Lipton V/S Tetley - Corporate War

MARKETING PROJECT 3
CORPORATE WARS
Done By- Yashaswini Agarwal
2012

TOPIC
SURVEY OF DEMAND FOR SELECTED
PRODUCTS AVAILABLE UNDER DIFFERENT
BRAND NAMES THROUGH HOUSEHOLD
ENQUIRIES IN THE LOCAL AREA.

TABLE OF CONTENTS
1 Acknowledgement
2 Certificate
3 Corporate Wars
4 Introduction of Company – History
5 Financial profile
6 Marketing Mix – the 4 P’s
7 SWOT analysis
8 Questionnaire
9 Survey Results
10 Awards / Social responsibility

INTRODUCTION OF
COMPANY
&
GROWTH PROFILE

INTRODUCTION OF
COMPANY- TETLEY
Tetley, a wholly owned subsidiary of Tata Global
Beverages ,which is the world's second largest
manufacturer and distributor of tea. Owned
by India's Tata Group, Tetley's manufacturing and
distribution business is spread across 40 countries. It is the
largest tea company in the United
Kingdom and Canada and the second largest in
the United States by volume.

• In 1822, brothers, Joseph and Edward Tetley,
sold salt from a pack
horse in Yorkshire. They started to sell tea
and the venture became such a success that
they set up as tea merchants, "Joseph Tetley
& Co.", in 1837. They relocated to London in
1856 and set up "Joseph Tetley & Company,
Wholesale Tea Dealers". It was the first
company to sell tea in tea-bags in the United
Kingdom in 1953.
• In 1871, Joseph Tetley took his son, Joseph
Tetley Junior into the business.
HISTORY – BIRTH - TETLEY

• Tetley Tea expanded into the blending and packing of
tea. By 1888, Tetley Tea expanded into the United
States, and began to distribute tea in the country.
• Joseph Tetley Junior took over the business in 1889,
after the death of his father. Tetley Tea continued to
expand in America, and by 1913 Tetley Tea had
established plants in New York City.
• In 1953, Tetley Tea launched the Tetley Tea Bag in
Britain.
• Tetley continued to innovate with the introduction of
the round tea bag to the U.S. in 1992, that literally
changed the shape of the market. Tetley further
revolutionized the industry with the unveiling of the
first drawstring tea bag , in 1997.
HISTORY TETLEY

• The Tetley Group was bought by India's Tata Group in February 2000 for
£271 million. It was one of the largest overseas acquisitions by an Indian company
at that time. Tata Group is one of India's largest business conglomerates
comprising more than 100 companies including Tata Global Beverages. The
acquisition has helped Tata's business ambitions to hold a global tea company.
• Tetley Tea, London's favorite household tea brand, announced its 175th
anniversary, celebrating how it has helped bring the nation together over quality
tea since 1837.

INTRODUCTION OF
COMPANY - LIPTON
Lipton Tea is a British tea company,
founded and named after its original
owner, Sir Thomas Johnson Lipton.
Lipton tea began in 1870 and is now one
of the largest tea traders in the world. It
is currently owned by
the Unilever Company.

• Lipton was born in 1850, in Glasgow, Scotland. In 1865, Lipton
moved to the United States where he held various jobs,
including working on a tobacco farm, a rice plantation and a
streetcar. Lipton, however, was inspired by working in a
department store's grocery.
• While working there, he witnessed and learned the power of
American merchandising. American merchandising was often
involved outrageous images or actions, with catchy
slogans designed to grab as much attention as possible. Some
advertising campaigns were not adverse to publicity stunts.
• Lipton returned to Scotland and opened his own grocery store
in 1871. Following from the lessons learnt in America, he
promoted the store by conducting publicity stunts.
HISTORY - BIRTH

• Lipton's first publicity stunt was a parade of the largest hogs in
captivity bearing the sign, "I'm going to Lipton's. The best shop in
town for Irish bacon!" This stunt jammed traffic and grabbed
headlines - exactly Lipton's intent.
• By 1880, Lipton had twenty stores, and by 1890, Lipton owned
three hundred stores and had become a household name.
• Lipton venture into tea in 1890. On his way to Australia, Lipton
made a secret stop to Ceylon. During that year, disease had
ruined the coffee plantations, and plantation owners were growing
tea instead.
HISTORY - BIRTH

• Lipton bought five bankrupt plantations to supply his stores in
Britain, and used the slogan, "Direct from the Tea Gardens to
the Teapot". Lipton intended the public to associate his name
with Ceylon tea.
• Lipton pioneered the idea of selling tea as individual packets, for
longer freshness, consistent quality and guaranteed weight.

