Situation Analysis

Project Profile

Product Name

            Heaven and Earth Iced Tea

Product Classification

            Cold Beverages soft drinks

Product Characteristic

            Type: Iced Tea

            Packaging: Various types (Bottles (500ml and 1.5L), Can (330ml))

            Pricing Range:  RM1.50 – RM 4.50

Product Range

-         Jasmine Green Tea - a soothing fusion of fragrant Jasmine and Green Tea for a smooth, delicious flavor.

-          Honey Chamomile Green Tea - a touch of Honey and Chamomile to give a calming twist to your green tea.

-      Gui Hua (Osmanthus) Green tea - a revitalizing combination of Gui Hua flowers and Green Tea for a delightfully sweet  & aromatic flavor.

-          Ice Lemon Tea - a sweet cooling tea taste with a stimulating lemon flavor finish, an all-time favorite!

-      Ice Passionfruit tea - a delicious mix of tropical passionfruit flavor and  sweet black tea for a smooth & light taste.

-          Ice Apple tea -  a juicy apple flavor fused with fresh black tea to give you a sensational fruity tea taste.

-          Chrysanthemum tea

Distribution

The distribution of Heaven and Earth used is indirect distribution. Indirect sale is the sales of a product of goods by a third-party, such as outlet stores or shopping center, instead of having a company’s personnel. Indirect sales can allow a company to increase sales quickly without having to hire more sales personnel.

Product Life Cycle

The Brand

            Heaven and Earth is a brand developed in Singapore, by Coca-Cola Singapore, exclusively for the Singapore market. It was first launched in June 2000 with a range of green teas. Heaven and Earth are now expanded to address your evolving needs. Today, your hectic modern lifestyle creates a need for balance in the different dimensions – mind, spirit, body. True to its innovative spirit, Heaven and Earth offer a range of refreshing teas to help cleanse your bodies and clarify your mind. And in the year of 2012, it finally arrives to Malaysia.

            Heaven and Earth tea is the first brand to establish a premium positioning, with freshly brewed Fujian tea leaves. All the tea leaves are derived from drying and steaming the fresh tea leaves directly after plucking. Tea provides a dietary source of biologically active compounds that help prevent a wide variety of diseases. A growing body of evidence suggests that moderate consumption of tea may protect against several forms of diseases.

Brand Image & Implication

            Heaven and Earth are currently under its intro growth in Malaysia. Because this brand had just introduced about 1 year times in Malaysia. With the potential of this product, the next level would be to reach the peak level of the sales. But due to the previous poor advertising and promotional strategy, Heaven and Earth will be hard to grow the sales to its peak. To the public in Malaysia, Heaven and Earth still a very new brand. And there is many competitor’s products out there. But with the unique benefits of this brand, expected it should start hitting the peak level in no long time, with its special feature of tea leaves, affordable price, health benefits and promising good taste. But still the consumer’s awareness to this product has played the important role.

Strength and Weakness
Strength:

-          The Coca-Cola Company products which have strong brand image

-          Made from good quality and fresh ingredients.

-          Affordable price, not considered cheaper but still can be compete with other brands

-          Taste delicious with strong fruity tea fragrance.

-          Not over sweet, been proved by consumer who been tried.

-          Savior of Thirsty

-          had a calming and soothing effect on drinkers

-          Has international standards which this product are popular in other country.

2.      Weakness

-          Poor packaging design

-          Brand new product in Malaysia

-          Have large amount of competitors in the market

Advantages and Disadvantages

1.      Advantages

-          Have strong company image

-          Calming and smoothing effect after consume

-          Satisfies thirsty

-          Good for health

2.      Disadvantages

-          Not well known in Malaysia

-          Packaging design wasn’t catchy

-          Iced Lemon tea is introduced as main product but Lemon tea beverage has been too mainstreams in Malaysia and having many strong competitors in market.

Unique Selling Proposition (USP)

Freshly made with premium tea leaves, naturally packed with antioxidants for a refreshing drink that can help restore your body’s natural balance.

Promotional History and Advertising Schedule.

