Professional Documents
Culture Documents
TERM REPORT ON
SUBMITTED BY:
Urooj Khan
Salman Saeed
Irfan Bhatti
Akbar Nagaria
Owais Idrees Khan
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ACKNOWLEDGEMENT
We would like to thank Ms. Fareen Razzak for providing us the opportunity to work on
this report. This report has enabled us to apply almost all marketing concepts that were
covered during course and will help us to embrace further learning of the subject.
We would also like to thank Mr.Agha Ali Jaan, (Brand Manager, Danedar, Tapal Tea Pvt
Ltd, Pakistan) and Ms.Hafsa Farooq, (Assistant Brand Manager, Ice tea, Tapal Tea Pvt.
Ltd, Pakistan) for providing us with priceless information required for the making of this
report.
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EXECUTIVE SUMMARY
From the dimmest of history when around 2727 B.C. a few leaves of a wild shrub tea
blew into the royal bowl of boiling water being sipped by the legendary Emperor Shah
Nung, known as the Divine Husbandry as well as a patron of arts. Tapal Tea here brought
tea from the royal bowl to the common man's cups as the most sought after beverage the
country over.
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gain a big share of Pakistani market. They still are growing and hope to be a leader in a
market in coming years.
countrys total population lives in rural areas (about 66 percent out of 150 million) where
tea consumption is in majority. It is the most popular and cheapest beverage. And tea is
world's second most popular drink (after water). It's easy to make, affordable and one of
the fastest growing beverages (6.5% over 5 years).
Blending, Packaging and distribution are nominated by Unilever, the worlds largest
transactional corporation in the tea industry, and Tapal Limited, a very competitive local
firm. Both are based in the port of Karachi. There are some other minor players. Out of
recent total legal imports of 114,000,000 kilograms, 70,000,000 kilograms went to the
packers, while the rest was imported by independent traders who sell loose tea in open
markets.
TEA ADDICTION
In Pakistan is can be taken as a symbol of relaxation almost every 10th person is a tea
addict and undoubtedly feels proud of this addiction. Wildly recognized with its flavours
of light yet effective green tea, lemon tea, the amazingly sab ki favourite doodh patti,
the occasional Kashmiri Chai, or the delicacy of herbal tea, we all love and adore tea.
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OBJECTIVES
To transform our competencies into the best advantage for our clients.
STATEMENT OF COMMITMENT
Never Compromise on Quality!
This commitment to quality has resulted in a high level of customer satisfaction and
unflinching brand loyalty. Tapal believes to act locally, but think globally
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TAPALS PRODUCTS
1. TAPAL DANEDAR:
Tapal Danedar is pioneer of the Danedar
category in Pakistan. Tapal Danedar remains
a favorite around the country with its grapenutty appearance, rich golden color and
strong refreshing taste. In fact its popularity is such that other companies have
launched their own versions of this blend, but Tapal's remains the original and
ultimate Danedar because of its unique color, aroma and taste. Also available in
double chamber tea bags, today Tapal Danedar enjoys the position of the "No.1
Tea Brand" in Pakistan.
MARKET SEGMENTATION
The market for Tapal Danedar is highly
commodity driven and this product is easily accessible available through out
Pakistan. They have divided market into segments and choose working and
middle class.
MARKET TARGETING:
Tapal danedar is basically targeting urban people.
Danedar brand has the characteristics to remain intact even after a long
time. So it targets customers who want to fresh for longer time.
Tapal target the middle as well as lower class because they think middle class is
most important class
It is made to target customers who respond towards light and soft taste
The target audience will be primarily working class starting from the age
of 20 to round about 55 years of age.
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Density
Region
Income
Lifestyle
Social class
Taste preference
Age
Urban
All over Pakistan
Under 15000 - 30,000 RS
Believers achievers and strivers
Middle class, Working class
Light
10 and above
Product:
o Color, Aroma and Taste
o They have introduced 3 trade mark soft pack variations, 3 enveloped pack
sachets, a high utility jar, a pouch and the ground-breaking convenient
teabags.