• The Lipton tea business was
acquired by consumer goods
company Unilever in a number of
separate transactions, starting with
the purchase of the United States
and Canadian Lipton business in
1938 and completed in 1972 when
Unilever bought the remainder of
the global Lipton business
from Allied Stores.

FINANCIAL PROFILE –
TETLEY
Tata Tea, a mere $114 million company that sold commodity
tea, acquired the global brand Tetley for $ 450 million, three
times its size.
All Tata companies together earned just around $9 million in
2000 when Tata Sons acquired Tetley .
RABO BANK International, financial advisor and lead arranger
for the leveraged debt financing package in Tata Tea's
acquisition of Tetley, had planed to finalize seven lead
managers and managers to syndicate a 165-million loan by
June-end 2000 .

Tata Tea then vice-chairman R K Krishna Kumar said that the
acquisition will be financed with pound 70 million (about Rs
4.874 billion) of equity. Pound 60 million will be from Tata
Tea India and pound ten million from Tata Tea Inc USA, a
100 per cent subsidiary of Tata Tea.

LIPTON
• Unilever was the leader of the global tea industry in 2007. It
purchased around 12% of the world’s total black tea production
and was strongly placed in the market with leader brands.
• Lipton was the global market leader in both leaf and ready-to-
drink tea, with a global market share nearly three times larger
than that of its nearest rival. It was one of Unilever’s 12 major
brands and was available in 110 countries. Lipton’s main markets
were Western Europe, North America, the Middle East and parts
of Asia.
• Lipton sales in 2007 were of €3 billion.
• PG Tips was one of the two leaders of the UK tea market, with
consumers drinking over 35 million cups per day.

LIPTON
• In India, a market that consumed approximately 25% of the tea
the company sold worldwide, Unilever was also the market leader
(for packed tea), with the brand Brooke Bond.
• Back in 2005 Lipton was not perceived as a shiny, vibrant brand
and was suffering the consequences in the market.
• In 2006 an assessment group made up of brand developers,
supply managers, corporate responsibility executives, outside
consultants and Unilever managers from diverse functions was
created, and Lipton became one of the first two Unilever brands
to run the brand imprint exercise.

PRODUCT
 PRICE
PLACE
PROMOTION
MARKETING MIX

Product refers to the goods and
services offered by the
organization. It is the bundle of
benefits of tangible and
intangible attributes which a
marketer offers to a customer
for price. Needs of the
consumer must be recognized
before deciding the product to
be developed. It consists of
product line and product range,
product design, product
package, product quality,
product labeling, product
branding, after sales services and
guarantees.
PRODUCT
MIX
PRICE MIX
Price, the second element of
marketing mix is the value of
product expressed in terms of
money. Pricing decisions and
policies have a direct influence
on sales volume and profits of
business. Many factors like
Demand, cost, competition,
government regulation etc. must
be kept in mind while fixing
price of a product or service.

Promotion is an important element
of marketing mix as it refers to a
process of informing, persuading
and influencing a consumer to
make choice of the product to
be bought. Promotion is done
through means of personal
selling, advertising, publicity and
sales promotion. It is done
mainly with a view to provide
information to prospective
consumers about the availability,
characteristics and uses
PROMOTION
MIX
PLACE MIX
Goods are produced to be sold to
the consumers. They must be
made available to the consumers
at a place where they can
conveniently make purchase.
Place mix stand for arrangement
for smooth flow of goods and
services from the place of
manufacture to the place of
consumption. It is concerned
with creation of place, time, and
possession utility.

CLASIC BLACK TEA - a unique
blend of quality Assam teas
specially crafted for tea bags or
packet format, famed for its
distinctive aroma and rich colour
TETLEY - PRODUCTS
BRITISH BLEND - British Blend
combines premium Kenyan and Assam
teas to deliver a richer, full-bodied
blend with superior tea flavor, body
and color.

