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New Zealand

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New Zealand Julie Prinner, Rachel Lehman, Liz Ferneding, Brad Rowley Product Product Flavors 25% of New Zealanders report that they love to try new things 52% report ... – PowerPoint PPT presentation

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Title: New Zealand


1
New Zealand
  • Julie Prinner, Rachel Lehman,
  • Liz Ferneding, Brad Rowley

2
Product
3
Product
  • Flavors
  • 25 of New Zealanders report that they love to
    try new things
  • 52 report that they keep up with new things, but
    do not go out of their way to try new things
  • 23 dont waste their time with new things.
  • This percentage is very low in comparison to
    other countries such as China where 50 do not
    waste their time with new products.
  • Since the New Zealanders are receptive to new
    products and tastes they would be willing to try
    new flavors of tea that are not currently on the
    market, giving Lipton a competitive advantage.

4
Product
  • Packaging
  • Convenience and Portability
  • People are working longer hours than before and
    married women with children are also entering the
    work force.
  • Global trends show that convenience and ease of
    use are key in consumers choices.
  • Due to the on the go mentality of New
    Zealanders product convenience is stressed.
  • The majority of non-alcoholic beverages in New
    Zealand are packaged in PET bottles (plastic)
    with aluminum cans and glass packaging declining
    in use.
  • Focus on Health
  • 43 exercise more than three times per week
  • It would be important to position the product as
    a healthy alternative to soft drinks.

5
Product
  • Language
  • English and Maori
  • English is the official language of New Zealand
    and less than 10 of the population are of Maori
    descent.
  • Due to the current position of Lipton in
    Australia, a more standardized approach can be
    used while entering New Zealand and language
    changes would not be necessary, therefore
    reducing costs.
  • Labeling
  • New Zealand has a 99 literacy rate
  • A standardized written label could be used in New
    Zealand due to their literacy rate, which could
    be an issue in lesser developed countries.

6
Price
7
Price
  • Retail Price
  • Per Capita Income
  • 21,600 per person
  • Could be priced similarly to the U.S. price of
    tea because of the similar income.
  • Grocery Expenditures
  • The average amount spent on groceries per month
    ranges from 300-400.
  • The average New Zealand household (2.7 people)
    spends 11.00 per week on beverages.
  • Based on average consumption and income our
    intended price of Lipton would be in the reach of
    our customers.

8
Price
  • Competition
  • Tea
  • Bushells (Unilever)
  • Leading tea brand in New Zealand
  • Lan-Choo (Unilever)
  • Choysa (Unilever)
  • Fruit juices
  • Soft Drinks
  • Coke/Diet coke/Caffeine Free Diet Coke, Fanta,
    Sprite, Lift/Diet Lift
  • Accounts for 40.2 of New Zealands Beverage
    market
  • Energy Drinks
  • Lift Plus
  • Powerade

9
Place
10
Place
  • Geography
  • Islands
  • North and South
  • The separation of land by the Cook Strait, poses
    transportation problems.
  • North Island
  • Active volcanic interior surrounded by geysers
    and hot springs.
  • South Island
  • Large mountainous area due to the
    Southern Alps and surrounding hill
    countries.
  • Coastal plains and mountainous terrain dominate
    New Zealands geography.
  • Due to the unusual terrain of New
    Zealand distribution issues such as
    transportation issues could arise.

11
Place
  • Geography
  • Population Density
  • Approximately 80 of the population lives in New
    Zealands major cities.
  • Iced tea would mainly be sold in cities like
    Auckland and Christchurch.

12
Place
  • Manufacturing
  • Pepsi Lipton Tea Partnership focusing on existing
    Lipton RTD tea in Australia with an emphasis on
    expansion in New Zealand
  • Pepsi contributes extensive bottling and
    distribution networks
  • Unilever currently has 9 major distribution
    centers in Australia and New Zealand
  • Orders are no longer placed in Australia, using
    statistical forecasting to drive the supply chain
    stock is accessed directly in the New Zealand
    distribution centers and replenished through
    integration
  • Manufacturers are supported by a number of New
    Zealand based packaging and ingredient suppliers,
    and a large array of companies from service
    industries such as distribution, Information
    Technology, and advertising

13
Place
  • Current Distribution Methods
  • Australia offers a distribution option since it
    is such a heavy trade partner with New Zealand.
  • New Zealand and Australia currently hold a free
    trade agreement allowing for tax free trade.
  • Lipton is currently marketing their RTD tea line
    in Australia and due to the close geographic
    proximity of New Zealand, distribution networks
    could be easily established.

14
Place
  • Current Distribution Methods
  • There are over 75 New Zealand companies involved
    in manufacturing and importing RTD beverages
  • PCNA bottlers
  • Exist in the US (work with Pepsi-Lipton) and also
    exist in New Zealand
  • In charge of marketing, promotion and advertising
    as well
  • Other (Coke)
  • Bottles the products in their factories then
    ships them to a warehouse where they are then
    distributed to the individual outlets using
    mostly trucks

15
Place
  • Current Distribution Methods
  • Distribution Methods of Beverages
  • Grocery- manufacturers of grocery items sell
    their branded products via a retailer to the
    consumer
  • Brand Owner Retailer- retailers that manufacture
    their own branded groceries or merchandise for
    direct sale to the consumer via outlets
  • Retailers- owners/operators of outlets that sell
    products and materials directly to the consumers

16
Place
  • Trade
  • Export Partners
  • Australia accounts for 21.8 of New Zealands
    export business
  • Import Partners
  • Australia controls 22.2 of New Zealands import
    products
  • Due to the fact that Australia and New Zealand
    have a long standing trade partnership, importing
    and exporting goods would be a familiar
    distribution pattern.

