Principles of Modern Marketing

Running head: MARKETING PRINCIPLES
Marketing principles
Name of the student
Name of the university
Author Note:

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MARKETING PRINCIPLES
Executive Summary
The report is based on the launching of a new tea product in Australia. The product selected is
Lipton tea manufactured by Unilever Company and sold in Australia through the different
departmental stores and supermarket stores. The report starts with a short introduction and a
rationale for the introduction of the product in the Australian Market. It continues with the
market segmentation of the product and then ends in the construction of a marketing mix. The
concluding part of the assignment provides a detailed view of the different results gained from
the report.

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Table of Contents
Introduction......................................................................................................................................4
Company Summary.........................................................................................................................4
Product Segment Summary.............................................................................................................5
New Product Rationale....................................................................................................................5
Target Customer Description...........................................................................................................5
Marketing Mix Strategy...................................................................................................................6
Product:............................................................................................................................................6
Conclusion.......................................................................................................................................8
Bibliography....................................................................................................................................9

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Introduction
The following report has been prepared to establish a new line of tea product that is sold
in the large supermarkets of Australia, especially Coles and Woolworths. The product that has
been selected in the following project is Lipton Tea which is the one of the best products of
Unilever Company. The product already has its presence in the Australian market but the aim of
the company is to ensure the modification of the product into a more sophisticated and effective
brand. The modification of the following company will help the product to increase its sales and
compete in a totally new segment of the tea market of Australia.
Company Summary
Unilever is a British-Dutch transnational consumer goods producing company that is
headquartered in Rotterdam, Netherlands. The products of the company vary from a lot of
different ranges including food and beverages, cleansing products, personal care products to
other kind of different products. The large number of brands owned by the organization cannot
be just listed down at one go. The company is a dual listed public limited company and was
founded in the year 1930. Headquartered in London and Rotterdam, the annual report of the
company shows total revenue of US$62.222 billion with a net income of more than US$6.9
billion. With a total of more than 169,000 employees, the company is termed as one of the
largest global employers. Some of the main products of the company include the likes of the
Axe/Lynx, Lipton, Lux, Sunsilk, TRESemme, Rexona, Magnum, Vaseline and many more as
such (unilever.com, 2018).

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MARKETING PRINCIPLES
Product Segment Summary
As mentioned earlier the following report has discussed the modification of the Lipton
brand of tea. Unilever will launch the Ayurvedic flavor of the tea in the Australian market which
will initiate a totally new market of flavored tea in the country. The sales of Lipton Ayurvedic
Tea are expected to be initially a 10000 units per month which will initially rise to 40000 units
after a stable period of 5 months. The major competitors of the brand will be the Tetley range of
Ayurvedic Tea by Nestle (Tanner & Raymond, 2015). Though Lipton occupies a great market
share in Australia, the new products of Nestle has been quite a revelation in the country.
New Product Rationale
The rising number of health problems added with the rising amount of chronic diseases
has made the population of Australia quite vulnerable. The introduction of the new line of
Ayurvedic Tea product will just act as one of the products that have a large range of medical
benefits. Consuming Ayurvedic Tea is being strongly recommended by the Doctors. Therefore
the decision to introduce the modified version of Lipton tea comes at just the right time. Apart
from this the rising growth of Nestle products in the form of Tetley tea can also be cited as one
of the reason for the introduction of the particular kind of modified tea (unilever.com. 2018). The
marketing environment is just suitable enough for the introduction and the launch and growth of
the product in the Australian market.

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Target Customer Description
The target market of the proposed product depends on different types of factors including
demographic, geographic and psychographic factors. The demographic factors for Lipton
Ayervedic Tea will be the income, time of purchase, customers purchasing the product, average
age of the people buying the products and many more as such (Armstrong, et al., 2015). The
product is especially designed for the middle and high range income earning people and the
average targeted age for the particular product will be between 32 to 65 years. The product will
be available at all the geographical stores in Australia irrespective of their size and annual
turnover, However the company has decided to abstain from directly entering the rural
supermarket segment as it will be mainly based on the assess of the success of the product in the
market (Tanner & Raymond, 2015). The product will surely be liked by the people who like to
stay fit and healthy especially after the age of 30. Thus the medical benefits will surely play a
great pshycographical part in the success of the product in the market of Australia.
Marketing Mix Strategy
Unilever being one of the top marketers in Australia has to provide a unique selling
strategy that helps to separate them from the competition by offering a special benefit to the
customers on Lipton. The company wants to provide a unique flavor to their customers of the
same range of tea that they regularly buy from the supermarkets. The marketing mix strategy has
been created by the management of the company keeping in mind the specific range of benefits
(Khajavi, et al., 2015). The following strategy involves the pricing, advertising as well as the
distribution strategies that will be used by the organization to promote the new brand in the
Australian Market.

