On a scorching summer day, nothing is more refreshing than a nice, cold cup of iced tea. But what about in the winter time? How can a company that sells such summer treats like Nestea also boost sales during the colder months and gain an edge on competing companies such as Lipton, the leader in the industry? Nestea was competing for market share with Lipton, the leader in iced tea production. The usual approach of using market trends to develop new products was not generating enough revenue or inspiration to overtake Lipton; they needed a more creative innovation. Because of the Non-Compete Restrictions of Nestea’s® parent company, Beverage Partners Worldwide (BPW), the joint venture between Coca-Cola and Nestle, Nestea® had to innovate while steering clear of the soft drink & hot beverage markets. Rainer Schmidt, the Marketing Director for Tea, approached SIT to find new innovative ways of generating new product ideas. Applying SIT’s attribute dependency tool, which creates and dissolves dependencies between variables of a product, SIT was able to help Nestea reevaluate the relationship between changing seasons and beverages offered. Nestea’s® team challenged the expectation that iced tea is only for the summer and launched a line of iced tea for the winter. The team applied their existing strength in flavor innovation to ensure the development of a product that could accompany consumers’ winter drinking habits–a tea that can be consumed at room temperature or heated. Here, even though the product was not completely altered per say (after all, tea is still tea), the fixed idea of bottled tea only being served cold was shattered and replaced with a dynamic, interesting alternative that created a whole new “ready-to-drink tea” product line. 1. Nestea’s usual approach of using market trends to develop new products was not generating enough revenue, how can the company apply value-adding to developing it's product? 2. In what way will the company save tax through promotion aside from using advertisements as a means to entice the customers in buying their product
On a scorching summer day, nothing is more refreshing than a nice, cold cup of iced tea. But
what about in the winter time? How can a company that sells such summer treats like Nestea
also boost sales during the colder months and gain an edge on competing companies such
as Lipton, the leader in the industry?
Nestea was competing for market share with Lipton, the leader in iced tea production. The
usual approach of using market trends to develop new products was not generating enough
revenue or inspiration to overtake Lipton; they needed a more creative innovation. Because of
the Non-Compete Restrictions of Nestea’s® parent company, Beverage Partners Worldwide
(BPW), the joint venture between Coca-Cola and Nestle, Nestea® had to innovate while
steering clear of the soft drink & hot beverage markets. Rainer Schmidt, the Marketing Director
for Tea, approached SIT to find new innovative ways of generating new product ideas.
Applying SIT’s attribute dependency tool, which creates and dissolves dependencies between
variables of a product, SIT was able to help Nestea reevaluate the relationship between
changing seasons and beverages offered. Nestea’s® team challenged the expectation that iced
tea is only for the summer and launched a line of iced tea for the winter. The team applied their
existing strength in flavor innovation to ensure the development of a product that could
accompany consumers’ winter drinking habits–a tea that can be consumed at room temperature
or heated. Here, even though the product was not completely altered per say (after all, tea is still
tea), the fixed idea of bottled tea only being served cold was shattered and replaced with a
dynamic, interesting alternative that created a whole new “ready-to-drink tea” product line.
1. Nestea’s usual approach of using market trends to develop new products was not
generating enough revenue, how can the company apply value-adding to developing it's
product?
2. In what way will the company save tax through promotion aside from using
advertisements as a means to entice the customers in buying their product
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