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ACKNOWLEDGEMENT

At the completion of this project, first of all we will be

enormously thankful to God almighty that has endowed me with

valuable abilities and qualities to perform things well for good

purpose.

Secondly we are greatly indebted to worthy teacher Mrs.

Ayesha Zahid who has taught us the basic concepts of

Marketing.

We would also like to thanks all the people and our friends

who helped us lot during the survey and the information which

we gathered from the various sources.

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Table of Contents

Serial

No.Topics Page No.

1 Executive Summary 1

2 Introduction 2

3 Tea Industry Analysis 3

4 About Tapal Tea 7

5 Product Line of Tapal 9

6Tapal Tea with Respect To 4 Ps

19

7 SWOT Analysis 25

8 Main Competitors 29

9 Environmental Factors 31

10 Target Segment 33

11 Positioning 35

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12 Recommendations 39

13 Conclusion 41

EXECUTIVE SUMMARY

Tapal, the pioneer in Danedar chai, is one of the leading

company in Pakistan. In this project we have tried to analyze all

the marketing aspects regarding Tapal tea. They started as

unbranded tea blend to catch to teashops and restaurants in the

Karachi region and meet the demand for a strong, yet aromatic

blend that would satisfy a wide range of customary.

We have also analyzed the different environmental factors,

and how they affect the marketing strategies of the organization.

Their environment ranges from social, cultural to legal factors.

Our research showed that tapal tea industry focused a wide

range of customers ranges from age 15 – 65 and all the people

either belonging to rural or urban places, introducing the typical

taste and name according to the particular areas. Our research

4

showed that tapal is expanding its market by introducing new

flavored brands, according to the tastes of the people.

INTRODUCTION

The main reason for the selection of Tapal brand is that

it is the pioneer in the quality of Danedar but it is still not so

much famous like the other brands Lipton and supreme etc.,

which suits our requirement of the project. Tapal is the company

which is only involves in the production of tea. On the other

hand Lipton and supreme which are the brands of Uni Lever. So

it is very convenient for us to analyze this.

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SITUATION ANALYSIS

MACROENVIROMENTAL FACTORS

Social and Cultural Factors:

Social-culture factors consist of institutions, people and

their values and the norms of behavior that are learned and

share. The social component describe the characteristics of the

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society, it’s demographic. The cultural component deals with the

people values and behavioral norms. Off course these factors are

not in the control of the company but fortunately it is in favor of

company as there is tremendous consumption of tea. “Masses of

Pakistan are no doubt found of tea, having annual consumption

of 140 metric ton.” At the moment there is no such social or

cultural factor that is apposing tea consumption. Tapal is the

only local company which establishes itself, and people some

time do prefer local product, so the socio-culture are in favor of

tapal.”

(Dawn, 18 Sep, 2003)

Economic Factors:

Economic factors include income, inflation, productivity,

and unemployment. Generally a healthy economy is good for

both the consumers and marketers.

Basically there is an inflationary trend generally and the

purchasing power of the people is effected so all such things are

beyond the control of the company.

According to a survey, Tapal has a great advantage in this

respect, as a local company, their price is low, which suits most

of the population of the Pakistan.

Technological Factors:

Technological innovations include all the activities involved

in translating technical knowledge into a physical reality that

can be used on societal scale. A classical comments about the

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technology “business that have been slow to react when major

innovation have invaded their industry have often relinquished

hard-won position in a very few years.

The Tapal team is committed to providing the best teas, at

the best prices using the latest technology available. They have

installed a sales automation system (SAS) in their process.

Ecological Factors:

Ecological factors consist of our natural surroundings. No

doubt Tapal Tea Company is ecologically friendly.

Legal Factors:

Legal factors consist of the government’s rules and

regulation that apply to organization. No one is like to being

regulated, so that factor is beyond the control of the company

and company has to adjust its strategies according to the rules.

Being a local company Tapal tea adjusts itself easily

according the rules given by the government, and they maintain

their strategies according to the policies of the government.

