Brooke Bond Report

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EXECUTIVE SUMMARY

Unilever (Pakistan) Limited Formerl kno!n as Lever "rot#ers (Pakistan) Limited is $ %ar t#e lar&est and most e'(erien)ed %ast movin& )ons*mer &oods (FMC+) or&ani,ation in Pakistan- It.s $evera&es a))o*nted %or /01 o% 2002 reven*es- T#e ma3or tea $rands are "rooke "ond S*(reme4 Li(ton Yello! La$el4 Pearl 5*st and A67 8arak C#ai (%ormerl A67 8en a mi't*re )#ai)- Unilever #as a dominant 9:1 market s#are in tea ind*str and is t#e leadin& (la er in t#e (a)ka&ed tea marketUnilever is ver sensitive to international tea (ri)es4 t#is makes t#e mar&ins ver sensitive as tea (*r)#ases )onstit*te a$o*t /:1 o% man*%a)t*rin& )osts- T#en o% )o*rse sm*&&lin& is a ma3or )on)ern- T#ere is ram(ant sm*&&lin& o% tea4 !#i)# #as serio*sl a%%e)ted Lever;s sales and earnin&s- <o!ever4 )om(an o!ns t!o o% t#e most !idel re)o&ni,ed $rands ;Li(ton Yello! La$el; and ;"rooke "ond S*(reme;- T#e ma3or )om(etition %a)in& Lever at (resent is %rom Ta(al 5anedar Tea4 !#i)# is tr*l t#e market )#allen&er"rooke $ond S*(reme is one o% t#e most (o(*lar $rands !#i)# #as t#e ma3or market s#are in P*n3a$ and most o% t#e r*ral Pakistan4 $*t it #asn.t (roved to $e s*))ess%*l in 8ara)#i $e)a*se t#ere are alread esta$lis#ed $rands )om(etin& a&ainst S*(reme- As t#is (rod*)t lies in #i&# involvement )ate&or and stron& $rand )onvi)tion4 ver %e! (er)enta&e o% t#e tar&et market #as tried t#e $rand des(ite o% #i&# ima&e o% t#e (rod*)t- Intensive advertisin& and (romotional s)#emes #ave $een la*n)#ed $*t did not enti)ed (ros(e)ts to even tr t#e (rod*)t"rooke "ond s*(reme is !eak in its assortment and it )onve s lo! =*alit ima&e %rom its (a)ka&in& and la$elin&- Se)ondl 8ara)#iites (re%er stron& and aromati) $lend !#ere S*(reme is not (revailin& eit#er"rooke $ond S*(reme #as r*n o*t o% o(tions alt#o*&# t#ere is a reali,ation t#at ne!er $rands takes time to esta$lis# $*t t#ere is a de%i)ien) in its assortment and its nat*re o% $lend !#i)# doesn.t mat)# !it# t#e (re%eren)es o% tar&et market (8ara)#i) and leavin& t#e $rand as it is means t#at t#e market s#are !ill de)rease over time and soon it !ill $e vanis#ed %rom t#e market-

TABLE OF CONTENTS
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1. Tea Abstracts..04 2. Company Background.. 05 3. Re Launch of Brooke Bond Supreme.06 4. An Introduction of Supreme Black Brew...07 5. Current Marketing Situation...08 6. Opportunity and Issue Analysis..12 7. Marketing Objectives15 8. Marketing Strategy...16

9. Projected Profit and Loss Statement...22 10. Action Programs...28 11. Conclusion....2 9

TEA A$stra)ts
Toda 4 tea is dr*nk $ almost #al% o% t#e !orld;s (o(*lation- Tea is *ndo*$tedl t#e national drink o% Pakistan- Tea is an aromati) stim*lant4 )ontainin& vario*s (ol (#oni)4 essential oils and )a%%eine- T#e )on)entration o% )a%%eine in tea ran&es %rom 2-:1 to /-:1 and it is t#is )a%%eine )ontent t#at makes tea a *se%*l stim*lantTea is t#e $evera&e made !#en t#e (ro)essed leaves o% t#e tea (lant are in%*sed !it# $oilin& !aterIn Pakistan4 tea is onl $lended and (a)ked4 $*t not (rod*)ed- T#ree $asi) )ate&ories o% tea are marketed in Pakistan !#i)# are> 6Mi't*re 65anedar 6C#*ra 5anedar is also kno!n as lea% tea !#ile C#*ra is kno!n as d*st tea- T#ere are aro*nd %ive #*ndred %lavors availa$le in teaT#e r*ral areas o% Sind# are )onsidered to $e #eav )ons*mers o% d*st tea- P*n3a$ #as a #i&# )ons*m(tion o% lea% teaIt #as more )ons*m(tion t#an an ot#er t (e o% drink availa$le in t#e market toda - It is estimated t#at Pakistanis )ons*me over 790 million k& o% tea !ort# 9

