HAMDARD INSTITUTE OF MANAGEMENT SCIENCES

MARKETING MIX OF TETLEY TEA

Submitted By:

Mohammad Zohair Imtiaz GR # 2201176 Syed Irfan Hasan GR # 2201191 Mr. Faizullah Jawad Principles of Marketing

Submitted To: Course Name:

Acknowledgement

If the words are considered as symbols of approval and tokens of acknowledgment, then let the words play the heralding role of expressing my gratitude. We would like to thank Mr.Omer Qadri, General Manager Marketing & Operations, Clover Pakistan Limited, Lakson Square Building No. 2 Sarwar Shaheed Road for permitting us with the required information for our project. We would also like to thank Mr. Asghar Ali, Consultant Tetley Clover (Private) limited who helped us in editing and supporting me in spite of all inconveniences and problems arising from time to time to complete the project. They deserve all praise and we thank them for their help and endurance. We would also like to thank my family and friends for their support as this project could not be completed without their support and encouragement. We are very much thankful to them. Above all, I thank our respective Teacher Mr. Faizullah Jawad for his advices, without which the successful completion of this project would not have been possible.

Muhammad Zohair Imtiaz Syed Irfan Hasan

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................................................................................................................................................................................................................ 5 Product ....................................................................................................................................................................................................................................................................) Ltd.................................... ........................................................................................................................................................................................ 6 Mission Statement................................................................................................................................................................................ 11 History of Tetley .............................. 11 Tetley owners through the years ........................................................................................ 11 More innovations followed .................................................................................................................................................................................................................................................................................................................................................................................... 6 Introduction ................................................... 14 3|Page ........................................................Table of Contents Acknowledgement ............................................. 12 Product ................ 5 Company Profile ............................................................................................................... 5 Price ....... 6 Lakson group of Companies .................................................................................................................................................................................................................................................................................. 13 Box Packs ............................................................................................................................................... 12 Tetley Gold ............................ 2 Four P’s Of Marketing Mix ........................................ 12 Patti Chai ................. 12 Packaging of Tetley Tea: .......................................................................................................................................................... 5 Place ......................................................................................................................................... 11 It all began in 1837 ................................................................................................... 7 Foreign Affiliations ........................................ 13 Sachet Packs ................................................................................. 11 The Tea Bag hits Britain ............................................................................................................................................................................ 12 Mixture Tea .................. 11 Tetley Group ........ 12 Dana Chai .......................................... 6 Lakson Group of Companies........................................................................................................... 10 Tetley Clover (Pvt.................................................. 6 Company Structure: ...........

.......................... 18 Issue of Tea in Pakistan: ..... 16 Promotion ......................................................................... 17 Promoting in the supermarkets .................................................................... 20 Health & Tea .......................................................................................................................................................... 17 Promotional event for Tetley Tea launching:.................................................................................................................................................................................................................................... 17 Setting up stalls:........................................................................................................................... 16 Place in supermarket: .........New Arrival ............................................................................................................................................................................................................................................................................................................... 20 Suggestions .................................................................. 19 Opportunities .................................................................... 18 Pakistani Tea Culture – Tea Consumption ........................................................................................................ 19 Threats................................. 19 Weakness ................................................................................................................................. 20 4|Page .................................................................................................................................................... 17 Their Promotional Plan ......................................... 17 Suggestions: ............. 14 Price ................................................................ 15 Place ........................................................................................................................................................................ 18 Advertisement..................................................................................................................................................................... 19 Strength ...................................................................................................................................................................................................................... 18 TV Commercials ................................................................................................................................................................ 18 SWOT Analysis ..................................

