ICE TEA MARKETING STRATEGY

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Company profile &Introduction

• The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family. In 1947, Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal.

• Against tough competition Adam Ali's unique blend, later named Family Mixture, became a hot favorite and eventually the largest selling brand in the unorganized tea market. From this auspicious beginning, Tapal moved from success to success introducing tea brands to suit every taste and pocket, sold from its retail outlet in Jodia Bazar, Karachi. The quality of Tapal teas soon became legendary and people from all parts of Karachi started lining up at the outlet to purchase tea. For their convenience,

Company profile &Introduction• Tea distribution was initiated to retail outlets

around the city. The company continued to grow under the management of the founder's son, Faizullah A. Tapal.

• Today Tapal Tea is managed by the founder's grandson, Aftab F. Tapal. After studying abroad, Aftab Tapal returned to Pakistan to introduce professional management and unique production ideas to the business.

• A well trained tea taster and tea connoisseur himself, Aftab Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan. His progressive outlook resulted in giving further strength to the foundation of quality laid by his family.

SITUATION ANALYSIS

• Tea is the cheapest and most popular beverage that is served at both professional and social gatherings all over the world.

• In Pakistan it is counted as a staple food item of common man and is an integral part of our culture and heritage.

• Due to these causes Pakistan consumes an substantial quantity of tea.

SITUATION ANALYSIS

• Under this scenario, tea imports rose from approximately US$ 120 million in 1998-99 to US$210 million in 1999-00, showing an increase of over 65 percent.

• Its imports were US$173 million in 2002-03.and still it’s increasing.

• The above chart shows that the total tea market present in Pakistan is 150,000 tons and the organized market show 80,000 tons and the unorganized show 70,000 tons

MARKET SHARE PICTURE

• Our main focus is on organized tea market. Where different companies like UNILEVER and TAPAL are holding the main market share. Some other companies also present in the market but having very low share of the market.

• Unilever Pakistan limited has 43% market share.

• Tapal private limited has 41% market share.

• Vital tea limited has 6% market share.• Tetley has 4% market share • The remaining 6% belongs to other market

share in the organized market.

COMPANY ANALYSIS

• 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.

Brand Descriptions

TAPAL DANEDARGULBAHARTAPAL SPECIAL TEA BAGSTAPAL SAFARI

MARKET TRENDS

Trends are now changing. • If we see the consumers of tea firstly they are using

or you can say addicted of the generic tea which is the black one but now the trend is changing.

• Consumers now want something different in taste now as the competition is getting higher. Consumer of tea wants some new flavors in tea because now their taste is changing as the time is changing so trend is changing in the market. And Tapal utilize this trend very accurately as their innovations show us everything.

• Tapal meezban, tanedar, safari, and especially round metal free tea bags and last but not the least Tapal ice tea shows that as the trend is changing in the market Tapal also using this trend in the form of new innovations.

IDEA OF ICE TEA

• Iced tea, also known as a form of cold tea, often served in a glass over ice.

• It may or may not be sweetened. • Iced tea is also a popular packaged drink. • It can be mixed with flavored syrup, with common flavors

including lemon, peach, raspberry, lime, and cherry. • While most iced teas get their flavor from tea leaves, other

herb-infused beverages are also sometimes served cold and referred to as iced tea. Unsweetened iced tea is sometimes made by a particularly long steeping of tea leaves (Camellia sinensis) at lower temperature (one hour in the sun versus 5 minutes at 80-100°C). In addition, sometimes it is also left to stand overnight in the refrigerator.

Background of TAPAL ICE TEA

• The invention of ice tea is generally believed to have occurred in America in 1976, although some evidence has been presented that it may have been drunk in the South well before that. Like many great inventions, ice tea was created completely by accident.

It was a scorching day during the World's Fair in St. Louis, Missouri, and Englishman Richard Blechynden's tea concession was not doing well. He could not entice anyone to try his steaming beverage.

• The scorching heat drove all visitors past his wares. Until he struck upon a solution. Borrowing ice from a nearby ice cream stand, he created a beverage that would endure for the next hundred years which is now also available in Pakistan.

