Lipton vs Arizona

In: Business and Management

Submitted By wirusni1993
Words 2895
Pages 12
Lipton and AriZona: price competition and equilibrium in the Unites States RTD market.

Group essay for Managerial Economics
Authors: Serebrennikov Artem, Salzberg Arthur
MIM-2015

Contents

Abstract 3 Introduction 3 RTD Tea Industry Profile in USA market 5 Price competition on USA market 2010-2014 6 Marginal Costs 9 Using Cournot and Bertrand models 10

Abstract
The purpose of this essay is to investigate price strategies of Uniliver (Lipton Iced Tea) and Arizona Beverages USA (stylized as AriZona) and find equilibrium in the ready-to-drink (RTD) market. These two companies compete in USA market and possess great market power. Our team use Cournot and Bertrand approaches to find equilibrium.
We have completed a thorough analysis of : * Ready-to-Drink (RTD) tea industry * Competitive landscape * AriZona and Lipton brand perception * AriZona and Lipton sales and financial position
We also believe that we can revitalize these brands through : * A better focused target market * Rebranding * Reformulation and new flavors * Increase in marketing expenditures * New line extensions * Building stronger partnerships with distributors

Introduction
In 2005, the tea industry reached the $1.7 billion category and it is expected to continue growing indefinitely. Market analysts believe the tea industry will continue to boom and is not expected to reach saturation level in the near future.
Unilever is aiming for global processes and alignment of their human resource activities. “Unilever is working with Accenture to identify supply opportunities within the marketplace and will look to develop longer term relationships with a rationalized base of preferred suppliers. In order to help with the increase in revenue, Unilever changed companies focus to places with higher potential for growth. Concentration on new…...

Similar Documents

Lipton Assignment

...Lipton Yellow Label Tea Lipton was created by Sir Thomas Lipton at the end of 19th century. Under the slogan “direct from the tea gardens to the tea pot,” the Lipton business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the US and d Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the reminder of the global Lipton business. Lipton is one of the world’s greatest refreshment brands. It’s the world’s best-selling tea brand, has been established for more than 100 years, and is available in more than 100 countries. Sir Thomas Lipton Did you know that globally? * 1649 cups of Lipton Tea are enjoyed every second. * 8245 cups of Lipton Tea are enjoyed every time you blink. * 1252 cups of Lipton Tea are drunk every time your heart beats. * 52 billion cups of Lipton Tea  are drunk each year Some facts related to tea (drink to your health): * Drinking four cups of tea is rehydrating, NOT dehydrating as is often said - unless the amount of tea consumed at one sitting contains more than 250mg of caffeine – that's the same as five cups of tea. * Tea without milk and sugar has no calories. * In hot weather, tea refreshes you by raising your body temperature and momentarily causing perspiration, which cools the skin.  Vision: To provide the best quality tea has made Lipton the number one tea in the world today. Lipton offers an option to tea lovers to......

Words: 993 - Pages: 4

Arizona Statehood

...Sharon Hatcher October 9, 2012 POS301-Arizona and Federal Government Professor Halperin Part I: Arizona Statehood Upon the ending of the Mexican American War (1846-1848), Arizona began the journey to statehood. Arizona began applying for statehood in 1872. Arizona drafted a constitution in 1891. The Congress continually ignored the request for statehood by Arizona because of because of the lack of residents, unpromising economic prospects, they are conservative democrats and demographics. Once congress passed the Enabling Act, Arizona was forced to create a constitution and it was to be approved by Congress and the acting President, also, this act presented restrictions on the state’s management of public land; stating that the majority of the land is designated as school trust land. In 1912, Arizona was finally given statehood, it was the 48th state. Leading up to Arizona’s statehood there have been many events that have lead to the formation of this state. The following are key events in history have lead to the statehood of Arizona: the Pre-territorial period, the Spanish period, the Mexican period, U.S. Controlled period and the Territorial period. Arizona Three Branches of Government Arizona Three Branches of Government Executive Branch * Governor * Power to appoint * Removal powers (but limited) * Fiscal powers * Military powers * Lawmaking powers Legislation powers * the power to propose new legislation *...

