Market Visit Report

2012

GAUHAR MUSHTAQ BHATTI

PRINCIPLES OF MARKETING

BBA 4

MARKET VISIT REPORT

Shop Number 1

Shop Name Metro

Shop Type IMT

Shop Location University Road, Karachi

Product Name Lipton Yellow Label Tea

Is it available? Yes

Product placement? A complete aisle dedicated to tea products. Separate Stall of Lipton at the aisle’s entrance which was opposite Coffee brands like Nescafe. Another area where Lipton tea was placed was near the check out counters. Similarly at the other end of the tea aisle, Tapal’s stall was kept. Within the aisle where all tea variety was available, 1/3rd was occupied by Lipton (black tea, green tea etc). Lipton Yellow Label was placed at and below eye level. Biscuits were placed exactly opposite the tea aisle.

Stock Keeping Units I kg, 450 g and 379 g packs. Teabags available of 100, 300 and 600 pieces per pack.

Competitors Tapal danedar, Tapal family mixture, Tetley, Alokozay. Tapal also had a separate stall like Lipton. It was opposite juices and other similar beverages.

Customer Type Mostly housewives.

Most Running Brand Both Lipton and Tapal Danedar

Why? Lipton because of its promotional activities. Had a separate café outside Metro. Lipton teabags and 1 kg bags are bought in huge numbers by housewives and Office consumption. Danedar because of its aroma and strong taste.

Since when? Since Metro became operational.

Activities at point of purchase? Bill boards of Lipton and Tapal at POP. Payments for such promotional activities were done by companies themselves.

Activities at point of sale? No

Any other Activities going on? Yes, Mon o Salwa had a stall where it distributed free nuggets etc to people for tasting. Ponds had a separate stall where women were given free cream samples to try. Surf Excel had posters and boards at the entrance, exit and banners hanging after every 4 to 5 aisles.

Distribution Process Company trucks deliver goods. No third party involved. Frequency of trucks bringing goods depends on orders.

LIPTON PRICES

379 g 450 g 1 kg 100 pieces (Tea bags)

300 pieces 600 pieces

Rs. 243 Rs. 323 Rs. 620 Rs.254.25 Rs. 640

Rs. 1208

TAPAL DANEDAR PRICES

2x200 g 4x95 g

Rs.235 Rs. 237

ALOKOZAY

100 teabags 25 tea bags

Rs.210 Rs. 55

Shop Number 2

Shop Name Naheed Supermarket

Shop Type LMT

Shop Location Siraj ud Daulah Road, Bahadurabad



Product placement? Separate stall of LIPTON only at entrance. Opposite it are racks of artificial sugar. Tea kept on the basement floor. Lipton, Tapal kept at eye level on the same shelf. Tetley, Alokozay kept way below eye level on a lower shelf. Opposite the tea aisle are powdered milk like Everyday etc.

Stock Keeping Units 250g, 450g I kg packs. Teabags of Lipton 100 pieces per bag and 50 pieces per bag. Green tea 25 teabags per pack.

Competitors Tapal danedar, Tapal family mixture,Brooke Bond Supreme(Only a few packets). Tetley and Alokozay.

Customer Type Housewives main type.

Most Running Brand Tapal leading.

Why? People admire its taste and colour.

Since when? Since quite some years. More than 5

Activities at point of purchase? No

Activities at point of sale? Yes. Lipton had a small vending machine where Lipton tea was available for Rs. 20.

Any other activities going on? No

Distribution Process Company Trucks deliver tea. Lipton on an average 25 to 30 cartons per week are ordered by Naheed.

LIPTON PRICES

1 kg 450 g 250 g 100 pieces 50 pieces

Rs. 640 Rs.310 Rs. 150 Rs.280 Rs. 140

TAPAL DANEDAR PRICES

950 g 200 g 100 g

Rs. 560 Rs.125 Rs. 70

Shop Number 3

Shop Name Al Amin General Stores

Shop Type HFS A

Shop Location Gulistan-e-jauhar roundabout



Product placement? Central shelf behind the counter

Stock Keeping Units 950g, 475g, 190g, 95g packs. Teabags of 100, 50 and 25 pieces per pack.

Competitors Brooke Bond Supreme, Tapal danedar and Mixture and Tetley.

Customer Type All kinds of customers.

Most Running Brand Lipton.

