ANALYSIS TOPIC; EVALUATION OF MARKETING STRATEGY OF TETELEY TEA IN UK BUSNESS TO CONSUMER MARKET Aim Investigate the reason behind

sustainable performance of Tetley in processing and implementing marketing strategies, in UK B to C market. Objectives To investigate the marketing strategies which enables tetely to deliver sutsuniable performance? To make a detailed evaluation on How Tetley processing their marketing strategies? To explore How Tetley implements their marketing strategies? To analyse how Tetley controls and coordinates their marketing strategies? To make a description about the barrier Tetley face while implementing marketing strategies? Findings Marketing strategy of Tetley
Marketing strategy is critically important for all firms to win their battle in the market place .According to the Manager A, Tetley makes marketing strategies for achieving objectives of the company .Tetley implements long term as well as short term marketing strategies based on situation and core business strategies objectives of the company. The basic core business strategy of Tetley is sustainability and increasing the market share in the UK market. Tetley updates their marketing strategy time to time according to the dynamic business environment. The main reason behind this in the current business environment is the peak competition and changing consumer behaviour. The main objective of the company in making short term marketing strategy is to beat the competitors, gaining the market share and for increasing the sales for a particular segment as well as whole segment. Likewise Tetley implements their long term strategy for creating value to their brand in UK market. According

to Sara Hulse (2008) etl, Firms doing for achieving the organisational objective that includes achieving the marketing share and expanding market. Tetley is developing the marketing strategy on the basis of identifying the internal and external environment. This can be analyzed effectively through some business analytical tools like SWOT, PEST and Michel porter five force analysis of the company .According to the Colin Gilligan and Richard M.S. Wilson (2009) the evaluation of external and internal environment is important for making a successful marketing strategy. In this analysis each tool is analysed separately on the basis of information that I have collected from both primary and secondary data sources. SWOT ANALISIS The term SWOT indicates Strength, Weakness, Opportunities and Threats. The management normally uses this tool to identify internal and external environment. The strength and Weakness will analyse the internal environment and opportunities and threats will analyse external environment. By doing this, company can enhance the internal strength and it will help the company to reduce the weakness. This enables the company to tap the business opportunities.

SWOT ANALSIS

(Source, page number 119, marketing strategy 2008, O.C. Ferrell, Michael D. Hartline)

The following is the swot analysis of Tetley in UK market. Strength Strength of the company can play a key role in achieving business objectives and goals .Strength help the company to beat the competitors in the market place and also to identify their potential areas. Potential strength companies can be vary through different factors, for example some companies strength can be production capacity, or it can be brand name etc .Strengths have to match with the opportunity to tap the market. The following section indicates some of the strengths Tetley have, Tetley has there own 56 plantations around the world.

Tetley has a tea business history of more than 100 years in the UK market. Financially strong because it is owned by TATA group.
Brand name and brand logo is a key strength and key asset for the company in the UK market.

Strong distribution channel in the UK market, for example Tesco, Sainsbury, Asda
etc.

`Weakness For every coin there are two sides, so here as well the Tetley have some weakness. Health related issues

People have a perception that Tetley pays low wages for the tea workers in Tetleys
Asian tea plants. By identifying above, Tetley can overcome the weakness, for instance I have pointed that the perception of public regarding paying low wages to the employees in the Tetley tea plant, the weakness has now identified by the company and they have started mission for overcome this through their modern strategies. For that Tetley have recently joined in ethical tea partnership which mainly focus on the welfare of workers in tea plant at different nations.

Opportunities A good marketing is an art of identifying, developing and exploring opportunities. Tetleys marketing opportunities are based on the needs, interest and drinking behaviour of the consumers. These opportunities had made the success of company in the UK market. The main market opportunities of the Tetley are follows;

More than 150 million cups of tea drunk in UK per day, it will increase the need of
tea in market creates great opportunity in establishing their products.

Increase in the population of UK for example increase in migration of people from

highly tea consuming countries like china, India and other Asian countries.

