TAPAL

Tapal tea( Product Line)

Tapal started out as a family concern Tapal moved from success to success introducing tea brands to suit every taste and pocket,. Tapal introduce professional management and unique production ideas to the business Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan. Today Tapal has become the largest, 100% Pakistani owned Tea Company in the country. It has modern tea blending and packaging factories, warehouses equipped with state-of-the-art equipment and a team of highly dynamic professionals.

Tapal Danedar

Gulbahar green tea

Tapal jasmine green tea

Tapal family mixture

Tapal special teabags

Chenak dust Highly

Mezban premier dust

Tapal special round teabags

Tapal safari chai

Tapal tezdum

Positioning:

Tapal and community services

Over the years Tapal has not only provided quality products, but has also fulfilled its social responsibility of being a good corporate citizen by actively participating in community service activities. The company has continuously sponsored the arts, social welfare projects and sports within Pakistan.

The Tapal Cricket Club, started in 1988 has become one of the most popular and reputable sports clubs in Karachi and has many cricketers and professionals as its members. Tapal has also sponsored fund-raising events for the Pakistan Medical Association such as marathons, walks etc.

As part of its rural marketing program, Tapal conducts various welfare activities in towns on an on-going basis such as providing fans and furniture for schools, installation of litterbins for a cleaner environment and providing street lights to municipal committees of small towns where such infrastructure is not available. Tapal has provided support to communities at the time of crisis due to natural calamity such as the drought that hit Thar in the year 2000 during which the company distributed free tea to the affected people.

Tapal has also recently completed the restoration of the 100 year old Jampur Gate in the town of Jampur in Punjab. This project is a symbol of Tapal's active participation in the country's development and preservation of its rich cultural heritage. This spirit is also evident on national days such as 14th August and 6th September when Tapal celebrates with the nation by taking out a cavalcade.

From the house of tapal

A unique combination of high- grown Kenya tea leaves and dust, that gives a refreshing aroma of leaf and strong taste of dust all together in one cup. Tapal Chai Family Mixture is the pride of Tapal developed by the forefathers in 1947 and thus creating a new category of Mixture in the tea market.

It is the blend that started the Tapal success story, and now the other tea companies are following Tapal’s footsteps by entering the market with similar blends. Danedar Leaf Blend Pioneer of the Danedar category in Pakistan, Tapal’s Danedar remains a firm favourite around the country with its grape-nutty appearances, rich golden colour and a strong refreshing taste. In fact its popularity is such that several multinationals have launched their own versions, but Tapal’s remains the original and ultimate Danedar because of its unique colour and taste.

Distribution:

Tapal's success has astounded many. However no magic formula lies behind its growth other than hard work, dedication and of course unique tea blends. As a result, Tapal has won the hearts of countless tea drinkers across the country.

Tapal's deep rooted culture and core values differentiates it from its competitors. It is built on sound principles and practices; not dominated by a group of individuals. Its greatest asset are its people; and the consistency of principle and policy give the direction.

A commitment to quality

"Never compromise on quality" has been the motto at Tapal since the very beginning. This commitment to quality has resulted in a high level of customer satisfaction and unflinching brand loyalty. In December 1997, Tapal Tea became the first Pakistani Tea Company to earn the ISO-9001 certification: a symbol of the highest international quality standards. Again in December 2000, Tapal acquired the ISO9001: 2000 certification, making it one of the first few companies in the world to achieve this milestone. In addition to the standard requirements, the ISO9001: 2000 certification system includes requirements for environment improvement, concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction.

tapal's quality policy

The Management and the employees of Tapal Tea (Pvt.) Ltd. are committed:• To produce products that meet the customer's requirements & expectations.• To fulfil the requirements and effectiveness of the quality management system through continual improvements.• By constantly reviewing / updating the relevant quality objectives of products & processes.• To participate as teams or individually towards the improvement of processes, personnel, environment & ethical values.

Leaders in innovation

Always on the move, Tapal Tea is honored to have taken the lead in a number of areas in the tea industry. Tapal has been:• The first to introduce soft packs in the country.

• 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).

