MARKETING THEORIES

AND PRACTICES
Submitted to: Madam Ayesha Pervaiz
Group Members
Asad Ali Zahid
Fahd Naveed
Marvi Ashok
Marvi Sohail
Saad Kazim
Khurram Rehman Alvi

MBA 2K13 -A

EXECUTIVE SUMMARY

The proposed project report is the marketing plan for Tapal Danedar
Envelope teabags. Enveloped tea bags are introduced first time in the
Pakistans market by Tapal. The unique selling proposition of envelope
teabags is their ability to retain freshness and smell while providing optimum
taste and aroma. It also has the unique qualities of being staple free and
microwave friendly. Tapal Danedar envelope tea bag was introduced in the
market 4 months ago with its tagline, King of teabags however, Tapal, not
being able to effectively create awareness amongst target market is the
major issue. Apart from that the content of their advertisements and the
promotional campaign not being in-line with the concept of King of teabags
is what we have focused on this report. The report consists of the detailed
marketing plan.

Table of Contents

EXECUTIVE SUMMARY................................................................................................. 1
1.

COMPANY INTRODUCTION AND PROBLEM IDENTIFICATION..................................5

1.1 Products............................................................................................................ 5
1.2 Tapal tea bags................................................................................................... 6
1.3 Unique Selling Preposition (USP).......................................................................6
1.4 Problem identification........................................................................................ 7
1.5 Market Share..................................................................................................... 8
1.6 Sales.................................................................................................................. 8

2. SITUATION ANALYSIS............................................................................................... 9
2.1 EXTERNAL ENVIRONMENT................................................................................. 9
2.1.1Category Analysis......................................................................................... 9
2.1.2 Competitors Analysis................................................................................ 13
2.2 INTERNAL ANALYSIS............................................................................................ 19
2.2.1 Company Resources..................................................................................... 20
2.2.2 Current Market Strategy............................................................................... 20
2.2.3 Competitive Advantage................................................................................22
2.2.4 Other Products............................................................................................. 22
3. MARKETING OPPORTUNITY ANALYSIS....................................................................22
3.1 Customer Analysis........................................................................................... 22
3.1.1 Existing Customer Analysis..........................................................................23
3.1.2 Potential Customer Segments......................................................................25
4. Research Findings and Analysis............................................................................28
4.1 Primary Research Analysis.............................................................................. 28
4.2 Retailer Questionnaire Analysis (Aattached- exhibit B)...................................39
4.3 Taste Testing.................................................................................................... 40
5. SUGGESTED OBJECTIVES...................................................................................... 42
5.1 Financial Objectives......................................................................................... 42
5.2 Management/ Personnel..................................................................................42
5.3 Production....................................................................................................... 43
5.4 Marketing........................................................................................................ 43
5.4.1 Product/ services....................................................................................... 43
5.4.2 Sales......................................................................................................... 44
5.4.3 Pricing....................................................................................................... 44

5.4.4 Adverting................................................................................................... 44
6. SUGGESTED STRATEGIES..................................................................................... 44
6.1 Product............................................................................................................ 44
6.2 Place................................................................................................................ 47
6.3 Promotion........................................................................................................ 48
6.4 Pricing............................................................................................................. 51
6.5 People............................................................................................................. 51
7. PROJECTIONS........................................................................................................ 52
7.1 Anticipated costs............................................................................................. 52
7.2 Expected Results............................................................................................. 54
ATAR (Awareness, Trial, Availability, Repeat) Model...........................................54
8. CONCLUSION........................................................................................................ 55
Exhibit A - CONSUMERS QUESTIONNAIRE.................................................................56
Exhibit B - RETAILERS QUESTIONNAIRE....................................................................60
EXHIBIT 3: PRINT AD................................................................................................. 62

1. COMPANY INTRODUCTION AND PROBLEM

IDENTIFICATION

Tapal tea is an international beverage that is enjoyed by people worldwide.

Having over 62 years of experience, it has been offering some world-class
brands which are savored by people around the globe. Tapal Danedar, the
flagship brand of the company and also one of the biggest multinational
brands of Pakistan, caters to diverse income segments including single
sachet users to large households.

1.1 Products
Tapal brands include wide array of tea products, namely

Tapal Mixture
Tapal Tea bags
Mezban
Green Tea
Tapal Special etc

Tapal tea is a nation-wide market leader. Lipton and Supreme, brands of

Unilever (also competitor of Tapal) have been the market leaders till 2009,
however, now they are considered to be the followers of Tapal.

1.2 Tapal tea bags

The product line of Tapal that we would be focusing on is the teabag
category, which includes Danedar Round Teabag and Danedar Envelope
teabag. The product of our concern for this marketing plan is the Danedar
Envelope teabag King of teabags
The company has introduced the enveloped teabags for the first time in
Pakistan. The product has been available in the market since last 5 months
and was placed at some of the renowned departmental stores at the time of
the launch.
Target Market: The product caters to a niche pure tea lovers and targets
the upper middle class.

1.3 Unique Selling Preposition (USP)

i) Hermetically sealed envelope
These teabags are hermetically sealed which protects it from moisture and
oxygen transmission resulting in preserving better flavor and long lasting
freshness. The teabag in sealed envelope protects it from dust as well.
ii) Aromatic tea
The superior quality of Tapal teabags ensures strong aroma which provides a
refreshing experience to tea lovers along with superior taste
iii) Staple Free and microwave friendly
Tapal has introduced staple free teabags, which are microwave friendly.
Staple free teabags provide ease of making tea instantly in microwaves
without any electrical hazards. In addition these tea bags are completely
decomposed leaving no waste behind.

1.4 Problem identification

Danedar Envelope teabags major problem lies with the products positioning
and promotion.
The company has not been able to effectively create awareness amongst
target market about the USP of product. During the launch advertisement
campaign company heavily focused on the core values of company and its
traditional customer base, this suppressed the visibility of the product in the
Ads
Ads were not able to differentiate the product from other products (teabags)
as a premium product. The existing campaign/ad was not supportive of the
whole concept of king of teabags. Moreover, the time span for which the
TVC campaign of this product was on air was very less; the advertisement

was played merely 4-5 times and was never seen again on television. No
promotion whatsoever was done apart from the TVC campaign.
These problems will basically translate into our marketing research
objectives:

To find out the extent to which consumers are aware of Tapal Envelope

teabags.
To gauge consumers opinion regarding this particular product, through

survey or test marketing

To propose new strategies or ways through which we can solve the
marketing problem.

1.5 Market Share

Overall Tapal is the market leader in the Tea Industry, but currently it holds
only 10% of market share in the northern region in black tea bags. Although
their green tea bag share is over 80%, the aim of introducing the envelop tea
bags was to increase their share within the black tea bags in the northern
region in particular, along with urban centers such as Lahore and Karachi.
However, it has failed to capture the market it was expected to. The sales
have gone up but the envelop tea bags have cannibalized Tapals other black
tea bags, while only capturing a small proportion of market share from their
competitors. The growth has not matched the expectations.

1.6 Sales
Tapal leads its competitors in terms of sales volume; however, its revenues
are still less than that of Lipton (its main competitor). This is primarily due to
Tapals products being priced slightly below that of Lipton and their small

share in more lucrative tea bags market. Following figures show the huge
discrepancy between the tea bag sales volume of Lipton and Tapal.

Tea bag Sales/

Lipton

Tapal

3,000 tonnes

200 tonnes

Year

2. SITUATION ANALYSIS
2.1 EXTERNAL ENVIRONMENT
2.1.1Category Analysis
To account for the ever growing demand of tea, the trends that are being
followed by the supermarkets are changing. The tea and coffee section
occupy more space and have more devoted shelves and this trend seems to
be growing drastically. The competitive offerings have also stretched in both
size and numbers as the new tea brands and companies come into
marketplace. Promotional offers are also witnessed at superstores on various
tea brands. Local as well as international companies are competing to grab
an increasing market share.
Market has witnessed the tea in various forms apart from traditional tea,
which include herbal teas, specialty tea, ready to drink tea and green tea.
These products are available in varying convenient packagings depending
upon their shapes and sizes, which are made keeping in mind the
requirement of the target market.
The consumption of tea is not limited to supermarkets and retailing business,
the tea consumption has bypassed all barriers and is available in variety of
non-traditional outlets such as offices, convenience stores, gas marts,
vending sector and foodservice sector.

