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Marketing Pickwick Tea - Choose your country


									Marketing Pickwick Tea

Tea is a traditional and natural drink that allows you to enjoy tea at every moment
of the day. Popular moments to enjoy a cup of tea include breakfast, lunch,
afternoon and increasingly in evenings.

Segmentation / Differentiation

Pickwick brings many different teas to the market. There are several segments in
the tea market. Depending on assortment per country, the black tea segment could
include English Tea Blend, Ceylon Tea Blend and Earl Grey Tea Blend. These tea
blends can be drunk every day, at any moment and offer variation.
In addition to these teas, Pickwick offers in some countries a Variation box with
black tea blends.

Furthermore, there is the fruit flavoured tea segment that includes tea with a
recognizable taste. With Pickwick’s wide product offering in the fruit flavoured
segment, consumers have a conscious choice. It is fun for everyone. In most
countries Pickwick also offers fruit variation boxes with 4 different flavours to
choose from.

Thirdly, there is the herbal tea segment. As of late 1999, Pickwick has been
offering special blends based on Green Tea, Rooibos, Liquorice and Camomile.
Special combinations of ingredients give these blends their optimal taste.

In some countries, you can find fruit infusions in the assortment. For more
information on fruit infusions please go to the local Pickwick sites.

Target Group

Pickwick’s target group includes all tea drinkers. There are multiple moments of
usage: breakfast, lunch, afternoon and evening. Pickwick tries to fulfill these tea
needs by offering different teas. Look at the local websites for the assortment per

Product Policy

The name Pickwick stands for quality and pure enjoyment in tea drinking. Our wide
product selection offers room for variation and can play a defensive role towards
other drinks.

In some countries we owe our quality image and authority to the black tea
assortment. For Pickwick, it all began with this assortment. The black tea product
offering is positioned as refined, traditional quality tea. The fruit assortment is
positioned as young, renewing and playful. Variation is key to this positioning.

Through ongoing (new) product improvement and development, and by means of
market research, we determine if a blend is still up-to-date. Based on changing
consumer needs, tea blends and flavours are removed from or introduced to the

It is Douwe Egberts’ constant ambition to offer a lively and modern product
selection. Not only does this confirm our positioning of Pickwick as the tea
specialist, it also protects the complete tea market.

Price Policy

The price policy falls into two categories:
1. Internal
Profit contribution to Douwe Egberts and healthy trade margins are preconditions.
2. External
The price of tea on the world market is rather stable, mainly because supply and
demand are well balanced. However, tea (mainly tea bags) uses a lot of packaging
material. As a result, price mutations among paper and paperboard can also
strongly influence the cost price of tea.

The consumer price is related to the number of teas and additions (for instance
pieces of fruit) used in the blend, type of packaging format and possible additional

Place / Distribution Policy

Pickwick strives to have a good distribution (availability) for most of their
frequently sold teas.
For smaller products, full distribution is not desired because the inventory turn-
over per shop will become too low. Therefore, distribution is often selective.

Thanks to sophisticated production methods we are able to respond promptly to
changing customer needs. Therefore, a strong logistics system and stock control are
necessary. Furthermore, shelf performance is of great importance. Popular
products are often placed at the bottom of the shelf as it is a routine purchase.
Our variation packs though can be considered an impulse product, and are often
placed at eye height level.

Obtaining a strategic position in the shelf takes a lot of effort. Local account or
sales managers promote the product in order to get the retailer to buy the product,
and ensure they have sufficient stock. Moreover, the sales manager provides a
recommendation on whether to buy the new product or not, how to place a swift
order and where the product should be placed on the shelf.

Promotion / Communication Policy

Promotion/communication policy is based on two principles:

1. Promotional activities
Pickwick regularly carries out promotional activities that give consumers the
possibility to obtain attractive offers. These activities can be supported in shops
with striking displays for example.

Promotional activities are usually organised on a national and account (per shop
chain) level. It is crucial that all promotions perfectly reflect the Pickwick brand

2. Advertising
Depending on the target group and the objective of the advertising, Pickwick selects
a spectrum of media: TV-commercials, magazine advertisements, daily newspaper
advertisements, outside advertisement and Internet. (

In tea advertising both the product and the emotional perception are important.
We emphasize ‘serenity in a hectic world’, or in other words ‘enjoy a moment of
rest in a busy surrounding'.

Market Positioning

For local market information go to the local websites of Pickwick (

In Short

Pickwick strives for a broad tea assortment that distinguishes tea from other
drinks. The assortment is adapted regularly, for instance packaging gets modified
and new or improved blends are added, sometimes replacing other blends. With
ongoing product studies we try to maintain Pickwick’s market position and that of
the total tea market.


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