TVC and Exhibition

The advertisement done by the Creative agency : Havas Singapore which on the first launch of Heaven and Earth products in Malaysia. But the advertisement is not strong enough to catch audience’s awareness because there is many same kind of product having in Malaysia.

Positioning Statement

Heaven and Earth, Freshly made with premium tea leaves, naturally packed with antioxidants for a refreshing drink that can help restore your body’s natural balance to target the youth in the age between 16-25 years old.

The Company

Company Overview

            Heaven and Earth is the product of The Coca-Cola Company. The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups, which is head quartered in in Atlanta, Georgia. The company is best known for its flagship product Coca-Cola. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.

Business Description

            The Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of non-alcoholic beverage concentrates and syrups, with world headquarters in Atlanta, Georgia. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the Company’s flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by The Coca-Cola Company and its subsidiaries in nearly 200 countries around the world.. The Coca-Cola Company, besides its namesake Coca-Cola beverage, Coca-Cola currently offers more than 500 brands in over 200 countries or territories and serves over 1.7 billion servings each day. Some brand examples are Sprite, Dasani, Minute Maid and etc. One of The Coca-Cola Company’s greatest strength lies in the ability to conduct business on a global scale while maintaining a local approach. By contract with The Coca-Cola Company or its local subsidiaries, local businesses are authorized to bottle and sell Company soft drinks within certain territorial boundaries and under conditions that ensure the highest standards of quality and uniformity. The Company takes pride in being a world-wide business that is always local. Bottling plants are, with some exceptions, locally owned and operated by independent business people who are native to the nations in which they are located. Bottlers provide the required capital for investments in land, buildings, machinery, equipment, trucks, bottles and cases. Most supplies are purchased from local sources, often creating new supply industries and areas of employment within local economies. The Company supplies the concentrates and beverage bases on used to make its products and provides management assistance to help its bottlers ensure the profitable growth of their businesses. Product manufacturing, quality control, plant and equipment design, marketing and personnel training are just a few of the areas in which the Company shares its expertise. The strong commitment of bottlers to their own profitable volume growth helps to meet the Company’s strategic goals and furthers the interests of the world-wide production, distribution and marketing systems.

Company History

            The company is best known for its flagship product Coca-Cola., invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia. The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 - March 12, 1929), who incorporated The Coca-Cola Company in 1892. The company has a long history of acquisitions. Coca-Cola acquired Minute Maid in 1960, the Indian cola brand Thums Up in 1993, and Barq's in 1995. In 2001, it acquired the Odwalla brand of fruit juices, smoothies and bars for $181 million. In 2007, it acquired Fuze Beverage from founder Lance Collins and Castanea Partners for an estimated $250 million. The company's 2009 bid to buy a Chinese juice maker ended when China rejected its $2.4 billion bid for the Huiyuan Juice Group on the grounds that it would be a virtual monopoly. Nationalism was also thought to be a reason for aborting the deal. In 1982, Coca-Cola made its only non-beverage acquisition, when it purchased Columbia Pictures for $693 million. It sold the movie studio to Sony for $3 billion in 1989.

Key People

-          Muhtar Kent ( Chairman & CEO of The Coca-Cola Company)

-          John F.Brock (CEO of Coca-Cola Enterprises, Inc.)

-          William W. Doughlas (Chairman and CEO of Coca-Cola Enterprises, Inc.)

-          Hubert Patricot (CFO of Coca-Cola Enterprises, Inc.)

Location and Subsidiaries

Headquarters:                        The Coca-Cola Company

P.O. Box 1734

Atlanta, GA 30301, USA

Telephone: 001 404 676 2121

http://www.thecoca-colacompany.com/

Subsidairies
Headquarter in Malaysia:     Coca-Cola Bottlers Malaysia Coca-Cola Refreshments Malaysia

Coca-Cola Far East Limited

PT 486, Persiaran Teknologi 4 (Techpark @ Enstek)

Bandar Enstek, Negeri Sembilan

71760

Subsidairies:

   Barq's, Inc.                                                   

   Bottling Investments Corporation

   ACCBC Holding Company

   Caribbean International Sales Corporation, Inc

   Caribbean Refrescos, Inc

   Carolina Coca-Cola Bottling Investments, Inc.

