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MARKETING ACTIVITIES OF LIPTON
FOR PRINCIPLES OF MARKETING COURSE
SUBMITTED BY: SAMIA ALI BUSHRA SABA HINA JINDANI (3865) KOMAL SHAMNANI (3863) SUBMITTED TO: MR. SANATULLAH
SUBMISSION DATE 29TH DECEMBER 2010
marketing activities of lipton
TABLE OF CONTENT
Cover page Title page Table of content Acknowledgement Executive summary Introduction to unilever Introduction to lipton STP Differentiation of lipton 4ps CRM BCG Matrix Product life cycle Micro Environmant Macro Environment Consumer buying behavior SWOT Analysis Competitive Analysis Conclusion 1 2 3 4 5 6 7-10 11-14 15 16-21 21 21-22 22-23 25-28 29-31 31 31 32-33 33
We pay our gratitude to all those who extended their full cooperation with us for the completion of this project. Also we are really thankful to our parents who gave us courage. . which has increased our knowledge and awareness.4 Acknowledgement He gave us a world full of challenges And gave us ambition to try World that holds marvelous secrets And minds that would ask why? He gave us his guidance He gave us his strengths He gave us his infinite love To help us in making our wonderful world More and more like above First of all we are very thankful to Allah the Almighty who gave us strength to deliver this project and secondly we are also very thankful to our teacher Sir Sanatullah who gave us an opportunity to present this informative and creative project. We are thankful to (Assistant Manager Marketing Research) of Lipton who guided us about their company and provided us the information about Lipton tea. help us in doing this and prayed for our success. This project really provides us a lot of information and InshAllah it will be helpful for us in the future.
as loose tea. consumes a large amount of foreign exchange. and therefore can be sold cheaply. At present there are two kinds of tea available in the market: branded and unbranded (loose) tea. The current tea imports are approximately 150. including Pakistan. the ratio is (54:46) respectively. a traditional hospitality item in Pakistan. Pakistan mainly imports tea from Kenya and other African countries likeUganda. Bulk importers sell tea to retailers in loose form. Smuggled tea escapes all duties and levies. the colonials improved the quality and taste of tea. Therefore. Burundi and Tanzania. Indonesia and Bangladesh. There are unlimited quantities of smuggled tea flooding the market. Over a period of time. while multinational companies in Pakistan also import tea from Sri Lanka. The main problem at present is that smuggled tea has now taken over the market. . BRANDED V/S UNBRANDED Branded Tea Unbranded Tea All tea in Pakistan is imported. Now efforts are being made to grow tea leaves locally.000 tons. while the second category of bulk importers sell packaged tea under brand names. tea.5 EXECUTIVE SUMMARY Tea is considered to be an essential consumption item in many countries of the world. simply because of the high duty and taxes levied by the government on branded tea. The history of tea drinking in the subcontinent can be traced far back.
