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ACKNOWLEDGEMENT

At the completion of this project, first of all we will be enormously thankful to God almighty that has endowed me with valuable abilities and qualities to perform things well for good purpose. Secondly we are greatly indebted to worthy teacher Mrs. Ayesha Zahid who has taught us the basic concepts of Marketing. We would also like to thanks all the people and our friends who helped us lot during the survey and the information which we gathered from the various sources.

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Table of Contents
Serial No. 1 2 3 4 5 6 7 8 9 10 11 12 Topics Executive Summary Introduction Tea Industry Analysis About Tapal Tea Product Line of Tapal Page No. 1 2 3 7 9 19 25 29 31 33 35 39

Tapal Tea with Respect To 4 Ps SWOT Analysis Main Competitors Environmental Factors Target Segment Positioning Recommendations

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13

Conclusion

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EXECUTIVE SUMMARY

Tapal, the pioneer in Danedar chai, is one of the leading company in Pakistan. In this project we have tried to analyze all the marketing aspects regarding Tapal tea. They started as unbranded tea blend to catch to teashops and restaurants in the Karachi region and meet the demand for a strong, yet aromatic blend that would satisfy a wide range of customary. We have also analyzed the different environmental factors, and how they affect the marketing strategies of the organization. Their environment ranges from social, cultural to legal factors. Our research showed that tapal tea industry focused a wide range of customers ranges from age 15 – 65 and all the people either belonging to rural or urban places, introducing the typical taste and name according to the particular areas. Our research showed that tapal is expanding its market by introducing new flavored brands, according to the tastes of the people.

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INTRODUCTION
The main reason for the selection of Tapal brand is that it is the pioneer in the quality of Danedar but it is still not so much famous like the other brands Lipton and supreme etc., which suits our requirement of the project. Tapal is the company which is only involves in the production of tea. On the other hand Lipton and supreme which are the brands of Uni Lever. So it is very convenient for us to analyze this.

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SITUATION ANALYSIS
MACROENVIROMENTAL FACTORS Social and Cultural Factors:
Social-culture factors consist of institutions, people and their values and the norms of behavior that are learned and share. The social component describe the characteristics of the

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society, it’s demographic. The cultural component deals with the people values and behavioral norms. Off course these factors are not in the control of the company but fortunately it is in favor of company as there is tremendous consumption of tea. “Masses of Pakistan are no doubt found of tea, having annual consumption of 140 metric ton.” At the moment there is no such social or cultural factor that is apposing tea consumption. Tapal is the only local company which establishes itself, and people some time do prefer local product, so the socio-culture are in favor of tapal.” (Dawn, 18 Sep, 2003)

Economic Factors:
Economic factors include income, inflation, productivity, and unemployment. Generally a healthy economy is good for both the consumers and marketers. Basically there is an inflationary trend generally and the purchasing power of the people is effected so all such things are beyond the control of the company. According to a survey, Tapal has a great advantage in this respect, as a local company, their price is low, which suits most of the population of the Pakistan.

Technological Factors:
Technological innovations include all the activities involved in translating technical knowledge into a physical reality that can be used on societal scale. A classical comments about the technology “business that have been slow to react when major

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innovation have invaded their industry have often relinquished hard-won position in a very few years. The Tapal team is committed to providing the best teas, at the best prices using the latest technology available. They have installed a sales automation system (SAS) in their process.

Ecological Factors:
Ecological factors consist of our natural surroundings. No doubt Tapal Tea Company is ecologically friendly.

Legal Factors:
Legal factors consist of the government’s rules and regulation that apply to organization. No one is like to being regulated, so that factor is beyond the control of the company and company has to adjust its strategies according to the rules. Being a local company Tapal tea adjusts itself easily according the rules given by the government, and they maintain their strategies according to the policies of the government.

Competitive Factors:
“Competition, factors are the 1- nature of the competition 2- entry and exit of competition 3- major changes of strategy by the competitors” domestic and international is another

important factor of the external environment. Three competitive

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As far as the competition is concerned there are two major competitors of the Tapal tea company i.e. Brook bond and Lipton both belong to Lever brothers, and other competitors is the Loose tea which accounts for the 30% of the share.

