Marketing+Analysis

The cereal tea is a new beverage product in local super market of Britain. Generally, tea is a common drink of every kind of people therefore the target customer of this product will be people in every genders and every ages. For the market analysis, it will focus on market size, growth and trends of the cereal and tea market in Britain. Secondly, market segment will be explained about the size growth and trends. Thirdly, buyer behavior, purchase and competitive situation will be discussed. Lastly, the SWOT analysis and marketing strategy will be conducted in order to differentiate the advantage and competitive edge. The tea market made profit over 2009 and 2010 from the economic downturn and adverse winters, that made tea became comfort factor much more famous (Mintel, 2011). Tea is highly susceptible on supermarket sales, with the multiples accounting for around 84% of all value sales. Consumer being more planned in their purchase decisions has helped insulate it from lack of sales. Major multiples have done well during the recession. However, the category is increasingly recognizing the potential opportunities it has within the convenience sector (Mintel, 2011). Source: SymphonyIRI Group/Mintel estimate **Figure I:** Retail sales price per kg for the UK in-home tea market, 2005-15 From figure I, during 2005 to 2010, retail sales price of tea market in the UK gradually increase and it demonstrates that the trends will continually grow from 2010 to 2015. This shows that there is a potential for organizations to compete in the market. Also, there is opportunities to develop and introduce new products and gain market share. The tea market needs to replace the altercation of standard English tea consumption by increasing herbal and speciality teas sales amount. However, growth in these areas has been deliberated (Mintel, 2011). **Demographic** Demographic segmentation will be used to segment the market group. The target group for this product can be both female and male as both genders can be health concerned. In this case the age of the target group can be divided into 3 types. The first type is teenagers around 15-20 years old who always want to try new product. The second type is young adults and adults age ranging between 21-35 who would like to stay fit and firm. The last type is older people from 35 years old upwards who are concerned about their health. **Lifestyles Segmentation** The second market segmentation that will be used is the lifestyles segmentation which divides customers by their hobbies, interests, and other aspects of their lifestyles. According to the type of product, the main target group would be those who are health concerned and would like to consume healthy food.
 * Market analysis and develop a basic marketing plan **
 * Market size, growth and trends **
 * Market segmentation **

For the consumption behavior, consumer who prefer the variety of the new taste of tea and the Asian people who familiar with the taste of cereal tea which is exist in the market will be likely to be interested in this innovative product because of there is only the cereal that is available in the Asian supermarket in Britain. Cereal tea would be placed and categorized as drink and beverage product rather than cereal and pulses category. There are many kind of tea sold in the local supermarket. While standard tea is a popular beverage amongst 83% of adult Britons, evenly spread by demographics and with main differences being in frequency of drinking rather than penetration, herbal tea has a rather more distinct consumer profile (mintel, 2009). However, the product could be developed by the additional of health benefit ingredient in order to beat the competitors and pushing the product into the market. The majority of herbal tea drinkers is women, 45-54s followed by 25-34s, ABC1s and Londoners. Herbal tea that is the similar product to the cereal tea then has a feminine, affluent and urban appeal. With just 15% of men drinking herbal tea as opposed to 27% of women, it could clearly benefit from some male-specific marketing (euromonitor, 2011). In fact, supermarkets/hypermarkets continued to dominate sales of tea throughout the review period, accounting for 88% of off-trade volume sales in 2010. The channel lost value share slightly to discounters in 2010, however. This was due to discounters offering a wider range of fruit/herbal tea, green tea and “other” tea. This trend was also due to consumers shopping more frequently for groceries in discounters, as they sought to minimise expenditure as a result of the economic downturn. The product would be sold in the local supermarket and hypermarket that basically distribute by the convenience selling. There are two major of tea brand selling in the UK, Unilever and Tetley, were the leading players in tea in 2010, accounting for 22% and 20% off-trade value share respectively. These players benefit from wide distribution and strong marketing support but mainly owe their lead to the heritage of their PG Tips and Tetley brands. These brands enjoy strong customer loyalty in the UK (Euromonitor, 2011). For the Asian tea existing in the market, there is no cereal tea that has been added the pulses. Obviously this new product does not have direct competitor but could be compared with the existed imported tea from Asian that has a similar taste but is different in the ingredient and taste. On the other hand, the cereal flavor tea that is available in the market has to serve as cold but our product has to be served as hot temperature.
 * Buyer behavior and purchase situation **
 * Competitive situation **