Marketing Strategy Analysis of Twinings (MKTG806) Report

This report presents a comprehensive analysis of Twinings' marketing strategy in the Australian market. It begins with an introduction to Twinings' market position and discusses the company's success. The report then delves into a situational analysis, employing PESTEL and Porter's Five Forces frameworks to assess the external and internal environments, respectively. The Ansoff Matrix and SWOT analysis are used to evaluate strategic options, and Porter's generic strategies are examined to understand Twinings' competitive approach. The report also outlines specific objectives and goals for Twinings, followed by strategic recommendations aimed at enhancing its market performance. These recommendations are based on a thorough examination of the company's strengths, weaknesses, opportunities, and threats, providing actionable insights for future growth. The analysis considers the political, economic, social, technological, environmental, and legal factors impacting Twinings, as well as the competitive dynamics within the tea market. The report concludes with a summary of key findings and recommendations, offering a strategic roadmap for Twinings to maintain its leadership position and achieve its objectives.

Running head: ANALYSIS OF MARKETING STRATEGY
ANALYSIS OF MARKETING STRATEGY
Name of the Student
Name of the University
Author Note

1ANALYSIS OF MARKETING STRATEGY
Table of Contents
Introduction....................................................................................................................2
Situational analysis.........................................................................................................2
PESTEL analysis of Twinings...................................................................................2
Porter’s five forces analysis of Twinings...................................................................4
Ansoff Matrix analysis of Twinings..........................................................................5
SWOT analysis of Twinings......................................................................................5
Porter’s generic strategy analysis of Twinings..........................................................6
Objectives and goals of Twinings..................................................................................7
Strategic recommendations that can be provided to Twinings......................................8
Conclusion......................................................................................................................9
References....................................................................................................................10
Appendices...................................................................................................................12
Appendix 1 – PESTEL analysis table......................................................................12
Appendix 2 – SWOT analysis table.........................................................................12

2ANALYSIS OF MARKETING STRATEGY
Introduction
Twinings has developed its position as the number one tea based brand in Australia
with a market share of more than 20% of the total shares in the market in the last few years.
Twinings has gained 76% of the total shares in the speciality premium tea based market. The
mainstream based competitor of Twinings is Lipton that has however not been able to
provide major levels of competition to the organization. Twinings is an important part of the
British brand named Associated British Foods or ABF. The organization is an English
marketer based of different types of tea and different other beverages that include, hot
chocolate, coffee and malt based drinks as well (Twinings.com.au 2019).
The Australian operations of the organization has been able to gain huge levels of
success within a short period of time. The report will be based on the situational analysis of
Twinings that is related to the external and the internal environment of the organization. The
macro environment of Twinings will be analysed with the help of PESTEL framework and
micro environment will be examined with the implementation of Porter’s five forces analysis.
The goals and objectives of the organization will be discussed in the report in detail based on
which strategic recommendations that can be provided to the organization (Twinings.com.au
2019).
Situational analysis
PESTEL analysis of Twinings
Political factors – The political stability in Australia is high and restrictions are posed
towards the entry of new organizations in the country. The stability of the market and high
GDP will be able to provide effective revenues to Twinings. The Australian market will
however be a safe business based market for the operations and growth of Twinings (Basile,
Kaufmann and Savastano 2018).

3ANALYSIS OF MARKETING STRATEGY
Economic factors – The levels of GDP per capita of the income of Australian people.
The consumption levels of tea in the country are high in comparison to the consumption of
coffee. The GDP of Australia in the year 2018 was 1.69 Trillion Dollars. The ability of the
consumers based on purchasing the high quality tea based products is an important factor that
supports the growth of Twinings. The labour wages and corporate taxes of the organization
are however quite high in the country that can have an impact on the profitability levels of
Twinings (Aguinis, Edwards and Bradley 2017).
Social factors – The obesity levels of people in Australia are quite high and the
diabetic patients are also affected in a huge manner by the consumption of tea. The levels of
obesity of the consumers can be reduced due to proper consumption of tea. The sales levels
of Twinings Tea have been increased due to the social factors that are a part of Australia
(Daspit et al. 2017).
Technological factors – The levels of importance of the enhancement of technologies
have been able to play a major role in the proper development of the operations of Twinings
in the industry. The improvement of technologies is considered to be an important factor that
has led to the development of advertisement and communication based methods (Durand,
Grant and Madsen 2017).
Environmental factors – The production process of tea is highly environment
friendly in nature and the packaging activities have changed based on the external
environment based changes. The levels of harms that have been made by the organizational
operations have been able to affect the packaging and production based process (Demir,
Wennberg and McKelvie 2017).