Another reason to ever growing tea demand can be attributed to strong

marketing campaigns, in which companies invest heavily. Companies follow
various marketing strategies which also include various Ads on television and
endorsement from Celebrities. This creates awareness among the consumers
which are the potential market for tea producers
Recent Scientific research has highlighted the health benefits of tea; this has
allowed the tea producers to uniquely position the tea in the market to attain
maximum benefits. Tea industry has grown at a much greater pace and is
amongst the fastest growing industry in recent years.
2.1.1a Market
Pakistan has a long tradition of tea drinking that has now become an integral
part of the countrys social life. Pakistanis consume about 170 million kilos of
tea annually. In Pakistan, tea is considered a food-staple. The annual per
capita consumption of tea in Pakistan is about 1 kg. Pakistan is the 3rd
largest importer of tea after England and Russia and the consumption is
increasing day by day with the increase in population.
Kenya is the largest exporter of black tea to Pakistan, with a 55 percent
share in that market, while China is the largest seller of green tea in
Pakistan, claiming a 100 percent share. In addition, Pakistan is importing
black tea from nineteen different tea-producing countries of the world.
While understanding the potential and conservation of valuable foreign
exchange expended on imported tea, government of Pakistan created a
special corporation in 1973 and started a project called "Research and
Introduction of Tea in Pakistan. Studies of the prospective tea growing areas
were conducted in collaboration with experts from China. Based on topology,
climatic data and soil suitable areas were identified in the country. Tea
Research

Station

was

established

with

technical

assistance Pakistan

Agricultural Research Council (PARC), Islamabad. The first black tea

processing plant with the capacity of one ton made tea per day was
established at NTRI by PARC with the technical assistance of Chinese
Engineers during 2001.
Tea consumption in Pakistan is expected to grow at a constant rate in future.
The companies are likely to increase their reach to rural areas to enhance
growth. Strong distribution, effective advertisements are the requirement of
companies to stay competitive in the market.
2.1.1.b Political/Legal
A countrys political environment is a harbinger of a strong economy. Sadly,
Pakistans political environment happens to be very weak and unstable and
therefore is reflected in the growth rates of all industries. The tea industry is
no exception. According to a report of 2013, Pakistan has been the third
largest importer of tea and has been importing both black and green tea
from 21 different countries and there is a market of about 170 million kg for
black tea.
The Pakistan tea association claims to encourage tea imports in the country
however there has been a significant reduction in the sales tax from 16%
down to 5% on import of black tea in order to stop illegal supply of tea. This
will automatically cause the prices to fall as well which would be quite a relief
for everyone. The reduction in sales taxes has also boosted the exports as
per the report. So far, the anti-dumping regulations of the WTO are the only
actions that can be enforced. Nevertheless, these are hard to prove and the
real issue is smuggling, which is already outlawed by the international
community In addition to this, quotas and trade barriers, import duties and
taxes all have an effect on this industry and hence need to be taken into
consideration.
2.1.1.c Economic
As mentioned before, illegal tea importing has hurt a lot of local suppliers
and has hindered the growth of tea industry. The level of inflation is an

important consideration while making pricing decisions. Inflation has actually

shown a gradual reduction over July 2012 January 2014. The inflation rate
in Pakistan was recorded at 8.53 percent in March of 2014. High levels of
inflation cause the tax rates to increase and make importing tea quite
expensive. In such a situation, even if the labor cost is low, a lot of money is
still required for investment into training the workforce. The global economic
recession has also well played its role in slowing down the growth of
industries
2.1.1.d Social
The social factors and psychographics are changing and have a direct impact
on any business. In Pakistan tea has always been a popular beverage but
there has been an increasing need for segmentation and accurate
positioning because of the changing lifestyles and demographics. People are
becoming more and more specific and todays customer is more aware than
ever of her/his requirements. Word of mouth has an ever increasing impact
on a brands image nowadays as people are finding new and faster ways to
interact and exchange opinions.
2.1.1.e Technological
The recent surge in internet usage has given birth to hundreds of thousands
of virtual communities online. User opinion is becoming a valuable and
impactful factor in decision making and hence, can make or break you.
Smart marketers find ways to use technology to the best of their advantage.
Besides the marketing side, technology has also had its impact on
productions and operations. Tapal already has state of the art equipment in
place and has an impressive production facility which helps in delivering a
product that is superior in quality.
2.1.1.f Environmental
Tea production does not have any significant environmental considerations. It
is not very detrimental to the environment as a lot of raw material being

used is biodegradable though one noticeable thing is the effect of

deforestation on the growth of tea leaves which is very alarming because if
deforestation continues at its current rate it could eliminate this important
segment altogether.
2.1.2 Competitors Analysis
Tapal has a number of competitors, which have increased over the past
number of years with emergence of brands such as Vital tea and Tetley.
However, Lipton remains the main competitor for Tapal. In the following
sections we will analyze each of Tapals competitors.
2.1.2.a Lipton
Lipton, a direct competitor of Tapal, has been established for more than 100
years now and is available in more than 100 countries due to its association
with Unilever.
Mission statement

To meets the everyday needs ofpeople everywhere to anticipate the

aspiration of our consumers and customers to respond creatively and
competitively with products which raises the quality of life.
Product

The portfolio of Lipton tea consists of the following

Lipton
Lipton
Lipton
Lipton
Lipton
Lipton
Lipton
Lipton

black tea
tea and honey
Green tea
herbal tea
Iced tea
K-Cup Pack
black tea bags
flavored tea

It provides a vast array of tea-based drinks ranging from ice tea soft drink,
black tea to a healthier category like green tea. Within the above mentioned
tea products, there are sub-categories as well pertaining to various flavor,

aroma and taste. Also, Liptons black tea captures a huge market share i.e.
90%.
Price

The products of Lipton are costly as compared to Tapal. As far as the cost is
concerned, Liptons one packet costs Rs. 600-700 per kg and the sales
margin they get from this category is around 200% which is why they are
focusing on tea bags a lot. (Source: Interview with Zonal Manager, Tapal and
former General Manager, Lipton, Unilever)
Place

Lipton has 650 distribution offices across Pakistan and it is available in

almost all big superstores but talking specifically about the teabags, Lipton
tea bags are not available in all outlets. Even in universities, one will find the
increased usage of Tapal tea bags. However, Lipton Yellow Label Danedar is
known for its distribution network.

Promotion

Lipton Tea uses various promotional techniques at different times of the year;
it makes use of TV ads, advertisements in magazines and also social media
such as facebook.
Strategies followed by Lipton

Currently Lipton is focusing on product development; introducing new

products time to time in order to expand its customer base, it also introduced
new flavors in Lipton iced tea as well as in honey and green tea.

Positioning of Lipton

Positioning basically relates to creating a unique image and strengthening

the position of the product/brand in the minds of consumer. The main
product i.e. Lipton Yellow Label has positioned itself in its customers mind as

Refreshing
Quality product
Through slogan
Taste
Active
Color

Target Market

Lipton basically targets the urban areas and has focused on upper and
middle class; Lipton Yellow Label teabags are targeted towards the upper
class whereas the jars or the soft packs are targeted towards middle class.
Lipton targets those people who are young, trendy and cosmopolitan.

Strengths and weakness

Strengths

Weakness

Highly innovative

Distribution weaker in some

Quality

and

wide

array

areas like Sindh

of High price

products/brand portfolio
Strong brand image
Strong

base

and

quality

management
Sound financial position
Increased
black tea

market

share

in

In the Northern region and NWFP, Lipton is the leader. Lipton is ahead of
Tapal in terms of revenue (sales margin); their tea bags category contributes
around 30-35% of sales. Their marketing is very strong; around 50% of their
ads are tea bags focused.
It sells 1500 tons of tea bags nationally. Last year, Unilevers sales volume
was 33,000 tons out of which they sold 1500 tons of tea bags.
2.1.2.b Brooke Bond Supreme
Brooke Bond Supreme enjoyed the position as a market leader in tea
category in Pakistan for many years. However, in 2013, Tapal took over the
top market share position posing a major threat to Supreme, Lipton and
other brands in tea category. Supreme repositioned itself as a tea for health
conscious people. Its unique selling proposition is that Supreme enhances
immunity.

