SUBMISSION DATE29TH DECEMBER 2010

TERM REPORT marketing activities of lipton

Iqra university IU

SUBMITTED BY:

SAMIA ALI

BUSHRA SABA

HINA JINDANI (3865)

KOMAL SHAMNANI (3863)

SUBMITTED TO: MR. SANATULLAH

FOR PRINCIPLES OF MARKETING COURSE

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marketing activities of lipton

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TABLE OF CONTENTCover page 1Title page 2Table of content 3Acknowledgement 4Executive summary 5Introduction to unilever 6Introduction to lipton 7-10STP 11-14Differentiation of lipton 154ps 16-21CRM 21BCG Matrix 21-22Product life cycle 22-23Micro Environmant 25-28Macro Environment 29-31Consumer buying behavior 31SWOT Analysis 31Competitive Analysis 32-33Conclusion 33

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Acknowledgement

He gave us a world full of challenges

And gave us ambition to try

World that holds marvelous secrets

And minds that would ask why?

He gave us his guidance

He gave us his strengths

He gave us his infinite love

To help us in making our wonderful world

More and more like above

 First of all we are very thankful to Allah the Almighty who gave us strength to deliver this

project and secondly we are also very thankful to our teacher Sir Sanatullah who gave us an

opportunity to present this informative and creative project, which has increased our knowledge

and awareness.

We are thankful to (Assistant Manager Marketing Research) of Lipton who guided us about their

company and provided us the information about Lipton tea. Also we are really thankful to our

parents who gave us courage, help us in doing this and prayed for our success.

We pay our gratitude to all those who extended their full cooperation with us for the completion

of this project. This project really provides us a lot of information and InshAllah it will be

helpful for us in the future.

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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.

BRANDED V/S UNBRANDED

Branded TeaUnbranded Tea

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 likeUganda, 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.

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INTRODUCTION TO UNILEVERUnilever is an Anglo-Dutch multinational corporation that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products.

HISTORY:Unilever was created in 1930 by the amalgamation of the operations of British soapmaker Lever Brothers and Dutch margarine producer Margarine Unie, a merger as palm oil was a major raw material for both margarines and soaps. In the 1930s the Unilever business grew and new ventures were launched in Latin America. By 1980 soap and edible fats contributed just 40% of profits, compared with an original 90%. In 1984 the company bought the brand Brooke Bond (maker of PG Tips tea).

The company is said to promote sustainability and started a sustainable agriculture program in 1998. In May 2007 it became the first tea company to commit to sourcing all its tea in a sustainable manner, employing the Rainforest Alliance, an international environmental NGO, to certify its tea estates in East Africa, as well as third-party suppliers in Africa and other parts of the world. It declared its aim to have all Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010, followed by all Lipton tea bags globally by 2015.

Unilever Pakistan (70.4% Unilever equity) is the largest FMCG Company in Pakistan, as well as one of the largest multinationals operating in the country. 

INTRODUCING UNILEVER PAKISTAN LTD:The company had a turnover of Rs. 23.3 billion  (Euro 309 million) in 2007, and enjoys a leading position in most of its core Home and Personal Care and Foods categories, e.g. Personal Wash, Personal Care, Laundry, Beverages (Tea) and Ice Cream.

The company operates through 5 regional offices, 4 wholly owned and 6 third party manufacturing sites across Pakistan.

Unilever has a wide reach and it's distribution network reaches remote regions within the country. With a wide range of offerings, including low unit priced packs, Unilever Pakistan addresses all segments of the socio-economic pyramid.

Unilever is a proud part of Pakistan’s history, contributing to economic growth of the nation and catering to the daily needs of 164 million people. It contributes significantly to the national exchequer through tax revenue and is committed to developing downstream capability through technology transfer to 3P manufacturers, suppliers and distributors. Globally Unilever is increasingly drawing talent from its operatives in Pakistan, opening new vistas for career development.

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INTRODUCTION TO LIPTONLipton is one of the world's great refreshment brands, making a big splash in the global beverages market with tea-based drinks including leaf tea, infusions, ready-to-drink tea and other healthy, refreshing alternatives to soft drinks.