Introduction of advanced technology to tea production have the potential to increase

the production capacity and profitability. These opportunities have the potential for generating higher sales which enforces the company to meet the Financial Rate of Return and profit of the company. With the introduction of modern technology company could reduce the cost of production and wastage of resources. This will lead the company to meet the growing demand in UK market in a cost effective way. The low cost production can help the Tetley to do a competitive pricing in the current highly competitive UK market. Threats

The UK tea market is highly competitive and relatively elastic Strong competition from local retail store brands like Tesco and Sainsbury tea brands Regulation of government and from other bodies like Advertising Standard Authority
(ASA)

Tea is considered as a traditional drink in UK market with the perception of an old

fashioned and less functional than other substitutes product.

Competitive pricing in the UK market.

PEST ANALYSIS OF TETLEY UK

Picture of PEST analysis Economical factors Some environmental factors that affect the company for instance, increasing unemployment level in the economy it will lead to decrease income and their by reduces the purchase activities. In addition to this there are some other factors like Changes in customs duty, inflation and budget etc. Social factor Changing behaviour in people for example people in UK are more concerned about health related issues. Decreasing income of the people will reduce the conception of tea in the market, this will also affects the business expanding strategies.

Legal factor Legal factor plays an important role in UK business environment. Some legal factors like minimum wages, working hours, maintaining standard and regulations in advertising in UK market (ASA), health and safety etc are important for the Tetley to run the business in the UK market. Environmental Factors Environmental issues have some key influences in delivering eco friendly product packaging, and protection of the tea plantation owned by the Tetley. Because of these issues Tetley make sure that the life of workers in tea plant is safe, comfortable. Tetley is a member of international ethical tea partnership. ANALISIS OF PORTERS FIVE FORCES

THREAT OF NEW ENTRANTS

BARGAINING POWER OF SUPPLIERS

COMPETITIVE

RIVALRY

BARGAINING POWER OF BUYERS

THREAT OF
SUBSTITUTE PRODUCTS

(Source from competitive strategy techniques for analysing industries and competitor by Michael .E. Porter 1998)

The marketers make use of Porters five forces to determine the intrinsic long attractiveness of market or market segment. Five forces include industry competitors, potential entrance, threat of substitutes, buyers barging power, suppliers bargaining power. This analysis is useful for firms to develop an effective marketing strategy and also gives an insight about the market. With the collected information and five forces model I have analysed the industrial environment of Tetley, that are follows;

Threat of industry segment rivalry Tetley have a number of strong and aggressive competitors in the UK market. For example, Tetley is facing strong competition from the companies like twinnings, PG tips, Yorkshire tea and other local retail tea brands in all segments. These market conditions in UK will lead to a continuous price war and promotional battles. So by doing this analysis Tetley can identifies their competitors in every segment in UK market. And it helped them to develop an effective marketing strategy to beat the competitors in the market and for gaining the market share. Threats of new entrance The chance of new entrance in UK tea market is comparatively high because of the liberalisation in UK trade laws and increasing demand. Despite of this other international brands will not entre suddenly to UK market because of the higher competition in Current market. Companies like Tetley, twinnings, and PG tips plays important role in the market due to their high presence. These factors will have the potential to pull back other companies for entering UK market. Company can reduce the threat of new entrance to UK market by cultivating an emotional attachment towards Tetley brand in the mind of consumers by delivering value and through effective communication. Emotional attachments towards the brand can create a monopoly in UK market. It has proved by other companies in other soft drinks markets for example coca cola in UK. And it is crucial to Tetley for identifying the chance of new entrance to the market for making good marketing strategy.