3 billion (Euro 309 million) in 2007. It contributes significantly to the national exchequer through tax revenue and is committed to developing downstream capability through technology transfer to 3P manufacturers. In 1984 the company bought the brand Brooke Bond (maker of PG Tips tea). including low unit priced packs. HISTORY: Unilever was created in 1930 by the amalgamation of the operations of British soapmaker Lever Brothers and Dutch margarine producer Margarine Unie. followed by all Lipton tea bags globally by 2015. It declared its aim to have all Lipton Yellow Label and PG Tips tea bags sold in Western Europe certified by 2010. as well as one of the largest multinationals operating in the country. 4 wholly owned and 6 third party manufacturing sites across Pakistan. . cleaning agents and personal care products. Laundry. The company operates through 5 regional offices.4% Unilever equity) is the largest FMCG Company in Pakistan. a merger as palm oil was a major raw material for both margarines and soaps. an international environmental NGO. Unilever has a wide reach and it's distribution network reaches remote regions within the country.6 INTRODUCTION TO UNILEVER Unilever is an Anglo-Dutch multinational corporation that owns many of the world's consumer product brands in foods. In May 2007 it became the first tea company to commit to sourcing all its tea in a sustainable manner. employing the Rainforest Alliance. opening new vistas for career development. Personal Care. INTRODUCING UNILEVER PAKISTAN LTD: The company had a turnover of Rs. and enjoys a leading position in most of its core Home and Personal Care and Foods categories. as well as third-party suppliers in Africa and other parts of the world. suppliers and distributors. Unilever is a proud part of Pakistan’s history. In the 1930s the Unilever business grew and new ventures were launched in Latin America. The company is said to promote sustainability and started a sustainable agriculture program in 1998. beverages. contributing to economic growth of the nation and catering to the daily needs of 164 million people. compared with an original 90%. Beverages (Tea) and Ice Cream. By 1980 soap and edible fats contributed just 40% of profits. Globally Unilever is increasingly drawing talent from its operatives in Pakistan. to certify its tea estates in East Africa. 23. Personal Wash.g. Unilever Pakistan addresses all segments of the socio-economic pyramid. Unilever Pakistan (70. e. With a wide range of offerings.
making a big splash in the global beverages market. LIPTON YELLOW LABEL: Lipton Yellow Label has been sold since 1890. The 100% International Blend . PAINTING THE WORLD YELLOW: Lipton is the world's leading brand of tea by far. Lipton Yellow Label's assurance of quality has helped it become the world's largest selling tea brand. It's the global market leader in both leaf and ready-to-drink tea.7 INTRODUCTION TO LIPTON Lipton is one of the world's great refreshment brands. it is the epitome of international quality. . MAKING A BIG SPLASH: Lipton is one of the world's great refreshment brands.. Lipton was created at the end of the 19th century by Sir Thomas Lipton in Glasgow. meaning that up to 30 teas from many different origins are blended together to create a consistent quality and taste. Under the slogan "direct from the tea gardens to the tea pot". Lipton Yellow Label blend is available both in tea bags. which to this day typifies the Lipton Yellow Label brand. until finally he had stores throughout Britain. giving a global share of all tea-based beverages that's nearly three times larger than its nearest rival. then the rest of Scotland. a well as loose packaged tea. refreshing alternatives to soft drinks.made with one of the best technologies available in the world. North America and Australia. ready-to-drink tea and other healthy. Specially plucked from the best tea gardens of Kenya and blended to perfection . It is sold in 150 countries worldwide. Scotland. the preferred format in Western Europe. making a big splash in the global beverages market with tea-based drinks including leaf tea. the preferred format in much of the Middle East and throughout Asia. Lipton is the global number two brand in terms of volume consumed. Lipton Yellow Label is a blend. when Sir Thomas Lipton created the first version of the Yellow pack with a red Lipton shield. In 2008 Lipton Yellow Label became the first tea globally to bear the Rainforest Alliance Certified Seal on pack. first across Glasgow. infusions. Lipton wanted to make tea a popular and approachable drink for everyone. In total non-alcoholic beverages. has been brought to you to provide the finest tea drinking experience.it is truly the gold standard in tea. His enterprise soon flourished and he established a chain of grocers.