Words: 897 - Pages: 4

Arizona

...Arizona Constitution Running head: Arizona Constitution Arizona Constitution Arizona Constitution Arizona became the forty-eighth state on February 14, 1912. Many events led to the admission of Arizona as a state in the Union and are recognized in the following timeline. ❖ Arizona History – 1700’s • Arizona was first explored by the Spanish • 1539 – Father Marcos de Niza explores Arizona and claims it for Spain • 1752 – First permanent Spanish settlement was established in Tubac • 1776 – A Spanish fort is built at Tucson ❖ Arizona History – 1800’s • 1821 – Mexico gains military control of Arizona • 1821 – Trappers and traders from the United States came into Arizona • 1848 – United States won the Mexican War and gained all of Arizona, north of the Gila River through the Treaty of Guadalupe Hidalgo • 1850 - The Great Compromise organized this new territory and allowed for division of the territory into states to be admitted to the Union in the Future • 1854 – The rest of Arizona becomes part of the United States by the Gadsden Purchase • 1891 – An Arizona Constitution was written and passed by voters. While the US House of Representatives also passed the constitution, the Senate did not approve statehood. ❖ Arizona History...

Words: 262 - Pages: 2

Arizona Statehood

...Arizona Statehood & Constitution Kelli Miller Grand Canyon University: POS 301 January 22, 2013 Arizona Statehood & Constitution Arizona is recorded to have began in 1539 by the Europeans with the first documented exploration of the area by Marcos de Niza. Arizona was part of Mexico because the population was small. The United States took possession in 1848 after the Mexican-American War. Arizona split off from New Mexico in 1863, and became a state on February 14, 1912. Arizona still continues to grow today as a state in population, with retirees and tourism. I will be describing and analyzing events that have impacted Arizona becoming a state. Preterritorial Period The earliest cultures of Arizona can be speculated to have appeared around 25,000 BC. In 500 A.D., the more defined cultures emerged being known as the Hohokam whom was pit dwellers that specialized in irrigation systems. They brought water by way of canals to grow crops; and many of the remains of their canals still can be traced. The Casa Grande tells us a great deal about the achievements of the civilization. Beginning in the 11th Century, the Pueblo developed underground chambers to build their homes and cotton fiber. They lived in elaborate cliff dwellings, unlike the Hohokam. Around this time, Spanish colonist began to populate the territory in search of fortune. The Apache and Navajo whom exited Canada in the 13th century began to settle the land. This time was known for many battles......

Words: 1314 - Pages: 6

Pepsi Lipton

...BRISK® CASE STUDY Overview Customer Profile The Pepsi-Lipton Partnership is a joint endeavor between two major brands, Pepsi-Cola North America and Unilever. This entity is responsible for the Canadian promotions of Lipton, one of the leading beverages in the global market. Business Situation The company launched an entirely new Brisk® Ready-to-Drink Iced Tea early last year. The brand recognized the emerging presence of a new media segment and required assistance in exploring the potential of direct-client communication using Mobile and Web technology. Addictive Mobile Corp. Solution Addictive Mobile Corp. combined marketing savvy with their licensed technology to design and power a Txt 2 Win Contest campaign, “Beat the Blues with Brisk®”. The promotion incorporated both web and mobile mediums to enhance customer experience. 1 Benefits Brisk® gained the ability to offer contestants premium web and mobile content while providing an amusing, interactive and instantaneous entry method. This trend setting use of wireless technologies created a consumer buzz while allowing the brand to track promotional results in real-time. PROFESSIONAL SOLUTION Traditional media assisted in forming initial contest awareness with high school party announcements, beverage cooler stickers and high traffic website banners. Consumers were informed they could enter the Brisk® contest for chances to win a grand prize and one of the weekly draws, 1001 prizes in all. Participants sent an SMS......

