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Nescafe is currently positioning itself to take on the local tea consumers. Pakistans tea industry
is dominated by 2 large players, 3 medium sized players and multiple unbranded smaller players.
Nescafe attempts to grab a small market share of the current tea industry, with the tea cups to
coffee cups drunk per year at a ratio of 400:1.
Tea has multiple variations in Pakistan (listed below). For the purpose of this report, we
concentrate on the most popular form of tea, and their relative Brands/ Competitors (Table 1)
Types of Teas
o Dum ki Chai
o Doodh Pati
o Masala Chai
o Kashmiri Chai
o Kahwah (Green Tea)
o Butter Tea
Table 1. Brands/ Competitors
Brand PKR per PKR per PKR per PKR per PKR per PKR per
Name Sachets 95gm 190gm 385gm 475gm 950gm
Tapal 24 (PKR 84 160 350 820
Danedar 580/bag)
Lipton 80 180 380 400 865
Brooke 80 150 370 715
Bond
Tetley Tea 70 150 320
Vital Tea 10 80 160 360 760
As Tea is considered a commodity with all tea brands providing similar functional benefits, most
brands have changed their positioning from being a superior product, to that of a brand which
connects with their TGs societal/cultural values.
Lipton:
The brand has always positioned itself as a premier tea through its premium pricing, packaging
(especially tea bags) and driving its marketing campaigns accordingly. Since 2010, the brand
emphasizes celebration and targets age demographics between 18-60 yrs and uses UniLevers
financial strength for celebrity/singer endorsements, whom appeal to its youth target market.
Over the years these have included singers Hadiqa Kayani, Ali Haider, Ali Zafar, Misha Shafi
crediting their creativity to the brand. In 2016, the brand has re-positioned its marketing
campaign towards its functional aspect by emphasizing its better tasting product compared to
other tea brands, with the endorsement of Hamza Ali Abbasi, a liberal opinionated celebrity
whom appeals to the current youth.
Tapal Danedar:
Tapal positions itself as a brand which appeals to its TGs societal/ community values. In 2010,
the launch of an advert showing community house wives arguing over rights of ownership for
the months committee, and ending with them coming to an agreement of shared responsibility
after sipping a cup of Tapal tea.
In 2014, Tapal shifted from its traditional cultural positioning and attempted to position itself as
more exciting, by finding humor in societal deviations normally frowned upon i.e. spying on
neighbors. The aim was to show how the brand was more fun, interesting and targeted at the
young adults and its existing customers.
In 2017, Tapal attempts to target a younger customer segment, between ages 20-35, by
emphasizing its products POD by concentrating on color, smell and taste of its tea, whilst still
emphasizing family values and promoting a new belief becoming popular in the youth i.e. the
caring spouse. The aim of this shift hints towards defending its customer base against the
potential threat from lipton and loss of customers to coffee. The brand is a strong competitor
against Nescafe due to its recent marketing tvc, as well as the launch of a new all in one tea
sachet, which aims to trump the Nescafe 3-in-1 coffee sachet.
1% 12%
1%
4%
54%
28%
Source:
https://www.ukessays.com/essays/marketing/tapal-and-the-tea-industry-in-pakistan-marketing-essay.php
Nescafe Portfolio:
Nescafe Pakistans coffee portfolio consists of 4 products, each with its unique value proposition.
Classic- Pakistans most popular coffee, made from traditional coffee beans which can be made
into variations of coffee drinks from simple black to mocha lattes. Available in multiple SKUs ranging
from small to commercial use.
Gold- A premium choice for coffee drinkers with a particular taste and appreciation of their
caffeine. Priced higher than the Classic, this product offers a richer coffee taste, distinguishable by its
packaging, smell, and overall coffee taste. Can be used for variations as well including simple black to
mocha lattes.
3-in-1: The main product in the companys arsenal to take on the tea industry through its coffee
sachets containing coffee, milk & sugar. The POD is convenience, allowing users to save time making
their favorite coffee and instead, simply adding water. Offered at a much lower price than regular coffee,
it allows for one time consumption with the goal to encourage the local masses to try coffee whilst staying
within a comfortable spending limit.
Dolce Gusto: The premium coffee experience, only available in 15 countries. A partnership between
Nescafe and KRUPS to give coffee drinkers a mix of multi-beverage system with coffee capsules.