Threats of buyers growing buying power Buyers have high bargaining power in tea industry because of the large number of tea manufacturing companies in UK market. Since the switching cost is negligible consumers have great hand in updating their brand with varying demands and needs. Even though the demand is high in UK market the companies are fighting to capture market share by the implementation of new polices and strategies to attract the consumers. Threat of substitute product Tea is a refreshing hot drink, so the substitute product is coffee already exists in UK market and demand for the coffee is increasing with tea. Because of this threat and influences of these substitute products are high in changing the drinking behaviour in the consumer. Bargaining power of suppliers In the production of tea in Tetley, the bargaining powers of suppliers are less when compared to other competitors. The main reason behind this fact is the availability of get raw material directly from Tetleys tea estate. But in the product distribution side suppliers for Tetley are retailers and they have more bargaining power. This is because, in UK market Tetleys total business is depending up on their main suppliers like Tesco, Sainsbury, Asda etc. The company can defence this situation by building strong and good relationship.

MARKETING STRATEGY PROCESSING Tetley process the marketing strategy after clear identification of their objectives. The marketing objectives are changing according to the market situation and environmental influences .Tetley process the marketing strategy through segmenting, targeting and positioning. According to arguments of Chris Phillips, Isobel Doole, Robin Lowe (1994)

the companies are using different ways for developing marketing strategy but the common approach for processing the marketing strategy is done through segmenting, targeting and positioning.

MARKETING STRATEGY PROCESSING

SEGMENTING

TARGETING

POSITIONING

(Picture of marketing strategy processing)

Market Segmentation Without proper segmentation of the market company cannot satisfy the needs and demands of all customers. So it is important to divide the market into a group of customers or segments with distinct needs and wants. The firm have to choose and identify the segments in the market for serving effectively. For developing the best marketing strategy the marketers has to understand what makes each segment unique and different. In UK business to consumers market Tetley has segmented consumers on the basis of demographic, behaviour and benefits related. Tetely has also done the niche market segmentation to ensure consumer satisfaction in all levels. According to David J Rachman (1974) the company can segment the market on the basis of behavioural demographic. Kotler ( 2009) state that the consumer market can be segmented on the basis of benefits and there are some levels of market segmentation that mainly consist niche marketing. Each segment has analysed separately with primary and secondary data that are follows;

BENIFITS
SEGMENTATION

TETLEY
MARKET SEGMENTATION

BEHAVIOUR
SEGMENTATION

DEMOGRAPHIC SEGMENTATION

(Diagram of Tetley market segmentation)

Demographic segmentation In demographic segmentation Tetley has segmented UK business to consumer market on the basis of age, the family size and income of the people. For example, one of the age segmentation of Tetley has kids tea segment serves to age range of 7 to 16 old. This demographic segmentation will help to satisfy the needs and wants of the customers. UK tea market consists of different age group with different taste and attitude towards tea, for instance the age between 7 to 14 they prefer more flavoured tea rather than going into normal tea and Herbal teas. On the other hand the age groups like 35 to 70 they prefer more health benefits from tea like green tea camomile tea etc. So this kind of demographic segmentation helps Tetley to serve better to each age group according to their tastes. And through this segmentation company could satisfy the needs of different age groups. The demographic segmentation has played a major role in Tetleys

success especially in kids tea market is segmented on the basis of age which enabled company to capture sustained market share in the specified age range. Behaviour Tetley has segmented the consumers on the basis of behaviour. For example some people buy the tea in large quantity because they dont do the purchase every day and every week but on the other hand some customers they do frequent purchase. This forced company to segment their market on the basis of purchasing behaviour of the customers. According to the Behavioural Segmentation company has designed the product packing strategies to satisfy the customers. In the survey questionnaire I have given the question like how often do you purchase tea and I have given three options for the opinion. Every week, every month and every three month are the options i have given to the respective question. In the survey i got 97 replays out of 120 as they buy the tea every month . The percentage of the replied answers is illustrated with the help of a diagram.

