Marketing - Lipton vs American Express

In: Business and Management

Submitted By ttlu1
Words 2167
Pages 9
Introduction It is crucial for a contemporary organization to have a marketing department that understands their crucial role in being able to market their product successfully and therefore profitably. The two major organizations discussed will be Lipton and American Express. Here, there will be a discussion of the two contrasting products; a 500ml bottle of Lipton Peach Ice tea and an American Express Platinum Credit Card. These two products will be compared and contrasted to one another in terms of product description, classification and segmentation. Product Description When a marketer sells a product, they must take into consideration the three levels of a product; the core, the actual and augmented. Kotler et al. (2007) describes the ‘core product’ as core benefits which act as problem solving services that consumers are buying when they attain a product. The ‘actual product’ is a combination of the product’s features, styling, quality, branding and packaging. And lastly, the augmented product is the additional consumer services and benefits which are included to increase competitiveness. With Lipton Peach Ice Tea, the core product is that it is a drink; a benefit to quench thirst. It also has a core benefit of social acceptance, as there may be a perception that those who drink Lipton Peach Ice Tea are ‘cool’. Also, the ice tea is convenient as it is easily bought and managed. The actual product features of the Lipton Peach Ice Tea are that it is a refreshing drink and it is also perceived to be healthy. It is also stylish as it is packaged in a plastic or glass bottle with a yellow label sticker, making it look appealing. This packaging also means that the product can be sealed and consumed later. The branding of the Peach Ice Tea is Lipton and with this entails an expectation of good quality as this brand is well known. Lastly, the…...

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