INDUSTRY ANALYSIS:
Presently Pakistan is meeting its entire tea requirements through imports till 1971 it had a surplus because of production of this commodity in the Eastern Wing (then known as East Pakistan) in great volumes. Consequent on the loss of the Eastern Wing, it had no alternative other than importing tea. It thus turned into an importing country from an exporting one. This 'table-turned' situation proved a blessing in disguise. In order to reduce its dependence on imports, Pakistan planned to produce its own tea and started to actually produce it on an experimental basis in 1980 in Mansehra district of NWFP which has a favorable climatic and soil condition for tea production. Till recently, Pakistan has been importing enormous quantities of tea each year footing a huge bill in hard-earned foreign exchange. Presently, tea in the country is being cultivated on 87 acres of land. This acreage is expected to rise once our farmers have become conversant with the technique of production and also become sure that their harvest would be lifted without any difficulty. As for processing, a tea-processing unit has already

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been set up in Shinkiari in Mansehra district. The processing machinery has been imported from China that has a producing capacity of 1000 kilogram of black tea per day. The processing plant has recently gone into production. With the successful commission of the plant, it is expected that Pakistan will soon emerge as a tea-producing country, in the near future. Besides the above plant processing black tea, a locally fabricated mini-plant has also been set up in the country. It produces about 15 kg of green tea daily. Then this tea is being sold in different markets of the country and the consumers at large assess its quality better than the imported tea.

General State of Economy:
As far as the state of economy is concerned Pakistan’s economy is mostly depend on agricultural. The state of industrial sector is precarious because there is more than five hundred sick industrial units, there is a lot to do in this sector for its development moreover the balance of payment has had been unfavorable since the very inception of Pakistan except a very few years and economy is under the great burden of foreign debts.

Market Size
In south Asia tea consumption is very high, as it may well be judged by this fact that in Pakistan the annually tea consumption is 140 metric ton. It is a profitable industry.

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Per Capita Consumption:
The per capita consumption of tea in Pakistan is about one kilogram. The factory set up at Shinkiari in Mansehra to be commissioned this year with its limited production will be able to meet only a fraction of the country's requirements. But with the passage of time the tea production in the country will continue increasing. It is planned to undertake cultivation of tea on 15,000 acres in phases. With their efforts for tea production, the prospects for a flourishing tea industry in the country are pretty bright. This situation offers an excellent opportunity to both the individuals and the companies wishing to reap rich dividends by undertaking the cultivation, harvesting, processing and marketing of a lucrative product like tea in a country like Pakistan where already exists a great demand for the commodity. It may also be emphasized that tea is a highly rewarding cash crop that has a gestation period of four years. From the fourth year onward the tea plantations can continuously produce tea for 95 to 100 years. With the successful efforts of producing tea in certain district of NWFP, it can be gathered that tea may be grown in certain districts of high altitudes in Balochistan as well. The Pakistan Agricultural Research Council (PARC) having expertise and financial resources may be called upon to carry on the required research on the possibility of growing tea in Balochistan. In this connection, it is relevant to remind the PARC

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that at one time in the pre-independence days Balochistan had a flourishing vegetable seeds industries catering to the needs of the entire Indo-Pakistan sub-continent. It could be possible due to the favorable weather and soil condition for growing insect-free seeds. Unfortunately, on Pakistan coming to existence, this industry went into oblivion due to the exodus of non-Muslim farmers to India who was well conversant with the growing technique of seeds. The concentration of production of seed was mostly in the hilly areas. On the same analogy tea-cultivation needing somewhat similar climatic and soil condition may be successfully undertaken.

