Strategic Marketing Report: Yorkshire Tea's RTD Product Launch

This report provides a comprehensive strategic marketing plan for Yorkshire Tea, focusing on the launch of a new RTD (ready-to-drink) tea product. It begins with an introduction outlining the importance of marketing in the current business environment and provides a detailed market analysis, including market size, competitor analysis (Tetley, PG Tips), and the impact of macro and microeconomic forces (Brexit, inflation, technological advancements). The report includes a customer and stakeholder analysis, followed by a campaign strategy defining the campaign goals, market opportunities, and target audience (16-45 age group). The campaign messaging emphasizes the brand's commitment to quality. The strategic implementation section covers mission, situation analysis, and the application of the STP (Segmentation, Targeting, Positioning) model. The marketing mix (Product, Price, Place, Promotion) is discussed, along with the RACE model (Reach, Act, Convert, Engage) for digital marketing. The report also includes a marketing roll-out plan, budget, and key performance indicators (KPIs), concluding with recommendations to attract more buyers and maintain the brand's image. The report uses the provided case study and applies marketing principles to develop a strategic plan for Yorkshire Tea's expansion.

Strategic Marketing -
Yorkshire Tea Report

Table of Contents
INTRODUCTION.......................................................................................................................................3
Market analysis...........................................................................................................................................3
Market size..............................................................................................................................................3
Competitor’s analysis..............................................................................................................................3
Macro and micro economic forces...........................................................................................................4
Customer Analysis...................................................................................................................................5
Stakeholder’s analysis.............................................................................................................................5
Campaign strategy.......................................................................................................................................6
Goal of the campaign...............................................................................................................................6
Market Opportunity.................................................................................................................................6
Target audience.......................................................................................................................................6
General Campaign messaging.................................................................................................................6
Strategic implementation.............................................................................................................................7
Marketing roll out plan................................................................................................................................8
Budget.........................................................................................................................................................9
Key performance indicators.......................................................................................................................10
Recommendations.....................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERNCES............................................................................................................................................12

INTRODUCTION
In present business world, marketing is an essential activity which is related to promotion
and advertisement in order to earn higher sales and profit margin. Nowadays, it is important for
an organization to stay aware about the market trend, prevailing competition, economic forces in
order to prepare appropriate strategies (Khamis, 2016). The present report is based on Yorkshire
tea which was founded in the year of 1977 and has a large number of loyal customer base. The
company is renowned for its black tea and has gained reputation within UK over the period of
time. It is going t launch a new product which is RTD ( ready to drink) tea for business
expansion in international market place. The present report comprises a detailed marketing
analysis of organization including its market size, level of competition, macro and micro forces
and more. A campaign strategy for attaining predefined objective of company has also been
included in the report along with detailed communication mix and application of Race model. In
addition to this, marketing roll out plan including channels, timing has included in the following
report. It also includes budget and key performance indicator along with necessary
recommendations for attracting more number of buyers in current competitive environment.
Market analysis
Market size
It is analyze that Yorkshire tea is renowned brand of UK which owns remarkable market
share within country. In 2018, market share of company was 25.8% which is remarkable. It
booked positive tendency of growth event in the current pandemic time which shows the
reputation of brand within its target segment.
Competitor’s analysis
It is stated that Yorkshire tea is working within a competitive market place where a lot of
other competitors are also present which are providing substitute product to customers. There are
some major competitors of entity are given as under:
Tetley: It is a tea brand based on England which was founded in the year of 1837. Tea
leaves which are used by this organization is mainly received by India and Sri Lanka. By