.. oolong. SOME FACTS AND FIGURES: 1649 cups of Lipton Tea are enjoyed every second 8245 cups of Lipton Tea are enjoyed every time you blink 1252 cups of Lipton Tea are drunk every time your heart beats 52 billion cups of Lipton Tea are drunk each year 45.5 hours The weight of Lipton tea leaves sold in one year is equal to a herd of 14 077 adult African elephants. SCIENTISTS SAY THAT TEA IS SECOND ONLY TO WATER! A recent publication by a group of key nutrition experts has highlighted that tea is second only to water as the best beverage for hydration in the world. RE-THINKING YOUR DRINKING HABITS The AOX Seal is just one way Lipton is helping people rethink what they drink by reminding them of tea's health and vitality credentials.Live Better Everyday'. whether black. Many people don't realise that black and green tea contain virtually the same amount of antioxidants. and a source of many good things including L-theanine and antioxidants. tea is hydrating – and not dehydrating despite popular belief. highlighting Lipton Tea's antioxidant health properties and underlining the brand's commitment to consumers' vitality and well-being..75 billion Tea Bags are produced by Lipton Tea each year FUN FACTS All the Lipton String & Tag tea bags sold in one year would circle the earth 789 times and the string used would encircle the earth 573 times The total amount of Lipton hot tea consumed in one year can be represented as the amount of water thundering over Niagara Falls for 4. The 'Tea Can Do That' campaign across North America is highlighting the positive effects of teadrinking on body and mind with the message: 'Drink Better Everyday. white. will provide you with antioxidants. every Lipton pack is now stamped with the AOX Seal. in a Lipton ready to drink or leaf tea. Why? It’s naturally zero calories.8 ANTIOXIDANT HEALTH PROPERTIES To confirm this. In addition. green. In fact.
In 2008 the brand launched Lipton Linea in Western Europe.Diet Lemon Iced tea . like the Lipton pyramid range in Europe and North America. LIPTON ICED TEA: Lipton Iced Tea. is an iced tea brand sold by Lipton through two joint ventures with PepsiCo. a green tea variety with a higher level of catechins. in which PepsiCo contributes its bottling facilities and distribution networks and Unilever the brand (Lipton) and recipe. it is marketed in 16 oz (448ml) bottles with the following flavors: Iced tea . delivering faster and better infusion. in many markets known as Lipton Ice Tea. There is a variety of flavors sold throughout the world. and Lipton Milk Tea in East Asia. Other product lines exist as well.9 BRANDS: Lipton's main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Different flavors are available in different markets but they include .Diet Sweet Tea (sweetened with Splenda) Iced tea . In the United States. The operations are 50-50 ventures.Sweetened Iced tea Unsweetened Iced tea with Lemon Iced tea with Raspberry Iced tea with Peach Iced tea with Mango Iced tea . which the company claims can help one lose weight.Extra Sweet Green tea with Honey Green tea with Citrus Green tea with Mint Diet green tea with Citrus Half & Half (Half sweetened ice tea and half lemonade) Diet green tea with Mixed Berry Green tea with Orange and Passion Fruit White tea with Tangerine White tea with Raspberry Sparkling Green Tea LIPTON PYRAMID TEAS: These pyramid shaped bags were pioneered by Lipton and provide more room for infusion of the leaves.
10 White Tea Green Tea Earl Grey tea Gold Tea Red Tea (black tea with Rooibos) Tuscan Lemon .
12 MARKET SEGMENTATION OF LIPTON YELLOW LABEL MARKET SEGMENTATION Distinct needs.3-4. In addition. college and universities All Asian . In Sindh branded tea is consumed by most of the cities.regular tea/ green tea Characteristics. the mindset is such that now no other tea brand can compete because consumers are strongly loyal SEGMENTATION VARIABLES GEOGRAPHIC SEGMENTATION World region Country Cities Density Climate Asia Pakistan All major cities of Pakistan Urban and rural Hot and dry DEMOGRAPHIC SEGMENTATION Age Gender Family size Family life cycle Income Occupation Education Religion Race All age groups Male and Female 1-2. branded tea consumers and unbranded tea consumers. aroma. 90% of the population still prefers the unbranded tea as it gives them chance to see and smell what they buy before paying for it. where as in the rural areas both branded and unbranded are equally popular.5 above Married and Unmarried 12000 above White collar and service workers School.taste. strength Behavior in terms of 4 Ps Segmentation of Consumer market CURRENT STATUES OF SEGMENTATION There are two clear segments of consumers in market. In NWFP and Balochistan. In Punjab the city dwellers as well as majority of rural areas are absolutely brand loyal while unbranded tea is only popular in teashops and hotels.