Lipton was created at the end of the 19th century by Sir Thomas Lipton in Glasgow, Scotland. His enterprise soon flourished and he established a chain of grocers, first across Glasgow, then the rest of Scotland, until finally he had stores throughout Britain.

Under the slogan "direct from the tea gardens to the tea pot", Lipton wanted to make tea a popular and approachable drink for everyone.

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.

PAINTING THE WORLD YELLOW:Lipton is the world's leading brand of tea by far. It's the global market leader in both leaf and ready-to-drink tea, giving a global share of all tea-based beverages that's nearly three times larger than its nearest rival. In total non-alcoholic beverages, Lipton is the global number two brand in terms of volume consumed.

LIPTON YELLOW LABEL:Lipton Yellow Label has been sold since 1890, when Sir Thomas Lipton created the first version of the Yellow pack with a red Lipton shield, which to this day typifies the Lipton Yellow Label brand. It is sold in 150 countries worldwide.. Lipton Yellow Label is a blend, meaning that up to 30 teas from many different origins are blended together to create a consistent quality and taste.

Lipton Yellow Label blend is available both in tea bags, the preferred format in Western Europe, North America and Australia, a well as loose packaged tea, the preferred format in much of the Middle East and throughout Asia.

In 2008 Lipton Yellow Label became the first tea globally to bear the Rainforest Alliance Certified Seal on pack.

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ANTIOXIDANT HEALTH PROPERTIESTo confirm this, every Lipton pack is now stamped with the AOX Seal, highlighting Lipton Tea's antioxidant health properties and underlining the brand's commitment to consumers' vitality and well-being.

Many people don't realise that black and green tea contain virtually the same amount of antioxidants. In fact, whether black, green, oolong, white, in a Lipton ready to drink or leaf tea, will provide you with antioxidants. 

RE-THINKING YOUR DRINKING HABITSThe AOX Seal is just one way Lipton is helping people rethink what they drink by reminding them of tea's health and vitality credentials.

The 'Tea Can Do That' campaign across North America is highlighting the positive effects of tea-drinking on body and mind with the message: 'Drink Better Everyday...Live Better Everyday'.

SCIENTISTS SAY THAT TEA IS SECOND ONLY TO WATER!A recent publication by a group of key nutrition experts has highlighted that tea is second only to water as the best beverage for hydration in the world. Why? It’s naturally zero calories, and a source of many good things including L-theanine and antioxidants. In addition, tea is hydrating – and not dehydrating despite popular belief.

SOME FACTS AND FIGURES: 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 45.75 billion Tea Bags are produced by Lipton Tea each year

FUN FACTS All the Lipton String & Tag tea bags sold in one year would circle the earth 789 times

and the string used would encircle the earth 573 times The total amount of Lipton hot  tea consumed in one year can be represented as the

amount of water thundering over Niagara Falls for 4.5 hours The weight of Lipton tea leaves sold in one year is equal to a herd of 14 077 adult

African elephants.   

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BRANDS:Lipton's main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Other product lines exist as well, like the Lipton pyramid range in Europe and North America, and Lipton Milk Tea in East Asia. In 2008 the brand launched Lipton Linea in Western Europe, a green tea variety with a higher level of catechins, which the company claims can help one lose weight.

LIPTON ICED TEA:Lipton Iced Tea, in many markets known as Lipton Ice Tea, is an iced tea brand sold by Lipton through two joint ventures with PepsiCo. The operations are 50-50 ventures, in which PepsiCo contributes its bottling facilities and distribution networks and Unilever the brand (Lipton) and recipe.

