Lipton a popular brand in Bangladesh History: Lipton was created at the end of the 19th century by a grocer, Sir

Thomas Lipton, in Glasgow, Scotland. In 1893, he established the Thomas J. Lipton Co., a tea packing company with its headquarters and factory in Hoboken, New Jersey. Lipton teas were an immediate success in the US. Thomas Lipton was knighted by Queen Victoria, who made him Sir Thomas Lipton in 1898 at the age of forty-eight. When Sir Thomas Lipton created his company in the late 19th century, he bought his first tea estate in Ceylon. Over a hundred years on, Lipton now possesses thousands of acres of quality tea gardens in East Africa. Building on the experience of over a century in growing and blending tea, Lipton has kept alive Sir's Thomas's love of innovation and expertise. Unsurprisingly, Lipton produces the world's number one tea today. Learn all about Lipton's rich history and expertise. 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 until 1961 when it took the name of Allied Stores. Lipton's became a supermarket chain focused on small towns, before Allied's 1982 acquisition by Argyll Group: the supermarket business was re-branded 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. In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton Partnership, for the marketing of ready to drink (bottled and canned) teas in North America. This was followed in 2003 by a second joint venture, Pepsi-Lipton International (PLI), covering many non-US markets. PLI was expanded in September 2007 to include a number of large European markets. PepsiCo and Unilever each control 50% of the shares of these joint ventures. Due to the 2008 Chinese milk scandal, food giant Unilever started recalling its Lipton milk tea powder in Hong Kong and Macau on 30 September 2008. The tea powder, which used Chinese milk powder as its raw ingredient, was recalled after the company's internal checks found traces of melamine in the powder.

Lipton Tea Sub Brands and Sub criteria available worldwide: Blending tea gives it subtle tones and flavors. In fact, in one Lipton tea bag, there may be as many as 30 different types of teas. Blending tea is an art-form. No two teas are ever the same, even if they're from the same estate. Tea plucked and manufactured on a wet day, for example, is different from that produced on a dry day. As a result, it is not unusual for a tea garden to produce teas of different qualities throughout the course of a single season. Like wine, the quality of tea varies enormously according to country of origin, weather conditions, altitudes and the structure and quality of the soil. At LIPTON, they have a team of fully trained Tea Tasters skilled in the art and science of tea. It is the role of the Tea Taster to make sure teas are blended perfectly to meet our standards of quality. Lipton Yellow Label is blended in specialized tasting rooms in 7 tea blending regional hubs scattered all over the world- by a small group of professional Tea Tasters, who between them have over 150 years of tasting and blending experience. Lipton has invested extensively in tea-based beverage R&D to develop a world class innovation program that is unrivalled in its breadth and scope in the tea industry. Sir Thomas J. Lipton pioneered many practices in tea manufacturing and the company he founded has continued this tradition of quality and innovation. 1890: First manufacturer to buy his own tea estates to ensure quality and consistency. 1890: First manufacturer to sell tea exclusively in packages. 1906: Created first British blend of tea to be imported into Japan. 1910: First to use printed tags with brewing instructions. 1944: Brisk tea launched in US. 1954: LIPTON introduces the Flo-Thru double-chamber teabag 1964: LIPTON Iced tea mix introduced in the US. 1972: LIPTON Iced tea in a can introduced in the US 1992: Pepsi- Cola and LIPTON announce a joint partnership 1999: LIPTON Cold Brew launched in the US, iced tea prepared with real tea in cold water 2000: LIPTON launches pyramid bags in Japan 2001: LIPTON Milk Tea Launched in Hong Kong 2004: LIPTON announces global joint-venture with Pepsi : Pepsi-Lipton International 2006: Launch of LIPTON Linea in France