Words: 413 - Pages: 2

Pepsi Lipton Brisk

...9 -5 1 2 -0 1 1 REV: FEBRUARY 3, 2012 THALES S. TEIXEIRA ALISON CAVERLY Pepsi-Lipton Brisk In September 2010, Mary Barnard and Marisol Tamaro returned to their offices at Pepsi Headquarters after a meeting with their new advertising agency. Mekanism had just been hired to work on the re-launch of Brisk Iced Tea, a brand that had had its glory days in the ‘90’s and later had become stagnant. As of 2009, Brisk sales were rising and it attained a 10% market share in the fast growing ready-to-drink tea category, despite having virtually no advertising support. Pepsi decided that it would start investing heavily in the brand in 2011. To start off the year, a spot had been purchased for a Brisk ad to be shown during the Super Bowl, in early February. What Barnard and Tamaro needed to decide was how to carry the advertising momentum in the months following the most viewed sports event in American television. Should they stick with advertising on TV or try out a viral advertising approach in social media? Their budget wouldn’t allow for both media to be used. Barnard, Vice President at PepsiCo and the General Manager of the Pepsi-Lipton Tea Partnership (PLP), owner of Brisk, was in charge of the final decision and conferred with Tamaro, Brand Building Director for Brisk, on what to do. PepsiCo was the second largest food and beverage company in the world. So at $340 million in net revenues in 2009-10, PLP seemed like a drop in the ocean compared to the $10 billion1 from its......

Words: 8955 - Pages: 36

Miranda vs. Arizona

...February 25, 2013 PLS 135 Miranda vs. Arizona In Miranda v. Arizona, the Supreme Court ruled that detained criminal suspects, prior to police questioning, must be informed of their constitutional right to an attorney and against self-incrimination. Ernesto Miranda was the plaintiff and the state of Arizona was the defendant. Ernesto Miranda was convicted of the March 1963 kidnapping and rape of an eighteen-year-old girl in Phoenix, Arizona. After the crime the police picked up Miranda because he fit the description of the girl’s attacker. The officers took him into an interrogation room and told him that he had been identified by the victim, although that was false. After the police questioned Miranda for two hours, he confessed. At the trial, the defense counsel tricked one of the detectives into admitting that Miranda was never given the opportunity to seek advice from an attorney before his interrogation. Miranda was convicted and sentenced to 40-60 years in prison. When he tried to appeal, the U.S. Supreme Court set aside his conviction. Then Chief Justice Warren wrote: “Prior to and questioning, the person must be warned that he has the right to remain silent, that any statement he does make may be used as evidence against him, and that he has a right to the presence of an attorney, either retained or appointed…” Miranda was retried, only this time without his confession being introduced into evidence at the trial, he was convicted again. Even though his......

Words: 589 - Pages: 3

Marketing - Lipton vs American Express

...understands their crucial role in being able to market their product successfully and therefore profitably. The two major organizations discussed will be Lipton and American Express. Here, there will be a discussion of the two contrasting products; a 500ml bottle of Lipton Peach Ice tea and an American Express Platinum Credit Card. These two products will be compared and contrasted to one another in terms of product description, classification and segmentation. Product Description When a marketer sells a product, they must take into consideration the three levels of a product; the core, the actual and augmented. Kotler et al. (2007) describes the ‘core product’ as core benefits which act as problem solving services that consumers are buying when they attain a product. The ‘actual product’ is a combination of the product’s features, styling, quality, branding and packaging. And lastly, the augmented product is the additional consumer services and benefits which are included to increase competitiveness. With Lipton Peach Ice Tea, the core product is that it is a drink; a benefit to quench thirst. It also has a core benefit of social acceptance, as there may be a perception that those who drink Lipton Peach Ice Tea are ‘cool’. Also, the ice tea is convenient as it is easily bought and managed. The actual product features of the Lipton Peach Ice Tea are that it is a refreshing drink and it is also perceived to be healthy. It is also stylish as it is packaged in a......

