PROJECT OF INTERNATIONAL MARKETING

LAUNCHING PLAN OF AN INTERNATIONAL PRODUCT

GROUP MEMBERS
MUHAMMAD SAAD 17136147
HAMMAD ASHRAF DAR 17136148
MUHAMMAD IMTIAZ 17136160
M. HAMZA ZAFFAR 17136120
RANA YASIR KHAN 17136181
YASIR ALI 17136154
SESSION: FALL-2017
SECTION: BBA (A)
SEMESTER: 7th
 PROJECT OF INTERNATIONAL MARKETING
Submitted to GIFT University, Gujranwala
In partial fulfillment of the requirement for SEVENTH semester.
Bachelor of business administration (BBA)

SUBMITTED TO:

MR. MUHAMMAD KASHIF

2|Page
 DECLARATION
We, the members of a group and students at GIFT University Gujranwala,
session 2017-2021, hereby declared that the material printed in the project is our
own work based on the marketing topics studied during the lectures. It is self-made
and not copied from any web site or any helping material. We ourselves made this
report.

ACKNOWLADGEMENT

We are grateful to our respectable teacher, “MR. MUHAMMAD KASHIF”

whose insightful leadership and knowledge benefitted us to steer this project
successfully, Thanks for your continuing support for our important work in this
field.

We should also like to underscore dynamic efforts of the Teamwork and their
expert advice and contributions to the preparation of this report.

Regards!

3|Page
Logo:

4|Page
 TABLE OF CONTENT

DETAIL PAGE NO

History/ Introduction 6

About Product 7

Summary 8

Cultural Audit 9-14

Market Analysis 15-19

Marketing Plan 20-33

Pre-Forma Financial 34-35

5|Page
History:

Tea had turned into a piece of Indo-Pakistan culture even before autonomy and is currently
regarded as a basic segment of the get-togethers and authority gatherings. It is prominent
everywhere throughout the nation and holds a fundamental hugeness in the neighborhoods. It is
known to be a standout amongst the most devoured refreshments in Pakistani cooking. Tea is
additionally alluded to as 'chai' in Urdu. While Pakistan does not create tea, it is a noteworthy
tea-expending nation, being positioned as the third biggest merchant of tea on the planet. In
2003, as much as 109,000 tons of tea were devoured in Pakistan, putting it as the seventh biggest
tea-expending nation on the planet. Tea imports ascended from roughly US$120 million out of
1998-99 to US$210 million out of 1999-2000, demonstrating an expansion of over 65%. Because
of this fame, a few brands are working under various names giving this tea to the majority
including Tapal, Lipton and Brooke Bond Supreme.

Introduction:

Accessible in more than 110 nations, Lipton is especially famous in Europe, North America,
Africa and the Middle East, parts of Asia, Australia and New Zealand and also Latin America
and Caribbean. Thomas Lipton, proprietor of Lipton, moves a wide range of flavors and
assortments of tea, for example, green tea, dark tea and also iced tea. Under the motto, "guide
from the tea greenery enclosures to the tea kettles" this innovative representative needed to make
tea a famous and receptive beverage for everybody with high caliber yet a sensibly estimated
item. Contrasted with other tea brands, Lipton has constantly centered on development because
of its nonstop dispatch of both leaf tea and prepared to drink tea items. Green tea and dark tea are
refreshments that have numerous advantages identified with them. Therefore, it is presently
adding chocolate to its item blend. This new flavor will go far to present another brand by Lipton
in the universal market making chocolate tea as a major aspect of the sound eating routine
arrangement.

6|Page
Lipton Choco dips:

After leading broad research and looking at these records, Lipton has chosen to present chocolate
enhance in their green, dark and iced teas to take into account the young's taste and for
individuals who have yet not built up the desire for tea. Adding this flavor will take into account
the current clients and will urge individuals to attempt the item as they will, now, not need to
trade off on neither the taste nor the advantages they will devour by drinking it.

Lipton Slogan:

A slogan is a memorable motto or phrase used in a political, commercial, religious, and other

context as a repetitive expression of an idea or purpose. Developing an effective advertising
slogan helps companies cut through the chatter and get consumer attention quickly. As Lipton is
already a well-known and a well-established brand, its new slogan for this product line will be:

“Chocolate is the tea to happiness”

Mission Statement:

Lipton’s mission statements will be:

1) Aim to understand it’s customers daily desires

7|Page
 2) To fulfill these desires in a more dynamic and sweeter way

3) To provide superior quality with the best taste which is energizing for the mind and the
body.

