SWOT ANALYSIS FOR TETLEY

STRENGTHS

• One the oldest Tea Brand in the World:

Tetley has been around since 1837, and is among the oldest living brands in the
world and has been making tea for more than 160 years.

• Association with TATA Group:

It is owned by TATA Group of Co. which is the largest tea manufacturer and
distributor of tea in the world.

• Pioneers:

Tetley has always been the pioneer in inventing new things when it comes o
tea. Their inventions include the tea bag and the round tea bag.

• Promotional strategies:

Tetley is among those brands that have made a mark in very especially in the
interiors. It battled with players like TAPAL and UNILEVER. I was only possible
because of their strong promotional activities.

• Quality
Quality has always been Tetley’s strong point. The price driven market is now
becoming a little quality conscious and it is helping Tetley’s cause.

• Association with Lakson

It is partly owned by Lakson Pakistan, which deals in many diverse products and
has full experience and knowledge of the Pakistani environment & its
consumers.
WEAKNESSES

• Market share

Out of the total share Tetley has only been able to capture 7% of the national
market. One reason is the fact that they have not entered the metropolis areas
with full force as of now.

• Customer Preference

Due to recent increase in recent tea prices many consumers have shifted to
unrefined tea better known as ‘kholi Chai’ because of the cost factor. Since
most of it is smuggled, so Tetley and other good brands are not able to
compete with them.

• Customer Awareness
Customer Awareness is another issue that the company needs to work on. A lot
people are still unaware that Tetley is available in the urban centers.

• Distribution
Their poor distribution is making matters worse. Tetley is either not available
at the stores, and even if it is there will only be one SKU available per store.

• Advertising

It only advertises in the rural areas and no mentionable efforts have been made
to capture the urban poplation.

THREATS

• Infringements & Copyrights

Everyday a new copy brand comes up with a similar logo, name or color.
Tetley has to continuously look out for these copycats and deal with them.

• Competition

Like any other industry, this industry is also very competitive. Local brands are
also learning the western ways of marketing and are now copying large
multinational’s activities and delivering the same goods at cheaper price.

• Smuggled Tea
No Measures have been taken by the government to stop this act. Smuggled
tea is consumed in the same volume as all the branded tea combined.
• Promotional Activities

Aggressive promotional BTL activities in the area have brought a lot of pressure
on Tetley. They have to come up with the same or better BTL activities to keep
up.

OPPORTUNITIES

• Brand loyalty
Since tea is one of those products which has a low switch over rate and is sold
because of its unique features such as taste color etc. Tetley can use its rich
experience to cater the desired features and capture the market

• Urban market:

The urban market is dominated by two players only. Given tetleys experience,
size and affiliations, Tetley can certainly give these players a hard time if it
fully launches itself in the Urban areas.
BUYER ANALYSIS

Brand Loyalty

Tea is an important part of our daily routine and people do not switch over
their brands very easily. We all are used to the brand we have every morning!
And therefore the users of a specific brand of tea are loyal to their brand and a
little bit change in prices does not encourage them to switch their brand.
However the impact of the prevailing economic conditions cannot be ignored.

Therefore the tea manufacturer companies associate themselves with certain

factors such as color, taste, freshness etc.

Demographics

Tea is not restricted to any specific age group or income group. Pakistanis have
a tradition associated with tea and therefore people from all age groups and
social class are used to having tea. However since the competition is stiff and
penetration in the urban markets is difficult Tetley has ventured into the
interior Sindh. The dynamics in the rural areas are very different from the
urban centre and this needs to be considered when the message strategy is
being designed and executed.

Consumer awareness

The consumer is aware of the various brands available in the market and the
different kinds of strategies used by them. But even then the consumer remains
loyal to the brand they use. The main reasons for this loyalty is the taste, the
rejuvenating effect, the quantity used in making tea and quality of the tea.

The most important factor in making a purchase decision of tea is its taste and
the price. The consumer is very much reluctant to try other brands and is loyal
to their own brands.

