Lipton Iced Tea is a beverage launched by Lipton and a collaboration with PepsiCo. It is a form of tea which is iced down if drinking in a food outlet, or chilled if buying from a store. While Lipton is an established brand within the tea market, PepsiCo has a world-known presence in the soft drink industry. As tea has become more popular in countries such as the US, it has become necessary for tea brands to offer a wide variation to suit different consumer needs. Lipton has developed into a brand that is known for the widest variety and for being the most innovative
Introduction.
Tea is both a household and café icon throughout the world, being savored for centuries around the world from India to the United Kingdom. Tea was an expensive …show more content…
The category in which a business falls into is based on a potential business’s proposed product to market development rate. For example, this can include the entrance into a new market and innovative product developments. Lipton Iced Tea would be categorized as a Market Prospector. An ideal market prospector is a business which operates with a broad domain in the product market which frequently undergoes redefinition (Mullins, Walker, & Boyd Jr, 2012). Lipton consistently expands their product range with new flavours and types of drinks, as seen by the new carbonated range. Furthermore, prospectors are seen as a single strategic category. Due to the product or market developments being the dominant factor in a business’ strategy, there is little to no consideration about the competition in any market until it has become established and competitors begin to enter (Mullins, Walker, & Boyd Jr, …show more content…
As a result, it is critical for Lipton to retain a competitive marketing strategy in order to stay in their market leader position.
According to Dawar (2013), the new big concept for strategy is through the use of Downstream Competitive Advantage. It is the idea that competition within a market has shifted downstream and a firm’s unique assets – generally a unique selling point – and capabilities no longer guarantee a competitive advantage for a business as competition would just replicate their own version (Dawar, 2013). As seen from Graph 1, an Upstream Competitive Advantage focuses on making the unique difference before a product is sold as opposed to the Downstream theory, where marketing is done once placed on the shelves to gain the competitive advantage. Nowadays, it is all about the brand and its positioning. In terms of Dawar (2013), downstream assets are worth significantly more than a business’s upstream assets, in which brand-loyalty will always take precedence in the market today.
Lipton today takes both upstream and downstream activities and merges them together to create a beneficial and highly competitive marketing strategy:
Introduction.
Tea is both a household and café icon throughout the world, being savored for centuries around the world from India to the United Kingdom. Tea was an expensive …show more content…
The category in which a business falls into is based on a potential business’s proposed product to market development rate. For example, this can include the entrance into a new market and innovative product developments. Lipton Iced Tea would be categorized as a Market Prospector. An ideal market prospector is a business which operates with a broad domain in the product market which frequently undergoes redefinition (Mullins, Walker, & Boyd Jr, 2012). Lipton consistently expands their product range with new flavours and types of drinks, as seen by the new carbonated range. Furthermore, prospectors are seen as a single strategic category. Due to the product or market developments being the dominant factor in a business’ strategy, there is little to no consideration about the competition in any market until it has become established and competitors begin to enter (Mullins, Walker, & Boyd Jr, …show more content…
As a result, it is critical for Lipton to retain a competitive marketing strategy in order to stay in their market leader position.
According to Dawar (2013), the new big concept for strategy is through the use of Downstream Competitive Advantage. It is the idea that competition within a market has shifted downstream and a firm’s unique assets – generally a unique selling point – and capabilities no longer guarantee a competitive advantage for a business as competition would just replicate their own version (Dawar, 2013). As seen from Graph 1, an Upstream Competitive Advantage focuses on making the unique difference before a product is sold as opposed to the Downstream theory, where marketing is done once placed on the shelves to gain the competitive advantage. Nowadays, it is all about the brand and its positioning. In terms of Dawar (2013), downstream assets are worth significantly more than a business’s upstream assets, in which brand-loyalty will always take precedence in the market today.
Lipton today takes both upstream and downstream activities and merges them together to create a beneficial and highly competitive marketing strategy: