ANALYSIS: BRAND SPEND ANALYSIS - Brand leader Tetley hopes its local radio drive will keep Britons drinking tea

Although research shows Britain to be a nation of coffee rather than tea drinkers, the UK hot beverage sector is still worth almost pounds 1.5 billion. Within the pounds 586 million tea sector, Tetley is a major player.

Although research shows Britain to be a nation of coffee rather

than tea drinkers, the UK hot beverage sector is still worth almost

pounds 1.5 billion. Within the pounds 586 million tea sector, Tetley is

a major player.



Created in July 1995 from a buy-out of Lyons, Tetley Group is the

world’s second-biggest teabag company. It is the brand leader in the UK

and Canada and is developing its presence in the US, Australia and

Eastern Europe.



Tetley has a history of product innovation. It produced the first

teabags - and introduced round and drawstring versions - and has

developed instant and decaffeinated varieties. Last year Tetley Group

made a pounds 25 million profit on a turnover of pounds 323 million.



Agencies Tetley uses Zenith Media for buying and MediaVest for

planning.



Reports suggest Tetley’s marketing director Nigel Holland plans to

consolidate the media buying and planning accounts into MediaVest. The

creative agency is D’Arcy.



Total spend and the media mix Tetley spent pounds 7.3 million on

advertising in the year to February 2000, mostly on television (83 per

cent of spend). The current campaign shows the Tetley tea folk rejecting

sex, eternal youth and a drink of water in the desert in favour of a

brew.



Although only pounds 190,639 was spent on radio in the past year, Tetley

has just announced its first major local radio sponsorship deal (worth

pounds 250,000).



The move coincides with a national promotion giving consumers the chance

to collect tokens in exchange for sports equipment for schools. Outdoor

is another important medium for Tetley, accounting for 13.2 per cent of

spend, but there is negligible use of press and no use of direct

mail.



Spend details Almost a quarter of the annual spend took place in July

1999 and another 37 per cent in October and November. Radio and outdoor

advertising were concentrated in June and July, and press advertising

appeared in July and from January 2000 onwards. Tetley advertised on 104

TV channels, with the 55 Astra channels accounting for just over 4 per

cent of spend. The three most popular channels were Granada, Carlton and

Central.



Opinion Lynn Ashman, client services director of direct marketing agency

Tullo Marshall Warren, says: ’While some of Tetley’s competitors are

experimenting with relationship marketing, Tetley is building a

community based strategy with the use of local radio and school

promotions. The Tetley tea folk will lend themselves well to this

approach and this strategy should bring Tetley ever closer to its

customers.’



Conclusions Tetley Group was recently sold for pounds 271 million to the

Indian company Tate Tea. However, this acquisition is unlikely to affect

Tetley’s brand position or ad strategy in the UK, where the real battle

will be to defend tea’s 41 per cent market share against both coffee (51

per cent) and the fast-growing chocolate and malted drinks sector.





Research by AC Nielsen MMS tel: 01344-627553 www.mediamonitoring.com.



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