Price: Company is offering medium range price so that most no of people can easily
afford it
Promotion:
o
o
o
o
Print campaign
Advertisements
Focusing on har lamhe ki chai
Started a show chai ke lamhaat laaye laakhon ke inamaat in order to give
benefits to customers it was launched at ARY DIGITAL,ATV,APNA etc
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Urban
All over Pakistan
Rs 25000 and above
Traditional (family)
Upper middle class
Strong
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SHADES OF GREEN:
Tapal Shades of Green is an aromatic combination of the
Density
Urban
Region
Across Pakistan
Income
Rs. 25,000 & above
Lifestyle
Thinkers achievers &Health conscious people
Social class
Lower uppers and uppers
finest carefully selected tea leaves and the tantalizing freshness of natural Jasmine,
Elaichi and Lemon.
Jasmine
Infused with Jasmine flowers, Jasmine Green Tea opens a new window to your mind. Its
vibrant essence breathes new life into your sense with a distinct soothing effect. Jasmine
Green Tea is a winning combination of alluring fragrance and health.
Elaichi
The earthy flavor of Elaichi Green Tea has a pulsating nature that lifts your body to a new
level of clarity giving you more revitalization.
Lemon
Lemon Green Tea with its rich taste regenerates your soul. It is your perfect soul mate to
indulge in a rejuvenating experience of its refreshing essence
Market Segmentation:
Tapal has segmented on
the basis of health
conscious consumers
who are very health
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Market Targeting:
Tapal family mixture is again targeting urban people.
It is made to target customers who are health conscious
It is made for health benefits.
As it is made from jasmine ,lemon and elaichi which are harmless for human
beings
Market Positioning And Differentiation:
By offering health benefits, it has maintained strong position in the minds of consumer.
Product:
o Color
o Aroma
o It activate your senses
o Suitable for your health
Price: Company is offering medium range price so that most no of people can
easily afford it
Place: Company is trying to promote it all over Pakistan
Promotion:
o Billboards and advertisements were launched
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CHENAK:
An economy dust embracing high grown flavor teas
proportionally blended with medium grown Kenyan
golden color teas to give an all round cup at a reasonably
lower price Chenak Dust infuses quickly and gives the
consumer a strong bright color cup within a very short
time.
Chenak Dust is popular with those tea lovers who take
several cups of tea due to its friendly price.
Market Segmentation and
Targeting:
Tapal have segmented the rural Sindh into upper interior Sindh and lower interior
Sindh. Tapal Chenak is targeted to the lower interior Sindh, for the middle lower
and lower end segments of the
market that prefers strong tea, but
cannot afford a high quality tea.
It is made to target local people of
Sindh
It is for those people who have low
earnings.
Density
Region
Income
Lifestyle
Rural
Interior upper Sind
15000 RS and less
Traditional people who
Social class
Taste
preference
Age
7 and above
Promotion:
Issued Om shanty om calendar
Launched a show dar dar par inam
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TEZDUM:
Tapal earned a unique distinction in 2003 as it became
the first tea company to introduce hassle-free, extra
strong round teabags in Pakistan. With no strings
attached, these teabags are easy to use and their shape
guarantees an ideal infusion of taste and aroma for a
refreshing, strong cup of tea. With the tagline, Lage
Thaa Kar Ke! Tapal Tezdum has hit home with the
people who like strong tea
Market Segmentation:
Density
Region
Income
Lifestyle
Social class
Taste preference
Market Targeting:
People who love to drink strong tea
It is targeted people who has rular background
It is made to hit those people who belive in
Quality
Market Positioning And Differentiation:
Tezdum is considered as strong tea which gives you
strength to cope with your problems
Product:
o Color
o Aroma
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o Strong taste
Price: They have launched 125 gm packet but strong contents so u use little
amount with better results
Place:
o Made available at door step
Promotion:
o Launched advertisement about it strong taste
MEZBAAN DUST
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Tapal Mezban Dust has an attractive leaf appearance, which is neat, black and grainy. It is
the finest quality dust blend which is carefully selected for its quick liquoring
characteristics.
Only high grown Kenyan teas are used for this blend due to their high concentration of
flavor and strength. Mezban Dust has a smooth, thick and full cup with an irresistible
aroma making it a perfect cup at any time of the day.
Market Segmentation:
Density
Region
Income
Lifestyle
Social class
Taste preference
Rural
Interior upper sindh
Under 10000
Traditional people who prefer strong taste
Lower middle class
Strong
Market Targeting:
Tapal have segmented the rural Sindh into upper interior Sindh and lower interior Sindh.