analysing the current market trend, it has shifted its operation towards flavoured tea from black
tea. Company is providing extensive competition to the Yorkshire tea within UK and other
market places at global level (Kong and et. al., 2016).
PG tips: It is also renowned brand which was founded in 1930 and gain popularity in the
decade of 20s. The brand is renowned for its quality and popular among the customers between
the age group of 18 to 49. It is stated that number of users of the brand decreasing so it is not
likely to provide extensive competition to the respective company.
Macro and micro economic forces
Micro economic forces: Micro environment put direct impact over operations of an
organization as it is related to internal environment of company. In context of Yorkshire tea, its
microenvironment comprises a lot of components such as customers, suppliers, competitors and
general public. Certain components of micro environment of organization are mentioned as
under:
Customers: It is stated that Yorkshire tea has loyal customer base which is considered as
the strength of company.
Suppliers: It has a good supplier base which provide necessary raw material to company.
They are likely to outsource team from different locations such as Africa, India and more.
Competitor: The company is facing extensive competition due to presence of other rival
forms such as Tetley and so on at global marketplace.
Macro forces:
These forces are related to external environment and likely to put significant impact over
operations of an organization. For this purpose, PESTLE analysis is used which is mentioned as
under.
Political factor: It is analyze that political condition prevailing within UK put a
significant impact on overall business of organization. Due to Brexit, the price of export of tea
has increased which put negative impact over profit margin of business entity. Along with this, it
is also affected with The US China trade war (Millar and Searcy, 2020).

Economical factor: It is stated that rate of inflation is increasing rapidly which caused
increase in the price of tea and will put significant impact over profitability of organization.
Social Factors: It refers to personality, attitude and behaviour of customers which affect
the operation of organization. In context of Yorkshire tea, they need to analyze buying pattern ,
habits of customers for preparing appropriate strategies for future growth.
Technological factors: With enhancement in technology, Yorkshire tea is also upgrading
its activities in terms of technology. For this purpose, they are using vending machines which
will put positive impact over sales.
Legal factors: It comprise different rule, regulations, compliances which need to follow
by a business entity in order to run business in smooth manner. Here, company needs to abide
labour laws, consumer protection law for operating entity in an efficient manner.
Environmental factor: This factor also put a significant impact over performance of
organization. In this regard, they are looking forward to file biodegradable tea bag petition and
spreading awareness about environmental issues effectively (Dahl, 2018).
Customer Analysis
Customers are crucial part of business as they are the major source of revenue. It is
analyzed that major customers of Yorkshire tea is older age group people who are in the habit of
drinking the black tea. They are loyal towards the brand and not likely to switch over other
brands. It is analyzed that Yorkshire tea is one of the old tea brand of UK which has created
positive brand image over the period of time.
Stakeholder’s analysis
Stakeholders are vital part of business and put a significant impact over business
practices. It comprises different components such as customers, managers, employees,
competitors and more. In context of Yorkshire tea, they have a lot of stakeholder which
significantly affect their business performance. They have competitors such as Tetley and more.
In addition to this, they have major suppliers such as stansfeld scott & co. Ltd, Manassen foods
group and more. For the respective company, major stakeholders are customers, suppliers,

investors, government and so on. These all parties have great impact over their business activities
(Thomas, 2018).
Campaign strategy
Goal of the campaign
It is analyzed that Yorkshire tea is a renowned brand but there are a lot of competitors
present in market place. Due to this, they booked continuous decline in the sale. For this purpose,
they launch a campaign in order to show customers that they are executing things in proper
manner. Main aim of campaign is to enhance customer base of company and grab the attention
of new buyers who are using competitor’s product. It is analyzed that Yorkshire tea is known for
its quality. So, the campaign also aimed to demonstrate the way in which organization carried
out thing in proper manner. In this, they are planning to launch a new product which is a
RTD(ready to drink) bottle for gaining the attention of youth segment. So, the campaign aims to
enhance market reach of company by communicating with more and more audience in terms of
inflating current level of sales and profit margin.
Market Opportunity
It refers to the opportunities of growth which are present in the market place. Each and
every organization needs to identify some growth opportunities in order to enlarge the current
business (Ludwichowska, Romaniuk and Nenycz-Thiel, 2017). In context of Yorkshire tea, their
campaign has the opportunity of attracting more number of buyers for expanding current market
share of company. It will also provide the opportunity to company of maintaining positive image
of brand in market place.
Target audience
Target audience refer to the segment which is targeted by the company in an efficient
manner. In this, organization prepares all their strategies by keeping target segment in mind. It is
important to carefully select target segment as it significantly affect sales and profit margin of
business. In present scenario, Yorkshire tea is running a campaign for the target segment of the
people between the age group of 16 to 45. For this purpose, they are coming with a new product
for the new segment of customers.

