Twinings case
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Transcript of Twinings case
AbeAparnaRiya MidhunTamannasDeepak
CASE STUDY ON
INTRODUCTIONThomas Twining, went against the tide to share his love of tea
His passion turned a little-known drink into the nation’s favorite hot beverage
He started selling tea from his coffee house on London's Strand, promising only to sell the finest qualities and varieties
His pledge soon won him (and his tea) lots of fans - including Jane Austen and Charles II
TWININGS IN INDIA
The Indian headquarters are located in Gurgaon, Haryana, and the factory is located in Kolkata
Twinings fi rst ventured into the Indian market with its Earl Grey, Lemon, English Breakfast and Darjeeling blends in 1997
Today, Twinings India off ers over 15 flavours in the Premium Black Tea, Green Tea, Herbal & Fruit Infusions categories
Enjoy a sizable market share in the premium teabag category in modern trade as one of the leading players in the teabag industry in India today
UK based premium tea market entered India in 1997
Created super-premium market, turnover Rs 200cr
Premium segment 10% & super-premium 5% (5 years back)
Presently 20% market is in premium segment with Rs 4200 cr
SYNOPSIS OF CASE
Competitors : Dargeeling tea, Assam tea and tea bags
35% market share ahead of Tetley and HUL
Tetley and HUL introduced flavoured tea to compete with Twinings
To enter super-premium market Twinings introduced Green tea with medical value
CONTD…
Coffee , Tea or Twinings
Competitors – Tetley, Dilmah, HUL Strategies to introduce TWININGS among
youth and rich class
Possible to introduce in high class consumer market
ISSUE
MARKET SEGMENTATION : it is the process of dividing potential
users into categories to pinpoint characteristics that influence purchasing.
it allows companies to develop marketing
and advertising campaign that appeal to those who are most likely to make a purchase
THEORY RELEVANT TO CASE
BENEFIT: it allows business to gear their marketing eff orts towards consumers who would most benefit from their product and services.
METHOD: Marketing research such as survey and interview
FUNCTION: Target market segmentation allows company diff erentiate itself from its competitors and carry out a niche.
CONSIDERATION: If your target market is too small , you may have to expand your marketing eff orts to reach more potential customer.
MARKET SEGMENTATION
Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objective and there by achieving the organizational vision.
STEPS:o Setting Organizations’ Objectiveo Evaluating the Organizational Environmento Setting Quantitative Targetso Aiming in context with the divisional planso Performance analysiso Choice of strategy
STRATEGY FORMULATION
Strategy implementation is the translation of chosen strategy into Organizational action so as to achieve strategic goals and objective.
STEPS: o Developing an organization having potential of
carrying out strategy successfully.o Disbursement of abundant resource to strategy-
essential activities.o Creating strategy-encouraging policieso Employing best policies and programs for constant
improvemento Linking reward structure to accomplishment of resultso Making use of strategic leadership.
STRATEGY IMPLEMENTATION
Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers , based solely on the price. The practice is intended to exploit the tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional reputation or represent exceptional quality and distinction.
A premium pricing strategy involves setting the price of a product higher than similar product. This strategy is also called as skim pricing.
PRICE SKIMMING
Not necessary that youngsters especially students will accept the taste of such flavours
Majority of student community will be reluctant to consume premium tea
POINTS FOR DISCUSSION
These green tea variants are best-suited for health-conscious people with rich antioxidants and low calories
Green tea range brands will be targeting the potential health foods segment
"These refreshing flavours help in hydrating the body, thus giving an energised feeling
LEARNING POINTS
Advertise with brand ambassadors just for the promotion of new product.
Include TWININGS in the menu of Premium Hotels and Restaurants
Start premium cafeteria with the brand name TWININGS
RECOMMENDED STRATEGIES
Redesign packet looking luxurious.
Make contract with Railways and Airways to offer tea in First class
Provide TWININGS Green Tea in VIP cabin on Cricket match
CONTD…
CONTD…
Sponsor tea bag for premium conference and board meetings
Provide sachets and tea bags in Premium Health Club
Doctors can advice Twinings green tea to patients
Twinings will be successful if green tea attracts targeted youngsters to premium tea drinking
According to a company statement, these green tea variants are best-suited for health-conscious people with rich antioxidants and low calories
The company also said that its green tea range brands will be targeting the potential health foods segment
CONCLUSION
http://twiningsindia.com/twinings.html
http://www.indiainfoline.com/Markets/News/Twinings-Tea-launches-Earl-Grey-Green-Tea/4837091798
http://news.alibaba.com/article/detail/food/100148830-1-twinings-launches-two-new-flavours.html
http://www.managementstudyguid.com/strategy-formulation-process.html
BIBLIOGRAPHY
THANK YOU