MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY OPEN UNIVERSITY

PRINCIPLES OF MARKETING

DEVELOPING A NEW PRODUCT

LIPTON ARTICHOKE BOTTLED TEA

Lecturer: Do Khac Xuan Diem

Students:Dang Le Khanh Linh

Nguyen Hoang Ha Trang

Nguyen Song Minh Thu

Tran Tuyet Minh

Class: EL195C
Contents
INTRODUCTION.......................................................................................................................................3
1. Unilever...............................................................................................................................................3
2. Unilever Vietnam................................................................................................................................3
3. Lipton..................................................................................................................................................4
NEW PRODUCT DEVELOPMENT..........................................................................................................4
1. Idea generation....................................................................................................................................4
a. Company analysis............................................................................................................................4
b. External environment analysis.............................................................................................................8
2. Idea screening....................................................................................................................................15
3. Concept development and testing......................................................................................................16
4. Marketing strategy development for the new product........................................................................18
CONCLUSION.........................................................................................................................................19
 INTRODUCTION
1. Unilever
Unilever was formed in the 1890s by the merger of two companies, Lever Brothers
(a soap company in the United Kingdom) and Margarine (a real butter company in the
Netherlands). The company's headquarters are currently located in London (UK) and
Rotterdam (Netherlands), and its shares are listed on two stock exchanges in London and
Rotterdam. Unilever is a global British and Dutch corporation known for manufacturing
and fast-moving consumer products such as personal and household hygiene products,
food, tea, and beverages. Unilever's well-known brands include Lipton, Knorr, Omo,
Lux, Vim, Lifebuoy, Dove, Close-Up, Clear, Pond's, Hazeline, Vaseline, and others.
Unilever is one of the world's most successful companies in the field, with over 265 000
employees working in more than 500 companies in 90 countries around the world and an
annual global profit of around 40 billion euros. consumer health care industry (Personal
Care).

2. Unilever Vietnam
Unilever Vietnam has been officially established in Vietnam since 1995 and has
grown into one of the most successful companies in Vietnam's FMCG industry,
contributing positively to the country's sustainable socio-economic development for more
than 25 years. Since 2010, as part of Unilever's Sustainable Living Initiative, we have
been taking action to help millions improve their health and well-being, halve our carbon
footprint and improve data as we grow our business. livelihoods of millions. Unilever
Vienam has made significant progress and continue to achieve our ambitions - most
recently, committed to ensuring that by 2025, 100% of plastic packaging is fully reusable,
recyclable or compostable, rated 4 years by the Vietnamese government" Leading
Sustainability Business" for many years in a row (2016-2019) thanks to their efforts to
"Make Every Day a Sustainable Living".
 The company has been voted the Best Place to Work and Most Popular Employers in
Vietnam since 2013, and was awarded the Best Place to Work in Asia by HR Asia in
2019. Unilever Vietnam has also received the First, Second and Third Labour Medals
from the President in 2000, 2005 and 2010.

3. Lipton
Lipton is one of the world's most popular tea brands, with a presence in over 150
countries. In addition, Lipton is one of the most powerful beverage brands in the global
tea market. Thomas Lipton, a visionary, founded the Lipton tea brand in the 1880s. He
did not give up on his passion despite the initial difficulties and challenges when he was
just getting started. Finally, he was successful because of the unique and wonderful idea
of packaging tea in small packages of 100 grams and 200 grams to meet the needs of
consumers. So far, Lipton has become one of Unilever's most well-known and best-
selling tea brands. The brand is also present in over 110 countries worldwide, with
particular popularity in Europe, North America, and Asia.

Lipton has launched many different types of tea with many different flavors in the
process of formation and development in order to provide consumers with diverse
choices. The four major product lines of Lipton

-        Lipton tea bag

-        Lipton instant tea

-        Lipton tea can

-        Bottled tea.

NEW PRODUCT DEVELOPMENT

1. Idea generation 
a. Company analysis
 MARKETING
 Unilever employs a price-cutting approach in order to convince and attract more
customers (In particular, a series of product discounts of which the most significant is
OMO)

- The product distribution system must adhere to the following requirements:

constantly visible and available

- Products must always evolve in order to attract more customers and suit the
increasingly diverse current and potential needs of customers.