The Economic Situation of Industry:
In the Pakistani tea industry, a company that has revenue and skill to do this business can enter in this business. The barriers for the new entrants in tea industry are average one. If an organization has good contacts with the tea growing farmers and it know the process of making the tea it can easily enter in this market. But the big giants of the tea industry like Lipton, Supreme and Tapal will give a tough time to the new company. The government is encouraging the business activities in the country therefore no such barriers from government side. The concept of rivalry is present in almost every sector of Pakistan’s economy. In tea industry the Lipton, Supreme and Tapal are the main competitors so there is a bitter rivalry between them. In fact Lipton and Supreme both are the brands of unilever but they also compete with each other. The main substitute of tea is Coffee;

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also include Cold drinks Soft drink and Hard Drinks, Juices (Fresh and packed). The bargaining power of the buyer is not that high because the tea is having certain fixed prices. The branded tea has fixed price and the usually buyer customer pays has the

price. However the some power bargaining

in the sense that he can buy any low price tea because many options are available in the market. The bargaining power of the supplier is also dependent on the situation. Sometime the tea cultivators are in the strong position and sometime the tea manufacturers are in power. It all happens according to the demand of the tea crops. Threats of new entrants are moderate as setting a tea manufacturing plant now requires a reasonable amount of investment. On the other hand many multinational tea brands can avail the opportunity to enter the Pakistani market.

The Standing of Tapal Tea Company: (Market Share & Competition)
“Tapal, the pioneer in Danedar chai having 25% market share is on second number and serving the consumers in a

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satisfactory manner. It is not a sale oriented company; its first objective is to satisfy the consumer.”

Competitors:
Loose Tea:
Loose tea occupies the 2nd largest market share that is 30%, of course having a significant impact on the sales figure of the companies, manufacturing tea & of course Tapal is one of them.

Uni Leaver:
It is a multi national corporation and has got several business units, manufacturing different things like soap, toothpaste, edible oils & other consumer items. Dealing in various consumer goods, it is also manufacturing tea under the brands of yellow label & supreme, having the largest market share of 45% & immense repute in the tea manufacturing companies. Lever brothers have also bought its manufacturing plants in Kenya. In tea manufacturing they are the market leader.

Others:
Others small companies are very meager like vital tea & primer tea etc. so this other category accounts for 0.5% only of the total market. The tea market with respect to market share

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occupied by the above mention competitors can well be judged by having a glance on pie chart.

ABOUT TAPAL
The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family. In 1947, Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal. Against tough competition Adam Ali's unique blend, later named Family Mixture, became a hot favorite and eventually the largest selling brand in the unorganized tea market. From this auspicious beginning, Tapal moved from success to success introducing tea brands to suit every taste and pocket, sold from its retail outlet in Jodia Bazar, Karachi. The quality of Tapal teas soon became legendary and people from all parts of Karachi started lining up at the outlet to purchase tea. For their convenience, tea distribution was initiated to retail outlets around the city. The company continued to grow under the management of the founder's son, Faizullah A. Tapal. Today Tapal Tea is managed by the founder's grandson, Aftab F. Tapal. After studying abroad, Aftab Tapal returned to Pakistan to introduce professional management and unique production ideas to the business. A well trained tea taster and tea connoisseur himself, Aftab Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan. His progressive outlook

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resulted in giving further strength to the foundation of quality laid by his family. Making a modest beginning over half a century back, today Tapal has become the largest, 100% Pakistani owned Tea Company in the country. It has modern tea blending and packaging factories, warehouses equipped with state-of-the-art equipment and a team of highly dynamic professionals headed by Aftab Tapal himself.

A Saga of Success:
Tapal's success has astounded many. However no magic formula lies behind its growth other than hard work, dedication and of course unique tea blends. As a result, Tapal has won the hearts of countless tea drinkers across the country.

Mission & Vision:
Tapal's deep rooted culture and core values differentiate it from its competitors. It is built on sound principles and practices; not dominated by a group of individuals. Its greatest asset is its people; and the consistency of principle and policy give the direction.

Objective: “Tapal’s objective is to satisfy the consumer”.

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PRODUCT LINE OF TAPAL Brands of Tapal:
From the house of TAPAL – A unique combination of high- grown Kenya tea leaves and dust, that gives a refreshing aroma of leaf and strong taste of dust all together in one cup. Tapal Chai Family Mixture is the pride of Tapal developed by the forefathers in 1947 and thus creating a new category of Mixture in the tea market It is the blend that started the Tapal success story, and now the other tea companies are following Tapal’s footsteps by entering the market with similar blends. Danedar Leaf Blend Pioneer of the Danedar category in Pakistan, Tapal’s Danedar

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remains a firm favorite around the country with its grape-nutty appearances, rich golden color and a strong refreshing taste. In fact its popularity is such that several multinationals have launched their own versions, but Tapal’s remains the original and ultimate Danedar because of its unique color and taste.