   Coca-Cola Financial Corporation

   Coca-Cola Interamerican Corporation

   Montevideo Refrescos, S.A.

   Coca-Cola Overseas Parent Limited

   Coca-Cola Holdings (Overseas) Limited

   Coca-Cola South Asia Holdings, Inc.

   Coca-Cola (Thailand) Limited

   CTI Holdings, Inc.

   55th & 5th Avenue Corporation

   The Coca-Cola Export Corporation

   Amalgamated Beverage Canners (Pty) Ltd.

   Atlantic Industries

   Ansan Ankara Gida Mesrubat ve Meyva Sulari Sanayiive Ticaret A.S.

   Coca-Cola Bevande Italia S.r.l.

   Azienda Bevande di Gaglianico-ABEG-S.r.l.

   Societa Bevande Meridionale-SOBEM S.r.l.

   Maksan Manisa Mesrubat Kutulama Sanayi A.S.

   Barlan, Inc.

   Varoise de Concentres S.A.

   Coca-Cola G.m.b.H.

   Coca-Cola Rhein-Ruhr G.m.b.H.

   Coca-Cola de Argentina S.A.

   Coca-Cola de Chile, S.A.

   Coca-Cola Ges.m.b.H.

   Coca-Cola Industrias Ltda.

   Recofarma Industria do Amazonas Ltda.

   Coca-Cola Ltd.

   The Minute Maid Company Canada Inc.

   Coca-Cola (Japan) Company, Limited

   Coca-Cola Korea Company, Limited

   Coca-Cola Nigeria Limited

   Coca-Cola Southern Africa (Pty) Limited 

   Conco Limited

International Beverages

   Coca-Cola Refreshments Moscow

   Minute Maid SA

   Refreshment Product Services, Inc.

   Coca-Cola de Colombia, S.A.

   Coca-Cola Holdings (Nederland) B.V.

   Coca-Cola Holdings (United Kingdom) Limited

   The Inmex Corporation

   Servicios Integrados de Administracion

   y Alta Gerencia, S.A. de C.V.

Brands, Major Products and Services

The major products that manufactured and produced by The Coca-Cola Company include:

-          Minute Maid        

-          Fanta                    

-          Sprite                    

-          Coke                     

    

3.7 Corporate Vision
The Coca-cola Company
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.

-          People: Be a great place to work where people are inspired to be the best they can be.

-          Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs.

-          Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value.

-          Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.

-          Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities.

-          Productivity: Be a highly effective, lean and fast-moving organization.

Corporate Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.

-          To refresh the world...

-          To inspire moments of optimism and happiness...

-          To create value and make a difference.

Company’s Current Promotional Strategy

The latest promotion of product from The Coca – Cola Company can be found through the internet information sharing.

   

Product Sales’ History

Coca-Cola slogans from 1886 to 1993

Current Marketing Objectives

Since its beginnings, Coca-Cola has built its business using a universal strategy based on three timeless principles:

acceptability - through effective marketing, ensuring Coca-Cola brands are an integral part of consumers's daily lives, making Coca-Cola the preferred beverage everywhere

affordability - Coca-Cola guarantees it offers the best price in terms of value for money

availability - making sure that Coca-Cola brands are available anywhere people want refreshment, a pervasive penetration of the marketplace.

Currently Coca-Cola is advertised on over five hundred TV channels around the world including Viral and Outdoor media. Coca-Cola has positioned themselves too market toward a certain age group, this age group is youths from 15-25 but they also have a unique way of marketing which also reached the 40+ audience. Targeting youths, they base their strategies on entertainment and for the older generation their marketing strategies are mainly about the family drink, which is low cost and convenient. Coca-Cola’s’ brand personality reflects the positioning of its brand. The process of positioning a brand or product is a complex task and must be done over time using all the elements of the marketing mix. Positioning is in the mind of their consumers and can be described as how the product is considered by their consumer. Many people see ‘Coca-Cola’ as a part of their daily life. This similarity between the brand and the consumer leads to a high degree of loyalty and makes the purchasing decision easier.