Summary:

Lipton is launching its chocolate flavored tea in Pakistan. Adding this flavor will take into the
current clients and will urge individuals to attempt the item as they will, now, not need to trade
off on neither the taste nor the advantages they will devour by drinking it. So, we will get raw
material for this product from those companies having same mother company “Unilever”. So,
Tea, being the strong point of Lipton as of now, would help in this reason. Picking similar
providers would be the main decision as individuals as of now love the kind of the brand. Tea
leaves will be transported in from various nations. The standard Lipton tea is a mix of teas from
various tea-creating nations, including India, Sri Lanka, Kenya, and China. Tea smells shift from
season to season and year to year, consequently the tea mix maintains on changing in control to
give the best quality item to the clients. For Chocolate supplier will be Magnum. Magnum is a
chocolate covered dessert and thusly the organization can utilize a similar chocolate provider for
the tea also. Magnum utilizes unique cocoa from Rainforest Alliance Certified Farms from
Australia, New Zealand and Belgium, subsequently having its influence in being all inclusive
mindful also. Thusly, similar providers can be utilized in this task also. After the production of
this chocolate tea, we will then do packing and branding of this product. After this the whole
products will be loaded into container and then towards distribution in major cities of Pakistan. A
full audit is given nest that how this company will launch its product in Pakistan.

For this we need 3 main tasks to do which are

 Cultural Audit
 The Market Analysis
 The Marketing Plan

8|Page
Cultural Audit:

For cultural audit we basically choose 6 to 7 variables which are

Location:

Pakistan is located in South Asia. It lies between 23 degrees 35 minutes to 37 degrees 05 minutes
North latitude and 60 degrees 50 minutes to 77 degrees 50 minutes east longitude. Pakistan is
bordered by India on the east, China on the north, Afghanistan on the west, Iran on the south-
west and in the south lies the Arabian Sea. Tea had turned into a piece of Indo-Pakistan culture
even before autonomy and is currently regarded as a basic segment of the get-togethers and
authority gatherings. It is prominent everywhere throughout the nation and holds a fundamental
hugeness in the neighborhoods. It is known to be a standout amongst the most devoured
refreshments in Pakistani cooking. Tea is additionally alluded to as 'chai' in Urdu. While
Pakistan does not create tea, it is a noteworthy tea-expending nation, being positioned as the
third biggest merchant of tea on the planet. As tea is already famous and loved by the people of
Pakistan, so that’s why we want to introduce Lipton Choco dips so the people can experience
and add something new to their taste.

Climate:

The climate of Pakistan depends upon the various regions. The plains of Indus Valley have hot
summers and mild winters while the Northern Areas have cold winters and pleasant summers.
The coastal region in the south has moderate temperature. Climate does not affect the
consumption of tea. Whether it is summers or winters drinking tea is a top priority.

Social Institutions:

A social institution is an interrelated system of social roles and social norms, organized around
the satisfaction of an important social need or social function.

9|Page
 Family:
Family is the most basic social institution in a society of Pakistan. And the system of
organized relationship involving workable and dependable way of meeting basic social
needs.in Pakistan family is an important role-teaching agent because it delineates relationship
among mothers, fathers, parents, children, siblings, other relatives and non-family members
the family transfer the enculturation to the young generation they also transfer the
socialization to the child by telling them that what is the social norms and values. And they
also teach what is wrong and right in the society family providing the environment for
personality development and growth of self-concept and also provide social status.
 The nuclear family:
The percentage of nuclear family in Pakistan is 31 percent and this percentage is increase
rapidly mostly in Islamabad and Karachi and some ratio in other cities of Pakistan.in nuclear
family system and in housing towns also nuclear family system mostly there is husband, wife
and one and two children with them that is called nuclear family.
 The extended family:
The percentage of extended family in Pakistan is very high that is 69 percent extended family
is mostly in Punjab area and in villages and the extend family system is the best system for
growth of new generation and learning of society and cultures etc. because family is the back
bone of society which plays a vital role in the personality formation of children because
children spend a large period of time with family members and have intimate relationship
and regular interaction with them. The primary responsibility of family is to ensure the
continuation of society both biological, through procreation and society through
socialization. Socialization is the process through which children acquire language absorbs
the accumulated knowledge, attitudes beliefs and values of their culture and learn the social
and interpersonal skills they need to function effectively in society. Through socialization
children learn to be responsible and peaceful individuals and adapt certain behavior.
 Dynamics of the family:
Parental roles
Parental role is very important and in Pakistan parents play important role for their children’s
growth they growth their children in that way they survive in the society and they live a good
life and parents also give educations to their children’s for better growth and lifestyle.

