How to optimize Lipton’s business model in order to stimulate tea consumption in Portugal and increase Lipton Leaf tea market share?: The importance of distribution and sales channels management in a B2B2C market

Field Lab Entrepreneurial Innovative Ventures

Tea is globally one of the most popular beverages, next only to water (Hicks 2008). Lipton, the world’s leading tea brand (IDH 2012), is unable to keep growing in Portugal due to the lack of tea consumption; hence, the path to success for Lipton is now making the category grow. But how can Lipton’s business model be optimized in order to stimulate tea consumption and increase its market share? After a survey conducted to 300 people and interviews made to retailers, it was possible to conclude that tea drinking is not grounded in the Portuguese culture. However, consumers are increasingly valuing taste and diversity and willing to drink tea in more occasions, especially due to the growing concerns about health, aligned with the fact that tea is being more and more associated with well-being, thanks to the emergent studies grounding its benefits.1 Hence, Lipton is able of catalyzing tea consumption in Portugal: collaborative supply chain integration with retailers and higher expenditures with marketing can create awareness for Lipton tea and help in educating customers.

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