Media Expenditure

Coca cola company use different mediums

•        Print media

•        POS material

•        Tv commercial

•        Billboards and holdings

Print Ads media

In the early, Coca cola make use of the effectiveness of print ads to create many effective print ads to draw consumers attentions. Every each of the print ads of coca cola shows happiness to audiences. Open happiness always the tagline of it. You can see every print ads of coca cola brings the aura of happiness.

     

TV Commercial

Every TVC of Coca-cola always brings the meaning of open happiness which is their tagline for Coca-cola in the video.

Heist - Coca-Cola Commercial

Crave - Coca-Cola Commercial

Snowball - Coca-Cola Commercial

Consumers and Stakeholders

Current Consumer’s Characteristic

Demographics:

-          Age                                          : 15 to 25 years old

-          Gender                                    : Male and Female

-          Education                                : Secondary schools and above

-          Occupation                              : Office working, Student

-          Income range                          : Between MYR 500 – MYR 2500

-          Race & Ethnicity                     : All

-          Geographical Location            : Urban and Suburban

Psychographics:

a.      Perception: Juice tea made gave relaxing, calm and smooth effects to especially those working adults who suffered from tiredness.

b.      Learning: Word of mouth, Supermarket Shelves, TV commercial and newspaper

c.       Motivation: The current target audience all work from tired and stress, Heaven and Earth Tea would help them to calm and release their stress without harming their health.

d.      Attitude & Personality: Independent and confident, active, health conscious

e.      Lifestyle: Working hard during weekdays, rest on night time and weekends, have healthy lifestyle habits.

Stakeholder’s Characteristics

Primary

-          Board of directors
Directing the employees to maintain and archive the corporate goals

-          Shareholders
Investor that share the company’s profit in production

-          Employees
People who work for the company and contribute to it in return for monthly wages.

Secondary

-          Consumers
The consumers who buy the product and help to boost the sales rate.

-          Outlet Merchandise shop

Sells the product to the consumers

Industry and Marketplace

The Industry

It is said that tea was discovered accidentally by Emperor Shen Nung back in 2700BC. After a large meal one day, he was relaxing in the garden with a cup of boiling water. At that time some leaves from a nearby tree fell into the cup. Unnoticed he consumed the drink. He enjoyed the taste of the tea and the pain relief of the drink was so much. Like this the cup of tea was born. The Indian legend tells how in the fifth year of a seven year sleepless contemplation of Buddha he began to feel drowsy. He immediately plucked a few leaves from a nearby bush and chewed them which dispelled his tiredness. The bush was a wild tea tree. The first tea used in England came from China, and it wasn't until the 19th century that tea growing spread to other countries and indigenous tea was discovered in Assam. The UK is the largest importer of tea.

Tea has been historically promoted for having a variety of positive health benefits. Recent human studies suggest that green tea may help reduce the risk of cardiovascular disease and some forms of cancer, promote oral health, reduce blood pressure, help with weight control, improve antibacterial and anti-virasic activity, provide protection from solar ultraviolet light, increase bone mineral density, and have "anti-fibrotic properties, and neuroprotective power." Additional research is needed to "fully understand its contributions to human health, and advise its regular consumption in Western diets." Tea catechins have known anti-inflammatory and neuroprotective activities, help to regulate food intake, and have an affinity for cannabinoid receptors, which may suppress pain and nausea, and provide calming effects. Consumption of green tea is associated with a lower risk of diseases that cause functional disability, such as “stroke, cognitive impairment, and osteoporosis” in the elderly. Tea contains L-theanine, an amino acid whose consumption is strongly associated with a calm but alert and focused, relatively productive (alpha wave dominant), mental state in humans. This mental state is also common to meditative practice. The phrase "herbal tea" usually refers to infusions of fruit or herbs made without the tea plant, such as rosehip tea, chamomile tea, or rooibos tea. Alternative phrases for this are tisane or herbal infusion, both bearing an implied contrast with "tea" as it is construed here.