over / $illion r*(ees ever ear- 5es(ite t#e in)reasin& em(#asis on its #a,ardo*s e%%e)ts on #ealt# and t#e )ontin*o*sl risin& (ri)es4 d*e to t#e lo! litera) rate and *navaila$ilit o% a $etter s*$stit*te4 t#e demand and t#e )ons*m(tion #as in)reased over t#e ears and is &ro!in& at an ann*al rate o% ?1Tea is an aromati) stim*lant4 )ontainin& vario*s (ol (#enois4 essential oils and )a%%eine- T#e )on)entration o% )a%%eine in tea ran&es %rom 2-:1 to /-:1 and it is t#is )a%%eine )ontent t#at makes tea a *se%*l stim*lant- Alt#o*&# se)ond to )o%%ee in )ommer)ial val*e4 tea ranks 7st as t#e most (o(*lar $evera&e in t#e !orldTea is t#e $evera&e made !#en t#e (ro)essed leaves o% t#e tea (lant are in%*sed !it# $oilin& !ater- @ative to So*t#east Asia4 t#e tea (lant4 Camellia sinensis4 is a small s#r*$like4 ever&reen tree- It;s leaves #ave t#e )#emi)als4 )a%%eine and tannin-

CAMPA@Y "AC8+RAU@5
Unilever !as )reated in 7B90 !#en t#e "ritis# soa( maker Lever "rot#ers mer&ed !it# t#e 5*t)# mar&arine (rod*)er4 Mar&arine Unie- At t#e time4 an international mer&er !as an *n*s*al move- "*t t#e o!ners o% t#e t!o )om(anies )o*ld see t#at $rin&in& to&et#er )om(limentar $*sinesses !it# stron& &lo$al net!orks !o*ld )reate ne! o((ort*nitiesUnilever (Pakistan) Limited Formerl kno!n as Lever "rot#ers (Pakistan) Limited is $ %ar t#e lar&est and most e'(erien)ed %ast movin& )ons*mer &oods (FMC+) %irm in Pakistan- It en3o s a ver lar&e market s#are in )ons*mer &oods4 t#e lions s#are even4 and is (arti)*larl dominant in tea and i)e6)ream- T#e lar&est )om(etitor o% Unilever in Pakistan is Pro)ter C +am$le !#i)# also is a #o*se #old name in )ons*mer &oods all over t#e !orldUnilever.s (rin)i(al a)tivities are to man*%a)t*re and sell s(reads and )ookin& (rod*)ts4 i)e )ream4 $evera&es and #ome and (ersonal )are (rod*)ts- Some o% t#e (rod*)ts in t#e *nilever line are "rooke "ond4 Li(ton4 L*'4 Re'ona4 S*nsilk4 S*r%4 "l*e "and and Planta-

RELAU@C< AF "RAA8E "A@5 SUPREME


T#e re)ent %ail*re o% "rooke "ond s*(reme is t#e (rime reason %or re la*n)#in& "rooke "ond s*(reme in 8ara)#i- T#e ma3or reasons %or t#e %ail*re o% "rooke "ond s*(reme is )redited to t#e taste (re%eren)es o% Peo(le o% 8ara)#i and to t#e ma3or )om(etitions t#at "rooke "ond is %a)in& %rom Ta(al 5anedar4 Ta(al Famil Mi't*re and %rom Li(ton Yello! La$el !#i)# is t#e %amil $rand o% Unilever alon& !it# "rooke "ond s*(reme-

Reasons Of Failure:
"rooke "ond s*(reme is one o% t#e leadin& tea $rands all over Pakistan $*t t#e sales in 8ara)#i #ave $een ver (oor sin)e its introd*)tion- T#e ma3or reason o% it is > T#e ma3or )on)ern !#i)# (revails in t#e tea ind*str is t#e $lend itsel%4 and $e)a*se o% t#e (re%eren)es variation o% (eo(le o% di%%erent (arts o% Pakistan4

one sin&le tea )an not $e introd*)ed )o*ntr !ide !it#o*t an alterationsA%ter $ein& s*))ess%*l in P*n3a$4 !#en "rooke "ond S*(reme !as la*n)#ed in 8ara)#i it !as not altered4 !#i)# res*lted in t#e %ail*re o% t#e (rod*)t Peo(le o% 8ara)#i (re%er 5anedar tea more t#en an ot#er tea $e)a*se o% t#e aromati) smell- T#is is t#e (rime reason o% t#e s*))ess o% Ta(al 5anedar in 8ara)#iAnot#er reason t#at )an $e )ited %or t#e %ail*re o% "rooke "ond is t#e %ier)e )om(etition it is %a)in& %rom Ta(al and Li(ton Yello! La$el- Ta(al #ave t#e *((er ed&e over "rooke "ond is $e)a*se o% t#e =*alit o% t#e tea and !it# di%%erent assortments it #as )overed t#e s#el% s(a)e- An t#e ot#er #and "rooke "ond s*(reme 3*st #ave 2 di%%erent (a)k si,es-