10 | P a g e
 Marriage and courtship:
Courtship is strongly disapproved from the old generation of Pakistanis. There are a lot
protection and paternal surrounding women and conversation regarding their relationships.
But some of younger generation are more liberal understandings of relationship and being
courtship during and after they finish their studies.
Many Pakistani Marriages are arranged, brokered by the elder of family.as nuclear family
are more common in urban areas of Pakistan many young adults are now choosing whom
they marry but it is often necessary to receive parents’ full approval and consent of their
choice of partner. Marriage is considered to be a healthy way to expand the family ties
among relatives so it is very common to marry within the extended family such as a cousin.
 Male and females’ roles:
Generally, men are the main source of income in households throughout Pakistan. But now a
day’s female also doing job for earing money in basically the female role is that to live in
home and doing house work and protect the home and children when their husband going on
job and she made food for children and husband, mother, father and for cousins in joined
family and in nuclear family she protects home and children when the husband going on job
and she doing work of home. And the male doing 8 to 12 hours work for earning of money
and buy necessary thing of home and children’s he earns money to complete the expenses of
children’s and others. Both playing and important role in society and female educate the
children and growth of children.

Education:

A formal process of knowledge in which some people consciously teach while adopt other’s
social role of learner.

 The role of education in society:

In Pakistan the role of education in society is inevitable in producing new generation that
enable in solving the real problems in our society and they know the right and wrong thing
they know how to behave individual and in group.
 Primary education:
Primary education is that education when a mother growth the baby in good manners and
then he/she go to school for further education in school they learn more about economy and

11 | P a g e
 society and they modify herself and change life style after getting education from school in
school level he/she know more about the Islam and society they also know that how to solve
the problems which they face in societies.
 Secondary education:
Secondary education is that education which the boy and girl get when they pass from matric
after the matric, they get admission in colleges that is a secondary education in that they meet
with different students which come from different environment and the teachers give them
more education about society and Islam and also about country economy and they learn that
how they survive in society and environment
 Higher education:
Higher education is that when he/she pass intermediate and go to universities in universities
they are adults and mature and they get education in a co-education system where both male
and female sit in classroom and get education and also work in group and they grow up and
they also change their lifestyle by seeing other students and teacher.in that level they learn
international level and they grow up and their mind also change and they spend lives with
that lifestyle which is trending now a days. They know how to face any problems in societies
and other.
 Literacy rates:
Currently Pakistan has a 58% literacy rate. Female literacy is worse than that of men because
of the overarching patriarchal culture and challenging conditions for females.

Living Conditions:

The rate of meat consumption in Pakistan is 14kg per person. The vegetable consumption rate in
rural areas is 38.4kg per capita and 39.4kg per capita in urban areas. One-third of all children are
underweight, nearly 44% are stunted, 15% are wasted, half of them is anemic and almost one-
third of these children have iron deficiency anemia. Among women, 14% in the reproductive
age bracket are thin or wasted (with a body mass index less than 18.5 kg/m2) and this prevalence
is highest among households that are food insecure.

The Pakistani cuisine comprises of three meals, including breakfast, lunch, and dinner. A typical
Pakistani breakfast consists of eggs, bread, Paratha, fruits, and tea. On Sundays, there are
particular meals like Halwa Puri, Cholay, and Paye. For lunch and dinner, people eat dishes like

12 | P a g e
Biryani, Korma, Nihari, Sajji, Chapli Kabab, Lentils (Dal), vegetables, including rice and curry.
At the end of the meal people eat dessert like Kheer, Halwa and sweets. In the evening people
usually drink tea often served with cakes, biscuits, samosas, pakoras etc. People usually dine out
at the weekends and there are a lot of options are available like pizza, burgers, shawarmas,
steaks, Pakistani cuisine etc. So why not people drink chocolate tea while having their evening
snacks and add a new flavor in their evening meal.

Recreation, Sports and Other Leisure Activities:

People play sports like Cricket, Hockey, Football, Squash, Polo, Snooker and Kabaddi. Cricket is
the most famous sport in Pakistan. They also play games on PlayStation, Xbox and other games
online. People also spend their leisure time on social media apps like Facebook, Instagram,
Snapchat, Twitter, YouTube etc. Social security laws provide for both full and partial/early
pension. So, income spent on leisy activities is 10-20%.