There is a variety of flavors sold throughout the world. In the United States, it is marketed in 16 oz (448ml) bottles with the following flavors:

Iced tea - Sweetened Iced tea -

Unsweetened Iced tea with Lemon Iced tea with

Raspberry Iced tea with Peach Iced tea with Mango Iced tea - Diet Sweet

Tea (sweetened with Splenda)

Iced tea - Diet Lemon Iced tea - Extra Sweet

Green tea with Honey Green tea with Citrus Green tea with Mint Diet green tea with

Citrus Half & Half (Half

sweetened ice tea and half lemonade)

Diet green tea with Mixed Berry

Green tea with Orange and Passion Fruit

White tea with Tangerine

White tea with Raspberry

Sparkling Green Tea

LIPTON PYRAMID TEAS:These pyramid shaped bags were pioneered by Lipton and provide more room for infusion of the leaves, delivering faster and better infusion. Different flavors are available in different markets but they include

White Tea Green Tea

Gold Tea Red Tea (black tea with Rooibos)

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Earl Grey tea Tuscan Lemon

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MARKET SEGMENTATION OF LIPTON YELLOW LABEL

MARKET SEGMENTATIONDistinct needs- regular tea/ green teaCharacteristics- taste, aroma, strengthBehavior in terms of 4 Ps Segmentation of Consumer market

CURRENT STATUES OF SEGMENTATIONThere are two clear segments of consumers in market, branded tea consumers and unbranded tea consumers. In Sindh branded tea is consumed by most of the cities, where as in the rural areas both branded and unbranded are equally popular. In Punjab the city dwellers as well as 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 prefers the unbranded tea as it gives them chance to 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 loyal

SEGMENTATION VARIABLESGEOGRAPHIC SEGMENTATION

World region Asia Country Pakistan Cities All major cities of Pakistan Density Urban and rural Climate Hot and dry

DEMOGRAPHIC SEGMENTATION

Age All age groups Gender Male and Female Family size 1-2,3-4,5 above Family life cycle Married and Unmarried Income 12000 above Occupation White collar and service workers Education School, college and universities Religion All

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Race Asian Nationality Pakistani

PSYCHOGRAPHIC SEGMENTATION

Social Class Middle class and Upper class Lifestyle Fulfilled, believers, experience makers and

Strugglers. Personality Compulsive, gregarious, authoritarian and

Ambitious.

BEHAVIORAL SEGMENTATION

Occasion Any occasion Benefits Quality, taste, flavor and brand status User status Ex-user, regular user, first time user Loyalty Status Significantly high User rate medium user, heavy user Readiness Stage Awake and interested Attitude towards brand Positive and enthusiastic

TARGET MARKETING: Targeting a segment means the comp any 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 .

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.

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POSITIONING OF LIPTON YELLOW LABELPositioning involves designing the product and image that will occupy a distinctive place in the mind of the consumer of the target market. As can be seen Lipton yellow label have the largest profit margins and market share. Thus the marketers at Lipton have decided to create its own unique image and then strengthen the position in the consumer’s mind. Lipton yellow label positioned its product in the mind of the consumer as

Active Refreshing Color Aroma Taste Flavor Slogan Quality Health caring Adventurous Alert Vibrant

LIPTON YELLOW LABEL was initially positioned as delicious, sophisticated and premium tea for the global citizen. The advertisement also echoed this theme. The re pos i t i on ing s pec i f i ca l l y add re ss ed t he l oca l cu s tomer by the o ld me lody “ ch a i ch ah ie . ”

Then i t adop t ed an ano t he r pos i t i on ing s t r a t egy by chang i ng s l ogan

“LIPTON TEACANDO THAT”. Th i s s l ogan and a dv e r t i se men t campa i gn a t t r ac t s t he you ngs t e r s . L ip ton peop l e placed the bill boards on roads, bus stops with simple questions and their answers were given few steps forward.

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DIFFERENTIATION OF LIPTON YELLOW LABLEIt did its differentiation through:

LOGO

Lipton yellow label is painting the world yellow with a marketing campaign that presents all

Lipton stands for brightness, vitality, and fun with a natural goodness and the red color

symbolize the energy.

SLOGAN

“Lipton Tea can do that “.

ALL GOODNESS OF TEA

The all goodness of tea makes Lipton yellow label makes its different from the other Products

the point of difference is as follows.

