MG529: Strategic Marketing Plan for Yorkshire Tea - Report

This report presents a strategic marketing plan for Yorkshire Tea, a prominent black tea brand in the UK. It begins with an executive summary highlighting the brand's market position and competition, including PG Tips and Tetley. The report delves into market analysis, assessing market size, competitor strategies, and micro and macro-economic forces. It examines customer and stakeholder analysis to identify key marketing objectives. The campaign strategy includes strategic goals, market opportunities, and target audiences, with a focus on iced tea flavors to attract a younger demographic. The report outlines strategy implementation using the RACE model, a marketing roll-out plan including channels, budget, and a Gantt chart, and key performance indicators (KPIs). The analysis reveals the importance of plastic-free packaging and social media influencers. The report concludes with recommendations for Yorkshire Tea to maintain its market position, grow sales, and leverage future trends such as CBD tea.

Coursework 1
Strategic Marketing Report
Company: Yorkshire Tea

Executive Summary
The following report demonstrates the strategic marketing plan developed by Yorkshire
Tea. The report depicts that Yorkshire Tea is the 3rd largest tea brand within the
bounds of the UK. This brand is facing competition frombrands like PG Tips, Tetley,
Pukka, Clippers, etc. Currently, the brand is targeting youngsters and the old
generation. Over time, the brand is considering to grab the attention of school kids by
coming up with different flavours of the iced tea. This is mainly aimed at gaining the
attention of new prospective customers and establishing a strong and loyal base of
individuals who are not willing to shift to alternate brands.
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Contents
Executive Summary......................................................................................................................1
Introduction.....................................................................................................................................3
Market Analysis.............................................................................................................................3
a. Market Size.......................................................................................................................3
b. Competitor analysis........................................................................................................6
c. Micro and macro-economic forces impacting organisation......................................6
d. Customer analysis...........................................................................................................8
e. Stakeholder analysis.......................................................................................................9
Key marketing objectives...........................................................................................................10
Campaign Strategy.....................................................................................................................11
f. Strategic goal..................................................................................................................11
g. Market opportunities.....................................................................................................11
h. Target Audience............................................................................................................11
i. General campaign messaging......................................................................................11
Strategy implementation (tactics).............................................................................................12
g. RACE Model...................................................................................................................12
Marketing Roll-Out Plan.............................................................................................................14
a) Channels to be used.....................................................................................................14
b) Budget.............................................................................................................................16
c) Gantt Chart.....................................................................................................................16
KPI........................................................................................................................................17
Conclusion....................................................................................................................................17
Recommendations......................................................................................................................17
References...................................................................................................................................18
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Introduction
Strategic marketing implies how organisations efficaciously differentiate them
from their competitors through capitalisation of their strengths by rendering consistent
value to their customers. The following report presents a strategic marketing plan for
Yorkshire Tea. Now, Yorkshire Tea is a well renowned black tea brand of the United
Kingdom. This brand is mainly owned by Bettys and Taylors of Harrogate. The strategic
marketing plan of the respective brand includes market analysis, key marketing
objectives, campaign strategy, and tactical strategy implementation. Lastly, inferences
are drawn based on the plan and consequently, recommendations are provided.
Market Analysis
a. Market Size
Yorkshire Tea is a popular brand that undergoes blending by the virtue of usage of
the black tea variants, specially imported from Kenya as well as Sri Lanka. Presently,
Yorkshire Tea is sold in 5 blends in several outlets inclusive of 6 organisation owned
and operated team rooms spread across the bounds of the United Kingdom. The brand
produces over 5 million teabags every year.
As per the analysis of the above figure, it can be stated that Yorkshire Tea, over
time, has gained the 3rd position in terms of the largest tea brands within the bounds of
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the United Kingdom. The brand value of this company is known to be 22.9% along with
72% standard black tea in the United Kingdom households (Yorkshire tea expands
market share, 2017).
As per the interpretation of the above graph, it can be stated that the World Tea
Market is constantly developing and evolving at a growth rate of 2.8% each year. The
growth rate is expected to further increase soon, i.e., by the end of 2021 (Statista,
2020).
