Submitted By: Submitted To:

KAUSAR AZAM 20181-23848 MS. AMBREEN BASHIR

ALINA KHAN

HASSAN QURESHI 20181-23832

RAHEEL SIDDIQUE 20181-23785

AFZAL SIDDIQUE

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

UMAIR ALI

Acknowledgement

All the acclamations to Allah, who has empowered and enabled us to accomplish
the task successfully. First and foremost we are grateful to Almighty Allah and
express our humble gratitude to all those who gave us the possibility to complete
this work.

We would like to thank our respected instructor “Ms. AMBREEN BASHIR” for
her valuable teaching and guidance. We remain deeply appreciative of the hard
work put in by teacher, the semester learning has been instrumental in coming up
with this project report.

And last but not the least our team efforts, support, cooperation and
encouragement showed by each members in the group with each other.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 LETTER OF TRANSMITTAL

September 1, 2020

AMBREEN BASHIR
Institute of Business Management

Subject: Letterof Transmittal

Dear Ma’am,

With due respect we, the students of MBA Regular Evening (3Y)
batch, have reported on “MARKETING STRATEGIES AND VALUE
INNOVATION” which we have performed on brand “TAPAL TEA”

Though we are in learning curve, this report has enabled us to gain

insight of core fact of ‘Marketing Strategies And Value Innovation
Process. It has been a challenging and interesting experience. Thank
you for your supportive consideration for formulating an idea. Without
your inspiration this report would have been an incomplete one.

In last, I would be thankful once again if you please give your

judicious advice on effort.

Yours sincerely,
KAUSAR AZAM

ALINA KHAN

HASSAN QURESHI

RAHEEL SIDDIQUE

AFZAL SIDDIQUE

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

UMAIR ALI

Table of Contents
Acknowledgment
Letter Of Transmittal
1. Executive Summary
2. Literature Review
3. Industry Overview 4
3.1. Industry background
3.2. Organizational unit 4
3.3. Company background 4
3.3.1. Mission/Vision and Objectives 4
3.3.2. Corporate Organization 5
3.4. Marketing and sales of Organization
3.5. Distribution and Channel Goods Flow 6
4. Value Proposition
3.1 Value Proposition

3.2 Profit Proposition

3.3 People Proposition

5. The Value Innovation Process 6

5.1. Visual Awakening
4.1.1 AS IS Strategy Canvas

5.2. Visual Exploration

4.2.1 Pain Points of Customers

4.2.2 Buyer Utility Map

5.3. Three Tiers of Non-customers

4.3.1 Tier 1: Soon to be

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 4.3.2 Tier 2: Refusing

4.3.2 Tier 3: Unexplored

5.4. Six Path Frameworks

5.4.1. Look Across Alternative Industry 13
5.4.2. Look Across Strategic Group 14
5.4.3. Look Across Buyer Groups 14
5.4.4. Look Across Complementary Products and Service Offerings 14
5.4.5. Look Across Emotional & Functional Orientation of Industry
5.4.6. Look Across Time
5.5. ERRC Grid 7
6. Visual Strategy Fair
5.1 TOO BE Strategy Canvas 8

7. Visual Communication 9
7.1. Blue Ocean Strategy
7.1.1. Exceptional Utility
7.1.2. Strategically Price
7.1.3. Cost Structure
7.1.4. Adoption hurdle
8. Gap Analysis
9. Recommendations

Research Results 16
Research Questionnaire 18
References 20

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

EXECUTIVE SUMMARY:

The purpose of undertaking this project is to apply the skills and techniques that we
have learnt in our MBA course “Marketing Strategies and Value Innovation” to a
business organization that we have selected. Business students must understand the
universality of management and its importance in all types and sizes of
organizations therefore, an in depth process of understanding marketing strategies
and value innovation process of a successful organization will be carried out in this
project and suggestions will be made for improvement.

We were required to choose a company and analyze all its activities in detail so we
chose Tapal Tea. Tapal had always ensured its landmark in quality standards and
because of this factor customer value and standards had proved its ultimate goal of
customer satisfaction. Today the market share of Tapal have reached the top even in
this economic crunch, but on to becoming a leader the company should provoke to
raise the bar on a continual basis and to address key success factors, only through
mitigating the key issues. In order to achieve the objective of this report we had to
rely on our own analytical skills as well the information we received from the
Tapal.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

.1 Industry Background

Tea is very popular drink in our sub-continent and the history is very old as well.
After the British came in our sub-continent and introduce tea, the drink got the fame
and popular among the entire sub-continent in a very short span of time. Since, the
people from Britain were very sharp and they knew how to sell their products, they
raised the slogan to promote their tea as “it refreshes and in summers, and it makes
warmth in winter season”.