TETLEY FLAVOURED TEAS – a
choice of classic and unusual
flavours, including earl grey,
masala and lemon, to brighten
any day.
TETLEY GREEN TEA- A
beautifully smooth blend of green
tea that is rich in naturally
occurring oxidants and available in
a over 13 popular variants,
including ginger mint & lemon,
lemon & honey and jasmine

TETLEY T4KIDZ - Tetley in the UK
launched T4KIDZ, a totally new kind
of hot drink, specially blended for kids
from Redbush and Honeybush.
Available in three fun flavours – Pure,
Vanilla and Strawberry – T4KIDZ is
caffeine-free, sugar-free but naturally
sweet tasting.
TETLEY ROOIBOS - also known as Red
bush or Red Tea. Rooibos is a tea-like
plant only found in the Cedarburg
mountains in South Africa. It has a
gorgeous red colour that is naturally
sweet and caffeine free. The Tetley
Redbush range also includes a variety
of flavours to suit different palettes,
including Vanilla and Orange

TETLEY INFUSIONS - Real-
brewed, naturally sweetened
Tetley tea with no preservatives,
artificial sweeteners, flavours or
colours which blends perfectly in
water for natural, refreshing tea
anywhere
TETLEY FRUIT AND HERBAL – a
range of over 10 fruit and herbal
blends that will excite and entice the
most discerning palettes, ranging
from Peppermint to Blueberry and
Ginseng

TETLEY CHAI LATTE - An exciting
new product competing with
both coffee and tea, the range
includes three flavours - classic,
vanilla & berry.
TETLEY COLD - light, refreshing fruit
infusions specially created to brew in
cold water, naturally caffeine free with
no added sugar, no artificial sweeteners
and only 4 calories per serving (200ml),
available in two variants –Strawberry
with blueberry or raspberry.

LIPTON ICED TEA
LIPTON - PRODUCTS
LIPTON FRESH BREW ICED TEASLIPTON HERBAL TEAS

LIPTON ICED TEA MIXES LIPTON BLACK TEAS
LIPTON WHITE AND RED TEAS

LIPTON GREEN TEA
LIPTON TEA AND HONEY
LIPTON FLAVORED BLACK TEAS

TETLEY - PRICE
Lemon
Chamomile Tea
$ 4.53
Peppermint
Tea $ 4.70
Decaffeinated
Ice Tea
$44.85
Black Tea British
Blend $ 4.86
Earl Grey
$ 4.03

TETLEY - PRICE
Rooibos Vanilla
and Pear $ 8.40
Green Tea
Decaffeinated
$ 12.73

LIPTON - PRICE
Flavoured Black
Tea Dhs. 7.25 Black Tea
Dhs. 7.25
Herbal Infusion
Dhs. 7.25
Pyramid Tea
Bags Dhs. 9.65
Chai Latte
Dhs. 8.75

LIPTON - PRICE
Earl Grey
Dhs. 4.95
Clear Green
Dhs. 16.75

• Tetley has its products reaching out to a number of countries.
Some of them are:
South Africa
Mozambique
Namibia
Zimbabwe
Ghana
Nigeria
India
Kazakhstan
Slovakia
Czech Republic
TETLEY – PLACE
France
Italy
Cyprus
Greece
Latvia
Faroe Islands
Lithuania
Portugal
Spain
Switzerland
Mongolia
Uzbekistan
Australia
UK
Poland
Bulgaria
Hungary
Estonia
Romania
Malta
Belarus
Saudi Arabia
UAE
Kuwait
Oman
Bahrain
Qatar
USA
Canada

• Available in over 110 countries, Lipton is particularly popular
in Europe, North America, Africa and the Middle East, parts
of Asia and Australasia (Australia and New Zealand). Despite its
British origins, Lipton black tea (such as Yellow Label) is not
marketed in the UK and is not found in mainstream British
stores. However, Lipton Ice Tea and fruit teas are available in the
UK.
TEA IN U.A.E
• Until 1998, the tea for the Arabian markets was sourced from the
United Kingdom. The strategic geographical location between tea
growing areas and the world’s largest tea markets encouraged
Unilever to establish its first fully automated tea factory in 1998 in
Jebel Ali Free Zone in Dubai.
LIPTON – PLACE