Words: 2167 - Pages: 9

Arizona Constitution

...Running head: Arizona Constitution Arizona Constitution Arizona Constitution Arizona became the forty-eighth state on February 14, 1912. Many events led to the admission of Arizona as a state in the Union and are recognized in the following timeline. ❖ Arizona History – 1700’s • Arizona was first explored by the Spanish • 1539 – Father Marcos de Niza explores Arizona and claims it for Spain • 1752 – First permanent Spanish settlement was established in Tubac • 1776 – A Spanish fort is built at Tucson ❖ Arizona History – 1800’s • 1821 – Mexico gains military control of Arizona • 1821 – Trappers and traders from the United States came into Arizona • 1848 – United States won the Mexican War and gained all of Arizona, north of the Gila River through the Treaty of Guadalupe Hidalgo • 1850 - The Great Compromise organized this new territory and allowed for division of the territory into states to be admitted to the Union in the Future • 1854 – The rest of Arizona becomes part of the United States by the Gadsden Purchase • 1891 – An Arizona Constitution was written and passed by voters. While the US House of Representatives also passed the constitution, the Senate did not approve statehood. ❖ Arizona History –......

Words: 455 - Pages: 2

Miranda vs Arizona

...Miranda v Arizona Westwood College Miranda v. Arizona Every time someone is arrested the police officer reads them their right, which was not always the case. They read as followed "you have the right to remain silent anything you say can and will be used against you in the court of law. You have the right to an attorney, if you can't afford one, one will be provided to you." But why do the officers have to remind the people of their rights, because of the Miranda v. Arizona case. Before the Miranda v. Arizona case people were not reminded or even aware that they had such rights. In the 1963 Ernesto Miranda was arrested for kidnap and rape. He was accused of kidnapping and raping a young girl and when the officers arrested Miranda and then the victim identified him. After the trial was done Miranda was found guilty because after being interrogated for a couple hours he confessed to the crime not knowing that the 5th amendment states you don't have to plead guilty if you do not want to. That is what self incrimination is, for example when Miranda was being asked about the crime he did not have to answer he could of just said he plead the 5th and said he wanted to wait for an attorney to both consult him and be with him while he was being interrogated. If Miranda would have known that he had that right he probably would not have incriminated himself. Miranda was also known to have some mental problems......

Words: 1127 - Pages: 5

Pepsi Lipton and Brisk

...by PLP (Pepsi Lipton Tea Partnership) and had its glory in 90s and later became stagnant. Brisk’s first major advertising campaign was launched in 1996, was a series of television and print ads featuring clay based animation versions of iconic characters and celebrities. After Brisk campaign wrapped up in 2002, PLP stopped investing in mainstream advertising, opting to support its core brand, Lipton. PLP decided to invest heavily in promotion of this brand in 2011. Judgement: PLP should go for viral ad and below are supporting reasons in importance order: * While Brisk’s sales were growing, the brand was falling behind its competitor in terms of its social media presence. Mekanism concluded from one study comparing social media campaigns that Brisk was practically absent from this space (Exhibit 5) * Table A below displays sales and market shares from 2007-2010. It’s to be noted here, Brisk sales were growing fast with minimal consumer oriented promotion was done in this period with the exception of package redesign, POS display and other trade promotion activity * For fiscal ending May 2010, Brisk was 3rd in rank and it’s sales volume growth was 34.4% compared to last year without major traditional media advertising done by Brisk and it’s main competitor “Arizona”. The major categories of promotional spending had been trade and consumer promotion. So it’s clear that TV ads are not translating into sales (visible in Exhibit 4 below). Arizona and Brisk......

Words: 666 - Pages: 3

Pepsi Lipton

...consumers' behavior can be taken into account to compare benefits of the each medium? Answer: Average time spent by consumer is almost same for both TV (31%) and Internet (28%) The following are consumer characteristics which can be used to evaluate and compare the benefits of different medium • The TG is young males – The media chosen must be frequently accessed by them • The aim is to build a fan base – The media chosen must provide for fast penetration • Brisk needs to create a buzz • Focus is on developing ‘edgy 'and ‘cool 'perception Question 3. Which of the 4 ads Mary and Tamaro choose? How would you evaluate? Which elements matter? Answer: • Target Group – Millennials males, who use social media very frequently • Rivals (Arizona) are already present on social media- online ads were more effective (Page 6 last para of case) • WOM can be a powerful approach to drive brand response • People remembered the Claymation campaign – new campaign should build on that • The target group liked entertainment (animations), humour and interactivity on social media • What Brisk needs to communicate is a brand of ‘attitude’ for young males and authenticity Ad #2 (The Brisk Brothers) will be the best fit to our mind because of the following reasons: • Six Claymation characters - each representing one flavor for Brisk (Product portfolio coverage) • Each brother would have unique personality - covering most possible personalities of TG which they can relate to which is......

