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Advertising

In: Business and Management

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[CONTENTS

LETTER OF TRANSMITTAL……………………………….04

INTRODUCTION……………………………………………..05

SITUATIONAL ANALYSIS………………………………… 06

ADVERTISING PROBLEM…………………………………. 07

ADVERTSING OPPORTUNITES…………………………… 08

KEY PLANNING DECISIONS……………………………… 09

IMPLEMENTATION………………………………………… 10

EVALUATION………………………………………………… 11

BUDGET……………………………………………………….. 11

THE CREATIVE STRATEGY………………………………..12

THE MEDIA STRATEGY…………………………………….13

OTHER COMMUNICATION TOOLS……………………... 17

LETTER OF TRANSMITTAL

19th December 2007

MR EHTESHAM ALI
Senior Lecturer
College of Management Sciences
PAF KIET
Korangi Creek
Karachi, Pakistan

Respected Sir,

Here is the advertising report required as a component for assessment of our group in the course “ADVERTISING”

This report provides an overview of how the advertising plan should be made when a product is being launched in the market. What are the tactics and strategies used in order to implement the overall campaign plan

Please do not hesitate to contact us if you have any questions regarding this report.

Yours Sincerely

Raieef Qureshi

INTRODUCTION:

Lipton was created at the end of the 19th century by Sir Thomas Lipton. Under the slogan “direct from the tea gardens to the tea pot,” this entrepreneurial businessman wanted to make tea a popular and approachable drink for everyone - with a high quality but reasonably priced product. The Lipton business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the US and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business.

Over the course of a century, Lipton has become a dominant tea brand in many markets. The brand is well-represented in many countries across the globe, including the USA, France, Japan, Saudi Arabia, Australia, and Sweden.

Compared to other tea brands, Lipton has always had a strong focus on innovation, given its continuous launch of both leaf tea and ready-to-drink tea products. Products target the mass market and are generally positioned in the middle of the price spectrum for tea. Due to its size, Lipton is also a dominant player in tea expertise in the world. The company employs professionals in tea growing, tasting, buying, blending as well as Research & Development teams. Unilever/Lipton owns Tea estates in Kenya and Tanzania, making it one of the few companies that is actively involved in the whole value chain of tea, from growing it to marketing it.

Like most branded teas, Lipton teas are a blend selected from many different plantations around the world, from well-known producing countries like Sri Lanka, Indonesia, China, and Kenya. Lipton Yellow Label is blended from as many as 20 different teas in specialized tasting rooms in seven regional hubs scattered all over the world.

Beginning in 2006, Lipton has served as title sponsor to TEAM Lipton, an elite women's professional road bicycle racing and triathlon team in the USA

LIPTON- THE KING OF TEA:

It was launched in 1890 and is the No. 1 tea brand owned and originating from any tea growing country. Lipton Tea is now exported to almost 150 countries worldwide. Lipton is rated amongst the top 3 international tea brands and is considered the No.1 for Quality.

This company generated turnover in excess of $ 4 billion, in 2003 with employment in the Group’s production facilities and offices of 800 persons. The Group excels in its commitment to manufacturing excellence; in its commitment to quality, factories in matching the quality of Lipton Tea with excellent manufacturing practice, the company has gained ISO 9001:2000 accreditation and was the first to receive HACCP accreditation in 2000. The Group invests over $ 10 billion annually in ensuring that its manufacturing capability remains state of the art.

The Company is world’s No. 1 manufacturer and exporter of teabags accounting for over 57% of the country’s total exports of tea in bags. The focus on branded, high quality tea has made Lipton a major player in the premium segment of the global tea market, while re-establishing Yellow label Tea as the world’s finest.

SITUATIONAL ANALYSIS:

The main objective of this advertisement plan is that Lipton is introducing a new product in its brand name and is targeted at people who like strong tea taste. Our new marketing focus, made explicit in this plan, renews our vision and strategic focus on adding value to our target market segments, the upper class and upper middle class.

Lipton tea focuses on providing its target audience a differentiated brand keeping in mind the tastes and preferences of the market segment. Our marketing challenge is to position our product and service offerings as the high-quality.

For centuries problems of mankind have been solved over a cup of tea. Whether they were problems between nations, between businesses, even in families between husbands and wives, tea has been the soothing balm that helped their solution.

The simple act of pouring a cup of tea is, in itself, an ice breaker providing pleasurable anticipation of the goodness that is to follow. Lipton has dedicated its expertise and knowledge to providing that cup of tea; not only to solve problems but to add sunshine to your day with the first sip of goodness'.

So in order to keep on rolling the tradition, Lipton is introducing this new BUSHELLS TEA as one of the major boom in the tea business. The situational market that leads to the study will include the basic SWOT ANALYSIS. This SWOT analysis will provide with the back grounding, researching and reviewing the current state of the business that is relevant to the brand’s advertisement.