• The first to invent the highly successful brand Danedar Leaf Blend.• The first to market Kenya teas in Pakistan. • The first tea company to be awarded the ISO 9001/2000 Quality Certification

As a step towards backward integration Tapal has begun tea plantation at Shinkiari in the northern region of Pakistan. This project aims at providing jobs, saving the country's valuable foreign exchange and is a significant step towards self-sufficiency. Tapal is also the 1st national tea company to export tea to the UAE, Canada and USA. This is again a pioneering step towards increasing value-added exports and is also a fast developing source of foreign exchange for the country.

Research & development–an ongoing process

Tea blending and tasting is both an art and a science and Tapal prides itself on having mastered both the aspects. Tapal has adroitly judged the olfactory senses and keenness of the taste buds of their patrons, resulting in the creation of various well-known brands. Aftab F. Tapal is a well-trained and highly experienced tea taster of the country and is recognized as a qualified tea specialist worldwide. Tapal's tea managers have been trained at home and abroad in this very rigorous and specialized discipline, and have frequently travelled to leading tea-producing countries searching for better teas.

Tapal is a research-oriented company. It subscribes to and conducts various researches in the area of retail audits, consumer behavior, media planning and product development. This research is used for continuous improvement in product quality, brand positioning and communication according to the changing requirements of the consumers. Consistency and quality are the two keystones of Tapal's production policy, and the Quality Control Department at Tapal ensures that flavor and freshness is never compromised. That's why all the brands, whether Danedar, Tapal Special or Tapal Family Mixture, always taste exactly as expected; retaining aroma and freshness till the last sip.

Tapal rural marketing

Tapal has endeavoured to make its marketing activities as attractive and interactive as possible, forging a direct link with the consumers. The recently introduced Tapal Road Show has given rural marketing a whole new feel.

Tapal has a huge fleet of beautifully decorated trucks conducting the road shows. These trucks are fabricated with a kitchen, a state of the art sound system and a side door which converts into a stage. Vans are used for conducting merchandising activities and POS splash. Mobile Video Units are used for projecting promotional and entertainment films. Tapal's philosophy has always been "be as unique and innovative as possible in what ever we do"...and this is just one of the many examples.

Strong distribution network

Tapal has a distribution network spread across Pakistan, from Karachi to Khyber with over 400 distributors. Extensive training programs are provided for the devoted sales personnel. The popularity of its fine brands is unabated, making it the No 1 national tea company in Pakistan.

Pricing Strategy:

Pakistan is one of the leading Tea importers in the world. In fact it is now the second largest tea importer after the breakup of the Soviet Union with an annual requirement of sum 140,000 import valued at 225 million US dollars. If current consumption trends persist Pakistan would overtake the United Kingdom as the leading tea importing lesson by the year 2010. This is no startling revelation-but a mere statistical certainty!

Pakistanis are avid tea drinkers with per capita consumption of 1 kg per annum. In the hinterland, which still commands 70% of the ruler and agricultural population, a cup of tea is part of the daily routine and culture. More often then not it is cooked in milk and sugar and taken together with bread-making for the cheapest form of dietary intake or food-rather than being taken purely and simply as a beverage.

The government of Pakistan treats tea as an essential commodity. Although there is no price control, tea prices are monitored very closely by the government.

With the per capita consumption around one kilo, it means that a Pakistani drinks twice as much as an Indian and approximately, thrice times that of Bangladeshi. It is not only most popular Beverage in the country but it is also the cheapest available.

Being a developing country with meager foreign exchange resources tea imports have been putting enormous pressure on country’s exchequer and from time to time the government has been exhorting the people to drink less tea. Also, they have imposed duties to raise the price of tea to discourage tea consumption. However, none of these measures have worked, and tea continues to be most popular drinks among the masses.

The Pakistan’s tea makers can be classified broadly into two categories, one is the blended and packed segment of the market and the other is the "loose" tea. The marketing and distribution patterns are distinct. There are two measure-blending companies that are Lever Brothers, and Tapal. Blended and package tea represents approx 55% of the total trade.