Competitive Factors:

“Competition, domestic and international is another

important factor of the external environment. Three competitive

factors are the

1- nature of the competition

2- entry and exit of competition

3- major changes of strategy by the competitors”

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As far as the competition is concerned there are two major

competitors of the Tapal tea company i.e. Brook bond and Lipton

both belong to Lever brothers, and other competitors is the

Loose tea which accounts for the 30% of the share.

INDUSTRY ANALYSIS:

Presently Pakistan is meeting its entire tea requirements

through imports till 1971 it had a surplus because of production

of this commodity in the Eastern Wing (then known as East

Pakistan) in great volumes. Consequent on the loss of the

Eastern Wing, it had no alternative other than importing tea. It

thus turned into an importing country from an exporting one.

This 'table-turned' situation proved a blessing in disguise.

In order to reduce its dependence on imports, Pakistan planned

to produce its own tea and started to actually produce it on an

experimental basis in 1980 in Mansehra district of NWFP which

has a favorable climatic and soil condition for tea production. Till

recently, Pakistan has been importing enormous quantities of

tea each year footing a huge bill in hard-earned foreign

exchange.

Presently, tea in the country is being cultivated on 87 acres

of land. This acreage is expected to rise once our farmers have

become conversant with the technique of production and also

become sure that their harvest would be lifted without any

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difficulty. As for processing, a tea-processing unit has already

been set up in Shinkiari in Mansehra district. The processing

machinery has been imported from China that has a producing

capacity of 1000 kilogram of black tea per day. The processing

plant has recently gone into production.

With the successful commission of the plant, it is expected

that Pakistan will soon emerge as a tea-producing country, in the

near future. Besides the above plant processing black tea, a

locally fabricated mini-plant has also been set up in the country.

It produces about 15 kg of green tea daily.

Then this tea is being sold in different markets of the country

and the consumers at large assess its quality better than the

imported tea.

General State of Economy:

As far as the state of economy is concerned Pakistan’s

economy is mostly depend on agricultural. The state of industrial

sector is precarious because there is more than five hundred

sick industrial units, there is a lot to do in this sector for its

development moreover the balance of payment has had been

unfavorable since the very inception of Pakistan except a very

few years and economy is under the great burden of foreign

debts.

Market Size

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In south Asia tea consumption is very high, as it may well

be judged by this fact that in Pakistan the annually tea

consumption is 140 metric ton. It is a profitable industry.

Per Capita Consumption:

The per capita consumption of tea in Pakistan is about one

kilogram. The factory set up at Shinkiari in Mansehra to be

commissioned this year with its limited production will be able to

meet only a fraction of the country's requirements. But with the

passage of time the tea production in the country will continue

increasing. It is planned to undertake cultivation of tea on

15,000 acres in phases. With their efforts for tea production, the

prospects for a flourishing tea industry in the country are pretty

bright.

This situation offers an excellent opportunity to both the

individuals and the companies wishing to reap rich dividends by

undertaking the cultivation, harvesting, processing and

marketing of a lucrative product like tea in a country like

Pakistan where already exists a great demand for the

commodity. It may also be emphasized that tea is a highly

rewarding cash crop that has a gestation period of four years.

From the fourth year onward the tea plantations can

continuously produce tea for 95 to 100 years. With the

successful efforts of producing tea in certain district of NWFP, it

can be gathered that tea may be grown in certain districts of

high altitudes in Balochistan as well.

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The Pakistan Agricultural Research Council (PARC) having

expertise and financial resources may be called upon to carry on

the required research on the possibility of growing tea in

Balochistan. In this connection, it is relevant to remind the PARC

that at one time in the pre-independence days Balochistan had a

flourishing vegetable seeds industries catering to the needs of

the entire Indo-Pakistan sub-continent. It could be possible due

to the favorable weather and soil condition for growing insect-

free seeds. Unfortunately, on Pakistan coming to existence, this

industry went into oblivion due to the exodus of non-Muslim

farmers to India who was well conversant with the growing

technique of seeds. The concentration of production of seed was

mostly in the hilly areas. On the same analogy tea-cultivation

needing somewhat similar climatic and soil condition may be

successfully undertaken.