THE ADVERTISEMENT PROBLEM:

SWOT analysis includes studying the Strengths, Weaknesses, Opportunities and Threats that are being faced by the company in promoting the product in the market. Let us look into the following in detail:

WEAKNESSES:

The main weakness that appears to be is the communication problem that might act as the barrier because the brand name Yellow label is absorbed so much in the mind of the consumers that they will not be interested in the new product BUSHELLS by Lipton. Most of the loyal customers of Lipton will still prefer using the Yellow label because it has a sense of trust and commitment in terms of taste.

THREATS:

The tea business flourishes a lot in the world, thus there are so many competitors of Lipton in the market such as Tapal, Brooke Bond, Tetley and many more in the list. Sporting the products leads to capturing the same idea by its competitors and then advertising the concept to the people, that leads to the division of the advantage in the market.

ADVERTISING OPPORTUNITIES:

STRENGTHS:

Lipton itself is a strong brand that promotes the product. Since the name is on the top of the list, it has a strong dominance in the market and gains the maximum share holding overall. The brand name plays an important role in attracting and promoting the product and places a sense of commitment and trust on which the consumers rely upon. Lipton also has gained great amount of money and profits throughout its run and still continues to grab. So, it does not need to worry about the income stability and revenues from the sales.

OPPORTUNITIES:

Targeting all level of people allows Lipton to increase its market share by more than 55% as compared to the current 52%. It has opportunities such as capturing the people of country side who are addicted to drinking tea. Having specialized staff and technical expertise grooms the opportunities to be explored in the field of tea business.

KEY PLANNING DECISIONS:

• ADVERTISING OBJECTIVES:

The guidelines and clear objectives will effectively improve the sales of the new product. The main aim of launching this new product is to gain greater market share than all the current competitors present to the Lipton company. The BUSHELLS tea redefines the image of Lipton along with its traditional taste, but the new transformation of the product gives a kick-of-fantasy to the consumers.

The AIDA model is the basis of developing the advertising objective, but in this case when we are launching the new product, the HIERARCHY OF EFFECTS model suits the best in the advertising plan.

The target audience is the main object to be captured for promoting the BUSHELL TEA. It may range from low class people to one of the elite class. Then next matter is creating the awareness of the product. Launching the tea in the name of Lipton is itself a backing because it attracts the current as well as the potential customers towards the name. Advertising the product is to develop the interest in the audience so that they feel a sense of attraction to the product. It may depend upon the perception of each consumer and may be leading on the need. When interest is created, then the next step in the model is develop the kind of preference liking amongst different brands and products available in the market. Most of the consumers glue themselves to the same brand and product since start because of its already performance and exotic taste that they will always find. After the preference, trial has to be implemented in order to give a try to the new launched product. And finally after the trial, there will be some of the loyal customers that will stay on with the tried product because in short they were moved by its taste and were satisfied along positively.

• TARGETING THE AUDIENCE:

Targeting the audience includes the study of demographics, personality descriptors, and lifestyle traits. The target audience for the advertisement is the tea lovers who consume tea in reasonable amount and like to try different varieties in it. So with the introduction of BUSHELL TEA, it has to be targeted towards these people who will like to give it a try. In general terms, the target audiences are all family members especially the upper class to be specific.

• PRODUCT COMPETITIVE ADVANTAGE:

The feature analysis helps the marketer analyze its product to its competitors product. Creating the list of BUSHELL to other products of competitors will help in comparing its features in terms of price, quality; style, availability and etc. price is a bit higher than its competitors because of its unique blend of taste, quality is genuine with an added style for value and will be available at larger scale.

• BRAND PERSONALITY AND POSITIONING:

Lipton has created a brand personality for BUSHELL TEA as the finest tea collected from the gardens of Yorkshire and has the quality no other tea has. The place Yorkshire sports the uniqueness of the brand.

The positioning of the product is also very much in contrast. When one hears the name BUSHELL, it will remind them of freshness and purity. The flavor melts down smoothly in the mouth that it takes you in the indulgence theme and makes you feel very much airy.

IMPLEMENTATION:

Here, the tactics and strategies are identified and the persons responsible for carrying out these responsibilities and implementing tactics. All the above strategies and tactics are revised and the best suitable option is selected and used for implementation.

Here, the advertiser has to be real cautious because even a slight mistake will scrap the whole campaign. Everything has to be up to the mark and full concentration is focused on how to implement the campaign successfully. Hundreds and thousands of decisions need to be taken by the board of directors before the implementation eventually takes place.

The key decisions that were taken in the implementation of BUSHELL TEA advertisement were outstanding and technical. The advertising budget, target vehicle, locations and boundaries, geographical boundaries and etc. the entire decision laid the foundation of its success or failure in the market.

