Market Segmentation of Lipton Tea

Imagine this scenario. You have had a long day at work, packed with decision-making where you had to spend a lot of energy. Then, you go to the gym because that is a healthy decision to stay healthy and sane. You get home by the end of the night and have a delicious dinner with your family members. And now, you finally have the perfect opportunity for some alone time and wind-down. What better way to spend it than with a cup of tea and a tv show that you are binging? We are talking about Lipton tea today, which you should be pouring in that cup.

First and foremost, we are going to discuss the segmentation strategy of Lipton Tea.

Let us watch this video beforehand to help us do so.

This video is basically showing us a routine of a busy working mom.

We watch every aspect of her life. Of course, it is full of lots of incredibly hectic activities. In the mornings, she has to make sure that all the kids are up, fed, and ready to leave for school. But then, there are lots of dishes on the counter and near the sink. So, she makes sure that all the dishes are washed, dried, and put away.

Her kids spend some time doing kid stuff, and so the house is full of lots of toys that are thrown everywhere. She picks them up and makes sure all of them end up where they belong.

She makes sure that everybody she loves gets enough attention from her. Hence why, she delivers some lunch to her grandmother, presumably.

She is a determined woman who has a thriving career alongside all that chaos. So, she turns to her workplace right afterward.

Time to go back home! She has to grocery shop, though, to make sure that everybody is provided with everything they need. As soon as she gets home, she is faced with even more chores, such as laundry.

But getting home by the end of the day is when everybody should take a breath and relax. She goes to her garden, where her loved ones are waiting for her. Even if it feels like her chores can not wait, they can. Sometimes everybody needs a break. Her break becomes complete with some Lipton tea.

This short ad gives us a lot of hints that we need to unravel.

The first hint that we receive is the importance of family. This woman has a house full of kids and some older family members that it feels like she deeply cares about.

Then, another apparent hint that we get is her perfectionism. She wants to make everything done on time and perfectly. She completes all her errands on time and manages her work alongside it entirely.

And lastly, we can guess that her job is something she is passionate about. She chooses to do it because she loves it, not solely because she wants to earn money. Otherwise, she could have simply quit.

It becomes apparent at this point that the segment that Lipton Tea has chosen to target is Actualizers.

Lifestyle and values:

It is safe to say that Actualizers are most likely going to face success in anything they choose to pursue. That is because they think ahead and work hard. They have a perfectionist approach that has been proven to gift them with positive outcomes.

Most of the time, this segment is perfectly happy with their life. They leave the situation in relief as they know what they desire and have the means to get it.

Actualizers are goal-oriented but choose to avoid the risks that come with it. Their job is not just a way to earn money. But it is something they truly love doing and are passionate about. They work hard to be happy where they are career-wise.

Still, in any case scenario, it is most important to choose family first. Family is a central focus for Actualizers. Money comes and goes, but family should never be taken for granted.

Actualizers that have children make sure to participate in their upbringing as much as they can. They want to educate their children and encourage them to always learn something new. Childrens’ physical health is also just as significant. Hence why, Actualizers make sure that their kids eat healthy food, and keep a healthy balanced lifestyle.

Actualizers like exercising with their kids and significant other as a family activity. They should work out minimum once a week.

This segment is blessed with great intellect. They love learning about arts, different cultures, music, and international occurrences. They make sure to keep up with the rapid development of technology.

This segment is environmentally friendly. They limit their use of plastic and recycle because it is important to take action for the planet we live on.

Actualizers are also interested in speaking up about social issues—for instance, different crimes and violence.

This segment knows how to spend their money. They never waste anything. They are pretty careful with it. However, if they need to get a quality product, they will be willing to spend some extra money on it.

Actualizers care about their comfort more than they do for their style. So, when shopping, they look for cozy stuff to match their wardrobe.

Attitude to shopping:

A lot of the time, Actualizers make purchases from premium brands. That is, above all, quality is the most important thing. Whenever a new product comes out, Actualizers are on their way to buy it.

This segment likes to be productive when it comes to shopping. They plan out their shopping, so no time is wasted. For example, they will go to a store where they can get all their necessities.

Sometimes, Actualizers will buy stuff from local brands. Of course, people should give smaller companies a chance.

