Group Presentation

2.  Introduction - Vinothini
 SWOT Analysis - Asjad
 Objectives - Dhananji
 4P’s - Thilini

3.  1991 Pepsi and Lipton sign a 50-50 joint
venture
 Strengthen the Ready To Drink (RTD) tea
market in North America and Canada
Market

4.  Renew agreement to add 11 new countries
 8 in Europe
› Germany, Italy, France, Netherlands,
Switzerland, Austria, Belgium , Portugal
 Korea, Taiwan, South Africa
 These countries had a combined system
sales of €300m in 2006 (www.unilevers.com)

5. Lipton Brand offers international
consumers a portfolio of convenient
beverages to address a wide range of
needs - Michael White, CEO of PepsiCo
International and vice chairman of
PepsiCo

6.  Global Sales of RTD Iced Tea estimated
at $23b
 French Annual Iced tea consumption up
by 3.2lt per person 2002
 Germany up to 6.5lt per person 2002
 Japan per capita consumption nearly
60ltr per annum
 Unilever claims Lipton market leader in
16 billion liter global RTD Tea Market

7.  Unilever
› PepsiCo distributes and markets Lipton Ice Tea in more
than 60 countries where PepsiCo has established its
corporate presence
› Pepsi Co will move Lipton brand into new markets
and new distribution channels
› Pepsi has a strong Customer Relations network
 Pepsi Co.
› Half share of profits to Pepsi Co in selling an
established brand
› Bottling of Iced Tea is done in Franchise bottling plants
› Unilever will bring the brand, knowledge of the tea
industry and a substantial research and development
capability to the JV

10. Competitors Growth %
Pepsi Co./Unilever’s Lipton 152.6%
Coca cola/Nestle Nestea 57.1%
Snapple Beverages’ 101.1%
Competitor Price per 20 oz
Lipton Brisk Ice tea $1.50
Nestea Lemon Sweetened $1.50

11.  Arizona
 Snapple
 Nestea
 Shin Shii
Since Arizona, Snapple and Shin Shii are
marketed to different consumer segments the
biggest competitor is Nestea where Nestle and
Coco Cola formed a partnership which is also
has global distributor just as Pepsi-Lipton
partnership.

13.  Market Leader: Lipton well established brand name –
Claimed as 3rd largest brand
 Strong Financial Backup from Both companies
 Unilever has a strong R&D department with extreme know-
how of tea
 Pepsi’s Strong customer relations, large network and
distribution channel
 PepsiCo is a major distributor in the United States and
Canada
 Strong brand image and brand awareness.

14.  Products’ high pricing - Between US$0.99
and $1.59 per 20oz bottle
 Lesser focus on product orientation

15.  Further White-space markets
 Tea industry growing globally
› Asia Pacific region forecasted to grow at
3.6% through 2015 (dailymirror.lk)
› India Consumption to $7.2bn 2016
(teatrends.com)
 Pepsi/Lipton JV to other beverage
markets

16.  Other beverages – Health issues
 Rising rate in Literacy
 Baby Boomers in Asian Markets
 More creative RTD Iced Teas in existing markets
 Consumers’ preference to RTD convenience

17.  Competition with Coca cola/Nestle
 Economic downturns in venturing new markets
 Health concerns with new research data on
tea and coffee
 Fresh Fruit juices being substituted for Iced teas
 Currency fluctuations during Translations

18.  Saturation of hot beverage markets
 Inflation in different countries
 Political unrests and war situations in
White Space markets

19.  To inform about the introduction of Lipton
Sparkling green tea in the United Dairy Farmers
central Ohio which is the test market are.
 To increase 95% recall awareness of the brand
among consumers in the test market are.
 To create familiarity with the benefits of
consuming the green tea in the test market
area.

21.  Product
Lipton Sparkling green tea, a ready to
drink blend of green tea with sparkling
water and fruit flavors.
 Price
Lipton-Between US$0.99 and $1.59 per
20ounce bottle
Arizona-$ 2.00 range per 20 ounce

22.  Place
Through the joint venture
agreement, PepsiCo would distribute Lipton
tea products in more than 60 countries.
 Promotion
Lipton tea and bike town promotion in 2006
Win a smart car promotion in 2009

24.  Aggressive Marketing Strategy
 Improve Packaging
 Improve Shelf Presence

25.  Long-Term Goal: World Number One
ready-to-drink ice tea
 Product Innovation