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New Zealand

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 that they keep up with new things, but do not go out of their way to try new things

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New Zealand

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  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% don’t 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 Zealand’s 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 Zealand’s 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 Zealand’s 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 Zealand’s export business • Import Partners • Australia controls 22.2% of New Zealand’s 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 Zealand’s 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 Zealand’s 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 market’s 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 Zealander’s get a daily newspaper. • Magazine consumption is dominated by women in New Zealand. • Three of the six top selling magazines are women’s magazines. • NZ Woman’s 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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