heavy user Awake and interested Positive and enthusiastic TARGET MARKETING: Targeting a segment means the comp any is making a selection and targeting a certain group of consumers or buyers for its product or services.13 Nationality Pakistani PSYCHOGRAPHIC SEGMENTATION Social Class Lifestyle Personality Middle class and Upper class Fulfilled.Therefore despite the fact that it uses a mass marketing approach it can easily be denoted that this product is catered to a particular segment. BEHAVIORAL SEGMENTATION Occasion Benefits User status Loyalty Status User rate Readiness Stage Attitude towards brand Any occasion Quality. Compulsive. regular user. Today as both men and women consume equal amounts of tea the age group segment selected for Lipton is for all age group for they want to target those people who are young. the product is presented in a different way for instance the teabags are targeted toward the upper high class. cosmopolitan. trendy. authoritarian and Ambitious. believers. Lipton Yellow Label basically has targeted the urban areas and has concentrated on the upper and middle classes. gregarious. or low risk in the segment. Lipton Yellow Label has target different market segments . profitability. economies of scale. while soft packs and jar packs are targeted for middle and middle lower class. first time user Significantly high medium user. every company have its own criteria of selecting a segment such as size. Evaluation of different segments that companies make is most critical before targeting any segment. potentiality of growth. taste. flavor and brand status Ex-user. Even in its marketing approach for Lipton Yellow Label. . experience makers and Strugglers.
bus stops with simple questions and their answers were given few steps forward. T h i s s l o g a n a n d a d v e r t i s e m e n t c a m p a i g n a t t r a c t s t h e yo u n g s t e r s . As can be seen Lipton yellow label have the largest profit margins and market share. Thus the marketers at Lipton have decided to create its own unique image and then strengthen the position in the consumer’s mind. Ther e positioning specifically addressed the local customer by the old melody “chai chahie.14 POSITIONING OF LIPTON YELLOW LABEL Positioning involves designing the product and image that will occupy a distinctive place in the mind of the consumer of the target market. sophisticated and premium tea for the global citizen. .” Then it adopted an another positioning strategy by changing slogan “LIPTON TEACANDO THAT”. Lipton yellow label positioned its product in the mind of the consumer as Active Refreshing Color Aroma Taste Flavor Slogan Quality Health caring Adventurous Alert Vibrant LIPTON YELLOW LABEL was initially positioned as delicious. The advertisement also echoed this them e. L i p t o n p e o p l e placed the bill boards on roads.
1. 2. and fun with a natural goodness and the red color symbolize the energy. ALL GOODNESS OF TEA The all goodness of tea makes Lipton yellow label makes its different from the other Products the point of difference is as follows. Vitality Lipton tea helps to revitalize mind and body. vitality. Brand image 100% natural Accessible Consistent quality Versatility 4. SLOGAN “Lipton Tea can do that “. High Ethical Value Lipton yellow label has high ethical value in the mind of the consumers because it is used since ages so people are well aware of the brand .15 DIFFERENTIATION OF LIPTON YELLOW LABLE It did its differentiation through: LOGO Lipton yellow label is painting the world yellow with a marketing campaign that presents all Lipton stands for brightness. Quality The finest quality of tea Lipton serves to its customers. 3.
BASIC METHOD OF SETTING PRICES Unilever is using the following methods for price setting. It offers a best quality tea to its consumer. Quality is way of life to us. They have major share in the market and they are at top although they are facing competition but due to their name in market they are earning higher profits. So the firms have to consider about the competitive price while selecting new price and schemes. They believe in dedicating in ourselves to achieve ourselves to achive an outstanding quality in all our activities.17 4 P’S OF MARKETING LIPTON TEA PRODUCT The product Lipton label has a brand image in the mind of consumers. Unilever is charging comparatively high prices for Lipton Yellow Label tea because of its well built reputation and quality product. . PRICE TO DISTRIBUTORS The company provides products to the distributors for the prices decided keeping in view the cost. PRICES CHARGED BY DISTRIBUTORS TO RETAILERS Unilever gives margin of certain percentage to distributors so in this way prices to be charged by distributors to retailers are fixed. There are many competitors in the market. The quality of Lipton makes it different. The consistence quality makes the product successful in the market EXCELLENCIES A JOURNEY AND NOT A DESTINATION PRICING Price is simply the cost plus profit of the firm. All distributors are being equally treated. the target revenue and competitors prices. The consistent quality makes the product successful in the market.
