Positioning strategy - Essay Example

THP Group Co. is the leading player in ranking number one in value for the ready-to-drink tea sector with “Khong Do Green Tea” product in 2006 and won a big market share. The success of THP Group Co. is proven through growth rate of 190% from November 2006 to November 2007. THP Group Co.’s top competitors for ready-to-drink industry are URC (C2 ) and Pepsi & Lipton (Pure Green Lipton) . THP Group Co. is leading with 57% of the total soft drink market. It is anticipated that the following brands could potentially compete with Khong Do Green Tea in the soft drinks market: Lipton Pure Green, 100, Wonderfarm, Anuti, Asao, Hoa Linh, Tribeco, Bribeco, Bidrico…

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In spite of the fact that C2 is a later-comer and has a similar product with Khong Do Green Tea (Cool and Clear) and has not highly-appreciated ads when he narrowed his target market – switch to Green Tea C2 from soft drink but with a loudly campaign, fairly stable quality, good distribution system and reasonable price as well as small bottle, C2 has positioned its product on the market. Being a youngest in the industry but Lipton Pure Green has a huge advantage of a product with a combination of two leading company in tea industry and refresher over the world as well as the combination of two famous brand names – Lipton and Pepsi.

With strong potential and smart marketing method, professional endorsement of these two richer, Lipton Pure Green has penetrated into market quickly as well as customer’s mind. Wisely, Lipton Pure Green has created a differentiated product “Product is made of 100% of young and tender leaves and hi-tech process has created a warm tea flavor. The tea trees are planted and controlled according to strict regulations of global Lipton. The best young and tender leaves are selected according to the rules of “2 leaves and 1 bud” and picking in the early morning and brewing freshly for making up at the factory have produced a warm tea flavor of the product”. Along with professional distribution and marketing, the selling price and special flavor of Lipton Pure Green has also produced a competitive advantage on the market – warmer flavor and less sweet.

However, a strong distribution system already exists with THP Group Company, since partnerships and channels are already in place. This will facilitate the product’s reach into its target market. Moreover, Khong Do Green Tea are produced from Vietnam’s typically natural fresh tea in line with the process concluded of 5 sterilizing stages with crystallizing plastic bottle that is heat-resistant of 86oC without being affected, assuring the right process that is good for customer’s health and very convenient everywhere. A strong distribution system already exists with THP Group Company as well as the huge capital – 50 million US dollar, reasonable price, intelligent marketing campaign, and most important, the advantage of the first mover in this industry, Khong Do Green Tea has been leading the market, which facilitates the product’s reach into its target market.


Segment identification: RTD (Ready-to-drink) bottled Bubble Tea, to be established within the Functional Drinks sector Segment needs: The product will cater to both physiological needs (hydrating and nutritional value) and social needs (perception of a social, fun drink with a sense of belonging within peer consumer groups) Segment trends: The current trends include a shift away from junk foods and carbonated drinks, a growing interest for healthier / beneficial products for the “mind and body”, the trend towards the availability of on-the-go products for those with an active lifestyle, as well as the trend for personalization through customization (or for beverages, through variety-seeking in a wide introduction of flavours)

Segment growth potential: Statistical reports anticipate a segment growth of 1.72% over the next 9 years (2015) for the 10-29 years old subsets Size of the segment (population): 14,688,300 Positioning strategy: The only RTD bottled Khong Do Green Tea available. Funky & eye-catching bottle, functional packaging, premium-priced, cool, new and unusual, unique drinking experience, aspects of play (tapioca pearls, oversized colored straw), variety of flavors, sweet, refreshing, for hip & young people, healthier alternative to heavy-sugar drinks.