While the factory was originally conceived to supply to the local
markets, the site has since grown in capacity and geographic
reach. With production volumes increasing from 5000 Tons to
25,000 Tons in 10 years, the site is today a global sourcing hub
exporting to 53 countries worldwide.
• Unilever, on 12th May 2009 celebrated the Lipton Tea factory's
(Located in Jebel Ali Free Zone) 10 Years of Excellence.
LIPTON – PLACE

TETLEY –
PROMOTION
Tetley Promoting – Green Tea
Decaf
Tetley Promoting – Tetley Refresh
– Mint Ginger and other
flavours

MINI, the iconic
British auto brand,
embarked on its
greatest cross
country road rally
ever – “MINI
TAKES THE
STATES” and Tetley
Tea was there! The
extravaganza took
place from July 4-13
2012 with 5000+
MINI enthusiasts
traveling from New
York to Los Angeles
.Tetley went along
for the ride with a
Tetley wrapped
MINI as part of the
festivities. Road rally
participants enjoyed
samples of Tetley
British Blend, English
Breakfast and Earl
Grey.

Tetley UK Website provides its customers with locations
from where they can buy Tetley Tea

An advertisement of Lipton
tea in 1892.
LIPTON – PROMOTION
The advertisement say’s –
Lipton’s tea have the
fastest sale in the
world. Over 10,00,000
packages sold weekly.

Lipton promotion – Buy the Lipton Milk Tea
Promo Pack and WIN INSTANT PRIZES.
Lipton promotion – With Lipton Yellow Label
Tea bags win prizes like T.V, mobiles, Cameras
and much more !

PROMOTING THEIR NEW FLAVOUR LIPTON INFUSIONS –
PEPPERMINT AND STRAWBERRY

• One the oldest Tea Brand in the World: Tetley has been around
since 1837, and is among the oldest living brands in the world and
has been making tea for more than 160 years.
• Association with TATA Group: It is owned by TATA Group of
Co. which is the largest tea manufacturer and distributor of tea in
the world.
• Pioneers: Tetley has always been the pioneer in inventing new
things when it comes to tea. Their inventions include the tea bag
and the round tea bag.
• Promotional strategies: Tetley is among those brands that have
made a mark in very especially in the interiors. It battled with
players like Tapal and Unilever. It was only possible because of
their strong promotional activities.
TETLEY – SWOT ANALYSES
STRENGTHS

STRENGTHS
Quality: Quality has always been Tetley’s strong point. The
price driven market is now becoming a little quality conscious
and it is helping Tetley’s cause.
Association with Lakson: It is partly owned by Lakson Pakistan,
which deals in many diverse products and has full experience
and knowledge of the Pakistani environment & its consumers.

• Experienced and quality management.
• Strong Ethical values
• Strong financial position
• Strong company name
• Success of the slogan
• Quality and variety / Rich taste and flavour / Unique aroma
• Effective and attractive packaging / Good packaging
• Brand recognition / Brand Visibility
• Accessibility
LIPTON – SWOT ANALYSES
STRENGHTS

WEAKNESS
• Market share: Out of the total share Tetley has only been able to
capture 7% of the national market. One reason is the fact that they
have not entered the metropolis areas with full force as of now.
•Customer Preference: Due to recent increase in recent tea prices
many consumers have shifted to unrefined tea better known as
‘kholi Chai’ because of the cost factor. Since most of it is smuggled,
so Tetley and other good brands are not able to compete with
them.
•Customer Awareness: Customer Awareness is another issue that
the company needs to work on. A lot people are still unaware that
Tetley is available in the urban centers.