1. Quality The finest quality of tea Lipton serves to its customers.

2. Vitality Lipton tea helps to revitalize mind and body.

3. Brand image 100% natural

Accessible

Consistent quality

Versatility

4. High Ethical Value

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Lipton yellow label has high

ethical value in the mind of the

consumers because it is used since

ages so people are well aware of

the brand

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4 P’S OF MARKETING LIPTON TEA

PRODUCTThe product Lipton label has a brand image in the mind of consumers. The consistent quality makes the product successful in the market. The quality of Lipton makes it different. It offers a best quality tea to its consumer. They believe in dedicating in ourselves to achieve ourselves to achive an outstanding quality in all our activities. Quality is way of life to us. The consistence quality makes the product successful in the market

EXCELLENCIES A JOURNEY AND NOT A DESTINATION

PRICINGPrice is simply the cost plus profit of the firm. There are many competitors in the market. So the firms have to consider about the competitive price while selecting new price and schemes.

Unilever is charging comparatively high prices for Lipton Yellow Label teabecause of its well built reputation and quality product. They have major share inthe market and they are at top although they are facing competition but due to theirname in market they are earning higher profits.

BASIC METHOD OF SETTING PRICES

Unilever is using the following methods for price setting.

PRICE TO DISTRIBUTORSThe company provides products to the distributors for the prices decided keeping in view the cost, the target revenue and competitors prices. All distributors are being equally treated.

PRICES CHARGED BY DISTRIBUTORS TO RETAILERS

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Unilever gives margin of certain percentage to distributors so in this way prices to be charged by distributors to retailers are fixed.

PRICES CHARGED BY RETAILERS TO ULTIMATE CONSUMERSCompany influences prices charged by retailers. So retailers are bound to charge fix price to ultimate consumer.

HOW TO SET THE PRICE OF THE PRODUCTPrices are set by taking into consideration into the prices of the competitors.

Prices are set by taking into consideration what customer believes for high price & high quality.

There prices are high because they believes in zero defects.They charge different prices to registered and unregistered retailers. Prices are set by taking into consideration the size, type of product.

PRICE ANALYSIS

PACKAGES PRICES IN RSTea bags 150 sachets 165Tea bags 100 sachets 112Tea bags 50 sachets 60Flavored 10 sachets 56

Yellow label 100 gram 57Yellow label 200 gram 116Yellow label 500 gram 250Yellow label 1000 gram 450

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PLACEMENTUnilever is focusing on the indirect marketing channels where they sell Lipton tea through retailers.

Company

Distributor

Retailer

Consumer

They have distribution offices in different cities from where product is distributedto retailers. They have divided areas into regions and then made distributionchannels according to the demand of different regions and in this way theirdistribution network is working successfully all over the Pakistan. Following is thedetail of distribution channel.

LOCATIONS As on the basis of Lipton tea; Unilever is focusing on all areas through which it is possible to cover different classes’ needs.

That’s why Unilever products are available at general stores as well as departmental stores.

COVERAGE

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Unilever aims to create a long term relationship with customers so they belief that this objective will be only fulfill, if they have system to handled the markets needs as to reach the product on all areas where its target market exist.

SHELF SPACINGLipton tea is being position in different departmental store on the base of taking the specific area among other brands.

DISTRIBUTION CHANNELS Head quarter in Karachi It has 650 distribution offices all over Pakistan. 3 manufacturing Units in Karachi, Khanewal & Raheem Yaar Khan. 7 distribution channels in Lahore alone. 25 outlets in various places of Lahore.

PROMOTIONThe guideline and objectives will effectively improve the sale sof the new product .Lipton has created the brand personify the positioning of the product is also every mush in the contrast when one here the name, it will remind them of the freshness and purity. Lipton has numerous option to give him substantial about there product.

The company using different promotion techniques they provide different items such as

Caps Tea bags Cups Printed t-shirts Discount Coupons

ELECTRONIC MEDIAADVERTISEMENTS SUCH ASTelevision is the power full medium because it communicates from both sight and sound. Channels they were used

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ARY DIGTALHUMTVBusiness plus Indus vision Magazines Internet Banners / billboards TV satellite

TIMING USED Timing used is the most important when placing advertising so Lipton place their timing in mooring in between 7: am to 9: am and in the first half evening in-between 4:30pm to 6: pm. Because these are timing people are having a cup of tea.