Introd*)tion o% SUPREME "LAC8 "RED


"rooke "ond s*(reme #ave $een re la*n)#ed onl in kara)#i )onsiderin& t#e lar&e (otential market and (en)#ant o% t#e tar&et market4 !e #ave e'e)*ted t#e )on)e(t o% m*lti6$rands and la*n)#ed S*(reme as ES*(reme "la)k "re!. in 8ara)#i- T#e name "la)k "re! #as $een ke(t to )at)# t#e e es o% (eo(le o% 8ara)#i !#o (re%er t#eir tea stron& and aromati)- E"la)k. &ives an ima&e o% Stron& and E"re!. )omes %rom $evera&e !#i)# relates to t#e aroma o% t#e teaS*(reme "la)k "re! #ave $een re la*n)#ed !it# man di%%erent assortments alon& !it# #eav advertisements and (romotional s)#emes as it is t#e onl !a it !ill enti)e t#e (eo(le to tr it4 !#o as o% no! are %ait#%*l to Ta(al and Li(tonS*(reme "la)k "re! #as $een re la*n)#ed !it# di%%erent assortments to )over t#e s#el% s(a)e to )at)# t#e (eo(le.s e es- T#e di%%erent assortments are> Small Pa)k> Famil Pa)k> 700 &rams 2:0 &rams ?

Plasti) Fars Tea "a&s Tea "a&s Stir Read

/00 &rams :0 Pie)es 700 Pie)es

Stir Read is t#e (ioneer in its )ate&or and #ave $een la*n)#ed %or t#e %irst timeIt is as its name s*&&ests EStir Read .- A tea $a& is atta)#ed to a s(oon !#i)# o* stir and drink at t#e same time !it# more )onvenien)e and ease-

CURRENT MARKETING SITUATION

Market Sit*ation
T#e tea ind*str o% Pakistan )onstit*tes t#e tar&et market o% nearl #al% o% t#e (o(*lation and earl )ons*m(tion is 7904000 tons- And t#e )ons*m(tion rate is still a))eleratin& at a %ast (a)e4 a))*m*lates to $e ?1 ann*all T#e (o(*lations o% tea Cons*mers re(resent t#e in)ome level and area o% residen)e !#i)# )onstit*te o% *((er middle )lass in vol*me o% 74B:040004 middle )lass in vol*me o% :420040004 lo!er middle )lass in vol*me o% 94B0040004 lo!er )lass 7490040004 )al)*lated in (er)enta&e as 7:14 /014 9014 and 701 res(e)tivel T#e (re%eren)e o% $* ers s#o!s t#e )on)ern in =*alit 4 aroma4 stron& ness and t#e nat*re o% tea t (e- @ormall t#e $* in& de)ision o% tea is taken $ #o*se#old !omen a&ed $et!een 90 to ?0- T#is )ate&or $elon&s to t#e dissonan)e red*)in& G

$* in& $e#avior !#ere t#ere are not man varieties or di%%eren)es are t#ere #o!ever t#e involvement in t#e (rod*)t is #i&#5*e to t#e #*mid !eat#er and t#e #e)ti) li%est le4 tea !orks as an e%%e)tive stim*lant- Anot#er reason %or tea $ein& a (o(*lar stim*lant is t#at )o%%ee4 a )lose s*$stit*te o% tea is )om(arativel e'(ensive !#i)# most (eo(le )annot a%%ord-

Com(etitive Sit*ation
Unilever o!ns t!o o% t#e most !idel re)o&ni,ed (rod*)t lines Li(ton and "rooke "ond- T#e ma3or )om(etition %a)in& Lever at (resent is %rom Ta(al 5anedar Tea4 !#o is tr*l a market )#allen&erLi(ton )om(rises o% Yello! La$el !#i)# is desi&ned %or *((er middle4 *((er lo!er and *((er middle )lass4 !#i)# is a market leader in t#e ind*str 4 it )omes in all t#e (a)ka&es in)l*din& #ard (a)ks4 3ars4 and tea$a&s- Li(ton ello! la$el alt#o*&# t#e dire)t )om(etitor o% "rooke "ond S*(reme )omes in t#e %amil o% Unilever so it is (rone to its )om(etin& atta)ks- Li(ton %ollo!s a massive (romotion s)#eme to #old its s#are- Ri)#$r* is desi&ned %or middle and lo!er *((er )lasses4 and Pearl d*st is desi&ned %or r*ral areas4 mostl distri)ts o% Sind# !#ere )ons*m(tion o% d*st is e'tensive- T#e $ot# are not stated as dire)t )om(etitors o% S*(reme $e)a*se t#e are tar&etin& to di%%erent a*dien)e- Li(ton #as a market s#are o% 2:1"rooke "ond )om(rises o% S*(reme and A7 karak Tea !#i)# is desi&ned %or lo!er )lasses4 ori&inall kno!n as 8en a mi't*re and t#en A7 8en a mi't*re- "rooke "ond #as a market s#are o% B1Ta(al !it# t#e assortments like 5anedar and Famil mi't*re )olle)tivel #as a market s#are o% 221 overall and in 8ara)#i it #as 2/1- Ta(al is not onl a dire)t )om(etitor $*t )an $e stated as a onl )om(etitor $e)a*se all t#e ma3or market