WEAKNESS
•Distribution: Their poor distribution is making matters worse.
Tetley is either not available at the stores, and even if it is there will
only be one SKU available per store.
•Advertising: It only advertises in the rural areas and no
mentionable efforts have been made to capture the urban
population

• High Price of the products
• Substitutes of the product
• Communication problems – Yellow label is absorbed so much in
the minds of consumers that they will not be interested in a new
product. Most of the Lipton loyal customers will still prefer using
the Yellow Label because it has a sense of trust and commitment
in terms of taste.
WEAKNESS

• Unexploited rural markets
• Increasing number of working youth who prefer tea
• Need for tea in Asian countries
OPPORTUNITY

• Research and development
• Makes people active
• Brand is the part if traditional drinking habits
• Expansion in other areas of the country is easily possible.
• Corporate tie-ups / Hotel tie-ups
• Cheaper packets for rural areas
OPPRTUNITY

THREATS
• Strong presence of regional competitors
• Competitive prices
• Less production

• Strong competition in urban areas.
• Internationally increasing tea prices
• Political conditions in the country may be obstacles in export
process
• High inflation in the country can negatively affect the brand.
• Preference of people having coffee or other beverages
THREATS

• Which brand do you use?
- Lipton - Tetley
• How long have you been using it ?
- Some months - 1yr
- more than 3 yrs.
• Do you feel you are charged
according to the quality of the
product ?
- Yes -No
• Do they offer a wide variety of
products to you ?
- Yes - No
QUESTIONNAIRE
• Are you made well aware of a new
product of this brand coming to the
market?
- Yes - No
• Do their advertisements provide
relevant information about the
product?
- Yes - No
• Taste wise, how would you rate this
brand :
-Excellent - Very Good
-Good - Alright - Not at all
pleasing

We come to know that
out of 10 customer, 6
customers prefer
Lipton in terms of
quality. Lipton is again
chosen by 10
customers when asked
regarding the variety
offered.
Lipton has a variety of tea
flavours available for its
customers.
PRODUCT
10 customers were surveyed regarding their choice of Lipton or Tetley.
They were asked, “Which brand provides better quality of tea?” and
“Which brand offer a wider range of tea?”.
0
1
2
3
4
5
6
7
8
9
10
Quality Variety
4
0
6
10
Tetley
Lipton

From the pie chart we can
derive that 60%
customer find the prices
of Lipton tea to be as
per the quality offered
to them. They are
attracted by its
fragrance and colour .
We also found out that as
Lipton has a variety of
tea’s available the prices
differ and are suitable
to all.
PRICE
They were asked, “Do you feel you are charged according to the
quality of tea provided to you ?”.
40%
60%
Price par Quality
Tetley
Lipton

Here, in Dubai both the
brands Tetley and Lipton
are available equally, 50%
each . But, when asked in
detail customers said they
found many outlets selling
Lipton. Being a Non-
Indian brand it is more
famous among both the
local and expatriate
population. Mainly, the
Indian retail outlets
provide their customers
with Tetley.
PLACE
They were asked, “Is Tetley and Lipton easily available in your localities
retail outlets?”.
50%50%
Availability
Tetley
Lipton

Customers feel that Lipton
has more colourful and
attractive promotional
advertisements. In,
Dubai the customers
do not get to see the
advertisements of
Tetley in papers or TV,
therefore the graph
show 10 – 0 .
The customers have not
really seen Tetley
promoting their brand
in this region.
PROMOTION
They were asked, “Do the advertisements provide enough and relevant
information about the new product in the market? and “Are the
advertisements attractive?”.
0
1
2
3
4
5
6
7
8
9
10
Relevant
Information
Attractive
2
0
8
10
Tetley
Lipton

• Tetley has been rewarded for all the hard work that constantly
goes into satisfying their customers as they picked up the Gold
Medal Foodservice Brand at the Federation of Wholesale
Distributors .
• The Tetley brand, scooped the Large Employer title at the
National Training Awards (NTA) in recognition of its outstanding
contribution and commitment to training, learning and
development in the workplace in 2011.
TETLEY – AWARDS

• Unilever received the MRM Business Award in the Manufacturing (Free Zones)
category for its Lipton Tea Factory which was recognized for its performance
on strategic initiatives, leadership perspectives, quality imperatives, corporate
culture and corporate social responsibility. The award was presented by his
Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister and
Vice President of the U.A.E. and ruler of Dubai to Sanjiv Mehta, Chairman,
Unilever North Africa Middle East.
• They were also nominated for the SLAA Rising Star Award 2012 and won the
property Management Company of the Year .
• The Lipton Tea Factory has also received a number of certifications to
internationally recognized standards of quality and consumer safety and has
also been awarded for its excellence by the Japanese Institute of Plant
Maintenance.
• In 2007, their factory was awarded gold in the" Health and Safety Award-
2007" from EHS, the Environment, Health and Safety regulatory arm of Dubai
World.
LIPTON – AWARDS

