Strategic Marketing Plan for Yorkshire Tea: Market Analysis

This report provides a strategic marketing analysis of Yorkshire Tea, examining its market size, target audience, and competitive landscape, which includes key players like PG Tips and Tetley. It delves into macro and microeconomic factors influencing the company, using a PESTLE analysis to assess political, economic, social, technological, legal, and environmental elements. The report also covers customer and stakeholder analysis, defining strategic marketing objectives such as acquiring a 40% market share by 2025 and increasing technology usage in production by 2023. The study concludes that a well-defined marketing plan is crucial for achieving business objectives and navigating market opportunities and threats, and that Desklib provides students with access to similar solved assignments and past papers.

STRATEGIC
MARKETING

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TABLE OF CONTENT
• INTRODUCTION
• MARKET SIZE AND TARGET
• COMPETITORS ANLYSIS
• MACRO AND MICRO FACTORS
• DIFFICULTIES FACED BY MANAGER
• CUSTOMER ANALYIS
• STAKEHOLDER ANALYSIS
• STAKEHOLDER MARKETING OBJETCIVE
• CONCLUSION

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INTRODUCTION
• Strategic marketing refers to the use of marketing discipline in order to
achieve organizational goals by maintaining and developing a sustainable
competitive edge in the market.
• It addresses high level consideration which are the markets that the
company wants to target, further what types of services that the company
will offer in the near future and how the company will promote their
products and services and make their pricing model viable.
• This report will cover the internal and external environment of Yorkshire
tea. Further the strategic marketing objectives for the company are
discussed.

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MARKET SIZE AND
TARGET
• Market size- The global tea market was valued around
12.63 Billion USD in the year 2018 and the industry is
likely to grow at CAGR of 5.5% from the year 2019.
• Target- The target market of tea industry and Yorkshire tea
are the people who are looking for a substitute for products
such as coffee.

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COMPETITORS
ANALYSIS
• The current Tea industry of UK is majorly
dominated by five brands that are PG tips,
Tetley, Typhoo, Twinning’s and Yorkshire
tea.
• These companies have a decent goodwill and
sales in the market which is directly
associated with increased demand of the tea
products offered by these brands.

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MACRO AND MICRO ECONOMIC FACTORS
Strengths Weaknesses
 Major strength of Yorkshire Tea is their quality products and packaging of
that products.
 They have a good reputation in the market and they are considered under
the top 5 tea companies of UK.
 There is a lack of quality monitoring standards in the industry and the
company which leads to ignorance of the quality they provide in the market.
 Decreasing trend of availability of workforces.
Opportunities Threats
 Expansion in other major countries is one of the biggest opportunity for
Yorkshire Tea.
 Worldwide awareness of health benefits of drinking green tea.
 Competition with other major FMCG companies providing tea products in
the market.
 Climate change impact on the growth of tea plantation.

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PESTLE ANALYSIS
Political Economic Social
Favourable factors for Yorkshire Tea- Decrease in taxes
and relaxed FDI norms helps Yorkshire Tea to manage
their operations in an effective and profitable manner.
Unfavourable factors for Yorkshire Tea- Fssai norms
are one of the major unfavourable factor for the
company as they negatively impact the way in which
the company operates.
Favourable factors for Yorkshire Tea- The tea company can
employ people for tea plantation and importing activities which
will help in terms of solving the unemployment problem in the
country along with solving the low manpower problem for the
organisation.
Unfavourable factors for Yorkshire Tea- The inflation rate and
other such factors negatively impact the company as they have
to change their operational strategy according to the new
economic policies.
Favourable factors for Yorkshire Tea- The positive part for the
company is that there is no specific age group that prefers
tea. This is generally consumed by every age group and thus
there is no constraint in terms of this factor.
Unfavourable factors for Yorkshire Tea- The negative factor is
change in taste and behaviour of the customers which
negatively impacts the business.

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PESTLE ANALYSIS
Technological Legal Environmental
Favourable factors for Yorkshire Tea-
Advancement in the technology field will help
the company in terms of increasing efficiency in
the production and distribution process.
Unfavourable factors for Yorkshire Tea- Not able
to adopt to the new set of technology which is
there in the market.
Favourable factors for Yorkshire Tea- The legal policies and
procedure made for favour of the company will help in
maintaining the operations of the company.
Unfavourable factors for Yorkshire Tea- The legal factors
that are against the business model will be a negative
factor for Yorkshire Tea.
Favourable factors for Yorkshire Tea- The environment
which is in favour of tea plantation will help in terms of
good planting of tea which is directly related to
increasing productivity.
Unfavourable factors for Yorkshire Tea- A good
environment for tea plantation will help in terms of
increasing the productivity.

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CUSTOMER ANALYSIS
• The customer analysis is done by analyzing the target
audience of the tea product offered by Yorkshire Tea.
• Tea and coffee are considered as substitute process and
the target audience of the company would be people
who prefer tea over coffee or are looking for substitute
product of coffee.

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STAKEHOLDER ANALYSIS
Interest
Low High
Power/Influence High (Keep satisfied)
Customers
(Monitor closely) Employees/
shareholders
Low (Monitor) Suppliers (Keep informed) government

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STRATEGIC MARKETING OBJECTIVE
• Yorkshire Tea is looking to acquire at least 40% of the tea market share by the year 2025.
• Yorkshire Tea will increase the usage of technology in their production and supply chain
process by the year 2023.
• Yorkshire tea will increase their production by 30% by the year end in order to make the
products available to the customers as per the demands.

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CONCLUSION
• From the above report it can be concluded that marketing plan plays a major role in deriving
objectives of the business.
• The organization should critically evaluate the marketing plan and develop a strategic
marketing objective for the organization.
• This will help the business in dealing with threats and opportunities.