4ANALYSIS OF MARKETING STRATEGY
Legal factors – The differences between legal systems have been able to play a major
part in the policies that are developed by the organization. The regulations based on legal
affairs have a major impact on the development of operations of Twinings in Australia.
Porter’s five forces analysis of Twinings
Bargaining power of the buyers – The customers or buyers of Twinings are able to
affect the ways by which the organization decides the prices of the products. The behaviour
levels of the consumers are considered to be important for the proper development of the
products of Twinings.
Bargaining power of the suppliers – The suppliers of Twinings are considered to be
important for the ways by which the organization has been able to decide prices of the
products. The supply chain that has been formed by the organization is an important factor
that has an impact on Twinings (Ethiraj, Gambardella and Helfat 2016).
Competitive rivalry – The competitive rivalry in the tea market of Australia is
considered to be quite high and the up-market and premium brands are providing huge rivalry
to each other. The brands have been able to position themselves in the industry with the help
of the emotional levels of connection that is developed in the industry (Ethiraj, Gambardella
and Helfat 2017).
Threats of the new entry – The major barriers based in entry of new organizations
have been affected in a negative manner by the strong levels of identities that have been
developed by the organizations that are already operating in the country. The support that is
provided to the suppliers is considered to be an important factor that reduces the levels of
entry of new organizations (Hanson et al. 2016).

5ANALYSIS OF MARKETING STRATEGY
Threats of substitutes – The shift towards the consumption of coffee has been able to
develop a major substitute based on the products that are offered by the organization like
Twinings. Coffee has been able to become a major substitute in comparison to the other
products that are offered by the premium tea based organizations (Hitt, Ireland and Hoskisson
2016).
Ansoff Matrix analysis of Twinings
The Ansoff Matrix can be implemented in order to analyse the strategy implemented
by Twinings,
Market development – The market development based quadrant is based on the ways
by which Twinings is able to develop its customer base in different countries. The proper
market development is considered to be a major part of revenues that have been gained by
Twinings.
Diversification – The diversification of products is an important part of the strategy
based on increasing the types of products that are offered by Twinings to the customers
(Hanson et al. 2016).
Market penetration – The market penetration process is considered to be an important
part of the development of revenues in the industry of premium tea products by increasing the
variety of products offered to the consumers.
Market penetration – The process of market penetration is considered to be a major
factor that is related to the growth of Twinings that can be achieved by developing lower
priced products.

6ANALYSIS OF MARKETING STRATEGY
Product development – The process of product development will be helpful for the
organization in order to develop the levels of revenues of Twinings in the industry (Jenkins
and Williamson 2015).
SWOT analysis of Twinings
Strengths – The company logo that has been used by the organization is considered to
be a major factor that has an impact on the brand value formed by Twinings. The
organization has developed its position as the founding member of the Ethical Tea
Partnership. The company has also been able to develop an effective image based on the
heritage of the products that are offered to the customers. Twinings has been able to provide
major variety of tea based products to the customers. The contribution that has been provided
to the social responsibility of the organization has been able to play a major role in the proper
development of the image of the brand (Meyer, Neck and Meeks 2017).
Weaknesses – The prominence levels of the brand are quite low in spite of the levels
of awareness and the strength of the brands as well. The levels of competition in the industry
are high and the market share that is formed by Twinings is not up to the mark as well.
Opportunities – Twinings has the opportunity to live up to the ethical business based
structure of the organization that is developed in the industry. The strategic tie-ups that have
been developed by the organization have been able to play the most important role in the
sales of Tea. The shares in the market of Twinings have been increased in an effective
manner with the help of different products that are provided to the customers (Michael,
Storey and Thomas 2017).
Threats – The rates of consumers of tea in the industry have stared reducing in the
last few years and this has been able provide major threats to the operations of Twinings. The
preference levels of the consumers are able to reduce the shares that have been gained in the

7ANALYSIS OF MARKETING STRATEGY
market. The price based wars are considered to be an important factor that is able to affect the
profitability and revenues of Twinings (Morschett, Schramm-Klein and Zentes 2015).
Porter’s generic strategy analysis of Twinings
The Porterls generic strategy that has been implemented by Twinings in order to
maintain its position in the industry is termed as the product differentiation based strategy.
The organization mainly develops the products in order to offer them to the consumers who
are able to pay the premium prices for products that can be used by them. The levels of
competition that have been developed in the industry or premium tea based market are quite
high (Nickols 2016). The organization thereby aims at differentiating its operations from the
products that are offered by the competitors. The development of market shares and revenues
in the industry is considered to be an important factor that has an impact on the revenues that
have been gained by the organizations. The up-market operations of the organization are
influenced by the quality of products that are offered by Twinings. The organization thereby
needs to maintain the quality of products in order to maintain the customer base in the
industry for a long period of time (Wheelen et al. 2017).
Objectives and goals of Twinings
The operations of Twinings needs to be improved in order to improve the levels of
revenues and shares in the market as well. The different objectives that have been set by the
organization in order to maintain the future operations in the industry are as follows,
SMART goal 1 -
S – Specific The development of different types of products that are able to fulfil
the demands and needs of the consumers who have different needs.
M – Measurable Can be measured by increase in number of customers.