Current Positioning Strategy

Tea has always been considered a product which is easy to make and for
everyone to drink in Pakistan. However, certain ideas still prevail in the
country that tea is harmful for health, darkens skin, a source of acidity and
dehydrates a person. Supreme viewed this threat as an opportunity to relaunch the brand and position itself as a healthy tea for the whole family.
Supreme is the first one to market itself as a healthy tea in black tea market.
The response from market has been very favorable as in 2012; the company
declared a growth in double figures (around 13%).
Competitive Advantage

Supreme, just like Lipton, has a competitive advantage of marketing, due to

which the company was successfully able to re-launch the brand and it has
always helped in enhancing product visibility. One of the strengths of the
brand is its packaging. Supreme packaging is not only attractive; it is the

pioneer of loose tea packing in the country. The product is also rich in aroma
and taste. If marketed properly, it can easily take over the market leader
position again.
Weaknesses

Since Unilever has two major tea brands to focus, Supreme may not get as
much funding and attention with Lipton as it would have gotten if it were the
only tea brand of the company. One of the recent problems with the brand is
that the frequency of TV advertisements has been reduced. One reason
could be that Unilever management wants to focus more on Lipton than
Supreme.
Resources

Brooke Bond Supreme has the financial and expert managerial backing of
Unilever Pakistan. The brand rarely faces production problems. Financially
the company is very stable and is one of the strongest companies in the tea
category.

The

management

of

the

company

is

very

qualified

and

experienced. Unilever is known to attract the best of talent as well as

managerial level executives for employment opportunities in the company.
2.1.2.c Vital Tea
Strengths

One of major strengths of Vital tea is that it is local brand. It was established
in 1991, therefore it has beena player in Pakistans tea market for long
enough to know the dynamics of the market. Therefore, it decided position
Vital tea as an urban tea brand and come into direct competition with bigger
players such as Lipton and Tapal.
The image and the market share of Vital is growing and is therefore now
considered a competitor to Tapal. It is also offering quality tea but at a much
lower price compared to established brands.

Weaknesses

Lack of advertisement/marketing is one of the key areas where Vital tea

lacks. However, weak distribution network is probably their biggest concern
as they have not been able to reach out to its potential target market. It is
also struggling to shrug off its brand image of a rural brand.
Competitive Advantage:

Vital Tea has developed a state of the art facility with increased focus on
quality. They are now able to manufacture high quality tea while charging
lower prices.
How is Vital Tea a threat to Tapal

Vital Tea has only recently moved into the urban market. Their tea bags can
be considered at an infancy stage. However, due to their growing market
share in the urban centers, it is likely that they would be able to penetrate
the tea bag market as well. Therefore, the do pose a threat to Tapal and can
be considered as an upcoming competitor.

2.1.2.d Alokozay
The Alokozay Group of Companies (AGC) is a leading ISO certified
multinational FMCG company with its headquarters in Dubai, UAE and having
its presence in over 40 countries with an extensive distribution network in
Middle East, Central Asia, Asia, Europe, Africa and North America. Although,
it does not have formal distribution channels in Pakistan as yet, but due to its
variety of flavors, its gaining consumer interest.
Current Positioning Strategy: Alokozay is being imported by local distributers
in very limited volume and is only available in major cities.
Strengths

Various Flavors
Premium products

Weaknesses

Hasnt been introduced in the Pakistani market officially.

Not marketed/advertised

Competitive advantage

Its variety of flavors can be its competitive advantage but the company itself
hasnt shown any intent to penetrate in to Pakistani market.
2.1.2.e Tetley
Company Resources and Introduction: Tetley is one of the brands of Tata
Global Beverages Ltd. A truly global brand, enjoyed in 70 countries and
available in a variety of formats from the drawstring tea bag to packet tea,
Tetley offers consumers an ever widening range of new and exciting teas to
suit all possible tea moments. As far as Pakistan is concerned, Tetley has
kept its focus on just black tea.
Strengths

Strong premium tea

Parent company backing and ease of launching other varieties of tea

Weakness

Only focusing on black tea

Not marketed properly

Competitive advantage

The parent company itself has a strong potential to penetrate into Pakistani
market but after the first introduction, the product hasnt been marketed
properly, which is the reason why it hasnt been able to grab the market
share.

2.2 INTERNAL ANALYSIS

2.2.1 Company Resources
Tapal has no financial problems and they are equally as competitive as Lipton
whenever they need to deploy resources for sustainability and growth

purposes. The company faces no financial hurdles in production and

promotion of its products. It has two plants in Lahore and Karachi. Tapal has
not been short of supply for its stock over so many years. This consistency in
production also indicates how financially stable is the company.
The personnel and management are very competent. Tapals team all over
the country is very dedicated and committed. They have strong ethical
values. Marketing has been very effective over decades and this is the
reason why Tapal has overtaken Lipton to become the market leader in
branded tea category. However, Lipton still markets its products effectively
which do not posses very high quality. So, Tapal has to work on its marketing
more by hiring the best and the most diverse creative talent available in the
country.
The companys HR policies are very flexible. However, the compensation/
salaries offered by Lipton to its employees are better than those offered by
Tapal to its employees. For that reason, Lipton is the first choice for
applicants once they apply for a job. Lipton has better employer brand image
than any other company in Tea segment.

2.2.2 Current Market Strategy

The targeted positioning of enveloped tea bag is that it makes the most
superior quality and strong tea, with all the freshness retained. It is marketed
as the most superior tea bag which is high in quality, aroma and freshness
and is also microwave friendly (staple free) for on the go consumers who
have little or no time to wait for water to boil in order to make tea in offices
and homes. Since tea is best made when grains or tea bags are added in the
boiling water, King of Tea bags has all the essentials to be marketed as the
most superior brand in the tea bags category. The company is charging
premium price for enveloped tea bag product.

Presently, Tapal is doing little in terms of marketing the King of Tea Bags. TV
advertisements

are

not

played

anymore.

The

only

promotion

in

Islamabad/Rawalpindi market is being done through distribution channels.

The companys sales team is ensuring the product availability in most of the
big stores. Shelf spacing, brochures, posters and other below the line
marketing tools are used to promote the product. Extensive marketing has
been put on hold by the company. The company is not even using stalls and
trials to generate awareness about the product.
The sales team of Islamabad/Rawalpindi region expects rigorous marketing in
the near future to penetrate the brand in the market. The company aims to
make this brand the market leader in the tea bag category. The ultimate aim
is to take the regular Tapal tea bags off the market once the enveloped tea
bags brands become the market leader. Tea bag market has a lot of potential
as Tapal has only about 8% market share in this category, while Lipton has
almost 90% of the share. So, not only tea bags offer more profit margins for
the company, the market has a big gap to cover and a big player could make
its place in this segment because the market has only 3 major players, out of
which only one has been really successful.
This year, Tapal expects to sell 200 tons of tea bags while Lipton is expected
to record 2000 tons of tea bags sales nationwide. Out of the 200 tons of
expected sales, King of tea bags is expected to contribute around 63 tons,
falling 27 tons short of the 100 tons targeted sales. Vital tea bags have
estimated sales of 10 tons while Tetley anticipates 1 tons of sales volume.
However, conditions are very unfavorable for the Islamabad/Rawalpindi
market as the companys predicted tea bags sales are only 20 tons
compared to 700 tons of estimated sales of Lipton tea bags.

2.2.3 Competitive Advantage

The success of Tapal Danedar proves the fact that the quality of companys
product is its competitive advantage. Superior quality and taste are the key

characteristics associated with Tapal. Such a competitive advantage could

prove to be very significant if the company rebrands its enveloped tea bags
and uses the right marketing tools with high frequency in order to become
the market leader. Tapal has a good marketing team and a strong sales
network that does not make it any weaker than the multinational giants like
Lipton. However, Liptons marketing strategies are a little better than Tapals,
due to which it is giving hard time to all competitors in the tea bag market.

2.2.4 Other Products

Tapal offers nine different brands of tea under its umbrella which are Tapal
Danedar, Tezdum, Family Mixture, Danedar teabags, Mezban, Chenak,
Green Tea,Gulbahar and Tapal Special. It does not offer products other than
tea.

3. MARKETING OPPORTUNITY ANALYSIS

3.1 Customer Analysis
Customers are a group of people who receives the products services or ideas
from a seller, on terms of exchange with something valuable. The customers
are essentially important for any organization to progress and prosper. They
allow any business to earn revenues. Organizations primary goal is to
accomplish customer needs. In order to achieve that organizations work
heavily to develop customer satisfaction and loyalty, to have repetitive
buying and maintain current volume of sales. However the scope of
customers are not only limited to the existing customers, it extends to
prospective/ potential customers as well.