Tapal Danedar

Gulbahar Green Tea

Tapal Jasmine Green Tea

Tapal Family Mixture

Tapal Special Teabags

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Chenak Kenya Dust

Highly

Mezban Premier Dust

Tapal Special Round Teabags

Tapal Safari Chai

Tapal Tezdum

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Target Segment and markets of the organization
“The division of market into different homogeneous group of consumers is known as market segmentation”. There are 3 types from which segmentation can be performed • Customer based Segmentation • Product related Segmentation • Competition related Segmentation As far as the brand Tapal is concerned the market segment of Tapal is so wide. Tapal is the only brand in Pakistan that has many varieties as compared to another brand available in Pakistan and they produce separate variety to segment particular kind of users. Tapal divide its market into different segments and then offer their brands according to their segments. Tapal offered their upper brands in different locality and to different peoples as well. It basically emphasize on geographic and psychographic conditions.

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Tapal Danedar
Pioneer of the Danedar category in Pakistan, Tapal Danedar remains a favourite around the country with its grape-nutty 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 color, and ultimate of its and Danedar unique because

aroma

taste. Also available in double chamber tea bags, today Tapal Danedar enjoys the position of the "No.1 Tea Brand" in Pakistan.

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Tapal Family Mixture A unique combination of highgrown Kenya leaf and dust tea, Tapal Family Mixture is the pride of Tapal. in the Developed in 1947, It gives it a created a completely new category tea market. refreshing aroma of leaf and the strong taste of dust- together in one cup. It is the blend that started the Tapal success story and many other companies followed Tapal in introducing similar blends.

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Tapal Safari Chai
Tapal Safari is made from the finest Kenya leaf teas and provides extra cuppage of great tasting tea to the consumer. Tapal Safari chai, with a safari theme, is aimed at adventurous people.

Mezban Premier Dust

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A full-flavoured dust that delivers high quality at a very economical price, Mezban Premier Dust is the blend for consumers who prefer tea with a strong flavour & taste. Originally developed for hot tea shops, Mezban has become a favourite amongst household consumers as well. It is the most popular brand of tea in Sindh. The name of the brand itself is a characterization of the typical hospitality that is inherent to and a matter of pride for the people of Sindh.

Tapal Tezdum
The latest addition to Tapal's successful brands is Tezdum tea. The biggest attribute of Tapal Tezdum is its extra strong taste, which is making it popular amongst the people who like their tea strong.

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Tapal Tezdum is the first tea brand in Pakistan to be introduced in attractive silver-foil, moisture-proof sachets. They maintain the freshness, aroma and taste of the tea and the consumer gets the product in the best condition possible.

Highly

Chenak Kenya Dust
Highly popular in Sindh,

Chenak is known for its extra strong flavour, colour and taste. As a result of these features and high quality of tea it is No.1 in its category.

Tapal Special Teabags

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The unique flavour of high grown leaves especially selected from the finest tea gardens in the world make Tapal Special Teabags a treat at any time. The combination of an extra strong blend with the convenience of environmental friendly metal-free tea bags has made Tapal Special an instant hit with consumers.

Tapal Jasmine Green Tea
Tapal Jasmine Green Tea is the most recent addition to Tapal Brands. Tapal Jasmine Green Tea is blended to perfection using the finest tea leaves and specially selected Jasmine to give a refreshing experience of light taste and soothing aroma. It is available in metal-free tea bags specially enveloped for extra freshness’s available.

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Gulbahar Green Tea
Green Pakistan tea lovers Gulbahar around as a

regard

special treat. Perfect as an after dinner option, Gulbahar remains a perennial favourite due to its refreshing flavor.

Tapal Special Round Teabags
Tapal earned a unique

distinction in 2003 as it became the first tea company to introduce hasslefree, extra strong round teabags in

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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.

From the analysis of different varieties of Tapal we come to know that Tapal have different brand for each segment so that they can target more consumer to be loyal with them.