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The above graph depicts the market share held by the top tea brands within the
bounds of the United Kingdom as per the reports of the year 2019 following the
quantum of individuals in thousands. The graph shows that Yorkshire Gold had a base
of 5,920,000 individuals during the year 2019 illustrating the dominance of the brand in
terms of its market positioning and customer likeability.
Future Tea Drinks Trends
The market analysis of the respective sector has further revealed information of
some of the upcoming as well as emergent future trends of the tea drinks sector. The
first prominent trend is the evolution of tea bags. Yorkshire Tea mainly holds the belief
that all of the packaging would be circular in the future course of time. This implies
that the packaging will be mainly made from recycled or renewable plant based
materials. This will be in congruence with the goal of becoming plastic free by the end of
the year 2025 (Yorkshiretea, 2020). Secondly, the regulations of the UK government
have led to the emergence of a new Cannabidiol (CBD) Tea product. Across the globe,
CBD is emerging as a prominent ingredient (beveragedaily, 2020). This will provide
Yorkshire Tea with a lucrative opportunity to expand the flavor as well as taste of its
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products. Lastly, social media will emerge as a powerful in the upcoming time to
promote the brands of tea drinks. Social media marketing will be carried out via
capitalization on partnerships with celebrities as well as athletes. Yorkshire Tea has
presently partnered with Brownlee Brothers, the British triathletes (Yorkshiretea, 2020).
b. Competitor analysis
Yorkshire Tea faces extreme competition in the tea drinks market owing to the
presence of Tetley, PG Tips, Twinings, Clippers, and so on (Chernev, 2018). The market
share held by the respective brand gets diluted owing to the loyal customer base of
these companies. In addition to this, it has been determined that Yorkshire Tea is the
single brand which has made its position within the Top 10 Brands of FMCG. It has
backed this position owing to its superior quality offerings, extensive brand image,
global reputation and higher customer purchase intent.
c. Micro and macro-economic forces impacting organisation
An organisation needs to carry out macro and micro environmental analysis to
identify the positives as well as negatives of the market that may place an impact on its
business operations in the long run (Chernev, 2018).
Macro-economic Forces
The macro-economic forces of the business environment of Yorkshire Tea are
analysed beneath with the help of application of PESTLE analysis.
Political The landscape of the United Kingdom is quite open as well as stable. This leads
to the quick emergence of opportunities for tea drinks companies such as
Yorkshire Tea. Further, the government also extends support to build the
profitability and revenues of innovative brands like Yorkshire Tea (Hunt, 2018).
Economic The economic landscape of the United Kingdom is quite stable. This has led to
the increment of the average growth rate with approx. 3.4%. However, the onset
of issues such as Brexit and COVID has led to a negative influence on the GDP
of the country. This has negatively affected the trade patterns of the UK
(Hollensen, 2019).
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Social The people of the UK are fond of consuming black tea. This leads to repeat
sales for Yorkshire Tea which is a prominent tea brand in the nation and is liked
by a vast base of individuals (Yorkshire tea, 2020).
Technological The advancement of technology has led to the emergence of opportunity for
Yorkshire Tea to make use of different channels for the purpose of promoting
the offerings of the brand in the market place. This allows the brand to build
healthy relations with prospective customers (Bettysandtaylors, 2020).
Legal Yorkshire Tea complies with all the legal rules and regulations to make sure that
there is no harm caused to its business operations in the long run. The activities
such as managing and controlling tea plantation are carried out by the company
properly (Yorkshire tea, 2020). Also, the employees are provided with adequate
wages to give them a chance of spending a quality life.
Environmental To manage environment change Yorkshire Tea ensure that surround doesn't get
harmed by plantation, thus better quality pesticides are used (Yorkshiretea,
2020).
Micro-economic Forces
The micro-economic forces of the business environment for Yorkshire Tea are
examined below with the execution of SWOT analysis (Baker and Saren, 2016).
Strength Yorkshire Tea possesses a base of loyal expatriates that helps the brand to
promote its offerings across the globe (Hollensen, 2019). The global reputation of
the company benefits the company in gaining a high position in the market place.
Weaknesses Yorkshire Tea needs to incur more shipping overseas, to make the selling price
more in other nations as against the United Kingdom (Hunt, 2018).