CRMCompany manages the image of this product among people through the entire network of CRM that is customer relationship management via its help line RAABTA CONSUMER CARELINE or LEVER RABTA. Whereas the employees related to this product also shows etiquettes while communicating their customers. They show honesty towards their customers so that customer feels satisfaction and loyalty to this product. The people who belongs the CRM process also takes feedback from their customers so that they can communicate to the upper level via EVS (employee voice system) so that they can deliver the feedback to the upper level regarding customer’s needs and wants.

BCG MATRIXSTARS

Lipton and Tapal have been placed as stars because they not only have higher market shares as compared to the rest of the brands but also because their business growth rate is higher and they believe in continuously investing in their businesses for expansion purposes

CASH COW

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Supreme is a cash cow because business growth wise, its progress is pretty slow but as far as the market share is concerned, it absolutely has a greater market share than Tetley but at the same time its share is not comparable to that of Lipton. Therefore the option for them to invest further in the business is also limited hence limiting their growth opportunities.

QUESTION MARKS

Tetley and Vital, both have the worst cash nightmares because they have the least market share with demand still existing which could be met. The low market share is an issue at their end and if they do not work on improving it they might end up in the dog category in the near future. It is important for them to further diversify their businesses if they want to sustain themselves in the current market scenario.

DOGSAn unbranded tea product falls into dog’s category; here market share and growth level is very low. There is no prosperous future for them and finally have to windup the business as the huge branded tea products available in the market and they do not have huge plants and new technology as compare to branded tea products.

PRODUCT LIFE CYCLE A new product progresses through a sequence of stages from introduction to growth, maturity and decline. This sequence is known as product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

Lipton lies in the maturity stage, its market share is 50 percent, and it has achieved great recognization due to Unilever and thus emerged as a market leader. In a short span of time Lipton has achieved welcoming response from the target market. It is in the maturity phase with its competitor Tapal and Lipton becomes the market leader through its marketing strategies. Supreme is also the product of Unilever but it is in growth level and its market share is less than Lipton.

The product revenue and profits can be plotted as a function of the life-cycle stages as

Shown in the graph below:

Sale

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TETLEY SUPREME TAPAL LIPTON

T i m e

INTRO GROWTH MATURITYTY DECLINE

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MICROENVIRONMENT AND MACROENVIRONMENT

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MICROENVIRONMENT

CHART OF MICRO ENVIROMENT

COMPANY

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The Company Unilever is the largest FMCG Company in Pakistan, which was established in 1948. It is an international company, with head offices in most of the countries of the world. People at Unilever work together to attain a single target, which is customers, need satisfaction. The people at work, coordinates to achieve this target through setting up objectives and targets and attaining them. Top Management set the mission and objectives, whereas the marketing managers set strategies according to all these decisions and missions. Unilever strategy has been quite amazing; their efforts go beyond just providing the products, more importantly, providing consumers with the required health and nutrition information that can help them make better informed choices to lead a healthier lifestyle.

SUPPLIERThe main strategies of Lipton suppliers are the creation of volume discounts for vendors who place orders for large quantities of a specific good or service. Suppliers rarely rely simply on competitive pricing in order to secure steady clients. Along with price, they also tend to strive for quality, an attractive range of goods and services, quick response to customer queries, and timely delivery of the products once the order is placed. Our suppliers are expected, at a minimum, to conduct business in an ethical manner and comply with all applicable laws and regulations.

Singapore, Kenya, Tanzania is the main areas of Lipton teas are a blend selected from many different plantations around the world, from well-known producing countries like India, Sri Lanka, Kenya, and China Available in over 110 countries, Lipton is particularly popular in Europe, North America and the Middle East, parts of Asia and Australasia (Australia and New Zealand).