The Economic Situation of Industry:

In the Pakistani tea industry, a company that has revenue

and skill to do this business can enter in this business. The

barriers for the new entrants in tea industry are average one. If

an organization has good contacts with the tea growing farmers

and it know the process of making the tea it can easily enter in

this market. But the big giants of the tea industry like Lipton,

Supreme and Tapal will give a tough time to the new company.

The government is encouraging the business activities in the

country therefore no such barriers from government side. The

concept of rivalry is present in almost every sector of Pakistan’s

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economy. In tea industry the Lipton, Supreme and Tapal are the

main competitors so there is a bitter rivalry between them. In

fact Lipton and Supreme both are the brands of unilever but

they also compete

with each other.

The main

substitute of tea is

Coffee; also

include Cold

drinks Soft drink

and Hard Drinks,

Juices (Fresh and packed). The bargaining power of the buyer is

not that high because the tea is having certain fixed prices. The

branded tea has fixed price and the customer usually pays the

price. However the buyer has some bargaining power in the

sense that he can buy any low price tea because many options

are available in the market. The bargaining power of the

supplier is also dependent on the situation. Sometime the tea

cultivators are in the strong position and sometime the tea

manufacturers are in power. It all happens according to the

demand of the tea crops. Threats of new entrants are moderate

as setting a tea manufacturing plant now requires a reasonable

amount of investment. On the other hand many multinational tea

brands can avail the opportunity to enter the Pakistani market.

The Standing of Tapal Tea Company:

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(Market Share & Competition)

“Tapal, the pioneer in Danedar chai having 25% market

share is on second number and serving the consumers in a

satisfactory manner. It is not a sale oriented company; its first

objective is to satisfy the consumer.”

Competitors :

Loose Tea:

Loose tea occupies the 2nd largest market share that is

30%, of course having a significant impact on the sales figure of

the companies, manufacturing tea & of course Tapal is one of

them.

Uni Leaver:

It is a multi national corporation and has got several

business units, manufacturing different things like soap,

toothpaste, edible oils & other consumer items. Dealing in

various consumer goods, it is also manufacturing tea under the

brands of yellow label & supreme, having the largest market

share of 45% & immense repute in the tea manufacturing

companies. Lever brothers have also bought its manufacturing

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plants in Kenya. In tea manufacturing they are the market

leader.

Others:

Others small companies are very meager like vital tea &

primer tea etc. so this other category accounts for 0.5% only of

the total market. The tea market with respect to market share

occupied by the above mention competitors can well be judged

by having a glance on pie chart.

ABOUT TAPAL

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, 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.

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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.

Making a modest beginning over half a century back, 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 headed

by Aftab Tapal himself.

A Saga of Success:

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.

Mission & Vision:

Tapal's deep rooted culture and core values differentiate it

from its competitors. It is built on sound principles and

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practices; not dominated by a group of individuals. Its greatest

asset is its people; and the consistency of principle and policy

give the direction.

Objective:

“Tapal’s objective is to satisfy the consumer”.

PRODUCT LINE OF TAPAL

Brands of Tapal:

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

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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 favorite around the country with its grape-nutty

appearances, rich golden color 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 color and taste.

Tapal Danedar

Gulbahar Green Tea

Tapal Jasmine Green Tea

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Tapal Family Mixture

Tapal Special Teabags

Chenak Kenya Dust Highly

Mezban Premier Dust

Tapal Special Round Teabags

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Tapal Safari Chai

Tapal Tezdum

Target Segment and markets of the

organization

“The division of market into different homogeneous group

of consumers is known as market segmentation”.