However, with the passage of time, the colonials made improvement in quality and
taste becomes better and better. Thomas Lipton, the man who introduced such an
aromatic and soothing tea leaves, which a common man could also afford to have it,
hence, Lipton is the evidence and the major reason as success and become one of
the finest brands who offer great taste in the tea market.

Currently, there are two types of tea are available in our common markets, 1)
Branded tea 2) Unbranded tea. Since, we have two types of tea so we have also
have two types of tea importers, also, from same countries or regions. Importers
who used to import tea in bulk volume sell tea in loose bags to retailers, while
importers of branded tea also used to import in bulk form to sell as branded tea.

In our country, Unilever dominates already as 54% of the total market share of our
entire tea industry. While, Tapal considers to be the most furious rival and
possesses the 28% market share of the entire tea industry. Also, there are some
other rivals who invaded few years back such as Alpha tea, Kohinoor tea, Vital tea
and Tetly who owns rest of the entire market share of our tea industry.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Industry Growth

The tea industry of our country is rising gradually and said to be growing with our
population rate parallel as consumption of tea by per capita ratio is not increasing
i.e 1Kg. Also, exporters from Sri Lanka and India are willing to negotiate with
Government of Pakistan to liberalize and promote tea import facility as Pakistani
market seems pretty attractive to overseas exporters as Tata tea (a subsidiary of
Tata Group of Industries India) already enetered through a joint venture with
Lakson Group to launch their co-owned brand name Tetly tea. These developments
showed a positive sign and might be proved as a vital for our tea industry of
Pakistan.

PESTEL Analysis

Political Factors:

Today, industries are heavily relying on government interventions and political

factors as these factors have played a vital role in inclining and declining of any
business or industry. The political forces have a significant influence upon the
regulations and framework of the entire business industry, and other factors such as
power of spending as consumers.

Currently, the political stability of our country is uncertain, and investors are
reluctant to invest in our country. However, for tea industry specifically, it is said
that WTO and other trade policies have welcome with open arms to facilitate of
import of raw materials.

Quota System: This needs to be considered that a specific amount of quota should
be fixed on account of tea import out of total imports. The development would
result in as every player is provided with specific chunk on import and manufacture
of the tea, hence, it would be perceived as a well regulated working industry.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Relations with Tea Producing Countries: The relations between the countries that
produce large amount of tea and our country play an important role as huge chunk
of the tea import from African country Kenya; however, Pakistan is now having
trade with India as well.

Economic factors:

The economic factor directly influences and plays an important role in the rapid
development of any industry. Our economy is mainly relying on our industries like
chemical and polymers, agriculture, textile and apparels, food processing and other
small medium enterprises.

However, rise and fall due to inflation is the huge threat to any country’s economy.
A higher inflation rate can badly damage the economic operations of the country. It
is most important that economic policies should be designed with the consensus of
the political and industrial force of the country.

Currently,

Social factors:

These factors can also influence the organizations and are vary from region to
region. Such factors need to be considered too when making policies or decisions.
Since, tea is considered to be the most essential and influential part of our Indo-Pak
culture, it is said that it must be served at every events in all our family gatherings
and functions.

Now days, environment at our workplace is getting more intense and stressful, and
to boost people’s level of energy, they demand change and different variants of
refreshment drinks.

This creates an increase the demand of tea at workplace, though this not only
considers the source of energy or available to the people at workplace whenever
they needed but also required to served them twice as daily at least, in order to
maintain their mental level.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Also, expansion through media channels, the growing advertising industry gave a
boost and massive exposure in relation to the promotion of all brands, hence, social
factors have a positively huge impact on changing conventional mindset and affects
the whole industry. Moreover, upon the usage, tea is the only drink which has a
highly acceptable rate across all classes, socially.

Technological factors:

The technological factors are also important to get the advantage over rivals and
competitors. It helps organizations to minimize the human efforts, cost, time and of
course achieving the economies of the scale as well. When you opt or equipped
with better systems and resources, your performance is being gauged on next level,
and you will also be able to develop new products and variants, even new segments.

