Institute of Business & TechnologyProgram: Presented to: M.B.A (Evening) Sir. Ahsan Nawaz Group members: M. Nadeem Baig (BM-25390) M. Ovais Sabir (BM-25386) Yasir Rasheed (BM-25396) By Letter of Transmittal April 19. 2011 Sir Ahsan Nawaz BIZTEK . Sincerely. M. Here is the report you requested entitled “Lipton Tea”. Ovais Sabir Yasir Rasheed M. We feel that this knowledge will be helpful in future work terms. The primary study focused on a Lipton tea company currently operating in the market. along with the recommendation of uses of Tea. Through the course of the term.Respected Sir. Although the import of Tea has increased in recent years. Nadeem Biag Acknowledgement . Recommendation is to exploit the opportunities of self cultivation can be expanded enough to make Pakistan quench the consumer market within the country. The study includes both primary and secondary research. and in our career. we were given the opportunity to learn much about the tea industry and import business in general. Thank you ALLAH for giving us strength.Our heads bow before our first and for most guide. and for impossible. Introduction of company 2. possible for us. the ALMIGHTY ALLAH. Target markets . knowledge and power to stand-up after small failures. who guides us in shaping this report and enhancing our skills for report writing. As best is always saved for the last. our beacon and strength. Table of Content 1. we’ll always be obliged to our dearest teacher Sir Ahsan Nawaz. In 1917. Both companies were competing for the same raw materials. Lever established soap factories around the world. they had operations in over 40 countries. both were involved in large-scale marketing of household products and both used similar distribution channels. Margarine Unie grew through mergers with others margarine companies in the 1920s. Between them. Lever began to diversify into foods.3. Marketing Mix 7. ice cream and canned foods businesses. Product life cycle 8. Branding & Packaging 6. Competitive strategy 5. Recommendation 9. . acquiring fish. and had plantations in many Third World countries. Conclusion Introduction of company Unilever was formed in 1930 when the Dutch margarine company Margarine Unie merged with British soapmaker Lever Brothers. Lever Brothers was founded in 1885 by William Hesketh Lever. Buying behavior 4. SlimFast. Omo. Ben & Jerry’s.However. Iglo. In Lipton we have few variants such as: Lipton Yellow Label pack Lipton Yellow Label Value Pack Lipton Yellow Label Jar Lipton Green Tea Lipton Green Tea Jasmine . Unilever does not retail under its own name. Lipton. and Lever2000? They’re all part of the ‘Unilever armada of brand names’. Advertising has always been a keystone of Unilever’s businesses. in spite of Unilever’s vast size and presence worldwide. To make sure the brand names do not go unnoticed. Lipton Yellow Label is one of the world's great refreshment brands. Who does not know brand names like Magnum. Unilever spends huge amounts of money on marketing and advertising. Dove. Our Assignment Unilever is offering various products with their many variants including food and home and personal care products. Becel. Knorr. Anonymity hides the company’s importance. We selected Lipton Yellow Label as our assignment. the company’s actual visibility is surprisingly low. Unox. preferring brand names to create the illusion of diversity. making a big splash in the global beverages market. this positions on the completeness and togetherness of the family and position Lipton integral part of the Family.it is truly the gold standard in tea. The 100% International Blend . Lipton has countered this competition strategically by creating positioning and brand pull in customers mind so that they have a separate identity of their own. 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 .000 tons. •• Competitive Strategy COMPETITOR’S ANALYSIS The tea industry is divided into two segments.Lipton Green Tea Mint Lipton Green Tea Lemon Lipton Yellow Label Lipton is one of the world's great refreshment brands. . Lipton Yellow Label is definitely a market leader claiming that it is a premium top of the line product with “a sign of good taste”. has been brought to you to provide the finest tea drinking experience.made with one of the best technologies available in the world. The major competitor for Lipton is LIPTON especially as the sales competition from this brand in the tea industry is getting cut throat. The current tea imports are 140. it is the epitome of international quality. Catchy slogans like “HER LAMHAY KI CHAH” for Lipton Yellow Label Tea. Lipton is a clear market follower in all over Pakistan as it caters to all the areas rural and urban alike. They are: ➢ Branded Tea ➢ Unbranded Tea Lipton is facing a tough competition from both the segments as the unbranded tea has almost half the share of the total tea industry. focusing on the free and radiant spirits of the youth which has also been tagged along with “ZINDAGI MAIN BHARO NAYA RANG” is the slogan For Lipton. These steps are: market segmentation.Target Market In order to reach the target market we at LIPTON went through a number of steps to identify the potential customers. market targeting. Segmentation . The target market at the end of the day becomes the most important aspect for LIPTON to target and satisfy the needs and wants in the best possible way yet yielding profits for the company. and market positioning. The whole market segmentation aspect is covered in the following tables which uses the segmenting variables. Demographic: Age Income Social class 5 years and above Rs. Political factors can create advantages and opportunities for organisations. convenience nutrition. Political factors influence organisations in many ways. economy.Geographic: Density Climate Karachi & Lahore Urban Can be taken cold as hot conditions are more prevalent throughout the year. potential user and first time users Macro Environment Political: The first element of a PEST analysis is a study of political factors.& above Upper and upper middle class Psychographics: Life style Personality Value oriented. 