This report serves the formulation of an Advertising Communications Strategy for ‘KJM Food Ltd. ‘ [KJM] – a German blender and supplier of tea and speciality teas. KJM wants to launch a new black tea brand, named ‘SOUL’ into the UK market. Black tea is one of the most popular hot beverages in Europe and originates from the ‘Camellia Sinensis Tree’. It is derived from its leaves that have been withered, rolled, fermented, and then fired. Due to the nature of the product SOUL will be launched after the summer months.
KJM has consulted the advertising agency ‘Flavour’ to assist in this matter and the following report summarizes the agency’s recommendations based on results of several marketing examinations which can be found in detail in appendices attached. Flavour will define a clear, consumer-relevant USP, clear positioning against the market competition and recommendations for an effective Brand Media Strategy as the basis of an integrated marketing concept.
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This report is build upon a situation analysis, by means of PEST and SWOT analyses, which are looking at internal and external factors affecting KJM and their new brand launch. Both analyses help identifying the environment, markets, customer as well as the competition. PEST and SWOT analyses are based on secondary data and detailed results can be found in appendices 1 and 2 on pages I to III. 2. 1 Market size and trends Cultural changes towards a faster lifestyle have proven to distract people from tea and a health and fitness ethic is strengthening.
Consumers in the UK are becoming more and more health conscious with markets diversifying into healthier options. Tea needs a little preparation time prior to consumption and with an unhealthy image, due to its caffeine content, it has become less popular. However, traditional black tea is regarded as a commodity item and it shows little seasonality [slight rise in consumption during winter period]. Excessive coffee consumption is ‘out’, due to various social factors, which generally could offer further potential for tea.
The Tea market in general is ‘high interest’ – accordingly, only brands with relevant emotional values will be able to form bonds with consumers. On a global basis Britons belong to the top in the tea league – after Turkey and just ahead of Ireland and Hong Kong. However, the British tradition of ‘tea time’ is fading and overall tea consumption is on a decline. According to Datamonitor’s latest research into the global tea market UK consumers bought 114m kg of teabags in 2002, down from 127m kg in 1997.