18 PRICES CHARGED BY RETAILERS TO ULTIMATE CONSUMERS Company influences prices charged by retailers.They charge different prices to registered and unregistered retailers. So retailers are bound to charge fix price to ultimate consumer. type of product. Prices are set by taking into consideration the size. There prices are high because they believes in zero defects. Prices are set by taking into consideration what customer believes for high price & high quality. PRICE ANALYSIS PACKAGES Tea bags 150 sachets Tea bags 100 sachets Tea bags 50 sachets Flavored 10 sachets Yellow label 100 gram Yellow label 200 gram Yellow label 500 gram Yellow label 1000 gram PRICES IN RS 165 112 60 56 57 116 250 450 . HOW TO SET THE PRICE OF THE PRODUCT Prices are set by taking into consideration into the prices of the competitors.
Following is the detail of distribution channel. Unilever is focusing on all areas through which it is possible to cover different classes’ needs. That’s why Unilever products are available at general stores as well as departmental stores. COVERAGE Unilever aims to create a long term relationship with customers so they belief that this objective will be only fulfill. Company Distributor Retailer Consumer They have distribution offices in different cities from where product is distributed to retailers.19 PLACEMENT Unilever is focusing on the indirect marketing channels where they sell Lipton tea through retailers. . LOCATIONS As on the basis of Lipton tea. They have divided areas into regions and then made distribution channels according to the demand of different regions and in this way their distribution network is working successfully all over the Pakistan. if they have system to handled the markets needs as to reach the product on all areas where its target market exist.
Khanewal & Raheem Yaar Khan.20 SHELF SPACING Lipton tea is being position in different departmental store on the base of taking the specific area among other brands. 25 outlets in various places of Lahore. 3 manufacturing Units in Karachi. Lipton has numerous option to give him substantial about there product. it will remind them of the freshness and purity. 7 distribution channels in Lahore alone. PROMOTION The guideline and objectives will effectively improve the sale sof the new product . The company using different promotion techniques they provide different items such as Caps Tea bags Cups Printed t-shirts Discount Coupons ELECTRONIC MEDIA ADVERTISEMENTS SUCH AS Television is the power full medium because it communicates from both sight and sound. Channels they were used ARY DIGTAL HUMTV Business plus Indus vision Magazines . DISTRIBUTION CHANNELS Head quarter in Karachi It has 650 distribution offices all over Pakistan.Lipton has created the brand personify the positioning of the product is also every mush in the contrast when one here the name.
it absolutely has a greater market share than . Because these are timing people are having a cup of tea. BCG MATRIX STARS Lipton and Tapal have been placed as stars because they not only have higher market shares as compared to the rest of the brands but also because their business growth rate is higher and they believe in continuously investing in their businesses for expansion purposes CASH COW Supreme is a cash cow because business growth wise. The people who belongs the CRM process also takes feedback from their customers so that they can communicate to the upper level via EVS (employee voice system) so that they can deliver the feedback to the upper level regarding customer’s needs and wants. CRM Company manages the image of this product among people through the entire network of CRM that is customer relationship management via its help line RAABTA CONSUMER CARELINE or LEVER RABTA. its progress is pretty slow but as far as the market share is concerned.21 Internet Banners / billboards TV satellite TIMING USED Timing used is the most important when placing advertising so Lipton place their timing in mooring in between 7: am to 9: am and in the first half evening in-between 4:30pm to 6: pm. Whereas the employees related to this product also shows etiquettes while communicating their customers. They show honesty towards their customers so that customer feels satisfaction and loyalty to this product.