General Campaign messaging
The message of campaign is to deliver the fact to target segment that company is using
proper practices with an aim to deliver quality products to end user. Their main focus is on doing
things properly. For this, they tested the tea before providing bringing it in market. Apart from
this, they also keep proper check over quality throughout the production process.
Strategic implementation
Mission: “To formulate a loyal customer base and retain them for longer run and also
expand operations at wide level across the globe”
Situation analysis: It is analyzed that while preparing a market plan, it is important to
first analyze the situation in detailed manner. Here, company needs to analyze prevailing
conditions within market place so that they can provide appropriate products and services for
meeting with requirements of customers in an efficient manner.
Marketing strategy: It refers to the strategy which is prepared by company in order to
attain its predefined marketing goals. For this purpose, STP analysis of Yorkshire tea is
mentioned as under:
 Segmentation: It refers to the bifurcation of whole market into smaller components. For
new product, organization has been segmented customers on the basis of geographic
location such as rural, urban and more. In demographic segmentation, they are using age,
gender and other such factors for selecting target group.
 Targeting: Here, the new product of organization is targeting to the youth generation
belonging from the age group between 16 to 45.
 Positioning: The product is going to position as a healthy product for living a better and
healthy life style (Celaya and et. al., 2016).
Marketing mix: It is a crucial component of marketing plan which comprises below
mentioned components:
 Product: The product of Yorkshire tea is black tea which comes in flavours. Now, they
are also going to introduce new product which is a RTD (Ready to drink bottle) for health
conscious group of customers.

 Price: They have determined the price in affordable range so that the product can be
easily purchased by middle class people.
 Place: It is easily available within supermarkets, local shops and can also find online. So,
it easy to purchase the product.
Promotion: They use a mix of traditional and new marketing practices such as TV
advertisements, celebrity endorsement and digital marketing practices are used by company for
promoting its product at wide level (Shao and et. al., 2016).
Implementation and control: It is the last step of marketing plan where organization is
required to keep proper control over its marketing practices for getting desired results within
predefined period of time.
Race Model:
It is a model which is applied in digital marketing practices. The major components of
this model are mentioned as under:
Reach: It aims to build awareness and visibility of brand in order to enhance reach of
business entity. In context of York shire tea they are using influencer marketing, social media
display ads and more are used in order to reach to more and more number of audience.
Act: Here, main aim to interact to more and more number of audiences. For this,
Yorkshire tea uses content marketing, responsive design, conversion rate optimization and more
for interacting more number of customers in an efficient manner.
Convert: It refers to the conversion of leas into sales. In context of York shire tea, they
use a lot of techniques of digital marketing in order to get more number of conversions for
enhancing sales and profit margin (Po, 2018).
Engage: Under this, respective company put efforts to engage more number of audiences
so that they stay with organization for longer duration.
Marketing roll out plan
Market roll out plan refers to introduction and release of new product and service in
market place. There is requirement to have strong marketing campaign for generating customer