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MARKETING PRINCIPLES
Product:
Lipton is one of the most popular and preferable brand of tea in Australia. Being a t6ea
brand the product has a very strong line in the tea segment only. The company has released
different types of flavors of the following brand in the market which has been helpful to extend
the brand portfolio of the product (Goworek, McGoldrick & McGoldrick, 2015). The new brand
named Lipton ayurvedic is basically based on medical characteristics and thus will have a unique
market in Australia. The tea will offer large scale medical benefits and will be essential for the
consumption of different individuals especially for the middle aged people. A market survey of
the brand has generated a positive response and thus it suggests the popularity of the brand once
it is established in the Australian market (Di Benedetto, Calantone & Brioso, 2015).
Price:
Price is one of the main factors on the success of the following brand in the Australian
market. The large consumption of tea in the market is one of the main positivity for the product.
The presence of large scale supermarkets like Woolworths, Coles, IGA makes it a tough choice
for the company to select the price. This is because the organization has to ensure that the price
are kept in line with the different policies of the supermarkets to provide the best value for all of
the products they sell to their customers (Cook, 2016). The targeted segment of the Lipton
Ayurvedic tea will be the upper and middle class segment of Australia which suggests that the
price will be a standard one to meet all the different needs of the customers, the company as well
as the sellers.
Place:

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MARKETING PRINCIPLES
The place is one of the most important considerations before the launch of the modified
Lipton tea in the Australian market. The marketing of the following product has been done in
different supermarkets and large departmental stores of Australia. The places for the marketing
have been select6ed after a thorough revision of the different market segments and the thorough
revision of the different characteristics of the market (Bouncken et al., 2018). The products will
be initially available in all the different supermarkets namely Woolworths, Coles, IGA and many
more as such. A number of distributors amounting to more than 400 have been fixed to manage
the distribution and supply chain network of the following product.
Promotion:
The promotion of the brand will be exclusively performed by a selected group of
marketing team in Australia. A number of different marketing and promotional technologies will
be applied in the course to promote the product among the target segment and to make the
customers have a clear and transparent idea about the price, place of availability and benefits of
the product. The promotional technique will use the likes of television, online and social media
promotions which are believed to be the best forms of the modern forms of marketing and
promotions (Chang & Taylor, 2016).
Conclusion
The following report has been successful in providing the detailed elements that needs to
be considered before the launch of a product in the market. The description of the different
marketing features like marketing mix and market segmentation of the product will surely help to
make the report more compact in nature. A thorough analysis of the report helps the readers to
analyze the steps and marketing initiatives involved in the launch of a product in the market.

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Bibliography
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Bouncken, R. B., Fredrich, V., Ritala, P., & Kraus, S. (2018). Coopetition in new product
development alliances: advantages and tensions for incremental and radical
innovation. British Journal of Management, 29(3), 391-410.
Chang, W., & Taylor, S. A. (2016). The effectiveness of customer participation in new product
development: A meta-analysis. Journal of Marketing, 80(1), 47-64.
Cook, A. G. (2016). Forecasting for the pharmaceutical industry: models for new product and
in-market forecasting and how to use them. Gower.
Di Benedetto, C. A., Calantone, R., & Brioso, R. R. (2015). Models of Successful Industrial
Product Launch: What Drives the Development Process?. In Proceedings of the 1997
Academy of Marketing Science (AMS) Annual Conference(pp. 204-204). Springer, Cham.
Goworek, H., McGoldrick, P. J., & McGoldrick, P. J. (2015). Retail marketing management:
Principles and practice. Harlow, UK: Pearson.
Griffith, D. A., & Yalcinkaya, G. (2018). 13. Global product launch: a perspective on past,
present, and future research. Handbook of Research on New Product Development, 267.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.

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Khajavi, S. H., Partanen, J., Holmström, J., & Tuomi, J. (2015). Risk reduction in new product
launch: A hybrid approach combining direct digital and tool-based
manufacturing. Computers in Industry, 74, 29-42.
Tanner, J., & Raymond, M. (2015). Principles of marketing. University of Minnesota Libraries
Publishing.
unilever.com. (2018). Retrieved from
https://www.unilever.com/brands/food-and-drink/lipton.html