MARKETING INTERMEDIARIESUnilever marketing intermediaries have played an effective role in distributing its products. Unilever products are widely available in nearly all retail stores. The physical distribution of the firm is quite balanced and covers a very wide area. Financial intermediaries of the firm are quite strong and depict a very firm relation with the company. These have strongly helped the company in promoting its products.

CUSTOMERSThe customers have always been quite contended with the products. There’s a huge wide range of products produced that are being used by consumers on regular basis. The company has maintained its standard though out, that has helped in binding strong relations with its customers. Customers don’t feel like switching to any other brands and are blind folded by the standard and quality produced. The Unilever Lipton cardamom tea targets very niche market, the concept is new and very few people are aware of it.

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COMPETITORS

INTERNAL COMPETITORSBrook bond supreme

EXTERNAL COMPETITORSTapal daane darAlokozay VitalTeley

WHICH BRAND DO YOU USUALLY BUYBrooke brand tapal Lipton tetlen vital alokoza

11 2 12 0 0 0

44% 8% 48% 0% 0% 0%

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CHART OF LIPTON LABEL TEA

brookebrand; 44%

tapal; 8%

lipton; 48%

PUBLICSThe groups of people that have an actual or possible interest in or impact on the company's efforts to achieve its goals. Lipton promise an ethical approach to tea sourcing and growth in their public relations, Lipton with some common characteristic with which an organization needs to communicate, direct or indirect association including the

media, government bodies,

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financial institutions, Pressure groups. customers suppliers Organization: Employees, Investors, Students, etc.

MACRO ENVIRONMENTDEMOGRAPHIC FACTORPakistan is a country; here tea intake is very high as compared to other countries of the world. Generally people consume 2-4 cups of tea per day. So demographically in a country like Pakistan where tea intake is high, any production or development in the line/extension would help the company to grow.

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The demographic includes age, location, gender, race, occupation etc.

Lipton is designed for upper middle, upper lower and upper middle lower. The potential market for the Lipton is aged 10 -60, it does not target children.

ECONOMIC FORCESEconomic conditions of an environment have a direct impact on the development of any industry. The recent economic recession in the world has had an impact on Pakistan’s economy as well. Pakistan’s economy mainly encompasses textiles, chemicals, food processing, agriculture and other industries.

Security concerns stemming from the nation's role in the War on Terror have created great instability.

INFLATIONInflation remains the biggest threat to the economy, when it happens company has to bear lots of losses, it suffers greatly. It results in decline in sale and sometime the inflation even lead to decline in production as well.

NATURAL FACTORLipton has engaged it’s self in providing better quality. It has been in touch with natural environment for

a longer time. It does its plantation in Kenya and Tanzania. It is very keen in natural environment and for

the health of its consumers that is why the process which Lipton follows in the process of tea in a very

conscious manner. The natural environment can have an effect on its production like if natural disasters

such as earthquake or flood take place. It will dramatically impact its tea plantation and the productions

will suffer a lot.

TECHNOLOGICAL FORCESAs the old adage states "NECESSITY IS THE MOTHER OF INVENTION" i.e. necessities tend to spawn inventions and each invention is annexed with the need of betterment and transmogrification.

World, as it has been rightly said is "converging" and "accelerating" which may allude to the fact that the world is growing shorter (shrinking) day by day. The advancements are also accompanied by the reduction in the time, effort and cost for production of any material. Needless to say that like any other aspect of development, the technological development is similar to a double edged sword which on one side can kill someone and on the other side can

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lead to one’s own protection. However, the decision to use it proficiently in proper perspective is ones’ own decision and choice.

As we have seen over time technological advances in the world but we have also seen that Lipton is no where behind anyone. Lipton and its management claims that they are one of the most technologically advance tea producers in the world and their statement is supported by new products such as tea bags, electronic tea makers for commercial and non-commercial uses. They have not only used advanced technology for production process but they have also implemented proper quality control. In nut and shell it can be said that technological advancement has proven so far as opportunity for Lipton instead of threat.

