Download - Tapal vs lipton
Presentation Plan
Introduction• Tapal• Lipton
Marketing Strategies• Segmentation• Distribution• Promotional• SWOT
Market Share• Product Life
Cycle Stage
• Conclusion
Started operati ons in 1947Mr. Adam Ali Tapal was the founderBecome largest 100% Pakistani companyFirst tea company to be awarded ISO 9001 certi fi cati on in Pakistan.Located in Korangi Industrial Area , Karachi
In 1893, Sir Thomas Lipton established a tea packing company, Thomas J Lipton Co.
Its headquarters are in Scotland, New Jersey. Factory in Hoboken.
It was launched in 1948 in PakistanQuality and reliability are main two things for Lipton.
Acquired by Unilever in 1972.
Target consumers for Tea
First groupThe employees, students
and other consumers who are busy in their
daily routine life.
Second groupThe other group is health
conscious consumers, those who want to make themselves physically fit
and healthy
Segmentation for Tapal• Tapal did very accurate segmentation in the
tea. Their main objective to focus on the upcoming and present capabilities of requirements in tea sector. Tapal was first to introduce the soft packing.
Segmentation for Lipton• Lipton has a number of products launched in
the country and worldwide. In Pakistan, there are only those brands are present which are proved to be financially beneficial to the company.
Channels of Distribution For Tapal
It has 5 main warehouses in Pakistan which are located in:• KARACHI• HYDERABAD• SUKHUR• MULTAN• Lahore
Tapal has a wide distribution network of 410 distributors across Pakistan. Tapal has a
wider distribution coverage in the South.
14%
34%
18%
22%
12%
Coverage
Karachi Lahore Islamabad Sukkur Hyderabad
Universities, offices, homes or people from any other working place gets the brand at their own location.
Then from those whole-sellers, retailers get the Lipton brand.
From manufacturer is send to the whole-sellers through different channels.
Unilever has channelized its brand Lipton in such a way that it is having one of the strongest distribution in the country.
Distribution for Lipton
Promotional strategies
Internet (online ads and promotions)
Free Sampling (sampling of new flavors)
Sponsorships (to be sponsors in sports tournaments and other activities)
ATL & BTL VANS (special flexes printed vans etc.)
Wobblers (free side gifts e.g.: key rings, mugs, clocks etc.)
Strength• First to introduce soft
pack in the country,• The pioneers of
introducing Jasmine Green Tea in Pakistan
• Strong R&D team• Good distribution
channels• Loyal customers
Weakness• Weak management for
maintaining its product standard
• Not strong enough to support exports.
• Have to import some of their products from other countries, which increase their costs.
Tapal
Opportunity• The markets in Punjab,
KPK and Baluchistan, which are still to be explored
• To develop more strategies on supply chain
Threats Strong marketing
campaigns of competitors
High import duties encourage smugglers of tea to grow.
Continuation
• Strong Ethical value (culture and heritage)
• Strong company image• Quality & variety• Rich taste and flavor• Experienced and
quality management
Weakness• Relatively higher prices• Lesser varieties of tea
in the country
Strength
Lipton
Continuation
Competing tea brands. Preference for people
having coffee or other beverages.
Strong competition in rural and urban areas.
High inflation in the country can negatively affect the brand.
Threats Competing tea brands. Preference for people
having coffee or other beverages.
Strong competition in rural and urban areas.
High inflation in the country can negatively affect the brand.
Opportunity
Product Life Cycle stage for Tapal
P r o d u c t s s t r a t e g y I m p r o v i n g a n d u p g r a d i n g t h e p r o d u c t b y i n t r o d u c i n g n e w v a r i e ti e s
P r i c i n g S t r a t e g y C u r r e n t l y d e c r e a s i n g t h e p r i c e s t o h a v e m o r e a n d m o r e s a l e o f p r o d u c t s i n t h e c o m p e ti ti v e m a r k e t
D i s t r i b u ti o n S t r a t e g y
To d i s t r i b u t e t h e p r o d u c t s t h r o u g h m o r e c h a n n e l s b y h a v i n g l o w p r o fi t m a r g i n s .
P r o m o ti o n s t r a t e g y
To c r e a t e t h e a w a r e n e s s o f u p c o m i n g p r o d u c t s . T h e c o m p a n y h a s i t s g o o d i m a g e o n a d v e r ti s i n g . T h e c o m p a n y u s e s “ P r o d u c t A w a r e n e s s P r o m o ti o n a l S t r a t e g y ”
Tapal is on Growth stage so this company would follow the following strategies.
Product Life Cycle stage for Lipton
Products strategy Launched the maximum products of the targeted market.
Pricing Strategy Using the defensive pricing strategy to maintain its current image worldwide.
Distribution Strategy Distribution to the maximum channel members in order to sustain and not losing its market.
Promotion strategy To maintain the loyal consumers is the priority in this stage. The company uses “Product recall” strategy to remind about their current products
Lipton stands at Maturity stage so it follows the following strategies.
43%
41%
6%4%
6%
SalesMarket Shares in Pakistan
UnileverTapalVitalTetleyOthers
CONCLUSION• Lipton has developed image due to its past history. • It has been working in true sense of generati ng profi ts and earning
customers’ feedback. • There are many factors which are to be considered in the success
story of Lipton. Like their brand loyalty, their taste, label of the brand etc.
• Tapal has innovated their products in Pakistan.• The company has comparati vely bett er pricing strategy in the
competi ti ve market which shows the signifi cance of the brand. • The company has been looking for something new and diff erent for
the country in order to make value. On the other side, the company is now moving towards its neighbor countries and is now looking toward new target market in diff erent countries.