- Customer service that is attentive.

- Implement and fully utilize promotion and advertising information means to attract
and attract clients (commercials on television, newspapers, posters, sponsor programs,
distribution of promotional gifts, etc.).

Among the measures mentioned above, the one that the company expects and spends
the most time and money on is the implementation of propaganda and advertising
campaigns for the company's brands. The company has directed almost all of the
marketing department's activities to this work, considering it the focus of the marketing
department in the early years of the company's entry into the Vietnamese market.

 HUMAN RESOURCES

-          Unilever Vietnam, which has been named the Best Place to Work and
Favorite Employer in Vietnam numerous times, currently employs over 1,600 people
nationwide and indirectly employs tens of thousands more through third parties,
suppliers, and distributors. 

-          "People are the most important asset, the deciding component for the success
of the business," is the slogan of Unilever. In contrast to other companies, Unilever
intends for its human resources division to serve as the hub and engine of the whole
company. The Strategic Partnerships Department was created by Unilever from the
Human Resources Department. Unilever provides initiatives like the Unilever Future
Leaders Program and Unilever Future Leaders' League for recent graduates as part of its
talent recruitment efforts in Vietnam. To prepare interns to work at Unilever, there is a
program called Management Trainee (for Future Leaders). Every employee, whether new
or experienced, has the chance to learn from and experience working in the company
thanks to Unilever. The Strategic Partnership Department also increases prospects for
employment and education in higher-level roles including team leader, department head,
and leader.

 MANUFACTURING / OPERATIONS

 Infrastructure Unilever, one of the top FMCG companies in the world, places a
strong emphasis on product quality enhancement in addition to innovative marketing
strategies to better meet the demands of customers. utilized in the development of
cutting-edge industrial facilities. Unilever now operates two international-standard plants
in Vietnam, which are situated in Cu Chi and Bac Ninh. Unilever builds a library space in
addition to concentrating on infrastructure and tools that promote employee productivity,
such multimedia conference rooms, cutting-edge electronic library systems, computers,
etc. Thanks to the system of gyms, beauty parlors, etc., relaxing helps employees work
without feeling constricted. Production in accordance with the strategy and procedure to
guarantee the market's source. Unilever Vietnam's production processes are the same as
those used by all other Unilever Group firms worldwide. Vietnamese engineers also
supervise the production process and the quality of the finished product. Unilever
Vietnam now operates 5 plants in the industrial parks in Hanoi, Bac Ninh, Cu Chi, Thu
Duc, and Bien Hoa. Since the company's foundation in 1995, Unilever Vietnam's facility
in Cu Chi, which was constructed on a 12.5 hectare site in the Northwest Industrial Park -
Cu Chi, has been crucial to the company's activities
  FINANCE

 Since the company's projects began operating steadily and profitably, Unilever
Vietnam's sales and profits have increased by about 30-35% per year on average. If the
company's sales in 1995 were 20 million USD, 40 million USD in 1996, 85 million USD
in 1998, and 240 million USD by the end of 2002, the company's sales are now around
240 million USD. Unilever Vietnam has proven to be the most successful foreign
company in Vietnam today, with such rapid growth.

 Strengths and weaknesses of the company

Strength

 One of the most well-known tea brands: Lipton is one of the most well-
known tea brands in the world. It is unique in terms of tea variety, and it has
experimented with various variants, several of which have been successful.
  Quality is emphasized: Through research and development, the company is
able to provide consumers with improved and innovative products. Lipton
Unilever was founded with the primary goal of providing uncompromised quality,
and all of its products are regarded by consumers as the best in the business in
terms of quality. They maintain their high standards of quality by importing
professional expertise and technology from developed countries.
 In-house research facility: Lipton Unilever has an in-house research facility
where market research on consumer preferences and competitors can be
conducted; the information is very useful to top-level managers in making
decisions.
 Loved tasted: Lipton has a variety of brands, and the Lipton yellow label is
well-known in many countries. Similarly, its iced tea and green tea have
widespread popularity, and the flavor is adored around the world.
 Good Marketing: Lipton has always participated in good marketing
campaigns that emphasize the freshness of their tea. As a product of Unilever,
Lipton has access to the best marketing agencies to support the brand's marketing
communications

Weakness:

High Price: Since the cost of production of most of their products is high because of
various factors(imported ingredients, technology, quality and maintenance), they charge
high prices for the items they produce.

b. External environment analysis

 Existing customers

Depending on their ages, income levels, and what they want from Unilever, the
clients or customers of the company can be categorized into different groups. Different
ages make up Unilever's customer base.. The age range for the personal and home care
segment is 14 to 45, and the income range is high to medium. Ages 5 and higher make up
the food segment, which favors savory and healthy foods. Unilever's product costs
include production, packaging, marketing, and distribution expenses that are also factored
into product prices. Unilever uses a variety of communication channels, and it also
researches and considers new channels for reaching out to customers. Customers of
Unilever purchase products from physical stores, online retailers, and superstores.

 Macroenvironment analysis 
 Psychographic Environment: People who lead a hectic lifestyle and are
looking for "something quick" and are concerned health-conscious individuals.

 Demographics Environment: According to the collected findings,

Vietnam is in a "golden demographic" stage, with the working age group being
twice as large as the dependent age group. Demographics have a significant impact
on the structure of demand and the characteristics of demand for certain goods and
services.So it can be seen that Vietnam has a young demographic, which provides
Unilever with many opportunities to offer new products to customers

 Cultural environment: Vietnamese are receptive to new things have

innovative perspectives and welcome new things as long as they fit their way of
life and way of thinking. They like to use new products, always new, and even if
they don't know the specific product, promoting the company's products is not too
much of a problem. It's not hard because Vietnamese people are curious, and when
advertising, the company just needs to arouse their curiosity and the product will
be successful. 

 Economics environment: Vietnam's economy is expanding, and the

industry structure has shifted to reflect the trend of expanding trade and service
industries while reducing the agricultural sector. Being aware of this enables
 Unilever to offer products that are appropriate for market needs, in line with the
company's development strategy. Vietnam's economic growth rate has been among
the most stable in the region in recent years, but it is not truly sustainable.

 Natural environment: Vietnam's climate is a tropical monsoon country,

which creates favorable conditions for seasonal product sales and provides
opportunities for many different product lines to enter the market

 Social and political environment: Investors are positive about the market
due to political stability and consistency of major policy positions. As a result, this
is the component that draws a significant amount of international investment to
Vietnam. A solid political backdrop, on the other hand, promotes to the
encouragement of enterprise output. Enterprises are not under pressure from
political instability and have fundamental manufacturing conditions. Political
stability attracts foreign capital investment, and firms may rely on that capital to
enhance production and market share.

 Technological environment: Unilever Vietnam consistently invests in and

focuses on its technological research and development. Modern technology is
transferred quickly and effectively thanks to global Unilever.The efforts of modern
science and technology, combined with an understanding of consumer psychology,
have made it simple for Unilever's packaging designers to compile data on needs,
preferences, habits, and situations, filtering out the essential components to produce the
ideal packaging in the eyes of consumers. The design team at Unilever has everything
necessary to complete each project to the highest standards. Product delivery is altered
by technology. Unilever's products are easily and quickly delivered to customers at a
low cost and in a short amount of time thanks to modern science and technology. The
 company offers door-to-door delivery service through the Internet protocol. Customers
are extremely satisfied with this service. As a result, the business develops a reputation
and sees a sharp rise in profits. Businesses now have new channels for reaching
customers thanks to technology, such as Internet banner ads and media advertising
campaigns. As a result, consumers are becoming more familiar with Unilever's brand.
 Competitors

Currently, there are many companies that are both renowned and have a strong
presence in the market with products that people like in the bottled water and, more
specifically, bottled tea markets. Especially:

 Tan Hiep Phat (featured product: Tra Xanh Khong Do)

Tan Hiep Phat, a powerful beverage company with healthy goods that was founded
in 1994 with the predecessor of Ben Thanh Brewery, has changed people's beverage
habits. Vietnamese folks are friendlier and drink more wholesome bottled beverages.
Leading brands on the market include Tra Xanh Khong Do, Dr. Thanh, Number 1 energy
drink, Number 1 Soya soy milk, etc. 

- URC Vietnam (with C2 Green Tea ).