For full pension, a worker must have attained 60 years of age (55 years for women) with at least
15 years of contributions. A reduced pension is paid to the workers with ages from ages 55 to 59
(men) or ages 50 to 54 (women) with at least 15 years of contributions. Old-age pension is 2% of
the insured worker's average monthly earnings in the last 12 months multiplied by the number of
years for which contributions have been made. As for the early/partial pension, full pension is
reduced by 0.5% for each month that the pension is taken before retirement age (So, a worker
taking pension after 55 years of age gets only 70% of the full pension). If a worker does not meet
requirements of full or partial pension, there is also an old-age grant. Social Security is also
provided to the dependents or survivors. The dependents include widow, widower and children.
Pakistani Healthcare system consists of public and private sector. The public sector serves 30%
while private sector serves 70% of the population.

While watching a match or using a social media app, youngsters, elders as well as retirees can
rejoice the Lipton chocolate Tea.

13 | P a g e
How Related to our brand

These variables are related to our brand because if a family member elder is the user of our brand
then this transfer to their children their children also use that brand because when the husband
come home from job the wife make tea for the husband and both sit and take tea and talk with
each other and discus the whole day. If we see in Pakistan that in extended family when the elder
member of the family sit together they enjoy tea during discussion on any topic like political
business and others families discussions.so the children’s are the potential user of our brand and
if we see the education system in school and colleges and universities the students use the tea in
winter and also in group discussion they also use tea so the students also user of tea and if their
elder don’t use our brand when the students use our brand they recommend their family mother
father and siblings about that brand for use in marriage walima and barat they also use tea the
Pakistani use tea in meetings and other events. There living condition and Recreation, sport and
other Leisure Activities of Pakistani’s somehow also related to our product.

14 | P a g e
The Market Analysis:

The market in which our product is to be sold:

Geographical region:
Lipton will dispatch this new better equation just in Asia, especially in Pakistan to test
whether this new taste can be disguised in their tea drinking society. Along these lines,
diverse urban focuses, for example, Lahore, Islamabad, Karachi, Multan and more will be
entered. The motivation to choose these urban focuses is that the organization won't need
to contribute more cash to set up purposes of offers in other littler urban areas except if
there is ideal interest of the item in the market.

Forms of transportation and communication available in that region:

Forms of Transportation:
As we are doing this in main cities of Pakistan so everything is available in these regions
so, we will use 5-6 22-weller truck then 15-20 pick-up wagons then 30-40 pick-up bikes.
Communication:
Lipton will adopt the integrated marketing communication strategy with a blend of
various promotion tools whereby a consistent and compelling message will be delivered
to the target audiences. It will help the company create awareness about the new flavor
and gradually develop a preference for it in the long run.

Consumer buying habits:

Product-use patterns:
Different packaging of product has different way to use. If you are buying the tea bags,
just dip the tea bag in hot milk or water. And if you buy the tea packet, simply add tea in
water or milk.
Product feature preferences:

15 | P a g e
 Product feature preferences are subjective individual tastes, likes and dislikes, and
predispositions. When you’re marketing a product like tea to your target consumers, you
need to consider their personal preferences to get the best possible results. What are their
motivations? Which distribution channels do they tend to buy from most? These are
important questions to answer, and can be easily tested.

Shopping habits:

Stick to a strict budget.

Get all your shopping done in one trip.
Shop at secondhand stores.
Sign up for special rebate programs.
Buy products out of the shopping list

Distribution of the product:

Channel of Distribution
Manufacturer → Model-hub→Wholesaler → Retailer → Consumer

Typical retail outlets:

Retailers are the outlets where consumers can buy items usually your nearby grocery
store down the road. They can offer through storefront areas or through online channels.
Retailers buy items from distributors or wholesalers. Consumer can easily get Lipton
chocolate tea from there

Product sales by other middlemen:

After retailer, the consumer also gets the Lipton chocolate tea from agents and wholesale
dealers. They sell items in bulk.

Advertising and promotion:

Advertising media usually used to reach your target market:

TV: Lipton will lead ads by expediting board VIPs, for example, Ali Zafar and Mahira
Khan to speak to its childhood and in addition to make a brand an incentive for the
clients. Since Lipton has officially kept up a family like bond with its customers by

16 | P a g e
 candidly engaging the gathering of people through its legacy, along these lines it will
currently likewise add the normal component to induce the individuals who long for
improved low-calorie refreshments.
Print: To bring issues to light of these new items, Lipton will publicize Choco Dips in
various week after week magazines (Sunday magazines) and in addition papers, for
example, Daily Times and The News which focus on the mass gatherings of people.
Boards: Attractive announcements will likewise be put all through the urban
communities which will be gone for making mindfulness about this "SWEET"
development in the Pakistani tea industry, consequently making a solid place in the brain
of the shoppers

Sales

Lipton will put its representatives at various areas and retailing outlets to give the
clients free samples of the product offering. This will give an informal impact
which will create positive reaction for the item. These free samples will be given
frequently in the stores for the initial couple of weeks.

