement, balance sheet, cash flows etc. can be made by using this.

Initially, it is difficult to estimate the correct figures but over the period and with adjustments it can

go closer to accuracy. The sales forecast is normally indicator of how much business will be there.

The conservative figures are normally eye opener. And can be used to decide future investment

(Philip Kotler, 2012, p. 87 of 812).

For ‘Tata Energy Drinks’, the target market is of the age group of 15-35. There are already big and

established players in the market like Red Bull, V etc. To compete with them and to get the best

return on investments, it is necessitated to do forecasting.

Furthermore, when there is a need to go for aggressive marketing like advertisements, web sites,

trend shows, printed materials, it is required to know how much can be spent. The expense forecast

is used to keep the department on target. It can also be used to modify the marketing plan when

implementation is needed.

Tetley Energy Drink


Break-even Analysis – The break even analysis is used to know how much production is needed to

have profit. It helps in planning the resources and planning the production capacities (Philip Kotler,

2012, p. 87 of 812).

The advantages of financial forecasts are as below (Financial Forecasts):

Periodical forecasts are required to be done and the earlier figures need to be modified as per

difficulties and rapid growths.

Budget A budget is nothing but the detailed plan of your expenses in the coming year. When the company is

in starting phase or launching a new product, the marketing expenses are higher. So it is essential to

plan a budget. In addition to that the marketing expenses should be checked in comparison with the

total sales (Finance & Cash Flow).

Financial Viability

•The business model of the ‘Tata Energy Drink’ can be modified as per the viability

Progress Monitor

•Easier to measure forecasted vs actual figures

Benchmarking

•Compare performance in future

Identify Risks

•Potential risk and financial difficulties identification

Control cash flow

•Helps in controlling the cash flows

Tetley Energy Drink


The budget is normally based on certain set of assumptions. These assumptions need to be

rechecked over the year. Also, it should be seen that the expenses are not going more than that of

the budget. The contribution margin of the marketing expenses with the sales revenue has to be

calculated for every year. On that basis, the future budgets should be decided (Philip Kotler, 2012, p.

87 of 812).

Budgeting Process – Source: (Anonymous, 2008)

Implementation and Evaluation

Marketing Implementation Marketing implementation is making marketing strategy work by evaluating what is required to

achieve, strategic marketing goals, in a specific organizational environment (Cespedes & Piercy,

1996). Implementation involves actors, intents and "a procedure directed by a manager to install

planned change in an organization" (Nutt, Tactics of Implementation, 1986). While providing a useful

starting point, there are substantial problems with this view of marketing implementation as part of

a rational, logical, sequential flow of missions, goals, strategies, and tactics which are then

implemented (Cespedes & Piercy, 1996).

Tetley Energy Drink


Marketing Implementation is the process that turns marketing plans into marketing actions to

accomplish strategic marketing objectives (Kotler & Armstrong, Marketing An Introduction, 2013). If

strategy is “Doing right things” then implementation is “Doing this right”.

Marketing Control and Evaluation Marketing planning addresses “what” and “why” whereas implementation addresses “who”,

“where”, “when” and “how” of marketing activities (Kotler & Armstrong, Marketing An Introduction,

2013). In spite of doing everything right, marketers experience surprises for which they must

practice marketing control.

Marketing Control is “Measuring and evaluating the results of marketing strategies and plans and

taking corrective actions to ensure that the objectives are achieved (Kotler & Armstrong, Marketing

An Introduction, 2013).

Steps in controlling the marketing implementation which will be followed by Tata Beverages:

Source: Based on (Kotler & Armstrong, Marketing An Introduction, 2013)

Conclusion The new healthy energy drink by Tetley would launch into the Australian market targeting the health

conscious people majorly of age group 15 to 35. The product will have to compete against the

existing strong competitors such as Red Bull, V, Monster, etc. With its unique feature of being

caffeine free and more of tea extracts the organization is expecting that there will not be any issue

because of the government regulations in Australia and is extremely confident that the market

would accept the product, once again adhering to the organization’s core values – helping the world

be a healthier place.

Set specific Marketing Goals

Measure its performance in the

marketplace

Evaluate the differences between expected and actual

performance

Take corrective measures to close the gap between

goals and performance

Tetley Energy Drink


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