Consumer Behavior Analysis of Lipton Green Tea

This report analyzes the consumer behavior of Lipton Green Tea, highlighting the factors affecting customer loyalty and repeat purchases. The report explains the preferences and factors regarding the behavior of the consumer regarding the process of the decision making while the purchase of the product. The critical analysis of the report demonstrates the perception, the behavior, the attitude and the perspectives in relation to the FMCG product brand which has recently shown decline in the rate of the customer loyalty and low rate of the repeat purchasing in the history of the purchase. Strategic recommendations are provided to improve brand value and customer satisfaction.

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Name of the Student
Name of the University
Author Note

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Executive Summary
The selected topic for this particular asgnment is the FMCG product, the Lipton Green Tea.
The report explains the prefernces and the factors regarding the behavior of the consumer
regarding ther rocess of the decision making whle the purchse of the product. This
assignment targets to highlight the understanding of the application of the concepts reated to
the consumer behavior and the theories for the analysis of the facts that has been gathered
from the survey analysis and the video regarding the current maketing strategy and the
communication of the rand of the Lipton green tea. The critical analysis of the report
demostrate the perception, the behavior, the attitude and the perspectives in relation to the
FMCG product brand which has recently shown decline in the rate of the customer loyalty
and low rate of the repeat purchasing in the history of the purchase. The report illustrates the
understanding of the problems conneted to the nature of the behavior of the consumer
including the class, the influence, the attitudes, the procedure regarding the personal
purchasing decision making. The assignment aims to demonstrate the understanding and the
implementation of the nature of buyers as per the analysis illustrated in the previous
assessment.

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Table of Contents
Selected FMCG Product overview.................................................................................3
Critical Analysis.............................................................................................................3
Strategic recommendations............................................................................................8
Reference......................................................................................................................11

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Selected FMCG Product overview
The chosen product Lipton Green Tea is one of the most widely used FMCG products
all over the world (Lipton.com 2019). The customer ratings of this product have been very
affirmative over the years. The taste of the product is delicious and it is not bitter as well.
This nature of the taste of Lipton Green Tea is sure to attract the attention of the customers. It
is very light and fresh so that the customers will likely to become the regular ones
(Lipton.com 2019).
This product has been sold in various forms like the plastic bottles, tea bags and K-
cups. One of the most valuable things for this product is its health benefits. According to the
makers of this product this improves the health of the heart (Lipton.com 2019). This product
reduces the appetite of the users and keeps them healthy. The obese patients will surely be
benefitted if this green tea helps to keep their heart in good condition and decreases their
appetite for food. However, it has been recently reported that the tea leaves are imported from
China and the quality of the tea leaves is in question.
This is why the customer loyalty has declined over the time and this has impacted on
the overall sales percentage of the product as well (Lipton.com 2019). The Lipton green tea
always keeps the body of the users hydrated in an effective manner. There are several types
of the Lipton green tea that are available in the market like pure green tea, lemon ginseng
green tea, green tea with mint, matcha green tea and many more.
Critical Analysis
The concept regarding the behavior of the consumer includes the topic of the study
regarding how the buying decision of the consumer varies, what they intend to buy and why
they intend to buy (Aschemann-Witzel 2015). The research regarding the behavior of the

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consumer is generally reliable over study regarding the consumer’s nature. It generally
apprehend the process regarding the decision making of the buyers of the chosen products.
The report centres on the review of the FMCG product, Lipton green tea. This report
highlights the understanding of the application of the concepts reated to the consumer
behavior and the theories for the analysis of the facts that has been gathered from the survey
analysis and the video regarding the current maketing strategy and the communication of the
rand of the Lipton green tea. The critical analysis of the report demostrate the perception, the
behavior, the attitude and the perspectives in relation to the FMCG product brand which has
recently shown decline in the rate of the customer loyalty and low rate of the repeat
purchasing in the history of the purchase (Frederiks, Stenner and Hobman 2015). The
purchasing or the buying behavior of the cosumer generally refers to the various ways or the
methods including the factors such as the buying, disposal of the service, goods and the ideas
by the individual in the aim of satisfying their needs.
The scenario of the report highlights the decline of the loyalty of the customer in the
together with the declining rate of the repeated purchase of the FMCG product chosen in the
last few years, as mentioned in the assessment 1 and 2. The Lipton green tea is the product of
choice for targeting the analysis at the asssment.
As per the stated scenario, Lipton brand or the business organization had a
tremendous fall in their profit rate and together with the decline of the rate of the product’s
sales, green tea. The brand has been witnessing some of the major loss and decline in the rate
of the loyalty of the customer and also the rate of repeat purchasing related to the product that
was diminishing historically as per the statistics of the last few years.
The behavioral models of the motive of consumer as per the above context of the
above scenario regarding the process of the decision of the buyers regarding the purchase of

