Jake Meinkoth

Product Strategies:

Our main purpose is to appeal to and satisfy our target market, faculty and students at the

college level. Tea Gardens will also be set up in gyms, YMCA’s, hotels, hospitals, large office

buildings, recreation centers and sports park centers. Although our age group is wide we plan to

appeal to them all by conveying our message of a healthier lifestyle and going green. Lipton

strives to make sure our product appeals to consumers even more then our competition (i.e. soda

and coffee machines) so they will continually choose Lipton products from the Tea Garden..

As a company we will work hard to uphold Lipton’s image of being a healthy drink by

offering low calorie drinks, many fresh flavors, and a high level of quality that will satisfy our

consumer needs. The Tea Garden will appeal to the students and faculty in a way in which our

competition has yet to do. The environmentally friendly Tea Garden will make our products

stand out as a better alternative than other vending machines. Unlike vending machines that give

out a plastic bottle each time a soda is purchased our machine does not disperse plastic or

aluminum containers. Instead Tea Gardens offer reusable cups for purchase that customers can

use again and again.

The Lipton Tea Garden offers customers a wide variety of healthy alternatives. The

customers will also have the option to choose from a variety of flavors such as, green tea,

raspberry, green tea, sweet and unsweetened tea, and white tea. Not only are there dozens of

flavors of tea but customers will also have the option of having their tea either hot or cold. The

hot tea will be served at a temperature around 125 to 130 degrees and the cold tea will be served

at the same temperature of any soda machine. We also give consumers the option of bringing

their own cup from home or buying one of our reusable cups (only one size available) that come

standard with a heat guard.

We also will appeal to our consumers by offering lower prices than comparable vending

machines. On average a plastic bottle of soda alone cost $1.25 while one serving of Lipton tea

from The Tea Garden cost only $0.75. Also our customers can save both money and the

environment by bringing their own refillable cups from home. If they forgot their cup at home

they can always purchase one of our reusable cups at our vending machine for $0.25.

Lipton will use strategies to attract consumers, trying to convince them to choose our

brand when selecting a refreshment in-between class or if they are just looking for a refreshing

treat. We feel that our market of students as well as faculty are already looking for drinks, so we

are not trying to convince them they are thirsty but that our product is better for them then our

competitors. People of all ages have become more health and environmentally conscious and we

hope they take notice of our brand and all the benefits it has to offer to them.

Pricing Strategies:

Our objective is to price our refreshment reasonably so that they will be profitable for our

company and competitive with other lines. We will to charge $0.75 per serving of tea and $0.25

to purchase a cup, if needed. We are confident this price will satisfy our customers as well as

intimidate our competitors by setting our price below the average vending beverage price.

Refreshment is a product that most people do not spend much time thinking about.

Consumers are usually in and out and on with there day in a matter of seconds so, getting their

attention in as little time as possible is key to the success of the Tea Garden.. Although price is

still a factor, for our product, quality and flavor take precedence over price.

Since the Tea Garden is a new product we will have a promotion every month for one

year to generate awareness and support of our product. For our promotion we will to hand out a

gift card. The customer puts the gift card in the vending machine to receive their 1st tea free and

after they have purchased ten teas they can get the 11th one for free. The card can be used

continuously in this fashion (buy 10 get one free).

Our Pricing strategy is designed to gain the most profit for our company while still

offering a low price. With the reputation Lipton tea already has and with our idea to go green

there is no need for us to be the cheapest refreshment on the market, but we can still offer a

lower price then our competitors and still make a profit.