The distribution intensity of the new brand and its products is dependent upon various factors including the size of the target market segment, pricing of the company and funds to be allocated for the promotion of the brand. Initially, the new brand will use selective distribution to sell its products to wholesalers and retail outlets and coffee shops in London Area. The reason for choosing this approach is due to the company’s unique selling proposition which needs to be tested out in one major region of UK tea market. Once the company gain experiences from this market then it will engage in intensive distribution throughout UK.
There are various pricing strategies that may be considered when introducing a new brand in the market. Based on the characteristics of the UK tea market it is obvious that the new brand has to face tough landscape in terms of the intense competition between existing prices and their ability to produce and market tea at lower profit margins. According to BBC, the price of tea is rising due to the increase in demand for tea (Twining). Therefore, the company can adjust its pricing strategy according to the expected demand for its different types of herbal and specialized teas. ...Show more