Positioning Statement & Market Analysis

Prepared By:

Ariba Mehtab : 11059

Zainab Anwer Noorani : 11480

Report On :Lipton Yello Label Tea

Class M.B.A (Morning) 9:00 to 12:00

Submitted To : Mohammead Azam Khan

Announced date: Tuesday, 16 th March, 2010

Due Date: Tuesday, 06 th April, 2010

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Table of Contents

Contents: Page#

1. 1 Positioning Statement Of Lipton Yellow Label 42. Introduction Of unilever 53. Product Category

History of Tea 6 & 7 Tea In Pakistan 8

4. Executive summary 9

5. Product Name Lipton Yellow Label 10, 11 & 12

6. Overview Of Pakistan’s Tea Indusrty 137. Target Marketing 148. Statement of need or opportunity 159. Core benefit proposition 1510. Market Segmentation of Lipton Yellow Label

16 & 1711. SWOT Analsis Of Lipton Yellow Label

18 & 1912. Primary Competitive Alternative

20 & 2113. Primary Point of difference of Lipton Yellow Label

22 & 2314. 4P’s of Marketing Lipton Yellow Label

24 to 2915. Positioning of Lipton Yellow Label

3016. Brand Repositioning &

its types 3117. Brand Repositioning of

Lipton Yellow Label 32 & 33

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18. Questionnaire for consumers 34

19. Summary of findings 35

20. Graphs 36, 3721. Thank You 38

Acknowledgement

The profound Thanks goes to ALLAH Almighty ,most gracious most merciful whom alone we worship and ask for help.

This report was arguably one of the most painful yet thrilling experiences in this semester. There were times when we were thankful, times when we were frustrated, and times when we were filled with disbelief and at last we were successful in fulfiling our task and we have an above average report for you all to read.

Thanks to Allah for giving us the skill as well as the will to survive with our heads held high throughout.We would also like to Thank our Teacher Dr.Mohamed Azam Khan (Principles of Marketing) who have been providing guidance and suport during the whole process of our report. To our parents and family who have supported us, our salutes!

Thanks to those anonymous angels at Lipton who helped us get information about the industry.

Making this report has immensely helped us in understanding the skills of Marketing. Thanks!

And finally … thanks to those cups of tea we’ve l had during this report!!

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Sup Assignment & Project POM for MBA Spring 2010

1:- Name: Ariba Mehtab Reg. No. 11059 Sec/Day Tuesday 9:00-12:00

2:- Name: Zainab Anwer Noorani Reg. No. 11480 Sec/Day Tuesday 9:00-12:00

POSITIONING STATEMENT OF LIPTON YELLOW LABEL

“For all age group people belonging to middle, upper middle & upper. (Target customer)

Who want active and refreshing life style for themselves and their famalies.(Statement of need or opportunity)

The LIPTON YELLOW LABEL is a tea

(Product name (Product category)

That has taste. Flavor,colour and aroma.

(Core benefit proposition)

“Unlike TAPAL

(Primary competitive alternative)

Our product has high ethical value and has good taste.

(Primary point of difference)

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Introduction Of unilever

Unilever is one of the worlds greatest consumer goods company and lipton yellow label is a product of Unilever.They sell around 150 million products a day,which makes them worlds largest food businesses and a leader in Home and Personal Care markets.There brands meet people everyday needs for nutrituion, hygiene and personal care and they are obsessed with developing new products that reflect the way that people likes and tastes are changing.

Location:Unilever Pakistan Limited.

Avari Plaza,Fatima Jinnah Roas Karachi.

Product Category :-

The product category of our product is tea.

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History of Tea

Origin of Tea – Legend Myths and Facts

After water, tea is the most widely-consumed beverage in the world It has a cooling, slightly bitter, astringent flavour which many enjoy. There are at least six varieties of tea: white, yellow, green, oolong,

black and pu-erh[6] of which the most commonly found on the market are white, green, oolong and black.[7] All teas are made from the same

species of plant, though different varieties may be used, and the leaves are processed differently, and, in the case of fine white tea,

grown differently. Pu-erh tea, a post-fermented tea, is also often used medicinally.[6]

First Discovery

According to Chinese mythology, in 2737 BC the Chinese Emperor, Shen Nung, scholar and herbalist, was sitting beneath a tree while his servant boiled drinking water. A leaf from the tree dropped into the water and Shen Nung decided to try the brew. The tree was a wild tea tree. There are many authentic and supposed references to tea in the centuries before Christ, according to the Chinese dictionary dated circa 350 AD. The Chinese t'u was often used to describe shrubs other than tea, hence the confusion when Confucius allegedly referred to tea or t'u when writing about the "sow thistle" plant in the Book of Odes.

