final report tea industry

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2016

TEA INDUSTRY IN PAKISTANSubmitted To: SIR NAVAID ALI KHANSubmitted By: Prithvi Raj Soni

Date: 15-12-2016

INSTITUTE OF BUSINESS MANAGEMENT

Table of ContentsTEA INDUSTRY IN PAKISTAN4TAPAL (THE LEADER)5LIPTON (THE CHALLENGER)6VITAL (THE FOLLOWER)9Tetley (THE NICHE)12

TEA INDUSTRY IN PAKISTAN

The history of tea drinking in the subcontinent can be traced far back. It is said, that tea was introduced with the arrival of the British in the Subcontinent and became popular in the region during the British rule. The British people were clever enough to use a powerful slogan, which remained in the minds of the people. They said, "In winters it provides warmth and in summers, it gives freshness."At present there are two kinds of tea available in the market: branded and unbranded (loose) tea, the ratio is (55:45) respectively. Therefore, the importers are also of two types, though both import tea from the same countries. Bulk importers sell tea to retailers in loose form, while the second category of bulk importers sell packaged tea under brand names.

TAPAL (THE LEADER)Tapal tea is successfully running business since 1980s and has managed to embed its roots deep into the tea industry of Pakistan. The essence of its success is based on its core values which are Trust, Quality, Creativity, Innovation, Leadership and Unity. Tapal tea is a brand which is family oriented and which believes in creating a strong family bond over a cup of tea. Its success on social media can be gauged by the fact that it has the highest following of 11,000 fans on Twitter and the fastest growing fan following of 700,000 on Facebook. Our aim is to make the brand reachable to our target audience by creating a vast product portfolio and stock keeping units. These come in the form of Tapal Tezdum, Tapal Daanedar, Family Mixture, Tapal Green Tea and 3-in-1 ready to drink sachets. Tea industry in Pakistan has a number of firms which are working hard to secure the largest market share. Therefore, Tapal faces neck to neck competition with Lipton at all times and work hard to secure its market share by implementing various marketing strategies. These include the following:a) Keeping tabs on the competitor:It is impertinent to keep a close look on the competitor and stay aware of their advancements. Hence, Tapal plays the role of being proactive firm which responds to all the activities of Lipton on time. b) Television Commercials: Brand reinforcement is at the core of Tapals marketing. This strategy does not ensure a large increase in the consumer body but it does create brand reinforcement and customer loyalty. c) Product Shelfing:The product must have clear visibility in all the super markets so that it is approachable by the customers. It must be kept up front in the store. d) Stock Keeping Units: Tapal ensures that it becomes affordable for all type of consumers. Therefore, it is available in various SKUs which range from Rs.5 Sachet to 500g packet and also 3-in-1 ready to drink tea.e) Complementary Goods:We always work towards creating customer delight. In this quest we provide complementary goods with tea such as our customized mug. We are also planning on increasing the number of these goods and collaborating with other biscuits brands.f) Vertical Integration Forward: It is important to take steps to further promote our product by presenting it directly to the consumers. This can be done by creating Tapal theme Chai caf across Pakistan. g) Brand Activation: Promote tapal in universities, parks, shopping malls, ramzan/eid transmissions etc.h) Hotel/Restaurant Endorsement Program: Tea has a wide customer base which includes C2C and also B2B market. Therefore we can collaborate with different restaurants and hotels and urge them to provide our tea only. i) Corporate Social Responsibility: It is important to give back to this community in which we live and contribute in a positive manner. This can be done effectively if this is collaborated with the efforts of marketing. According to the new rule of the high court of Sindh, street boards are banned from installing. Therefore, we can locate areas across the city which are a little gloomy and light up the entire area by installing customised Tapal packaged light bulbs across the street. This will not just light up the entire area but will also contribute towards marketing by creating a positive word of mouth.

LIPTON (THE CHALLENGER)History of Lipton:Lipton was created at the end of the19th century by Sir Thomas Lipton in Glasgow, Scotland. SLOGAN: "DIRECT FROM THE TEA GARDENS TOTHE TEA POTVISION: Lipton vision is to available within an arms reach of every individual desire.Lipton in Pakistan: Lipton was launched in Pakistan in 1948 and is one of the oldest brands in the country.Liptons Portfolio in Pakistan:a) Lipton Yellow Label Tea b) Lipton Mega Daane c) Lipton Teabags d) Lipton Green Tea e) Lipton Flavored Tea Lipton is one of the world's great refreshment brands, making a big splash in the beverages market with tea-based drinks including ready-to-drink tea and other healthy, refreshing alternatives to soft drinks. Lipton stands for brightness, vitality and fun with natural goodness.a) Yellow Label is probably the worlds most famous tea. b) Its the worlds best-selling tea brand, has been established for more than 100 yearsc) Lipton plays the role of an energetic brand that aims to redefine the meaning of tea in peoples lives.d) Lipton tea provides great taste, aroma, flavor and color.