It has targeted the upper rural market of Sindh by taking out a product Mezban Premier. It
is mainly targeted towards old traditional people who prefer strong tea
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The positioning of the brand has been strategically achieved to symbolize the bonds and
relationships that underscore the human equation for the people of Sindh along with
celebrating their rich heritage and culture.
Product:
o Color
o Aroma
o Strong taste
Place:
o Door to door selling
Promotion:
o Mezbaan trade dhamaka :trader were provided rewards
o Announced customer promotion titled rishton ka safar
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ICE TEA:
The invention of ice tea is generally believed to have occurred in America in 1904,
although some evidence has been
presented that it may have been drunk
in the South well before that. Like
many great inventions, ice tea was
created completely by accident.
Market Segmentation:
Density
Region
Income
Lifestyle
Social class
Taste preference
Age
Urban
Across Pakistan
35000 and above
Inovaters thinkers and experiencers
Lower upper class and upper class
bitter
18-40 years
Price :
o The introductory price of ice tea is Rs 30 and thus it is not very expensive
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Place:
o They have not done efforts to make
available all over country but if they try
to promote it can easily get available to
every where because Tapal network is
world wide.
INTELLECOVERAGE
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Internal Factors
Strengths
Weaknesses
Management
Product Line
Differentiated, Variation in
products
Marketing
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Personnel
Finance
Research &
Development
Continuous efforts to
research trends an reinforce
creativity
External Factors
Opportunities
Threats
Consumer/Social
Competitive
Technological
Maintenance of proper
website which subscribes
and provides information
regarding long production
line.
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Economic
DISTRIBUTION NETWORK
Distributors:
Tapal deals only with distributors on contract basis with no other intermediaries involved.
They do not extend credits to their primary customers and all their sales are mainly cash
based.
The contract comprises of a specification of a complete volume of the market, Tapals
share in the market, the profit margin of the distributor, the sales that will be made by the
distributor, as well as the complete route plan of the distribution network.
Tapal chooses their distributors after analyzing their complete financial background and
Public Relations. They provide the distributors with a detailed description of the
distribution network; all the costs and expenses involved and when the distributor agrees
the contract is signed. This contract involves the condition that the distributor has to be
brand loyal, pro-active and cannot deal with other tea companies otherwise the contract
will be terminated. The contract includes a clause that describes its termination process.
Either of the two parties: Tapal and the distributor, can terminate the contract on one
month basis.
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Company
Distributor
Whole sellers
Universities
Retailers
Restaurants/ Institutions
Offices
House holds
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COMPETITORS
Tapals competitors include
Lipton
Tetley
Supreme
Unbranded tea suppliers
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TEA MARKET SH
Tapal has 46% share in tea market , while lipton shares 23% ,brooke bond and
Tetley has 10 % share .
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DISTINCTIVE CAPABILITIES
Distinctive capability varies according to the
products as it goes with the tea industry
ORGANIZATIONAL PROCESSES
Tapal danedar tea has very effective research and
development through which they are having very
innovative brands with production efficiency.
SKILLS AND ACCUMULATED KNOWLEDGE
Tapal danedar has developed impressive skills in operating its business model at very
high quality accumulated knowledge has guided management improving business design
overtime
COORDINATION OF ACTIVITIES
Coordination of activities among different departments is the essence of tapal danedar.
Research and development supports other departments to have controlled and timely
production.
ASSETS
People inside the organization and Tapal itself brand names are assets of the company.
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MARKETING MIX
PRODUCT
Tapal has a variety of brands each catering to different market segments. After Tapals
unique Family Mixture became Karachis largest selling brand, the company was
encouraged to innovate further. As a result an entirely new category brand called Danedar
was created and launched. Tapal Danedar became the countrys largest selling tea brand
with a loyal following, which shows that Tapal has been successful in creating a strong
Brand Image amongst its consumers.
PRICE
Tapal people never wanted to compromise on quality so they adopted value based
pricing. As Tapal specifically catering to different segments of the market so its prices are
based on its effective value to customers relative to other products. Also the prices are
different for different SKUs.
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PLACE
Now Tapal has a distribution network spread across Pakistan, from Karachi to Khyber
with over 400 distributors. Extensive training programs are provided for the devoted sales
personnel. The popularity of its fine brands is unabated, making it the No 1 national tea
company in Pakistan.
Tapal caters to its customers by providing Tapal Danedar and Family Mixtures to more
than 140,000 outlets in Pakistan, which include superstores, department stores, general
stores, medical stores, paan walas, grocery stores, merchants, etc. Grocery stores and
merchants together provide 80% volume of the tea sales.
