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.
Goldleaf’s image as a traditional British tea is being damaged by more
exotically marketed Chinese, Indian and herbal teas.
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.
– 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 to a meeting between three of Goldleaf’s marketing team, and answer the
Which possible solutions (1-7) were
1. Advertising 2. Price 3. A new product 4. Multiple brands 5. Supermarket own label 6. Repositioning 7. Stretching the brand
Listen again and complete the notes.
• Jane’s three examples of areas to which the brand
could be stretched:
• Bob disagrees with re-labelling the brand
because he thinks that Goldleaf could not cover their
• 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
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 .