Marketing Mix of Lipton and 4Ps (Updated 2024)

The Marketing mix of Lipton analyses the 4Ps of Lipton, which includes the Product, Price, Place, and Promotion of Lipton. Lipton is associated with the beverage industry as it deals with tea marketing. The company was founded in 1890 by its founder, Thomas Lipton. It is jointly owned and marketed by its parent companies, PepsiCo and Unilever, with 50-50 ownership. Lipton has been projected as a healthy and refreshing drink, and some of its competitors are as follows-

• Society Tea
• Tetley Tea
• Brooke Bond Taj Mahal Tea
• Tulsi Green Tea
• Nestle Nestea
• Snapple

About Lipton

• Type: Tea brand
• Industry: Food and beverage
• Founded: 1890
• Founder: Thomas Lipton
• Headquarters: London, England
• Area served: Worldwide
• Key people: Pierre Laubies (Chairman) and Nathalie Roos (CEO)
• Number of employees: 25,000

Lipton Product Strategy

Rich taste, unique aroma, and distinctive flavor make Lipton one of the most in-demand tea brands in the world market. It has a diversified product portfolio that has evolved to include various variants like-

Lipton Iced Tea Mixes

• Decaf Lemon Iced Tea Mix

Lipton Fresh Brew Iced Teas

• Cold Brew Tea Bags

Lipton Iced Tea

• Sparkling Iced Tea Citrus Green Tea

Lipton Green Tea

• Green Tea with Mint
• Lemon Ginseng Green Tea

Lipton Green Tea

• Pure Green Tea
• Mandarin Orange Green Tea

Lipton Tea and Honey

• Mango Pineapple iced Green Tea to Go packets

Lipton Iced Tea Liquids

• Summer Peach liquid Iced Tea mix

Lipton K-Cup Pack

• Classic K-Cup Pack

Lipton Tea Pyramids

• Earl Grey
• English Breakfast
• Black Pearl

Lipton Black Teas

• Decaf Black Tea
• Loose Black Tea

Black Herbal Lipton Tea

• Amazingly Grey
• Irresistible Lady Lipton
• Lemon Ginger

Lipton, a well-known brand in the beverage industry, offers a diverse range of products.

The product mix of Lipton in 2023 is as follows (Source)

1. Tea Bags: Lipton is famous for its tea bags, offering a variety of flavors such as black tea, green tea, herbal tea, and fruit-infused teas. They have both regular and decaffeinated options.
2. Loose Tea: Lipton provides loose tea varieties for traditional tea enthusiasts for custom brewing strength and flavors.
3. Iced Tea Mixes: These powdered mixes are used to prepare iced tea quickly. They come in several flavors, like lemon, raspberry, and peach, and are available in sweetened and unsweetened versions.
4. Bottled Iced Tea: Lipton also offers ready-to-drink iced teas in bottles. These are convenient and come in various flavors, often including added ingredients like lemon, berries, or other flavors.
5. Tea Concentrates: Lipton provides tea concentrates that can be diluted to make large quantities of tea quickly and easily for food service or extensive volume use.
6. Specialty Teas: This includes a range of premium and specialty teas, such as Earl Grey, English Breakfast, and exotic blends with spices and other flavorings.
7. Health and Wellness Teas: These are teas specifically blended for health benefits, like those with added vitamins, teas for digestion, detox teas, etc.
8. Seasonal and Limited-Edition Flavors: Occasionally, Lipton introduces seasonal or limited-edition flavors, catering to specific holidays or events.

Lipton’s product mix may vary based on region and market trends, and it continuously innovates to introduce new products and flavors in response to consumer preferences.

Lipton Place Strategy

Thomas Lipton, in 1871, opened a small shop that expanded to include two hundred shops by the 1880s. Later, he sold this supermarket chain to Argyll Foods so that its company could concentrate on tea products. In 1890, Thomas Lipton purchased a tea garden in Ceylon and started selling Lipton Tea in quarter packages, half, and one pound.

It became a favorite beverage in the United States market. Pepsi-Lipton’s partnership started selling canned and bottled ready-to-drink teas in North America and later expanded to include several European markets. It gathers tea from different plantations in the world in places like China, Kenya, India, and Sri Lanka.

Lipton owns a plantation in Tanzania and Kenya. It caters to a world market as its products are easily available in nearly one hundred and ten countries like Australia, New Zealand, India, Russia, the United Kingdom, the United States, and Japan. Its distribution network includes services from a supply chain of distributors, retailers, and dealers to consumers via corner shops, supermarkets, convenience stores, and hypermarkets.