From the earliest times tea was renowned for its properties as a healthy, refreshing drink. By the third century AD many stories were being told and some written about tea and the benefits of tea drinking, but it was not until the Tang Dynasty (6818 - 906 BC) that tea became China's national drink and the word “cha” was used to describe tea.

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The modern term "tea" derives from early Chinese dialect words - such as Tchai, Cha and Tay - used both to describe the beverage and the leaf. Known as Camellia sinensis, tea is an evergreen plant of the Camellia family. It has smooth, shiny pointed leaves which look similar to the privet hedge leaf found in British gardensTHE TEA PLANT

There are more than 1,500 teas to choose from more than 25 different listed countries around the world but the main producers are India, Sri Lanka, Kenya, Malawi, Indonesia and China. It is cultivated as a plantation crop, likes acidic soil and a warm climate with at least 50 inches of rain per annum. Other factors affecting flavor characteristics are the methods of processing and, of course, the blending together of teas from different areas and regions OR the additions of flowers, fruit, oils, herbs or spices from other plants.

Tea In Pakistan

Drinking tea defines our culture as well as history. Around 95% of the total world’s population is relatively familiar with tea, its strong and sensational aroma and its soothing, yet slightly bitter astringent flavour (taste). After

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water, tea is the most widely-consumed beverage in the world. In Pakistan, almost every 10th person is a tea addict and undoubtedly feels proud of this addiction (and I am now one of them too, and a proud one). May it be the light yet effective green tea, the slight ting of lemon tea, the amazingly “sab ki favourite” doodh patti, the occational Kashmiri Chai, or the delicacy of herbal tea, we all love and adore tea.

Doodh patti, is the widely used form of tea in Pakistan, then comes the rest. Now when it comes to tea, which is a commodity (and now a days a basic one in every household), we search for the one who has to offer the following:

- great flavour

- highly aromatic

- easily accessible

- affordable

Executive Summary

Tea is considered to be an essential consumption item in many countries of the world, including Pakistan. The history of tea drinking in the subcontinent can be traced far back. Over a period of time, the colonials improved the quality and taste of tea. At present there are two kinds of tea available in the market: branded and unbranded (loose) tea, the ratio is (54:46) respectively. Bulk importers sell tea to retailers in loose form, while the second category of bulk importers sell packaged tea under brand names.

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Branded VS Unbranded

Branded54%

Unbranded46%

Branded

Unbranded

All tea in Pakistan is imported. Therefore, tea, a traditional hospitality item in Pakistan, consumes a large amount of foreign exchange. Pakistan mainly imports tea from Kenya and other African countries like Uganda, Burundi and Tanzania, while multinational companies in Pakistan also import tea from Sri Lanka, Indonesia and Bangladesh. The current tea imports are approximately 150,000 tons.

There are unlimited quantities of smuggled tea flooding the market. The main problem at present is that smuggled tea has now taken over the market, simply because of the high duty and taxes levied by the government on branded tea. Smuggled tea escapes all duties and levies, and therefore can be sold cheaply, as loose tea. Now efforts are being made to grow tea leaves locally.

Product Name :-

In product category the product name is Lipton Yellow Label.

Lipton Yellow Label

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Lipton tea clears your mind so you can see things that others dont.

Lipton was created in the end of 19th century by Sir Thomas Lipton in Glasgow,Scotland. Under the slogan “Direct from the tea gardens to the Tea pot”, this entrepreneurial businessman wanted to make tea a popular and approachable drink to every one_with a high quality and a reasonable price product.

Sir Thomas Lipton

In 1929, the Lipton grocery retail business was one of the companies that merged with Home and Colonial Stores to form a food group with over 3,000 stores. The group traded as Home and Colonial Stores u ntil 1961 when it to ok the name of Allied Stores.[1]

Lipton's became a supermarket chain focused on small towns, before Allied's 1982 acquisition by Argyll Group: the supermarket business was rebranded as Presto during the 1980s.

Meanwhile, the Lipton tea business was acquired by consumer goods company Unilever in a number of separate transactions, starting with the purchase of the US and Canadian Lipton business in 1938 and completed in 1972 when Unilever bought the remainder of the global Lipton business.

Sir Thomas Lipton's vision to provide the best quality tea has made Lipton the number one tea in the world today. Lipton offers an option to tea lovers to enjoy their favorite drink in an exciting and refreshing way.