Factors related to Consumer Behavior:-

o Taste is the most important factor. People generally prefer a strong

taste when it comes to tea in the morning.
 o Consumer prefers tea which has a strong taste but is used less in
quantity.

o Price is also an important factor for tea; little bit variation in price does
not result in changing of brand.

o Availability is a big concern, if the consumer like a certain brand but it is

not available then the consumer is forced to switch to another brand.

o Promotional campaigns are also important as it increases the brand

recall and can help to develop a positive image of itself in the
consumer’s mind.

o Tea is a low involvement product. The consumer does not really

evaluate his decision the only factor which instigates the purchase
decision in the likeability factor.

Who buys the product?

As per the features of Tetley, it is purchased by the social class C, C+ and these
people are influenced by prices as well. But in case of tea price and taste are
equal motivating factors.
MARKET SEGMENTATION

Target Market

Target market for the Tea industry is widespread all over Pakistan. But the
target market for Tetley is the people in the rural areas and of the social
economic class C and C+.

Tetley has kept its focus on the people in the regional areas and is trying to
fulfill their needs. Tetley has some distinguished features to attract its target
market. Firstly the reuseability factor. Tetley tea can be reused after its first
use and this makes it cost effective for the lower class. A market opportunity
that can be ventured into are the restaurant owners commonly known as
dhabba walas by highlighting the reusability of Tetley Dust.

The tea industry is over crowded with brands manufacturing tea and promoting
their product widely. Moreover the local brands such as Tapal have captured
the market to a greater extent.

Market Segmentation Basis

Market segmentation is done on the basis of:

o Demographics

o Use-Related

o Situation related

o Benefit

Demographics
Age
Tea manufacturers basically try to cater and convince the lady of the house.
The home maker women is the one who needs to get cent percent convinced.
The rest of the family does not have a lot of say when it comes to make a
purchase decision of tea. As it is a low involvement product.

Education
There is no criterion for education. Anyone and everyone can buy the tea they
like and there is no requirement for education.

Income

Tea is a product which is used by all social classes. People belonging to the
upper classes also have tea and so is the lower class. In fact the people from
the lower class consume more tea as they at times have it as a replacement for
meal accompanied by some biscuits or rusks. Tetley is an affordable brand and
its target market is also social class C and C+. Furthermore Tetley is also
available in sachet packs. This is an add-on factor for the lower class.

Use Situation

Tea is widely consumed in Pakistan. We have lots of traditions attached with

our custom of serving tea. Pakistani nation is which respects its guests a lot and
for this they always serve them tea. Tea is used in our daily lives for instance
at the breakfast table when the entire family is leaving for their respective
work, then in the office, in the evening at home and so on and so forth. We
have tried to highlight these usages in our advertisement by using the slice of
life technique. (REFER TO THE SCENE BY SCENE DETAIL OF THE TETLEY
ADVERTISEMENT)

Use Related

Tetley is a high quality product. The key factors about Tetley includes that it is
used in less quality while making tea but has a strong taste which is liked by
everyone. Then another important factor related to the usage of Tetley is that
it can be reused. Tetley has a unique feature that it can be reused after its
first use and therefore it can be marketed in a way the it becomes widely used
by dhabba owners in the interior Sindh as it contributes to their profitablity
profit.

BENEFIT

Tetley gives a lot of benefit to its consumers. As mentioned earlier it is a high

quality product which provides benefit to its consumers with the re use ability
factor. Moreover its reasonable price also provides benefit to the consumer.
Then the strong taste is also beneficial for the consumer as less amount of tea
is used.
Goals

Tetley has an aim to gain a reasonably high market share in its target market
that is the social class C and C+.

Tetley aims to become a product of the masses such as it should be used by all
the hardworking people such as farmers and laborers. So that they become
fresh and all ready to start their work again after having a strong cup of Tetley.
Then at home, where people have tea in the morning and then in th evening as
a routine in order to stay fresh and alert.

