Lipton

Anum Sohail 16886

Shafiqa Akhtar 17301
Term project (phase 1)
Introduction
We have chosen the yellow label tea by Lipton as our product. Lipton is a brand that produces
various types of teas
Lipton is a brand that is produced by Unilever. Unilever is Pakistan’s largest fast-moving
consumer goods (FMCG) company. Also it is one of the largest multi-national company in
Pakistan. It produces a range of products some of its brands can be seen below in the picture;

The person we contacted for our product is

Unza Jamshed,
Management trainee
Phone number; 0333-3570513
Email address; Unza.Janshed@unilever.com
Marketing strategy for Lipton
Lipton makes use of different marketing techniques to market its product. One of which is

market segmentation. Market segmentation when you divide potential or target costumers into

groups depending upon their different characteristics.

Market segmentation for Lipton
Lipton has classified its potential customers in different groups for yellow label tea.
We can see that Lipton has identified the need of introducing different categories in the same
product that is the yellow label tea. They saw that different people want different types of the
same black tea here in Pakistan.
Hence they introduced different types under the same yellow label tea. The different categories
can be in seen in different forms or sizes for example the existence of both loose tea and tea
bags. The existence of the same tea being available in different packaging, yellow label tea is
available in 475-gram pack and also in 950-gram pack. Also they have introduced different
varieties under the same product. For people who like their tea to be stronger and darker they
have introduced Mega Daane
. Different packaging and categories under the same product i.e. Lipton can be seen below in the

images

From the above images we can see that Lipton has introduced same product in different
packaging and different variants. This helps Lipton cater to a larger market and attract more
customers.
Target market for Lipton
target market refers to those consumers you wish to sell your product to.these are those
consumers who would be interested in your product and can afford to buy your product. Lipton
specifically targets urban population over rural population. This is quite evident through its
advertisements and pricing strategy.
SWOT Analysis for Lipton

Strength
Lipton yellow label tea is owned by one of the biggest multi nationals in Pakistan. This means
that Lipton holds a very strong financial position in the market which can allow it to carry out
research in future and that might help it to reduce its costs and increase profits. Also this may
help in better production of tea that would make it better quality wise and this may help in
getting consumer loyalty.
Furthermore, Lipton has a long history in the tea manufacturing industry due to which it has a
higher brand recognition and a good image in the market.
Weakness
Unilever owns many brands which may prove to be harmful for Lipton yellow label tea. This is
because the company might not be able to focus on a specific brand. This may lead to
inefficiency in the production and management of the yellow label tea.
Opportunities

Lipton has a number of opportunities to avail. Its alliance with Pepsi Co. to access massive
distribution networks can add much to its name.as partnership with huge companies will increase
its demand.
Furthermore, Lipton being a part of Unilever can afford to experiment with the addition of
different variants and flavors of tea. Also it can think of expanding the production to further
enjoy economies of scales.
Threats
The competition in the tea industry has been increased significantly. This may affect the sales of
Lipton yellow label tea, causing a dip in the market share.
The weather conditions of some cities in Pakistan like Karachi might not allow the consumption
of tea to maximum levels this may affect the sales. Also this might encourage indirect
competitors such as Coca-Cola to increase its promotional activities that might affect the sales of
Lipton.
Integrated marketing mix (4Ps)
Product
Lipton produces different types of tea which include;
-Lipton yellow label tea
-Lipton green tea
-Lipton iced tea
-Lipton tea bags
Lipton is known for its use of great quality tea leaves that are being imported from Sri Lanka,
Kenya and India. Also it worked with the rainforest alliance to get all its plantation certified
sustainable. Moreover, it uses the least amount of fertilizer in Kenya that ensures the best quality
and no artificial flavors being added making the end product the most organic
Price