000/. Conversely they can . uniqueness and User status Non user. sociable & active Compulsive. health conscious & ambitious Behavioral: Occasion Benefits Regular & special occasion Quality.30. . In order to do this we require a tea manufacturing plant through this modern facility tea is going to be blended and packaged in hygienic conditions untouched by human hands. The rich families are becoming richer and the poor families are becoming poorer thus the economy is becoming more saturated. This technology will help us in keeping the tea fresh and packaging costs economical. the purchasing power of the consumers is increasing. Socio-Cultural Factors: In Pakistan. the concept of tea is that of a hot drink that is served with milk. the life style of the people is improving and thus purchasing power has enhanced. which is taken in the leisure time. On the other hand the product that we intend to introduce is totally on the contrary. Political factors include the following types of instrument: Legislation such as the minimum wage or anti discrimination laws. However due to the overall economic developments. Our product is a strawberry flavored instant tea drink more like a shake served in cans with extra wide straws to enjoy the drink while chewing the tapioca balls that’s not only exciting but a part fun.place obligations and duties on organisations. Technological Environment: We at LIPTON are aiming to provide a high quality LIPTON YELLOW LABEL using the latest technology available. Tea blending and tasting is considered top priority at LIPTON. tariffs or restrictions Tax levies and tax breaks Type of government regime eg communist. democratic. Market regulations Trade agreements. dictatorship Economic Factors: In Pakistan. In order to utilize the latest technology we intend to launch LIPTON YELLOW LABEL in metal free Plastic cans. Lipton’s Packaging . Lipton’s taste is weaker than what the average consumer desires.Branding & Packaging • • • • • • • • • Delivering on Customer Desire Relevance Value Positioning Portfolio Integrated Marketing Activities Management Support Monitoring The desirable taste for tea in Pakistani market. especially in Karachi is strong. Especial attention would be paid to its design. when it was made.Weakness: Showing black tea on the packet while 90% of consumers drink milk-based tea. Packaging: The packaging would be done in yellow and orange colour so as to give effect of rising sun. MARKITING MIX (4 P’s) 1) Product Lipton Yellow Label Tea is a brand extension. The design of the packet would be delicious. The purpose of packaging would be to protect the drink and to attract consumers with the presence of the shiny sun which attracts the consumers that by drink Lipton yellow label tea they start their day with refreshing and full of energy with great thoughts. customers would not have any issues regarding the quality of Lipton Yellow Label Tea. Proposed Can show fresh green leave which May ad nice effect? Can show milk-based tea which the consumer can relate to. Therefore. Branding: LIPTON is already a well established brand in Pakistan. Labeling: The labeling of Lipton Yellow Label Tea would consist of Logo of LIPTON along with the name Yellow Label Tea. It would have Lipton Yellow Label Tea content along with its Date of manufacturing. . Factors which would be involved in setting price are: Costs: Fixed and variable cost would influence the pricing of Lipton Yellow Label Tea Elasticity: Our Tea drink is not considered a luxury product and not an essential food item therefore it has elastic demand a rise in price would cause the demand of Instant tea drink to decrease and a decrease in price would probably lead consumers to buy more. 4) Promotion: .touched by other competitive companies. Factory Distribution canter Retailers Customers 3) Pricing: LIPTON would follow market penetration strategy for its Yellow Label Tea in the beginning. This would be followed in all the cities where Lipton Yellow Label Tea would be launched. Competition: Our Lipton Yellow Label Tea prices may not be affected by competition as Lipton Yellow Label Tea is the innovative product that is uninitiated in Pakistan and a niche that’s un.2) PLACE: After the tea is manufactured it would be send to distribution centers from where it would be distributed to retailers. Local Newspaper expenditure: Rs. constantly innovate and frequently use price-cutting. They also increase communication channels like advertising and sales promotion to entice brand switch. so competing firms in order to gain market share. Ice tea is in its introductory stage.0. account for approx 0. Thus this property will attract health conscious people. it was recently test marketed in Karachi which resulted in a successful response in future it will be coming .2 million for newspaper ads would be placed on Sundays and Saturdays rather than the whole week as it will reach more customers and highest target market.8 million Ads would be placed on different channels to capture larger market and also to inform customers of new trends hitting the tea industry.Budget for Advertising: Promotions through hotels and restaurants: Rs. Billboards and company’s activities together. 0. Green tea has is in the growth stage and we believe that there is a potential for growth given that green tea provides health advantage. Product Life Cycle GREEN TEA ICE BLACK TEA Introduction Decline Growth Maturity Implications The industry is in the maturity stage.5 million in the advertising budget. this does not explain the deceleration in the rate of increase in import. Other facts for import bill to increase are currency devaluation and inflation. and in different quantity (volume) with different prices.3/person (Rs 104/Person) of tea in a year. Conclusion The tea import bill mounts to US-$ 220 million in 2008 and the population is 164 million this implies a US-$ 1. it could offer different types of packaging. However. This is mainly due to the economic boom from 2002 – 2008 where consumer markets have been steadily. what are the needs and changes taking place in market. Recommendations Market: The need is to first develop a segment on the basis of their needs. The import share of tea is 13% from total imports and trend analysis shows in increasing trend. and then focus should spread upon their needs. The consumer market in Pakistan does not have many branded teas (Tapal and Unilever being prominent). The following lists the recommendations for Lipton with regard to: Brand positioning of Lipton iced-teas: As more segments are targeted. Companies have strategically launched different contains a .up with new flavours and has a potential to gain a large market share as soon it is launched nationally. The market is like with the culture indulgence of tea and the brands are exploiting this for their sales campaigns. They should go for market research to change the latest trends and changes in the market segments. Segmentataion: Unilever at this time has segment its market much biger and certain irrelevant portions which are not enough profitable. For example. They should be updated with the latest trends in the market. the product should offer greater flexibility and choice to cater to a wide range within each segment. special place in Pakistani culture so it has a significant impact on bonding families and promoting a non-alcoholic environment. .