EVALUATION:

The basic aim of Evaluation is to see that has advertisement achieved its objective or not? There are variety of researches and techniques available to evaluate the effectiveness. This can be before, during and after the execution of the advertising plan.

First with the use of Survey Research, we were able to find out that the sale of BUSHELL TEA has grown gradually within a month. It means that the product has been liked by most of the people who gave it a try and were impressed by it. Questionnaires were filled by the respondents in order to attract their views and thoughts.

Pantry checks were also done. This check provides much of the information as the diary method but requires little from the consumer. We sent researchers to homes and asked the families of the tea brand they use. It was to amaze that almost 60% of the homes were using LIPTON brand.

BUDGET:

Determining the total appropriation allocated to advertising is not an easy task, nor it is done in the end of an advertising plan. The amount could be arbitrary bases on the market.

Although the appropriation and budgeting process relies on numerical information, the process is more art than science. It is often based on educated guesses, tradition, or the financial condition of the company.

The following advertising budget comes to a total of approximately 15 Billion Rupees. This budget requirement is necessary as hoardings would be set up at locations costing up to approximately 2 billion. We believe that LIPTON would need to advertise heavily on this new product if it is to create awareness about its new brand in the minds of the target audience.

We used the OBJECTIVE TASK METHOD for creation of the budget. Objectives of each activity were studied, and this determined the cost of accomplishing each objective. The results are only as good as the stated objectives and the amount assigned to each objective.

|Summary Report |
| | | | |
|Parameter: | | |
|Advertisement Budget 2007-08 | | Rs 150,000,000 |
| | | | |
| | | | |
|S.no |Description |per |Amount |
|1 |Air Media |15% | Rs 22,500,000 |
|2 |Print Media |30% | Rs 45,000,000 |
|3 |Outdoor Media |20% | Rs 30,000,000 |
|4 |POS Material |10% | Rs 15,000,000 |
|5 |BTL |15% | Rs 22,500,000 |
|6 |Event Sponsorship |10% | Rs 15,000,000 |
| |TOTAL | | Rs150,000,000 |

Around 30% of the budget was utilized on Print media. This is because print media has advantages such as greater range of market coverage as we can reach local or regional markets, especially the interest groups, etc. secondly print media offers geographic flexibility. We can choose some markets and not the others. It means that we can choose what our preference is all about.

Using the 20% of the budget on out door media is also into account that through this, we can reach mass audience at the same time all over. The frequency of the ad been viewed is large as compared to ads shown in the TV.

THE CREATIVE STRATEGY:

The creative platform is a guide to those developing the advertisement. It ensures that everyone working with the same understanding of the message strategy. Most of the creative platforms combine the basic advertising decisions- problems, objectives and target markets- with the critical elements of the sales strategy including selling premise and detail about how the idea will be executed.

Creating the new name BUSHELL was one of the tasks of the creative group. Creating a name that has a kind of brand attracting power that goes along with the image of the product.

Providing facts about the product is also very much necessary. Nutrients values and ingredients are identified and displayed on the box of the tea.
Creative experts are hired by the company in order to make such kind of work possible. This doesn’t seem as easy as it looks to us. It requires great form of technical skills, bright mind and processing techniques. These expertises have the ability to visualize imagination as well as excellent writing skills. They are open to new experiences and probably work on conceptual thinking.

THE MEDIA STRATEGY:

We have numerous options to give substantial awareness about our brand

• Newspaper • Direct Mail • Brochures • Coupons • Handouts or Flyers • Radio • Magazines • TV • Outdoor, such as billboards • Special promotions or packages • Partnering with a mobile service provider for example Mobilink Indigo. • Internet Marketing • Bus branding • Merchandising
The media choices available us were as follows:
Newspaper:

Dawn, The News, Jang and Financial Post are the prominent newspapers to advertise in. they are reached at each place of the country ranging from all classes. Advertising Financial Post was done in order to capture the people working in the office and they need to be attracted to this new tea.

Magazine:

Magazines such as Time, Newsweek, Readers Digest, Synergizer, Sunday are a few where advertisement could be printed.

Television:

Television is a powerful medium because it communicates with both sight and sound. Network television, the most costly purchase, can reach up to 95 percent of the homes of the target audience. By scheduling spots to air during certain times of the day or programs. Advertisement should be shown during morning and evening when people are more prone to drinking tea.

Channels that were used in advertisements are:

• ARY Digital • HUM TV • INDUS VISION • BUSINESS PLUS

Radio:

Radio advertises should also be aired during morning and evening when business people are heading toward and returning from their offices. Also time sponsors could also be bought.