Pricing strategy

Customary markups:
Markup (or cost spread) is the distinction between the selling price of a good or
service and cost. It is regularly communicated as a rate over the fetched. A
markup is included into the overall taken a toll caused by the maker of a great or

17 | P a g e
 benefit in arrange to cover the costs of doing trade and make a benefit. The
formulae of markup are (retail rate – cost).
Types of discounts available:
There are of many discounts available for Lipton chocolate tea. However, Lipton
have very strong bonding with target market of Pakistan.

 Buy one get one free

This discount may require a buyer to receive two of the same inventory items, or it
could allow for a free item that differs from the initial purchase. This discount is
used to clear out inventory, or in general when the gross margin on a product is high
enough to still generate an adequate profit for the seller.
 Free shipping
The seller grants free shipping if a discount code is used, or if orders occur within a
certain period of time. This is linked to the order date rather than the shipment date,
since the shipment date could be delayed.
 Seasonal discount
A price reduction may be offered at certain times of the year when sales would
normally be slow. For example, a hotel at a ski resort might offer low prices during
the summer months when it would otherwise have few visitors.
 Volume discount
Once a customer reaches a certain amount of sales volume during the measurement
period (typically a year), a volume discount applies. This discount can be retroactive,
covering all preceding sales during the measurement period, or it may only apply to
all subsequent sales. In the first case, a credit or payment will be issued to the
customer that relates to the prior purchases.

Compare and contrast your product and the competition’s product:

Competitor brand name:

18 | P a g e
 Lipton has constantly kept an eye on the rivals in the market with the end goal to offer
something additional to the clients to make a benchmark for the rest. The immediate
rivalry operating at a profit and green tea showcase originates from Tapal and Vital Tea.
Features:
The competitor brand features and mostly have resemblance with our product. However,
the smell of tea and the taste may different. Lipton tea is tastier then tapal tea or other
competitors in the market. The size of Patti of tapal tea is smaller than the Lipton tea.
Package:
The package of the competitors in tea industry is almost the same. They have the package
of tea 100gram, 200gram, 500gram and 1kg. They also have the packaging of tea bags
that weigh about 2-3 gram.

19 | P a g e
The Marketing Plan:

Marketing objectives:

Some of the important marketing objectives for Lipton could be:

 Increase sales by 15-20% of Lipton products within 6 months
 Grow market share of Lipton from 43% to 50%.
 Launch new products (Lipton Chocolate Dip) and create awareness
 Target new customers who don’t consume Tea, most of youngsters
 Enter new markets of Pakistan and its cities locally.
 Enhance customer relationships by giving them a new and quality product.
 Increase profit on the newly launched (Lipton chocolate Dip) Product.
Target Market:

Lipton's target market will be normal to high class office workers, youthful and moderately aged
individuals relying upon the sort of tea they expend. also, the youngster who didn’t consume that
old desi teas and want to go with the new and trendy things. It will focus on the clients through
separated showcasing since the chocolate enhanced tea will be offered for individuals with their
novel attributes.

Market penetration and coverage:

Market Share Percentage
As Lipton is covering around 43% of tea
market share in Pakistan. Others;
Tetley; 6%; 2%;
6% 2%
Vital tea; 8%; 8%
So, by launching new product like Lipton
Lipton; 43%; 43%
Chocolate Dip, it can increase its market share
by increasing number of potential customers. Tapal; 41%; 41%
And these potential customers can be achieved
by employ advertising, social media
campaigns, and direct sales etc.
Lipton Tapal Vital tea Tetley Others

20 | P a g e
So, by capturing new market and potential customers Lipton can increase its Market Penetration
and coverage by 7 to 10 % more in Pakistan.

SWOT Analysis:

Strengths:

 Unilever is a multinational company

 Lipton has been present in the Pakistani market since 1948
 Strong Image and Customer Base
 Well established supply chain with distributors, wholesalers and retailers
 A new sweet flavor that caters for the taste of the Pakistani Public

Weakness:

 High competition from Tapal, Brooke Bond and Vital Tea

 Low market share in Khyber Pakhtunkhwa (KPK) Province due to cheaper alternatives
available.

Opportunities:

 Pakistan has a growing population, therefore the Tea market is increasing

 The chance to promote our product in KPK and other rural areas

Threats

 Rising inflation in the country

 The emergence of new competitors
 Possible increase in the market share of loose tea (unbranded smuggled tea)
 Lipton’s profit margin is exposed to rupee devaluation.