Tea manufacture is the process of converting young fresh tea shoots into dry black tea. This involves a number of processes from plucking to packing. At the plucking stage, only the top leaf tips are picked every 6 to 7 days. The tip leaves are younger and finer which produce a better quality tea. The fresh green leaves now need to have the moisture removed from them. This is done by blowing air through the leaves for up to 14 hours, leaving a soft and pliable leaf. There are then two ways of treating the tea. Tea which is to be used as loose leaf, will normally be rolled gently to create a twisted appearance.

In contrast, tea which is to be used for tea bags, is shredded and crushed to produce a small granular product. Rolling and crushing the leaves, results in the rupturing of the leaf cells which allows oxidation to occur. This gives the tea its distinctive black colour and flavor. The tea is then dried at high temperatures to achieve the correct taste. When it has been dried, the leaf tea is of differing sizes and will also contain pieces of fibre and stalk. At this point it is processed to remove pieces of stalk which will then leave tea suitable to be sold as loose tea. The tea is passed through varying sizes of meshes to sort it and has to be passed through very fine ones in order to produce tea fine enough for tea bag production. This process of sorting is a harsh one and it can cause the tea to lose some of its flavor. That is why loose tea usually has a better flavor than the tea in a tea bag.

Tea is the most popular manufactured drink in the world in terms of consumption. Its consumption equals all other manufactured drinks in the world – including coffee, chocolate, soft drinks, and alcohol – put together. Most tea consumed outside East Asia is produced on large plantations in the hilly regions of India and Sri Lanka, and is destined to be sold to large businesses. Opposite this large-scale industrial production are many small "gardens," sometimes minuscule plantations that produce highly sought-after teas prized by gourmets. These teas are both rare and expensive, and can be compared to some of the most expensive wines in this respect.

India is the world's largest tea-drinking nation, although the per capita consumption of tea remains a modest 750 grams per person every year. Turkey, with 2.5 kg of tea consumed per person per year, is the world's greatest per capita consumer.

Canned tea is a relatively recent method of marketing tea which has been sold traditionally as leaf tea and also, for the last 100 years, in tea bag form. It utilises the canning process to produce a ready made drink. Perceived advantages are ease of use (minimal or no preparation time) and the possibility of additives (such as flavors or sugar); the disadvantages are the cost of shipment (and therefore the price of the product) and a lack of freshness. Switzerland is considered as the motherland of bottled iced tea. Maks Sprengler, a Swiss businessman, tried the famous American iced tea and was the first to suggest producing ready-made iced tea in bottles. In 1983, Bischofszell Food Ltd. became the first producer in the world of bottled ice tea on an industrial scale. Canned tea is a form of tea that has already been prepared, and is sold ready to drink. Canned tea is a fairly recent innovation, first launched in 1981 in Japan.

·         ITO EN Ltd (Japan)

·         1981 - First canned tea (oolong) launched

·         1985 - First canned green tea launched.

The Marketplace

Current Market Situation

Last year, sales of tea and ready-to-drink (RTD) tea increased 5.1 percent, reaching $4.3 billion in food, drug, convenience stores and mass merchandisers, excluding Walmart, according to Mintel’s July 2011 “Tea and RTD Teas – U.S.” report. Canned and bottled tea as well as refrigerated RTD tea drove growth in the category, the Chicago-based market research firm reported.

The canned and bottled RTD tea segment accounted for just more than 50 percent of the market share in measured channels and showed the largest growth in the category from 2009 to 2011 at 19.2 percent, Mintel noted. The second-largest segment, refrigerated RTD tea, made up 13 percent of total category sales in 2011 and grew more than 15 percent from 2009 to 2011, the report stated.

Bagged and loose tea sales growth remained small compared to the RTD segment, increasing 3.5 percent from 2009 to 2011, according to Mintel. Convenience via single-cup pods could help grow the segment, the report said. Based on the success of Celestial Seasonings’ single-cup tea pods, Mintel suggested that the pod packaging format might be a solution to the slow sales taking place in the overall bagged and loose tea segment.