There are 3 types from which segmentation can be performed

Customer based Segmentation

Product related Segmentation

Competition related Segmentation

As far as the brand Tapal is concerned the market segment

of Tapal is so wide. Tapal is the only brand in Pakistan that has

many varieties as compared to another brand available in

Pakistan and they produce separate variety to segment

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particular kind of users. Tapal divide its market into different

segments and then offer their brands according to their

segments. Tapal offered their upper brands in different locality

and to different peoples as well. It basically emphasize on

geographic and psychographic conditions.

Tapal Danedar

Pioneer of the Danedar

category in Pakistan, Tapal

Danedar remains a favourite

around the country with its

grape-nutty appearance, rich

golden color and strong

refreshing taste. In fact its

popularity is such that other

companies have launched

their own versions of this

blend, but Tapal's remains

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the original and ultimate Danedar because of its unique color,

aroma and taste. Also available in double chamber tea bags,

today Tapal Danedar enjoys the position of the "No.1 Tea Brand"

in Pakistan.

Tapal Family Mixture

A unique combination of

high-grown Kenya leaf and dust

tea, Tapal Family Mixture is the

pride of Tapal. Developed in 1947,

it created a completely new

category in the tea market. It gives

a refreshing aroma of leaf and the

strong taste of dust- together in

one cup. It is the blend that

started the Tapal success story

and many other companies

followed Tapal in introducing similar blends.

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Tapal Safari Chai

Tapal Safari is made from the

finest Kenya leaf teas and provides

extra cuppage of great tasting tea to

the consumer. Tapal Safari chai,

with a safari theme, is aimed at

adventurous people.

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Mezban Premier Dust

A full-flavoured dust that delivers high quality at a very

economical price, Mezban Premier Dust is the blend for

consumers who prefer tea with a strong flavour & taste.

Originally developed for hot tea shops, Mezban has become a

favourite amongst household consumers as well. It is the most

popular brand of tea in Sindh. The

name of the brand itself is a

characterization of the typical

hospitality that is inherent to and a

matter of pride for the people of

Sindh.

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Tapal Tezdum

The latest addition to Tapal's

successful brands is Tezdum tea.

The biggest attribute of Tapal

Tezdum is its extra strong taste,

which is making it popular amongst

the people who like their tea strong.

Tapal Tezdum is the first tea brand

in Pakistan to be introduced in

attractive silver-foil, moisture-proof

sachets. They maintain the freshness, aroma and taste of the tea

and the consumer gets the product in the best condition

possible.

Highly

Chenak Kenya Dust

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Highly popular in Sindh, Chenak is known for its extra

strong flavour, colour and taste. As a result of these features and

high quality of tea it is No.1 in its category.

Tapal Special Teabags

The unique flavour of high

grown leaves especially selected

from the finest tea gardens in the

world make Tapal Special Teabags a

treat at any time. The combination

of an extra strong blend with the

convenience of environmental

friendly metal-free tea bags has made Tapal Special an instant

hit with consumers.

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Tapal Jasmine Green Tea

Tapal Jasmine Green Tea is the

most recent addition to Tapal Brands.

Tapal Jasmine Green Tea is blended

to perfection using the finest tea

leaves and specially selected Jasmine

to give a refreshing experience of

light taste and soothing aroma. It is

available in metal-free tea bags specially enveloped for extra

freshness’s available.

Gulbahar Green Tea

Green tea lovers around

Pakistan regard Gulbahar as a

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special treat. Perfect as an after dinner option, Gulbahar

remains a perennial favourite due to its refreshing flavor.

Tapal Special Round Teabags

Tapal earned a unique

distinction in 2003 as it became the

first tea company to introduce hassle-

free, extra strong round teabags in

Pakistan. With no strings attached,

these teabags are easy to use and

their shape guarantees an ideal

infusion of taste and aroma for a refreshing, strong cup of tea.

From the analysis of different varieties of Tapal we come to

know that Tapal have different brand for each segment so that

they can target more consumer to be loyal with them.