3.1.1 Existing Customer Analysis

Customer needs

Tea is amongst the fastest growing industries in the world, likewise in

Pakistan the growth of tea industry has been enormous, this has increased
the customer base many folds and is still increasing. Market survival is
knowhow of the customer base and this knowledge has been judiciously
utilized by Tapal, testimony of which is their wide variety of products
targeting various market segments.
One example is, King of teabag which comes in hermetically sealed
envelopes that allows it to maintain its freshness and customer expectations
of best taste and freshness of tea. Tea bags has the added advantage of
convenience for the customer, the process of making is quick and easy. In
addition staining process is also not required which adds more value to the
teabag consumption. These all factors makes it popular amongst the working
professionals who consume tea at workplace and to all the time starved
people, who dont have time abundance to go through entire tea making
process.
Demographics and psychographics
Tapal tea is distributed in the urban areas and is targeting the working class
inclusive of males and females, above the age of 25. However the product is
price high in the market which dictates that the product is targeting
customer with above average to good buying power. The product can be
used as a regular drink at workplace and at homes as well. Tea is also served
at various restaurants and has shaped into second most common drink after
water.
Market Growth
Industry is now on the maturity stage. Large players have established their
brands in the market and enjoyed huge profit margins. Now they are looking
towards product differentiation and multi segmentation because consumers

are now more taste conscious and looking for variety available to them in a
tea market.
Existing marketing strategies
There is an enormous competition in the tea bag market and market is
mature with established brands available, companies have established their
customer base, in order to attract new customer and maintain existing ones
multi segmentation and high level of differentiation is required, which the
company

is

using,

product

has

advantages

not

available

with

the

competitors; the company is pioneers in bringing teabags in hermetically

sealed envelopes which is the USP of the product. The marketing methods
adopted for the promotion of the product includes TVC, billboards,
newspaper and radio. Tapal as a company has various products with
enormous and loyal customer base. Being Pakistani origin company, Tapal
commercials have collectively emphasized and exploited family values, deep
rooted family bond and patriotism due which they have managed to target
families and patriotic segment of Pakistani market.

Significant Opportunities
Market Dynamics: The consumption of tea in the Pakistani market is on a
higher side. Increase in shares of TAPAL TEA signifies the acceptance of its
various brands of the company in the market. This provides an opportunity to
segment the market into various segments; King of tea bag is primarily
targeting working class which is also increasing with such rapid increase in
population. Tapal intends to increase its market share with this differentiated
product.

Higher Adaptability: The working class of Pakistan is time starved who

responds to new ideas are more adaptable to convenience and quality, this
provides as an opportunity for the company. This highly convenient and
unique product will attract this particular market as it meets their product
requirements.
Quality focus: The tea customers are looking for taste and convenience and
the quality offered by Tapal is above par with its competitors and they have
been consistent in providing higher qualities. The packing of envelope will
further enhance the quality of tea and add convenience to it as it reach
customer with premium freshness, in addition the shelf life of the product will
also increase. These are the opportunities that Tapal will exploit while
bringing the same unique and consistent taste to its customers
Threats
Strong competitor: There is a strong competition in the teabag market,
Unilevers brand Lipton, with its distribution network and high budgeted
marketing is the market leader. They dont have this kind of a product at the
moment, however if they launch such a product it may become very difficult
for Tapal to maintain the market share owing to their low marketing budget
as compared to Unilever.
Downward trends in growth: With an increase in inflation in Pakistan, the
purchasing power of people is decreasing and customer is further price
sensitive which is a major threat for the product. With price being set at the
higher end the product might show poor sales growth with time.

Threat of Substitutes: Due competitive environment and increasing product

range there exist an ever increasing threats of substitution, the risk of
substitution is not only limited to switching to other brands of tea but it also

includes shifting of customers to other form of beverages which include juice,

soft drinks, green tea and coffee.

3.1.2 Potential Customer Segments

Six Sigma doctrines segregate customers from others by branding them noncustomers and not-customers. Customers are those who are actively dealing
with business by purchasing goods and services in a particular period in
time. On the other hand, not-customers are those who are no longer
customers or potential customers who opt to purchase goods and services
from

the

competition.

Non-customer

classification

segregates

those

customers who are dealing in entirely different segment(s). Based on the

classifications of customers under the Six Sigma doctrine, we have
investigated King of Teabags potential customer targets and segments.
Potential Needs
The percentage of Tea consumption (not the volume) is expected to decrease
in future due to consumption of other alternate products that young
consumers find more enticing to their taste and lifestyle. Due to influx of
large variety of these new products, the potential needs of customers are
also shifting accordingly, which makes it extremely important for companies
to keep track and strategize according to the dynamics of the market. As the
market loses potential buyer base as a whole, companies could fight for a
piece of the pie in the existing customer base, or diversify its product
portfolio to add products favorable to younger customers. Similarly, more
and more people are now inclined to the use of green tea because of health
benefits; consuming lesser percentage of black tea.
Despite aforementioned shifts in consumer buying patterns, black tea still is
the cash cow for tea companies like Unilever and Tapal. Due to an increase in
the pace of life in the urban areas, people now consider tea as a convenience
product. Corporate world, where the teabags are so famous due to their

convenience, but recent observation of trends suggest that there has been
an increasing shift to other alternatives such as coffee which provides an
instant caffeine burst that employees need to carry on with their work. These
could be considered as non-customers for the company.
Demographic/psychographic profiles
Demographic profiles of customers, not-customers and non-customers can
be clearly classified. Tapals teabag customers are still largely the medical
class households sector. Not-customer and non-customer classifications are
more dependent on the psychographic factors such as lifestyles, interests,
attitudes and so on. Not-customers of Tapals teabags are largely those
potential buyers who are at current consuming Lipton or other tea, whereas,
non-customers are can be classified the younger audience interested in icetea, which is targeted at mainly children. Through marketing, the product
itself can be reinforced as the true King of teabags due to the value addition
of freshness due to its enveloped packaging and metal free string.
Significant opportunities
In an environment of dynamic changes in tastes of people, there exist a
significant opportunity for Tapals teabags. Potential customers can be
enticed via TVCs and other marketing campaigns to make them realize what
they are missing. The non-customer base is gradually been turned to
customers by introduction of Tapal ice tea and other similar alternatives to
cater to their special needs. Tapal envelop tea bags can cater for the upper
class and also for people who travel regularly. These people can grab a few
sachets from their homes while they travel as it is more convenient to carry
sachets rather than teabag boxes.
Major Threats
Competition: One major threat is obviously losing Tapal teabags own market
share in the North to the direct competition, since companies dont operate

in isolation. The competition will be equally interested in leveraging their

unique resources to grab Tapals market share.
Alternatives: As discussed earlier, the dynamic variance in the tastes of
people has made it slightly difficult to identify customer for specific products,
but there exists special needs and demand from people who find other
alternates or substitutes favorable. Therefore, it may put in the foundation to
a possible cannibalization of product with the other.
Company Resource Match
Since the competition is quite high in the market, companies need to make
sure that their resources and strategies are capable of harnessing
profitability from the opportunities rising due to potential needs or
customers. Potential customers and non-customer base, therefore, are quite
important to the company. Tapals success in the south has mainly been due
to its strong distribution and the quality of the tea which gives a strong taste.
But considering the tastes of people in the North, it is important that
company introduces a blend which gives a slightly less strong taste. Lipton,
on the other hand has been guiding people to make Different variations (Less
strong, strong, very strong) tea through its TVCs. This strategy could be quite
effective in case of Tapal as well.

4. Research Findings and Analysis

4.1 Primary Research Analysis
Survey Questionnaire from Potential customers (Attached- exhibit
A)
The number of male and female respondents for the consumer questionnaire
was almost equal, with 53% of the total respondents being male and 47% of
them being female. Out of these almost half of the respondents were aged

between 23-27, (i.e. young adults & adults) with the percentage equaling
exactly 47%. Out of the remaining ones, 25% consisted of teens and young
adults; that is; people aged between 18 and 22, 12% of the respondents
were aged 42 and above, 10% of the respondents were between the ages of
28 and 32 and the remaining were between 33 and 41.

Upon analyzing the results, we found that 75% of the total respondents
consist of working professionals, so we can say that tea consumption is
especially

popular

amongst

employed

people. We also found that

around

12%

of

the

respondents were students

and

9% were housewives and the

remaining was unemployed.
The survey covered almost equal proportions of people with different income
levels. As per the results, 29% of the people who responded have an income
of Rs 25,001 -50,000/month; 25% of them earn over Rs.100, 000/month with
24% and 22% of the remaining respondents earn between Rs 50,001100,000/month & Rs.25,000/month respectively.