Lipton only uses the top leaves of the tea plant. These are the youngest, most tender and most flavorful leaves that produce the best, highest-quality cup of tea. But how do you get the best leaves? At Lipton, we grow our own. We have our own tea estates in Kenya and Tanzania. We also conduct extensive research programs at our estates to improve growing and harvesting practices so you enjoy a dependably delicious cup. With our own estates, were able to sustain Sir Thomas Liptons mission of constantly seeking new and improved ways of delivering the best tea experience. We also source teas from as many as 35 countries to ensure a consistent taste and an uninterrupted supply. These teas have to be the best of the best to satisfy our tea experts. More than 100 years of firsts and innovations has enabled Lipton to bring more tea enjoyment to more people in the world than any other tea company. Sir Thomas would be proud. But he wouldn t let us stop here. In that spirit of tireless inventiveness, research and discovery, Lipton is helping to shed more light on the exciting health benefits of brewed black and green tea, in particular their key components such as flavonoids and catechins as well as theanine.

Natural, delicious and refreshing, Lipton tea is a wonderful product designed to fit your healthy lifestyle. The tea leaves are sourced from all over the world and blended expertly so that consumers can enjoy premium tea experience. Whatever tea preferences may be, Lipton features a wide selection of products, including black tea and flavored black tea, green tea, herbal tea and traditional tea with a number of varieties. Possibly the most popular of all Lipton teas, Lipton black tea is rich in protective antioxidants which make it a wonderful choice for your healthy body. Some of the variations of Lipton black tea include Orange Pekoe black tea, available in 16, 48 and 100 Lipton tea bags, as well as ? lb loose tea; Lipton Decaffeinated Hot Tea available in 16,48 and 72 Lipton tea bags; Lipton Cold Brew available in 44 cup size and 22 family size; Lipton Iced Tea with or without lemon available in 24 and 48 Lipton tea bags; and Lipton Decaffeinated Iced Tea with pure spring water. A wonderful pale green color, subtle aroma and delicate taste are characteristic features of Lipton's range of green tea products enjoying wide popularity worldwide. A favorite here is Lipton 100% Natural Green Tea, made of the finest tea leaves from all over the world and available in 20 and 40 Lipton tea bags. Alternatively you may consider Lipton 100% Natural Decaffeinated Green Tea with the naturally decaffeinated tea leaves by using pure water to create wonderful aroma and flavor. Another popular variation, Lipton 100% Natural Decaffeinated Honey Lemon Green Tea is a delicate green tea infused with the blend of lemon and honey and is seen as a great source of healthy antioxidants. It is generally available in 20 Lipton tea bags. Gourmets should definitely take advantage of such specialties as Lipton Cranberry Pomegranate Green Tea, Lipton Lemon Ginseng Green Tea, Lipton Honey Green Tea, Lipton Mixed Berry Green Tea and Lipton Mint Green Tea. Introduced recently, Lipton herbal teas and infusions are made from fruits, herbs, flowers and spices blended in tempting combinations for an aromatic and flavorful cup of tea you can enjoy any time you like. Thus, you can choose from Lipton Lemon Herbal Tea with a taste of lemon and other natural spices and herbs in the refreshing iced tea; Lipton Quietly Chamomile Herbal

Tea made from such natural ingredients as chamomile flowers, rosehips, orange peel, hibiscus flowers, lemon and bergamot and orange flavors that soothe a tired body and mind. Other Lipton herbal tea variations include Lipton Peppermint Herbal Tea, Lipton Cinnamon Apple Herbal Tea, Lipton Honey Lemon Herbal Tea, Lipton Ginger Twist Herbal Tea, Lipton Raspberry Herbal Tea, Lipton Peach Herbal Tea and Lipton Mango Herbal Tea. Known for their generous flavors, Lipton Traditional Teas feature classic black tea blends enjoying great success around the world. Some of the most widely reputed include Lipton English Breakfast, ideal as a morning and an afternoon tea rich in healthy antioxidants; and Lipton Earl Grey Tea made from fine imported black tea leaves and natural bergamot flavor.