8ANALYSIS OF MARKETING STRATEGY
A – Achievable Can be achieved.
R – Relevance Relevant for the growth of the company.
T - Timely One year.
SMART goal 2 -
S – Specific Developing high levels of engagement of the customers in order to
maintain the loyalty levels (Michael, Storey and Thomas 2017).
M – Measurable Can be measured by increase in satisfaction levels of customers.
A – Achievable Can be achieved.
R – Relevance Relevant for the growth of the number of loyal customers.
T - Timely Two year.
SMART goal 3 -
S – Specific Development of communication based plans that can help the
organization in order to understand the customers and develop the
products based on their personal needs and demands.
M – Measurable Can be measured by enhancement of loyalty levels of customers.
A – Achievable Can be achieved.
R – Relevance Relevant for the development of a large customer base.
T - Timely One year.

9ANALYSIS OF MARKETING STRATEGY
Strategic recommendations that can be provided to Twinings
The strategic recommendations that can be provided to Twinings in order to maintain
the levels of revenues are as follows,
Twinings can aim at increasing the levels of revenues with the help of proper
expansion in different market areas for the purpose of increasing its shares in
the market and taking advantage of the tea consumption rates of Australia.
The distribution channels of Twinings can be improved in order to reach larger
number of customers and increasing the shares of the organization in the
industry. The lack of proper distribution channels had reduced the share of the
organization in Australia.
The development of social media based strategies in order to communicate
with the customers on a daily basis and understanding their needs and
demands as well.
Conclusion
The report can be concluded by stating that the operations of Twinings have been
quite successful with the help of premium products that are offered to the consumers. The
improvement of shares in the industry and increasing the levels of revenues is considered to
be an important factor that will have an impact in the future operations of Twinings in the
premium tea producing industry.

10ANALYSIS OF MARKETING STRATEGY
References
Aguinis, H., Edwards, J.R. and Bradley, K.J., 2017. Improving our understanding of
moderation and mediation in strategic management research. Organizational Research
Methods, 20(4), pp.665-685.
Basile, G., Kaufmann, H.R. and Savastano, M., 2018. Revisiting complexity theory to
achieve strategic intelligence. International Journal of Foresight and Innovation
Policy, 13(1-2), pp.57-70.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. and Long, R.G., 2017. A Strategic
Management Perspective of the Family Firm: Past Trends, New Insights, and Future
Directions. Journal of Managerial Issues, 29(1).
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: A review and theoretical conceptualization. Long Range Planning, 50(4), pp.431-456.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1),
pp.4-16.
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2016. Replication in strategic
management. Strategic Management Journal, 37(11), pp.2191-2192.
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2017. Reviews of strategic management
research. Strategic Management Journal, 38(1), pp.3-3.
Hanson, D., Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management:
Competitiveness and globalisation. Cengage AU.

11ANALYSIS OF MARKETING STRATEGY
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis.
Routledge.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international
management (pp. 978-3658078836). Springer.
Nickols, F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal, 1(1), pp.4-7.
Twinings.com.au 2019. Home - Twinings Australia. [online] Twinings Australia. Available
at: https://twinings.com.au/ [Accessed 24 May 2019].
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic
management and business policy (p. 55). Boston: pearson.

12ANALYSIS OF MARKETING STRATEGY
Appendices
Appendix 1 – PESTEL analysis table
Political factors High political stability in Australia.
Safe business market for Twinings.
Economic factors GDP per capita is high.
The consumption levels of tea are high.
Social factors The obesity levels of people are high.
Sales of tea high based on consumer preferences.
Technological factors Importance of technology is high.
Improvement of technology is an important factor.
Environmental factors The production process is environment friendly.
The harm done by production is low.
Legal factors The difference levels of legal systems is a major factor
that impacts the organization.
Appendix 2 – SWOT analysis table
Strengths
The logo of the company has high
brand value.
The heritage of the company is an
important factor.
Weaknesses
The prominence of the brand is low.
The competition levels are high.
Opportunities
The operations of Twinings are
ethical and can help the
organization to increase its
presence.
The strategic tie-ups provide growth
opportunities.
Threats
The reduction of tea consumption is
a major threat.
The price wars have an impact on
the revenues of Twinings.