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Tapal Tea (Pvt) Limited

Reasons for Success Against MNCs

Submitted To: Sir Ali Abdullah Submitted By: VITALS MBA-4th semester (Morning)
Shaher Bano Hashmi Anam Naz Anam Rehna Nayab Zafar Nauman Malik Hammad Hashmi 09041020-010 09041020-017 09041020-034 09041020-002 09041020-059

Karachi. Tapal. Mr. . INTRODUCTION: In 1947. The company continued to grow under the management of the founder's son. today Tapal has become the largest. the potential of Pakistani companies must be admired that even in this time Globalization and intense competition. Tapal started out as a family concern under the personal supervision of its founder. Adam Ali Tapal. Tapal moved from success to success introducing tea brands to suit every taste and pocket. economic indicators and investment opportunities that attract the multinational to enter into its market. Making a modest beginning over half a century back. There are a number of MNCs operating in Pakistan in different industries. From this auspicious beginning. The factory is operated by about 250 professional employees. Today Tapal Tea is managed by the founder's grandson. Aftab F.Tapal Tea (Pvt) Limited PREFACE: Pakistan is one of the fastest growing economies of the world having touched a record GDP growth rate of 8. A well trained tea taster and tea specialist himself. warehouses equipped with state-of-the-art equipment. the country offers both a lucrative consumer market as well as a well trained competent workforce.4% in 2005. One of such local companies is Tapa tea (Pvt) Limited. Tapal. Aftab Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan. It has modern tea blending and packaging factories. The testimony of their quality has made them the first tea company in Pakistan to earn the ISO-9001: 2000 Quality Certification. producing various popular and high quality brands of tea. It contains such business environment. Faizullah A. 100% Pakistani owned Tea Company in the country. Mr. Mr. With a population of 180 million people. sold from its retail outlet in Jodia Bazar. Their motto "never compromise on quality" remains the constant in producing Tapal Tea that has resulted in customer's brand loyalty. Mr. they are giving a tough time to these MNCs.

 Tetley has 4% market share Tapal 41% Others 6% Tetley 4% Vital 6% Market Share Unilever 43% . Major of them are as follow:  Unilever Private Limited Lipton Yellow Label Supreme Red rose Pearl Dust  Vital Tea Limited  Tetley Limited MARKET SHARE: In organized tea Market of Pakistan the distribution of Market share is as follow:  Unilever Pakistan limited has 43% market share. creativity and ethical values. Through continuous innovation and research and development they gain a big share of Pakistani market. They still are growing and hope to be a leader in a market in coming years. To achieve leadership in all categories of our core business and diversify in areas which compliment the core business.Tapal Tea (Pvt) Limited Tapal is proud to have been a part of Pakistan's history since its inception. be a benchmark for quality. VISION ³To satisfy our stakeholders and as a guiding principle to our business. As a company they have grown and flourished together with the great nation.´ MAJOR COMPETITORS: There are a number of competitors in Pakistan Market to which Tapal has to compete.  Tapal private limited has 41% market share.  Vital tea limited has 6% market share.

Unilever is a multinational company operating in Pakistan. Tapal Family mix 7. Tapal Special Tea Bags 4. Tapal shades of green Tapal has 12 different brands.Tapal Tea (Pvt) Limited  The remaining 6% belongs to other market share in the organized market. Tapal Danedar. It has captured a big portion of market with help of its 4 different brands and is considered as the biggest competitors of Tapal. Gulbahar 3. BRANDS: Following are some brands being offered under the name of Tapal: 1. Tapal instea 12. Tapal chainak 9. 2. Tapal Mezban 6. Tapal special 11. Tapal Safari 5. Tapal tezdum 8. Danedar is the brand with the high sales volume with following brand of Mezban. Tapal Ice Tea 10. .