Why? People prefer it because of its taste and affordable price. Its teabags are very popular and demand of these is highest.

Since when? Since past two to three years.



Any other activities? No

Distribution Process Distributor comes and delivers it. Middle man involved instead of company trucks.

LIPTON PRICES

95 g 190 g 475 g 950 g 100 pieces 50 pieces 25 pieces

Rs.70 Rs.125 Rs. 310 Rs.620 Rs.260 Rs. 130 Rs.65

BROOKE BOND SUPREME

95 g 190 g 475 g 950 g

Rs. 57 Rs. 115 Rs. 280 Rs.560

TAPAL DANEDAR

950 g 200 g 100 g

Rs. 530 Rs. 115 Rs.60

Shop Number 4

Shop Name Taimuriya Stores

Shop Type HFS A

Shop Location Near maskan roundabout.



Product placement? Tea shelf near the entrance. A whole separate aisle for tea. Lipton above and at eye level. Other brands below eye level, at the lower shelfs.

Stock Keeping Units 1 kg, 950g, 475g, 190g, 95g packs. Teabags of 100, 50 and 25 pieces per pack.

Competitors Brooke Bond Supreme, Tapal danedar and Mixture and Tetley and Alokozay.

Customer Type Mostly housewives and teenagers.

Most Running Brand Lipton

Why? No particular reason.Perhaps because of its strategic placement which catches customer’s eyes.

Since when? Since many months. About 8 to 10

Activities at point of purchase? Board of Lipton near the aisle.



Distribution Process Delivery van comes after every 15 days. They are responsible for distributing.

LIPTON PRICES

95 g 190 g 475 g 950 g 1 kg 100 pieces 50 pieces 25 pieces

Rs.70 Rs.125 Rs. 310 Rs.600 Rs. 620 Rs.260 Rs. 130 Rs.65

TAPAL FAMILY MIXTURE

200 g 100 g

Rs.114 Rs.58

Shop Number 5

Shop Name Eastern Medicos.

Shop Type HFS A

Shop Location Next to Toyota Showroom at Rashid Minhas Road.



Product placement? Tea kept at the last aisle of the shop. Lipton, Tapal kept below eye level whereas brands like Tetley, Savera, Gold Café Green, A1 Karak at eye and above eye level.

Stock Keeping Units 1 kg, 450 g, 190 g, teabags 100 and 50 pieces per pack.

Competitors Tapal, Tetley, Savera, Gold Café Green.

Customer Type All kinds of people. Women, Men, Teenagers etc.


Why? No particular reason. Probably because of flavor and fragrance.

Since when? Quite some time. Past 2 to 3 years.

Activities at point of purchase? Board of Lipton.

Activities at point of sale? Small board of Tapal and Lipton at the counter.


Distribution Process Distributer comes and gives products to the store.

LIPTON PRICES

1 kg 450 g 190 g 100 pieces 50 pieces

Rs. 620 Rs. 310 Rs.125 Rs.260 Rs. 130

TETLEY

190 g

Rs.115

Shop Number 6

Shop Name As-salam Medicos.

Shop Type HFS A

Shop Location Near Johar Roundabout



Product placement? Tea is kept in the central aisle of the shop. Lipton Tea has a separate shelf. Supreme, Danedar, Tetley kept together in a shelf next to Lipton’s. Biscuits kept opposite to the aisles with tea products. All variety are kept at and below eye level.

Stock Keeping Units 1 kg, 450 g, 200 g. Teabags 100, 50 and 40 pieces per pack.

Competitors Tapal, Tetley, Danedar, Supreme.

Customer Type All kinds of people. Women, Men, etc.


Why? No particular reason. Probably because of flavor and fragrance.

Since when? Quite some time. Past many years.


Activities at point of sale? Small board of Tapal and Lipton at the entrance.


Distribution Process Company trucks deliver to the shop

LIPTON PRICES

TAPAL DANEDAR

950 g 200 g 100 g

Rs. 530 Rs. 115 Rs.60

1 kg 450 g 200 g 100 pieces 40 pieces 50 pieces

Rs. 620 Rs. 310 Rs.135 Rs.260 Rs.150 (Special Tinned packs)

Rs. 130

Shop Number 7

Shop Name Boatsons Medical Store.