s#are #olders $elon& to t#e %amil o% Unilever e')e(t Ta(al- Ta(al also )omes in vario*s (a)ka&es and )ons*mes m*)# o% t#e s#el% s(a)e in s*(er markets and )onvenient stores- Ta(al #as t#e $i&&est advanta&e o% its assortments as is served not onl $ mi't*re $*t also 5anedar !#i)# is &ettin& ver (o(*lar da $ da Ta(al #as a &ood ima&e in )ons*mer.s mind and its (ri)e is also reasona$l attra)tiveA si,a$le (ortion o% t#e market is dominated $ loose tea or *n$randed tea<o!ever4 t#ese $rands are )*rrentl t#reatened $ sm*&&led tea %rom A%&#anistan !#i)# is availa$le in t#e o(en market d*t %ree- T#is #as (osed a lot o% (ro$lems %or &en*ine im(orters o% tea !#o )annot )om(ete !it# t#is tea $e)a*se o% its lo! (ri)e- T#ese *n$randed teas #ave t#e $i&&est market s#are o% /01 $e)a*se o% its lo! (ri)eT#e ot#er $rands in)l*din& So#ni4 8o#inoor4 and Is(a#ani et) )onstit*te t#e market s#are o% 21 in 8ara)#i-

5istri$*tion Sit*ation
T#is is t#e (er%e)t e'am(le o% t!o6level )#annel distri$*tion !#i)# !o*ld $e %rom t#e man*%a)t*rer to t#e distri$*tor to t#e retailer- @ormall t#e mar&in o% distri$*tor ran&es %rom H to 70 (er)ent (er (a)k and t#e mar&in asso)iated %or retailer is ? to G (er)ent (er (a)k- Alt#o*&# it di%%ers %rom )om(an to )om(an and $rand to $rand $e)a*se o% t#e variation o% t#e si,es and =*antit dis(arit Alt#o*&# esta$lis#ed $rands like Ta(al and Li(ton do intensive distri$*tion !#i)# #as a ma3or dra! $a)k o% (ri)e !ars and ima&e o% t#e (rod*)t sa)ri%i)es as it )an $e %o*nd in lo!er )lass &eo&ra(#i)al lo)alities-

Ma)ro Environment Sit*ation


5*e to t#e nat*ral environment4 Tea is not (rod*)ed in Pakistan4 $*t onl $lended and (a)ked- It is im(orted %rom 8en a4 Indonesia4 Sri Lanka4 C#ina4 "an&lades#4 India and ot#er )o*ntries- A&ents in t#ese )o*ntries (*r)#ase it %rom a*)tion and e'(ort it to Pakistan- T#e !ork on )ommission $asis4 *s*all ten )ents (er k&Unilever (Li(ton) in order to &et $a)k!ard inte&ration is e'(erimentin& in S!at and Mansera to (rod*)e tea- Alt#o*&# no si&ni%i)ant res*lts #ave $een a)#ieved4 t#e are still tr in&- I% t#e &et s*))ess%*l all t#e (rod*)ts lie in t#e %amil o% Unilever !ill en3o t#e lo!ered (ri)es o% tea !it#o*t #avin& to (a t#e im(ort d*t !#i)# !ill !in a )om(etitive ed&e in terms o% )ost leaders#i(T#e le&al environment (osses some o% t#e (ro$lems like Tea sales #ave )ontin*ed to s*%%er %rom ram(ant sm*&&lin& o% tea- Lever (resentl (a s more t#an H01 as ta'es on im(orted tea- T#is #as made tea sm*&&lin& attra)tive- @ot onl *n$randed tea $*t also esta$lis#ed $rands are also t#reatened $ sm*&&led tea %rom A%&#anistan !#i)# is availa$le in t#e o(en market d*t %ree- T#is #as (osed a lot 70

o% (ro$lems %or &en*ine im(orters o% tea !#o )annot )om(ete !it# t#is tea $e)a*se o% its lo! (ri)eT#e So)io6)*lt*ral environment (la s a ver massive role in tea ind*str $e)a*se t#e )#oi)es and (re%eren)es o% (eo(le in di%%erent (rovin)es are varied to a &reat e'tent- In interior Sind# and "alo)#istan4 t#ere are #eav )ons*mers o% 5*st tea4 P*n3a$ likes mi't*re and in 8ara)#i 5anedar is e')eedin&l (o(*lar-

