Twinning Tea: Addressing Market Challenges and Strategic Alternatives

This report provides a comprehensive marketing analysis of Twinning Tea, examining its market position, challenges, and potential strategies. The analysis begins with an introduction to the company, its market share, and its primary competitor, Nestle. The report identifies key problems, including consumer perceptions of tea, the shift towards healthier drinks, environmental concerns, and the emergence of substitutes and competitors. A situational analysis is conducted using PEST and SWOT frameworks, evaluating political, economic, social, and technological factors, along with internal strengths, weaknesses, opportunities, and threats. The report also includes STP analysis, assessing the company's segmentation, targeting, and positioning strategies. Strategic alternatives are proposed, such as marketing and sales promotions, advertising on social media, and packaging innovations. The report concludes with recommendations, including market research, price reductions, and advertising campaigns on both traditional and digital platforms. The report is supported by references to relevant academic sources.

Issues in
Twinning’s

Introduction
• Background
• Problems faced
• Situational analysis
• Alternative strategies
• Recommendations

Background
• Operates in the market by supplying tea based products.
• 23% of the marker share
• volume share of the company amounts to nearly 11%
• The closest competition has been identified in the form
Nestle
• Niche pricing

Problems faced
• Consumer issues:
Tea is perceived as boring.
Shift to healthy drinks
Consumption of coffee
• Environmental issues
• Substitutes and competitors emerging

Situational Analysis- PEST
analysis
• Political factors
• The country is considered politically stable.
• There is high risk of military invasion.
• High degree of corruption in the food regulatory department.
• There are frameworks for regulation of intellectual property thus the rights of the company can be protected.
• There are availability of safety and regulatory frameworks in the food and beverages industry.
• The country has favourable attitude towards FDI.
• Economic factors
• There is high degree of government intervention in the market.
• The currency of Australia is stable and so are the exchange rates.
• High level of infrastructure in the food and beverages sector.
• The rate of inflation in the country is high even if the growth rate of the country is considered to be high.
• The economy of the country is currently in the recovery stage.

Situational Analysis- PEST
analysis
• Social factors
• There is availability of high number of skilled and semi-skilled worker in the country.
• Educational competence of the country is considered to be standard.
• The spirit of entrepreneurship is high in the country as a result of which there are
number of new businesses in the country at rising at fast rates.
• Technological factors
• Innovative practices carried out by various companies that operate in the commercial
beverages industry
• The technological innovation affect the productivity that the consumers are subject to.
• High rate of technological diffusion in the country.

Situational Analysis- STP
analysis
• Segmentation: The Company has developed the products mainly aimed at the people of the
country who have the purchasing power to buy products that re offered at niche prices. The
company aims to segment its market and maximise the turnover that they receive. Existence of
competition which segmenting capabilities pose threats to the strategy taken up by the company.
• Targeting: Although the aim of the company is to target a wide range of customers by offering
different array of products. The product had success in attracting the older sections of the
population, however, that has been successful and the attempt to attract consumers from
different demographics.
• Positioning: The position that the company has made in the minds of the consumers is
unfavourable for the operations of the company in the long run. In order to maintain their market
share and expand it further, the company needs to move out from the current positioning of the
product. Their services and products of the company is positioned in the market as products that
are made just for the older sections of the population.

Situational Analysis- SWOT
analysis
Strengths:
 Favourable market share
 Huge variety of products
 High quality products
 Effective segmentation
Weaknesses:
 Unfavourable perception
 Incapable marketing
 Lack of sales promotional activities
 Absence of portable packaging.
Opportunities:
 Shifting taste toward healthy products
 Availability of skilled labour
 Outsourcing marketing
 Favourable government regulations.
Threats:
 Rise of numerous competitors in the segment
 Negative perception about consumption of tea.
 Marketing competency of competitors.

Strategic alternatives
• Carry out marketing and sales promotional activities through which the company will be
able to test the favourable opportunities that are present in the market. They will be able
to cater to the diverse needs of the market and utilise their competencies.
• Advertising on social media will help the company in gaining the attention of the
millennials which would help the company in shifting the perception of the products
towards the needs of the millennials.
• Mobilising the packaging will help the company in satiating the needs of the consumers
who prefer to consumer the drinks on the go.
• Positioning in the market for the quality and price combo that the products of the
company offer.
• Although price competition would be evident, the company should reduce the price of the
products to be at par with the competitors.

Recommendations
• the company should carry out market research that would help them to
understand the trends in the market, identify consumer and market
trends.
• The company should also reduce the prices of the products that they
offer in the market. The latter will result in price war, however,
marketing is a method which the company can use to gain a
competitive advantage in the market.
• Advertising on traditional as well as on digital platforms would help
the company in attracting millennials towards the products along with
the facility of mobile packaging of the products.

REFERENCES
• Coles, B., 2013. Ingesting places: embodied geographies of coffee. Why We eat, how we eat:
Contemporary encounters between foods and bodies, pp.255-70.
• Dong, H., Rowland, I., Thomas, L.V. and Yaqoob, P., 2013. Immunomodulatory effects of a probiotic
drink containing Lactobacillus casei Shirota in healthy older volunteers. European journal of
nutrition, 52(8), pp.1853-1863.
• Han, Y., 2014. BRAND DEVELOPMENT IN CHINESE TEA MARKET: Case Company: Lipton.
• İşleyen, B., 2015. The European Union and neoliberal governmentality: twinning in Tunisia and
Egypt. European Journal of International Relations, 21(3), pp.672-690.
• Nguyen, N., Hogan, L., Lawson, K., Gooday, P., Green, R., Harris-Adams, K. and Mallawaarachchi,
T., 2013. Infrastructure and Australia's food industry: Preliminary economic assessment. ABARES.
• Spence, C. and Wan, X., 2015. Beverage perception and consumption: The influence of the
container on the perception of the contents. Food quality and preference, 39, pp.131-140.