With a management board primarily made up of experts from India and other
countries in the region, URC Vietnam Co., Ltd., a member of the URC Group (Universal
Robina Corporation), has been operating in Vietnam. headquarters in Vietnam-Singapore
Industrial Park I since 2003. In Binh Duong, URC Company currently operates 2
factories that have received international certification.

What is the difference between bottled Lipton Artichoke Tea and competitors?

Tea has been consumed for thousands of years, particularly in Asian countries such
as China, Taiwan, Japan, Korea, and Vietnam. In some countries, drinking tea is
considered an art form, complete with rituals. Because of modern lifestyles, there is a
growing market for convenient drinking water. When talking about bottled tea products
in Vietnam, we must mention the Tra xanh khong do , C2,... However, colorants,
flavorings, and chemical sugars are commonly found in soft drinks nowadaysModern
Vietnamese people require a refreshing and healthy beverage. For health reasons, avoid
using chemical sugars and additives. In the same context, Unilever Vietnam collaborates
with a team of experts to research Lipton Artchoke Bottled Tea products, assisting
customers in their desire to be healthier and more beautiful. Both meet customers'
growing needs and bring flexible health to the hustle and bustle of daily life

  Lipton Artichoke Tra Xanh Khong C2

Botted Tea Do

Characteris Extracted from Extracted from Distilled

tics of the artichoke, sweet flavor fresh green tea, from fresh tea
ingredients extracted from licorice produced by modern leaves 100%
combined with some Japanese technology, natural Thai
herbs such as arhat, non-zero green tea Nguyen green tea
stevia, no colorants, contains high levels of combined with
flavorings, and chemical the antioxidant EGCG, synthetic lemon
sugars that helps prevent which helps fight aging, flavor. Made and
some diseases and has reduce stress, prevent bottled on the
beauty effects, anti-aging cancer, and enhance same day
skin and support weight resistance.
loss. ..

Volume 330ml and 500ml 500ml 360ml

 Opportunities and Threat of the company

Opportunites:
  Brand Equity: There is strong possibility to establish brand equity by creating
awareness in untapped segments of the market.
 Increasing concern for health: Since the Covid-19 Pandemic happened, people are
being educated about the concern and need for health awareness and therefore
have adopted increasing concern for their health and appearance

Threats

 Strong competitive pressure from major competitors: Tra Xanh Khong Do, C2….
 Import and export laws and regulations: For agriculture and tea production, there
are specific environmental requirements. The cultivation of tea as well as the
import and export of tea from one nation to another may be impacted by changes
in governmental regulations. For a famous brand like Lipton, this has always
posed a threat.

MARKETING 4P

Product:

Currently, beverage products are very diverse: various types of green tea, carbonated
soft drinks, fruit juices... these products are becoming increasingly diverse, with products
from well-known brands such as Tan Hiep Phat, Pepsi, Coca-Cola, Urc, Tribico...

Consumers' purchasing power for beverage products is extremely high, particularly

during hot seasons and Tet holiday. Consumer demand is currently directed toward
beverage products that are both refreshing and healthy, of natural origin, limiting the use
of harmful health additives.

We want to make a drink that is not only refreshing but also healthy. To create a
memorable taste, we always strive to use high-quality ingredients of natural origin that
are without harmful additives. Most soft drinks today contain colorants, flavorings, and
chemical sugars. Bottled Lipton Artichoke Tea, on the other hand, only contains healthy
ingredients like artichokes, arhats fruit, licorice, and stevia especially no sugar. We want
to make a drink that is not only refreshing but also healthy. Besides, we bottle it in barley
bioplastic, which can be reused multiple times. Furthermore, we are committed to "not
using synthetic additives or preservatives" - chemicals that are harmful to everyone's
health. Bottled artichoke tea is available in two sizes: 330ml and 500ml.

Place:

Unilever's distribution network has more than 150 distributors and more than
300,000 retailers across the country and is still growing. Unilever has an extensive
distribution network across the country to help consumers access products easily and
quickly with the best conditions. Unilever's business strategy: Grow Unilever that
doubles its strength and halves its environmental impact; use 100% agricultural raw
materials from renewable sources; we help more than 1 billion people around the world
improve hygiene, health and living conditions.