every three month 7% every week 37%

every month 56%

Slice 2 0%

(Diagram is illustrating the opinion of tea consumers in survey about purchase of tea) From the survey and interview this research has identified that Tetley utilizes behavioural segmentation because the tea consumers have different purchase behaviour. Behavioural segmentation helped Tetley specially to design their products for different

consumers having various purchase behaviour. For instance Tetley introduced 80 tea bag packet aimed for frequent buyers and 240 tea bag packet for non frequent purchase customers. This product design has the capability to satisfy customers who has different purchase behaviour and it will create a emotional attachment to the brand. Benefits Tetley also segments their market in the basis of benefits. People in UK are more concerned about their health so wide group of tea consumers are looking for the benefits of drinking tea. Segmentation on the basis of benefits is really important to the fast moving consumer goods industry to maintain a sustainable performance in the market. This kind of segmentation helped Tetley to develop health benefits products like green and earl gray tea. These products have the potential to satisfy consumers who gives more preference on benefits in drinking tea. By adding this segment to the existing segment there is a higher chance of increasing market share and sales. Niche market Niche marketing segmentation is an unavoidable factor in the tea business industry due to the wide Varity in the consumption of tea according the personal behaviour attitude. For example some people prefer decaf tea while some others love it. To cover these variations and satisfy the needs of all customers in the segmented market company have to follow niche segmentation. TARGETING Once the firm has identified market segment opportunities the company has to decide how many and which ones to target. Tetley have different tea product in the market and each product have different target market. Tetley kids tea is targeting kids market and Tetley decaffeinated tea is mainly targeted on people who have problems to have caffeine. For example Tetley decaffeinated tea is mainly targeted on pregnancy womens since they have to reduce the caffeine intake from their daily drink to avoid chances of miscarriage and lower birth weight of baby. The Tetley, breakfast tea, earl gray tea, peppermint tea, is targeting whole UK market.

Consumers In the tea market have different taste and preference. Each tea product is offering different benefits and flavours, so the targeting helps company to concentrate on a single segment with a particular product to satisfy their needs. Targeting is only successful when the product features or benefits match with customers wants. Tetley have different products in the market. Since they are doing mass targeting for all tea it is difficult for them to manage different taste and preference of the consumers. This research has identified targeting the customer is vital for satisfying the customers in the tea market. The right targeting can deliver high potential to generate the sales and profitability. The identification of right target market is one of the main reasons behind marketing success of Tetley.

Picture of single segment concentration The above picture shows the target market of the Tetley kids tea, Tetley is focusing on only one segment rather than whole market this help the company to satisfy the needs of the consumers in this segment.

(Picture of mass marketing) The above picture is shows the mass targeting of Tetley tea this mass targeting which help to increase the market share and overall sales of the product POSITIONING Positioning is an act of designing company offering and image to occupy a distinctive place in the minds of target market. The main aim is to develop a brand identity among customers to maximise the competitive benefits in the firm. If company is positioned the product incorrectly the market will be confused. According to manager A of Tetley tea, they have positioned their brand in medium segment in terms of quality and price. Pride and Ferrell (2010) says that Product positioning is an activity mainly concentrates on creating and maintaining a several concept about the product in the target market and in the customers mind. For proving this Tetley statement about their product positioning I have done the a survey with 120 customers of the Tetley and I have divided this 120 customers into three groups like high income people ,medium level income and lower level income people, and each group consist 40 customers. The survey includes question like,

how do you rate the Tetley product quality and how do you rate the price of Tetley products. For both of these questions i have given three options for their answers like medium, higher, low. Answers from the three groups have similarities and differences when considering one group to other. In the case of high level income customers 30 has replayed out of 40 people .The 33 medium income customers has replayed out of 40 and the survey got 34 replay out of 40 from lower level income customers . The most of the answers from the different groups are pointing that Tetley is a medium quality brand and price of the tea is also medium.

30 25 20 15 10 5 0 HIGH MEDIUM LOW GROUP A GROUP B GROUP C

(Graph is drawn based on the survey response)

Perceptual Map

(Source page number 282, contemporary marketing by David L. Kurtz, H.F. Mackenzie, Kim Snow) local retail tea products Tetley tea PG tips Jing tea

The above perceptual map showing most common opinion about various tea brand in UK market Blue colour represent Tetley tea. Most of the customers in the survey answered that it is a medium brand in the terms of quality and brand. The consumer perception about tea depends up on the value of products. Tetley has done a successful positioning of products because they want to position their product in middle segment in which customers have the same perception about Tetley tea. If customers have a different perception about the product rather than medium quality and price, it means the firm has made an ineffective communication. This research find out Tetley tea had made a strong positioning with out any confusion in the market and this had made a success in Tetleys positioning strategy.

MARKETING STRATEGY IMPLIMENTATION According to manager A of Tetley, company is implementing the marketing strategy through marketing mix which includes price, product, promotion and place (distribution). The implementation is practically done with market and to the customers. The right way of implementing marketing strategy is crucial to the Tetley because if some thing goes wrong in these four elements it will directly affect companys sales and its brand name. In UK market, Tetley has implemented the marketing mix perfectly without making any confusion in the market. This perfect implementation of marketing mix helps the company to become a market leader in the tea market. O.C. Ferrell, Michael D. Hartline (2008) point outs that the

firm implement marketing strategy by doing marketing mix which mainly focuses on product, price, distribution promotion. In this chapter each element of marketing mix has analysed separately that are following. Marketing mix of Tetley

PRODUCT

PRICE

PROMOTION

PLACE

PRODUCT STRATEGY

Tetley manager A said that product is one of the key element of implementing Tetleys marketing strategy and with out this product the company cannot achieve the objectives. Product delivers value in the name of company and it satisfies consumers needs and wants in addition to the development of a better brand identity The company have product depth in UK market it includes Tetley Assam, African, Ceylon tea, earl gray tea, Tetley red bush tea , Tetley decaf ,Tetley extra strong, Tetley peppermint tea, Tetley tea for soya and Tetley kids tea. Different varieties of Tetley tea are focusing different segment and some of the Tetley is targeting the whole segment in the UK market. Product development strategy The manager A of Tetley said that the new product development is critical in framing strategies for Tetley. Tetley normally plans the product development by introducing new product to the market and through acquisitions, for instance Tetley has recently developed kids tea and tea for soya to the UK market. In spite of this Tetley has acquired Good Earth, these both are the part of Tetley product development. By adding theses new developed products to existing product will increase sales and market share in UK market. The most difficult and riskiest part in marketing is developing a new product and firms introduce these developments of new products through innovations, product improvement and acquisition of new companies. David J Rachman (1974)

Tetley marketing research for developing new product is done mainly through online internal employees and through field research. These researches are mainly outsourced to other research companies. The Market research includes experimental methods like delivering sample tea packets to the consumers free to collect feedback. To make this process effective Tetley produces sample tea bags and give to the public and employees to bring up the feedback from people about the samples which help them to identify the likes and dislike of customer. Company is looking into the product life cycle and sales analysis to frame out product developing strategy. Tetley tea product life cycle and sales analysis is illustrated with the help of following diagrams

Product life cycle of Tetley tea

Tetley Tea Launch Sales

Product Growth

Maturity stage of product

Time

The firms make use of product life cycle for analysing the life time of a particular product in the market. Tetley tea PLC is also help full for looking the product growth and maturity. Tetley tea have a infinity life because which we can easily identify from Tetleys tea business from last 100 years of history of tea business. Tetley sells the same product from the beginning of the company that is illustrated in above diagram.

Sales Analysis Picture 1 One time purchased product Sales

Time Picture 2 Infrequently purchased product Sales replacement sales

Time

Picture 3 Frequently purchased product Sales repeat purchase sale

Time

The above three picture represents the sales analysis of Tetley. Marketers use the sales analysis at the time of new product development for identifying sales of new product. For Tetley, the forecasting of sales is critical because it enables them to frame solid future strategies which can satisfy the growing needs of the customers. The sales illustrated in picture 3 consumers are doing repeat purchase. In survey most of the customers answered that they do the repeat purchase of the tea so it is important to analyse sales as wells as product growth time in the market. For proving manager A statement about their product strategy this research has conducted questionnaire survey with 120 tea customers. This 120 tea customers is classified into three groups A,B,C .The group A represent high level income tea consumers, group B represent middle level income tea consumers and C group includes lower level income consumers .For all group of survey questions , answer points like Tetley is delivering value and satisfying consumer needs.