material costs. It can include any physical store as well as virtual stores on the Internet. Public relations are where the communication is not directly paid for and includes press releases. competition. Packaging also needs to be taken into consideration. seminars or trade fairs and events. radio and Internet adverts through print media and billboards. Promotion . public relations. Word of mouth is any apparently informal communication about the product by ordinary individuals. product identity and the customer's perceived value of the product. sponsorship deals. A certain amount of crossover occurs when promotion uses the four principal elements together. satisfied customers or people specifically engaged to create word of mouth momentum. It is determined by a number of factors including market share. The business may increase or decrease the price of product if other stores have the same product. word of mouth and point of sale. 5|Page . Typical examples of a mass produced tangible object are the motor car and the disposable razor. which is common in film promotion. from cinema commercials. Promotion has four distinct elements: advertising.Represents all of the communications that a marketer may use in the marketplace. Price – The price is the amount a customer pays for the product. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). exhibitions. A less obvious but ubiquitous mass produced service is a computer operating system.Four P’s Of Marketing Mix Product .A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. It is often referred to as the distribution channel. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Place – Place represents the location where a product can be purchased. Advertising covers any communication that is paid for. conferences.

Siza Group. 4th Floor: Colgate Palmolive Purchase. Clover Pakistan. through its manufacturing. Quality Assurance. 2nd Floor: Tetley Tea. Cafeteria where employees can go for hygienic food for their lunch. Titan Watches. Karachi -74200 Pakistan. The Group provides direct employment to around 11. Mission Statement “To Build a Successful Business model that encompasses the Needs of our customers. 5th Floor: Clover Pakistan 6th Floor: Lakson Investment. Marketing & Sales. marketing and service companies in Pakistan. Accuracy Surgical Limited. Sarwar Shaheed Road. 8th Floor: Siza Foods (McDonald). Merit Packaging. administration office. 11th Floor: Masjid for men and separate praying Room for women. HR. Singaporean Conciliate.Company Profile Company Structure: Lakson Group of Companies Lakson Square.500 persons. our shareholders and our Employees” 6|Page . 3rd Floor: Colgate Palmolive. Here is the brief building map of Lakson square            1st Floor: Group office. Research. Building # 2. US$ 500 Million) annually. Tritex Cotton. 10th Floor: Lakson Business Solutions. Phone: 92 21 568 5867 – 569 8000 Fax: 92 21 568 4712 . Reception & meeting rooms. 7th Floor: Cyber net. 9th Floor: Century Paper & Board Mills.568 3410 Introduction The Lakson Group with its core businesses centering on consumer package goods generates sales revenues of around Rupees 29 Billion (approx. Payroll group.

a Sharjah based company. Philadelphia cheese and Maxwell House Coffee and in Pakistan. 23% share of total market of paper and paperboard production in Pakistan major CPBM sales are to the Industrial Consumers while Duplex Board (coated and uncoated) is the prime product. dental and veterinary instruments of highest standards and specifications. tweezers and nippers).000 tons of Straw Pulp and a Box Making Plant of 15.000 tons of Paper & Board.000 tons. We are now planning to convert these engines to gas fired engines to improve efficiencies and environmental standards.Lakson group of Companies Accuracy is a non-listed public limited company with two factories located at Sialkot in Punjab. Clover distributes other Kraft Food products like Toblerone chocolate. The company‟s current installed capacity is 85. CPGL has been providing stream of dividends to CPBM improving financial returns besides being a ceaseless power supply for operations. In order to provide un-interrupted power supply for continuous process Century Paper and Board Mills (CPBM) Plant a 12.1 MW each Wartsila Engines using Furnace Oil as fuel. 7|Page . It has fully integrated facilities for complete manufacture of stainless steel surgical. It holds approx.3 MW Power Plant was set up in 1996 as a wholly owned subsidiary of Century Paper and Board Mills. electronic pliers and forceps and hobby tools. Incorporated in 1986. In addition it also distributes Lacnor fruit juices manufactured in the UAE by Al-Buheira. It consist of three 4. the company entered into a Licensing Agreement with Kraft Foods In 1988 to manufacture Tang in Pakistan. Century Paper and Board Mill Limited is one of the largest integrated Pulp and Paperboard Mills of Pakistan. 30. Accuracy‟s entire production is exported overseas and is FDA (of USA) certified. Accuray also manufactures a wide range of manicure implements (such as scissors.

