To What Extent Do You Agree with Tetley’s Strategy of Setting Up Teapigs?

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In a sense I believe that it is good, since due to the customers not being aware that tea pigs is owned by Tetley’s, it means that customers will not judge the company based on its subsidiary, but rather the new product itself, therefore this will have a impact on the business as a completely different target market will be attracted to tea pigs, therefore causing less interference between the two companies. However although without having mention of Teapigs it can enable to have a brand new target market and appeal which wont interfere, if customers do find out that they are a subsidiary of Tetley’s customers feel mislead, if the two companies are spreading different aims, therefore this could cause a decrease in customers, since many people don’t like the feeling of being mislead or cheated on which could be the case here. On the other hand though, it is highly beneficial to be a subsidiary since they will reserve massive help from Tetley’s since they have been known for their experience in the tea field, therefore this added expertise and money, would significantly help a starting business. Furthermore the fact Tetley’s doesn’t interfere could be a positive, as it will allow the company to make its name for itself. This will impact the company, as they will manage to still have a unique image, without interference from the other subsidiary. Therefore to conclude, although some customers may feel cheated on or annoyed that they were not informed of Teapigs being a subsidiary of Tetley’s, which was also similarly seen with companies like Starbucks. It is highly beneficial for the business as they will be able have help from other experienced businesses in the sector, without them being directly affected by the larger subsidiary thus still allowing them to be an independent
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