Lipton has adopted a premium pricing strategy.it charges a little more than its competitors
mainly because it attracts people living in urban areas and those who associate their lifestyle with
a particular brand.it uses this particular pricing strategy to create a perception of a luxurious
product in the eyes of its consumers.
Promotion
Lipton uses a number of techniques to promote its products. The use of above the line
promotional activities are adopted by Lipton. That is the use of advertisements on television,
newspapers and social media. Lipton being owned by a multinational can afford to carry out such
expensive activities. Furthermore, it identified that people are more convinced when there is
someone with superior position using the same brand, hence Lipton introduced Shraddha Kapoor
and Anushka Sharma, Indian celebrities as its brand ambassador for green tea advertisements.
Place
Lipton products are available at almost every store in Pakistan. Be it in rural or urban areas.
Large retail outlets such as Carrefour and Imtiaz super market have huge stocks of Lipton
available all year round. Recently the trend of online shopping started and Lipton can be found at
every online grocery website example of such online stores could be Daraz and Hummart.
Marketing environment
Lipton competes in a very competitive marketing environment. New and new industries are
being set up in the market. The number of competitors Lipton has to compete with is increasing
readily. Therefore, there is a need of coming up with product differentiation and different
marketing strategies. This was why Lipton introduced different variants like Mega Daane. And
also it came up with a very emotional advertisement recently in which it stated that it is working
in partnership with TCF-the citizen’s foundation and would donate a proportion of its sales for
the schools owned by the organization.
Major competitors of Lipton
The major competitors of Lipton are Tapal, vital tea, red label and many more local small scale
competitors. Mainly Tapal and Lipton are of main focus in the market. Tapal markets itself as a
very family oriented product that strengthens the bonds of family relationships. It does uses
market segmentation just like liption.it also introduced two different types of tea bags. Also as
per the liking of people it has 2 variants of tea that are Danedaar and Family mixture. It also
introduced green tea as one of its products. However, it sells more flavors than Lipton does.
Furthermore, it also introduced several celebrities in its advertisements but here these celebrities
are mainly Pakistani
Characteristics affecting consumer behavior towards Lipton:
Personal Factors:
Some of the personal factors that affect consumers buying behavior include lifestyle, occupation,
age, personality and economic status. Mostly adults use tea to refresh themselves while being
tired from their work and to stay hydrated and healthy. The kind of work a person does also
influences his/her purchasing behavior.
Psychological Factors:
Consumer behavior is stimulated by how consumers perceive and react to products in relation to
the quality, features and image of the product. Moreover, beliefs and attitudes of consumers play
a significant role while choosing a brand.
Cultural Factors:
Culture, subculture and social class are the factors that have a strong impact on the selection and
acquisition of a particular brand or a product. People of same culture tend to choose the same
product for similar purpose.
Following are the factors that can be categorized for affecting consumer behavior in relation to
Lipton Yellow Label Tea:
Health consciousness:
In the current era, people are more conscious about their health than ever before and therefore
they opt for a product which is good for their health. This also measures taste of the tea as it is a
main concern for consumers. Lipton provides a variety of tastes for their customers along with a
healthier option.
Promotional offers:
Packaging and advertisement of a product attract customers to buy a particular product.
Consumers look for a product which is more convenient to purchase and use. For instance, the
type of music being played in a retail outlet can have an interesting effect on shopping behavior.
That is why, Lipton works on the packaging and form of the product to provide utility possession
to their customers. Also, size of a packet affects buying behavior to some extent.
Price Factor:
Price play important role in the case of brand preference with respect to Lipton tea. Price could
change the decision of consumers towards their preferred brand. They want a fair price, and a
fair price can be either high or low as long as it reflects the perceived value of the product in
question. Price, higher or lower than customer’s expectation, can lead to loss of sales volume,
while customers may shift towards other brands.

Commercial existence:
Customer loyalty is affected by the availability of the product. Consumers look for a product
which is more convenient for them to purchase and use. This factor suggests that the product is
available in all stores and preferred places. Knowing that, Lipton Tea is easily available in
market in all feasible sizes and flavors.

The type of buying decision behavior:

There are four types of buying decision behavior which are as follows:
1. Complex buying behavior: In complex buying behavior, buyer shows high level of
involvement while purchasing and observe differences among brands. This is due to a
high price level, or presence of variety of other brands. Consumers take time and feel
uncomfortable to purchase a particular brand.

2. Dissonance reducing buying behavior: In this type of buying behavior, consumer

involvement is very high, but less differences among brands. In such case, buyer
purchase the product which is easily available to him/her.

3. Habitual buying behavior: In habitual buying behavior, buyer shows low level of
involvement and there is less differences among brands. Consumers do not search for the
alternatives or characteristics of the brand through magazines, tv commercials etc. Also,
there may be no brand loyalty.

4. Variety seeking buying behavior: In variety seeking buying behavior, consumer shows
low involvement, but there are significant differences among brands. In this case,
consumers consider to switch brands just for the sake of trying other alternatives.

Among all of the above discussed types of buying decision behavior, Lipton Yellow Label Tea
falls into the habitual buying decision behavior. As it is clear that consumers have low
involvement while buying tea and there are less significant differences among other tea brands.
Therefore, buyers require minimal search for alternatives before purchasing.
This type of behavior occurs when the consumers buy frequently purchased products. They
purchase product of a specific brand due to its familiarity and they do not collect information for
the brand. Hence, seller has to grow the familiarity of its products through advertising and sales
promotion. Lipton increases the familiarity by providing attractive prices and ensuring their
availability to customers.
The buyer decision process with respect to Lipton:

 Need recognition: It is an internal stimulus that triggers the need in case of tea. People
want a refreshing and healthy drink and start looking for a product with such qualities.
Therefore, they choose tea over other drinks. This need could also be triggered by
advertising etc. (external stimuli).

 Information search: Once people identify the need of such drink like tea, they go for a
brand influenced by personal and social factors and based on their perception. People
become aware of the brands that are available in the market.

 Evaluation of alternatives: People look for the alternatives that are available in the
market. But, the buying decision is based upon the quality that the person is looking for.
Along with the quality, other factors such as price, availability, variety are considered
while evaluating many brands. Lipton tea is a known brand and has easy availability
everywhere.

 Purchase decision: Consumers take decision to purchase Lipton tea when their
requirements in the product are met. Purchasing a product is an easy task as the product is
available on all stores.

 Post-purchase behavior: Lipton makes efforts to satisfy their customers by promoting

the benefits of Lipton Yellow Label Tea which give post-purchase satisfaction to their
customers.