SWOT Analysis:
A useful way to analyze the various internal and external factors that affects the marketing planning is a SWOT analysis. SWOT is an acronym for strengths, weakness, opportunities and threats. The figure given below will illustrate the all about the SWOT analysis.

STRENGTH:
Being the pioneer in tea industry:

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At 50, Tapal & Pakistan are both at the brink of a new, golden age. The golden jubilee is a historic landmark which no doubt is strength of Tapal. A commitment to quality "Never compromise on quality" has been the motto at Tapal since the very beginning. This commitment to quality has resulted in a high level of customer satisfaction and unflinching brand loyalty. In December 1997, Tapal Tea became the first Pakistani Tea Company to earn the ISO-9001 certification: a symbol of the highest international quality standards. Again in December 2000, Tapal acquired the ISO9001: 2000 certification, making it one of the first few companies in the world to achieve this milestone. In addition to the standard requirements, the ISO9001: 2000 certification system includes requirements for environment improvement, concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction. Tapal’s quality policy The Management and the employees of Tapal Tea (Pvt.) Ltd. are committed: • To produce products that meet the customer's requirements & expectations. • To fulfill the requirements and effectiveness of the quality management system through continual improvements.
• By constantly reviewing / updating the relevant quality

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objectives of products & processes. • To participate as teams or individually towards the improvement of processes, personnel, environment & ethical values. Leader in innovation Always on the move, Tapal Tea is honored to have taken the lead in a number of areas in the tea industry. Tapal has been: • The first to introduce soft packs in 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 As a step towards backward integration Tapal has begun tea plantation at Shinkiari in the northern region of Pakistan. This project aims at providing jobs, saving the country's valuable foreign exchange and is a significant step towards selfsufficiency. Tapal is also the 1st national tea company to export tea to the UAE, Canada and USA. This is again a pioneering step towards increasing value-added exports and is also a fast developing source of foreign exchange for the country.

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Packaging: pioneers of soft packaging Technology is also harnessed at Tapal to benefit the consumer. From the very beginning, Tapal realized the importance of importing innovative technologies such as the soft packing process. A fully automatic facility was established where soft packs were produced for the first time in Pakistan. At this facility tea is blended and packed in hygienic conditions, untouched by human hands whilst the soft packing technology keeps tea fresh and packaging costs economical. The success of these soft packs has been such that other tea companies have also followed Tapal's lead and launched some of their brands in soft packaging. Research and Development Tapal is a research-oriented company. It subscribes to and conducts various researches in the area of retail audits, consumer behavior, media planning and product development. This research is used for continuous improvement in product quality, brand positioning and communication according to the changing requirements of the consumers. Consistency and quality are the two keystones of Tapal's production policy, and the Quality Control Department at Tapal ensures that flavor and freshness is never compromised. That's why all the brands, whether Danedar, Tapal Special or Tapal Family Mixture, always taste exactly as expected; retaining aroma and freshness till the last sip.

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Capacity of Competition: Tapal is now taking more interest in arranging the competition for the people to get the attention of public, these competition includes Tapal trophy polo, tapal marathon, tapal interschool cricket, also participate with great enthusiasm on important days as 14th august, Basnat etc.

WEAKNESSES:
Low market share: Despite having a lot of strengths Tapal accounts for only 24% of the total market. Weak Distribution Channel: Distribution network is not well organized, however efforts are being made in this connection e.g. they have recently purchased some trucks, else they used to hire vehicles for distributional operations, which quite often would become trouble some. Sales Stagnation: Despite having made changes in packing, company has not yet achieved remarkable results so eventually we can say in this connection that sales stagnation is company’s major weakness. Restriction of Competition:

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They should expand the circles of their competition to the other cities such as Lahore, Multan, Peshawar, Quetta, until now there most of the competition are restricted to the Karachi and nearby areas.

Advertisement: Though they are enjoying 2nd position in the market, but our research showed that they are paying less attention to their ads especially on the TV, as compared to their competitors. People are less familiar with their ads.

OPPORTUNITY:
Tapal should introduce its other brands like “Mezban Dust” & “Chenak Dust” in the areas where these are not available.