LBS is proud to be ISO 9001:2000 certified which indicates it's streamlined and mature internal processes and quality standards. Cyber Internet Services (Private) Limited incorporated as Private Limited Company in April 1996 and commenced its commercial operations in March 1997. 8|Page . Since its inception. which reflects its objectives of providing high quality services. The Foundation owns and operates a multi-storied office building in the center of Karachi and the entire rental income from this property is being utilized for philanthropic purposes. Cyber is the first ever ISP in Pakistan to acquire ISO Certification. Pakistan. HASAN ALI KARABHAI Foundation was established to undertake various financial aid programs and charitable contributions. In addition. dynamic and professional services. Cyber Internet Services (Private) Limited has become the first Co-location and Application Service Provider in the country by providing turnkey solutions to the consumers and enterprises for connectivity. improving customer satisfaction. a 100% local Company in 1977. maintaining effective Quality Management Services and improving the e-awareness among customers. In 1990 Colgate-Palmolive Company. LBS is on its way to achieving a CMMI level 3 (Capability Maturity Model Integration) certification. reliable. USA granted license to manufacture and market their products in Pakistan in 1985. the company achieved a considerable customer base both in individual and corporate sector with its efficient. joined as equity partner in the company and the name was changed to Colgate-Palmolive (Pakistan) Limited. providing them with IT solutions that not only cater to their current needs but are also designed to handle future enhancements. messaging and collaboration and application hosting. LBS resources have successfully completed software projects with a number of companies in the local as well as foreign markets. Colgate-Palmolive Company. Over the years. It is a promising IT solution provider of Pakistan with strong emphasis on customer needs. networking. Lakson Business Solutions (LBS) is a crucial name in the Lakson Group of Companies.Initially incorporated as National Detergents Limited.

TRITEX COTTON MILLS LIMITED. has been formed under Development Licensee (DL) Agreement with M/s. 9|Page .800 spindles. is the first venture of the Group into the textile sector. It is the second largest printing and packaging company in Pakistan. The entire equipment has been imported from Japan and China.The project is a state of the art cotton spinning unit and is equipped with 25. It started production in August. Siza Foods (PVT) Limited has entered into a joint venture with Development License (DL) Agreement with M/s McDonald Corporation USA and have set up eight restaurants in Karachi and Hyderabad. 1990.920 spindles.Merit Packaging is situated in Karachi and is engaged in printing and converting paper and board into quality packaging material. The company has its own power generation of 4. established to expand activities in Air Travel/Air Freight businesses in Pakistan. a public limited company.720 spindles by December 2004. Currently Tritex is in process of expansion to further increase of 6. The plant is equipped with modern offset printing machines and sophisticated packaging equipment of various capabilities. which enables it to provide better service to its clients.4 MW for its in house consumption. McDonald Corporation USA and has set up ten restaurants in Lahore and Faisalabad. Princeton Travels (Pvt) Limited is a Government Licensed IATA Travel Agency of the Group. Merit has also developed an in-house art department.) Ltd. which will reach a total of 32. To further expand the business another company GAM Corporation (Pvt.

(USA). Baluchistan manufactures three different blends.1. Tetley Patti and Tetley Mixture to suits the varying taste buds of its consumers. (USA). 3. 2. Keeping in mind the varying needs and distinct culture of both urban and rural Pakistan.1. Foreign Affiliations 1. Tetley Dana. 50:50 Joint Venture with Tetley Clover (Private) Limited. 3. Equity in Siza Foods (Pvt) Ltd. McDonald’s CORPORATION. Licensing arrangement with Clover Pakistan Limited. Tetley Clover Pvt Ltd is the new venture of Lakson Group of Companies.1. TELTEY OVERSEAS HOLDINGS LIMITED 4. 2. 10 | P a g e . KRAFT GENERAL FOODS INC.1.1.Incorporated in 2003. (USA).1.1. with equity participation option. 4. Tetley Clover promises to bring its customers the complete cup of Tea. COLGATE-PALMOLIVE COMPANY INC.1. 1. a purposebuilt factory in Hub. A joint collaboration between the Tetley Group of UK and Lakson Group of Companies. Equity holding in Colgate-Palmolive (Pakistan) Limited.