For this question i have given yes or no options for their replay. Most of the customers from different groups are agreeing that Tetley tea is delivering value and satisfying the

needs. Another question like what is your motive for buying Tetley tea and i have given multiple choice options. In this most of the customers are agreeing that quality is one of the main factors for buying Tetley tea. This response is illustrated with the help of following graph.

30 25 20 15 10 5 0 YES NO GROUP A GROUP B GROUP C

In the current business environment consumers are more concerned about value of product rather than other things. It is important to the tea companies to deliver value for managing the customers. The product communicates to the consumers about the brand in terms of quality and it will determine the position of the brand in the consumers mind. Product management strategy of the Tetley had made a success in the UK market that is proved in the survey that most of the tea consumers are agreeing that Tetley tea is delivering value and this product management has increased the brand value of the Tetley tea. The UK tea market is more competitive than other market so the companies are fighting to become a market leader.

In UK market the companies need to be more innovative and want to focus on new product development. The firm want to develop valuable products rather than just normal product. And this new product development strategy has proved success in the

market many times for many companies. For example apple I phone and Tetley kids tea. And adding new product to the company will generate the revenue and market share. So the product development and product management is important to Tetley to this new product development strategy helped them to achieve sustained performance in market. PRICING STRATEGY According to the manager A, pricing of the Tetley tea is crucial to maintain company performance. Tetley is currently utilizing the mixed approach in the UK market. These approaches include looking the overall cost of production and direct competitors price. In other international market it various depending up on the market situation. In the overall cost the Tetley will take account of labour cost, transportation, marketing cost and the international market price of the tea. The continuous fluctuations of tea price in the global market will not affect Tetley because the company is getting the tea from their own plant. The company is spending a lot of money for promoting their brand which is main cost factor for the Tetley facing in their pricing strategy. For example in 2010 company has spend 8 million pounds for advertising their tea products. The main internal factor that Tetley is considering while implementing the pricing strategy is the promotion of brand. On the other hand company compares the competitors price in the UK market. Tetley looks into the pricing of PG Tips and Twinnings . These companies are the direct competitor of the Tetley in UK market. Information given by the managers are supporting with V Kasturi Rangan, Benson P. Rhapiro, Rowland T. Moriarthy, J R (1995). Statements they argued is that, the companies will consider the internal cost of production and competitor prices for pricing strategies.

Depends on the market situation Tetley is adopting different marketing strategies for various segment in market. For instance, the UK market Tetley has positioned the price of Tetley Assam, Darjeeling and decaf tea just above of their direct

Competitor price: It is a premium pricing strategy while comparing to other competitors. Since Tetley have products have 33 % of market share in UK and sales of these segment brought Tetley to become the market leader in UK. But on the other hand Tetley is doing market penetration strategy for herbal tea because currently this herbal tea has only 10 % of market share in the UK. Tetley want to increase the market share so they positioned herbal tea in a low price for attacking the head of their direct competitors.

Attacking pricing strategy of Tetley herbal tea

The above picture shows the attracting pricing strategy of Tetley herbal tea to the head of direct competitors like PG tips and twinnings for increasing the sale in UK market

PRICE LIST OF VARIOUS TEA BRAND IN UK

PRODUCTS

PRICE OF TETLEY UK

PRICE OF PG TEA TIPS UK 87 PENCE (100 GRAM )

PRICE OF TWINGINGS UK 79.9 PENCE (100 GRAM )

NORMAL TEA (ASSAM, DARJILING)