THREATS:
Tapal is facing tough competition from leaver brothers who are strongly promoting “yellow label” & “Supreme”. Karak chai has recently been launched in the market, which could have an effect on company’s sales figures, if this matter is not taken seriously.

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MARKETING STRATEGY
TAPAL TEA WITH RESPECT TO 4 Ps (MARKETING MIX)

Variety Quality, size Design Features Brand name Packagin g Returns

Product

List price Discount s Allowanc es Paymentperiod

Plac e

4 P’s

Pric e

Sale Channels promotion Coverage Advertising Promotio Assortme Sales force n nt Public Locations relation Inventory Direct PRODUCT: Transport “A product is any thing that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

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Each

product

is

related

to

other

products.

Product

hierarchies stretch from basic needs to particular items that satisfy these needs. We can identify seven levels of the product hierarchy. These are: 1- Need family 2- Product family 3- Product class 4- Product line 5- Product type 6- Brand 7- Items Tapal is offering variety of tea for their customer according to their taste, it give more choice to the customer to choose according to taste. In that respect Tapal tea (Pvt.) Ltd. is leading the market. They also provide tea in various packing such as soft pack, hard pack, jar, tea bags and sachet.

PLACE:
“Place, another key marketing mix tool, stands for the various activities the company undertake to make the product accessible and available to target customers. Company must identify, recruit, and link various middlemen and marketing facilitators so that its products and services are efficiently supplied to target market. It must understand the various types of retailers, wholesalers, and physical distribution firms and how they make their decisions. Marketing channels are characterized

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by the number of channel levels. Figure (a) given below will illustrate several consumer goods marketing channels of different length. These are: 1- zero level 2- one level channel 3- two level channel 4- three level channel
Figure (b) will described about the channels used in industrial marketing

M A N U F A C T U R E R

Zero level

one levelRetailer

Wholesal

two level

Retailer

Distribut

Wholes

Retailer
three level

C O N S U M E R

(a) Consumer marketing channel

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M A N U F A C T U R E R

Ind.

Manufactur er Representa

Sales
Branches

I N D U S T R I A L CUSTOMER

(b) Industrial marketing channel The distribution set up of Tapal is divided between two regions i.e. north and south. The north region includes Punjab and N.WFP while the south region consists of Sind and Baluchistan. In Lahore they have one regional office and three distribution channels that supply the tea to the whole Lahore. Regional office 1-Garden town Distribution channel

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1-Dahrum pura Mustafa abad 2-Millat colony Gulberg II 3-Maclode Road

PROMOTION:
“Promotion stands for the various activities the company undertakes to communicate and promote its product to the target market. Thus company has to hire, train and motivate sales people. It has to set up communication and promotion programs consisting of advertising, direct marketing, sales promotion and public relation as mentioned in the figure below.”

Advertising
Print and broadcast ads Motion picture Symbols and logos Audiovisual material Display signs Billboards Posters Brochures Sales presentation Leaflets Sales meeting Samples Fairs and trade shows Press kits Speeches Seminars Annual reports Charitable donations Sponsorship Publication Community relation

Sales Promotion
Contests, games Lotteries Gifts Premium Fairs and trade shows Exhibits Trading stamps

Public Relation

Personal selling

Direct

Coupons

Demonstration Catalogs Mailings Telemarketing Electronic Shopping

marketing

Incentive programs

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Tapal is advertising in print media like newspapers, magazines e.g. Dawn, Nawa-e-Waqat, Jung and in some journals for promotional purposes. it also advertises on electronic media & Broad cast media e.g. TV, Radio and Tapal is also using billboards and printed ads for retailers, moreover the company has got a website as well the address of which is www.tapaltea.com. That means they use both the types of advertisement (ATL & BTL). As far as the advertising is concerned, all the advertisement of the Tapal (Pvt.) Ltd. is carried out by 1- Evernew Concepts (Pvt.) Ltd. Evernew concepts is one of the top ten advertising agencies of Pakistan, established in 1987and have annual billing of 200 million. 2- Adcom (Pvt.) Ltd. Adcom is one of the top 30 advertising agencies of Pakistan, established in 1965. 3- Fourays (Pvt.) Ltd. Fourays is also one of the top 30 advertising agencies of Pakistan, established in 1972.

