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Goldleaf is a brand of tea owned by Elite Foods, based in Liverpool, England. It is promoted as a high quality tea aimed at the top end of the consumer market. It is priced higher than any other brand of tea and is available loose and in tea bags.

Goldleaf’s market share has fallen by 30% during the last three years.

Price - Supermarket competition
The main UK supermarket chains (Sainsburys, Tesco etc.) have been producing their own label at a much lower price.

Brand image
Goldleaf’s image as a traditional British tea is being damaged by more exotically marketed Chinese, Indian and herbal teas.

Brand Loyalty
Consumers are not as loyal to certain brands as they have been in the past, and are buying cheaper teas and changing brands more often.
Similar British tea brands selling at a lower price have also reduced Goldleaf’s market share.

Look at some possible solutions to Goldleaf's difficulties.

1. Advertising – Launch a new advertising campaign with a new marketing strategy. (What kind of campaign?)
2. Price – reduce the product price to bring it in line with similar brands and make it more competitive (how much?)
3. A new product – Introduce a new product into the market using the Goldleaf brand name. (Which product?)
4. Multiple brands – reduce the price and sell the product under different brand names.
5. Supermarket own label – sell Goldleaf to supermarket chains and allow them to put their own label on the product.
6. Repositioning – change the product image and sell to a different market segment. (Which segment? What changes to taste, quality, logo, packaging, product name etc.?)
7. Stretching the brand – Give permission for other companies to use the Goldleaf brand on their products and charge a licensing fee. (What kind of companies?)

Listen Listen to a meeting between three of Goldleaf’s marketing team, and answer the following questions.

Which possible solutions (1-7) were discussed?

1. Advertising
2. Price
3. A new product
4. Multiple brands
5. Supermarket own label
6. Repositioning
7. Stretching the brand

Listen Listen again and complete the notes.

• Jane’s three examples of areas to which the brand could be stretched:

1. manufacturers
2. refiners
3. and producers

• Bob disagrees with re-labelling the brand because he thinks that Goldleaf could not cover their and costs.

• Jane says that the minimum price per kilo is pence. This would give Goldleaf a % overall . Goldleaf would also save money on the product.

• Bob’s advertising campaign proposal is based on and .



Listen Listen again and follow the transcription.

Now read the following memo written for Goldleaf's managing director, Chris Simmons. Complete the gaps with a suitable word from the following list. Follow the example.

label  /  campaign  /  manufacturers  /  options
attend  /  action  /  fee  /  market  /  launching

To: Chris Simmons

From: Keith Williams

Date: 12 March

Subject: Marketing Department Meeting

After discussing various for a marketing plan to improve our current position, we agreed on the following course of .

1) Meeting with Rose and Bloom advertising agency on Wednesday 17th March to discuss the possibility of a new advertising to improve sales.
2) Further research into the possibility of marketing Goldleaf under a supermarket . Jane to contact Sainsburys, Tesco and Safeway.
3) Jane and Bob to explore the possibility of stretching our brand and charging a licence to other .
4) Keith to look into introducing new products into the under the Goldleaf brand name.

We agreed to meet again on Friday 19th to discuss Rose and Bloom’s presentation and to finalise a strategy. Please let me know if you are able to .


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