whether Danedar. These activities cover Outdoor Billboards. which not only helps in educating the consumer but also engages them to the brand. These activities have added a new dimension to their marketing activities making them more attractive. making it one of the first few companies in the world to achieve this milestone.Tapal Tea (Pvt) Limited REASONS FOR SUCCESS Although Tapal is a local company yet it is competing successfully with large players (MNCs) in market. concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction. Tapal acquired the ISO9001: 2000 certification. always taste exactly as expected. Brand Activation Activities The reason behind Tapal¶s success in catching the hearts of the consumers is that. these activities also provide the consumer with a 360-degree product experience. That's why all the brands. Event Marketing. This has been possible because of its strong Brand Activation Activities. Not only this. Tapal Special or Tapal Family Mixture. This commitment to quality has resulted in a high level of customer satisfaction and persistent brand loyalty. and the Quality Control Department at Tapal ensures that flavor and freshness is never compromised. it has always been close to them. retaining aroma and freshness till the last sip. exciting and interactive as possible. Again in December 2000. A commitment to quality "Never compromise on quality" has been the motto at Tapal since the very beginning. It is not only giving tough time to MNCs operating in Pakistan but also has made successful entry in foreign Markets. In addition to the standard requirements. All this success is mainly due to the excellent and efficeit strategies of company. Consistency and quality are the two keystones of Tapal's production policy. These activities not only reinforce Tapal as a national company but also assist all its other brands in having their desired impact wherever required. These activities are customized according the brand requirements to achieve maximum results. A look on different factors involved in the success of Tapal Tea (Pvt) Limited is as follow. . the ISO9001: 2000 certification system includes requirements for environment improvement. Tapal Tea became the first Pakistani Tea Company to earn the ISO9001 certification. In December 1997.

This soft packing technology keeps tea fresh and packaging costs economical. At this facility tea is blended and packed in hygienic conditions. Tapal did it very efficiently as their innovation shows this. Their continuous learning make them a real competitor against international recognize brands like supreme.From the very beginning. Weekly Bazaars. although it is not clearly segmented but. Backward Integration By achieving specialties of tea production. Tapal has adopted backward integration strategy and has begun tea plantation at Shinkiari in the northern region of Pakistan. lipton etc. and Merchandizing of the products. Continuous Learning About Markets In order to survive in the market you must have continuous learning about the market. . 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. Rural Development Programs. untouched by human hands. This project helped Tapal to sustain the quality of inputs and to successfully compete with competitors. Soft Packing Process Technology is an important factor in order to be first in line of competition. The main objective of this segmentation is to examine differences in needs and wants and to identify the segments within the product market of interest. Market Segmentation As a whole when we see the market of tea in Pakistan. Tapal realized the importance of importing innovative technologies such as the soft packing process. Tapal did this thing very accurately that it segmented the market very accurately. They clearly look at the nature and extent of diversity of buyers needs and wants in a market. This thing offers a great opportunity for Tapal to focus its business capabilities on the requirement of one or more groups of buyers. Its 12 brands in the current clearly shows the potential of each brand in each segment define by the company. mobile kitchens etc). They have the ability and they utilize it beautifully. A fully automatic facility was established where soft packs were produced for the first time in Pakistan.Tapal Tea (Pvt) Limited Road Shows (floats.

 The first to market Kenya teas in Pakistan.  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). brand positioning and communication according to the changing requirements of the consumers. Research and development Tapal danedar tea has very effective research and development programs through which it is having very innovative brands with production efficiency. media planning and product development. . Skills and Accumulated knowledge Tapal Limited has developed impressive skills in operating its business model at very high quality accumulated knowledge has guided management improving business design overtime Coordination of Activities Coordination of activities among different departments is the essence of Tapal Limited¶s success. This strategy differentiated its products with those of competitors. This research is used for continuous improvement in product quality. It conducts various researches in the area of retail audits.Tapal Tea (Pvt) Limited Constant Innovation Tapal has been introducing the innovative ideas continuously. Some of its most important innovative actions are as follow:  The first to introduce soft packs in the country. consumer behavior.  The first tea company to be awarded the ISO 9001/2000 Quality Certification Differentiation strategy Tapal Limited has adopted differentiation strategy in tea market of Pakistan. Research and development programs support other departments to have controlled and timely production. Tapal is a research-oriented company. It has introduced 12 different brands that are designed by keeping in view the needs of customers and cultural differences. Such variation of products has helped capturing the maximum market share of Pakistani Tea Market.  The first to invent the highly successful brand Danedar Leaf Blend.

com/pdfs/NewsBlend%20Jan08-June08. http://www.com/pages/news/national/tapal-launches-new-flavours26288. http://www.tapaltea.pakistaneconomist.pdf 3.creative-pakistan.com/?p=298 .aspx 5.com 2. http://www.tapaltea.Tapal Tea (Pvt) Limited References: 1.com/issue2000/issue46/i&e1. http://thefinancialdaily. http://www.htm 4.