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SWOT Analysis:

A useful way to analyze the various internal and external factors

that affects the marketing planning is a SWOT analysis. SWOT is

an acronym for strengths, weakness, opportunities and threats.

The figure given below will illustrate the all about the SWOT

analysis.

STRENGTH:

Being the pioneer in tea industry:

At 50, Tapal & Pakistan are both at the brink of a new,

golden age. The golden jubilee is a historic landmark which no

doubt is strength of Tapal.

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,

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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 fulfill 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.

Leader 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

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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.

Packaging: pioneers of soft packaging

Technology is also harnessed at Tapal to benefit the

consumer. From the very beginning, Tapal realized the

importance of importing innovative technologies such as the soft

packing process. A fully automatic facility was established where

soft packs were produced for the first time in Pakistan. At this

facility tea is blended and packed in hygienic conditions,

untouched by human hands whilst the soft packing technology

keeps tea fresh and packaging costs economical. The success of

these soft packs has been such that other tea companies have

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also followed Tapal's lead and launched some of their brands in

soft packaging.

Research and Development

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.

Capacity of Competition:

Tapal is now taking more interest in arranging the

competition for the people to get the attention of public, these

competition includes Tapal trophy polo, tapal marathon, tapal

interschool cricket, also participate with great enthusiasm on

important days as 14th august, Basnat etc.

WEAKNESSES:

Low market share:

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Despite having a lot of strengths Tapal accounts for only

24% of the total market.

Weak Distribution Channel:

Distribution network is not well organized, however efforts

are being made in this connection e.g. they have recently

purchased some trucks, else they used to hire vehicles for

distributional operations, which quite often would become

trouble some.

Sales Stagnation:

Despite having made changes in packing, company has not

yet achieved remarkable results so eventually we can say in this

connection that sales stagnation is company’s major weakness.

Restriction of Competition:

They should expand the circles of their competition to the

other cities such as Lahore, Multan, Peshawar, Quetta, until now

there most of the competition are restricted to the Karachi and

nearby areas.

Advertisement:

Though they are enjoying 2nd position in the market, but

our research showed that they are paying less attention to their

33

ads especially on the TV, as compared to their competitors.

People are less familiar with their ads.

OPPORTUNITY:

Tapal should introduce its other brands like “Mezban Dust”

& “Chenak Dust” in the areas where these are not available.

THREATS:

Tapal is facing tough competition from leaver brothers who

are strongly promoting “yellow label” & “Supreme”.

Karak chai has recently been launched in the market,

which could have an effect on company’s sales figures, if this

matter is not taken seriously.

MARKETING STRATEGY

TAPAL TEA WITH RESPECT TO 4 Ps

(MARKETING MIX)

4 P’s Price

Place

Sale promotionAdvertisingSales forcePublic relationDirect

VarietyQuality, sizeDesignFeaturesBrand name Packaging

List priceDiscountsAllowancesPayment- period

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PRODUCT:

“A product is any thing that can be offered to a market for

attention, acquisition, use, or consumption that might satisfy a

want or need.

Each product is related to other products. Product

hierarchies stretch from basic needs to particular items that

satisfy these needs. We can identify seven levels of the product

hierarchy. These are:

1- Need family

2- Product family

3- Product class

4- Product line

5- Product type

Product

Promotion

ChannelsCoverageAssortmentLocationsInventoryTranspor

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6- Brand

7- Items

Tapal is offering variety of tea for their customer according

to their taste, it give more choice to the customer to choose

according to taste. In that respect Tapal tea (Pvt.) Ltd. is leading

the market. They also provide tea in various packing such as soft

pack, hard pack, jar, tea bags and sachet.