Q1: What kind of tea do you usually consume?

The consumers were given an option to select either branded or unbranded

tea. Results show that 97% of them are avid consumers of branded tea. It
would be safe to deduce that working professionals in general are choosy
about the kind of tea they consume and clearly prefer branded.

Q2: Rate the following attributes from most important to least

important when it comes to selecting a particular tea brand.
The purpose of this question was to identify the comparison factors which
are more important to tea consumers. Results show that majority of the
respondents thought that the most important selection criteria to them was
taste. Two factors that were rated quite important were aroma and color, the
factor rated as important next to these two was brand name and finally, it
was evident from the results that people were somewhat indifferent when it
came to packaging and price as they have been ranked as fourth and fifth
important attributes. This means while shopping for the tea, the first thing
people would look at is taste followed by other factors.

AROMA
TASTE

Q3: Which method do you use MOST frequently for making tea?
Referring to the statistics, it seems that most of the consumers use the
traditional way of brewing tea (59%) (By using loose leaf tea) and about 41%
of the respondents use tea

Q4: Which brands teabags do you

bags.

use?

For this question, a huge chunk of the pie

(63%)

was taken away by Lipton tea bags, which is the main competitor of Tapal.
Tapal tea bags were ranked number two in consumption but the actual
percentage of consumers is quite low (19%). As for the remaining
respondents, only 1% uses Alokozay tea bags and the remaining either dont
use tea bags (9%) or go for other options (7%).

Q5: Referring
question, why do
particular brand'

to the previous
you prefer this
teabags?

Majority of the respondents said that they love Lipton because of its taste,
color and aroma which are basically how they define quality. By looking at
the comments it was obvious that these people were very brand loyal, which
means Lipton has created strong brand equity in the minds of consumers.
6) Which of these products is easily available in the market?

The

above

table

clearly

shows

that Lipton teabags

are easily

available

market

i.e. in the region of

in

the

Islamabad/Rawalpindi. What we infer from consumers response is the fact

that Lipton has a better placement and distribution network as compared to
other brands such as Tapal. Consumers cannot easily find Tapals teabags in
utility stores or retail outlets; this is something which is of a serious concern
for the brand because if your product is not easily available in the market,
consumers might purchase the competitors product.

7) Which tea brands' advertisements on TV do you like the most?

Out of 68 respondents, more than half of them i.e. 65% were of the view that
they find Liptons advertisements to be more entertaining as compared to
other brands advertisements. On the other hand, Supreme was ranked
second (15%) and Tapal, third (9%). It is clear from this figure that as far as
marketing and promotion of ones brands or products is concerned Lipton
stays ahead of its competitors such as Tapal and Vital tea. According to the
results, as more people like Liptons advertisements, this means that Lipton
has been successful in developing brand likeability among its consumers.

On the other hand, Tapal advertisements were perceived as entertaining or

likeable by only 6 people out of 68 respondents.

8)

Which

of

the

following

best

describes

your

tea

usage/consumption?

Frequent/regular tea drinker

Occasional tea drinker
Special tea's only (Green/herbal etc)
Other

45
15
5
2

67%
22%
7%
3%

In order to know consumers tea usage/consumption behavioral pattern, we

asked them to choose a description that best states their tea consumption.
As the above table shows, 67% of the respondents consumer tea on regular
basis whereas the percentage of consumer segment that is health/diet
conscious is very low i.e. 7%; who consume only green or herbal tea.
Moreover, 22% of them consume tea occasionally. Hence, we conclude that
more than half of our respondents are tea-lovers or those who drink tea
regularly.
9) How do you like your tea?

Moreover, there are some consumers who choose a particular brands tea
over others due to its tea color attribute. Hence, to find out the intensity of
tea color that consumers prefer, we asked them a simple question, How do
you like your tea? We found out that about 50% of the consumers prefer
strong tea whereas 40% of them prefer having medium color tea. The ratio of
people who consume light or very strong color tea was quiet low.
10) How often do you change your tea brand?
In order to find out about the consumers loyalty towards a particular tea
brand, we asked them the above mentioned question and the graph shows
their responses.

(Where 1=Never 2=Rarely 3=Sometimes 4=Often 5=Very Often)

44% of the respondents claimed that they rarely changed their tea brand
whereas 22% of them were of the view that they never change their brand of
tea. However, 26% of the respondents would change their tea brand
sometimes. It is evident from the stats that most of the consumers are brand
loyal when it comes to their consumption of tea.

11) Are you aware of Tapal Danedar Envelope tea bags?

Talking about Tapal Danedar Envelope teabag, this question was asked to
check awareness of consumers regarding this particular product. We can
conclude from the above graph that half of the sample population is aware of
the product. The percent of people who are not aware of Envelope teabags is
also somewhat close to half of the population i.e. 33%.
12) If yes, have you tried the envelope tea bags?

Yes
No

24
41

37%
63%

A follow up question was asked to see how many people, who were aware of
the envelop tea bags, did actually try it. In the previous question nearly 50%

(35) of the respondents were aware of the Envelop teabags. Out of which 24,
i.e. (68.5%) of the people had actually gone on to try the envelop tea bags.
This is nearly 70% of the people which is a not a bad return, however, it is
evident that the overall awareness needs to worked upon. If all respondents
are considered, only 37% of the people have tried the Tapal Envelop tea
bags.
13. If no, what is your perception about "Tapal envelope tea bagsKing of tea bags"
As we left it to the imagination of the respondents to tell us how would they
perceive the statement Tapal Envelop tea bags King of Tea bags, we had a
varying degree of responses. Some of the common or interesting responses
are summarized below:

King of tea bags shows it must be good quality and somehow

different from other tea bags

It probably has a unique packaging with teabags in envelops.
Though the name says KING, it is not going to beat Lipton
Strong Taste possibly
No idea

The purpose was to get an idea what people really think of the name given
to the envelop tea bags and its slogan of King of tea bags. Although some of
the people did interpret the word King as something that would be unique
and possibly better than other tea bags. However, it was evident that plenty
of respondents did not perceive it as something special.
Secondly we had a lot of Lipton fans saying it wont be as good as Lipton
regardless if they its called King of teabags.
14. Would you prefer using a teabag which is:

1) staple-free, 2) microwave friendly and 3) sealed to protect

moisture?

yes
no

48
9-

- 84%
16%

We selected three unique features of the Tapal Envelop teabags and listed
them without mentioning that they were the features of Tapal Envelop tea
bags. With 84% of the respondents replying with a Yes, we can safely
conclude that these features are certainly useful and will add value to the
product.
15. What image comes to your mind when you are presented with
these products?
1) Lipton 2) Tapal

3) Alokozay

This question was posed to see what image of these brands has been built in
the minds of the consumers. This would give us a good idea of where Tapal
stands against its main competitor Lipton and an emerging brand in tea bags
industry, Alokozay.
Lipton
Most people view Lipton as a premium brand with the best quality tea. They
described Lipton as Best and Taste and quality. It clearly shows, just like
quite a few of our previous questions that Lipton has positioned itself very
strongly where people see it as the brand to buy.

Tapal
Tapal received mixed responses. Although, some respondents replied by
saying its good quality tea, Strong taste, but there were responses such as
Red color, Village. This shows that people who have tried Tapal, like its
taste and are generally satisfied. But there seems to be an image amongst
other consumers, who see Tapal as a brand only for the lower class. This is
where Tapal needs to work on, if it wants to position its envelop tea bags as
the King of teabags and market it to the middle to high class of Pakistan.
Alokozay
The responses were general Not heard of it, No idea what that is, good
color but bad taste showed that Alokozay is still some way off from both
Tapal and Lipton in the tea bags industry. Therefore, Tapal may yet feel
threatened by the emergence of Alokozay tea bags.

4.2 Retailer Questionnaire Analysis (Aattached- exhibit B)

We circulated the questionnaire and interviewed several retailers in
Islamabad/Rawalpindi such as D-Watson, Euro Mart, Choice Mart, Shaheen
Chemist, Barsa Cash & Carry, Harolds, Metro, CSD, Cosmo etc. along with
some of the wholesalers in Karachi Company. Most of these retailers except
for the wholesalers say that they dont keep the unbranded/open tea at their
stores since their customers demand only the branded tea. The wholesalers,
on the other hand, indicated that there is high demand for unbranded/open
tea by hotels/restaurants, although the teabags still have high demand
because there arent any alternatives available other than Tapal, Lipton,
Alokozay and Vital, where consumer only demand the former two.