Tea market players like Unilever and Tapal are already able to produce high quality
tea and they achieved it with help of state of the art of systems and equipment
facility.

SWOT ANALYSIS

The SWOT analysis gives you the direction to think and plan strategically and
makes you able to analyze your strengths, gauge your weaknesses, opportunities
and threats are associated with your business or industry. Strength helps you to
achieve your goals while weakness considers as hurdle in your way towards
achieving your objective. With the help of all aspects of SWOT analysis, an
organization can perform outclass with the strengths, can mitigate their weaknesses,
seeking opportunities and avoid maximum their threats. The swot analysis of Tapal
is as follows:

Strengths:

Tapal’s strength is innovation; as they believe in frequently to innovate with ideas

and things to achieve consumer’s attention and value as they took advantage to be
the first movers who introduced soft packaging and round tea-bags in Pakistan,

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

also, they introduced Green tea in Jasmine flavor. Since, they have a strong research
& development department; they have a strong brand image in local target market,
hence, Tapal is now become biggest selling brand of the Karachi.

Weakness:

Weakness may cause some serious damages to any brand or image of the
organization. The major weakness of the Tapal is that the company is bound to
import their various products from different regions of the world which leads to
high cost, eventually. Also, tight quality processes and control procedures resulting
Tapal’s increase in cost.

Moreover, one of the major demerits of this procedure is, it consumes a lot of time
and causes unsatisfactory results in connection with suppliers mostly. Since,
Tapal’s product portfolio is far better than others, but they are still unable to
wipeout those rivals who are used to sell unbranded tea. i.e loose tea sellers.
Another weakness of Tapal is they are not positioning in right direction of their
brand name safari Kenya tea.

Opportunities:

The major opportunity that Tapal should seek that they need to analyze the market
growth of their tea-bag brand, as the usage of the tea-bag is far convenient. Usually,
people in Pakistan loves the tea with strong taste and perfect flavor, hence, in order
to increase sales and grab the large market share, Tapal should revamp their
strategy and focus on bring good quality and great taste strong taste to gain
customers attraction. Also, tapping audience who loves green tea because this can
be their biggest opportunity if they are able to gain their audience attraction as now
days, green tea is consuming in larger quantity and recommending by all health
experts, nutritionist, and dietitian, hence, opportunity to increase in sales volume
and gain massive chunk of customers as well.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Threats:

Unilever is the biggest and most competitive rival, and probably the a massive
threat to Tapal tea. Due to their massive promotions and campaigns, it is getting
more difficult for Tapal to standout as they haven’t spend as much as Unilever
spends on their promotional and marketing expenses. Since, Lipton has their history
of making their brand as world renowned brand today, and this gives more stability
and strong point to stay in market, but Tapal has no such competitive advantage.

Organizational Unit
Tapal Tea (Pvt.) Ltd has a flat organizational Unit which indicates that employees are more engaged in
the decision-making process. The chairman of the company, Mr. Adam Ali Tapal is only advised on
matters which pertain to the core direction of the company. The CEO, Mr. Samar Hayat along with the
fourth generation of the Tapal family, Ms. MehvishTapal and Mr. KumailTapal has taken on the
responsibility to take the company to a new horizon. From a perspective of organizational Unit, Tapal
Tea Pvt. Ltd. promotes flexible working environment along with mutual trust and openness between
employee and employer.Employees are given an opting for flexible working hours to maintain a work-
life balance meeting. Every employee is allowed for expression of opinions, suggestions and constructive
criticism with the code of conduct and subject to organization’s policy.There is very standard policy to
maintain diversification of the workforce.Networking and team building opportunities could be found at
Tapal Tea Pvt. Ltd.Tapal Tea Pvt. Ltd. provides opportunities for career advancement, development and
training to the internal stakeholders.Tapal Tea Pvt. Ltd. has an open-door policy of communication.
Organizational Unit is structured as below.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

MISSION STATEMENT

“To satisfy our stakeholders and as a guiding principle to our business be a

benchmark for a quality, creativity and ethical values”

VISSION STATEMENT

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

“Achieve leadership in all categories of our core business and diversify in areas
which complement the core business”

VALUE

TRUST

All our practices take root in trust, integrity, and commitment, none of which we
will compromise.

QUALITY

We strive to excel in all our undertakings, and deliver excellence to our consumers
too.

CREATIVITY

We encourage lateral thinking, and are receptive to fresh concepts.

