In the year 2005, for example, tea's share of beverages grew by one percent, a positive sign for the tea market.
The competition: Tea has strong competition not just from other beverages like coffee brands, flavoured water, juices, soft drink brands and hard drinks but also from the various varieties of tea. Today myriad kinds of herbal teas dot the market, and each brand promotes its uniqueness. The main competitors include Clipper Teas Ltd, Premier Foods, Tetley group, Drury Tea and Coffee company, Whittard of Chelsea and Associated British Foods Plc to name a few. In this cluttered market, where brand loyalty for a particular brand is strong, but customers constantly experiment with new and unusual flavours, it is thus vital for a brand like PG Tips to make its presence felt for the basic brand of black tea.
Market and customer behaviour: With changing lifestyles, the usage of tea as a drink with the breakfast or a drink that people wake up to has also evolved. Many people prefer juice to the morning tea and many opt for diet coke over the evening tea. Besides this, types of tea purchased also vary with socio-economic status, marital status, working status, presence of children and household size. Research has revealed that the main customers to target for the traditional PG tips black tea bags are women over 35 years of age. Research has revealed that this segment of customers purchase tea for their family and enjoy it together in a typically British way.
THE 5Ps FOR PG TIPS
PRODUCT: The black tea of PG Tips in its original styled bag is the product in question. It has an existing customer base, which is not so large but steady. It has health benefits not yet advertised. And it has plenty of competition from a range of complementary and supplementary products.
PRICE: PG Tips has decided not to be a price player and it must stick to the position. The prices must not be discounted, as today's customer automatically becomes wary of a product's quality if the price is slashed. However economy packs of the tea bag that last for the entire month can be promoted.
PLACE: Prominent kiosks must be located at stores for stacking the tea. Special samples of the improved tea bag can be included with other Unilever products. Samples can also be included with complementary products like biscuit packets, crackers, chips and snacks.
PACKAGING: As PG Tips is an existing brand with an old image, it is important to revive the packaging keeping the new communication and sales strategy in mind. However the new packaging must not be drastically different as it may make the existing loyal customer wary. The new packaging for the practical woman over 35 must not be overtly fancy but be practical to use and stock. It must show value for money she spends and PG Tips must keep this maturity factor in mind. It would also benefit to add a small paragraph detailing the health benefits of black tea.
PROMOTION: Cross promotions at beauty parlours or women stores where women often visit may be a good idea. They could be offered tea and redemption coupons at these outlets. Tie ups could also be done with stores where women are offered purchase benefit coupons (like membership to a club, password to an online PG Tips tea club, prizes) on the tea.
THE IDEA OF THE CAMPAIGN
The campaign must mainly target women over 35 years old, as this is the segment that goes to