Pakistan’s tea market has seen radical changes both in terms of quality and Quantity. From 1947 to 1971 its entire requirements were met from tea producers in East Pakistan and only a small percentage of Ceylon teas were allowed for blending for top qualities brands.

After the separation of East Pakistan, tea was allowed to be imported and Sri Lanka became the measure source of supply from 1972 to 1979. In 1979 prices in Sri Lanka rose sharply due to the drought, some Pakistani importers purchased Kanyan tea which opened up the safari road to African estates. Kenyan tea found ready acceptance with the Pakistani consumer largely because of its good quality and higher cuppage. As a result Kenya is now the largest supplier country and accounts for 60% of the total imports.

There were price controls on the blending companies till 1983, which prevented then from marketing quality teas. With the lifting of the band in early 1984, the blending companies lunched their high quality branch based on good liquoring Kenyan teas, followed by massive TV advertising, attractive packaging and aggressive marketing. As a result CTC teas took a form hold in the process - and to the teas of Kenya and other African countries account for 75% of the Pakistan’s total imports - an unrealistic and unhealthy phenomenon creating an entirely one way trade.

Attempts were made by the government to correct the imbalance by introducing of STA (State Trading Agreements) in 1987. This was not a very well thought out policy and resulted in uncertainty, speculation, trading in import licenses and inflated price level in STA countries. Special Trading Agreement helped temporarily but it replaced to previous levels once the STA was scrapped.

The free input of teas helped to make available to the consumer the best tea packed in attractive design/printed cartoons and soft packs. The packaging industry is now very well organized and advance-and packaging of international standard is available including tin containers, Box Board, Poly Coated papers, Aluminium Foils and High Density Polyethylene.

Tea consumption was 30 million kilos in 1970. We had a 10% growth in tea consumption by mid 80’s as our biggest province Punjab Stated drinking tea, now the growth is 2.5% per annum.

Now Pakistan buys all grades the very best KTDA East of RJFT marks and lower qualities Chinese and Vietnam. PFI consists of 65% imports, 20% broken and 12% PD/AJ and dust. Out of total imports, CTC is 87%, Orthodox is 10% and 3% is green.

In the year 2000 Pakistan imported 113 million kilos and got the cross border 20-25 million kilos. Imports from Kenya 59 million kilos and from SAARC members:

India : 1.523 million kilos

Sri Lanka : 404 million kilos

Bangladesh : 816 million kilos

The government policy is very clear and open. There is no restriction, we can import from anywhere, any quantity, and at any price. It is our consumer who makes the decision. Please come and visit us. At present, a strong tea delegation from Sri Lanka is in Pakistan, the Indian delegation visited Kenyan and us in February in March.

At present the Tea import is subject to following changes:

Import Duty : 25% Sales Tax : 15% (Duty Paid Values)

Import Tax : 8% Other : 4% Total : 56%

Now, I come to the future of our tea industry, our dreams and what we have in mind.

Future

Pakistan Tea Association has the honor of hosting the International Tea Convention at Karachi in the year 1994 and 2000. Both were attended in large numbers.

We in Pakistan believe that we have all necessary infrastructures and have every right to get a small share in the global value added tea market. We have a very large neighboring market and local markets as well. We no longer want to remain in Tea importing and drinking country.

Our government and private companies are experimenting tea plantation in our northern hilly areas. About 60,000 ha of land has been identified and results were very positive, about 600 acres already cultivated and first 2 factories of 1000 kilos made tea will go into production June this year.

This is my humble request to please come forward and have joint ventures in above fields so we in SAARC can come closer.

Although the focus of my presentation has been the strength of Pakistan within the Global Tea Industry, I would like to reiterate that tea is very much an international commodity and is not the private domain of any part of the universe. Therefore, at an international convenes such as this, I would like to stress that all players in this industry be they primary producers, brokers, traders, packagers, marketers, wholesalers, retailers, or the final consumers, all have a significant role to perform to ensure that the cake which I believe can be cater to all is shares in an equitable manner. This is why I have always maintained that not only corporation but also International interaction is very important.

Lipton (Product Line)

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Positioning:

Delivering The Power of the Leaf.

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