TETLEY – SOCIAL
RESPONSIBILITY
Caring for People
At Tetley, they do what's right for their tea drinkers, their team and
their world.
Tetley cares about the social and ethical conditions involved in
growing the tea they buy. They believe their success must not be at
the expense of the people or the environment that make that success
possible. That's why they are committed member of the Ethical Tea
Partnership (ETP).
The ETP is a non-commercial alliance of 18 international tea packers
working together to promote social responsibility in the world tea
trade and assure the ethical sourcing of tea. The ETP monitors the
living and working conditions on tea estates and works with estate
owners to see that appropriate improvements are made. Sometimes
estates choose not to meet the minimum standards. That's when they
draw the line and stop buying tea from them. So when you buy
Tetley Tea, you can feel good knowing that every cup you enjoy was
produced in a socially responsible way.

LIPTON – SOCIAL
RESPONSIBILITY
Lipton Tea, an industry pioneer in sustainable agriculture
practices and social responsibility, is undertaking a major
expansion of its long term commitment to sustainability.
Selected Lipton Tea products bearing the Rainforest
Alliance-certified seal are available on grocery store
shelves across the United States. The brand is also
launching an integrated partnership with National
Geographic Global Media to highlight the social,
economic and environmental benefits of Lipton's
sustainability practices.
In 2007 Lipton set out to lead the industry by committing
to purchase all of its tea from sustainable, ethical sources.
Since then, the company has worked closely with the
Rainforest Alliance, a non-profit conservation organization
that works around the world to develop and promote
sustainable standards in farming, forestry and travel, to
certify as sustainable all of the tea estates that supply its
tea.

CONCLUSION
• Which brand is more preferred ?
Both the 2, Tetley and Lipton have a good share in the market. According to my
project result, I have found out that customers have been preferring Lipton for
their tea brand.
Their are many reasons to their choices –
• Taste
• Aroma
• Cost
• Variety
• And most importantly – Availability
We find that Lipton is widely available in Dubai as compared to Tetley. Customers
here are more comfortable in using an already established brand who’s quality
they trust. They also show ‘brand loyalty’ towards it.

CONCLUSION
• We find that the goodness of a cup of Tetley tea is enjoyed in
close to 11 million homes in the UK and in 70 countries
worldwide. Acquired by Tata in 2000, Tetley is a true leader in
black, decaffeinated, red bush and green tea.
Currently market leader in both the UK and Canada, the brand's
strong innovation agenda includes the first launch of Extra Strong
tea, for that fuller flavour, Tea for Soya, specially created to be
drunk with soya milk, and ‘Infusions’ – a liquid ‘Real Brew’ tea
mix for water, created exclusively for the Canadian market.
• We see that Tetley has captured the UK and Canadian market
much stronger than other countries.

BIBLIOGRAPHY
• http://www.tataglobalbeverages.com/about-us/our-history
• http://www.teainfusion.com/brands/history-of-lipton-tea.html
• http://tetleyusa.com/about-us/about-us
• http://www.reportlinker.com/news/2011/05/Tata-Tea-Gives-Tetley-a-Makeover-074
• http://www.scribd.com/doc/54025254/Lipton-Mktg
• http://www.unileverme.com/mediacentre/pressreleases/2009/JebelAlitenyrsexcell.aspx
• http://www.unileverme.com/mediacentre/pressreleases/2012/
• http://www.scribd.com/doc/45055644/Swot-Analysis-for-Tetley
• http://www.scribd.com/doc/31547257/Swot-Analysis-b-w-Lipton-and-Tapal
• http://www.saiplatform.org/uploads/Modules/Library/unilever-tea-a_revitalizing-liptons-
supply-chain.pdf
• http://shopping.yahoo.com/tea/tetley--brand/
• http://www.prnewswire.com/news-releases/liptonr-tea-continues-major-expansion-of-
sustainability-initiative-62159847.html
• http://www.uk.tata.com/media/releases/inside.aspx?artid=IOiHJ3m1nW0=
• http://www.uk.tata.com/pdf/uk_csr_booklet.pdf

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