Promotion:

Bottled Lipton Artichoke Tea wants to convey the message "Healthy for a better life"
to remind people to pay attention to healthy food, using the slogan "To add vitality to
life" of Unilever in all communication activities in general and advertising in particular.

Campaigns for this new product promotion would be replicated across the media and
would emphasize the  necessity of living a healthy lifestyle.

In order to promote Bottled Lipton Artichoke Tea, the company also enters into
contracts with famous people like actors and KOLs

- TV advertising: Advertised its products on Vietnamese and local TV channels like

HTV and VTV channels. Any good movie and entertainment program will allow the
audience to watch sophisticated, cheerful, and light commercials before, after, or while
watching television. The average for Unilever Vietnam's products

- Promotion:  Implement appealing promotional campaigns to entice customers to

purchase its products, such as:

o Product discounts 

o Coupons 

o Free gifts in various forms: exchange the shell of this product for another
product, provide a trial sample to the customer, and so on. 

o Promotions for drawing or scratching tickets to win valuable prizes...

- Public relations and publicity: Combine marketing strategy for brand promotion
with university and college events, speeches, conferences, and seminars for customers.

Price

  Price Discount

Wholesaler 22.000  

Retailer 25.000(330ml)-35.000(500ml)  

Supermarkets, convenient stores, etc.   3%

2. Idea screening  
Unilever Vietnam in general and Lipton, in particular, are constantly expanding the
product range and distribution area in order to maintain and develop in the domestic
market and compete with other well-known tea brands worldwide. Having more than 20
years of experience in the Vietnamese market, Unilever offers a wide variety of high-
quality products through a widespread distribution network.

Unilever Vietnam provides for a wide range of consumer needs in addition to

launching innovative products on the market. All of today's soft drinks contain colorants
and flavorings, but what everyone needs is a beverage that is energizing and healthy
without doing so. When the product is released, the company guarantees that it will
satisfy all different types of customers, foster customer satisfaction, and always address
all different types of complaints.

Currently, the beverage product market is quite active and still has growth
momentum. Especially, the trend of using healthy, anti-cancer, preservative-free, and
gas-free drinking water is being chosen by consumers first, including tea-based drinks.
This trend is evident when surveying shopping through supermarkets.  Statistics of the
Co.op Mart supermarket system in Ho Chi Minh City show that, out of 10 people who
choose to buy soft drinks today, 6 people buy non-carbonated drinks.

 Although the product price is slightly higher than other similar products, the quality
product ensures food safety and hygiene, not only that, it also brings health benefits. This
is the factor that consumers appreciate about Lipton's products

Based on the socio-economic situation of Vietnam and the characteristics of the

target market, costs in production, transportation, distribution, product characteristics of
competitors, competitive objectives and market share maximization, bottled artichoke tea
products hit the market segment of all subjects and all ages. Taking advantage of the
extensive distribution system, and having abundant raw materials throughout the country
have contributed to significantly reducing the price of raw materials. So the price of
bottled artichoke tea is the most reasonable, enough to compete with other products on
the market.

Lipton believes that its tea is not just a simple popular drink, but it is a means to
bring something good, bright, and positive to the lifes of its customers. With its products,
the brand wants to give back and bring happiness not only to its customers but to the
planet and the farmers and their families. Also, the brand wants to keep up with time and
ensure that its tea tastes will remain desirably and great not for today, but for the future as
well. Understanding customer psychology before the current status of poor quality
products, counterfeit products on the market and putting health issues first, Lipton has
launched bottled artichoke tea products, which are always guaranteed at the highest level.
on food quality and safety.

3. Concept development and testing 

 Concept development
 Feature:

From the raw material area to the production site, dried artichokes are transported by
vehicle without being crushed, go through initial processing, and are kept in cold storage
at 0 to 2 degrees Celsius. Lipton Artichoke Bottle Tea is made entirely of artichoke which
does not contain any sugar, sweeteners, flavoring, or preservatives. The company
substitutes licorice for sugar to produce sweetness that is also healthy, especially for
diabetic patients.

Unilever Vietnam mixes herbs like sweet grass and Arhat fruit with Artichokes.
These herbs aid in liver detoxification, blood cholesterol reduction, liver cooling, and
digestion stimulation.