The analysis revealed that Lipton tea bags are high in demand compared to
others. Lipton is successful in all the shops/marts we visited, where it
consistently outperformed Tapal. In terms of share, Lipton teabags almost
double the sales with that of Tapals black tea bag and even more or when
compared to the envelope tea bags. In contrast, Tapals green tea is
performing well compared to its Danedar teabags and is neck to neck with
Liptons green teabags.
Upon enquiring regarding availability of the product, we can conclude that it
is almost available in all the stores with an exception of one or two. Some of
the stores also have sales rep of Tapal on the aisles to promote the product
as well. But despite all these efforts, Tapal hasnt been able to increase the
share of its enveloped teabags. The consumer response is still good-poor in
almost all the stores taken as sample. It contributes less than 30% to Tapals
black tea bag sales.
When asked regarding the increased focus on promotional offers, most of the
retailers responded that promotional offers are generally seen to have direct
correlation with the sales of Tapals products, though Tapal hasnt really
introduced any promotional offers for its King of teabag, but the recent
promotional endeavors in other products, did increase the sales of those
products.
The analysis also showed that customers often have a predetermined choice
of the brand in their mind when they come to the store, although, the
retailers suggest them to buy the brands that are selling better. Lipton, being
the priority of customers, creates a viral effect and consumers often get
influenced by the others.
In addition, it was also seen that most of the retailers convinced the
customers to buy the brand that were giving them trade incentive and
margin. To assume more profits, they would go an extra mile to convince the
customers to get the products that increases their profits.

4.3 Taste Testing

Product testing was conducted at various places with an aim to ascertain the
customer preferences. A group of people who were tea consumers were
given the sample of the tea, both Lipton and Tapal. The tags from both the
teabags were removed in order to get the fair responses on basis of taste,
aroma and quality of tea.
During the course of activity, a large majority of people liked the aroma and
taste of Tapal tea, where as people thought Lipton was the stronger tea of
the two products. The trends that were extracted from the activity were
mixed and did not merit for prominence of one product.
Thus we can deduce from this that the product quality of Tapal is in
comparison to Lipton, but the market share of Lipton is far greater. It was
also believed by the customers that the tea consumption depends highly
upon the preference of the individual customer, some would like to consume
strong tea, while others would prefer contrary.
4.4 Current TV Commercial Response
After the establishment of the fact that both products are comparable,
another test was conducted, where the current Advertisement for the
product was shown to group of people and their views were recorded. The
aim was to establish the product perception in the mind of the consumers.
The subject group was asked questions like

What is your perception about the brand?

After watching TVC, what do you think is the target market for the
product?

Do you consider this to be a premium brand, after watching TVC?

The general and common perception of our respondents was that the ad
seemed family focused and their target were probably families. This corrodes
customer perception of target market, which limits the sales of the product.
However in true sense the product was intended to target people from upper
class and upper middle class with high purchasing power. However the Ad
did not capture the working class which is a huge market for the product
The responses recorded showed a trend that after watching TVC, customer
did not perceive that Tapal envelop teabags as a premium brand, they
complained that the TVC essentially lacked the royalty that was required out
of the product.

5. SUGGESTED OBJECTIVES
5.1 Financial Objectives
The suggested financial objective for the company is to increase revenues by
enhancing advertisement efforts and sales techniques. King of teabags is
expected to generate sales of 103 million (PKR) by the end of current
financial year. On the contrary Lipton tea bags expected sales are 2.5 billion
(PKR). This Gap in sales is the opportunity for the company. The company
wants to increase sales of teabags which would benefit the company in
terms of increased market share and profitability. High profit margins are
associated with the teabags as compared to packaged tea. These margins
can be as much as 200 % and hence can greatly enhance the financial
strength of the company. The increasing sales would help achieve economies
of scale and also reduce the average cost and expenses incurred by the
company.

5.2 Management/ Personnel

There is a need to increase sales representatives accountability, in order to
maintain company image and promote ethical selling procedures. It is also to
be ensured that right reward is paid to the right performance.
Increase competition and motivation amongst the sales representatives, in
order to make them achieve their targets and aim at higher targets for
future.
Focus on employer branding to attract competent talent in the market. Tapal
does not focus on the acquisition of top level talents available in the market
as a result the workforce available to Tapal is not as effective as Liptons
workforce. Unilever is usually the first choice of the top talent available in the
market. This gives Lipton a competitive advantage of having creative and
talented workforce to outperform Tapal in marketing activities.
Mitigate the shortage of sales force supply to decrease the burden on
existing employees and to cater for decline in sales force productivity in the
specific areas. When the company has a vacant position of a sales
representative in a particular area, the workload of the vacant position is
divided amongst the existing employees. This results in increased burdens,
less satisfaction and productivity.

5.3 Production
Procure the highest quality of raw tea that is better than the existing highest
quality brand available in the market. Since this is a premium product which
is aimed at high above par taste and tea drinking experience. The product is
intended to be the best amongst the teabag category.

5.4 Marketing
5.4.1 Product/ services
Our marketing objectives main focus will be to promote the product as a
premium brand, keeping in view not only its tagline, King of teabags but
obviously, the unique features of Tapal enveloped teabags. We aim to
reposition and re-launch the product which is supportive of the whole
concept of King of teabags whereby highlighting its USPs. Moreover, we are
proposing

the

product

with

some

modifications

and

improvements.

Introducing the sachet enveloped teabag and improving the packaging and
labeling is what we are focusing on as far as the product is concerned.
5.4.2 Sales
The sales objective is to increase Tapals market share through increased
sales of this product through improved marketing efforts as well as by
introducing the better or improved version of this product. Through this
objective, we aim to surpass our competitor, Lipton in the north region.
5.4.3 Pricing
Since Tapal Danedar Envelope teabag is introduced in the market as a
premium brand due to its unique qualities and being the first sealed
envelope teabag in this market, hence our pricing strategy has to remain
competitive. This is important because lowering the price considerably to
assist sales will cause the customers to think of our product as something
which does not offer anything new or is of poor quality.
5.4.4 Adverting
Promotion and advertising

objectives

basically

pertain

to

increasing

awareness of this particular product because increasing awareness about the

product and its attributes will pull a lot of customers to enveloped tea bags.
Trial generation and customer acquisition are the main aims of extensive
advertising activities that the company needs to do. The ultimate objective
of heavy advertising campaign is position the brand as the most superior
quality product and to become market leader in tea bags category.

6. SUGGESTED STRATEGIES
6.1 Product
A product has various characteristics or attributes such as size, color, design,
quality, shape, weight etc. One of the characteristics/attributes that we are
proposing to modify and improve of our product is the design, packaging and
the size factor.
Our product is Tapal Danedar Envelope teabag with King of teabags as its
tagline.
Product Name: We are proposing the name of the product as Tapal King
with the tagline Royal awaits This is because the envelope teabags are a
premium product that is differentiated from the other products, but utilizing
the common name Tapal Danedar, presently being used by other teabag
brands of the company. By utilizing same name, the purpose of premium
positioning of the brand would not be achieved.
Size: Currently two stock keeping units of teabags are available in the
market as far as this product is concerned; one contains 100 envelope
teabags and the other pack consists of 50 envelope teabags.
In order to cater for the variety and usage element that consumers
increasingly seek nowadays, we are suggesting that Tapal Envelope teabags
should be introduce in another size of packet which basically contains 25
teabags apart from the large and medium size packs of teabags. The main
reason for proposing this additional small size pack is to target those
customers who do not consume teabags on a regular basis or those who fall
into the category of light/irregular users or maybe medium users. Also,
considering the family lifecycle stage, this can be an attractive option for
young married couples (without children) who might be light users of

teabags. Moreover, people who are price conscious might as well prefer this
option since the price of the small pack will be comparatively less.
Design/packaging and labeling: Secondly, we are proposing the same
product with modifications in its packaging. Presently, the packaging of Tapal
Envelope teabags packet is not very attractive and has some flaws
pertaining to the labeling. One of the most important or integral part of any
package is its labeling.