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Tapal advertise their different brands on different T.V channels (GEO, ARY, PTV, KTN, Indus Vision, IM, ARYONE, and The Musik) Total 1497 brands were advertised on all listed channels in 2006. From which the rank of tapal’s some brand are as: Tapal Family Mixture Tapal Danedar tea Tapal Mezban 16 21 49

PRICE:
“A critical marketing mix tool is price, namely the amount of money that customer have to pay for the product. Company has to decide on whole sale and retail price, discounts, allowances, and credit terms. Its price should be commensurate with the perceived value of the offer or buyers will turn to competitors in choosing their product.”

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In setting the price of product, the company should follow six steps procedure as given below:
1-

Company must establishes it objectives

(Survival, max. current profit, revenue, sale growth etc)
2-

Company must determine the demand schedule

(Shows the probable quantity purchased per period at alternative price) 3- Company estimates how their costs vary at different output levels. 4- Company must examine the competitors price 5- Company selects one of the following pricing methods. (Markup pricing, target return pricing, value pricing, going-rate pricing, sealed bid pricing)
6-

Company selects the final price.

As far as the price is concerned, they are on the top of the list. They are providing the tea at relatively low price as compared to their competitors. As far as their pricing method is concerned, it’s a highly confidential so it is not mentioned here.

Prices of different Tapal brands with respect to its competitors

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Tapal Danedar (Economy Pack) (Economy Pack) Rs. 260

Lipton Yellow Label Rs. 270

Tapal Family Mixture (1/2 kg) kg) Rs. 130 Tapal Green Tea (Tea bag) bag) Rs. 1.33

Lipton Yellow Label (1/2 Rs. 150 Lipton Yellow Label (Tea Rs. 1.5

POSITIONING

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LIPTON

TAPAL

Low

High
VITAL BROOKE BOND

Quali ty

Price

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Augmentation Expected Core

Core Product The core product of Tapal ---------------------The core product of Lipton --------------------The core product of Brooke Bond ------------tea

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Expected Product As tea is that kind of brand from which with the purchase of that the other benefits or the boundaries of expected products are so limited or seems to be nothing The expected product of Tapal --------------------The expected product of Lipton --------------------box The core product of Brooke Bond -----------------The core product of Vital---------------------------Jar can say that it is an expected product the benefit of Jar is to use another purpose when the tea inside the jar become completely used instead of throwing into rubbish Another Expected Product is Box which you can use it for other purposes after it becomes empty or unfilled And any buyer if wants to purchase a tea in a tea bags form then it is possible and that kind of packaging is available in mostly every brand of tea Augmented Product The augmented products of Tapal are jar

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o In Family mixture, family sachet offer

o Round tea bags o Much wide packaging available in Tapal o There are many varieties available in Tapal The augmented products of Lipton are o They are introducing Mini pack Biscuit with Lipton o They are giving Cups of tea usually available in offices o Water Warmer usually available in offices

Points of Parity (POP) & Points of Difference (POD) Points of Parity (POP):
These are the associations that are not necessarily unique to the brand but may in fact be shared with other brands. These types of associations come in two basic forms: category and competitive.

Points of Difference (POD):
These are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.

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In case of Tapal, there is the involvement of POP and POD, as Tapal established its brands keeping in view POD’s. Manufacturing of different brands for different customers, but after all of this there is a point of parity that all the brands are only tea. In the product life cycle tapal belongs to the growth stage.

PRODUCT LIFE CYCLE
. As human beings have a life cycle same that is the product life cycle. Most PLC curves are portrayed as bell-shaped. This curve is typically divided into four stages: Introduction, Growth, Maturity, and Decline.

INTRODUCTION: It is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent because of the heavy expenses of product introduction. This stage concerns with personal relation, sales promotion, and advertisement. The distribution channel is limited. GROWTH:

47 It is a period of rapid market acceptance and substantial profit improvement. There is an improvement in the quality with new features. MATURITY: In this phase there is an expansion of sales distribution and promotion activity. Product modification takes place. Market also modified by adding new users, new uses, and also attract competitor’s users and non-users. It slows down in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition. DECLINE:: Sales show a downward drift and profits erode.