interest. There is requirement to prepare an appropriate plan consisting activities which need to
perform for launching a new product (Scher and Berlet, 2016). In context of York shire tea, it is
going to introduce a new product. For this, they will prepare a complete schedule consisting
different activities. It will also include timing and issues in order to complete the task within
stipulate period of time. In present scenario, Gantt chart has been applied which comprises
starting and end date of each and every activity for providing clarity to all individuals regarding
their roles and responsibilities.
Budget
It refers to the document which needs to prepare in order to complete the activities within
available resources in an efficient manner. Budget provides complete guidance to undertake
different activities so that predefined business objectives can be achieved effectively. There are
some pre assumptions are necessary to prepare budget. There is requirement to make
assumptions about expenses and expected income which will incur through business activity. In
context of current scenario, Yorkshire tea will prepare a complete budget with the assumption of
future expenses and income.
Particulars 1st year 2nd year 3rd year 4th year
Investment 11000 20000 6500 6000
Initial money 12000 25000 7500 8000
Total 23000 45000 13000 14000
Marketing outlay
Sales publicity 2300 2000 2000 2000
Direct selling 4900 4500 2000 2000
Promotion 6000 2500 6000 3000
Total 13200 9000 10000 7000

Key performance indicators
The key performance indicators are helpful in order to examine the success of marketing
plan. By this, company analyze the effectiveness of marketing plan. In context of Yorkshire tea,
the major KPI indicators are mentioned as under:
Sales revenue: It is the major KPI indicator which shows the success of marketing
campaign. If sales revenue increase significantly then it shows the success of marketing plan. In
context of Yorkshire tea, they need to analyze the sales revenue after launching new product. It
will help to make necessary modification in current marketing plan. It is analyzed that the market
of RTD tea is forecasted to reach at $ 38.96biilion by 2027.
Customer lifetime value: It depicts the value for which customer stay with company for
longer duration. In context of Yorkshire tea, they aim to provide positive values to customers so
that they stay with business entity for longer period of time.
Recommendations
 It is recommended that Yorkshire tea needs to strengthen its marketing campaign by
using digital techniques. They need to embark effective strategies of digital marketing
such as SEO, content marketing and more as they are shifting towards young generation
by providing new product. ‘
 There is requirement to analyze the results of digital campaign consistently. For this, they
need to use effective tools such as Google analytics and need to analyze the conversion
rate in significant manner. It will aid marketers to make improvement in existing
campaign for getting positive outcomes.

CONCLUSION
Out of above discussion it is summarized that Strategic marketing refers to preparation of
effective strategies with an aim to attain predefined marketing objectives in an efficient manner.
In strategic marketing, company focuses over its strength in order to offer enhanced services and
values to customers. Discussion has been carried out about marketing plan including marketing
mix and other model for preparing appropriate business strategies.

REFERNCES
Books and Journals
Celaya and et. al., 2016. AC/E Digital Culture Annual Report 2016: Smart Culture: Impact of the
Internet on Artistic Creation. Focus: Use of New Digital Technologies at Cultural
Festivals. Dosdoce.
Dahl, S., 2018. Social media marketing: Theories and applications. Sage.
Khamis, S., 2016. The ironic marketing of heritage and nostalgia: the branding of Bushells tea,
1983-c. 1990. Journal of Historical Research in Marketing.
Kong and et. al., 2016. Understanding fashion consumers’ attitude and behavioral intention
toward sustainable fashion products: Focus on sustainable knowledge sources and
knowledge types. Journal of Global Fashion Marketing, 7(2), pp.103-119.
Ludwichowska, G., Romaniuk, J. and Nenycz-Thiel, M., 2017. Systematic response errors in
self-reported category buying frequencies. European Journal of Marketing.
Millar, E. and Searcy, C., 2020. The presence of citizen science in sustainability
reporting. Sustainability Accounting, Management and Policy Journal.
Po, R.C., 2018. Tea, porcelain, and silk: Chinese exports to the West in the early modern period.
In Oxford Research Encyclopedia of Asian History.
Scher, A. and Berlet, C., 2016. The Tea Party Moment. In Understanding the Tea Party
Movement (pp. 113-138). Routledge.
Shao and et. al., 2016. Social media micro-film marketing by Chinese destinations: The case of
Shaoxing. Tourism Management, 54, pp.439-451.
Thomas, M., 2018. The financial times guide to social media strategy: boost your business,
manage risk and develop your personal brand. Pearson UK.