The mixes and blends of tea offered by Lipton Globally is shown below: Flavored Black Tea LIPTON Orange & Spice Flavored Black Tea LIPTON Blackberry Flavored Black Tea LIPTON Honey & Lemon Flavored Black Tea LIPTON Spiced Chai Flavored Black Tea LIPTON Raspberry Flavored Black Tea LIPTON French Vanilla Flavored Black Tea Lipton Green Tea LIPTON 100% Natural Decaffeinated Green Tea LIPTON 100% Natural Decaffeinated Honey Lemon Green Tea LIPTON Cranberry Pomegranate Green Tea LIPTON Orange, Passion fruit & Jasmine Green Tea. Lipton Premium Pyramid Tea Bags Bavarian Wild Berry Vanilla Caramel Truffle Red with Strawberry & Passion fruit White with Mango & Peach Green with Mandarin Orange Black Pearl LIPTON Herbal Tea Lemon Quietly Chamomile Cinnamon Apple Orange Peppermint Honey & Lemon Ginger Twist Raspberry Peach Chamomile Mango

Lipton Iced Tea Mix Sweetened Lemon Sweetened Decaf Lemon Sweetened Raspberry Sweetened Peach Sweetened Mango Sweetened Strawberry Kiwi Unsweetened Unsweetened Decaf Lemon Diet Lemon Diet Decaf Lemon Diet Raspberry Diet Peach Lemon Low Calorie Lipton a popular brand in Bangladesh: Celebrating life for over 40 years in Bangladesh and today, a company bringing world class consumer products to millions of people in the country is Unilever Bangladesh. World famous Lipton Tea under Unilever stepped into Bangladesh in the year of 1990 & in the early stages marketed product of Lipton that is Yellow Label Tea Bag packs. In a tea producing country like Bangladesh it wasnt possible for them to survive in the market with the world class imported tea and the reason was the rational behavior of the consumers. In 1992 a sub brand Named Taaza came into the Bangladeshi Tea Market under the name of LIPTON, Which is widely available in the Indian subcontinent zone. Though Lipton Taaza, under Unilever in our country has achieved immense popularity among all groups of people, but this is the only Brand of Unilever with which Unilever is operating in the 2nd position in the Tea market.

History and Overview of Bangladesh Tea Industry: History of Bangladesh Tea Industry dates back to 1840 when a pioneer tea garden was established on the slopes of the hills in Chittagong where the Chittagong Club now stands. First commercial tea garden was established in 1857 at Mulnichera in Sylhet. During the partition in 1947, Bangladesh (the then East Pakistan) owned 103 tea estates, covering 26,734 hectares of tea plantation with annual production of 18.36 M.Kg. with an yield of about 639 Kg. per ha. Home consumption was around 13.64 M. Kg. upto 1955. After that home consumption went up rapidly and Government imposed 3% mandatory extension of tea area per year in 1961. Ten years later by 1970, tea area was extended to 42,658 hectares and production was incrased to 31.38 M.Kg. During liberation war in 1971, our tea industry suffered colossal damages which resulted in poor management, high vacancies, insufficient inputs, dilapidated factory machinery, inadequate maintenance etc. leading to lower yield and poor quality of tea. But the industry soon got a big push on behalf of the government through a massive development program (BTRP-1980-92) with the financial and technical assistance of the British ODA and EEC and production increased to 60.14 million kg. with per/ha. yield of 1150kg. in 2009.