INNOVATION

We promote the entrepreneurial spirit, and believe the key to progress is in boldly
embracing change and fearlessly introducing novel concepts.

LEADERSHIP

Not only are we determined to be the best in our industry, we support each
individual at Tapal in their journey to excellence too.

UNITY

We pursue a shared vision together, unifying and energizing all stakeholders.

Marketing and Sales Organization

In this competitive era, every organization need marketing and sales department indeed. Without
having marketing and sales department an organization is not able to know what its customer wants, do
our customer trust on our products or not, do our customer replied to us with compliment or complaint
and many other things that an organization required to know about that. Marketing and sales
department lead to an organization to answer these queries. Marketing and sales department assists

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

organization to engage with the customer effectively. An organization’s reputation is attached with the
marketing and sales department. Every organization need to maintain healthy relationship with
customer that marketing and sales department do well. How could a Company inform customers about
their new products? Marketing and sales department make it easy for the organization.

Tapal Tea Pvt. Ltd. has successfully segmented the market into different parts depicting different needs
and desires of the customer based. Tapal Tea Pvt. Ltd. has not just segmented the market on a
geographic segment. but also psychographic, demographicand behavioral aspects were also considered
while segmenting. Tapal Tea Pvt. Ltd. has segmented its products perfectly. Many brands of Tapal Tea
Pvt. Ltd. currently remain well defined segments and clearly cater to the nature and extend of diverse
buyer’s needs and desires in anindustry. Since it properly addresses to few tastes and preferences of
customersrelation to diverse lifestyle, Tapal Tea Pvt. Ltd. is primary selection of tea lovers across the
nation.

Market Segmentation of Tapal Tea Pvt. Ltd.

Geographic Segmentation:
Geographic segmentation is appropriate as the taste changes all over the Country i.e., Pakistan. There
arefewareas where strong tea is loved, whereas some regions prefer to take less strong tea. Tapal has
created and structed its geographic segmentation in the following fashion.

Behavioral segmentation
Behavioral segmentationpays center of attention on segregating the market into groups basis on their
attitude towards the products, knowledge of the product,response to product and usage of the product.
Tapal Tea Pvt. Ltd. also account for the following elements into the equation before shortlisting its
target market.

Behavioral Segmentation Customers

Occasions Ritual, meeting, social gathering, vacation, season

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 variation.
User status Potential users, non-users and hardcore users
Readiness stage Browsing / intending to buy / Unaware
Attitude towards product Positive/Negative/Indifferent/Hostile/Enthusiastic
Decision Roles Initiator, influencer, decider, buyer, and user
Loyalty Status Hard-core loyal,split loyal, Shifting loyal, switchers

Demographic Segmentation
It distributes the market on the basis of age, generation, life cycle stage, nationality, number of family
members,religion and occupation etc. that could assistTapal Tea Pvt. Ltd. in narrowing down which
particular piece of the pie looks most profitable to be invested. Tapal Tea Pvt. Ltd.’s demographic
segmentation is appendix below:

Demographic Segmentation Customers

Age Youth, Middle aged, Retired
Gender Male or female or both
Number of Family Members Small family or cohesion family
Occupation Labor, businessman, entrepreneurs, self-
employed, student, farmer, etc
Religion Muslims, Hindus and Christians, etc
Nationality Pakistani / Foreigners

Psychographic Segmentation
Psychographic Segmentation emphasizes on internally traits of the customers to obtain a deeply
understanding into the mindset of the consumers.

Psychographic Segmentation Customers

Social Class lower, middle, middle-upper and upper-upper
Lifestyle Trendy, hygienic, approachingdifferentiatingTapal
Tea from others, personal belongings, Patriotism,
Cultural plus heritage values and pride.
Personality characteristics Extrovert, introvert, lively and eccentric people.

Positioning
Brand positioning is about to how the consumer thinks about the products in their mind and how well
they can associate themselves with it. Tapal as well as its other competitors have positioned themselves
in a very unique and profound manner. Initially, Tapal focused on lower- and middle-class customer
segment which imprinted a low-class brand image in consumer’s mindset, however, now they fully
materialized in all segments depicting quality, consistency and taste.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Unlike its competitors, Tapal has managed to create an altogether different image with its each brand.
Tapal, through media and other mediums, has promoted ideas and beliefs which are paramount to our
country highlighting Tapal as a patriotic company with ingrained national beliefs. Their marketing
strategies are such profound and interactive that over the years, it has managed to conquer the minds
of its consumers and have turned them into a hardcore user of at least one of its brands. Moreover, they
have not only understood the sensitivity of tea that surrounds our culture, but they have managed to
exploit it through building a linkage between their brand and our indulgence of drinking tea.