Lipton Place’s Strategy is as follows:

1. Global Distribution: Lipton has established a solid global presence, distributing its products in over 100 countries and leveraging Unilever’s extensive distribution network to reach a broad consumer base.
2. Retail Partnerships: The brand partners with various supermarkets, grocery stores, and convenience stores, ensuring that Lipton products are readily available to consumers in everyday shopping locations.
3. Online Sales Channels: Embracing the digital age, Lipton has expanded its reach through online marketplaces and e-commerce platforms, making it easier for customers to purchase their products anywhere.
4. Food Service and Hospitality Industry: Lipton collaborates with restaurants, cafes, and hotels, offering a range of teas as part of their beverage menus, thus tapping into the food service industry.
5. Localized Product Offerings: Understanding regional preferences, Lipton adapts its product range to suit local tastes and dietary habits, ensuring relevance and appeal in different markets worldwide.

Lipton Pricing Strategy

Lipton caters to a mass market that includes people from every section of society. Through its penetration policy, it has tried to penetrate every rural or urban segment to acquire a greater market share. Moreover, the brand faces stiff competition from several rival brands and has to maintain competitive prices to retain its competitive advantage. Intelligent packaging, great quality, and comparatively low prices have made Lipton an accessible beverage in the consumer market.

Lipton’s pricing strategy is multifaceted and designed to cater to a diverse customer base while maintaining a competitive edge in the market. Here’s an overview:

1. Market Penetration Pricing: Lipton often employs a market penetration pricing strategy for new markets or product launches. This involves setting lower initial prices to reach many consumers quickly, aiming to establish a strong presence and gain market share rapidly.
2. Competitive Pricing: In markets with intense competition, Lipton sets prices comparable to its competitors. This strategy is crucial in retaining market position and ensuring their products remain attractive to consumers compared to similar products.
3. Value-Based Pricing: Recognizing customers’ varying needs and perceptions of value, Lipton employs value-based pricing for its premium and specialty products. Prices for these items are set based on the perceived value to the consumer, factoring in quality, exclusivity, and brand prestige.
4. Psychological Pricing: Lipton marketing often uses psychological pricing tactics, like pricing products just below a whole number (e.g., $4.99 instead of $5.00) to make the price appear significantly lower. This strategy can influence purchase decisions by creating a perception of more excellent value.
5. Dynamic Pricing: Leveraging digital platforms, Lipton adopts dynamic pricing strategies, especially for its online sales. Prices may vary based on demand, seasonality, and consumer behavior trends, allowing Lipton to maximize profits while adapting to market changes.
6. Promotional Pricing: Lipton frequently uses promotional pricing strategies, such as discounts, coupons, and bundle offers, to attract customers, boost short-term sales, clear inventory, or encourage trial of new products. This approach helps in attracting price-sensitive customers and maintaining sales momentum.

By combining these various pricing strategies, Lipton effectively caters to different market segments, from budget-conscious consumers to those seeking premium tea experiences, thus maintaining its position as a global brand.

Lipton Promotion Strategy

Lipton has adopted an aggressive marketing strategy and positioned its beverage as a healthy brand through several promotional activities highlighting its quality, affordability, and user-friendliness. Lipton started its marketing with an advertising slogan, “Direct from the tea gardens to the teapot.”

Some other important taglines are 100% Natural and 100% real Tea, and Lipton’s gets into more hot water than anything. Its ad campaigns have been launched on television, radio, magazines, newspapers, billboards, and social media marketing platforms.

Brand realizes the positive impact of celebrity endorsement on the common masses and has roped in Indian actors Shraddha Kapoor and Anushka Sharma for Lipton Green Tea ads and internationally acclaimed American actor Hugh Jackman for Lipton Ice Tea commercials. Lipton brand has been the recipient of several awards and recognition. In May 2009, the Corporate Green Globe Award was awarded for its work with Rainforest Alliance. Lipton Tea, in 1914, sponsored Maurice Guillaux, a French Aviator, on his first flight from Melbourne to Sydney.

Lipton Promotion Strategy involves the following:

1. Integrated Marketing Campaigns: Lipton employs a mix of traditional advertising (TV, print, billboards) and digital marketing tools (social media, online ads, influencer partnerships) to reach a broad audience and engage customers across various platforms.
2. Product Sponsorships and Partnerships: The brand actively engages in sponsorships and partnerships with events, celebrities, and influencers, leveraging their reach and influence to promote their products and enhance brand visibility.
3. Sales Promotions and Loyalty Programs: Lipton uses promotions like discounts, limited-time offers, and loyalty programs to incentivize purchases and foster long-term customer relationships, boosting immediate sales and repeat business.

Some Recent Video ads and Print ads of Lipton are:

Liked this post? Check out the complete series on Marketing Mix