Words: 813 - Pages: 4

Phoeniz, Arizona

...Anne Arundel Community College English 111 Molly Dean Essay #3 Outline Families, Parents, and Children Specific Purpose Idea: To inform my audience how the story “This is What It Means to say Phoenix, Arizona” relates to the topic of families, parents and children. Central Idea: Broken relationship between the father and son in this story. THESIS: Phoenix, Arizona is not only a place but it is also the name of a bird in Egyptian mythology that rises from its very own ashes and becomes reborn into a brand new life, making this story a regeneration. Through symbolism, imagery and the language the author uses in “What it means to say Phoenix, Arizona” displays how the death of a loved one, another relationship that was lost in rekindled. TYPE: In the beginning of the story, Victor had suddenly just lost his job, his father whom he wasn’t close with died of a heart attack but little does Victor know, he will soon be the one in a great deal with pain but with Victor is quickly uplifted by a former friend who brings hope and relief (to his life) while taking on this journey to Phoenix, Arizona. Examples of symbolism: Thomas Builds-the-Fire: his name actually has a lot of meaning behind it. Thomas Builds-the-Fire has a lot of dreams and visions when it comes to unrealistic things and he has a lot of passion which Victor does not have. “Phoenix” is an old myth that indicates a bird rises from its own ashes and becomes reborn. (The title) The......

Words: 494 - Pages: 2

Miranda vs Arizona

...Facts In March 1963, Ernesto Miranda, of Phoenix, Arizona, was arrested in connection with the rape and kidnapping of women. While in custody and after 2 hours of interrogation, he confessed of robbery and attempted rape. His confession and the testimony of the victim were used in the trial. The judge of the Superior Court allowed the confession was used and Miranda was convicted and sentenced to 20-30 years in prison Miranda appealed the case to the Arizona Supreme Court; His lawyer argues that his confession should not be used in court because he had not been informed of their rights. Arizona Supreme Court rejected his appeal and upheld his conviction. Miranda then petitioned for the case to be heard by the United States Supreme Court. Intimidation deprives suspects of their basic freedom and may lead to false confessions. The defendant's right to a lawyer is during interrogation allows the offender to tell their story without fear, effectively, and in a way that all his rights will be protected. Issue: Legal issue The issue of this case is if the government is required to notify the accused detainees of their constitutional rights of the Fifth Amendment against self-incrimination before questioning the accused. The government has to notify detainees of their constitutional rights of the Fifth Amendment. The Amendment explain “the right to remain silent, it just mean all that they confess could be used against them in court, his right to counsel and their right......

Words: 510 - Pages: 3

Arizona Government

...Abstract: The following paper will review the government of Arizona and how laws come into effect within the state system. It will establish an understanding of the initiative to create a bill in the Arizona Constitution and the laws and their significance to the citizens of the state of Arizona. These laws and initiatives continue to be the foundation for the government and the people of Arizona that drive the Constitution of the people of Arizona and their current government. Introduction In the state of Arizona, private citizens also have the ability to be lawmakers. Voters have the power of the initiative, referendum, and recall at the state level and in their cities and counties. In an initiative, voters propose a new law or amendment to the State Constitution. Voters collect signatures to have the initiative placed on the ballot for a vote. At election time, people vote for or against the new law or amendment. In a referendum, citizens vote on whether a current law should remain in effect. If the citizens are dissatisfied with how an elected official is representing them, they may vote to recall, or remove the official from the office. These provisions are the major force in Arizona’s political environment. This paper will explore the methods of how a law is introduced in the state of Arizona, as well as current initiative or legislative bill that is currently being considered in Arizona. In introducing a law, there are specific methods that should be followed.......

Words: 1050 - Pages: 5