PLACE:

“Place, another key marketing mix tool, stands for the

various activities the company undertake to make the product

accessible and available to target customers. Company must

identify, recruit, and link various middlemen and marketing

facilitators so that its products and services are efficiently

supplied to target market. It must understand the various types

of retailers, wholesalers, and physical distribution firms and how

they make their decisions. Marketing channels are characterized

by the number of channel levels. Figure (a) given below will

illustrate several consumer goods marketing channels of

different length. These are:

1- zero level

2- one level channel

3- two level channel

4- three level channel

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Figure (b) will described about the channels used in industrial

marketing

(a) Consumer marketing channel

Zero level

one level

two level

three level

MANUFACTURER

CONSUMER

Retailer

RetailerWholesal

RetailerWholesaDistribut

INDUSTRIAL

CUSTOMER

Ind.

ManufacturerRepresenta

Sales Branches

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(b) Industrial marketing channel

The distribution set up of Tapal is divided between two

regions i.e. north and south. The north region includes Punjab

and N.WFP while the south region consists of Sind and

Baluchistan.

In Lahore they have one regional office and three

distribution channels that supply the tea to the whole Lahore.

Regional office

1-Garden town

Distribution channel

1-Dahrum pura Mustafa abad

2-Millat colony Gulberg II

3-Maclode Road

PROMOTION:

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“Promotion stands for the various activities the company

undertakes to communicate and promote its product to the

target market. Thus company has to hire, train and motivate

sales people. It has to set up communication and promotion

programs consisting of advertising, direct marketing, sales

promotion and public relation as mentioned in the figure below.”

Advertising

Print and

broadcast ads

Motion picture

Symbols and logos

Audiovisual

material

Display signs

Billboards

Posters

Brochures

Leaflets

Sales

Promotion

Contests, games

Lotteries

Gifts

Premium

Fairs and trade

shows

Exhibits

Trading stamps

Coupons

Demonstration

Public Relation

Press kits

Speeches

Seminars

Annual reports

Charitable

donations

Sponsorship

Publication

Community

relation

Personal selling

Sales presentation

Sales meeting

Incentive programs

Samples

Fairs and trade

shows

Direct

marketing

Catalogs

Mailings

Telemarketing

Electronic

Shopping

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Tapal is advertising in print media like newspapers,

magazines e.g. Dawn, Nawa-e-Waqat, Jung and in some journals

for promotional purposes. it also advertises on electronic media

& Broad cast media e.g. TV, Radio and Tapal is also using

billboards and printed ads for retailers, moreover the company

has got a website as well the address of which is

www.tapaltea.com. That means they use both the types of

advertisement (ATL & BTL).

As far as the advertising is concerned, all the

advertisement of the Tapal (Pvt.) Ltd. is carried out by

1- Evernew Concepts (Pvt.) Ltd.

Evernew concepts is one of the top ten advertising

agencies of Pakistan, established in 1987and have annual

billing of 200 million.

2- Adcom (Pvt.) Ltd.

Adcom is one of the top 30 advertising agencies of

Pakistan, established in 1965.

3- Fourays (Pvt.) Ltd.

Fourays is also one of the top 30 advertising agencies of

Pakistan, established in 1972.

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Tapal advertise their different brands on different T.V

channels (GEO, ARY, PTV, KTN, Indus Vision, IM, ARYONE, and

The Musik) Total 1497 brands were advertised on all listed

channels in 2006. From which the rank of tapal’s some brand are

as:

Tapal Family Mixture 16

Tapal Danedar tea 21

Tapal Mezban 49

PRICE:

“A critical marketing mix tool is price, namely the amount

of money that customer have to pay for the product. Company

has to decide on whole sale and retail price, discounts,

allowances, and credit terms. Its price should be commensurate

with the perceived value of the offer or buyers will turn to

competitors in choosing their product.”

In setting the price of product, the company should follow

six steps procedure as given below:

1- Company must establishes it objectives

(Survival, max. current profit, revenue, sale growth etc)

2- Company must determine the demand schedule

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(Shows the probable quantity purchased per period at

alternative price)

3- Company estimates how their costs vary at different output

levels.

4- Company must examine the competitors price

5- Company selects one of the following pricing methods.