here market share and growth level is very low. There is no prosperous future for them and finally have to windup the business as the huge branded tea products available in the market and they do not have huge plants and new technology as compare to branded tea products. QUESTION MARKS Tetley and Vital. thus impacting the marketing strategy and the marketing mix. It is in the maturity phase with its competitor Tapal and Lipton becomes the market leader through its marketing strategies. DOGS An unbranded tea product falls into dog’s category. It is important for them to further diversify their businesses if they want to sustain themselves in the current market scenario. The low market share is an issue at their end and if they do not work on improving it they might end up in the dog category in the near future. This sequence is known as product life cycle and is associated with changes in the marketing situation. maturity and decline. its market share is 50 percent. Supreme is also the product of Unilever but it is in growth level and its market share is less than Lipton. both have the worst cash nightmares because they have the least market share with demand still existing which could be met. PRODUCT LIFE CYCLE A new product progresses through a sequence of stages from introduction to growth. Lipton lies in the maturity stage.22 Tetley but at the same time its share is not comparable to that of Lipton. and it has achieved great recognization due to Unilever and thus emerged as a market leader. In a short span of time Lipton has achieved welcoming response from the target market. The product revenue and profits can be plotted as a function of the life-cycle stages as Shown in the graph below: . Therefore the option for them to invest further in the business is also limited hence limiting their growth opportunities.
23 Sale INTRO GROWTH MATURITYTY DECLINE Time TETLEY SUPREME TAPAL LIPTON .
24 MICROENVIRONMENT AND MACROENVIRONMENT .
quick response to customer queries. which was established in 1948. coordinates to achieve this target through setting up objectives and targets and attaining them. more importantly. Top Management set the mission and objectives. The people at work. Suppliers rarely rely simply on competitive pricing in order to secure steady clients. and timely . Unilever strategy has been quite amazing. their efforts go beyond just providing the products. providing consumers with the required health and nutrition information that can help them make better informed choices to lead a healthier lifestyle. need satisfaction. It is an international company. which is customers. Along with price.25 MICROENVIRONMENT CHART OF MICRO ENVIROMENT COMPANY The Company Unilever is the largest FMCG Company in Pakistan. they also tend to strive for quality. SUPPLIER The main strategies of Lipton suppliers are the creation of volume discounts for vendors who place orders for large quantities of a specific good or service. People at Unilever work together to attain a single target. whereas the marketing managers set strategies according to all these decisions and missions. with head offices in most of the countries of the world. an attractive range of goods and services.
Customers don’t feel like switching to any other brands and are blind folded by the standard and quality produced. These have strongly helped the company in promoting its products. The physical distribution of the firm is quite balanced and covers a very wide area. and China Available in over 110 countries. Financial intermediaries of the firm are quite strong and depict a very firm relation with the company. The Unilever Lipton cardamom tea targets very niche market. at a minimum. parts of Asia and Australasia (Australia and New Zealand). Our suppliers are expected. Tanzania is the main areas of Lipton teas are a blend selected from many different plantations around the world. to conduct business in an ethical manner and comply with all applicable laws and regulations. MARKETING INTERMEDIARIES Unilever marketing intermediaries have played an effective role in distributing its products. There’s a huge wide range of products produced that are being used by consumers on regular basis. North America and the Middle East. Unilever products are widely available in nearly all retail stores. COMPETITORS INTERNAL COMPETITORS Brook bond supreme EXTERNAL COMPETITORS Tapal daane dar Alokozay Vital Teley . from well-known producing countries like India.26 delivery of the products once the order is placed. that has helped in binding strong relations with its customers. Sri Lanka. CUSTOMERS The customers have always been quite contended with the products. the concept is new and very few people are aware of it. Lipton is particularly popular in Europe. Singapore. The company has maintained its standard though out. Kenya. Kenya.