Flavor is the No. 1 reason why consumers drink tea, according to the Mintel report. This explains why flavor innovation in RTD teas helped to drive growth in the segment, the report stated. In the RTD tea segment, lemonade-and-tea drinks have gained in popularity.

In addition to lemonade-and-tea combinations, tea is making an appearance in juice drinks and other categories. This spring, Purchase, N.Y.-based PepsiCo announced its new Trop50 line of low-calorie tea-infused juices. The line includes Peach and White Tea, Raspberry and Green Tea, and Pear Lychee and White Tea.

In addition to positioning and flavor innovation, RTD teas are turning to packaging to attract consumers. The economic downturn influenced consumers to buy bulk packaging to save money, experts say. Atlanta-based The Coca-Cola Co. introduced family-size packaging for its Gold Peak RTD tea brand, which is merchandised in the refrigerated section. Gold Peak increased 12.3 percent in the 52 weeks ending April 15 in SymphonyIRI’s measured channels.

Also appealing to price-sensitive consumers, pre-priced canned iced teas continue to grow. Arizona, which offers several varieties of pre-priced teas, maintains the top spot in the canned and bottled tea segment with nearly $620 million in sales in SymphonyIRI’s measured channels for the 52 weeks ending April 15.

Changes in Marketplace

Competitor beverages flourishing soft drink consumption is still huge despite some resistance due to association with obesity and diabetes resulting in a decline in usage. New products and markets for functional drinks: Water has become a flavored, vitamin infused beverage Sports drinks marketed to athletes Energy drinks offer massive amounts of sugar and caffeine, along with guarana, ginseng, taurine, and many others Small “energy shots” offer concentrated caffeine and other chemicals to provide instant boosts of energy.

Compare with other brands, Heaven and Earth has its unique selling position which is the tea itself gave calm and smooth effect after consumes. And the tea wasn’t too sweet but the taste is good enough. And the teas it even have combination with fruity taste. Passion fruit tea will be the first special flavor of tea soft drink. The fruit itself have great fragrance and taste that would satisfy consumer’s thirsty.

But the market of tea soft drinks is too wide and there is many same type of product selling everywhere. It is too mainstreams for fruit tea in the global market. And Heaven and Earth tea has been late to launch in Malaysia. Others brand has been overwhelm Heaven and Earth because they have been introduced long time and have a stable brand image to the consumers. Like Example, when talk about Iced Lemon tea can product, everybody will think about Lipton.

Competitive Situation

Direct Competitors

Lipton is a brand of tea and was also a supermarket chain in the United Kingdom before it was sold off to Argyll Foods, to allow the company to focus solely on tea. The company is named after its founder Thomas Lipton.

In 1871, Lipton used his small savings to open his own shop, in Glasgow, Scotland and by the 1880s the business grew to more than 200 shops. In 1929, the Lipton grocery retail business was one of the companies that merged with Home and Colonial Stores to form a food group with over 3,000 stores. The group traded as Home and Colonial Stores until 1961 when it took the name of Allied Suppliers. Lipton's became a supermarket chain focused on small towns, before Allied's 1982 acquisition by Argyll Foods: The supermarket business was re-branded as Presto during the 1980s.

Thomas Lipton began travelling the world for new items to stock in this store, one such item was tea, since sales had grown from £40 million pounds from late 1870s to £80 Million pounds by the mid-1880s. Lipton believed that the price was far too high so he started growing his own tea and selling them in packets by the pound, half pound, and quarter pound, with the advertising slogan: "Direct from the tea gardens to the teapot." Lipton teas were an immediate success in the United States. Thomas Lipton was knighted by Queen Victoria, who made him Sir Thomas Lipton in 1898 at the age of forty-eight.

The Lipton tea business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the United States and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business from Allied Suppliers.

In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton Partnership, for the marketing of ready to drink (bottled and canned) teas in North America. This was followed in 2003 by a second joint venture, Pepsi-Lipton International (PLI), covering many non-United States markets. PLI was expanded in September 2007 to include a number of large European markets. PepsiCo and Unilever each control 50% of the shares of these joint ventures.