Shop Type HFS B

Shop Location Bahadurabad Chorangi



Product placement? In the lowest shelf of the corner most aisle, not very clearly visible upon entering. All tea variety kept under the eye level.

Stock Keeping Units 190 g , 380 g, 450 g, 475 g and teabags 100 pieces per packet.

Competitors Tapal and Tetley.

Customer Type Mostly men.

Most Running Brand Tapal Danedar (although Lipton spends relatively more for promotion and advertisement)

Why? Customers feel danedar stronger tea than Lipton. They also prefer aroma of danedar as compared to Lipton’s.

Since when? Many months.




Distribution Process Company does not send its trucks, however distributors come and deliver in a delivery van.

LIPTON PRICES

190 g 380 g 450 g 475 g 100 teabags

Rs.135 Rs.250 Rs.300 Rs. 310 Rs.260

TAPAL DANEDAR

950 g 200 g 100 g

Rs. 530 Rs. 115 Rs.60

Shop Number 8

Shop Name Razaq Medical and General Store

Shop Type HFS B

Shop Location Near TV Station Bahadurabad



Product placement? At the rack to the immediate left of the shop’s entrance. All tea variety at and above eye level.

Stock Keeping Units 95 g, 450 g, 1 kg packs. Teabags in very small quantity. About 5 to 6 packets of 100 pieces per pack.

Competitors Brooke Bond Supreme, Tapal Danedar, Tetley.

Customer Type All types of customers.

Most Running Brand Tapal Family mixture most popular.

Why? Women said they preferred it because it has a stronger taste and flavor and good to serve guests.

Since when? Over past year.


Activities at point of sale? Board of Danedar at the shop’s entrance.


Distribution Process Delivery van comes on an average fifteen to twenty days interval

LIPTON PRICES

95 g 450 g 1 kg 100 teabags

Rs. 70 Rs.300 Rs.600 Rs.260

TAPAL FAMILY MIXTURE

200 g 100 g

Rs.114 Rs.58

Shop Number 9

Shop Name Bismillah Medicos

Shop Type HFS B

Shop Location Near TV Station Bahadurabad



Product placement? At the right aisle immediately at entrance.

Stock Keeping Units 95 g, 190 g, 450 g, 475 g.

Competitors Tapal Danedar, Family Mixture, Tetley

Customer Type Mostly housewives.

Most Running Brand Tapal Family Mixture most popular

Why? Women gave its strong color and taste as a reason for its popularity. Also its relatively cheap price than lipton accounts for its popularity. Another reason for Tapal’s popularity the shopkeeper gave was that Tapal was available in satchet packs.

Since when? Quite a few years.



Any other activities? Tetley was giving a free colgate tube with its 425 g packet.

Distribution Process Delivery van comes to the shops based on stock levels and demand.

LIPTON PRICES

95 g 190 g 450 g 450 g

Rs.70 Rs.125 Rs. 300 Rs. 300

TAPAL DANEDAR

950 g 400 g 200 g 100 g

Rs. 530 Rs. 225 Rs. 115 Rs.60

Shop Number 10

Shop Name Shah-e- Madina General Store

Shop Type HFS C

Shop Location KDA Overseas Bungalows Gulistan-e-Jauhar Block 16-A



Product placement? On the shelf which is on the right side of the checkout counter.

Stock Keeping Units 200 g, 100 g, 450 g jar, teabags of 100 and 50 pieces per pack.

Competitors Tapal Danedar, Tetley, Brooke Bond Supreme.

Customer Type Mostly men.

Most Running Brand Tapal danedar most popular. Then Brooke Bond Supreme.

Why? Both because of their cheap prices and flavor and strong color.

Since when? Since quite a few months.




Distribution Process Delivery van comes and distribution is done through middle men instead of company sending its own trucks.

LIPTON PRICES

200 g 100 g 450 g 100 pieces 50 pieces

Rs.125 Rs.65 Rs. 300 Rs.260 Rs. 130

BROOKE BOND SUPREME

200 g 100 g

Rs. 115 Rs.60

Shop Number 11

Shop Name Makkah Madina General Store

Shop Type HFS C

Shop Location KDA Overseas Bungalows Gulistan-e-Jauhar Block 16-A



Product placement? At the center shelf. At eye level of customers.

Stock Keeping Units 100 g, 200 g, 500 g, 1 kg teabags of 100 and 50 pieces per pack

Competitors Tapal Danedar, Tetley

Customer Type All kinds of customers.