(Markup pricing, target return pricing, value pricing, going-rate

pricing, sealed bid pricing)

6- Company selects the final price.

As far as the price is concerned, they are on the top of the

list. They are providing the tea at relatively low price as

compared to their competitors. As far as their pricing method is

concerned, it’s a highly confidential so it is not mentioned here.

Prices of different Tapal brands with respect to its

competitors

Tapal Danedar (Economy Pack) Lipton Yellow Label

(Economy Pack)

Rs. 260 Rs. 270

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Tapal Family Mixture (1/2 kg) Lipton Yellow Label (1/2

kg)

Rs. 130 Rs. 150

Tapal Green Tea (Tea bag) Lipton Yellow Label (Tea

bag)

Rs. 1.33 Rs. 1.5

POSITIONING

43

Low High

TAPAL

LIPTON

BROOKE BOND

VITAL

Price

Quality

44

Core Product

The core product of Tapal ----------------------

The core product of Lipton --------------------- tea

The core product of Brooke Bond -------------

Augmentation

Expected

Core

45

Expected Product

As tea is that kind of brand from which with the purchase

of that the other benefits or the boundaries of expected products

are so limited or seems to be nothing

The expected product of Tapal ---------------------

The expected product of Lipton --------------------- jar

box

The core product of Brooke Bond ------------------

The core product of Vital----------------------------

Jar can say that it is an expected product the benefit of Jar

is to use another purpose when the tea inside the jar become

completely used instead of throwing into rubbish

Another Expected Product is Box which you can use it for

other purposes after it becomes empty or unfilled

And any buyer if wants to purchase a tea in a tea bags form

then it is possible and that kind of packaging is available in

mostly every brand of tea

Augmented Product

The augmented products of Tapal are

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o In Family mixture, family sachet offer

o Round tea bags

o Much wide packaging available in Tapal

o There are many varieties available in Tapal

The augmented products of Lipton are

o They are introducing Mini pack Biscuit with Lipton

o They are giving Cups of tea usually available in offices

o Water Warmer usually available in offices

Points of Parity (POP) & Points of Difference (POD)

Points of Parity (POP):

These are the associations that are not necessarily unique

to the brand but may in fact be shared with other brands. These

types of associations come in two basic forms: category and

competitive.

Points of Difference (POD):

These are attributes or benefits consumers strongly

associate with a brand, positively evaluate, and believe that they

could not find to the same extent with a competitive brand.

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In case of Tapal, there is the involvement of POP and POD,

as Tapal established its brands keeping in view POD’s.

Manufacturing of different brands for different customers, but

after all of this there is a point of parity that all the brands are

only tea.

In the product life cycle tapal belongs to the growth stage.

PRODUCT LIFE CYCLE

.

As human beings have a life

cycle same that is the product

life cycle. Most PLC curves are

portrayed as bell-shaped. This

curve is typically divided into

four stages: Introduction,

Growth, Maturity, and Decline.

INTRODUCTION:

It is a period of slow sales growth as the product is introduced in

the market. Profits are nonexistent because of the heavy expenses of

product introduction. This stage concerns with personal relation, sales

promotion, and advertisement. The distribution channel is limited.

48

GROWTH:

It is a period of rapid market acceptance and substantial profit

improvement. There is an improvement in the quality with new

features.

MATURITY:

In this phase there is an expansion of sales distribution and

promotion activity. Product modification takes place. Market also

modified by adding new users, new uses, and also attract competitor’s

users and non-users. It slows down in sales growth because the

product has achieved acceptance by most potential buyers. Profits

stabilize or decline because of increased competition.

DECLINE::

Sales show a downward drift and profits erode.

FINANCIAL PROJECTIONS

Amount in

(Rs.’000)

SALES

9,736

NET PROFIT

1,813

49

EXPENSES

299

CURRENT ASSETS

1,456

FIXED ASSETS

3,735

(Dep.) (49)

LONG TERM LIABILITES

2,321

OWNERS EQUITY

2,821

IMPLEMENTATION CONTROLS

Proper check and balance for its objective (satisfying the

customer). Then allocate proper reserves for marketing keeping

in view the revenue and other expenses. Allocate the proper

reserves for the development of new brand. They are using

management information system named as “stockman” for the

complete control of their plans and their proper implementation

as well.

