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CB2601 Marketing Vita Lemon Tea

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Marketing Marketing

on 18 April 2013

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Transcript of CB2601 Marketing Vita Lemon Tea

Lee Siu Ki Ricky 53022282

Hung Tin Ming 53019020

Chan Ying Wai 53024957

Chan Sze Wai 53029744

Leung Yuk Yin 53039160

Lam Wai Lung 53032183 Marketing Plan: Vita Lemon Tea Environmental Analysis Consumer Analysis Recommendation Company Analysis Agenda 1. Company Background 2. Situational Analysis 3. Recommendations Company Background Year of establishment: 1979 Founder: Dr. Lo Kwee-Seong Different flavors
e.g. Low sugar, SUPERICY, Ceylon, LimeLemon, Honey Different type of packing
e.g. Canned, Tetra-pack, In bottle. P.E.S.T. Analysis Political environment Economic environment Social environment Technological environment Opportunities World’s freest economy
→ low and simple tax (16.5% to corporations) Well-developed legal system
→ protect copyright, promote fair competition The 2013-14 budget
→ 75% of 2012/13 profits tax will be waived
subject to ceiling of $10,000 per case Threats Strict inspection of product safety
→ Centre for food safety Arrangement of minimum wage
→ $28 to $30 Opportunities High-income local residents
→ above 70% of people earn $10000 or above
monthly Increasing GDP growth rate
→ GDP rise 1.4% Threats Opportunities health conscious people
→ Care for health and then choose ‘light’ lemon tea Threats Opportunities Develop different taste – R&D
→ e.g. cool lemon tea Renewed promotional displays in Vita lemon tea
→ New advertisement Threats Saturated market No significant difference among competitor’s products Product Package:
- Plastic bottle
- Cans
- Boxes Size:

- 250ml (box)
- 375ml (box)
- 500ml (bottle)
- 6 boxes per pack for family Other feature:
Low-sugar lemon tea
-->health conscious customers Price HKD$3.5 – $6 per box HKD$6-10 per bottle Reasonable and affordable Distribution network Intensive distribution network 1) Supermarket, Convenient shop, grocery shop, restaurant SWOT Analysis Strengths Weaknesses Opportunities Threats Well-known brand name
→ In 2011-2012, VITA Lemon Tea won the “TOUCH Brand” Award and “TOUCH Brand”
Award from East Touch
→ VITA Lemon Tea was awarded 7-Eleven’s “Outstanding Sales Performance Award”
and “Top Brands Award” respectively Invests heavily on advertising Enjoys a leading position Different kinds of fashionable package Strong online promotion Suit for different income groups Difficult for new innovations VITA Lemon Tea achieved strong year-on-year growth in targeted market
→ Hong Kong operation recorded solid sales
growth of 9% Efforts in driving key account distribution for both in-home and out-of-home markets Mainland China market becomes
more challenging Competitor Analysis Industry Perspective Hi-c Lemon Tea Orange Juice Coca Cola Apple Juice Chrysanthemum Tea Soft Drinks Youngsters
→ Advertisement(target on Youngsters) Major segment Buying behavior Few difference compare with the other brands Low involvement
→ habitual buying behavior Advertisement in TV and social media Low cost Frequently buy 1. What : Vita lemon tea
2. Where : school tuck shop, snack bar, convenience store (circle K, 7-11, vingo), vending machine
3. How much : $4-$8(depend on different pack and district) Cultural factors The trend of healthy (All kinds of people)
--> low sugar lemon tea The need of youngsters(youngsters) Social factors Group of people
-Pop star
- MC Jin http:// www.youtube.com/watch?feature=player_embedded&v=HbrOrwdgp2E Opinion leader Personal factors Lifestyle

Drinking lemon tea is fashionable,stylish and energetic Psychological factors Motivation
→ feeling thirst(especially after doing exercise) Smart phone trend for promotion Mix strategies Product Price Place Promotion Different sizes drinks
- 1 L size lemon tea
- Mini size e.g 100ml per box Natural and healthy drinks
- No artificial lemon tea
- Sugar free Favour
- Lemon Green tea
- Lemon Pu'er tea Product bundle pricing
- Buy more, price cheaper Location pricing
- Different price at different place e.g. more expensive in Ocean Park Factors affecting pricing decision: External factors
- Competitive condition Internal factor
- cost considerations Setup a new distribution channel
- Sponsor the restaurant and encourage selling Marketing Objectives Marketing Strategies To keep the leadership position

To further increase 2% market share Marketing Segmentation:
Age & life style

Marketing Target: Differentiated

Positioning statements
To all drink consumers who care both taste and health, Vita lemon tea is the drink which provide various taste for different people in a reasonable spending. Keen competition with other drinks companies Increasing inflation rate
-->cost of material increase,
-->distribution cost increase price sensitive
→ Compare the price of the same products HK structure of population
small family size
--> 6 boxes lemon tea per pack Market Perspective Crystal Spring Lemon Tea Lipton Lemon Tea Nestea Lemon Tea Rising raw material and labor costs limited size
--> lack of big size for party / family original taste lemon tea
--> too sweet Environment analysis
Company analysis
Consumer analysis
Competitor analysis
SWOT analysis 6 months plan Positioning and Market segmentation
Marketing Calenda Target Market Demographic segmentation:

Sell widely in HK, Macau, Mainland China, Australia, New Zealand, North America and Singapore Target customers:

youngsters Positioning Sell superior quality product at reasonable and affordable price Stylish, innovative and energetic image Promotion TV advertisement Public relation:

- Social responsible company
- Make donation to charity e.g Oxfam, UNICEF Moving showroom Make lemon tea more fashionable
Represent Hong Kong's drinks Where:
Time square, Festival walk, Grand century place and Sha Tin Central Specific event:
McJin rapper Souvenir:
Original and new taste lemon tea sample Create mobile app Promote in innovative ways
-->scan QR code printed on package of lemon tea
--> lucky draw 1.Game competition weekly
-> High scores get prize 2.Photo competition
-> Taking the most creative photo with vita lemon te 3.Writing competition Problem:
Low quantity of downloading Solution:
Giving coupon and even free products by QR code in app e-advertisement Increase celebrity Facebook:
Event, competition and lottery Giving prize to a person who design a slogan getting most 'likes' Youtube:
New song, RPG game and video competiton Creat a story to make a RPG game Situational
Analysis Major Competitors
Swire Coca Cola Hong Kong ltd

- a leading soft drink manufacturer in Hong Kong

- operates 17 production lines

- produces more than 60 million unit cases annually. Hi-C lemon Tea Q & A 2) Vending machines
- schoools
-sports centers
-resraurants many artificial addictive
- artificial colour
-artificial sweet taste
--> not good for health -->Reduce financial cost --> increase cost of lemon tea -->increase purchasing power keen competition -->perfect mixture of red tea and lemon Taste:
ceylon lemon tea
light lemon tea
lime lemon tea
super ice lemon tea
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