OPENING OF TAPAL ICE TEAA new chilling out product • 14th of June was a historic day at Tapal Tea Pvt Ltd.

Pakistan’s own and favorite hot tea Beverage Company took its first step towards expansion with the introduction of its new product “Tapal Ice Tea”. The first consignment of Tapal Ice Tea was ceremoniously dispatched from the company’s warehouse on Thursday the 14th of June 2006. Tapal Tea Private Limited, scores another first by launching Tapal Ice Tea Powder.

• This was revealed at a forum of Tapal’s distributors and sales force at a local hotel.

• This signifies local talents and abilities as this is a unique product manufactured locally.

• It is good news for health conscious individuals as now they can enjoy a refreshing and nutritional drink.

• Ice tea was introduced in the United States in 1795 and in 2006 in Pakistan

R&D BEHINDICETEA

• Ice Tea Powder is a unique product, which underwent excessive testing and formulation by the R&D department and surpasses global benchmarks.

• The launch signifies local talents and entrepreneurial skills as there is no such offering available in the market.

• Speaking at the occasion Ehtisham Khan, Brand Manager Tapal Ice Tea said “Innovation and better understanding of consumer preferences is the corner stone of our success and Tapal Ice Tea is another milestone.

• We intend to provide our customers with healthy and nutritional substitutes”.

ICE TEA in |Pak Business Environment• Heavy investments, local preferences and innovation

have made Tapal a household name and a giant killer in the Pakistani business environment. Building on this legacy Tapal Ice Tea promises a healthy and nutritious drink for the masses.

TAPAL THE LEADING BRAND

Tapal has been the leading brand here in Pakistan for many years, and this new product which is for now available at leading stores in Karachi and is sure to stir up some more excitement among the Chai freaked Pakistani’s which will make Tapal another step ahead of the leading brands in our country.

TAPAL ICE TEA MARKET SHARE• Tapal wants to increasingly cater to this

market and it is doing so with the launch of Tapal Ice Tea. Tapal is known for its hot cup of quality blend of teas, but with Tapal ice tea,

• it has literally set a new precedent in our markets. Taken in an international context

• Tapal Ice Tea is not a new product however it is a first of its kind in Pakistan. Who else but Tapal, the tea experts, could have served up so many ways to enjoy the convenience & benefits of tea?

TAPAL ICE TEA TARGET MARKET• Tapal Ice Tea offers Pakistani youth an

attitudinal choice that comes in the kind of flavors that they will like. Tapal ice tea is made for today's generation that loves to enjoy their life at its fullest and chill out. Instant refreshment is yours anytime with our beverage. Thirst-quenching and delicious, our Ice Tea is pure and satisfying.

ICE TEA PRODUCT LINE• TAPAL Lemon & Lime and Peach Ice

Tea are a refreshing addition to the popular TAPAL product line of traditional teas.

• The ice tea contains vitamin C that gives it a refreshing tangy taste.

• Without doubt Tapal Ice Tea is the best drink that adds to the fun of activities that you're engaging in. Whether its music, shopping, party, workout and games, you can be sure of a chilling time.

MARKETING STRATEGIES

• MISSION“To satisfy our stake holders as a

guiding principle in our principle be a benchmark for quality, creativity and ethical values.”

MARKETING OBJECTIVES

• The objectives of the marketing plan are strategically centered around 3 criteria

• · To create a strong consumer awareness against unorganized tea product,

• · To establish a wide brand recognition through the capture of market shares in the multi segment, and

• · To become the top market leader in that particular segment within the strong research and development.

TARGET MARKETING

• The target market is that they are defining for our brand Tapal Danedar is the A class and B+ class. The target of this brand is the urban areas of the country and along with the use in offices and business class as well. Tapal danedar is basically the one to one competitor against Lipton yellow label. The class and geographical location we can say is almost same for both the brands.