0% lipton. 8% . 0% vitaal. 44% tapal. 0% alokozay.27 WHICH BRAND DO YOU USUALLY BUY Brooke brand 11 44% tapal 2 8% Lipton 12 48% tetlen 0 0% vital 0 0% alokoza 0 0% CHART OF LIPTON LABEL TEA tetlen. 48% brookebrand.
Investors. etc. customers suppliers Organization: Employees. Students. financial institutions. direct or indirect association including the media. government bodies.28 PUBLICS The groups of people that have an actual or possible interest in or impact on the company's efforts to achieve its goals. Lipton with some common characteristic with which an organization needs to communicate. . Lipton promise an ethical approach to tea sourcing and growth in their public relations. Pressure groups.
TECHNOLOGICAL FORCES . it suffers greatly. Pakistan’s economy mainly encompasses textiles. It does its plantation in Kenya and Tanzania. Generally people consume 2-4 cups of tea per day. chemicals. NATURAL FACTOR Lipton has engaged it’s self in providing better quality. occupation etc. The demographic includes age. food processing. Security concerns stemming from the nation's role in the War on Terror have created great instability. it does not target children.29 MACRO ENVIRONMENT DEMOGRAPHIC FACTOR Pakistan is a country. The natural environment can have an effect on its production like if natural disasters such as earthquake or flood take place. Lipton is designed for upper middle. gender. ECONOMIC FORCES Economic conditions of an environment have a direct impact on the development of any industry. It results in decline in sale and sometime the inflation even lead to decline in production as well. race. upper lower and upper middle lower. It has been in touch with natural environment for a longer time. So demographically in a country like Pakistan where tea intake is high. here tea intake is very high as compared to other countries of the world. It is very keen in natural environment and for the health of its consumers that is why the process which Lipton follows in the process of tea in a very conscious manner. any production or development in the line/extension would help the company to grow. INFLATION Inflation remains the biggest threat to the economy. when it happens company has to bear lots of losses. location. The potential market for the Lipton is aged 10 -60. agriculture and other industries. The recent economic recession in the world has had an impact on Pakistan’s economy as well. It will dramatically impact its tea plantation and the productions will suffer a lot.
As we have seen over time technological advances in the world but we have also seen that Lipton is no where behind anyone. They have not only used advanced technology for production process but they have also implemented proper quality control. CULTURAL FORCES Culture is one the important aspects which companies need to look at. As we know that Lipton is multinational brand but still it has been successful in meeting the political demands of different countries and has always followed prescribed rules and regulations. Political forces play a major role because politics comprises of people who have authority to allocate resources including capital. . Lipton also works in accordance with political scenarios of host countries. In nut and shell it can be said that technological advancement has proven so far as opportunity for Lipton instead of threat.30 As the old adage states "NECESSITY IS THE MOTHER OF INVENTION" i. Different people in different countries have different cultures. as it has been rightly said is "converging" and "accelerating" which may allude to the fact that the world is growing shorter (shrinking) day by day. Globalization has transformed the values of people and companies to need to look at them properly. the decision to use it proficiently in proper perspective is ones’ own decision and choice. However. land etc. They always keep an eye on changing political conditions and their effect on environment to cope with all the problems that it can bring. electronic tea makers for commercial and non-commercial uses. the technological development is similar to a double edged sword which on one side can kill someone and on the other side can lead to one’s own protection. World.e. Lipton and its management claims that they are one of the most technologically advance tea producers in the world and their statement is supported by new products such as tea bags. POLITICAL FORCES Political forces are one of the most important factors that affect the activities of any business. all business operate in a particular country and each country has its own rules and regulations and to effectively operate in that country company have to adhere to those policies. Companies and brands are greatly affected by political uncertainties and changing political scenarios. Needless to say that like any other aspect of development. The advancements are also accompanied by the reduction in the time. They try to minimize the effect of political uncertainties over their business. effort and cost for production of any material. Companies need to make strategies bearing local cultures in the mind and taking decisions which do not effect the local culture adversely. necessities tend to spawn inventions and each invention is annexed with the need of betterment and transmogrification.