Product Positioning

TapalFamily Mixture Promotes Solidarity of the family union & bonds

TapalTezdum Promoting courage and pride

First choice of Tea connoisseurs across the country / All-purpose

TapalDanedar
quality brand

TapalChenak Promoting strong cultural values for people of Tharparkar

TapalMezban Promoting hospitality & togetherness

Tapal’s Green Tea Promoting heath & livelihood

Promotes strong sense of relaxation, warmth and soothing effect

TapalGulbahar Green Tea
on the body

TapalDanedar Instant Tea Using brand equity of TapalDandedar, promises same great
with Elaichi taste, color and aroma

Apart from creating value propositions in the customer mindset through its various product offerings,
Tapal as a whole is also seen as an innovator and market leader since they were the pioneer in
introducing soft packs, first in introducing metal-free tea bags, pioneer in developing an exclusively new
blend and category – mixture of dust and leaf which goes by name Tapal Family Mixture and also the
first tea company to adhere to the quality standards by being ISO certified. Thus, positioning itself as an
exquisite quality devoted brand.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Targeting
Tapal Tea Pvt.Ltd. in its startup year was targeting only one area of Karachi which was Jodia Bazar
wherein providing the needs of middle class and lower middle class in its neighborhood. However, once
their brand of tea became a bright and success, it spread out it wings to many retailers across the
Karachi.

Targeting contributes a vital role in successfully launching of goods and developing its marketing
strategies. Tapal has always been looking out to provide people coming from all backgrounds. The
products it has launched thus far depicts its target audience very clearly.

Product Target Market

Targeted for Joint Family system, mostly targeting the

TapalFamily Mixture
homemakers of the family.

Targeted to segment who likes a strong cup of tea, promoting

TapalTezdum
pride, courage and bravery.

Targeted for urban people, upper and middle-class age ranging

TapalDanedar
from 18 years to 45 years.

Targeted especially for Tharparkar district of Sindh, promoting

TapalChenak
cultural values and lower &middle class

Targeted mostly for other rural areas of Sindh region, upper &
TapalMezban
middle class.

Youth centric, health conscious individuals, office workers who

Tapal’s Green Tea
used to sit in a chair.

Targeted for Northern market, substitute for sabzchai,

TapalGulbahar Green Tea
qahwaand somewhat kashmiri Chai

TapalDanedar Instant Tea Targeted for Urban working population of major

with Elaichi cities,convenience factor, upper and middle class, travelers etc.

Differentiation
Tapal Tea Pvt. Ltd. categorize product differentiation can be on the bases of the following elements.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Differentiation based on design
is also adopted by Tapal by connecting to their different consumer segments on an emotional level
through their various advertisements. Tapal’s behavioral segmentation and exploiting socio-cultural
values have created a competitive edge for them. Tapal has on occasion used various Pakistani
celebrities to convey their message across which have resulted in even a greater response than
anticipated.

Form
TapalDanedar, the most running brand of the House of Tapal, comes in different sizes, categories and
price range competing with Liptons’s Yellow label and Brookes Bond. Moreover, Tapal was the pioneer
in introducing soft packs and metal free tea bags in the tea industry.

Features
Tapal has focused their business on tea only, so they have better knowledge of tea blending than its
competitors. They have invented mixture of leaf and dust (family mixture) and Danedar, both are doing
phenomenally well in the tea market. Unilever cannot match their capability of matching different
blends & innovating new types of tea. This capability gives Tapal competitive edge to deliver value to
customers in ways rivals cannot.

Customization
Tapal has introduced a separate brand, TapalGulbahar Green Tea for the people of Kashmir where none
existed in the market, making it the only company in Pakistan catering to their specific needs and wants.

Conformance Quality
Tapal Tea has managed to become the first Pakistani tea company to have received ISO-9001
certification which is a recognition of adhering to the highest international quality standards. Moreover,
in the year 2000, they earned ISO9001: 2000 certification, making it one of the first few firms in the
world to attain this landmark. Apart from quality assurance, the ISO9001: 2000 certification includes
requirements for environment improvement, concepts of TQM (continuous improvement) with major
emphasis on consumer requirements and satisfaction.