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the FMCG product has been explained beow. The comprehensive model illustrating the
consumer behavior that illustrates the scenario above includes the following.
Stimulus-Response Model – Factors including the marketing of the other stimuli tends to
enter the black box of the consumer and induce their choices and reponse regarding the
purchase (Zeugner-Roth, Žabkar and Diamantopoulos 2015).The marketers and the brand
must recognize highlighted factors of the buyers black box. This model explains the factors
regarding how the factors like the natre of the customers, the responses of the buyers, both
rhe internal and the exernal stimuli and the process of the decision making interacts with one
another. The below stated figure illustrates the planned marketing stimuli that are produced
by the environmental factors. These environmental stimuli includes the social, the cultural
factors relying on the the cultural, economic and the circumstances of the politics related to
the scenario of the chosen FMCG product.
Figure; The Model of Back Box
Source: (Solomon et al. 2017)
The above box model thoroughly explains what exactlu goes in the mind of the
consumer or the buyer whil initiaing the fina purchse pf the FMCG product.

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The Nicosia Model – This consumer behavior model sheds light on the relation or the
connection among the brand and its customers. As per the stted scenario above, the Lipton
Green Tea brand requires to develop interactive and innovative strategic plan for enhancing
and influencing the buyers and the consumers of its product range to attract their loyalty and
the purchasing rate.
Engel Kollat Blackwell Model – The much famous model of the consumer behavior focuse its
explanantion via fur of the major clssifications and the sections including the stag of the
process or the deciosn making, the stage of the information or the data nput, the stage of the
processing of the information and the finally the factors such as the variables that tends to
influence the stage of the decision process.
This perticular model of the cosumer behavior recognizes the procedure of the
decision making of the cosumer illustrating the recognition of the stage of the issues, the
relevant research, the review of the market, the effective assessment or consideration of the
alternatives and the other options of the selected product available in the market and finally
the outcomes (Homburg, Jozić and Kuehnl 2017). This model explains and emphasize stress
on the variables which tends to contribute to the process of the decision making of the
customer. Factors and the charcterisics including the cultural and the social factors, the
lifestyle, the personality, the decisions of the family and the cultural factors plays a very
essential role in the process of the purchaing decision making of the customer.
Apart from the above stated behavioral model of the consumer behavior, there lies
some of the other factors that tends to influence the behavior of the buyers and furthermore
contributes to the rate of the diminishing loalty and the low rate of the repeated purchasing.
These can be explained by the below diagram.

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Figure; Some of the factors that affects the loyalty of the customers towards the brand
Source: (Sasmita and Mohd Suki 2015)
The above stated figure describes some of the factors which are important and tends
to affect the loyalty of the customers. The impact of the rate of the satisfaction regarding the
concept of the loyalty of the customer is manifold in nature. The figure furthermore
demonstrates the direct connection among the loyalty and the level of the satisfaction of the
consumer focusing on the fact that the customers who are satisfied are the one who are loyal
and thus enhances the repeated purchase rate of the product.
As per the survey conductd via survey monkey, the brand or the popularity for the
FMCG product play an essential role for influencing the cunstomer for the purchase. The
survey furthermore reveled how their purchasing decision is based on the taste and the health
benefits they believe to be associated with the consumption of the Lipton green tea and thus
slightest dissatisfaction regarding the taste and the health issues regarding the quality of the
product can lead to create rift regarding their satisfaction level (Vinayagamoorthy and
Kannan 2015). The survey conducted in the previous assessment furthermore reveled how