Joseph Tetley & Co also began to blend and package it. More innovations followed Since the 60s.) Ltd. latching on to the fashion to drink tea in a mug. In 1856. As well as selling tea. rather than a cup. Business was good and the company grew. just after rationing finished. it was not until 1953. The Tetley Group was created in July 1995. Wholesale Tea Dealers". Joseph Tetley and Co tastes success. On 10th March 2000. Tetley has continued to develop people‟s love of tea drinking by introducing innovative and exciting ideas in many different countries. they set up "Joseph Tetley & Company. In 1989 we launched the round tea bag. no mess‟ tea bag. Next came the Drawstring „No drip. 11 | P a g e . The tea bag had captured the public‟s imagination and desire for convenience. The Tetley Group was sold to Tetley Tea Limited. History of Tetley It all began in 1837 In 1837. one of these was the tea bag. one of the world‟s largest integrated tea businesses. when a group of investors bought what was then the world-wide beverage business from Allied Domecq. In the 1880s they began to sell tea to the United States of America. Joseph and Edward Tetley started to sell tea and became such a success that they set up as tea merchants. Within 10 years it revolutionized how Britons drank their tea and the old fashioned tea pot had given way to making tea in a cup using a tea bag. in partnership with Joseph Auckland. The Tea Bag hits Britain Tea was rationed during World War II. as they say. is history. 1978 Allied Breweries acquired J Lyons‟ Businesses then as Allied Domecq sold them in the 1990s. two brothers.Tetley Clover (Pvt. Tetley owners through the years 1974 Tetley Tea Company was bought by J Lyons who merged it with the Lyons tea business to form Lyons Tetley. The rest. that Tetley launched the tea bag to the UK and it was an immediate success. and started to bring ideas back.

Dana Chai Blend Characteristics:  Smoothest blend available  Bolder grains  Dark red color  Alluring aroma  Rich taste Mixture Tea Blend Characteristics:  Mix of different type of tea  Dark red color  Karak taste  Alluring aroma Tetley Gold T-BAGS Blend Characteristics:  Tetley T-Bags have a higher number of perforations  For faster infusion & maximum flavor delivery  Smooth aromatic blend  Rich color & taste Patti Chai Blend Characteristics:  Small leaves  Quick liquoring  Dark red color  Alluring aroma  Karak taste Though Most of the above mentioned varieties have not been launched in Pakistan. Product Tetley is not diversifying in products but only deals in tea. Dust & Teabags.Tetley Group It is a Joint Venture between Tetley UK & Lakson Group which was formed in 2004. 12 | P a g e . the Tetley tea caters to the Black Tea drinking masses of Pakistan and the tea segments include Leaf. The Products of Tetley tea are.

and often buying for her entire family.Packaging of Tetley Tea: Customer perception of a package creates brand equity and purchaser loyalty. The image presented by the package largely determines success or failure of a tea line. image and slogan all combine to facilitate customer allegiance. Tetley tea is available in market on the basis of size of its packaging. Appearance stimulates memories and emotions inside the purchaser. Color. Tea Bags Pack Tetley Gold 100 Tea Bags Front View Back View Side View 13 | P a g e . who Most of the times are female.

200g &400g Box New Arrival Tetley World 10g Sachet 14 | P a g e .Economy Pack Tetley Gold 1KG Economy Pack Box Packs Tetley World 100g.