Durability & Reliability

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Tapal Tea is as old as the history of this country and has since been competing with an international
brand such as Lipton. Tapal has not only survived in the market but has become a strong market
contender. This shows the utmost durability.

Performance Quality
Tapal’s socio-cultural approach and its deep-seated values set them apart from other market
contenders. The company’s consistency and persistency in satisfying its various segments has made
them a national brand. They have faced failure head on and have risen from the ashes with a vengeance
which represents courage and resilience. Their motto since the very beginning has been to, “Never
compromise on quality” which they have proven time and time again. This quality assurance has
resulted in a board spectrum consumer satisfaction and unwavering brand loyalty.

Differentiation based on service

is also adopted by Tapal as they own majority of their distribution network. They do not have third-party
distribution system as Unilever does. This gives them a competitive edge as they can achieve faster
delivery to the retailers & distributors, earn more shelf space and greater availability than its
competitors.

Pricing
Tapal Tea may be the trend setter in the industry, however, in terms of setting prices, it is the follower of
Unilever’s Lipton to some extent. There was a time when Tapal used low cost defender strategy to
penetrate the market which worked for a while but their market share was relatively shrinking so they
adopted value based pricing which meant basing their prices on the effective value to consumers
relative to other products. Flagship brands like TapalDanedar were priced somewhat higher, Tapal
Family Mixture were priced somewhat lower, TapalTezdum were priced significantly lower than their
competitors. This value-based pricing was devised to maximize its current market share by catering to all
segments of customers ranging from quality conscious to price sensitive customers.The aspects Tapal
considers whilst setting prices are that Import duty which currently stands at 10% on Kenyan tea import.
Kenyan tea is superior in taste in comparison to duty free tea from Bangladesh &Srilanka.Competitors
pricing strategies, Overall incurred cost on manufacturing, marketing and distribution, Dollar/Rupee
parity as it effects the import bill, thereby, effecting cost of production, Increase in Inflation rate as it
reduces the bargaining power of buyers and they become more sensitive towards pricing.

Distribution and channels goods flow

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

The distribution objective of Tapal is to maximize its market coverage. To accomplish this Tapal has a
wide distribution network of 410 distributors across Pakistan. Tapal has wider distribution coverage in
the South whereas Unilever has better distribution in the North. Therefore, their main objective is to
increase their sales in the North. It ensures that it places its tea in the same outlets as its competitors in
order to maximize availability.

Tapal deals only with distributors on contract basis with no other intermediaries involved. They do not
extend credits to their primary customers and all their sales are mainly cash based. The contract
comprises of a specification of a complete volume of the market, Tapal’s share in the market, the profit
margin of the distributor, the sales that will be made by the distributor, as well as the complete route
plan of the distribution network. Tapal chooses their distributors after analysing their complete financial
background and Public Relations. They provide the distributors with a detailed description of the
distribution network; all the costs and expenses involved and when the distributor agrees the contract is
signed. This contract involves the condition that the distributor has to be brand loyal, pro-active and
cannot deal with other tea companies otherwise the contract will be terminated. The contract includes a
clause that describes its termination process. Either of the two parties: Tapal and the distributor, can
terminate the contract on one month basis

CHANNELS OF DISTRIBUTION

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Distribution at Tapal Tea

Distribution network of Tapal tea consist on two divisions

South Division: Karachi, Hyderabad &Sukkar

North Division:Raiwind, Multan, Islamabad and Karachi

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Profit Proposition:

Continuous production, TQM, market standing and the low price will leads towards
the more profit proposition of Tapal. They have entered in all competitive product
line in tea.Tapal product categories are also giving them a huge amount of return by
catering the large number of population around the globe. They saved its cost by
not open their own outlets, they start their operation in retail shop in jodia bazaar
but after success they didn’t go for more huge retail outlets. It has come up with an
idea which does not require huge costs in setting up. Obviously more retail outlets
required more cost so they choose to sale out by other retailers instead of own
shops. In turn, it reduces cost of manpower as well as it does not require
professionals to take orders from customers or to do the packaging. Most
importantly they hired mostly sale staff those are not on fixed salary they saved the
salary cost and pay them for their sale. Sales employee’s gets incentives other than
the fixed salary so automatically at the end tapal profit got increase by more sales
efforts by the employees.