Lipton through its quality. SWOT ANALYSIS Strengths Enjoying economies of scale Good will in the markets Strong financial position Have strong distribution channels in Pakistan Abundant financial resources Well known brand names Well brand images Weaknesses Huge inventory stocks of raw materials Internal operating problems Opportunities Rapid market growth Changing customer needs and wants as lifestyle change To create relations with society on the social marketing bases Threats Low profit margins Smuggled brands of china New competition in the market Increase in taxes increase in prices due to fuel prices . CONSUMER BUYING BEHAVIOR Lipton is a multinational brand of beverages that is being consumed throughout the world. aroma and taste has made its unique brand image which is the major reason why consumers show loyalty towards their product. Lipton through its effective advertising as perfect blended tea for family and gatherings has made consumers think about Lipton when it comes to refreshment. Lipton realizes the different cultures and then goes on to make strategies in line with those cultures. Lipton signifies that customers are the most important stakeholders. People in South Asian countries are more prone to tea and people in western countries are more prone to coffee. Satisfying needs of different customers with different products such as Lipton tea in different flavors is also a step to cater the cultural needs of people. It has been observed that consumers are very loyal to this brand suggesting that they portray habitual buying behavior when it comes to tea.31 Lipton also realizes the importance of prevailing cultures in countries where it operates.
In December 1997. what quality.32 Committed employees COMPETITIVE ANALYSIS Competitors are the major threat face by every company in a market. Tapal’s market share has increased.Tapal has engaged in extensive promotion of its products. Tapal Danedar and Lipton Yellow Label are primary competitive of each other . Its product range has achieved great popularity in Pakistan. The market share has risen as Tapal has won customers due to its strong taste and aroma backed by innovative products . Tapal has shown an increase of about 29%in sale revenue. The Main Key Competitor of the Lipton is Tapal Supreme . at what prices. other brands are also gaining acceptance in the market. During the year 2009. Another factor driving sales is relatively less prices. Products such as Tapal Danedar and family mixture are the top selling brands of Tapal. Recently Tapal has launched ice tea which has been not as successful in the market. The primary competitive alternative of Lipton Yellow Label is Tapal Danedar Tea. making it one of the first few companies in the world to achieve this milestone.They are the competitive because they target the same consumers and are for same type of people there Target market is same. Tapal Tea became the first Pakistani Tea Company to earn the ISO. Again in December 2000. They have to keep into consideration that what other competitors is offering. Tapal green tea has shown a rising popularity. what benefits etc. It has introduced different flavors in green tea range. Tapal tea is one of the major competitors for Lipton in the tea industry. Tapal acquired the ISO-9001: 2000 certification. The company has enjoyed a phenomenal growth particularly during the last decade to expand its base in the branded market. Companies need to keep a careful check on its competitors.9001 certification. The increase in market share is evident from its increase in sales. This has been primarily Tapal has introduced a wide product range to meet the requirement of different taste and aroma of Pakistani culture. which for long were dominated by multinational competitors. a symbol of the highest international quality standards. They also have slightly difference in there prices.
COMPETITIVE ANALYSIS CHART 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Lipton Tapal Other Tea CONCLUSION Lipton yellow label has emerged as a market leader which is due to the marketing strategies it has adopted. It follows push strategy by selling its product to wholesaler which is then transferred to retailers. It uses various strategies for marketing its product. it is influencing its customers and have made a strong relationship with them. Lipton has set a good target market. . It strategies has enabled it for a prosperous future ahead. It uses multi strategies for selling its products.33 There are also some other players in the market like Vital Tetley Alkozoy tea But Great competitions always remain between them. It has place the product in a good manner and has set affordable price for it. It uses personal selling and telemarketing as its direct marketing strategies. It also sells Lipton tea directly to certain retailers. Overall.
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