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Lipton is the tea brand for Unilever, one of the biggest multinationals around the globe. According to a source,

• 1649 cups of Lipton Tea are enjoyed every second

• 8245 cups of Lipton Tea are enjoyed every time you blink

• 1252 cups of Lipton Tea are drunk every time your heart beats

• 52 billion cups of Lipton Tea are drunk each year

Making a big splash

Lipton is one of the world's great refreshment brands, making a big splash in the global beverages market; it is the epitome of international quality. Lipton Yellow Label's assurance of quality has helped it become the world's largest selling tea brand. Specially plucked from the best tea gardens of Kenya and blended to perfection - it is truly the gold standard in tea. The 100% International Blend - made with one of the best technologies available in the world, has been brought to you to provide the finest tea drinking experience.

Be the best you can be

Drinking Lipton is a way for the consumers to feel great in mind and body - to feel good about themselves and the world around them. Lipton allows its consumers to be the best that they can be…to stay engaged and connected.

Goals

To satisfy our customers and achieve success worldwide.

Focus

Our main focus is on trust.We believe that trust is the foundation of our business actions.We believe honesty is absouletly necessary and its integrity cannot be compromised.All our actions and decisions are guided by fairness and sinserity of commitment.

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Outstanding Quality

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.

Unity and creativity

We believe in unity of purpose and value the benefit of co-ordinated efforts & we are open to new ideas at every aspect of our business.

Overview of tea industry in Pakistan

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Product Lifecycle Matrix

Time

Sale

sI ntroduction Growth Maturity Decline

Lipton

Tapal

Supreme

Tetley

Target Marketing

Targeting a segment means the company is making a selection and targeting a certain group of consumers or buyers for its product or services. Evaluation of different segments that companies make is most critical before targeting any segment, every company have its own criteria of selecting a segment such as size, potentiality of growth, profitability, economies of scale, or low risk in the segment. Lipton Yellow Label has target different market segments .

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Lipton Yellow Label basically has targeted the urban areas and has concentrated on the upper and middle classes.Therefore despite the fact that it uses a mass marketing approach it can easily be denoted that this product is catered to a particular segment. Even in its marketing approach for Lipton Yellow Label, the product is presented in a different way for instance the teabags are targeted toward the upper high class, while soft packs and jar packs are targeted for middle and middle lower class. Today as both men and women consume equal amounts of tea the age group segment selected for Lipton is for all age group for they want to target those people who are young, trendy, cosmopolitan.

Statement of need or opportunity

Lipton yellow label is for themselves who want active & refreshing lifesyle for themselves and there families

Core benefit proposition

The core benefit proposition of Lipton yellow label is that it has :

taste. flavor colour aroma.

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Market Segmentation Of Lipton Yellow Label

Market Segmentation

• Distinct needs - regular tea/ green tea• Characteristics – taste, aroma, strength• Behavior – in terms of 4 P’s Segmentation of consumer market

CURRENT STATUS OF SEGMENTATION

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There are two clear segments of consumers in the market, branded tea consumers and un-branded tea consumers. In Sindh, branded tea is consumed by most of the cities, whereas in the rural areas both branded and unbranded are equally popular. In Punjab, the city dwellers as well as a majority of rural areas are absolutely brand loyal while unbranded tea is only popular in teashops and hotels. In NWFP and Balochistan, 90% of the population still prefer the unbranded form as it gives them the chance of see and smell what they buy before paying for it. In addition, the mindset is such that now no other tea brand can compete because consumers are strongly brand loyal.

Segmentation Variables Data

Geographic Segmentation :-

World region Asia Country Pakistan Cities All major cities of Pakistan Density Urban-Rural Climate Hot & dry

Demographic Segmentation:-

Age All age group Gender Male,Female Family size 1-2,3-4,5 above Family life cycle Married & Unmarried Income 12000 above Occupation White collar & service workers Education School,colleges & Universities Religion All Race Asian Nationality Pakistani

Psychographic Segmentation:-

Social Class Middle class n upper class Lifestyle Fulfilled,believers,experience makers

and

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Strugglers

Behavioural Segmentation:-

Occassion Any occassion Benefits Quality,taste,flavour and brand status Loyality Status Significantly high Readiness Stage Awake & interested Attitude towards brand Positive & entusistic

SWOT Analysis of Lipton Yellow Label

All organizations should understand their operating enviournment as it allows them to take advantage of the opportunities and minimize threats.The following analysis illustrates the enviournment of Pakistan in which Lipton Yellow Label will be operating:-

Strengths

Experienced and quality management. Strong Ethical value (culture and heritage) Strong supply line Highly innovative Strong financial position Strong company image Success of the slogan Quality & variety Effective & attractive packaging High quality man power Help people getting more out of life Brand recognition Accessbility

Weakness

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High prices of the product Substitute products

Opportunities

Brand is the part if traditional drinking habits Research & development Makes people active Expansion in other areas of country

Threats

Strong competion in rural and urban areas Internationally increasing tea prices Political conditions in the country may be obstacle to exports High infaltion in the country can negatively effect the brand

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Primary competitive alternative

The primary competive alternative of Lipton Yellow Label is Tapal Danedar Tea.