91.6 PENCE (100 GRAM )

DECAF TEA 2

81 PENCE (100 GRAM )

60 PENCE (100 GRAM )

13.6 PENCE (100 GRAM )

EXTRA STRONG

45.2 PENCE (100 GRAM ) 1.50 PENCE (100 GRAM )

80 PENCE (100 GRAM ) 2.31 PENCE (100 GRAM )

82 PENCE (100 GRAM ) 1.88 PENCE (100 GRAM )

GREEN TEA

The above box shows the price of the Tetley tea in the UK market and their direct competitors price. This is done for clarifying the manager statement about their various pricing strategy for different product .Competitor pricing is collected from different retail store. if we compare the price of Tetley Assam tea as per the above information with competitors Assam tea price ,Tetley positioned their price just above the others in market. But in the case of Tetley herbal tea they have positioned the price lower than their competitor. The theory strongly supports that Tetley pricing strategy is well organised and enables Tetley to became a market leader.

In the survey i have given one question about evaluating pricing of Tetley .The question was how do you rate the Tetley product price?, and for answer i have given three options like low, medium, high. The survey has conducted with 120 people and 97 have replayed and

most of the answers pointed that Tetleys pricing is medium. The answers from the three groups are illustrated with the help of a graph that is follows;

30 25 20 15 10 5 0
ED IU M H IG LO W H

GROUP A GROUP B GROUP C

(Graph is illustrating consumers answers in survey about pricing of Tetley tea)

This research found that about pricing, people have different perception. One of the main reasons for this common answer medium pricing can be the comparison of price with other brands in the market.

Pricing of the tea products is critical to the companies in the UK market because these pricing strategies have the potential to increase sales as well as reducing the sales in some occasions. Once the brand has a strong presence in the market then the company can increase price, it has proved in the UK market for example SONY computers. Tetley is maintaining the price of Assam, Darjeeling, tea just above of the competitors because Tetley is the market leader with 33 percentage of market share in UK market. They dont need to cut down the price. If they cut down the price there is a chance of misunderstanding about quality. So these pricing strategies have the power to maintain brand image. But on the other side in the UK market Tetley herbal have only 10 percentage market share. They are implementing price penetration strategies to get maximum potential to increase the sales and also to have capacity bring the customers from the competitors. So this pricing has made a major role in making Tetley the market leader.

PROMOTIONAL STRATEGY According to manager A, promotion is one of the key strategies for Tetley tea. Tetley has spent 14 million pounds in 2010 for promoting their products. Tetley implement promotional strategy through a promotional mix and it consists of advertising , public relation, sales promotion ,and direct marketing. Tetley is making use various modes of channels like online , TV, news paper ,bill board and store . This effective promotion strategy helped Tetley to gain market share from PG tips. This strategic promotion activity has increased Tetley market share to 33.8 % while comparing the PG tips 32.1% and twinnings 26.6% in the UK market. Tetley do promotional strategy to push the product in market and to communicate with market about how to make a perfect cuppa and its benefits. According to David .J. Rachman (1974), state that the firms do the promotion for communicating to the public about their product and company. Implementation of promotional strategy through advertising, personal selling, sales promotion direct marketing, store display and through public relations. Communication mix of Tetley UK

COMMUNICATION MIX OF TETLEY

ADVERTISING

SALES PROMOTION

DIRECT MARKETING

PUBLIC RELATION

Picture of communication mix

Advertising Manager A point out that Tetley is doing advertisements by using different modes like TV, online, news paper, billboard, etc .The company has spend 9 million for advertisements . Tetley has outsourced the advertising creation task to Dare which is a famous advertising agency in UK. Internet is key advertising tool of Tetley, for example Tetley tea folks are popular in face book, and in YouTube. Sales promotion The manager A of Tetley says that, they do the sales promotion to boost business capabilities; which is a short term strategy for the Tetley. Currently Tetley is doing various sales promotion like 2 for 1 tickets to Alton towers, chance for win a holiday to different designations ,win a T shirt ,and Tetley discount coupons . In 2010 Tetley has introduced coupons worth 3 million for targeting 8million customers and for pushing the herbal teas in UK market.

Direct marketing Manager A stressed that Tetley is doing direct marketing using internet as a part of direct marketing. Tetley send promotions direct to the customers via e mail.