OPPORTUNITY AND ISSUE ANALYSIS


SDAT A@ALYSIS
S ren! "s
T#e re)ent alteration res*lts in Stron& $lend $a)ked *( $ even stron&er $rand ima&eT#e (a)ka&in& is ver attra)tive4 %irst time tea #as $een introd*)ed in $ro!n (a)ka&in& Uni=*e si,es #ave $een introd*)ed %or vario*s se&ments in)l*din& tea$a&s4 stir read To )om(ete !it# Ta(al "rooke "ond #as also la*n)#ed its assortments in mi't*re and 5anedarI"L distri$*tion )om(an 4 alt#o*&# )#ar&es #i&# )ommission )#ar&es4 o%%ers e%%i)ient servi)e in !#i)# it is made s*re t#at (rod*)t !ill $e !idel

77

distri$*ted4 retailers !ill not e'(erien)e s#orta&e o% (rod*)ts and t#e name I"L in)reases more val*e o% t#e (rod*)t-

#ea$ness
It is a (rod*)t $ein& introd*)ed in an alread e'istin& tea market !it# esta$lis#ed $rands@o )om(etitive advanta&e )an $e $ro*&#t in t#is ind*str - Anl massive advertisin& and (romotional a)tivities ma enti)e )ons*mer %or trial-

O%%or uni ies


T#e )ons*m(tion o% tea in)reases !it# t#e &ro!t# in (o(*lation- At t#e moment4 t#e (o(*lation o% t#e )o*ntr is &ro!in& at a rate o% 2-B1 ann*all 4 and tea at a rate o% ?1- T#is means t#at (resentl t#ere is a )onsidera$le o((ort*nit %or t#e &ro!t# o% tea in PakistanT#e initial re6la*n)# o% "rooke "ond S*(reme is limited to 8ara)#i onl 4 #o!ever4 ot#er (rin)i(le )ities !ill $e taken into a))o*nt in t#e %*t*reS(e)iall in P*n3a$ mi't*re $lend )an $e introd*)ed *nder t#e $rand name o% S*(reme- Slo!l 4 S*(reme !ill (enetrate t#e market in ot#er )ities and e'(and its %*t*re market s#areUnilever is tr in& to (rod*)e tea in Pakistan- I% t#is is s*))ess%*l4 t#en m*)# lo!er (ri)es !ill $e o%%ered to )ons*mers and )om(etitive advanta&e )an $e &ained in terms o% )ost leaders#i(-

T"rea s
72

A ri&oro*s t#reat is t#e in)reasin& n*m$er o% $randed and *n$randed tea in t#e market !it# am(le (ri)e di%%eren)e- For t#at4 esta$lis#ed )om(anies need to in)rease t#eir advertisin& and (romotional $*d&et- T#ere is a need to &et a $etter s#el% s(a)e and more retailer (atroni,ation %or t#e )om(an ;s $randUnilever (resentl (a s H01 as ta'es on im(orted tea- T#is rise in im(ort d*t on tea $ &overnment is intended to dis)o*ra&e it;s )ons*m(tion4 !#i)# (ossess to $e a t#reat as it #as res*lted in #i&#er (ri)es %or t#e )ons*mers-

ISSUES A@ALYSIS

T#e market s#are o% "rooke "ond S*(reme in 8ara)#i is de)reasin& da $ da 4 !o*ld it $e more s*ita$le %or t#e )om(an 8ara)#i and )ontin*e !it# "rooke "ond A7 teato divest S*(reme in

I% t#e de)ision #as $een made to re6la*n)# S*(reme4 !o*ld it $e reasona$le to re6la*n)# it )o*ntr !ide-

"e)a*se o% e'(ensive s#el% s(a)es in (o(*lar stores4 !o*ld it $e advisa$le %or "rooke $ond to introd*)e ne! Pa)ka&es and $ear additional )osts or !o*ld it $e more (ro%ita$le %or lon& term to introd*)e more (a)ka&es and in)rease )#oi)e %or end )ons*mer-