Strength                      : Strong Brand Image, a well know brand

Product Ranges           : Different range of tea products in different kind of packaging like tea bags, canned and etc.

Positioning                  : Lipton is Unilever’s global tea brand. This is also the leading tea brand in the world. Lipton mainly offers three varieties: tea bags, packet tea and Ice Tea. Offered in both hot and cold format this brand is targeted to ‘Aspiring’ segment and mainly to the youth. The intended current positioning of the brand is ‘tea for out-of-home consumption’.

Yeo Hiap Seng Limited is an investment holding company as well as a drink manufacturer in Singapore and Malaysia. It is a multinational corporation that has offices and market presence in the US, Europe, Australia, New Zealand, Maldives, Mauritius, Mongolia, Pacific Islands, China, Hong Kong, Cambodia, Myanmar, Laos, Vietnam, and Japan. It produces its own Asian drinks and has the license from Pepsico to produce Pepsi, 7 Up, Mountain Dew, Mirinda and Mug Root Beer. In addition, Yeo's also exclusively manages other international brands such as Red Bull, Gatorade, Evian, Volvic, Uni-President, Allswell, Hain Celestial, and Erika Dairies. Some of its house brands (See Below) include H-Two-O, Yeo's Asian Beverages, Justea, and Pink Dolphin.

The company has its history dated back to 1900. Founded by Yeo Keng Lian, a native of Fujian, China, it was established in Singapore in 1935 as the Yeo Hiap Seng Sauce Factory. The company was incorporated in Singapore on 20 December 1955 and was listed on 7 November 1968 and renamed to its present name. The 1950s saw the company can curry chicken, pioneer the bottling of soy milk, and package Asian drinks in Tetra Brik aeptic containers using the Ultra-high temperature processing system. In June 1995, Robert Ng took over as chairman of Yeo Hiap Seng (YHS).

Yeos also have canned iced tea products which was very famous among the peoples. The product brand image was as good as Lipton have. And they also have other kind of beverages besides tea. For the celebration or any event held, Yeos’s product always people’s choice to buy.

Strength                     : Strong Brand image, have variety of drinks, have convenience type of product packaging.

Products Ranges         : Iced Teas, juices, and health beverages.

Positioning                  : a manufacturer of healthy food and beverage products

Nestea is a brand of iced tea manufactured by Nestle and distributed by Nestle company's beverage department in the United States and by Beverage Partners Worldwide (BPW), a joint venture between The Coca-Cola Company and Nestle, in the rest of the world. It competes with Unilever/PepsiCo's Lipton Iced Tea. It provides a variety of tea products, in regular and diet forms, including liquid and powdered tea concentrates, refrigeratable teas, and ready-to-drink bottles dispensed by vendor or vending machine. The beverage comes in several flavors, depending on the country.

In January 2012, it was announced that the joint venture between Coca Cola and Nestle would be phased out by the end of the year. Nestle retained the right to the Nestea brand name, while Coca Cola continues to manufacture the same drink under another brand.

Strength                      : Have very strong brand image and huge market over the world

Product Ranges           : Iced tea products and Fruit Juices

Positioning                  : NESTEA is the surprisingly tasty, refreshment experience with sensational real fruit taste.

Indirect Competitors

Mountain Dew (stylized as Mtn Dew in the United States) is a carbonated soft drink brand produced and owned by PepsiCo. The original formula was invented in 1940 by Tennessee beverage bottlers Barney and Ally Hartman and was first marketed in Marion, Virginia; Knoxville, Tennessee and Johnson City, Tennessee with the slogan "Ya-Hoo! Mountain Dew. It'll tickle yore innards." A revised formula was created by Bill Bridgforth in 1958. The Mountain Dew brand and production rights were acquired by the Pepsi-Cola company in 1964, at which point distribution expanded more widely across the United States and Canada.