PROMOTION
Electronic Media
Initially, the company relied heavily upon print media but this trend is changing now
because of the in customers life style. Right now, company is doing intensive advertising
through networks. In their advertisement they hire the services of renowned celebrities.
Tapal and Music
With the view that the younger generation will be Tapal's future customers, Tapal is
actively supporting the fast developing music industry in Pakistan. It has sponsored the
leading singers in Pakistan and actively participates in music concerts.
Sales Promotion Strategies
The company is running different sales promotional schemes at different times of the year
depending on the sales of the company.
Tapals brand is backed by planed strategy implementation and followed up with
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effective communication its advertising and promotion is touching all aspects of media
and market opportunities.
PROMOTIONAL MIX
Communication of the value created by the company is very important; this stage in our
view is the trickiest stage of the entire value creation process. The entire effort of creating
the value will go down the drain if the communication is not done properly. There are
cases when a company fails to communicate the value to the selected target customers or
even worse when the target customers get the wrong message. There are many ways to
communicate the value created; Tapal has used the following tools and techniques to
communicate the value they have created for their target customers.
Advertising
As far as Advertising is concerned, the company has shifted away from television
advertising to MASS ADVERTISING. The basic reason for the shift is that the
organization realizes that television advertising is not the same as it used to be around 1213 years ago. With a wide range of television channels available it is very difficult to
convince the viewer to not to change his/her channel. But this does not means that they
do not indulge in television advertising at all. The new brand Tapal Mezban Dust is
targeted for the customers of interior Sindh. This brand extension needs both
TV as well as mass marketing as it is struggling with in the awareness stage. The TV adds
show the culture of Sindh and tries to correlate the sindhi heritage of hospitality with the
image of the brand. Ads are shown on KTN as it is believed that sindhi viewers do not
change the channel during commercial breaks as it is the only sindhi channel.
Mass Advertising in the form of billboards are the most common form of advertising. The
expenditure ratio of mass adverting to television advertising is 1.5 to 1. Big billboards
with high color resolution for Gulbahar (their new green tea) are good at tempting the
customer to try the crystal clear green tea. The portrayal of men wearing formal suits and
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having tea at restaurants has persuaded people of the corporate sector to try the slightly
expensive green tea.
Advertising on the new Fm radio channels like City Radio or FM 107, FM 96 is also
extensively done for the young urban crowd for family mixture.
Public Relations
As far as publications such as catalogues and brochures are concerned the company does
not have any such publications. They have not yet focused on the possibility of issuing
any sort of publications for improving upon public relations.
Personal Selling
The company has a B2B (business to business) approach as far as personal selling is
concerned. Sales rep visit hotels like Marriott and Sheraton to
offer bulk amounts at a discount rate. Through this process
they are able to sell more and this serves as an easy method
for further communication of the value which was promised
primarily in ads and billboards. Face to face communication
of value is much more effective than advertising as
immediate feedback can be received which helps in
ameliorating the communication process.
Direct Marketing
Again no form of this communication is taking place at a
formal level. The company does not have a separate department. The only form of direct
marketing is done by the brand managers who readily receive any complaints and
comments about their brand through emails but do not respond to those emails. They only
look after certain complaints which have been reported consistently.
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Sales Promotion
Sales are promoted by encouraging the market segments
through free sampling. The target segments are given free
samples of the tea brand which is targeted for them. Free
sampling of such a brand (Tez Dam) was carried out for
almost 2 weeks. After 2 weeks a lot of students bought the
product although the product was no more for free and had
no market before the free sampling was done.
Sales Force
Tapal at present has hard any notable sales force. When asked why? The company
manager responded that since Tapal makes tea. Tea is a convenience product, such
products are widely available, and customers have frequent purchase with little shopping
effort. Such products have little customer involvement; hence a well equipped sales force
is not essentially required. According to the manager of Tapal, making sure that the
product is available all the time is more important.
ACHIEVEMENTS OF TAPAL:
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The
country.
The first tea company to introduce metal-free
tea bags.
The first to develop an entirely new blend and category-Tapal Family Mixture (the
mixture of leaf & dust).
The first to invent the highly successful brand Danedar Leaf Blend.
The first to market Kenya teas in Pakistan.
The first tea company to be awarded the ISO 9001/2000 Quality Certification
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