Public relation Manager A said that public relation is very important to the Tetley tea because now a days people are more concerned about health and social responsibility. Tetley is promoting healthy life style and the benefits of taking a cup of tea .Tetley joined with British heart foundation for targeting 1.6 million people to raise fund for helping heart week people and they have a rain forest alliance to protect environment.

9 8 7 6 5 4 3 2 1 0

ADVETISING

SALES PROMOTION DIRECT MARKETING ADVETISING SALES DIRECT PROMOTION MARKETING

PUBLIC RELATION

PUBLIC RELATION

The graph shows communication cost Tetley UK in 2010

For evaluating the effectiveness of promotional strategy i have given some question about promotions of Tetley in the questionnaire. From that most of the customers have received and seen the Tetleys promotions along with this, 55 percent of the consumers answered that Tetleys promotion motivates the consumer to buy their products.

NO YES

(This diagram shows opinion of the tea consumers about Tetley tea) The above diagram shows 55 percentages of the consumers are motivated by the Tetley promotion to buy their products from this we can infer that Tetleys promotional mix strategy is going well in the market and it also indicates that half of the business is generated through

promotion. By doing this effective promotional mix the firms can increase market share and they can cultivate an emotional attachment towards the brand. it has proved in fast moving consumer sector for example nestle coffee.

PLACE OR DISTRIBUTION STRATEGY According to manager A Tetley have an efficient and effective distribution channel all over UK. The main distribution is done through retailers it includes UK office direct, Tesco, Sainsbury, Asda etc. Company is following a vertical distribution system. Tetley have an alternative online distribution. This channel serves mainly through Tetley website. Company have a strong and long term relationship with channels. Tetley encourages motivation relationship by offering discounts and offers to their channels. For example Tetley will give promotional merchandise product like cups , T shirt , point of sale displays , win a chance for Jaguar and company will give discount vouchers which can be use in different store.

Channels of distribution

The above picture shows various channels of distribution in Tetley UK .The Company have main three distributions channel and it is really important to fast moving consumer goods market. if the company is keeping one distribution channel, the company cannot make sure the availability of product in the market. This is because geographically the country is big and if the company is keeping only one distribution channel the distributers have more barging

power .So it important for the companies like Tetley to keep multi channel distribution system for delivering product effectively in the UK market. Vertical distribution system of Tetley

Tetley is mainly following vertical distribution system that is illustrated with help of the above diagram .This vertical distribution is the most cost efficient and effective for delivering goods. Through this channel system the company can increase the sales since in UK retailers have high potential for generating sales. For placing the tea in the retail store Tetley have certain rules that are displayed in the following box

CONTROLLING THE MARKETING STRATEGY Tetley control the marketing strategy by evaluating the performance in terms of sales and market share .But mainly depends up on Tetleys marketing objectives .Company have different marketing strategies once it is implemented they will control depends on the performance of the marketing strategy. It is important that Tetley need to control the marketing strategy because the company has spend a lot of cost for developing and implementing the strategy. So they should evaluate the performance in the market whether it is bringing any potential or not. This marketing strategy controls and helps Tetley to choose

an alternative, if the implemented marketing strategy is not doing well in the market . So this research is strongly supporting the way that Tetley do controlling and strongly recommending that in the competitive business environment. Barriers for implementing Tetley marketing strategy The manager A says that in some cases Tetley has faced some problems in implementing the marketing strategy For example for implementing the promotional coupons because the major problem in the coupons Tetley has is the store is remedying the coupons for other products not for the Tetleys product. And other major problem is that Tetley has faced the regulation of advertising standard authority for translating the health benefits. Tetley has recently withdrawn the advert of green tea from the UK market and restructured it with a new face. It was a barrier to Tetley for implementing the advertisement strategy. These barriers can create a lot of cost problems to the company because in the UK tea manufacturing companies are paying huge amount for advertising and promotions. So this kind of barriers will reduce the profit and chance for failing marketing strategy. It is important to the companies like Tetley to identify these barriers before implementing the marketing strategy so that the company can reduce the cost.