The current packaging and labeling of the product is such that it is a red box
somewhat similar to the standard Tapal Danedar teabags packet. Some
issues that we identified with the labeling were that, the tagline King of
teabags is missing on the packaging which is a major drawback. Tapal aims
at projecting the USP of its product, Envelope teabags as King of teabags.
However, the fact that this tagline is missing on the packaging is a serious
concern as far as increasing the consumers awareness is concerned.
Secondly, the transparent window space present on the products
packaging is way too small to be able to see through the box.
The right packaging should include the tagline King of Tea Bags in a
prominent position on the packaging. Moreover, on the envelopes, the crown
should be printed too. The packaging color scheme and theme should be

prominently different from the normal tea bags packaging. As previously

discussed, the USP of the product was hermetically sealed envelopes of
teabags, a transparent window was made on the package in order to provide
clear vision to the customer. However this window is very small which hardly
serves the aforementioned purpose. In order to provide clear visibility the
size of transparent window should be sizeable.

6.2 Place
As far as the placement of this product is concerned, there is not much issue
due to the fact that the product is available in almost all the departmental
stores of Islamabad, with the exception of one or maximum two stores.
Moreover, the shelf space allocated to Tapal and its product is sufficient
however, in a few cases we found out that the product was not placed onto
separate racks or was not given separate shelf space.
Trade incentives: The importance of retailers in the sales process cannot be
undermined as customer approach to retailers for buying product. Retailers
can shape the buying patterns, if they are given incentives to promote and
sell the product. According to the retailers that we interviewed, they were of
the view that if they are given attractive incentives, they would put in more
effort to promote the product in store to its customers. Following types of
trade incentives can be offered to retailers

Quantity discounts: On buying of product in bulk an incentive

offered to the retailers in form of discount, which reduces the cost per

unit. These are also known as cash discounts.

Bonus products: On buying product in bulk, an incentive offered to
the retailers in the form of bonus product. These products can be the
same product or any other product that the company offers. In order to
avail these discounts retailers need to order a specific minimum
quantity.

Trade contest: a competition will be generated amongst the retailers

or whole sellers in an area, whereby rewarding the retailers with
highest sales figures. This will induce competition and every retailer
will strive to attain highest sales. Incentives like cash, sponsored trips
and free products are common reward of a trade contest.

This practice encourages the retailers to purchase larger quantities, which in

turn increase sales and retailers profit margins. For a product that is not
purchased frequently, quantity discounts are most appropriate method to
incentivize the retailers, as they are widely accepted by retailers.
Out of Category Display: The out of category display is when the product is
displayed at a prominent place in the store. This placement will increase the
visibility of the product which would increase the probability of selling the
product.
Shelf Space: Tapal can also promote itself by having attractive shelves
dedicated to its envelope tea bag to generate point of purchase sales. It
should be the first thing that a customer notices on entering a store.

6.3 Promotion
One major issue with Tapal is ineffective advertising and in most cases,
insufficient advertising. They have not focused on creating brand awareness
for their envelop tea bags at all. When asked, many people did not even
know that the product existed. It looks like Tapal is not putting in enough
effort into devising a smart marketing strategy. The major customers of Tapal
are avid users of social media and Tapal has no presence there. By checking
their page on facebook we saw that Tapals last update was in 2012! After
that the page has practically been dead. In contrast, Lipton has great social
media presence. It continuously keeps in touch with its customers, keeps
updated and is building long term relationships with its customers.

Tapal should design an effective marketing campaign and should use a

variety of mediums to advertise their new product. One noticeable fact about
Tapals advertising is that all of its ads are family oriented. Sure, there is
nothing wrong with that but they need to understand that more than often
different products have different markets there is no one kind of advertising
focus that would work for all product markets. For Tapals envelope tea bags
we found out after the survey that most of the sales for teabags come from
upper class and upper middle class which is inclusive of elite working class.
Therefore, they are the core consumers and should be exposed to relevant
marketing and advertisements, something they can relate with.
Tapal should also use attractive hoardings, roadside hoardings, print and
digital ads.
Above the Line, Below the Line and Trade Promotions:
TV Commercial: The TV commercial needs to project the image of a
premium brand which is not very sophisticated, offers high quality tea which
could be made conveniently. The advertisements should be informative yet
interesting for the target market. In the initial days of re-launch, the
frequency of advertising should be very high.
Billboards: Billboards or hoarding advertising in another medium to
increase awareness about the product and promote its unique selling
propositions. Billboard advertising should be placed selectively in areas
trafficked with upper class and upper middle class people, such as Jinnah
Super, Blue Area and F-sectors of Islamabad.
Print Advertisement: Magazines such as Newsweek, Daily Times, Fashion
Central, Herald etc, could be used as effective mediums to promote
enveloped tea bags to the target market. Such magazines are trendy,
information intensive, mostly read by working class, upper class and upper

middle class, and cover the formal and casual reporting for the target
market.
Social Media: Its facebook page is a great and inexpensive way to connect
to thousands of consumers and ask for feedback, opinions and encouraging
constructive criticism because it will be able to bridge the gap between what
it is offering and what the consumers demand. The social and mobile media
can be used for generating word of mouth and viral marketing/promotions.
Using viral videos, teaser ads and generating viral buzz can provide intended
promotion to the product.
Consumer Incentives: To stimulate sales, it can also have online contests
like its competitors do, such as dip and win (a lucky draw kind of thing),
picture your tea moment contests(where the contestant can take a picture
that best describe her/his special tea moment and get people to vote
her/him in order to win). Contests like these will not only draw attention to
Tapal and increase the awareness but also help in generating sales. This can
also be supplemented by the gifts and other incentives provided on sale of
Tapal teabags. It is worth mentioning that during the course of research we
found that sales of products were increased by provision of gifts.
Stalling: This type of activity is carried out at a market place or a mall
where the consumers are attracted towards the stall and offered to try/ taste
the product. As we are projecting king of tea bags as a premium brand the
theme should complement the brands image.
Corporate promotion: In order to increase the awareness of the products
and the values it offers to the customers, Tapal can arrange activities in large
corporate offices by providing sample tea bags. This can also be augmented
by providing brand labeled hot water dispensers at the offices. Such
sampling activities can also be targeted at hotels and restaurants to promote
the brand.

6.4 Pricing
Tapal teabags are available in the two sizes in the market; the market price
of both packages is shown in the table below. It is however analyzed during
the course of this project that the price of Tapal teabags is higher. Keeping
into consideration the prices of Lipton teabags we have proposed new pricing
of the current products, plus an addition to existing packaging size.
Status

Quantity

Current Price

Proposed
Price

Existing
Existing
Proposed (New)

100
50
25

380
200
110

350
185
100

We have proposed package in a smaller size, containing 25 tea bags, priced

at Rs.100. The point in doing this is to attract customers by low pricing and
offering a more convenient pack which is fit for consumption by a single
person. Its a matter of fact that todays very demanding and savvy
customers like to have variety and several options so this tactic will help in
generating sales.

6.5 People
As mentioned above, loss in sales might be a consequence of ineffective
sales force. Tapal needs to see which consumer segment accounts for the
greatest sales and should make them its core target market. According to the
results of the survey, as it already been mentioned above, the main buyers
of tea bags belong to the elite working class who are always on the go, seek
convenience and want to save time. Another promising segment is that of
housewives who have also shown interest in the product. Housewives are
Tapals potential customers because they do most of the grocery shopping;
the sales team should be properly trained and informed about the target
market, so as to maintain their subsequent selling techniques. Sales
representative and promoters is the ones directly in contact with the

customers who can make an impression of the product. Effective sales

representative and promoters would result in customer satisfaction, various
techniques that can be utilized are as follows
Training: Periodic training must be given to the direct sales representatives
and store interceptors. The training should not only impart selling techniques
but should also endeavor to improve interpersonal communication skills. Mall
Interceptors should be located at stores, where they would provide product
benefit awareness to the customer and will prone them to make a purchase.
However the aforesaid objective can only be achieve when the training of
interceptors is effective in developing highlighted skills.