21 | P a g e
Product Adaption and Modification:

Product adaption and modification can be adapted by using product component model which is
a tool for characterizing how a product may be adapted to a new market by separating the produc
t’s many dimensions into 3 components.

Core Components:
Core components for our Lipton chocolate tea is about product platform, design feature and
functional features of product so for our product we will place our product in mall and
utility stores or to local retailer’s design will be the mixture of chocolate and tea and its
functional feature is to give customers a healthy and tasty product.
Support Service Component:
As the nature of our product, we normally don’t need any kind of warranty, spare parts,
repair and maintenance, installation etc. so we only have to give delivery if someone order
online so for this, we can contact with a delivery services company to get our problem
solved.
Packaging Component:
In packaging components, we ll talk about price quantity package styling trademark and
brand name. so here the detail

Price with quantity:

Product Quantity Price

Lipton Chocolate Dips small box 50 Piece Rs/-350

Lipton Chocolate Dips large box 100 Piece Rs/-650

22 | P a g e
 3in1 mix latte 1 Piece Rs/-50

Packaging:

Styling:

Trademark:

23 | P a g e
Promotion Mix:

The Promotion Mix refers to the blend of several promotional tools used by the businesses to
create, maintain and increase the demand for goods and services.

So, it is the integration of advertising, sales promotion, personal selling and direct marketing.

Advertising
Sales Promotion
Direct
Personal
Marketing
Selling

Advertising:

Company will do advertisement so that customer come to know about the new product is being
launched so Lipton will make an ad like Lipton will lead ads by expediting board VIPs, for
example, Ali Zafar and Mahira Khan to speak to its childhood and in addition to make a brand an
incentive for the clients. Since Lipton has officially kept up a family like bond with its customers
by candidly engaging the gathering of people through its legacy, along these lines it will
currently likewise add the normal component to induce the individuals who long for improved
low-calorie refreshments.so related to this an ad will be made to run on TV ads. Also, we can use
bill board advertisement and digital /social media advertisement.

24 | P a g e
 Objectives:

1. To give people a new taste and low calories refreshment.

2. To inform them about the new product which is being launched in town.
3. Make it a thing of superiority so that everyone wants to consume that.
4. To take them back into their child hood where they consume chocolates.
5. To let Urban communities, know about this "SWEET" development in the Pakistani tea
industry.

 Media Mix:

Media which we will use could be

Television Ads
Billboards
Websites
Digital media
Social Media

 Message:

To kept up a family like bond with its customers by candidly engaging the gathering of
people through its legacy.

 Costs:

Advertisement like Tv ads, bill boards and social media will cost around 35-40 million.

Type Cost

25 | P a g e
 Tv ad 25-30 million

Bill boards 4.5-5 million

Social media 0.5-1 million

Sales Promotion:

Sales promotion will be given to the customers to increase sales of the product these sale
promotions could be like Dip & Win campaign in this campaign we can post a code on the
product box. On scratching it you will get a code then message this code to Lipton and get a
chance to win something good like a car or something. Another sales promotion could be 23
march (Pakistan Resolution Day) campaign like we can give our customer 23% off on buying
our product. Also, we can attach our tee dips with other Lipton tea sachet. Or make a pair of it
with a well-known and highly sold product.

Objective:

1. To increase and boost sales of newly launched product.

2. So that people at least try the new product.
3. People don’t hesitate to buy it as an expensive product.
4. At least people come to know about it
5. People buy it not for consuming it but for getting a car.

Coupons:

First 500 customers will get 20% off.

Buy Lipton chocolate dip and get discount coupon on other Unilever products.

Premium:

Buy 5 boxes and get 1 box free

Get our product for your office or home permanently and get extra boxes or gifts or some
discounts or become or exclusive customers.

Cost:
26 | P a g e
 The amount of percentage we are discounting will depend on our total sales on these
discounted products etc.

Personal Selling:

For personal selling we could do some campaigns in malls or other public gatherings etc. where
our sales person interacts with the customers directly and make them to at least try this product.
And give us instant feedbacks.

Direct marketing:

With the intent of technology, we can reach customers directly without any intermediaries or any
medium. We can place our product on DARAZ like online stores. Or online from website or you
can order from Facebook and likewise things. Also, Lipton can use web-based life: Platforms,
for example, Facebook and Twitter will likewise be utilized to enhance customer and friends’
collaborations. Lipton will essentially concentrate on customer produced and purchaser
commitment advertising to take care of business their immediate contribution in the brand.
Purchasers can give surveys of the taste on the organization's authentic site, through tweets
(#LiptonCocoLoco) and on Facebook pages. The potential clients, through these web-based life
stages, will connect specifically and in a roundabout way with one another.