Is it (ossi$le t#at t#e market s#are o% Li(ton (!#i)# )omes in t#e %amil o% Unilever) !ill $e )anni$ali,ed $ "rooke "ond S*(reme !#i)# o(erates in 79

almost t#e same tar&et market as o% Li(ton4 instead o% &ainin& t#e s#are o% Ta(al T#e "rooke "ond t#at is $ein& la*n)#ed onl in 8ara)#i !ill di%%er %rom t#e rest4 so !o*ld it )reate an dis)re(an)ies in )ons*mers mind and disr*(t t#e (ositionin& or ima&e o% t#e (rod*)t S#o*ld (ri)e $e set on t#e $asis o% )om(etitor.s (ri)es4 (remi*m on =*alit 4 or desired mar&in s)#emes-

Advertisin& and (romotional ve#i)les s#o*ld $e di%%erent t#an $e%ore as t#ere is an inte&ration o% *((er se&ments #ave $een in)l*ded (s*(er se&ments)-

Marketin& A$3e)tives

A)#ieve tar&et sales o% /000 k&Ida - T#e strate& *sed to a))om(lis# t#is o$3e)tive !o*ld $e to advertise $ *sin& all media ve#i)les sele)ted4 !#i)# !ill (osition "rooke "ond s*(reme to $e t#e $est =*alit $evera&e amon& tar&et market-

A%ter si' mont#s strate& o% s*(reme !ill s#i%t %rom sele)tive distri$*tion to intensive distri$*tion slo!l 4 t#ere $ retailersma'imi,in& t#e n*m$er o%

An)e t#e a!areness #as $een )reated4 t#e main o$3e)tive !ill $e to in)rease t#e market s#are- T#e aim !ill $e to a)#ieve an in)rease in t#e market s#are o% a((ro'imatel 7:1 in t#e %irst ear-

7/

Prod*)in& a (ositive )as# %lo! #en)e in)reasin& t#e &ro!t# rate o% "rooke "ond !ill $e anot#er o$3e)tive-

MAR8ETI@+ STRATE+Y
O&er&ie'
A))ordin& to o*r resear)# tar&et market in 8ara)#i (re%er 5anedar and t#at is t#e reason !# Ta(al 5anedar is so (o(*lar- So S*(reme !ill $e la*n)#ed in $ot# mi't*re and 5anedarT#e (ri)in& o% o*r (rod*)t &ives *s an advanta&e in t#e market )om(ared to o*r )om(etitors4 as most $rands are (ri)ed at Rs-/?Introd*)tor (ri)in& !ill $e o%%ered %or t#ree mont#s %or Rs-9? (ro%it $asis)(no

T#ere !ill $e #eav advertisements done on s*(reme alon& !it# sales (romotional s)#emes $ot# %or t#e )ons*mers and t#e retailers- T#e aim !ill $e to )reate a!areness in t#e (eo(le and to ind*)e t#em in trials o% S*(reme "la)k "re!-

7:

Man assortments o% S*(reme !ill $e taken o*t to )over t#e s#el% s(a)e and #en)e )reatin& a!areness !#i)# !ill in)rease t#e )#oi)e and )#an)e at t#e (art o% )ons*mers-

ro(u)

Tea is an aromati) stim*lant4 )ontainin& vario*s (ol (#enois4 essential oils and )a%%eine- T#e )on)entration o% )a%%eine in tea ran&es %rom 2-:1 to /-:1 and it is t#is )a%%eine )ontent t#at makes tea a *se%*l stim*lant- Tea is t#e $evera&e made !#en t#e (ro)essed leaves o% t#e tea (lant are in%*sed !it# $oilin& !aterIn Pakistan4 tea is onl $lended and (a)ked4 $*t not (rod*)ed- T#ree $asi) )ate&ories o% tea are marketed in Pakistan4 namel

Mi't*re 5anedar C#*ra

7?

5anedar is also kno!n as lea% tea !#ile C#*ra is kno!n as d*st tea- T#ere are aro*nd %ive #*ndred %lavors availa$le in tea- Fine (5*st) tea &rains are distin&*is#ed $ 54 574 52- T#e )odes assi&ned to t#ese &rains )onstit*te t#e ma3or )ate&ories o% tea 6 5anedar 6 "P7 J "P T#e r*ral areas o% Sind are )onsidered to $e #eav )ons*mers o% d*st tea- P*n3a$ #as a #i&# )ons*m(tion o% lea% tea- A))ordin& to o*r resear)# tar&et market in 8ara)#i (re%er danedar and t#at is t#e reason !# ta(al danedar is so (o(*lar- So S*(reme !ill $e la*n)#ed in $ot# mi't*re and 5anedar"e)a*se o% t#e #i&# $rand a!areness o% "rooke "ond S*(reme4 It )an not $e )#an&ed d*rin& rela*n)# $*t i% ma3or alterations- <o!ever t!o di%%erent (rod*)t mi'es %or same $rand in di%%erent )ities ma lead to )on%*sionand dis)re(an) 4 so )on)e(t o% m*lti $rands #as $een e'e)*ted- T#e ne! name !ill $e Supreme