7. PROJECTIONS
7.1 Anticipated costs
Most of the costs would be incurred from the promotional activities. From TV
commercials to Billboards, the estimates of all the costs are mentioned
below. These are only estimates as the costs would depend on a number of
factors such as frequency, duration and length of the campaign.
TV commercial: The costs of making a new TV commercial would vary
considerably according to our locations and other related costs. After
speaking with different advertising agencies, a good commercial would cost
approximately Rs. 15 million.
However, a considerably amount will go towards the celebrity that is hired.
We would suggest, Shaan, the Pakistani actor, in a lead role for our
commercial. This would cost an additional Rs. 10 million. Therefore, Total
Cost = 25 million.
Print Advertisement: At the time of re-launch we would take the front page
space of The News and Dawn. This would approximately cost us Rs. 2 million
together. For the first month after launch, we would advertise in the

newspaper

regularly

but

only

on

weekends

will

the

front

page

advertisements be used. Therefore, it comes down to Rs. 8 million plus

regular advertisements for a total of Rs. 10 million.
For magazines, it would cost us between Rs. 50,000 to 100,000 to advertise
on one page (other than front page). However, for a front page it would cost
Rs. 150,000. We would take both options for a number of magazines (5
approximately). [Monthly Cost = (150,000 x 5) + (75,000 x 5) + 10 million =
Rs. 11 million]
Billboards: We would be placing our advertisements on prime locations, such
as the F-sectors of Islamabad and Blue area. It would cost Rs. 500,000 for
one month. The number of billboards in Islamabad/ Rawalpindi that would be
rented would total to approximately 12. [Monthly Cost = Rs. 6,000,000]
Cost of running TV commercial: Running a 45 second TVC on one of the
major channels such a GEO or ARY will cost between 20,000- 150,000 during
prime times (7pm 10pm).
As we would be running over 20 TVCs per channel (8 channels), therefore,
the cost per channel for a day would approximately be 20 x 85,000 =
1,700,000. However, this extensive marketing will gradually be trimmed for
the following months. [Monthly Cost for 8 channels = 1,700,000 x 8 x 30 =
Rs. 408,000,000 i.e. Rs. 408 million].
Below the line (BTL) Activities: BTL activities include having stalls, store
interception, trial tasting etc. These activities will be outsourced and will be
carried in all the major points in both Islamabad and Rawalpindi. The
combined cost for both cities will be Rs 5 million for a month.
Strategies

Cost (Rupees)

1. Making of a TVC

25 million

2. Print Advertisement

11 million

3. Billboards

6 million

4. Running of TVC on Major channels

408 million

5. BTL activities
Total Cost

5 million
455 million

The above chart shows the cost associated with the marketing activities
carried out in the very first month of re-launch of Tapal Envelop tea bags.

7.2 Expected Results

We have decided to use the ATAR model to predict some results. The data
collected from surveys was used in this model.
ATAR (Awareness, Trial, Availability, Repeat) Model
The ATAR model provides a framework to help estimate the adoption rate in
each year. The ATAR model is based on concept of Diffusion of Innovation.
For a person to become a regular purchaser of the new product they must
first become Aware that it exists. Once they have become aware of it they
must make the decision to Try it out. In order to try it out, it must be
Available for them to purchase. If they are happy with the trial then they
may decide to adopt the product, that is, Repeat the purchase again.
To calculate our target number of units to be produced we look at the total
population of Islamabad and Rawalpindi region, which is approximately 2
million and 5 million respectively. According to Pakistans Demographics
statistics, 65% of the population is above the age of 15. And for the age
group of 15 and above, 85% are usually tea drinkers.
Therefore, 7 million x 0.65 x .85 = 3.87 million populations can be
considered as tea drinkers in Islamabad and Rawalpindi combined. However,
only 3.2% of the total tea drinkers make use of teabags. That leaves us with
a total of => 3.87 x 0.032 = 123,840 people.

The per capita tea consumption is Pakistan is 1kg. As a tea bag contains 2
grams of tea, to ensure 1 kg of sale, we need to sell 500 tea bags. Therefore,
our target market in terms of units sold should be:
123,840 x 500 = 61.92 million tea bags, Price per tea bag = Rs. 3.8
Using the information collected from our surveys we can forecast the
following percentages:
Current Percentages

Forecasted

45%
60%
60%
40%

Percentages
75%
80%
80%
60%

Awareness
Trial
Availability
Repeat

Therefore, the percentage of market that will be adopted following our

Marketing campaign would be:
61.92 x 0.75 x 0.80 x 0.80 x 0.60 = 17.83 million teabags. In terms of
revenue

it

will

generate

17.83

3.8

Rs.

67.75

million

for

Islamabad/Rawalpindi region alone.

8. CONCLUSION
After carrying out detailed primary and secondary research, we come to this
conclusion that the product, Tapal Envelope teabag has not been able to
capture the desired market share due to its poor promotional strategies
which accounted for reduced visibility and awareness.
Despite the fact that Tapal Envelope teabags are available at almost all
departmental stores, Tapal has been unsuccessful to generate sales from this
product. The main problem lies with the way it is marketed; envelope
teabags were initially launched as a premium brand since it is a
differentiated product which is not being offered by its competitors.

Moreover, the lesser frequency of the advertisement on media also

accounted for reduced level of awareness of the product. Some of the
proposed strategies include improved product packaging and labeling, an
informative yet interesting advertisement, roadside hoardings, increasing
activity and presence on social media platform, giving consumer incentive to
stimulate sales, corporate promotion etc.
The suggested strategies we propose, aims at improving the marketing
efforts in order to increase product visibility and develop brand likeability;
this would generate sales, improve profit margin and eventually prove to be
a successful product.

Exhibit A - CONSUMERS QUESTIONNAIRE

Gender
a. Male

b. Female

Age
a.
b.
c.
d.
e.
f.

18-22
23-27
28-32
33-36
37-41
42 and above

Income

a.
b.
c.
d.

Rs 25,000/month
Rs. 25,001 50,000/month
Rs 50,001 100,000/month
More than Rs. 100,000/month

1) What kind of tea do you usually consume?

a. Branded
b. Non branded
2) What is your favorite tea brand?
a. Lipton
b. Tapal
c. Booke Bond Supreme
d. Islamabad tea
e. Other (Please specify) __________________
3) Rate the following attributes from most important to least important when
it comes to selecting a particular tea brand. (1 being least important and
5 being most important)
1

Taste
Aroma
Color
Price
Brand
name
Packaging

4) Which method do you use MOST frequently for making tea?

a. Tea bags
b. Loose leaf tea (Brewing tea the traditional way)
5) Which brands teabags do you use?
a. Alokozay
b. Tapal
c. Lipton
d. Other (Please specify) _______________
6) Which of these products is easily available in the market?
a. Supreme
b. Lipton tea bags
c. Tapal teabags
d. Other ________________________
7) Which tea brands advertisements on TV are entertaining?
a. Supreme

b. Lipton
c. Tapal
d. Vital
e. Other _________________________
8) Are you aware of Tapal Danedar Envelope tea bags?
a. Yes
b. No
9) If yes, have you tried the envelope tea bag?
a. Yes
b. No
10)

If no, what is your perception about Tapal envelope tea bags King of

tea bags?
______________________________________________________________________________
11)

Which of the following best describes your tea usage/consumption?

a. Frequent/Regular Tea drinker
b. Occasional Tea drinker
c. Special Teas only (Green/Herbal/others)
d. Dont drink tea

12)

How do you like your tea?

a. Weak
b. Medium
c. Strong
d. Very Strong

13)

How often do you change your tea brand?

a. Very Often
b. Often
c. I do not change the tea brand

14)

Would you prefer using a teabag which is 1) staple-free, 2) microwave

freindly and 3) sealed to protect moisture?

15)

What image comes in your mind when you are presented with these

brands?
a. Lipton Teabags _____________________
b. Tapal Teabags ____________________
c. Alokozay Teabags __________________

Exhibit B - RETAILERS QUESTIONNAIRE

Store name _______________________________________
1) What kind of tea accounts for the highest sales?
a. Branded
b. Unbranded (loose tea)
2) Which brands tea bags are mostly purchased by consumers?
a. Lipton tea bags
b. Tapal tea bags
c. Alokozay
d. Islamabad tea
e. Vital
f. Others _________________________
3) Which branded tea bags and what category of these tea bags are most
sold at your store/most preferred by customers? (please tick the
appropriate box)
Tea brand
Green tea

Type of tea bags

Black tea

Lipton
Tapal
Alokozay
Supreme
4) Do you have Tapal envelope tea bags at your store?
a. Yes
b. No.
5) If yes, what has been the response of consumers regarding Tapal
envelope tea bags in terms of sales?
a. Excellent
b. Very good
c. Good
d. Poor
6) What is the effect of price on sales of the tea? Would customer still buy
if price is higher?
___________________________________________________________________________
___________________________________________________________________________
7) What is the effect of promotional offers on sale of tea? Do promotional
offers increase sales?

___________________________________________________________________________
___________________________________________________________________________
8) How much does placement of the product affect the sales of the
product?
___________________________________________________________________________
___________________________________________________________________________
9) Do the customers search for the required product or buy whatsoever
they find first?
___________________________________________________________________________

EXHIBIT 3: PRINT AD