Tapal Danedar

Tapal is a well known name in Pakistan. In 1947, it started business and now are a Tea leader and so celebrated its 55 th anniversary in 2002. Their first shop was in Jodia Bazaar.

The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family. Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal. The company continued to grow under the management of the founder's son, Faizullah A. Tapal. . Currently it is managed by the founder’s grandson, Aftab F. Tapal who has continued giving further strength to the foundations of quality laid by his family.

Making a modest beginning over half a century back, today Tapal has become the largest, 100% Pakistani owned Tea Company in the country. It has modern tea blending and packaging factories, warehouses equipped with state-of-the-art equipment and a team of highly dynamic professionals headed by Aftab Tapal himself. He was the first to introduce soft packs in the country. He developed an

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entirely new brand and category- Tapal’s Family Mixture (the mixture of tea & dust). Mr. Aftab Tapal was the first to invent the highly successful brand Danedar Leaf Blend. In December 1997, Tapal Tea became the first Pakistani Tea Company to earn the ISO-9001 certification: a symbol of the highest international quality standards. Again in December 2000, Tapal acquired the ISO-9001: 2000 certification, making it one of the first few companies in the world to achieve this milestone. In addition to the standard requirements, the ISO-9001: 2000 certification system includes requirements for environment improvement, concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction.

Tapal Danedar and Lipton Yellow Label are primary competitive of each other .They are they competitive because they target the same consumers ane are for same type of people there Target market is same. They also have slightly difference in there prices,

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Primary point of difference Of Lipton Yellow Label

The primary point of difference of Lipton Yellow Label is

Logo

Lipton Yellow Label is painting the world yellow with a marketing campaign that represents all that Lipton stands for brightness, vitality and fun with natural goodness and the red represents the enerfy it gives.

Slogan

Lipton tea can do that…

All the goodness of Tea

The all the goodness of tea makes Lipton Yellow Lbel makes it different from other products.The point of difference are as follows

Quality

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Hand picked close to the bud for best quality tea and finest taste.The quality of Lipton Yellow Label makes it different it offer best quality tea to its consumers.

Vitality

Lipton tea helps you to revitalizes your mind and body.

Natural

Litopn Yellow Label tea is a natural source of antioxidants and thearine.

Brand Image

100% natural Accessible Consistent quality Versatile

High Ethical Value

Lipton yellow label has high ethical value in the minds of consumers because it is used since ages so people are well aware of the brand.

Four P’s Of Marketing Lipton Yellow Label

The four of marketing Lipton Yellow Label are as follows.

Product

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The product Lipton Yellow Label has a brand image in the mind of consumers.Hand picked close to the bud for best quality tea and finest taste.The quality of Lipton Yellow Label makes it different it 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.The consistent quality makes the product successful in the market.

Price

Lipton Yellow Label has never wanted to compromise on quality so they adopted value based pricing.

Lipton Yellow Label :

100 gm : Rs.57

200 gm : Rs 114

500 gm : Rs 250

1000 gm: Rs 499

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Placement (Distribution)

Lipton Yellow Label has a distribution network spread across Pakistan.The popularity of the brand is so much making it the No.1 National Tea company in Pakistan.

Lipton Yellow Label caters to its customers by providing Lipton Yellow Label to more than 150000 outlets in Pakistan,which includes super stores, general stores, grocery stores and discount stores and all departmental stores.

Lipton has its headquarter in Karaci and 650 distribution offices all over Pakistan.

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Distribution plays an integral role in any company whether it’s a FMCG or

utility good. The role of distribution in the marketing mix is to deliver a

product to its target market or final consumer. Between the manufacturer

and the final consumer stands a set of intermediaries performing a variety of

functions. These intermediaries constitute a marketing channel also known

as trade channel or distribution channel. The marketing channels are set of

interdependent organizations involved in the process of making a product or

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service available for use or consumption. Marketing channels overcomes the

time, place and possession gaps that separate goods and services from

those who need or want them.

Liton Yellow Label Danedar is known for its wide distribution network. The

Lipton Yelow Label distribution channel is:

Promotion

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Manufacturer

Wholesalers

Retailers

Consumers

Promotion:

The Lipton Yellow Label does it promotion in following ways.

