LIPTON TEAYELLOW LABEL

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INTRODUCTION ABOUT COMPANY

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LIPTON WAS CREATED IN 1871 CREATOR : THOMAS LIPTONSLOGAN: “ DIRECT FROM GARDEN TO

TEA POTS”THOMAS OPENED HIS OWN SHOP AFTER 1880,s BUSINESS GREW UPTO 200

OUTLETSTODAY LIPTON COVERS MORE THAN 15%

OF TOTAL WORLD MARKET OF TEA

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TEA “PART OF LIVES”At break fast During lunch break at workplaceIn the evening at homeGuest are typically offered between tea and soft

drinkCommon practice to offer tea breaks to hired

labor

INTRESTING INFORMATION

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Total consumption in a country 200,000 to 225,000 tones

1649 cups of Lipton tea are enjoyed every time blinked

8245 cups of Lipton tea are enjoyed every second

1252 cups of Lipton tea are drunk every time you heart beats

52 billon cups of tea are drunk each year 45.75 billion tea bags are produced during a year

by Lipton

MARKETING MIX

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PRODUCTLipton tea is of high premium quality and mainly to cater the upper, upper middle

Pleasure Taste Aroma Flavor Delight and Freshness

Convenience & Health Availability Quickly Available Physiological functional claims Benefits of Cardamom

PRICE

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•SPECIAL DISCOUNT OFFERS EVENTS LIKE RAMADAN AND EID

•1KG PACKET ONLY AND ITS COSTS AROUND RS.600

•190 GRAMS PACK RS 95

•THE CUP OF TEA COSTS AROUNDRS.15-20

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PLACE Special stores like Metro, CSD, and Hyper Star Makro Nonspecific stores for example general stores

bakeries

All type of tea not placed on all stored & outlets High quality for niche segment

Availability more than 180000 outlets, Serves 150 countries

Head quarter in Karachi 650 distributions all over Pakistan

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PROMOTIONLipton tea is advertising itself on TV channels, print media and social networks giving promotion like the chance of winning DSLR camera through lucky draw.

Lipton does it promotion done in following ways advertisement Personnel selling Co branding (Lipton )Sale promotion Internet marketing Publicity

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SALES PROMOTION

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SWOT ANALYSIS

Unilever is a multinational company Powerful heritage of Lipton, in the Pakistan market

since 1948 Familiar with psycho and demographics of the local

consumers Strong brand image and brand awareness in Pakistan Market leader as has 70% market share in branded

tea. Larger sales force Strong and long-term relationship with distributors,

wholesalers and retailers. Sound and experienced management.

STRENGTHS

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WEAKNESSES

Loss of market share to Tapal in Karachi and Multan Low market share in N.W.F.P. Positioning of Lipton Yellow Label as a premium

product to which consumers have a weak emotional attachment

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OPPORTUNITIES High rate of population growth Rising literacy Tea was added to the smuggled goods list in March

1998 and import duty was reduced from 45 to 25 percent. This has collectively placed the entire organized tea business in a more favorable position.

Market opportunity of Lipton Yellow Label in rural areas

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THREATS Threat from cheaper tea smuggled into the country via

border areas of NWFP and Baluchistan seriously affecting Lever’s sales and earnings.

Possible increase of Tapal and loose tea market shares Rising inflation, which reduces disposable income of

consumers? Increasing import duties since a lot of raw materials are

imported would raise the price of its end products. Lipton’s profit margin is exposed to rupee devaluation.

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MARKET SEGMENTATION 

GEOGRAPHICCountry

PakistanCountry

Region AllClimate

Moderate

DEMOGRAPHICAge 12+Gender Male-Female Income Rs 5000+Occupation Professionals,

Students, Managers, OfficialsEducation

Professionals, Graduates, Student

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MARKET SEGMENTATIONPSYCHOGRAPHIC

Social Class Upper middles, lower Uppers, upper-uppers Life Style Achievers Personality Cultured, energetic.

BEHAVIORALOccasions Regular, SpecialBenefits Taste, AromaLoyalty Status StrongUser Rates Medium user, heavy userReadiness State Aware, interested, desirousAttitude towards Product Positive,

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POSITIONING Lipton is portrayed as a high quality product mostly catering to the affluent or the middle class; it portrays itself as a cosmopolitan, elegant, high class and sophisticated tea. High quality High price Great aroma New taste Exciting and refreshing

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ADVERTISING LANE FOR A PRODUCT

Budget

Budget comes to a total approximately 15 billion rupee

Budget requirement is necessary as hoarding would be set up at location costing up to 2 billion

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ADVERTISING BUDGETSummary report Advertising budget 2007-08 150,000,000 Air media………………………………… 15% ……………………………….22,500,000Print media……………………………..30%......................................45,000,000Outdoor media……………………… 20%......................................30,000,000POS material……………………………10%......................................15,000,000BTL ……………………………………………….5%......................................22,500,000Event sponsorship…………………10%......................................15,000,000

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MARKET POTENTIAL 84% of elite class & high middle class prefer Lipton over

tapal where as 95% of middle and lower middle class prefer tapal over Lipton

Whom should Lipton target 85% of brands made purchase by women

Market potential: Assume this formula that one person consume 1 kg of

tea in a year

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DISTRIBUTION CHANNEL Northern sales:Multan, Lahore, Islamabad Sothern regionKarachi sukkar, Hyderabad

Sales manager 2Regional manager into different 6 regionZonal manager 19 zones Zones managers further 4-6 zones Territory sales executive & sales officer 110 territory 475 towns at least 1 distributors around 6-8 people per town

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SUPPLY CHAIN Manufacturer Whole seller Retailer Consumer

Lipton have separate supply chain department Distributor Whole seller Universities/ restaurants/ institution Retailer Offices /house End user application of product

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HOW DISTRIBUTIONS WORKS Territory executive officers go to respective

assigned distributors and take their order Their distributors have their own sales man who

go from shop to sop Total amount off all orders is calculated and

amalgamated amount forwarded from Lipton distributor to Lipton territory executive officer

As a channel distribution quality check once in two months territory executive officer and distributor perform shop to shop ordering booking

PUBLIC OPINION

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THE END LIPTON TEA BE POSITIVE

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