Advantages/Disadvantages of Transport Mode

Railroads:

Advantages:

1. Durable:
The greatest advantage of the railway transport is that it is the most durable mode of transport
as it is the least affected by weather conditions such as rains, fog etc. compared to other
modes of transport.
27 | P a g e
2. Better Organized:
The rail transport is better organized than any other form of transport as it has fixed routes
and schedules. Its service is more certain, uniform and regular as compared to other modes of
transport.

3. High Speed over Long Distances:

Its speed over long distances is more than any other mode of transport, except airways. Thus,
it is the best choice for long distance traffic.
4. Suitable for Bulky and Heavy Goods:
Railway transport is economical, quicker and best suited for carrying heavy and bulky goods
over long distances.
5. Larger Capacity:
The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic
which can easily be increased by adding more wagons or boxes.

Disadvantages:

1. Huge Capital Outlay:

The railway requires is large investment of capital. The cost of construction, maintenance
and overhead expenses are very high as compared to other modes of transport.
2. Lack of Flexibility:
Another disadvantage of railway transport is its inflexibility. Its routes and timings cannot be
adjusted to individual requirements.
3. Lack of Door-to-Door Service:
Rail transport cannot provide door to door service as it is tied to a particular track.
Intermediate loading or unloading involves greater cost, more wear and tear and wastage of
time.
4. Unsuitable for Short Distance and Small Loads:
Railway transport is unsuitable and uneconomical for short distance and small traffic of
goods.
5. Booking Formalities:

28 | P a g e
 It involves much time and labor in booking and taking delivery of goods through railways as
compared to motor transport.
6. No Rural Service:
Because of huge capital requirements and traffic, railways cannot be operated economically
in rural areas. Thus, large rural areas have no railway service even today. This causes much
inconvenience to the people living in rural areas.

Air Carrier:

Advantages:

1. High Speed:
It is the fastest mode of transport and therefore suitable for carriage of goods over a long
distance. It requires less time.
2. Quick Service:
Air transport provides comfortable, efficient and quick transport services. It is regarded as
best mode of transport for transporting perishable goods.
3. No Infrastructure Investment:
Air transport does not give emphasis on construction of tracks like railways. As no capital
investment in surface track is needed.
4. No Physical Barrier:
Air transport is free from physical barriers because it follows the shortest and direct routes
where seas, mountains and forests do not obstruct.
5. Natural Route:
Aircrafts travels to any place without any natural obstacles or barriers because the custom
formalities are compiled very quickly. It avoids delay in obtaining clearance.

Disadvantage:

1. Risky:
Air transport is the riskiest form of transport because a minor accident may put a substantial
loss to the goods. The chances of accidents are greater to other modes of transport.
2. Very Costly:

29 | P a g e
 Air transport is considered costly as compare to other mode of transport.
3. Small Carrying Capacity:
The aircrafts have small carrying capacity and therefore these are not suitable for carrying
bulky and cheaper goods.
4. Unreliable:
Air transport is unreliable as it depends of the weather forecast. Normally if the weather is
not certain the flight may get delayed.

5. Huge Investment:
Air transport requires huge investment for construction and maintenance of aerodromes. It
also requires trained, experienced and skilled personnel which involves a substantial
investment.

Ocean carrier:

Advantages:

1. Less Maintenance Cost:

Maintenance cost in rail and road transport is quite high but maintenance cost of ocean
carrier is quite less.
2. Cheap:
The transport channel is quite cheap as compared rail and road Transport.
3. Useful for Bulky Goods:
Heavy and bulky goods can be transported easily at little cost through ocean carriers.
4. Useful During Natural Calamities:
During natural calamities like flood and rains, when rail and road transport is disrupted, relief
operations can be operated through ocean carriers.
5. Important for Foreign Trade:
Ocean carrier plays important role in foreign trade. Pakistan’s foreign trade is mainly
dependent on ocean carriers.

Disadvantages:

1. Slow Speed:

30 | P a g e
 It is a slow means of transport. as it has to come from a longer route.
2. Riskier:
Ocean carrier is riskier as compared to other means because there is always danger of sinking
ships or boats.
3. Lack of Infrastructure:
Certain parts of the world might not have the facilities of ports and terminals and can
therefore not receive large ships carrying containers. Usually, a significant amount of capital
expenditure is essential to handle container-based networks.