Black Brew !#i)# )omm*ni)ates t#e $ene%its o% t#e (rod*)t s*)# t#at t#e
(rod*)t is stron& in its $lend and )omes !it# t!o assortments demanded $ t#e tar&et market-

ri)e

T#e (ri)in& strate& (*t to !ork is Mark*( Pri)in& Te)#ni=*e !#i)# states t#at a%ter )al)*latin& t#e )ost4 re=*ired mar&in in (er)ent s#o*ld $e in)l*ded to determine t#e (ri)e4 Moreover )om(etition (ri)in& is also )onsidered- T#ere%ore t#e (ri)e is mar&inall #i&# t#an t#at o% )om(etitors to ed*)ate t#e )ons*mers t#at t#e =*alit o% t#e (rod*)t is im(roved and o% #i&# =*alit - For an instan)e (ri)e o% 700& is )al)*lated as %ollo!s Cost for 100 grams Rs 16.0

7G

Packaging cost per box Distributors profit margin Retailers profit margin Total ross !argin Total Price

Rs Rs Rs Rs

0.5 3.6 3.0 2."

Rs 23.3 Rs 26.0

Pri)in& o% ot#er (a)ka&es are 200&ms %or t#e (ri)e o% Rs- :?I64 tea$a&s :0 ()s are (ri)ed at ?:4 tea$a&s are (ri)ed at Rs 72:I6 3ar is (ri)ed at Rs 700Rs-

la)e

T#e )om(an is *sin& a t!o6level )#annel4 !#ere Com(an !ill #ire a distri$*tor !#o !ill !ork on )ommission $asis and %*rt#er more t#e distri$*tor !ill sell t#e (rod*)t to )*stomer !#i)# !ill *ltimatel $e sold to end6)ons*mers- T#at is t#e )#annel o% distri$*tion !o*ld $e %rom t#e man*%a)t*rer to t#e distri$*tor to t#e

7H

retailer- T#e distri$*tor t#at !e #ave de)ided *(on is International "rands Limited (I"L)In %irst si' mont#s t#e "rooke "ond !ill *se sele)tive distri$*tion te)#ni=*e !#ere retailers !ill onl $e sele)ted %or distri$*tion a))ordin& to t#e &eo&ra(#i)al re&ions4 !#ere t#e e'isten)e o% tar&et market is at lar&e Re!ard (o!er !ill $e e')er)ised !it# retailes t#at is t#e t#e mar&in (er (a)k !ill in)rease %or di%%erent ran&e o% sales vol*meLa3a!aa$ em(lo ees t#e (*s# strate& as it o%%ers t#e distri$*tor a mar&in o% Rs / on ea)# $o' o% 2:0 &rams- Similarl 4 t#e retailers are o%%ered Rs 9 on ea)# $o' o% 2:0 &rams- T#is mar&in is )om(arativel #i&# as )om(ared to o*r )om(etitorsDit#in 8ara)#i some o% t#e ma3or areas t#at !ill $e )overed are as %ollo!s> Cli%ton4 5e%en)e4 Tari= Road4 PEC<S4 "a#ad*ra$ad4 85A S)#eme74 Saddar4 +*ls#an6e6I=$al4 @a,ima$ad and +arden-

ro*o ion

In initial si' mont#s (ri)e !ill $e sli&#tl #i&#er t#an ot#er $rands so to in)rease t#e (resti&e o% t#e (rod*)t4 $*t a%ter t#at s)#emes !ill $e introd*)ed like 701 %ree

7B

!#i)# en#an)es t#e a%%orda$ilit and does not insti&ate a (ri)e de)rease !#i)# ma res*lt in t#e )#an&e o% (er)e(tion in )ons*mer.s mind- @ t#at )an #a((en eit#er in %orm o% loss o% =*alit or loss o% salesS*(reme em(lo es t#e (*s# strate& as it o%%ers t#e distri$*tor (I"L) a mar&in o% Rs 9-:I6 to Rs /I6 on ea)# Pa)k- Similarl 4 t#e retailers are o%%ered Rs 2-:I6 to Rs 9I6 on ea)# Pa)k- T#is mar&in is )om(arativel #i&# as )om(ared to o*r )om(etitors- T#e o$3e)tive is to in)rease t#e sales 4 in)rease t#e a!areness4 and s*stain (re%eren)es t#ro*&# t#e distri$*tion net!orkAt t#e same time4 t#e (*ll strate& is also $ein& em(lo ed- T#e )ons*mers are $ein& dire)tl rea)#ed t#ro*&# t#e e%%e)tive media (lannin& Follo!in& are some o% t#e s)#emes in)l*ded in t#e (lan

Sam(les in %orm o% sa)#ets !ill $e distri$*ted to retail stores on t#e $asis o% )*stomers $* in& items more t#an 700Rs !ill $e &iven 2 Sa)#ets to ind*)e (eo(le to tr t#e ne! (rod*)t I% )*stomers $rin& 70 (a)ks o% s*(reme t#e !ill $e &ettin& 200 Rs )ard !ort# o% $alan)e 5is(ensers !ill $e (la)ed in 70 di%%erent lo)alities o% 8ara)#i4 !#ere t#e e'isten)e o% o*r tar&et market is at ma'To( Retailers !ill $e &iven 700 Pa)ks (er mont# %or t#ree mont#s 900 Pa)ks

a)$a!in!