FINANCIAL PROJECTIONS

Amount in (Rs.’000)
SALES 9,736 NET PROFIT 1,813 EXPENSES 299

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CURRENT ASSETS 1,456 FIXED ASSETS 3,735 (Dep.) LONG TERM LIABILITES 2,321 OWNERS EQUITY 2,821 (49)

IMPLEMENTATION CONTROLS
Proper check and balance for its objective (satisfying the customer). Then allocate proper reserves for marketing keeping in view the revenue and other expenses. Allocate the proper reserves for the development of new brand. They are using management information system named as “stockman” for the complete control of their plans and their proper implementation as well.

RECOMMENDATIONS

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NEW MARKETING STRATEGY
Target Market:
In the new strategy we would target the same people who, in previous strategy were targeted. But the important recommendations to the Tapal in this regard would be that the target market must be little bit extended because it is generally said that the Tapal is more popular in the Karachi and other region of Sindh as compared to Punjab. Tapal should extend its target market to other areas of the country particularly in Punjab and NWFP.

CHANGES IN 4P’s:
Product:
Tapal could expand its product line by introducing flavored tea. e.g., Chocolate flavor is available and being sold by loose tea sellers but this category of tea is not available in manufactured tea except a very few foreign companies. No doubt Tapal has got a 9002 certification, but packing could be made more impressive especially for 250grs, 400grs & 500grs by getting these quantities packed in plastic transparent Teakettle shaped packing. They can also introduce the liquid tea bags, which are not yet introduced in the Pakistan.

Place:

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As far as the distribution is concerned currently Tapal has made segmentation with respect to taste and social class. e.g. In interior Sindh Chanak Dust and Mezban Dust is popular while for upper class & middle class Danedar Brand is available in different packs as well as Tea Bags. While targeting villages they are offering Tapal Safari & while targeting people who are fond of Green Tea Tapal is offering Green Tea in different packing. However we have noted that the brands Mezban Dust & Chenak Dust & Safari are not available in Lahore so they are supposed to be available here in Lahore and in like areas where these brands may well be effective, these brands could well compete Karak Chai, moreover I would just say that if these brands were not introduced in the above-mentioned areas, then company would be losing its sales. The point to be noted as to distribution is that they should also used Motorcycle Riksha in distributional operations, however they have purchased Trucks, else they would hire vehicles which was in convenient. In city market’s Yellow Label and Supreme are also using Motorcycle Riksha, so these motor Cycle Riksha’s are convenient to enter in relatively small streets. The distribution network needs to be more extended; Tapal should hire potential distributors in several other parts of the country so that their product will reach to every corner of this country.

Price:

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Price would remain same because it’s an appropriate as compared to Lipton and other established tea brands.

Promotion:
On Television if we see the ad of Yellow Label or Supreme, that would be really attractive, but on the other hand Tapal’s ad is not so. As far as promotion is concerned the ads should be such that, that could arrest the attention of the public. So Tapal should endorsed be renowned personalities of the show business. Moreover in ads they should mention that they are offering different brands according to the taste and pocket of the customer.

CONCLUSION

After all the activities and effort which we have done to complete this project and after studying and analysis of the questionnaire we come to the conclusion that Tapal is brand that has many varieties in packaging and tastes, Tapal is a brand which target more segments from lower level to Upper level. It is the only brand which gives Round Tea Bags. From this analyses we analyze that user of Tapal tea are lies in both from lower level income to upper level income.

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However the other main players’ of the tea industry also have some features with them that can be draw backs for the Tapal. Lipton targets the elite class. The segment of Lipton is limited than Tapal. The mostly tea used in office is Lipton tea. The advertisement of Lipton is better than the Tapal. Brooke Bond is also the company of Unilever .They target Lower level area or the user who are living in urban area. They also introduce the scheme to get winning prizes of Cash, like Tapal. The segment which Lipton didn’t cover or didn’t target, the other product of Unilever Co (Brooke Bond) targeted that segment. As the Vital is the new product entered in the market so it takes time to say something about Vital whether this product become successful or it became also treated as failure as the Brand Tetley become Fail.

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