The company uses different promotion techniques they povide different items to

people such as :

Caps Tea bags Cups Printed T-shirts Discounts Basant festivals Vans WatchesThe company is different sales promotion techniques at different time of the year depending on the sales of the product.

Electronic Media :

The company is spendind a lot on electronic media.In there advertisment they hire

renowned celebrities.

Advertisment:

The Lipton Yellow Label uses different types of advertisment as follows

Television:

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Lipton yellow label spends a lot on television advertisment.Commercial during cable network movies, TV shows such as special drama, news ,talk shows and Sitcom

Product placement is also done in many of the shows.

Magazines:

Full page advertisment including Akhbar-e-Jahan, Mag, Family Magazine, Fashion & Business Magazine.

Internet:

Lipton Yellow Label advertises on websites such as Facebook & Yahoo.

Co-Branding:

Avaiable at big shopping malls such as Dolmen Mall, Park Towers & Millenium Mall.

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Positioning Of Lipton Yellow Label

Positioning involves designing the product and image that will occupy a distinctive place in the minds of the target market. As can be seen, Lipton

yellow label have the largest profit margins and market share in the automobile industry. Thus the marketers at Lipton have decided to create its own unique image and then strengthen the position in the customers’ minds.

The Lipton Yellow Label has positioned its product in the minds of the consumer as

Active Refreshing Colour Aroma Taste Flavour Outstanding Quality Slogan

BRAND REPOSITIONING AND TYPES OF BRAND REPOSITIONING

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Brand Repositioning is changing the positioning of a brand. A particular

positioning statement may not work with a brand.

For instance, Dettol toilet soap was positioned as a beauty soap initially. This

was not in line with its core values. Dettol, the parent brand (anti-septic

liquid) was known for its ability to heal cuts and gashes. The extension's

'beauty' positioning was not in tune with the parent’s “germ-kill” positioning.

The soap, therefore, had to be repositioned as a “germ-kill” soap (“bath for

grimy occasions'') and it fared extremely well after repositioning. Here, the

soap had to be repositioned for image mismatch. There are several other

reasons for repositioning. Often falling or stagnant sales is responsible for

repositioning exercises. 

Product repositioning — key to successful marketing

AFTER EXAMINING REPOSITIONING OF SEVERAL BRANDS FROM

PAKISTANI MARKET THE FOLLOWING TYPES OF REPOSITIONING ARE

IDENTIFIED, THESE ARE

1. Increasing relevance to the consumer

2. Increasing occasions for use

3. Making the brand serious

4. Falling sales

5. Bringing in new customers

6. Making the brand contemporary

7. Differentiate from other brands

8. Changed market conditions. 

It is not always that these nine categories are mutually exclusive. Often

one reason leads to the other and a brand is repositioned sometimes for

a multiplicity of reasons.

REPOSITIONING OF LIPTON YELLOW LABEL TEA

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LIPTON YELLOW LABEL was initially positioned as delicious, sophisticated and premium tea for the global citizen. The advertisement also echoed this theme. The repositioning specifically addressed the local customer by the old melody “chai chahie......”

CHANGING SLOGAN

LIPTON TEA CAN DO THAT…..

This slogan and advertisement campaign attracts the youngsters..Lipton people placed the bill boards on roads, bus stops with simple questions…and their answers were given few steps forward.

Launching of lipton ice tea

Lipton also launched ice tea to take the competition head on so the youngsters also enjoy their product.

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Questionnaire for Consumers Name: ________________________________

Age: ________________________________

Area: _______________________________

Profession: ____________________________

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1) Gender ?a) Maleb) Female

2) Age group ?

a) 1- 15b) 15-30c) 30-45d) 45-60e) 60 above

3) Marital status ?

a) Unmarriedb) Married

4) How many cups of tea you consume every day ?

a) 1-2b) 2-3c) 3 above

5) Which tea do you drink ?

a) Lipton Yellow Labelb) Tapal

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From the questionnaire we found some statistics related to our product.

SUMMARY OF FINDINGS :

Our respondents of 100 sample size.

Gender 0

10

20

30

40

50

60

MaleFemale

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Age Group0

5

10

15

20

25

30

35

1 to 1515 to 3030 to 4545 to 60 60 above

Marital Status0

10

20

30

40

50

60

UnmarriedMarried

35

Tea Consumed0

5

10

15

20

25

30

35

40

45

50

1 to 2 2 to 3 3 above

Tea Brand44

45

46

47

48

49

50

51

52

53

54

Liton Yellow Label Tapal

36

37

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