81.20 Rs. 176.48 Rs. 20. 159.38 Rs.00 Rs. 23.50 Rs. 85.34 Rs.Price Tetley Tetley World 10g Sachet ( New Arrival ) Tetley World 32g SACHET Company Price 4.60 41. Tetley World 100g Box Tetley World 200g Box Tetley World 400g Box Tetley Gold 100 Tea Bags 15 | P a g e . 188 Rs. 38. 48 Rs.72 Rs.72 Rs.06 Rs. 162 Rs. 99 Rs. 205 Rs. Retailer Price 4. 19. 155 Rs. Consumer Price 5.69 Rs.31 Rs.

UK and in Australia. Canada. Tetley is available in 67 countries around the world some of them are listed below. The final product will be distributed to Retailers such as Supermarkets and main tea shops so the end consumer has easy access to it. at its headquarters in Greenford. Bangladesh. Place in supermarket: On the middle and lower levels the Tetley Tea should be placed according to the content of tea bags. the USA. India and South Africa.               Australia Canada Estonia France Great Britain Latvia Lithuania Malta Poland Spain Sweden USA Pakistan India 16 | P a g e . one of Pakistan‟s biggest business corporations.Place High quality for a reasonable price can be bought from shankiyari & Mangora and will then be blended and packed. Pakistan. Poland.000 people worldwide work for Tetley. Russia. 40 bags should be placed higher than the ones containing more bags Nearly 1. Tetley is part of Lakson group of companies.

a spoon or some souvenir with logo of Tetley. with the logo of the Tetley. Pen‟s.Promotion The promotion is the most important point to launch/promote a product because it helps in competing with other competitors. Tetley is planning to launch a couple of promotional activities that would help them in capturing a better market share that they currently have in their possession. balloons. Moreover. the logo & the environment with proper seating facility for customers to relax and have hot tea. Hence enticing kids to force their parents to sit and relax while the kids can have free goodies. The stall will be placed in the area close to the eatables section. the Tetley stall workers should provide some presents to the children like toys. Hosting a carnival type event providing entry to only customers presenting the bottom portion of Tetley‟s 400Gram box or Tea Bag box‟s top leaf. he will get a free tea cup. so that customers have a better access to the stall. Their Promotional Plan Promoting in the supermarkets Setting up stalls: Tetley plans to set up a stall in different supermarket in order to provide free tasting to the clients. Suggestions:  Providing Free Sachet‟s of Tetley Tea to all of the customers at the checkout point of super market.   17 | P a g e . Key chains. also a voucher for a chance to win a trip to some resort to the customers who have bought Tetley‟s product. The stall will represent the brand with the color of the company. Promotional offers during the year: If a client buys a box of 150 tea bags. Tetley Clover (Pvt) ltd is focusing on the point that the Pakistanis like to bargain and buy a product that offers free gifts.

85 kg of tea/year.e. Palmolive. Advertisement At the beginning. Canada and Australia. sources in the tea trade said. in magazines and on airports. In Pakistan. they will begin a campaign on television. 5.4 kg in urban & 4. in the street there will be a lot of decoration of the brand image. About 40 million kg of tea is smuggled into the country through Afghanistan under the garb of Afghan Transit Trade. some delicious new ready to drink iced teas and spicy chai latte teas. Pakistan has a 170 million kg tea market. the strategy is to focus on the Internet. they‟ve launched new blends of green teas and fruit and herbal infusions. 18 | P a g e . After six months or one year. there will be hosts with special clothes (Tetley uniform) who will distribute samples and cups with tea to offer the product to passer-by. the radio and on daily newspapers to reach a lot of customers. 1 Kg per person per annum On average a tea drinking House Hold consumes 4. Pakistani Tea Culture – Tea Consumption   Pakistan averages approx. Every day. Recently in the UK.the children while the parents take part in the competition. Tetley used informative Advertising for their product taking TV Actors in their advertisement and build a brand name as other Lakson products are i.63 kg in rural areas This translates into a daily consumption of 2-4 cups per day Issue of Tea in Pakistan: The government is annually losing Rs 152 million in revenue due to tea smuggling through Afghanistan. During Ramadan Tetley offers by product Schemes in which they offer Tetley tea with Tang with the new slogan “Tetley Badal Day Sooch!!!” TV Commercials TV is a most entertaining medium for promoting the product. Tetley focus is on developing new. exciting and different ways of making tea.Promotional event for Tetley Tea launching: During one weekend in a big city in Pakistan (preferably Karachi) they will organize a big event. The new promotional activity of Tetley is the new pack of 32 grams sachet having the same strong taste and the second promotion that Tetley has introduced in the market is the packet of 25 grams with buy one get one free scheme. These media are noticed by a large target group which will help the firm to be known. Nationally. In the street.

