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Internal Strengths
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Internal weakness
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The company has a great experience in operating in the tea market of Canada.
This beverage company has a clear strategic direction.
The marketing department of the company finds out creative and innovative ideas for a successful marketing of the product (Redrosetea.com, 2018).
The company has a rich background hence never fail to gain monetary assistance.
The company provides free collectible premiums with each packet which attracts their customers.
Beside producing tea, the company also sales the additional products associated with their main products.
The company has several branches in the business cities of the USA.
It utilities the digital platforms for marketing and selling their products.
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The company does not have a good management team that takes care of the work culture within the organization. Therefore, many employee issues are being emerging.
Red Rose Tea offers a limited number of variety or flavours which is the main reason it is lagged behind in the competition in the market.
The brand does not want to change its product development plans hence does not focus on the health benefits of drinking tea which other parts are promoting.
The company does not have a strong market image which may provide it a competitive advantage then other companies of similar products
The company has limited offerings in compared to the other tea producing organisations.
The management system of the company is not very positive in having a change in the organisation.
The marketing strategies of the company is not very strong and it does not use digital advertisements in the popular social networking sites so that people know about it.
Due to weak marketing plan the customers do not have a clear picture in their minds hence choose another popular brand while making buying decision.
The company’s distribution channels are not very strong therefore, it is not very popular among the mass segment.
The fixed cost of the company has been increased for the increase of tax amount in the country.
The range of segmentation is very low hence cannot apply to large market.
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External opportunities
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External threats
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Red Rose tea has a popular brand image among a large section of the Canadian market. Therefore, the company can get the opportunity for new acquisitions, through this, the organization will be able to develop new teams for marketing and innovation.
As the company offers a high quality premium tea leaves without any flavours, it can have a huge market in the foreign countries especially in the European countries.
As mentioned before, the company has enough capital if it wants to venture new markets. It has available monetary assistance providers which will help the company in new ventures.
Income level of the customers around the globe has been increasing so also the level of living standards. More people are being preferring tea as healthier alternatives among the range of numerous beverages.
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Red Rod Tea can face some serious threats due to its poor line of products. It does not have a range of flavours which its competitors offer.
In different countries, it can face advance government policies as the company does not have any updated norms, fit for doing business in the diverse markets.
Increasing costs is one of the most dangerous threats which can affect the company greatly.
Other tea sellers both national as well as international have been entering the USA market and these are having more offering and flavours than that of Red Rose Tea.
New companies are marketing their products focussing on the health perspectives hence gaining more market penetration and popularity.
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Segment name
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The young generation to middle age
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Benefits sought
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Strengthening immune system, cleansing intestines, feeling fresh, cardiac problems, bad breath and tooth decay.
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Demographics
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Age: 20 to 40 years, Family size: both small and large families Income group: higher and middle class groups Gender: both working men and women, Education: socially and politically aware, well educated people.
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Cohorts
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The baby boomers
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Psychographics
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Comfort and convenience seeking people, Consumers active in the social discourses, Luxury oriented people.
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Usage rate
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0.508 kg (17.9 oz.) per capita
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Usage situation
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Regular in breakfast and in parties. Mainly to feel fresh and healthy
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Example
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It will have a celebrity brand ambassador from the sports or music industry.
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Positioning:
Red Rose Tea was established in Canada but has been existing in the United States since 1920s. The company is owned by Redco Foods which is a subsidiary of Unilever in Canada and by Teekanne in the United States. This tea brand was previously owned by the Brooke Bond Foods of the UK. The tea is one of the most popular among all the traditional companies with great legacy of offering highest quality tea leaves along with different flavours. As the company has enough capital to invest, it can enter the foreign markets without any barriers. Moreover, despite it has been serving the markets of northern part of America, can venture in the European markets also (Siguaw & Simpson, 2015).
Product mix:
- This particular brand makes their product from the choicest tea leaves which are of best quality as well as superior taste.
- Red Rose Tea have always been graded for its quality. Each packet of this brand bears the heritage of unique taste and fragrance of high quality tea leaves.
- The western market has been preferring coffee to tea hence the market penetration has been gradually increasing as tea has been granted as a healthier option.
Price mix:
- This popular brand of tea provides cost advantages to its customers than any other popular tea brands operating in the market of Canada.
- The company always maintain competitive price, which is much lesser than that of its competitors.
- High quality tea leaves are offered at low price that ensures propositioning of value
Promotional mix:
- Tastes just like your favourite dessert campaign
- Blossom tea collection
- Online marketing and delivery of products
- Promotion through tea cards and figurines.
Place mix:
- The tea leaves are cultivated across the Red Rose Tea estates located inLittle Falls, New York.
- Packaged stock keeping units are sold at exclusive stores and convenience grocery shops.
References:
Byrd-Bredbenner, C., Delaney, C., Martin-Biggers, J., Koenings, M., & Quick, V. (2017). The marketing plan and outcome indicators for recruiting and retaining parents in the HomeStyles randomized controlled trial. Trials, 18(1), 540.
Gupta, P., & Shukla, S. (2017). Marketing, Advertising or Promotions: A Strategic Planning. Journal of Accounting, Finance & Marketing Technology, 1(1), 8-13.
Redrosetea.com. (2018). Who We Are. Redrosetea.com. Retrieved 13 March 2018, from https://redrosetea.com/who-we-are
Siguaw, J. A., & Simpson, P. M. (2015). A marketing plan for marketing instruction: A satirical look at student comments. In Creating and Delivering Value in Marketing (pp. 129-133). Springer, Cham.