Opportunities Yorkshire Tea can tap the opportunity of opening an online shop, expanding iced
tea and targeting the youngsters (Bettysandtaylors, 2020).
Threat Intense rivalry with low priced competitors poses a direct threat to the positioning as
well as the market share of Yorkshire Tea (Yorkshiretea, 2020). The firm can also
face risk if it does not abide by environmental or legal regulations.
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d. Customer analysis
The analysis of customer preferences and choices has led Yorkshire Tea to the
inference that people have several alternatives in the market. This implies that the
respective brand has the option of repositioning it as a drink's product. Hereby, the
company has decided to devise and implement several strategies through which
traditional marketing is accessed. This will help the company in grabbing the attention of
a large number of individuals in a quick time period. In addition to this, it has been
determined that Yorkshire Tea is quite concerned about the quality of its offerings. This
ensures the provision of effective customer services in the market
(www.bettysandtaylors.co.uk, 2020). Beneath shown are two of the customer profiles
that Yorkshire Tea is targeting to inflate its revenues and profits in the global tea drinks
market.
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e. Stakeholder analysis
Stakeholders are the individuals, groups or organisations that are affected and bind by
the decisions as well as strategies of a company. An entity needs to carry out a
stakeholder analysis to devise effective strategies and implement them for the long run
(Anche, Hozouri and Mehdizadeh, 2014). The stakeholder analysis for the respective
brand, Yorkshire Tea, is presented beneath.
Family Owners Yorkshire Tea is an independent family business. This implies that the
family owners are the most critical and important stakeholder group for
the brand (Our vision and values, 2020).
Suppliers The sustainability of Yorkshire Tea in the market place for a long period
of time is largely dependent over working in a manner that ensures the
fulfilment of stakeholder demands. The vendors for this brand include tea
growers from countries such as Ethiopia, Tanzania, Rwanda, Malawi,
India, China, Kenya, and Sri Lanka (Yorkshiretea, 2020).
Customers 60% of the total customers of Yorkshire Tea are loyal as they are happy
with the packaging and quality of the organisational offerings
(Yorkshiretea, 2020).
Employers Having a base of 1400 employers, the company empowers this group
and protects its interests by providing them with high rewards and
treating them fairly. (Yorkshiretea, 2020).
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Key marketing objectives
Specific Measurable Achievable Measurable Time
Bound
Plastic Free
Tea Bags
To enhance
sales and gain
#1 position in
the UK tea
market
KPI Purchase of
machine for
making plant
based tea bags
To become 100%
plastic free by
virtue of tea bags
as well as
packaging
By the
end of
2025
Bottle Product
– Iced Tea
To create a
plan for making
iced tea of
different
flavours and
launching them
in the market
KPI Introducing a
campaign for
iced tea of
different flavours
aimed at
youngsters
mainly
To increase the
sales of Iced Tea
by 5% within UK
and outside the
country also.
By the
end of
2022
Social Media
Influencers
To build
partnerships
with social
media
influencers
across the
globe
KPI Selection of the
right social
media
influencers to
promote
organisational
offerings across
the world
To enhance sales
of Iced Tea and
Black Tea by 10%
across the world
By the
end of
2022
Campaign Strategy
f. Strategic goal
 Yorkshire Tea will come up with iced tea of different flavours in the
market to enhance its overall revenues and profits.
g. Market opportunities
There are mainly 2 market opportunities present to Yorkshire Tea. The first
market opportunity is to enhance the sales of iced tea across the world by using social
media influencers. The second opportunity present to the respective brand for
augmentation of its financial performance is the concentration on making the tea bags
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plastic-free and reusable. Leveraging both of these opportunities will help the
organisation in beating the competition and gaining a competitive advantage.
h. Target Audience
Yorkshire Tea aims to target the younger generation for the different flavoured iced tea.
The main reason behind this is to capture the attention of young population with diverse
flavours and thereby enhance the sales of the firm in the market.
i. General campaign messaging
“Let’s have a proper brew” is the slogan for the marketing campaign launched by
Yorkshire Tea in the market.
Yorkshire Tea Campaign Add.
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