POSITIONING

• TO A class and B+• FOR TAPAL DANEDAR• DIFFERENTIATION DANEDAR TEA

MARKETING MIX

• PRODUCT• The core• Tea Beverage• The actual product ,• Branding: red color, aspect of refreshing, hard

pack and soft pack both.• Trade name: Tapal Danedar, a TAPAL product• Brand personality Freshness, Healthy,

Innovative, etc.• Brand equity: Tapal Danedar provides a

quality, consistent, innovative and accessible tea reputation.

MARKETING MIX• PRICE• The pricing strategy that they are following for Tapal

is cost oriented as the price that Tapal is taking is comparatively low then its main competitor Yellow label tea. The price going for some products are

• 200 grams Tapal Danedar Hard Pack 80rs.• 400 grams Tapal Danedar Family Pack 155rs.• Prices for Lipton Yellow Label Tea• 200 grams Yellow Label 95rs.• 500 grams Yellow Label 235rs. • So its price we can say that varies according to cost

and even in high quality which they are claiming their price is low as compared to Yellow Label Tea.

CHANNELS OF DISTRIBUTION

• Manufacturer ------à Distributor---------à Retailer --------consumer

• TAPAL has 5 main warehouses in Pakistan which are located in the following cities.

• 1. KARACHI• 2. HYDERABAD• 3. SUKHUR• 4. MULTAN• 5. RAIWIND

PROMOTION

• Objectives• To make the brand remind the consumer as much it

could be. • · Tapal is using both BTL and ATL for the purpose of

promotion. • · Through BTL Tapal is focusing on display racks, sign

boards etc. mainly placed to different retailers for heavy promotion against their competitors.

• · The specific term used by TAPAL is the MODERN TRADE so that they have an eye contact of the product with the customer. In this they are using shelves to display their product in big stores like ALFATAH, HKB, and JALAL SONS.

• · Through ATL Tapal is focusing on broadcast and print media promotion by placing ads on T.V and placing newspapers ads as well.

MARKETING RESEARCH

• 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.

MARKET GROWTH

• Industry is now on the maturity stage. Large players has established their brands in the market and enjoyed huge profit margins. Now they are looking towards product differentiation and multi segmentation because consumers are now more taste conscious and looking for variety available to them in a tea market.

SWOT ANALYSIS

• Strengths• The strength of the company would be the

innovation and the high quality products. Because of these the company is able to survive in the market and still earning a good market share comparing to its competitors.

• Opportunities• sOne of the greatest opportunity that Tapal has

its huge market which is increasing as the population is increasing. Tea has become a staple product in Pakistan which cannot be denied at 20 to 60 year of age.

• Per capita consumption is almost 1kg according to a recent research in Pakistan.

SWOT ANALYSIS• Weaknesses• No major weaknesses were mentioned by the

authorities of Tapal but its intense competition as our analysis is one of their weaknesses as to stay alive against a giant as Unilever and the other one new entrant as Tetley.

• Threats• One of the major threats that Tapal has it is its

area of the market which is not educated and it is using the loose tea which may not be good for their health as well. Tapal claims that it is not possible for them to create such a big awareness for them but the Government should play his role so that these people should have some awareness of the imported loose tea.

COMPETITION LEVEL

• DIRECT COMPETITION of Tapal tea is with Lipton yellow label tea.Indirect competition of Tapal is with coffee, loose tea and other flavored teas.Generic competition includes all the generic products which can fulfill consumer’s generic needs. Last one is budget competition that includes the alternatives.

COMPETITION LEVEL

• The following diagram shows the level of competition of Tapal Danedar.

CRITICAL ISSUES

• Tapal claims as the high percentage of illiterate people does cause a problem for them as these sort of people does not know about the problems in the loose tea. A major portion of the market which is a low level class goes for the loose tea as they do not know the low quality of tea used in it which can be a threat for their health.

REFERENCE

• Reference was taken from the following

• http://www.amcy5.com/projects/marketing/amcy9.htm

• www.tapaltea.com• Economic Survey of Pakistan

through Website.

THANK YOU