Direct Mail:

Direct mail allows the greatest degree of audience selectivity. By selecting names from your own database of interested people and past visitors or buy purchasing a qualified list from a direct mail company, you can reach an audience who is already interested in your offering. This is an excellent reason to start your own database if you don’t already have one. Later in this booklet, we’ll discuss the benefits, as well as how to develop and work with a database.

Another advantage of direct mail is that you can provide complete information on your destination or attraction, compared with that in a newspaper ad or a 30-second radio spot.
One disadvantage of direct mail is raising postal costs. Another limitation is that people view direct mail as "junk," and the challenge is to get them to open a letter.

Outdoor:

Outdoor advertising could be done in malls, plaza-pillar branding, and walls of major shopping galleries, Bus branding, billboards, streamers, greenbelts of the city.

Internet:

Business websites would be aimed at. Also cellular GPRS is also a place to advertise on.

TIMINGS USED:

Timing is an important aspect when placing advertising. So we place our ad in the morning in between 7:00 A.M to 9:00 A.M and in the first half of evening in between 4:30 P.M to 6:00 P.M, because these are the time when people are having or preparing cup of tea. If we place an ad too late, people may already have plans or purchased another product. This is one of the most critical decisions to be made by the expertise.

Continuous schedule - Advertising of this product will run throughout the year, when demand and seasonal factors are unimportant.

The reach and frequency are needed to be determined carefully. Reaching large audience through the advertisement is very important as it covers much of your time and budget. If the frequency rate if the advertisement is good, then more and more people are interacted to the ad, thus creating a place in their mind.

THE AD TO BE PLACED IN THE PRINT MEDIA

[pic]

“the break that reminds…….”

TRY THE NEW BLEND FROM THE HOUSE OF LIPTON YELLOW LABEL THAT WILL TAKE THE TASTE OF TEA TO THE NEW LEVEL OF EXTASY, INDULGENCE AND FRESHNESS. BUSHELLS TEA IS BROUGHT CRISP FRESH FROM THE HEAVENLY GARDENS OF YORKSHIRE.

OTHER COMMUNICATION TOOLS:

• SALES PROMOTION:

As the new product is being launched, so in order to capture more people, sales promotions need to be done. Places such as AGHA’S, NAHEED supermarket, MAKRO, and D-Mart can be used as the locations were sales promotions can take place. E.g. buy one pack, get another one free.

• SPONSORSHIPS:

With so much of the budget, this product can be promoted in the sponsorships. Such as drama awards, conferences, exhibitions and stuff. It provides a platform where we can nominate our new product and create its awareness to the people.

• COUPONS:

Along with the current Lipton yellow label, coupons of BUSHELLS tea can be attached which allows the buyers to be fascinated for a trial of the product, may it be a free sample or a discount card and other sort of stuff.

• PERSONAL SELLING:

Promoting the product directly at family marts and shopping places provides personal selling advantage. You come in contact with the customer and interaction takes pace right on. Here, you can make a customer get attached to the product if the aperture hits at the right place.

• POINT-OF-PURCHASE:

Placing your new product on the point-of-purchase counter helps in greater frequency of the time the customers will have a look at this new product and would entice them for it. It is one of the major attracting powers of this strategy.

FINAL THOUGHT:

Looking at the overall plan, one thing is clear that no matter what it takes, the audience need to be targeted very smartly and in a way that make them feel that the product has something in it that others do not. This acts as a competitive advantage for the company.

Capturing the maximum share in the market leads to more and more identifications of opportunities and these profitable opportunities need to be grasped eventually at all levels of competition.

The firm may operate with an annual advertising plan and the campaign must be so strong that it delivers the message straight forwardly and hitting the aperture at the right place with maximum media share.

THE END
[pic]

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...Executive summary: Advertising and promotion is used to inform about the products or service to customers, stakeholders or boarder publics. To fulfill this motive, many strategies has been developed and practiced over the world. In this era of technology and science, it has become easier to carry out advertising and promotional activities. This assignment has been specially designed about the communication, strategies, techniques and evaluation that are needed to carry out proper advertising and effective promotion. The importance and significance of promotional activities have also been included here. The assignment is writing in such a way that all kinds of readers can easily understand the points mentioned here. Table of Contents Executive summary: i Introduction 1 LO 1: Understanding the scope of marketing communication. 1 1.1 Communication process that applies to advertising and promotion. 1 1.2 The organization of advertising and promotion industry. 2 1.3 Assess how promotion is regulated. 3 1.4 Examine current trends in advertising and promotion including the impact of ICT. 3 LO 2: Understand the role and importance of communication. 4 2.1 Explain the role of advertising in an integrated promotional strategy for a business or product. 4 2.2 Explain branding and how it is used to strengthen a business or product. 4 2.3 The creative aspects of advertising. 5 2.4 Ways of working with advertising agency. 5 LO 3: Understand below-the-line......

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