Most Running Brand Tapal and Lipton equal popularity.

Why? Shopkeeper thought people preferred Lipton because of its flavour and Danedar because of its cheap prices as compared to Lipton.

Since when? Past many years. More than five.




Distribution Process Mostly delivery vans although sometimes company trucks also deliver tea.

LIPTON PRICES

200 g 100 g 500 g 1 kg 100 pieces 50 pieces

Rs.125 Rs.65 Rs. 295 Rs.590 Rs.260 Rs. 130

DANEDAR PRICES

Satchets 100 g 200 g 400 g 1 kg

Rs.5 Rs.60 Rs.115 Rs.225 Rs.540

Shop Number 12

Shop Name Hameed General Store

Shop Type HFS C

Shop Location Gulshan-e- Iqbal Block 7

Product Name Lipton Yellow Label tea


Product placement? At the back of the shop. Not visible clearly to customers from the shopkeeper counter.

Stock Keeping Units 95 g, 200 g, 475 g, I kg packs. No teabags

Competitors Tapal Danedar and Brooke Bond Supreme.

Customer Type All types of customers.

Most Running Brand Tapal Danedar preferred by people.

Why? They like its strong colour and affordable price.

Since when? About 5 to 6 months.




Distribution Process Distributors come and deliver Tea on a monthly basis. Stock inventory levels are usually kept high so that surge in demand can be catered to.

LIPTON PRICES

95 g 200 g 475 g 1 kg

Rs. 65 Rs.125 Rs. 300 Rs. 590

BROOKE BOND SUPREME

100 g 200 g 400 g 450 g 1 kg

Rs. 50 Rs.115 Rs. 235 Rs. 270 Rs. 530

TAPAL DANEDAR

Satchets 100 g 200 g 400 g 1 kg

Rs.5 Rs.60 Rs.115 Rs.225 Rs.540

WRITE UP

WRITE UP

The product I chose for my market visit report is Lipton yellow label tea. Tea is one of the most favorite

beverages of Pakistani people. It is a product which is liked by people from almost all walks of life .It is

consumed at breakfast, during lunch breaks and an ideal beverage to serve guests.

For my market visit report I paid a visit to a total of 12 outlets. Out of those, one was an IMT

(International Modern Trade), one was an LMT (Local Modern Trade), while the remaining ten were a

combination of four HFS (High Frequency Store) A’s, three HFS B’s and three HFS C’s.

The IMT that I visited was METRO, which is adjacent to Safari Park, Gulshan-e-Iqbal. It had the largest

size as compared to the HFS retail outlets and the LMT. And the reason for that is that it serves as both;

a wholesale and a retail store with a wide range of customers including shopkeepers, retailers, families

etc. As far as tea was concerned there was a whole aisle comprising of tea of various brands like Tapal,

Lipton, Alokozay etc. as opposed to HFS outlets which did not have separate aisles for tea alone but

placed tea along with other commodities like milk, biscuits, and other grocery items. Apart from this,

within the same brand there were a number of different tea varieties to choose from. Black tea, Green

tea, pink tea and a few other alternatives were kept in the shelves. This was something not observed in

the HFS stores which had only black tea or at most green tea available. Another thing that struck me was

that in the IMT, the aisle for tea was opposite to those of biscuits and cookies. This placement was very

strategic for complementary goods of tea. Apart from tea available at the aisles, there were two

separate stalls of both, Lipton and Tapal each located at opposite ends of the aisle and products were

clearly visible at eye level for customers. They both were the only brands which even had billboards

within the food items section. According to the staff there, Lipton and Tapal paid for these promotional

activities. At Metro I even saw a separate café of Lipton where items like tea, biscuits, snacks etc were

being sold at affordable prices. Thus no marks for guessing that Lipton and Tapal were the leading

brands at the IMT. According to the staff, Lipton’s teabags were extremely popular whereas Tapal’s

Danedar brand were also among customers’ favorites.

Another difference that I was informed of by the METRO staff was of how products were supplied to it

which differed significantly from the way they were supplied at HFS’s. Goods were delivered to it mainly

based on orders by officers responsible for inventory management. Once an order was placed, company

trucks delivered the required products. Whereas in HFS outlets I was told by about 98% shopkeepers

that delivery was done through vans which came after an interval of about average 15 days. Hence

distribution in HFS stores was done through middle man (distributors) whereas in IMT it was done

directly through company trucks.

