MARKETING RESEARCH PROJECT ON FAILURE PRODUCT TAPAL ICE TEA

Submitted to: SIR. JAVAID ZAFER CH. Submitted by: SHAHID MEHMOOD EMBA Session 2010 AUG 09, 2010 PRESTON UNIVERSITY ISLAMABAD

Tapal Ice Tea Sachet 25 Gms With Peach and Lemon & Lime Flavors

Tapal Ice Tea Can 320 ML With Peach and Lemon & Lime Flavors

Tapal¶s Philosophy is: To act locally, but think globally

INTRODUCTION OF PRODUCT
Brand name is ³ Tapal Ice Tea´ which is produced by Tapal Tea (Private) limited. Plot 40, sec5tor 15, Industrial Area Karachi 74900 Pakistan.

TARGET MARKET The target market of ³Ice Tea´ includes all segments of the society. Demographically the target market is very variable. From the income point of view our target market is as follow
1)

Upper Class

2) Middle Class 3) Lower Class Company set the prices of ³³Ice Tea´ according to the income level of above-mentioned three classes. So the product is found in different sizes and different prices.

COMPANY¶S OBJECTIVES For launching this product Tapal Tea has some objectives and company shall launch product on the basis of following objectives. a) Goodwill of Company b) Good Quality c) Customer¶s Satisfaction

MAIN COMPETITORS
Ice tea is present in very competitive environment. There are three types of competitors, which are as follows: i) Branch Competitors in liquid a) Pepsi b) Coca Cola c) Others ii) Brand Competitors in Sachet a) Tang General Competition other etc

MARKETING MIX
1. Product The ice tea product is with it¶s taste having International health standard. It is found in different flavor as well as Packing Size 25 gms Sachet 320 ml can Features: Good and Attractive Taste Easily Available in the Market

2. Price
The prices of Ice Tea vary according to the size of packing which are given as: S. No. i) ii) Packing Sachet Can Weight 25 gms 320 ml Retail Price 6.00 30.00

3. Position Regarding Price and Quality
Regarding quality our position shall be strong because of a) Good Quality b) Easy Availability Tapal Tea is trying completely fulfill the want of the consumer with improving taste and quality in his product.

4. Distribution
The distribution channels are light and heavy vehicles. The company distribution channel includes: i) Agents ii) Retailers iii) Whole-sellers i) Agents: Company has its agents for the ³Tapal Ice Tea´ and for other products in everywhere. They sold the company¶s product for the sake of their commission. ii) Retailers: Shopkeepers are called retailers. They bought the company product from agent/whole sellers and sell them. iii) Whole-sellers The distributors of the company are called whole-seller. Company has its distributors in every city. They bought the ³Ice Tea´ in bulk quantity from the company and sell to the retailers, and retailers to the company.

5.

Promotion
It includes the following elements i) Advertising

ii) Personal Selling iii) Sales Promotion iv) Public Relation

COMPANY IS USING FOLLOWING ADVERTISING ELEMENTS
* Print Media Companies are advertising by magazines, newspapers, banners for the sake of Sale * Electronic Media The electronic media as well as others. It is playing ads on T.V, Radio etc. * Posters Advertising through posters, sign boards among the roads which is a good way of advertising a product. * Banners The companies are also using the banners as its sales promotional activity. * Sign Boards The companies are also using the sign boards to promote the sales. It is the best method to introduce the people with the product and people are given more response to sign boards.

Competitors Advertisement
The competitors of the ³Ice Tea´ are also using the some tricks to increase their sale. Initially, the company relied heavily upon print media but this trend is changing now because of the in customer¶s life style. Right now, company is doing intensive advertising through networks. In their advertisement they hire the services of renowned celebrities, As for as the Ice Tea is concened marketing dapartment could not pay proper attention towards the permotion of Ice tea, company could not use any of the above advertisig elements to creat the hype which is needed to make the Ice Tea succesfull in pakistan .

STATEMENT OF THE PROBLEM
³Ice Tea´ is the product launched by Tapal Tea (Pvt.) Ltd. It has not good image in the mind of the customers due to its taste. its prices are high as compared to other brands of drink available in Pakistan. So the sale of ³Ice Tea´ has reduced. In our research we would try to find out the different ways through which its sale could be enhanced and growth can be achieved.

Hypothesis
Following would be hypothesis of our research. 1) Sales of Ice Tea have reduced because of high prices 2) Sales of Ice Tea have reduced because of its Taste.

Objectives and Importance of Study
1. This research would serve as a guide to the new researchers conducting research on soft drinks (Coke, Pepsi etc). 2. The research would be useful to Tapal Tae (Pvt.) Ltd. 3. This research would also help to Tapal Tae (Pvt.) Ltd.., to bring certain changes in its product and services.

Limitations
1. This research does not complete the all aspects because of small samples, limited time and expenditures. 2. Respondents were the users of ³Carbonated drinks´.

Sampling Design
A sample is a subset of population. The population in the entire collection from which a sample is chosen. It is a more advantageous to conduct research on the basis of a population because it saves time and money. We adopted the techniques of convenient sampling.We tried to choose a representative sample. The geographical limits of our population were Jhelum.

Sample Size
A very small sample gives non-representative results and very large sample requires a lot of time and money. So the sample size of our research was ³55´ which is very suitable.

Reason for Sampling
1. The consumers are spread in all over Pakistan. So it was not possible for us to reach all of them. 2. We had a limited fund to conduct the research therefore to collect information from whole population is very expensive. So we selected the sampling.