Tea estates are managed by five different categories of managements:

(i)Sterling Companies (ii) National Tea Company (iii) Bangladesh Tea Board (iv) Bangladeshi Private Limited Companies (v) Bangladeshi Proprietors

Management wise Land use & Production (2008)

Category of Management Sterling co. BTB NTC Deshi co. Propriety Total Small Holdings Grand Total 163 No. of Tea Tea Area Grant Area (ha.) Estates (ha.) 28 3 13 61 58 163 39,386.02(34%) 2,559.39(2%) 11,279.95(10%) 40,652.05(35%) 21,656.00(19%) 286.92 20,247.04 1,435.07 5,599.80 17,107.08 9,430.33 286.92 Land Use (%) 51% 56% 50% 42% 44% 46% 100 47% Production (2008) 26,520,787(45%) 1,632,764(3% ) 4,424,755(8%) 17,804,393(30%) 8,074,997(13%) 58,457,696 200,827 58,658,523(100%) Yield (Kg./ha.) 1,310 1,138 790 1,041 856 1,086 699 1,084

115,553.41(100%) 53,819.32 115,820.33(100%) 54,106.24

Marketing of tea is the process of selling manufactured tea in bulk from tea estates to the buyers through Chittagong Auction who sell it in the local market or export it to other countries either in bulk or in packets. Some of the teas are also sold at estate level with prior permission of Bangladesh Tea Board either directly to overseas buyers or to the internal traders. Tea Auction is held on usually every Tuesday at Chittagong, a major port city with sufficient warehouse and port facilities and well connected by road, railways and air. Tea Traders Association of Bangladesh organizes the weekly tea auction in Chittagong through the appointed tea brokers of Bangladesh Tea Board . Export Market: Tea has been one of the major exportable items of Bangladesh since 1971. We had a captive export market in some countries to export tea. The scenario has been changed in recent years because of open market economy, emergence of new entrants in the world market with low priced tea and rapid increase of internal demand. Export of Bangladesh tea in the year 2005 was 9.09 million kg which was 30.66% less than the previous year export of 13.11 million kg. Export earning was 742.62 million taka against 934.04 million taka the previous year. Of the exported quantity 6.57 million kg was sold to Pakistan alone. The Govt. of Pakistan allowed duty free entry of 10.00 million kg of tea per year from Bangladesh since October 2002 and offered to increase the quota up to 15.00 million kg. but Bangladesh could not utilize that quota fully as increasing internal demand pushes the price levels up in the local auction and discourages exports. Other tea producing countries like India, Srilanka, Indonesia, Vietnam, Kenya and some other African countries have relative advantages to supply better quality teas at lower prices that makes export market extremely competitive for Bangladesh Tea.

Export during 200-2009:

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total Export (M.kg) 18.10 12.92 13.65 12.18 13.11 9.09 4.79 10.56 8.39 3.15 Value M.taka M.dollars 1,205.20 20.76 894.99 15.64 939.93 18.28 915.07 15.64 934.04 15.98 742.62 11.26 469.59 6.69 899.01 13.15 976.95 14.29 433.50 6.34

Competitors & Market Scenario in Bangladesh In Bangladesh the main competitors of Lipton are: - Ispahani - HRC - Ceylon - Finley - Tetley Lipton Taaza mainly deals in the Premium tea segment of the National Packet Tea Market. According to the law of local Govt. they buy tea from the Local Tea auction, they blend them into a single standard taste and pack to sell. As far the marketing is concerned in Bangladesh, Lipton of Unilever produces, distributes and promotes only TAAZA sub brand under traditional blend of tea. Currently the TAAZA brand has two sub brand extensions: Taaza Classic & Taaza Jhotpot.

Though Lipton has about 126 different kinds of tea mix and blends worldwide, but in Bangladesh still they are marketing only the traditional blended tea. As they have made the distribution of Lipton Yellow Label Tea bags very selective over the last couple of years because of its decrease in demand. The tea consumption is increasing in Bangladesh every year, but still now Lipton thinks that developing a new product under the strong Lipton brand might still be risky.

Questions:
Q 1. Do you think Lipton is taking the right strategic branding decisions by not introducing any new blend or flavoured tea in Bangladesh? Explain. Q 2. According to you how Lipton can develop their Brand Equity? Advice one new product as line extension for the Bangladesh market that you think is having demand locally from the mixes and blends of tea that has been shown in the case study which is not launched yet in Bangladesh.