Furthermore in METRO I noticed that tea was available in bulk form. Since people shopped there

monthly or so hence there were no sachets or small tea packs available like in HFS stores. Tea bags were

also sold in 600 pieces pack which was found no where else, neither in LMT nor in the HFS shops. Plus

there were some significant price differences amongst all three categories. METRO prices were a bit

higher than those of HFS stores but lower than that of the LMT I visited i.e. Naheed SuperMarket. A few

varieties like Lipton 100 teabags pack in METRO were being sold at discounted prices which made them

almost equal to HFS’ tea prices. However such discounts were only temporary and generally tea prices

at the IMT were bit higher than tea prices at HFS stores. That was what I observed about the IMT and

how it contrasted with the HFS and somewhat with the LMT.

The LMT I chose for my report was Naheed Supermarket located at Bahadurabad. Its size was smaller as

compared to METRO which was huge and extremely spacious. However it was significantly larger than

all the HFS stores. Naheed comprised of 3 different floors and tea was kept at the lowest one. It was

kept amongst products like milk, desserts, biscuit, artificial sugar products, etc. opposite to the tea racks

was a rack consisting of powdered milk like Everyday, Nido, Milkpak etc. Hence it can be seen that tea

and its complementary products were kept very suitably and within reach. As far as supply is concerned,

the retailer informed me that owner places orders of tea products on a weekly basis. About 25 to 30

cartons were ordered per week through company trucks directly. The retailer also said that the owner

did not build up too much inventory because of expiry date issues and likely changes in demand of tea

brands.

As far as SKU’s are concerned, Naheed had several different packs like teabags of 100 and 50 pieces as

well as 190 g, 250 g, 450 g and 1 kg packs. The prices however, were higher in Naheed as compared to

those in Metro and the HFS stores. The likely reason for this might be the lavish ambiance of Naheed

with Air conditioning at all floors and being located in an posh locality like Bahadurabad , opposed to

that of IMT and the HFS.

Talking about preferences of tea in the LMT, a majority of people (both customers and shopkeepers)

greatly showed a liking for Lipton tea. The reason they gave was its great flavor and aroma. Despite

being relatively expensive as compared to Tapal, Brooke Bond, Tetley etc, I was told that Lipton is the

most running brand at Naheed. Perhaps another reason of its popularity was that immediately at the

entrance, there was a separate rack consisting of Lipton tea only which caught every one’s eyes

instantly. Hence this accounts for greater sales of Lipton at Naheed.

Lastly I visited the HFS outlets. I differentiated amongst HFS A’s, B’s, C’s on the basis of their sales, size,

product variety, location and customer frequency. I visited four HFS A’s, three HFS B’s and three HFS C’s.

Generally speaking, the HFS stores were all small as compared to the IMT and LMT. They did not have

separate aisles or so for tea and a few of them (HFS A’s) had small posters etc at point of sales as their

promotional activities for which company paid. Another difference was that in all these HFS outlets,

distribution was done through middle men rather than company trucks delivering tea.

As far as tea preference is concerned, all the HFS B and C store retailers said that Tapal Tea was the most

running brand and the reason why customers preferred it was because of its strong flavor and fragrance.

However, Tapal was also the most running brand in these stores because it was relatively cheaper as

compared to Lipton. And since these stores catered mostly to people with average and low level

incomes hence Tapal was the more running brand unlike Naheed which has a huge majority of people

coming from upper and elite class. In the HFS A’s there was a mixed trend of customers liking Lipton and

Tapal.

As far as SKU’s are concerned, these outlets had a variety of those such as sachet packs, 95 g, 200 g, 450

g, 1 kg and teabags etc. Since customers also bought goods on a daily basis from these HFS stores, these

SKUs were appropriate.

Moreover, the size of HFS A’s was larger followed by that of HFS B stores and the smallest were HFS C’s.

Goods were kept very close together and tea was kept with other commodities like Masala, Milk,

Biscuits, and Chips etc. Very less posters and other advertisement efforts were seen in these HFS stores

as compared to promotional activities in IMT and LMT.

Hence the above mentioned observations and differences I noticed during my market visit report to

various outlets and retail stores.

Documents

Market Visit Report