PG Tips began in 1869 when Arthur Brooke opened his first tea shop in Manchester, England. In the 1930s, Brooke launched his brand under the name 'Pre-Gest-Tea' and later abbreviated it to PG. In the 1950s, PG Tips aired its first TV advertisement. In the 1960s, it introduced tea bags which became more popular than loose-leaf tea. In 1996, PG Tips launched its patented pyramid tea bag which gave the leaves more room to move. While traditional tea sales have fallen 6% in recent years, PG Tips has strengths like its pyramid bags and involvement in sustainability initiatives, but also faces threats from increased competition and changing consumer preferences.
2. 1869 - The First Cuppa
Arthur Brooke opened his first shop in Manchester – its success lay in his sale of reliably tasty tea blends.
1930s - Launch
Arthur Brooke launched his brand in the UK under the name ‘Pre-Gest-Tea’, suggesting that if you drank it before
eating, it would aid digestion... this was later disallowed, and grocers began to abbreviate to PG.
Later, Brooke added ‘Tips’ to highlight the fact that PG tips only uses the top two leaves and bud of each plant.
1950s - TV Debut
In 1956, they broadcast their first TV ad. It was in glorious black-and-white, obviously!
In 1953, rivals Tetley invented the tea bag.
1960s - Tea Bag
PG tips introduced their first tea bag. Bags began to far outsell loose-leaf tea.
1996 - THE Bag
PG Tips launched their patented pyramid® tea bag, with more room inside acting like a miniature teapot, it
gave/gives the leaves more room to move.
Brief History
3. 2004
PG tips’ launched their first ‘caffeine-free’ (less than 0.2% caffeine) variety; PG Tips Decaf
2005 - 75th birthday
To celebrate, they produced a hand-crafted diamond tea bag worth £7,000.
2006 - Monkey.
The woollen face of PG Tips was born with help from Johnny Vegas
2011 – “Special Moments” Range
“PG tips knows how much consumers love their normal cup of tea but there are moments when they wants something a little
more special, a twist to their everyday cuppa.” “...find the perfect tea whatever the mood or occasion.” “The range is made by
4 variants: The Fresh One, The Strong One, The Evening One and The Hint of Earl Grey One.” (Unilever’s website)
4. PG Tips’s Problems
Increased competition causing a decline
in market share (Twinings, Tetley,
Yorkshire Tea)
Change in consumer behaviour (Healthy
living, food/drink niches)
Not investing enough in profitable
speciality teas
Failing to reach younger audiences due
to tired, plain image
5. Sales of traditional tea have fallen by
£50m in the last 5 years in the UK
That’s a total 6% decrease, and has
affected all British tea manufacturers
The Tea Industry’s Problem
6. Patented pyramid tea bag
Involvement in Tea 2030 Initiative
Perception of British Heritage
PG Tips’ Nespresso Coffee Machine
compatible tea-pods
Strengths
7. Not the oldest tea manufacturer in
UK, as perceived
Low sales in speciality teas
Packaging
No physical stores for people to visit
Weaknesses
8. Profitable speciality teas
Target healthy-living markets/audiences
Interesting and different ways to
consume tea
Tea as a gift
Caffeine-fix - Coffee substitute
Opportunities
9. 6% decline in traditional tea sales -
PG Tips’ most profitable product
Twinings are set to overtake PG
Tips by the end of 2016 as the UK’s
no.1 tea retailer
Threats
10. Political Economical Social Technological Legal Environmental
Unilever
partnered with
NGO’s
In 2014 PG Tips
reduced the
weight of tea in
each bag, but
did not alter the
price
accordingly
Price of
production
increasing as
developing tea-
producing
nations are
investing in
more profitable
exports
“Coffee-culture” It’s easier to
shop around,
compare prices,
read reviews
and discover
new products
PG Tips
Nespresso
Coffee Machine
capsules
Patented
pyramid tea
bags
Global tea-
shortage due by
2025
PG Tips aim to
reduce negative
effects on the
environment by
50%
12. “Tesco Finest’s packaging looks way more
inviting and special... I’d wouldn’t be
disappointed receiving one of these as a gift”
“Seeing as there’s only 10p difference in price I’d
definitely go for Tesco Finest over PG Tips, purely
based on the packaging”
13. The most popular brand
is still PG Tips
Twinings are in close second
..but no longer by a large
majority anymore
“What is your favourite brand
of tea?”
Increased competition means
customers have more to choose
from, affecting PG Tips’ market
share
14. “What is your favourite type
of tea?”
The most popular type of tea
is still traditional black tea
(English Breakfast)
Green tea (the UK sales of which
have risen by 50% over the past 5
years) is the second most popular
amongst those questioned
Earl Grey, despite being
more expensive than
other teas, is the 3rd most
popular
Herbal teas are a close 4th
15. As expected, people on
large prefer their tea in the
morning
“Where do you commonly
drink tea?”
“What time of day
commonly drink tea?”
However, 53% of people drink
tea throughout the day, almost
10% of whom usually do after
9pm!
16. No outstanding influence in
the brand of tea people
choose
“What influences your decision when
choosing a brand of tea?”
Having low prices, an association with Fair
Trade, and attractive packaging are the
things people consider most important when
they choose which brand to buy
Interestingly, 17% of people
prefer to buy premium brands
despite the extra cost
17. “Why tea over another
drink?”
The temperature of tea being the greatest
reason for choosing to have a cuppa
suggests that tea provides a service to
people; its function is to warm you
37.7% of people drink tea
because they’ve been brought
up drinking it - suggesting it
has become a household
feature
People are consciously
choosing tea as a healthy
option/alternative
20. Insights
People want to feel healthy; but don’t want to change their daily
routines. Minimum Effort > Health
Food/drink is no longer consumed for nourishment, rather for how it
makes you feel when you consume/buy it
People want to be entertained by food and drink; they want to
experience food, not just eat it
People actively want food/drink to alter their emotions/mood
21. Past/Current Campaign
Approaches ETHOS
Introducing involvement
from celebrities
LOGOS
Applying logical thinking and
fact based research
PATHOS
Forming emotional connections
between the audience and the
subjects/storylines
22. Possible Creative Directions
Aim: To make tea more readily accessible to more people
on the go
❖ Tea Shops (to rival coffee shops such as Costa and Starbucks) to introduce the
public to all of PG Tips’ types/flavours of tea and to sell products/merchandise
❖ Pop-Up/Mobile PG Tips Stores
❖ PG Tips Recipes - new ways to consume tea
❖ “Get HealthTea” Healthy-Living Campaign
❖ Anti-Coffee Campaign
