SWOT analysis of Lipton – Lipton SWOT analysis: The origins of Lipton® Iced Tea lie with our very own Sir Thomas Lipton. After opening his first grocery stores in Glasgow in 1871, where he sold tea to his customers, he saw the potential in this deliciously aromatic beverage and bought several tea fields in Ceylon (now Sri Lanka). Lipton is now a brand belonging to the colossal British-Dutch multinational Unilever. Its tea is sold in more than 150 countries.
Available in over 110 countries, Lipton is particularly popular in Europe, North America, Africa, and the Middle East, parts of Asia and Australasia (Australia and New Zealand) as well as Latin America, and the Caribbean.
Lipton fun facts: One pound of tea will make 181 cups of tea. Lipton Black Tea pack its loose leaf tea in half pound boxes, which gives you 90 cups per box!
About Lipton – SWOT analysis of Lipton
Company: Hindustan Unilever
CEO: Ramon Laguarta
Founder: Caleb Bradham
Year founded: 1890
Headquarters: Greater New York Area, East Coast, Northeastern US
Annual Revenue: US$227 million
Profit | Net income: US$12 million
Number of employees: 16,000
Products & Services: Grocery & Gourmet Foods | Coffee, Tea & Beverages | Tea | Black Tea | Chai | Fruit & Herbal Tea | Green Tea | Ice Tea
Competitors: AriZona Beverages | ITO EN | Mother Parkers | Peet’s Coffee | DavidsTea | Associated British Foods | Farmer Brothers | Pepsi
SWOT analysis of Lipton – Lipton SWOT analysis
SWOT Analysis Of Lipton is brand-based. SWOT Analysis of Lipton evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Lipton’s SWOT Analysis. Below is the detailed SWOT Analysis of Lipton.
Let’s talk about Lipton’s SWOT assessment.
Strengths of Lipton – Lipton SWOT analysis
Most well-known tea brands Lipton is among the most well-known tea brands: Lipton is among the most popular tea brands around the world. It’s unique in the range of teas it offers and has also experimented with different varieties, many of which have proven to be successful.
Green tea is a popular rate of adoption: Due to health awareness and the advantages of green tea getting promoted extensively, green tea has an outstanding rate of acceptance across the world. Additionally, Lipton is one of the most popular brands of green tea. This change in mindset is a benefit to Lipton Green tea.
Incredible distribution Fantastic distribution: Lipton has amazing coverage all over Europe, the US, parts of Asia, North America, Africa, and the middle east. Lipton is available in over 150 countries, and growing every year.
Iced tea made in partnership with Pepsico company: Lipton is well-known in the world of iced tea, which is the first ready-to-drink tea that is packaged and sold as cold drinks. Since it’s an herbal tea and not a carbonated drink the perceived disadvantages are much less, and it only takes a tiny percentage of the market of carbonated drinks in exchange for an indirect threat.
Loved taste: Lipton offers a variety of brands. The Lipton blue label is adored across the world. Similar to its iced tea, green tea is popular and the flavor is loved all over the world.
Good Marketing: Lipton always participates ineffective marketing campaigns that focus on the freshness of taking a cup of tea. Since it is part of the company Unilever, Lipton has the appropriate advertising agencies that support its advertising communications of the Lipton brand.
Weaknesses of Lipton – SWOT Analysis Of Lipton
Low market share in high tea-drinking countries The world’s top tea-drinking countries: As you can see from the graph that follows, China, India, and Japan are the three top tea-drinking nations in the world. In all these three countries, Lipton does not have the largest market share, but it has a substantial percentage of market share in the three countries.
Substitutes: Green tea comes with its substitutes, which are soups made at home or other healthy beverages. The same is true for regular tea, which is the most popular alternative – milk or coffee. If Lipton tea is not available It can be substituted by something else.
Opportunities of Lipton – Lipton SWOT analysis
The focus should be on tea drinking Countries: A more focused approach with the right marketing campaigns in the top three countries that drink tea will greatly benefit the brand. So, in addition to the countries, it’s already operating in Lipton should focus on China, India, and Japan.
Explore Coffee: Why not grab some of its market shares. The most powerful indirect competitor to Lipton is Nescafe which is well-known for its quality of coffee. Lipton is, therefore, able to enter the coffee sector as well and test the level of market acceptance it receives for its brand.
Rural penetration: The higher the number of rural areas increases the sales for the brand. Countries such as China and India have large rural areas that need to be conquered by the brand to reach huge quantities.
Threats of Lipton – SWOT analysis of Lipton
Competition: Competition Indirect or direct competitions are both threats to Lipton. direct competition is through Society tea or other herbal teas, which are popular with tea drinkers. Direct competition is through beverages, coffee, and various hot and cold drinks.
Government regulations regarding export and import: Tea is a special environmental condition for production and agriculture. The changing regulations of the government can impact the production of tea or affect the export and import of teas from one country to the next. This poses a risk for a brand such as Lipton.
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Overview Template of Lipton SWOT analysis
Lipton Tea has been there in the industry for more than 100 years. Hence, giving recommendations to the company will not be much acceptable. But still, there are some problems which I think are there in the company and its operational activities and will be recommended in this section:
The company has a very good format of the production system, but still, the site map of the company is not satisfactory. Being there in the industry for the last 100 years or more the company has not gained as much as it could have been expected. The company should open up more plants in several other areas between tropic of cancer and tropic of Capricorn and start doing the production. This is important because Lipton Tea is huge and it has a lot to grow in the future
Another recommendation could be that as quality certification of the company has been done in the year 2000, hence the company should again give a quality check to maintain the quality standard in the production and other activities.
This is the SWOT analysis of Lipton. Please let us know if you have additional suggestions to add.
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