Determination of the Optimal Marketing Strategy for Iced Tea Beverages Product Using Mixed Strategy Game Theory

Abstract

In Indonesia, iced tea is a popular drink enjoyed by people of all ages. This has led to the emergence of various brands and flavors of iced tea beverages. The growing number of these businesses makes competition fiercer and forces businesspeople to develop marketing strategies.

 The goal of this study is to determine the optimal marketing strategy for two brands of iced tea. The marketing strategies for these brands include product quality, price, service, promotion, packaging, and location. Mixed strategy game theory is used to determine the optimal marketing strategy.

 Based on the results of the competitive analysis using game theory, the optimal strategy for Brand A is price, promotion, and location.  Brand A's probability values are 0.5 for price, 0.333 for promotion, and 0.167 for location. The optimal strategy for Brand B includes promotion and location.  The probability values for promotion and location are 0.667 and 0.333, respectively. The game value is 5.67.