20

In %ast movin& )ons*mer &oods (a)ka&in& and la$elin& (la s an im(ortant (art<o!ever t#ere are ver sensitive de)isions #ave to $e made %or instan)e )olor s)#eme4 t (es o% (a)ka&es4 distri$*tion and retailer mar&in on di%%erent (a)ks4 )omm*ni)ation )riteria and et)5i%%erent Pa)ka&es o% S*(reme "la)k "re! 7- <ard Pa)ks ( Small ) o% 700& 2- <ard Pa)ks ( Famil ) o% 200& 9- Fars o% /:0& /- E)onom (a)ks o% :00& :- Tea$a&s o% :0 ?- Tea$a&s o% 700 G- Stir read (a)kin&-

T#e )olor s)#eme #as $een )#osen !it# )are%*l )onsideration o% red and $la)k &radients- Ari&inall "rooke $ond S*(reme served onl lo!er and middle )lasses@o! t#at *(!ard stret)# #as $een done and *((er )lasses #as also $een tar&eted4 so its ne)essar to )omm*ni)ate #i&# (resti&e t#ro*&# la$elin&- Moreover red and $la)k s)#eme is )#osen to s#o! t#e stron& nat*re o% its $lend-

A) ion Pro!ra*s
An A*&*st 2nd T#e Prod*)t "rooke "ond !ill $e la*n)#ed at t#e ven*e AMI main )am(*s and its s)ale !o*ld $e 8ara)#i !ide An A*&*st 7Gt#4 Se(tem$er Gt#4 A)to$er :t# advertisements !ill $e (*$lis#ed in leadin& ne!s(a(ers-

27

A%ter si' mont#s o% La*n)#4 t#e )om(an !ill )ommen)e a do!n!ard stret)#4 and !ill la*n)# a d*st tea !#i)# !ill $e tar&eted to lo!er )lass in)ome se&ments and interior sind#-

An alternate da s advertisements !ill $e la*n)#ed in t!o di%%erent )#annels (PTV and +EA) on t#e $asis o% t!o %i'ed s(ots4 ie G>90 and B>90-

Advertisements !ill (la)ed on Ma&a,ines like <erald4 s#e4 and Ma&4 on)e ever mont#-

An mont# end 5istri$*tor !ill visit ea)# retailer and &ive t#e )om(ensation on sales (romotion s)#emes4 )om(an #as )#osen

T#e )om(an !ill (arti)i(ate in melas4 trade s#o!s4 and e'#i$itions o% all kind to in)rease t#e a!areness o% t#e ne! la*n)#-

Con)lusion
Dit# re)i(ro)it o% *nderstandin& and stren&t# o% )#ara)ter as t#e %o*ndation o% Supreme Black Brew (#iloso(# 4 "rooke "ond takes t#e lead as a %ore6r*nner in so(#isti)ated4 et#i)al )ons*mer marketin&4 sellin& and distri$*tion o% tea t#ro*&#o*t t#e !orldT#e tea ind*str o% Pakistan )onstit*tes t#e tar&et market o% nearl #al% o% t#e (o(*lation and earl )ons*m(tion is 7904000 tons-

22

And t#e )ons*m(tion rate is still a))eleratin& at a %ast (a)e4 a))*m*lates to $e ?1 ann*all Lookin& at an e'tensive tar&et market o% eleven million one )an sa t#at t#ere is still a )#an)e to )om(ete !it# alread esta$lis#ed $rands- T#e (illars o% t#is (ro3e)t #as $een laid on to t#is ver %o*ndation T#at o*r (rod*)t is (ositioned as a =*alit (rod*)t4 !#i)# is easil a%%orda$le- Alt#o*&# t#e task o% ed*)atin& and s(readin& a!areness ma $e a di%%i)*lt task4 $*t t#e ne! $rand !ill $e $a)ked $ t#e !ell6$*ilt identit o% its (arent $rand- T#e ne! $rand !#i)# mat)#es t#e (re%eren)e o% tar&et market !ill s*))ess%*ll )ommit t#e task o% deli&#tin& )*stomers and at t#e end o% t#e ear4 it !ill &et a s*))ess to &ain market s#are o% 7:1 and )a(itali,ation o% ?000& o% "la)k $re! ever da -

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