 Packaging

Similar to other types of food packaging, the Lipton Artichoke Tea packaging
protects milk from the penetration of outside factors like moisture, air, bacteria, and dirt.
Barley bioplastic is used by Unilever Vietnam; it is more durable and resilient than
traditional plastics, can be recycled numerous times, and is environmentally friendly.
Additionally, artichoke flower field motifs are printed on the packaging in yellow and
white, giving it a youthful and gorgeous appearance.
  Concept testing: The following questions will be used in our planned
customer interviews.

- Do you believe about the effects of bottled artichoke tea?

- What are the main benefits of bottled artichoke tea with regular bottled beverages?

- What combination ideas would you suggest for bottled artichoke tea?

- What is a reasonable price?

- Who do you think will buy this product the most?

- How often do you buy bottled water products? (at least twice a day, once a day,
once a week, more than once a week)

- When choosing beverage products, the thing you care about most is (health, price,
brand, preferences)

- Do you think bottled artichoke tea is superior to similar products on the market
(yes, no)

- Do you think other people will also like this product (yes, no)

- What about this product do you like (Artichoke's heat clearing, nutritional value,
medicinal value, natural sweetness)

- If you are provided with more information about this product is very beneficial for
your health, would you buy more of this product (yes, no)

4. Marketing strategy development for the new product

 Target market of Lipton Artichoke Bottled Tea

Lipton is the world's leading tea brand, both in Vietnam and globally. Lipton serves
people of all classes, social backgrounds, and regions with a diverse range of tea
varieties. Lipton is the leading tea brand that caters to almost all people, from students to
grandparents. Lipton Artichoke Bottled Tea, in particular, segments customers based on
their lifestyle. 

In general, Lipton  Artichoke Bottled Tea has two major consumer target groups:

-        The first category includes people who lead a hectic lifestyle and are looking
for "something quick." This group consists of students, employees, working women, and
other similar consumers who live hectic and busy lives and require an instant product to
refresh them. In this segment, Lipton's idea of selling tea in bottled tea has been very
successful. Tea in this type of packaging was not only inexpensive but also simple and
quick to use.

-        The second group consists of health-conscious individuals. Consumers in this

segment may not be as busy as those in the first group, but they are potential customers
because of the health benefits provided by the product. Lipton has successfully positioned
its product as a healthy, energizer with immense health benefits ever since researchers
announced the medical benefits of tea consumption. Since Lipton has always positioned
its tea as a health beverage rich in antioxidants, its market share has increased over time.
Furthermore, many people prefer Lipton to other brands because of its affordability,
quality, and ease of use.

Since Lipton recognizes that its potential customers are either health-conscious or
have a busy schedule, or they choose Lipton because of its affordability, it continues to
develop products that are healthier, easier to use, and less expensive.

 Product positioning

In order to meet the diverse tastes of consumers, Lipton is continually adding new
products bottled Artichoke Tea. Lipton Artichoke Bottled Tea will be positioned in the
market as “great tasting and good for health's consumers” because it has 3 No: No Sugar,
No Preservatives, No Sweeteners use healthy herbs such as Artichoke, Licorice, and
Arhat fruit so that it good for health. Due to these qualities, the company is able to
quickly establish a position for itself in the world market.

 Product differentiation  

Artichokes, arhats fruit, licorice, and stevia are the only healthy ingredients found in
bottled Lipton Artichoke Tea; it does not contain any sugar. We want to create a beverage
that is not only energizing but also healthy. In addition, we bottle it in re-usable barley
bioplastic. Additionally, we committed "not to use artificial additives or preservatives."
These are the features that distinguish this product from competitors on the market today.

CONCLUSION
Due to the fact that consumers are increasingly concerned with their health,
particularly in the Covid 19 pandemic, the market is constantly in need of new, high-
quality products that are also good for their wellbeing. As a result, the development of
new product policies is crucial because it marks the start of a steadfast new process for
the novelty to emerge. Building a new product policy system that is suitable for the
company's finances, market size, production scale, etc. requires a team of employees to
work hard. Company Unilever Vietnam during a process. The success of the company's
standard leading products, like Bottled Lipton Artichoke Tea, is a remarkable
accomplishment of the leaders, officers, and staff. Therefore, we have every reason to
believe that Lipton Artichoke tea in bottles will soon be available on the Vietnamese
market in the future.