Research Instrument
Following research instruments were used during the research.

1. Interview
The interviews of Regional Manager and Zonal Manager of Tapal Tea (Pvt.) Ltd were conducted in order to get the accurate information relating to ³Ice Teal´. These interviews were very successful in collecting the information related to research study. It is a main source on which basic, the action I being taken in order to solve the actual problem. 2. Primary Sources The source of the primary data were used in our research were the users of the Soft drink. 3. Secondary Source Since the ³Tapal Tea (Pvt.) Ltd´ is a well established and good reputed company, but they gave simply some printed material, which could be used while conducting research study.

Questionnaire Construction
The instrument that we used for collecting information was the ³QUESTIONNAIRE´. A questionnaire is a formulized schedule for collecting data from respondents. The function of questionnaire is measurement. We look a great care to design a questionnaire, so that questions would measure what they were supposed to measure. There are three types of the questions we used in our questionnaire. a) Open-ended questions b) Multiple Choice questions c) Dichotomous Questions

1. Areas Where Research Was Conducted The following areas of Jhelum covered in the survey. Area Respondents Percentage 1) Households 35 63.64% 2) Market 20 34.36% Total 55 100% We have conducted the research in above areas. We found better response in Households. It is due to the personal involvement of the housewives in the preparation and selection of Soft drinks Or drinks.

2. People Reference towards Particular Brand Response Respondent Yes 12 No 43 Total 55 Percentage 21.82% 78.18% 100%

3. Which Brand is preferred by People Brand Name Responses Percentage Pepsi 22 40.0% Coca cola 19 34.55% Ice Tea 06 10.9% Others 08 14.55 Total 55 100% The above response shows that mostly people preferred the brand ³Pepsi and Coke´. This is due to the availability of the product and company image as indicated by the responses to Question No.3.

4. Have the Respondent Ever Use Ice Tea Response Yes No Total Respondent 32 23 55 Percentage 58.18% 41.82% 100%

The above response shows that majority of the people have ever tried the ³Ice Tea.

5. Wish to Use ³Ice Tea´ Again Response Yes No Total Respondent 11 21 32 Percentage 34.37% 65.63% 100%

The above response shows that although majority of the people have ever tried the ³Ice Tea´ But they don¶t want to use it again.

6. How did you Got Aware of ³Ice Tea´ Response Respondent Television 19 Newspaper 0 Billboards 0 Others source 13 Total 32 Percentage 59.37% 0% 0% 40.63% 100%

The above response shows that majority of the people have got aware of ³Ice Tea´ from other source and from Television.

7. Where the Product Quality is Graded by the People

Response Excellent Good Satisfactory Not Satisfied Total

Respondent 4 7 9 12 32

Percentage 12.50% 21.87% 28.13% 37.50% 100%

As indicated by the response to above question. The quality of the product is considered not Satisfied by majority of people.

8. How did People Rate the Brand from 1-3 Response Pepsi Coca cola Others Total Respondent 26 21 08 55 Percentage 47.27% 38.18% 14.55 100%

The above response shows that majority of people rate the Pepsi and coke as No. 1 brand.

9. Availability of Product According to Respondents

Response Yes No Total

Respondent 16 39 55

Percentage 29.10% 70.90% 100%

According to respondents the product is not easily available

10.Which Flavored of Ice Tea is preferred by People

Response Peach Lemon &lime Total

Respondent 21 11 32

Percentage 65.63% 34.37% 100%

The above responses show that majority of the people preferred Peach flavored.

11- Reason for Preference of Ice Tea

42% people did not respond to this question. While 58% responded to this question. According to their responses 32% due to reasonable price and 68% people preferred due to its Flavored.

12.Suggestions for Improvement of ³Ice Tea´ by Respondents

Only 8% people did not response to this question. While 22% suggested that the company should improve the packaging of the product. And remaining 31% suggested that company should reduce the prices of the product. Remaining responses suggested that improvement in other areas like advertising, taste, and quality.

13.

Age Effect on Response Respondent 13 26 16 55 Percentage 23.63% 47.27% 29.10% 100%

Response Under 19 19 to 35 36 & above Total

These responses show that mostly Ice tea is used by elder people as compared to teenagers.

14.

Gender Difference on Response Respondent 21 34 55 Percentage 38.18% 61.82% 100%

Response Male Female Total

This response indicates that gender difference on the selection and preference of soft drink

15.

Marital Status Effect on Response Respondent 37 18 55 Percentage 61.11% 38.88% 100%

Response Family Single Total

This answer indicates that families are more involved in the selection

FINDINGS / CONCLUSION
Our hypothesis was to check whether high price has affected the sale of Ice Tea. After seeing the total response of the questionnaire. It is concluded that the high-income levels prefer Coca cola, Pepsi and Energy Drinks and low income levels prefer to use Tang in Sachet consumer market which is available in different sizes in market. Tapal Tea Company should lunched heavy campaign for consumer awareness used Print Media, Electronic Media, Posters, Banners and Sign Boards to promote the sales of ³Ice Tea´. It is the best method to introduce the people with the product and people are given more response. Hence our hypothesis that the sale will be increased if the prices are reduced is true.

RECOMMENDATIONS 1. Company should reduce the prices for the

improvement of sale in lower class people. 2. Company should launch the product with scheme and consumer promotion. 3. Company should offer incentives to distributor and sale staff. 4. Company should strengthen the distribution. 5. Company should do more personal selling as well as advertising. 6. Company should hire the highly qualified marketers for the sake of increment in sale.

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