Tetley is also very traditional and therefore aims to be presented to guests and
want to help in making the connections more strong. Tetley wishes to become
a mehman nawaz brand.

Selection of Goals

o It should be used by home maker women with the insight that it makes
connections “Rishtey jorey”

o It should be presented to guests and with the insight that it brings

respect and honour to the family and maintains the tradition of “
mehman nawazi”

o It should be used by shopkeepers to entertain their valued customers

with the insight that it builds trust “ aitebar”

o It should be used as a beverage that refreshes after a hard day of

“tazadum karey”

Positive Motivation

Tetley has never done a lot of advertisement for its brand and therefore has a
very low recall. They have just made two advertisements for its brand and that
also years ago. So in our ad we have an aim to portray a positive image of our
product. In our ad we are using the slice of life approach in order to convince
the people that Tetley is a brand of the masses.
Rational vs. Emotional Motives

The rational motives are in terms of highlighting the superior quality of Tetley
with its unique and strong taste and this taste adds value to our day to day life.
However the advertisement is full of emotional appeals. The scene by scene
description will prove this statement. We want to make it evident in the minds
of the consumer that Tetley is a brand designed keeping in the mind their
needs and suits them really well. We are showing ordinary people and their
ordinary lives and the role Tetley plays in it.

Success and Failure Influence

We are very much positive about the fact that this promotional activity will
work as planned. We are sure that it will be able to make a place for it in the
minds of its target audience. Tetley has never done this ever since it has been
launched. Therefore it has a very low recall in the minds of its target audience.
This promotional activity is intended to do this only. It will be backed up by
other advertisements also. The success influence of Tetley will be such that the
target audience will not only recognize the brand but will also realize the
impact it can have on their daily lives.

Substitute Goals

Tea is a low involvement product but even then it takes a lot for a consumer to
switch its brand. Tea lovers are said to be loyal to the brand they use. This is
because people are familiar and accustomed of using one specific brand and
are used to of its taste and quality and very much reluctant of switching their
brand. Therefore it would not be wrong if I say that tea users are loyal to their
brand.

So Tetley will have to convince them to try it and with its quality and taste
only it can force them to switch their brand. Price is another factor as for
lower income group price makes the consumer more loyal.

Arousal of Motives

Having a cup of tea needs no motive or reason. People have on average more
than three cups of tea every day. Having a cup of tea in the morning is a must
and then in the evening. Also at work or whenever we have any guests over. So
no reason is needed to have a cup of tea.

With our advertisements we intend to develop a desire a need in the minds of

the target audience that they should try Tetley at least once. So the first ad is
based on the slice of life theme just to place the product in the mind of the
consumer. In the later ads we will highlight its other benefits such as the re use
ability one and then the superior quality and taste.

Maslow’s Needs

Tea and the Tetley tea fit into the Basic needs on the Maslow’s hierarchy of
needs. It is obvious as we have tea on daily basis and in some cases people
have their meals with tea.

Attitude Formation of Tetley

The marketers are trying to give Tetley an attitude of the masses. It is a low
involvement product and a certain kind of attitude is already formulated in tea
industry. We on the other hand wants a depict a picture of Tetley in such a way
that the target audience relate themselves to it. With this intention we will
make all our ads. That is we will highlight situations with which the target
audience is acquainted such as usage at home, usage at work or when guests
come over. We all want to show that Tetley makes connections stronger and
leave a long lasting impact.

Consistency of Attitudes

As mentioned above that specific attitude will always be present in the ads to
follow up the first ad. But in the upcoming ads we will also highlight the
benefits of the product such as its taste, the rejuvenating effect, quality,
price, packaging and also the re use ability factor.

Personality and Consumer Behavior

Every individual and has different personality and different behavior

characteristics. Brand personality also differs and is very important for the
brand. Tetley has never tried to make a brand personality of its own. But this
time our entire promotional campaign is divided in to steps and aims to create
a image for Tetley. In our first ad we are only trying to place the brand in the
minds of the target audience as a brand for the masses. We are showing
different sequences which are only designed to highlight the fact that Tetley is
a part of our daily life. We want the masses to feel that Tetley is one of them
and understands their needs very well.