they added.Sources said price of one kg bag of the imported tea is $2 while same quantity of smuggled tea is sold at a price of $1. while illegal tea traders pay nothing to the government. Weakness   Since Tetley is relatively new brand – it needs to establish its position in the market. to which he replied that for only 20 to 30 bags they could not afford to create any law and order situation. Unilever. Pakistan Tea Association and major tea blenders. The reason of this 100 percent difference is that the legal importers have to pay 15 percent sales tax. Khusro N A Farooqi said that PTA had approached Director Anti Corruption Department and informed him that smugglers were getting small quantities. Brand name is still little known in Pakistan. Tapal and Tetley. Pakistan Tea Association chairman Hamid Saeed said that the business of tea importers was badly hurt due to smuggling of tea. Every time it had been told that the authorities would consider this issue and inform PTA of the new government policies. PTA urged him to take prompt action against them. SWOT Analysis Strength     Local company that will be favored by the Pakistanis. which made it difficult for the authorities to check smuggling. Insider knowledge of Pakistan Uniqueness of the product . Secretary Pakistan Tea Association. For the last couple of years PTA had been complaining to the authorities by writing letters and reminders to the Central Board of Revenue (CBR) and Anti Corruption Department.Benefits of product are outstanding and not offered by any other product/company. Opportunities      Shortage of tea supply unlikely Supply should remain stable over next 3-5 years Demand should remain in relative sync with supply Mass market tea prices will stabilize Consumers are living a healthier lifestyle 19 | P a g e . six percent income tax and 10 percent customs duty. Diminishment of Financial Risk (no exchange rates or import from other EU countries. The quantum of tea smuggling is rising every year and now it has reached 40. To curb the problem of smuggling. are demanding that government should abolish all duties and taxes levied on tea imports.

does indeed have health benefits. Health & Tea For over five thousand years a cup of tea has had its own special magic. Unilever owns 50% Of the Market Share in the TEA Segment. There are compounds found in tea called flavonoids and these are very effective antioxidants. Antioxidants may counteract the effects of free radicals. All over the world there is a growing body of evidence to suggest that Camellia sinensis. Suggestions      Train the sales work force Free testing and sampling of the tea Reward or lottery system to attract the customers motivate employees with the incentives Make the availability of the tea at every outlet. 20 | P a g e . One study looking at the relative power of antioxidants found that tea was considerably stronger than the twenty vegetables they examined. the tea plant. Free radicals are compounds that can occur naturally in our bodies and also as a result of pollution radiation and sunlight. World Health Organization has advised an intake of 400mg (five portions) of fruit and vegetables every day is to make sure our diet is rich in antioxidants. The resulting drink was both healthy and refreshing.   Consumers prefer quality products that offer true value Modern technology in the tea industry will be able to increase productivity Growth in tea market due to promotional efforts of healthy attributes of tea Threats       Limited number of raw materials Unstable tea supply of high quality tea High quality tea prices will increase moderately Tea market is very competitive and relative elastic Strong local competition like Unilever. The earliest stories of the health benefits of tea come from ancient As the first cup of tea using a leaf that fell from a wild tea plant.

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