POLITICAL FORCESPolitical forces are one of the most important factors that affect the activities of any business. Political forces play a major role because politics comprises of people who have authority to allocate resources including capital, land etc. all business operate in a particular country and each country has its own rules and regulations and to effectively operate in that country company have to adhere to those policies. Companies and brands are greatly affected by political uncertainties and changing political scenarios. Lipton also works in accordance with political scenarios of host countries. They always keep an eye on changing political conditions and their effect on environment to cope with all the problems that it can bring. They try to minimize the effect of political uncertainties over their business. As we know that Lipton is multinational brand but still it has been successful in meeting the political demands of different countries and has always followed prescribed rules and regulations.

CULTURAL FORCESCulture is one the important aspects which companies need to look at. Globalization has transformed the values of people and companies to need to look at them properly. Different people in different countries have different cultures. Companies need to make strategies bearing local cultures in the mind and taking decisions which do not effect the local culture adversely.

Lipton also realizes the importance of prevailing cultures in countries where it operates. Lipton signifies that customers are the most important stakeholders. Satisfying needs of different customers with different products such as Lipton tea in different flavors is also a step to cater the cultural needs of people. People in South Asian countries are more prone to tea and people in western countries are more prone to coffee. Lipton realizes the different cultures and then goes on to make strategies in line with those cultures.

CONSUMER BUYING BEHAVIOR

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Lipton is a multinational brand of beverages that is being consumed throughout the world. It has been observed that consumers are very loyal to this brand suggesting that they portray habitual buying behavior when it comes to tea. Lipton through its quality, aroma and taste has made its unique brand image which is the major reason why consumers show loyalty towards their product. Lipton through its effective advertising as perfect blended tea for family and gatherings has made consumers think about Lipton when it comes to refreshment.

SWOT ANALYSISStrengths Weaknesses Opportunities Threats

Enjoying economies of scale

Huge inventory stocks of raw materials

Rapid market growth Low profit margins

Good will in the markets

Internal operating problems

Changing customer needs and wants as lifestyle change

Smuggled brands of china

Strong financial position

To create relations with society on the social marketing bases

New competition in the market

Have strong distribution channels in Pakistan

Increase in taxes

Abundant financial resources

increase in prices due to fuel prices

Well known brand names

Well brand images

Committed employees

COMPETITIVE ANALYSISCompetitors are the major threat face by every company in a market. Companies need to keep a careful check on its competitors. They have to keep into consideration that what other competitors is offering, at what prices, what quality, what benefits etc.

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

Tapal tea is one of the major competitors for Lipton in the tea industry. Its product range has achieved great popularity in Pakistan. Products such as Tapal Danedar and family mixture are the top selling brands of Tapal, other brands are also gaining acceptance in the market. 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.

The company has enjoyed a phenomenal growth particularly during the last decade to expand its base in the branded market, which for long were dominated by multinational competitors. During the year 2009, Tapal’s market share has increased. The market share has risen as Tapal has won customers due to its strong taste and aroma backed by innovative products .Tapal has engaged in extensive promotion of its products. Another factor driving sales is relatively less prices. The increase in market share is evident from its increase in sales. Tapal has shown an increase of about 29%in sale revenue. This has been primarily Tapal has introduced a wide product range to meet the requirement of different taste and aroma of Pakistani culture. Tapal green tea has shown a rising popularity. It has introduced different flavors in green tea range. Recently Tapal has launched ice tea which has been not as successful in the market.

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

The Main Key Competitor of the Lipton is

Tapal Supreme

There are also some other players in the market like

Vital Tetley Alkozoy tea

But Great competitions always remain between them.

COMPETITIVE ANALYSIS CHART

34

Lipton Tapal Other Tea0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

CONCLUSIONLipton yellow label has emerged as a market leader which is due to the marketing strategies it has adopted. It has place the product in a good manner and has set affordable price for it. It uses various strategies for marketing its product. It uses personal selling and telemarketing as its direct marketing strategies. It follows push strategy by selling its product to wholesaler which is then transferred to retailers. It also sells Lipton tea directly to certain retailers. It uses multi strategies for selling its products. It strategies has enabled it for a prosperous future ahead. Overall, Lipton has set a good target market, it is influencing its customers and have made a strong relationship with them.