Interesting facts about Actualizers:

• Need to spend a good amount of time with their family at home
• Search for consequential home entertainment
• They are curious about arts and music. They also read significantly and watch movies.
• Enjoy searching for nice activities for their kids outside their homes. For example, they love going on walks, going to theatres, cinemas, concerts, etc.
• Sometimes love eating out.
• Are always on the hunt for some new interesting and fascinating information
• Only watch TV for specific programs.
• Are above-average radio consumers

Moving along, we are going to take a brief look at Lipton Tea’s positioning plan.

Tea is a product that everybody adores and purchases lots of on a daily basis. Thus, every tea company should think of ways to position itself as something different, unique, and worthy.

Every smart tea brand needs to take into consideration what their consumer wants to drink. It needs to show its buyers that they are going to experience something new.

A tea brand connects to its consumers due to its functionality and emotional reasons as well. Tea is good for people’s health. It even boosts energy. And for what it is, tea is actually pretty affordable.

People have become distant from each other because of the hectic daily lives that they are leading. When it is somebody’s birthday, instead of calling each other up, people just text now. Even though the technology is a fascinating tool with many capabilities, it can take a toll on people’s mental health.

Hence why Lipton tea is encouraging its buyers to start putting more effort into quality time. You would be surprised to find out that one in three people is struggling with loneliness issues. This is mostly because people exhaust their days with long to-do lists and fail to connect with their loved ones. Staying connected with family and friends should be an inseparable part of our to-do lists.

So, people should reconsider their priorities. Lipton Tea has thought of ‘Project Unlonely’ for helping people reconnect. It even gathered parents and children on opposite sides of a wall. It asked them to write down things that they had to do. And children’s pure wishes encouraged parents to spend more time with them.

Sometimes all you have to do is grab a cup of tea with a loved one and simply chat. The presense of family and friends sometimes gives us lots of energy that we need in order to stay being successful. We can consider this the emotional aspect of the positioning of Lipton Tea.

Last but not least, we are going to take a look at the marketing mix of Lipton Tea.

What is the marketing mix, you may ask? It touches upon a company’s product, pricing, place, and promotion. And because all of those phenomenon begin with the letter ‘p’, people sometimes refer to marketing mix by 4Ps.

Time to discuss those.

Product:

It is safe to say that Lipton is among the most famous tea brands on the globe. Its product range is incredibly wide, which is pretty exceptional in its industry. Among the teas that Lipton offers, we can see lemon tea, green tea, black tea, of course, etc.

Lipton has taken into consideration that people from specific areas have different preferences. For example, Australian’s taste buds differ from Americans’. That is exactly why Lipton makes sure to market products that match the needs of its consumers.

For example, in India, Lipton offers more tea products than other segments. Indians are tea fanatics, that is why Lipton makes great quality tea that fits the preference in the location.

Place:

Lipton Tea has a presence in over 100 countries. Lipton grows its awesome goods in Kenya and Tanzania. India is Lipton’s main focus because that country is known for tea. PepsiCo and Lipton are co-owners of Lipton. Those companies stimulate a stronger distribution channel and overall marketing strategy.

At first, Lipton’s concentration was Mumbai. But shortly after, the company began to grow. Lipton was most famous for its signature green tea. And today, this company has way over 500 traders.

Pricing:

India consumes over 20% of the tea that is marketed in Asia. That sort of makes it the biggest consumer in the tea world. Indians value tea to a great extent. That is why Lipton should be smart about its pricing strategy. And, of course, the company has done its job in making sure that its pricing is perfect.

There is huge competition in this industry. But what Lipton does is that it sets higher prices regardless of fierce competition. The company targets middle and upper-middle-class consumers. So, its pricing is pretty safe and only adds to the success of the company.

Promotion:

Different companies use an emotional factor in their advertisements these days. Of course, advertisements are mostly shown on TV. But Lipton makes sure to keep up with the world. It also has an online presence on different social media networks. Among those, we see Facebook, YouTube, Twitter, etc. Lipton very often sponsors various events. This approach has enabled the brand to become more and more perceptible in the beverage and tea industry.

And there you have the ‘Market Segmentation of Lipton Tea’ blog. Lipton Tea is a fascinating tea company that is amongst the leaders in the industry. We analyzed some of its marketing tactics to better understand the story behind its achievements. If the different layers of marketing interest you, be sure to check out our main page. We constantly come up with new content covering different brands and various aspects of marketing.