Consumer Perception

When it comes to the perception of the consumer they give the maximum
importance to taste. They also prefer high quality and a reasonable price.
Tetley fulfills all of these criteria very well but the only field where it lacks is
its promotion. Tetley needs to work on its promotional strategy that is all
otherwise it does meet the perception of the consumer.

The dimensions are:

o Taste

o Quality

o Price

o Packaging

With effective promotion Tetley can easily gain the desired market share as it
does meet all the requirements which a tea brand should meet up but the
problem is with the brand recall. Because of the lack of communication the
consumer is not aware of the brand and so as a result the purchase decision is
effective.
COMPETITIVE REVIEW
Pakistan is the third largest tea importer in the world and consumes 155 million
kg every year. This shows the love for tea in our nation. Tetley occupies a
share of 12% in the Pakistani tea market.

Tetley’s competitors include:-

 Unbranded Tea

 Tapal

 Unilever - Lipton and Supreme

 Vital

Unbranded Tea

Our target audience includes the social class C and C+ and such people are not
at all brand conscious. They purchase a brand which suits their pocket and
deliver high quality. They think wisely before spending. Such people or such
targeted audience in our country huge eely prefer loose or unbranded tea. All
that matters to them is taste, quality and quantity. They are not brand
conscious neither they are hygiene freaks. Packaging does not really attract
them. Therefore unbranded tea occupies the largest share. This is because no
extra money is spent on the packaging this reduces its cost and helps to
increase its market share.

Tapal

Tapal is a local brand and alone occupies a share of 21 %. They have excellent
promotional strategies and an highly effective distribution network. People all
over the country consume this brand and are loyal to it. The brand has tried to
make an association with the red color and has been successful to a great
extent. Tapal is a success story and undoubtedly a leading brand amongst the
masses. Tapal Tea (Pvt) Ltd ’s presence stretches beyond Pakistan, reaching
Middle Eastern countries, including UAE and Saudi Arabia, where its products
are sold under the Tapal Middle East subsidiary. It also sells products in North
America. It has a wide local reach, selling its products in all cities and rural
areas of Pakistan. It has has well over 400 distributors in Pakistan and they are
monitored on a continuous basis by its personnel. Tapal imports tea leaves
from Kenya and other countries and blends them at its plants in Karachi and
Shinkiari in the north of Pakistan. The company does not manufacture brands
for any third party or private label and exports tea to the Middle East and
North America.

Lipton

Lipton is a brand by a giant company. Excessive promotion, excellent

distribution network and superior quality have helped Lipton to reach new
heights. Lipton with slogan “Lipton tea can do that” is very popular. Its tea
bags are widely used in offices. And the unique feature that the highlight in the
advertisements of tea bag is excellent, that with every dip the tea becomes
stronger and stronger.
Then the new campaign which says that “chai ho tou strong ho” is also a great
initiative.

Supreme

Supreme is also a brand by Unilever but this one is with a local taste. By this I
mean that they highlight the Pakistani style and traditions in their
advertisements. They claim to bring families closer with its rich taste and
tradition. And this is what they show in their ad that is family bonding. Their
slogan “yehi tou hai who apna pan” did wonders for them .They in their
advertisements highlight the fact that they use larger leaves while making tea
which helps them to bring to us a cup of tea with rich taste and color.

Vital

Vital is a brand of Eastern products Pvt.Ltd. Eastern Products processes,

packages and markets Pakistan’s Tea specialties. It was formed in 1991 as a
small tea factory that grew into a local giant on the bane of a single promise
consistent quality. At the core of the group’s success is the sincerity and
dedication of its team of highly qualified technical, financial and marketing
expert. Vital has evolved as an increasingly popular brand in the Rural areas