Motor Carrier:

Advantages:

1. Less Capital Outlay:

Road transport required much less capital Investment as compared to other modes of
transport such as railways and air transport.
2. Door to Door Service:
The outstanding advantage of road transport is that it provides door to door or warehouse to
warehouse service. This reduces cartage, loading and unloading expenses.
3. Service in Rural Areas:
Road transport is most suited for carrying goods and people to and from rural areas which are
not served by rail, water or air transport.
4. Flexible Service:
Road transport has a great advantage over other modes of transport for its flexible service, its
routes and timings can be adjusted and changed to individual requirements without much
inconvenience.
5. Suitable for Short Distance:
It is more economic and quicker for carrying goods and people over short distances.
6. Lesser Risk of Damage in Transit:
As the intermediate loading and handling is avoided, there is lesser risk of damage, breakage
etc. of the goods in transit.

31 | P a g e
7. Saving in Packing Cost:
As compared to other modes of transport, the process of packing in motor transport is less
complicated.
8. Rapid Speed:
If the goods are to be sent immediately or quickly, motor transport is more suited than the
railways or water transport.
9. Less Cost:
Road transport not only requires less initial capital investment, the cost of operation and
maintenance is also comparatively less.

10. Private Owned Vehicles:

Another advantage of road transport is that big businessmen can afford to have their own
motor vehicles and initiate their own road services to market their products without causing
any delay.

Disadvantages:

1. Seasonal Nature:
Motor transport is not as reliable as rail transport. During rainy or flood season, roads
become unfit and unsafe for use.
2. Accidents and Breakdowns:
There are more chances of accidents and breakdowns in case of motor transport. Thus, motor
transport is not as safe as rail transport.
3. Slow Speed:
The speed of motor transport is comparatively slow and limited.
4. Less organized system:
The road transport is comparatively less organized. More often, it is irregular and
undependable

We selected motor carrier mode for our transportation as we just have to transport our goods or
raw material or products within the country so air carrier can’t work and also ocean carrier can’t
be used so the best option, we have is the motor carrier.

32 | P a g e
Also, we don’t need any kind of marking and labeling regulations or any type of containerization
as we are not importing anything from outside of the country. So, it will not give us any cost like
importing cost or custom/duty etc.

Channels of distribution:

So, we will use the already established distribution channel of Lipton which is.

ManufacturerModel HubWholesalerRetailerConsumer

So, first of all the chocolate dip will be manufactured in Karachi raw material of which will be
taken from magnum and Lipton. So the whole manufacturing will be done in Karachi then
product will go for packing and after full packing and branding it will be loaded into containers
so that it could be moved to other major cities like Lahore Islamabad Gujranwala Peshawar etc.
then these containers will get unloaded in model hub of these major cities and then the product is
loaded into small pickup van and then they are moved towards wholesalers and from wholesalers
to retailer on bike and then finally from retailer it will be in our customers hand. Price of the
product will also get changed as it been passed to the next one.

So, a small art is been drawn in which the whole process is discussed along with the change of
prices from 150350.

Each of the distribution channel will work on cash as well as on credit. Because for selling this
product company have to invest money in the form of giving their product to retailers,

33 | P a g e
wholesalers, and model hubs on credit.

Manufacturer150

Model Hub 250

Wholesaler 275

Retailer 300

Consumer 350

Marketing budget:

Overall marketing budget will include the following:

Selling expenses:

Selling expenses includes any cost incurred by the sales department. Mostly these costs include:

Type of expenses Particular Cost(monthly)

Sales person salaries or wages Monthly salary 25000

Commissions For achieving target 5000-7000

Benefits Sim/call and net package/insurance 2000-3000

34 | P a g e
 Travel and entertainment Petrol and food 9000-10000

Utilities bills Electricity/gas/water 1000000

Other departmental expenses Depreciation or thing else 5000-10000

Advertising/promotional expense:

Types of expense Particular cost

TV ads Ad will be played on HUM or DUNYA news 25-30 million

Boards 8 to 10 bill boards in main cities 4.5-5 million

Print Pamphlets, magazine, and newspaper 0.1 million

Social media ads Facebook, YouTube, and Instagram etc. 0.5-1 million

Designer For designing posts or videos 50000

Distribution expenses:

Types of expense Particular cost

22-wheeler truck From Karachi to other cities (5) 2000000

Pick-up wagon From model-hub to wholesaler (15-20) 250000-300000

Pick-up bikes From wholesaler to shop (30-40) 225000-275000

35 | P a g e
Product cost:

Types of expense Particular cost

Direct labor If labor is between 80-100 1200000

Direct material Tea bags/tea mixture/stickers/thread 50-70 million

Factory overheads Depreciation/rent/building insurance 3000000

36 | P a g e