Target Market of Lipton:Commercially they target the urban areas of Pakistan who come in the category of average middle class or above. POSITIONING: Initially the single idea behind Lipton isLight premium priced tea with best qualityLater, they re-positioned itself specifically addressed local customers by old melody Chai chahye. Kaun sy janabLipton he to hay hmm lajawabThen they positioned its tea. The tea which Clear The MindRe- PositioningAfter that in 2009, a new campaign was launched which communicated that;SIP OF INSPIRATIONNow the brand has transitioned towards a simpler message DRINK POSITIVECompetitors in Pakistan:a) Tapal Danedarb) Tatleyc) Vital TeaDistribution ChannelManufacturers Wholesalers Retailers ConsumersPromotional Tools:The Liptondoes it promotion in following ways:a) Advertisementb) Personnel sellingc) Sales PromotionsSALES PROMOTIONLipton, the worlds leading tea brand, launched three month long Dip & Win consumer promotion campaignMARKETINGCHANNELSa) Newspaperb) Magazinesc) Bill boardsd) Special promotions or packagese) Internet marketingf) Bus brandingg) SponsorshipAssociating With Music and MusicianIn ads they bring singers like Nazia Hassan and Zohaib Hassan, Meesha Shafi, Arif Lohar and Ali Zafar. Recommendation:As Lipton is the oldest and famous tea brand in Pakistan they should fuscous on how to sustain and grasp more market share because many new entrants are entering in marketSpecially, Tapal tea is grasping more market share by introducing new products and different appeal.

VITAL (THE FOLLOWER)The Vital Group started its operations in 1991 with the launch of VITAL TEA which has now become the choice of every third person who drinks tea in Pakistan. With its passion to serve and due to the high demand from its customers and buyers, VITAL GROUP has now launched other personal care items, such as VITAL BEAUTY SOAP.Vital Tea is VITAL GROUPs very first product which was launched in a small town of Punjab, Haroonabad. Within a very short span of time, we started selling it across the country and to a larger market outside Pakistan also. Vital Teas export started since 2005. The tea is now available in different flavors.Vital Tea leafs are hand-picked in the mountains of Kenya. To capture the aroma of the tea, these leafs are, then, processed on the same day and shipped to our facility in Pakistan. Our Master Chef blends the mixture for a rich color and taste that touches the hearts through taste buds. Every cup of Vital Tea provides a hot and refreshing blend of perfect aroma, color, and taste that serves your taste buds well.Try once and you will agree with our description!Due to high demand of our customers, green tea product will also be available in the local and global market.Although it is a successful company and generating reasonable revenue but it is needed to come forward in front of other competitive brands like Lipton Tea, Supreme Tea and Tapal Tea to give them tough time.Price of the Vital Tea product is less than that of its competitors. But as far as placement and promotion mix is concerned, this brand has weak distribution channel and promotional activities relatively. They, actually, is still to reach their product on every required spot of the country as well as internationally. Vital Tea has a lot of opportunities if they improve their distribution channel and advertising issues. It has strong competitors in the market and it has some economical and may be political threats as well.MARKETING MIX 4PCSThe four marketing mix of Vital Tea are as follows:PRODUCTThe product Vital Tea has not exceptional but good image brand image in the mind of consumers. The quality of Vital Tea makes it different and offer best quality tea to its consumers. We believe in dedicating ourselves to achieve ourselves to achieve an outstanding quality in all our activities .Excellence is a journey and not a destination. Quality is a way of life to us.

Trade name: Vital tea, A Eastern Product (PVT) LimitedThe actual product: Tea BeverageBranding:Yellow aspect of refreshing, hard pack and soft pack both also tin pack and plastic Packing.Brand personality & Brand equity:

a) Freshness, Healthy, Innovative, quality etc.b) Vital Tea provides a quality, consistent, innovative and accessible tea reputationc) Marketing considerations Product life cycle.d)