Between the 1940s and 1980s, there was just one variety of Mountain Dew, which was citrus-flavored and caffeinated. Diet Mountain Dew was introduced in 1988, followed by Mountain Dew Red, which was introduced and subsequently discontinued in 1988. While Mountain Dew Red was short-lived, it represented the beginning of a long-term trend of Mountain Dew being produced in different flavor variations. In 2001, a cherry flavor called Code Red debuted.

Ribena is a British brand of fruit-based non-carbonated and carbonated soft drink and fruit drink concentrate produced by GlaxoSmithKline. The original and most common variety contains real blackcurrant juice. The name derives from the botanical name Ribes, the genus to which the blackcurrant belongs.

            There have been various incarnations of carbonated "Sparkling Ribena", sold in cans — throughout the 1980s and early 1990s there was a can-based version simply named "Ribena". In about 1993, "Ribena Spring" was launched, a gently carbonated version in ready to drink bottle form, which was discontinued and replaced with "Ribena Spark", another can-based carbonated edition, in the late 1990s. Ribena Spark was finally discontinued in 2011. It is claimed in advertisements for Ribena that 95% of all UK and Irish farmed blackcurrants are used in their drinks. This has now been changed to "nearly all of British blackcurrants are used in Ribena"

SWOT Analysis

Strength

Heaven and earth have convenient and unique design of packaging, will give the calming and smoothing effect after consume which could satisfies your thirsty. And it is good for health.

-          The Coca-Cola Company products with strong image of branding.

-          Made from good quality and fresh ingredients.

-          Affordable price, not considered cheaper but still can be compete with other brands

-          Taste delicious

-          Not over sweet

-          Savior of Thirsty

-          had a calming and soothing effect on drinkers

-          Has international standards

Weaknesses

-          Poor Advertising (previous)

-          Brand new product in Malaysia

-          Low rate of awareness on this products

-          Have strong competitors in the market

-          Less promotion.

Opportunities

-          Heaven and Earth have more unique flavor and fragrance, and it doesn’t taste sweet which the sweetness has been under a balanced value.

-          Other brands product have been introduce a long time, their product life cycle is starting to decline, this is the chance for Heaven and Earth to promote.

-          With proper advertising and promotion may make the awareness of the product rises.

Threats

-          Other brands like Lipton still have stronger image compare to our product because they are old label which has been well known by people in Malaysia.

-          Iced Tea beverages have been a mainstream product which may cause the consumer feel bored to try for the same kind of products.

  

Strategic Target Audience

Proposed Primary Target Audience

Demographics:

-          Age                                          : 15 to 25 years old

-          Gender                                    : Male and Female

-          Education                                : Secondary schools and above

-          Occupation                              : Office working and Student

-          Income range                          : Between MYR 500 – MYR 2500

-          Race & Ethnicity                     : All

-          Geographical Location            : Urban and Suburban

Psychographics:

-          Perception: Juice tea made gave relaxing, calm and smooth effects to especially those working adults who suffered from tiredness.

-          Learning: Word of mouth, Supermarket Shelves, TV commercial and newspaper

-          Motivation: Work from tiredness and stress, Heaven and Earth Tea would help them to calm and release their stress without harming their health.

-          Attitude & Personality: Independent and confident, active, health conscious

-          Lifestyle: Working hard during weekdays, rest on night time and weekends, have healthy lifestyle habits.

  

Proposed Secondary Target Audience

Demographics:

-          Age                                          : 21 to 30 years old

-          Gender                                    : Male and Female

-          Education                                : Secondary and above

-          Occupation                              : Office working

-          Income range                          : Between MYR 1500 – MYR 2500

-          Race & Ethnicity                     : All

-          Geographical Location            : Urban and Suburban

Psychographics:

-          Perception: Juice tea made gave relaxing, calm and smooth effects to especially those working adults who suffered from tiredness.

-          Learning: Word of mouth, Supermarket Shelves, TV commercial and newspaper

-          Motivation: Work from tiredness and stress, Heaven and Earth Tea would help them to calm and release their stress without harming their health.

-          Attitude & Personality: Independent and confident, active, health conscious

-          Lifestyle: Working hard during weekdays, rest on night time and weekends, have healthy lifestyle habits.