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Lipton

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Marisol Gonzalez

on 4 October 2012

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Transcript of Lipton

Tatiana Cortes Cardona
Marisol Yohana Gonzalez Fonseca
Paola Andres Rodríguez Obregón
Laura Alejandra Rojas Sierra
David Ospina THE ICED TEA SPECIFIC SECTOR LEGISLATION MARKET SIZE Production Distribution Tea in Colombia Porter’s Forces Entry Barriers Iced tea is a product that is becoming mass consumption because the people are preferring it or substituting soft drinks, juices and waters Economies of Scale Capital Requirement The iced tea production requires companies with plants and distribution logistics systems that permit manufacturing the product and distribute it to any part. Brand identity and differentiation One of the biggest challenges imposed in the market, is the selling product and brand positioning in the mind of the customer, the brand plays a key role, as people choose brands that known and successful in the market Concentration
(and organization) "In 2005, only 2% of the population drank tea ready. Today, according to Invamer Gallup, 30% of consumers of soft drinks has consumed at least once a month " Switching cost for clients Substitutes The cost for customers to switch from one brand to another to another is minimal because today all companies have a competitive price and similar with respect to competition The iced tea was born as an idea of giving people a refreshing drink while healthy for the body, there is always tried to show the benefits that often do not offer their substitutes, such as soft drinks, juices, malt and water. •DECREE NUMBER 1601 OF 1984

•DECREE NUMBER 333 OF 2011

•DECREE NUMBER 60 OF 2002

•DECREE NUMBER 11 OF 1997
For selling and buying, the product is charged with a 16% of the product price thanks that the product is not a necessary product for all population as milk for example. IVA
DUTY OR ARANCEL At the moment of importing the product, the product is charged depending on the quantity of the product and the location from where the product was imported According to the global market size, tea has 12% of the global beverages market being near superior than fruit beverages and bottled water; also being near to milk, 2coffee and carbonated soft drinks as Pepsi for example Now we are going to explain a little about the consumption of tea in Colombia representing an important increase of it consumption moving the product into an important place in the non-alcoholic beverage Colombian market. In five year, the consumption of tea move from 0,1 bottles to 1,2 bottles. In the first 4 months of the year, the total importation of the product sum up 411 tons, near the amount calculated for the total year of 2000, also, is important to mention that also in 2011, the external purchase sum up to 876 tons. COMPANIES IN THE ICE TEA MARKET In Colombia, is important to notice that the brands which have the control around the world are not the same as the ones that have control on Colombia’s market. If we enter to Exito, Carrefour, Carulla and other including small shops; we are going to find that brands as Fuze, Jump and Spring had not the same market share as those have in the world. MARKETING STRATEGY MARKETING GOAL To boost the beverage sales and distribution
To get a higher market share among the other brands and main competitors.
To make the brand recognized on Top of mind of Colombian people Differentiation-
Segmentation MARKETING MIX In terms of performance, there are a variety of substitutes such as fruit juices and bottled water; those provide people the option of drink a healthy beverage. Also, other beverages like fruit juices made in house or the water that is stored in a thermos at home are most cost effective and also provide the option of healthy beverage Price / Performance In Colombia, people tend to buy products from a recognized brand over they have some kind of knowledge. In Colombia, customers are more likely to remain loyal to a brand. The industries should create a very good image in the country in order that people trust in the brand. Buyer Propensity Product Price Lipton goes primarly for levels 3, 4, 5 and 6; with and average price of $2000
Place Promotion North America, some countries of Asia, Meddle East and Europe; but its also distributed in Colombia, Venezuela, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua and Panamá •Meaningful
•Believable
•Distinctive •Beverage Promotion
•Sampling
•POS design and development
•Media
•Loyalty Campaigns Porter’s Forces Suppliers Unilever has to analyze if their are more or fewer suppliers than firms in this industry. Unilever must create a strong relation, with suppliers with a big capacity of production. Concentration It very important build strong and lasting relation ship with suppliers since the beginning . Switching suppliers is a critical process because it can produce some negative effects.Changing supplier creates a lot of costs, transactional and administrative costs such as the creation of a new contract. Switching costs for companies The incomes supplied to the company are very important because of them, the company can produce iced tea and when the distribution is finished, the iced teas are distributed to different countries Importance of material supplied to the company In 2010 , 411 tons of tea, close the volume being bought for the whole of 2000. And in 2011, foreign purchases of this product reached 876 tons. This growth in imports figures shown by Dane is perhaps the clearest sign of how the product has gained ground in the Colombian market. Porter’s Forces Buyer Porter’s Forces SUBSTITUTE PRODUCTS Porter’s Forces RIVALRY Growth Rate of Industry The iced tea industry has a high percentage of fixed costs, this gives the industry a weak and vulnerable position in the market. This high percentage of fixed costs allows them to adjust to market changes in a very limited and slow way. Fixed Costs and Overcapacity Number and Size of Competitors Multinationals strong in this category , such ac Coca Cola, Nestle and Pepsi have portfolios that will grow as the market demands it. Fixed costs and overcapacity The iced tea industry has high percentage of fixed costs , this gives the industry a weak and vulnerable position in the market. High strategic stakes Need for innovation All the companies in this
industry has the need of innovating. Switching costs Substitute inputs and differentiation Every suppliers produces inputs with different quality. In this way the suppliers has to be able to differentiate their products in some way. Importance of material supplied to the company The incomes supplied to the company , because those are transformed and distributed to different countries. High stakes sacrifices profitability for expansion. Companies with high market share may feel threatened by competitors seeking to reduce their market share. Proprietary Technology Access to Suppliers and Materials Importance of Product client in Volumen Companies like Unilever, Nestea or Postobon not responsible for selling the final product to the consumer but it used to intermediaries that distribute or resell D Differentiation "Lipton revitalizes your body and your mind" TRENDS
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