Strategy for Introducing a New Product Research Paper

Strategy for Introducing a New Product - Research Paper Example The company has loyal customers in the market because of its persistence. Today, it is still a dominant player in the tea industry in most of its countries. Tetley is just about to introduce a new product into the market. However, before the launch, the company needs to establish whether the market will accept the new product. In addition, the company needs to identify the specific target in the market. This paper will examine the market trends in order to provide the answers to these issues. Tetley has had immense impact in the market. It is through their marketing strategies that they have managed to win a large market share. Through this therefore, the company owns the credit for innovating tea bags in the early 1900s although the venture came after accidental realization that tea bags were a possibility in packaging. The company has its roots in the United Kingdom where its founders started out venture. The company has posted growth in several other countries. Despite the competi tion that has grown over time as new entries in the tea industry, Tetley tea still dominates the United Kingdom market. Tetley group has several sister companies operating separately. The entire sister companies offer unique brands to the region in which they operate. In 2011, Tetley dominated the market achieving 24% retail value in Canada. Tea products had a retail growth value of 4%. The volume growth in the same year was 1 %. The Canadian market posted C$ 547 million. The Canadians prove to be a good market for tea. They easily try out new tea products with the right persuasion (Masterson and Pickton, 2010:85). Tetley’s products did well in the Canadian market with black tea special brand scooping a 44% share followed by green tea with 31% while standard black tea got 18 %, which was a one percent rise from 2010. In addition, the herbal tea and fruit ranges of products as well as the color therapy proved a real success in the Canadian market. Future prospects indicated a growth in tea sales by 2016. In the United Kingdom, tea prices recorded an increase in 2010. Black tea made more sales in the market though it portrayed minimal growth. Herbal and green tea exhibited more growth in the market because of the health benefits. 12% of total sales of tea were the herbal and green tea. Most of the sales of tea were to people above 65 years accounting for 88% of consumption. Tea consumption was relatively lower for the younger generation. Tea is receiving competition from other products among the younger generation and the 90% breakfast tea sales were going down. The trends in 2011 changed because of the campaigns on the benefits of tea. This year saw Unilever take a lead in the percentage of sales. In the United States of America, tea exhibited an increase in popularity in 2011 because of the increased awareness of tea benefits on health. Tea posted a growth of 2% reaching 72278 tonnes. In this market, Unilever was leading in the percentage of sales. The tea industry in America is likely to show a 10% growth by 2016. The healthier products such as herbal tea, iced tea, and fruit-varieties stand a chance to indicate growth because of the health benefits (Masterson and Pickton, 2010: 86). The Indian market trends portrays that black tea, the standard variety still dominates because of the Indian cultural and traditional set up (Pride et al, 2011:131).