Lipton Ice Tea Goes Global The Eastern European Challenge Part B Strategy
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In the mid-1980s, we set up our first ice tea factory in the US. It was a success—sales of Lipton Iced Tea were growing by more than 30% annually. However, I soon found out that the company’s success had not penetrated Eastern Europe. So, I spent several months in Russia, Ukraine, and Belarus, learning about this untapped market. As a result, the following strategy was developed: 1. Developing strategic alliances: We formed strategic
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The Eastern European Challenge Part B Strategy was created with Lipton Ice Tea as a benchmark to reach a large, but underserved, population. Lipton Ice Tea had launched in Hungary, Romania, Ukraine, Poland, and Russia, and established itself with the local consumer and the local brands. In 2013, Lipton brought back its international expansion campaigns, and Lipton Ice Tea Hungary was launched in Central Europe. Lipton Ice Tea is the leading non-alcoholic beverage across the entire market, with an estimated
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In 1979, Lipton Ice Tea introduced its first product, Iced Tea. It was an instant success. In 1985, it entered the European market with its famous “Ice Out” ads. Two years later, it introduced Lipton Iced Tea in the United States. In 1988, it entered the Indian market. he said Lipton Iced Tea entered Europe in 1991 and launched Lipton Redi Iced Tea in 1996. In 1998,
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The Eastern European challenge that Lipton Ice Tea faced was a daunting one. Despite being the world’s number 1 tea company, our European markets had a significant number of small-scale markets with high tariffs, and little awareness. The biggest challenge was building our brand awareness and promoting the products. To achieve this, we had to leverage off our strong brand identity, marketing efforts in those markets, and partnerships with the retail chains to establish a foothold in these new markets.
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I’ve always been interested in globalization. In high school I wrote a research paper “What if? An Analysis of the Global Potential.” I’m not sure the rest of my life would have panned out if I had only read “What if?” instead of “Wow!” And I don’t believe I would have been born if I had a father. I mean, we’d be having a conversation here in my home instead of writing this! So you could say that I was always interested in international trade, but I wasn’t interested in “international
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Lipton, the world’s best-selling tea company and largest tea producer in the world, recently went into the “go global” direction by opening its international tea houses across Eastern Europe, such as Hungary, Bulgaria, and Romania. The company invested $10 million, employing over 200 staff, to open two tea houses each, and a new tea room with 68 seats was built in Cluj-Napoca, Romania. The tea room in Cluj-Napoca opened in May 2010,
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Lipton Ice Tea Goes Global The Eastern European Challenge Part B Strategy Lipton was a name familiar to most in the western world. Founded in 1899, it is the oldest coffee company worldwide. The company’s success can be attributed to their branding and marketing strategies. However, over the years, Lipton failed to grow internationally. The company struggled to capture its market share among Eastern Europeans. This situation was especially difficult given the economic boom in the region. The company decided to change course