RECOMMENDATIONS

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NEW MARKETING STRATEGY

Target Market:

In the new strategy we would target the same people who,

in previous strategy were targeted. But the important

recommendations to the Tapal in this regard would be that the

target market must be little bit extended because it is generally

said that the Tapal is more popular in the Karachi and other

region of Sindh as compared to Punjab. Tapal should extend its

target market to other areas of the country particularly in

Punjab and NWFP.

CHANGES IN 4P’s:

Product:

Tapal could expand its product line by introducing flavored

tea. e.g., Chocolate flavor is available and being sold by loose tea

sellers but this category of tea is not available in manufactured

tea except a very few foreign companies. No doubt Tapal has got

a 9002 certification, but packing could be made more impressive

especially for 250grs, 400grs & 500grs by getting these

quantities packed in plastic transparent Teakettle shaped

packing. They can also introduce the liquid tea bags, which are

not yet introduced in the Pakistan.

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Place:

As far as the distribution is concerned currently Tapal has

made segmentation with respect to taste and social class. e.g. In

interior Sindh Chanak Dust and Mezban Dust is popular while

for upper class & middle class Danedar Brand is available in

different packs as well as Tea Bags. While targeting villages

they are offering Tapal Safari & while targeting people who are

fond of Green Tea Tapal is offering Green Tea in different

packing. However we have noted that the brands Mezban Dust

& Chenak Dust & Safari are not available in Lahore so they are

supposed to be available here in Lahore and in like areas where

these brands may well be effective, these brands could well

compete Karak Chai, moreover I would just say that if these

brands were not introduced in the above-mentioned areas, then

company would be losing its sales. The point to be noted as to

distribution is that they should also used Motorcycle Riksha in

distributional operations, however they have purchased Trucks,

else they would hire vehicles which was in convenient. In city

market’s Yellow Label and Supreme are also using Motorcycle

Riksha, so these motor Cycle Riksha’s are convenient to enter in

relatively small streets. The distribution network needs to be

more extended; Tapal should hire potential distributors in

several other parts of the country so that their product will

reach to every corner of this country.

Price:

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Price would remain same because it’s an appropriate as

compared to Lipton and other established tea brands.

Promotion:

On Television if we see the ad of Yellow Label or Supreme,

that would be really attractive, but on the other hand Tapal’s ad

is not so. As far as promotion is concerned the ads should be

such that, that could arrest the attention of the public. So Tapal

should endorsed be renowned personalities of the show

business. Moreover in ads they should mention that they are

offering different brands according to the taste and pocket of the

customer.

CONCLUSION

After all the activities and effort which we have done to

complete this project and after studying and analysis of the

questionnaire we come to the conclusion that Tapal is brand that

has many varieties in packaging and tastes, Tapal is a brand

which target more segments from lower level to Upper level. It

is the only brand which gives Round Tea Bags. From this

analyses we analyze that user of Tapal tea are lies in both from

lower level income to upper level income.

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However the other main players’ of the tea industry also

have some features with them that can be draw backs for the

Tapal. Lipton targets the elite class. The segment of Lipton is

limited than Tapal. The mostly tea used in office is Lipton tea.

The advertisement of Lipton is better than the Tapal. Brooke

Bond is also the company of Unilever .They target Lower level

area or the user who are living in urban area. They also

introduce the scheme to get winning prizes of Cash, like Tapal.

The segment which Lipton didn’t cover or didn’t target, the

other product of Unilever Co (Brooke Bond) targeted that

segment.

As the Vital is the new product entered in the market so it

takes time to say something about Vital whether this product

become successful or it became also treated as failure as the

Brand Tetley become Fail.