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factos such as the packaging of the product and price of the product are some of the factors
they consider while purchase and thus increased level of price with unattractive packaging of
the product may lead to shift of the customer base to other competitors of the brand (Mirabi,
Akbariyeh and Tahmasebifard 2015). Finally the survey revealed the factor of the nutition
and the fitness which has been one of the popular factor growing in the industry needs to be
considred by the brand since slightest dissatisfaction regarding the nutritional benefits and the
health and the lack of meeting te needs of the targeted group might be the factor leading to
major decrease in the rate of the customer lotalty towards the brand of Lipton Green tea.
Strategic recommendations
Some strategic recommendations are very necessary to improve the customer loyalty
of the product and bring the confidence back of the customers in real time. The product is
made by Unilever and the brand value of the company should be increased. According to the
experts, it has been claimed that around 80% of the brand revenue of the companies will
depend upon the 20% of their current customer base. Similarly, the disloyalty of the
customers will surely decrease the brand identity of Lipton Green Tea.
 Unilever should increase the product benefits for their Lipton Green tea. They can
choose to provide bonus offers on providing different beverages with green tea that
will be healthy for the customers (Coelho and Henseler 2012).
 The social media advertisements should be made stronger since this FMCG product
has been accepted all over the world. Another tea product by Lipton is their iced tea
that can be provided to the customer on special offers.
 Some innovative ways should be found by Unilever so they can make the product
more popular to the customers.

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 Lipton is a very well established brand in the green tea and this is why they can join
hands with famous beverage producing brands to attract their customers more.
 More products should be innovated by the company on different and delicious tastes.
They should select some popular flavors like honey, blackberry, pomegranate, orange,
melon, lemon, cranberry and many others. These different flavors will attract the
customers back again to buy the products (Coelho and Henseler 2012).
 The customers should be able to rely on the company and be sure that the products
will definitely bring improvements to their health. The customers should never feel
that they are taken for granted by the product providers (Evanschitzky et al. 2012).
The customer services must be very prompt of Lipton so any information required by
the customers should be readily supplied.
 The service providers can choose to interact with the customers through the emails,
phone calls and many other modes so the proper reason for deviating from the
services of Lipton can be understood (Goetsch and Davis 2014).
 The surveys should be organized by Unilever to have an idea about the choices of the
customers. If the company is able to understand the requirements of the customers
they will surely be able to provide the customers with the similar products and
services.
 As the product Lipton Green tea is associated with providing the health benefits to the
customers, Lipton can provide the customers with the health card that will help them
to keep their health problems in check.
 Doctor appointments can also be arranged by the customers who need it. This will
ensure the customers that the company is worried and concerned about their health
issues and they are working on the issues to reduce the problems (Sashi 2012).

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 Caring customer services will always attract the customers towards Lipton. Unilever
will have to keep in mind that their customers are the primary resources for their
profits and this is the reason as to why they should never give up on innovating new
things for the customers (Erdoğmuş and Cicek 2012).
 The company should appoint some consultants for the regular customers. This will
help Lipton to invest more time and attention to them. Thus the organization can build
up a healthy relationship with the customers on a regular basis (Erdoğmuş and Cicek
2012). This is a very clever strategic move for the organization in various ways.
 The company must give attention to all the little things. This is an effective strategy
since the customers will understand that the company cares for them and their loyalty
will increase.

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Reference
Aschemann-Witzel, J., 2015. Consumer perception and trends about health and sustainability:
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Coelho, P.S. and Henseler, J., 2012. Creating customer loyalty through service
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Erdoğmuş, İ.E. and Cicek, M., 2012. The impact of social media marketing on brand
loyalty. Procedia-Social and Behavioral Sciences, 58, pp.1353-1360.
Evanschitzky, H., Ramaseshan, B., Woisetschläger, D.M., Richelsen, V., Blut, M. and
Backhaus, C., 2012. Consequences of customer loyalty to the loyalty program and to the
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Lipton.com (2019). Home. [online] Lipton US. Available at:
https://www.lipton.com/us/en/home.html [Accessed 11 Feb. 2019].

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Mirabi, V., Akbariyeh, H. and Tahmasebifard, H., 2015. A study of factors affecting on
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