17
Place
  • Transportation in New Zealand
  • Railways
  • 3,898 km
  • Highways
  • 92,053 total
  • Waterways
  • 1,609
  • Ports and harbors Auckland, Christchurch,
    Dunedin, Tauranga, Wellington
  • Over 90 of exports and imports by value and
    nearly 99 by volume are carried by sea
  • 13 major commercial ports, 4 of which are partly
    privatized
  • Airports
  • 113
  • A developed infrastructure provides extensive
    transportation options, both by land and sea to
    get the product into the hands of the consumer.

18
Place
  • Beverage Distribution
  • Major grocery outlets, such as
    supermarkets/hypermarkets, lead the beverage
    distribution in New Zealand
  • Two companies dominating the grocery sector are
    Progressive Enterprises Ltd and Foodstuffs Ltd,
    which is comprised of three separate companies
    and have several chains.
  • Slowly changing towards convenience stores, due
    to busier consumers and their changing needs
    towards convenient products
  • Shelf space is readily available in New Zealands
    supermarkets.

19
Place
  • Beverage Distribution
  • Specialty Stores
  • In New Zealand, smaller specialty stores like
    butcheries and bakeries are more prevalent.
  • 37 of New Zealanders buy their groceries at two
    or more stores.
  • Iced Tea would need to be placed in a wider
    variety of locations to gain full market
    potential, therefore increasing the distribution
    network.

20
Promotion
21
Promotion
  • Consumer Behavior
  • New Zealands new aged beverage market is
    projected to reach a value of 77.4 million.
  • An increase of 43.7 since 2003
  • Iced Tea is the leading source of revenue for new
    aged beverages.
  • Accounts for 91 of the markets value.
  • Since there is a growing market for iced tea, it
    would be wise for Lipton to enter the emerging
    market.

22
Promotion
  • Consumer Behavior
  • Hofstede Indexes
  • 79 Individualism- Everyone is special mentality,
    self-focused, limited family.
  • A campaign focused on the individual benefits
    sought from the product would be key.
  • 49 Uncertainty Avoidance- Rule Oriented Society,
    but accept changes and variety of opinions.
  • 30 Long Term Orientation- Not deeply rooted in
    tradition, change can occur quickly.
  • Due to the nature of this society, Lipton could
    enter its product into the market without fear of
    rejection.

23
Promotion
  • Media Options
  • Radio Broadcast Stations
  • 124 AM
  • 290 FM
  • 4 Shortwave
  • Television Stations
  • 41
  • plus 52 medium power repeaters and over 650 low
    power repeaters
  • Internet
  • 474,395 hosts
  • 2.11 million users
  • The vast media availability throughout the
    country allows for a variety of promotional
    options.

24
Promotion
  • Television
  • TV advertising is expensive, but reaches 98 of
    all households in New Zealand.
  • In 2003 New Zealanders spent 2 hours and 53
    minutes on average per day watching television.
  • There are five major channels in New Zealand of
    them, TV 1 is the most popular channel.
  • TV2 is watched by people 18-39 which attracts
    marketers because of the variety and market
    dominance of this group.

25
Promotion
  • Internet
  • Internet advertising is relatively cheap and use
    is rapidly growing, with 78 of New Zealanders
    (ages 10) now able to access the Internet from
    any location.
  • 81 are considered regular users of the internet.
  • This group accesses the internet at least once
    every four weeks.
  • 52 have access from their home.

26
Promotion
  • Newspaper and Magazines
  • Newspaper and Magazine advertising is cheaper
    than television advertising, but less likely to
    be seen.
  • 80 of New Zealanders get a daily newspaper.
  • Magazine consumption is dominated by women in New
    Zealand.
  • Three of the six top selling magazines are
    womens magazines.
  • NZ Womans Weekly
  • Woman's Day
  • Australian Women's Weekly

27
Promotion
  • Current Message of Lipton
  • Lipton
  • Be yourself, naturally
  • Theme of refreshing
  • Stereotypical youth social scenarios
  • Superficial politeness between characters but
    dialogue is refreshingly honest and frank
  • These themes target a youthful drinker
    specifically and also appeal to the active
    lifestyles of New Zealanders.
  • Unilever New Zealand Limited wants to make the
    brand more prominent and appeal to a younger,
    more contemporary audience in order to promote
    consumption and future long term loyalty

28
Promotion
  • Position of Competitors
  • Coca Cola
  • Waves of Freedom
  • Advertising that features kite surfing (popular
    summer extreme sport)
  • Advertises popular events and sports throughout
    the country during their respective seasons.
  • Due to the emerging trend of healthy beverages,
    Lipton could gain a competitive advantage over
    soft drink companies with their current health
    and vitality approach.

29
Summary
  • Product Issues
  • Packaging
  • Product Positioning
  • Pricing Issues
  • Per Capita Income
  • Competition
  • Place Issues
  • Terrain
  • Location of Production Facility
  • Wide distribution network
  • Promotion Issues
  • Benefits Sought
  • Media Pricing
  • Media Reach
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