People Proposition:

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Tapal believes in consistency and continuous value addition services for its
customers. This model works best when it has people with creative and innovative
mindset. The company does not consider to be hiring the best and most expensive
technical capabilities in people but to be acquiring work force that is creative and
consistent with quality improvements. They do not sit back and do repetitive tasks
rather they always have an eye for service and product enhancement. In order to
achieve this, the company strives to attract people with desire to be best and
innovative in solving people’s problems. Also, people who have an eye for defects
can critically assess the quality of tea and the operations and packaging to deliver
the best tea buying experience to its customers. The employees are valued and
appreciated for their work. They are educated about healthy practices and
cleanliness of environment that is always to be maintained. The importance of
sustainable environment is also communicated to employees in order to observe
right disposable methods and using recyclable material for packaging. Incentives
will be awarded to employees who involve all these practices in their work to keep
them motivated at work.

Value Proposition

Tapal’s multi-brand portfolio, which includes a variety of black and green tea
brands which satisfy the economic constraints of low-, middle- and high-income
consumers.Consistent innovation brings more popularity to tapal family. Tapal
family mixture is also the example of innovation. First time is Pakistan tea industry
tapal introduced the first blend of tea leaf and tea dust. The exceptional blend
combined with the flavor of full leaf tea with the strength of tea dust, making it a
popular household first choice.Tea is not only for refreshment but tea is also a
integral part of Pakistani culture .Tapal add up the values in its products time to
time and at the moment they are working with approx. 9 product categories. Every
of them are catering the specific customers. They added value by segmenting the
culture by income and religions wise also. Tapalchenak are packed to target to the
hindu population by its specific color and taste. TapalTezdum Valued to Punjabi
culture which morally shows the powerful and strong conception about the bravery.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

For northern areas where mostly green tea using as the traditional beverage of the
people. Tapal launched the Gulbahar green tea for northern areas .Tapal
consistently and timely adding the values in the tea segments and retaining its
customers by providing best taste and quality to overall Pakistan by different
products range.

ACTIVITY MAP OF TAPAL TEA

Stro n g
Sym b o l
Vo ic e o f d istrib u tio n
of hom e
c u sto m e r c ha nne l Lo w p ric e s

Pre m iu m
Fa m ily
b la c k Up p e r
Bra n d te a
te a m id d le
Im a g e
c la ss

Re fle c tin g Ava ila b ility

c u ltu re Tim e -
Na tu ra l c h o ic e
in g re d ie n ts
Un iq u e
Stro n g p a c ka g in g
b ra n d in g
Au th e n tic
a nd
Stro n g
tra d itio n a l Pro d u c t lin e ta ste

Tra d itio n a l
Hig h Va rie ty o f
to u c h
Q u a lity ta ste

POSITIONING STATEMENT

“TAPAL TEA PROVIDES PREMIUM BLACK TEA WITH STRONG AUTHENTIC TASTE TO UPPER
MIDDLE FAMILY SEGMENT”

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

In visual awakening process, we conduct survey for determining the key competing factors
providing by the TAPAL TEA and its competitors. We have taken 2competitor for value curve
analysis:

1. LIPTON (Direct Competitor)

Lipton is the leading brand in the world because of Lipton’s vision of Sir Thomas to
provide best quality tea in an exciting and refreshing way to middle and elite class
segment.
2. DHABA TEA (Indirect Competitor)
Another competitor of Tapal Tea is the Dhaba Tea such as Chai Wala, providing
traditional style to people at low price.

KEY COMPETING FACTORS (KCF’S) – TAPAL TEA:

The crucial factor is PRICEwhich demonstrates significant difference in price of Tapal Tea
and its competitors. Tapal Tea provides variety of branded tea at low price where as
Lipton tea is much expensive.
Lipton 1kg packet cost Rs. 600
Tapal 1kg packet cost Rs. 300
Whereas tea at Dhaba has lowest price as compare to Tapal and Lipton Tea Company.
Tapal tea provides high QUALITYtea at affordable price whereas Lipton provides high
quality tea with high prices and Dhaba tea provides low quality and low price.
Tapal Tea has a strong distribution all over the outlets in Pakistan. Their brand is
AVAILABLEin every corner of Pakistan from wholesalers (restaurants and university) to
retailers (shops, offices, supermarkets and house hold).
They are focused on TASTE AND AROMA of tea; they provide distinct flavor and aroma
to provide their consumers a finest tea blend.
Tapal Tea provides VARIETY OF TEAin their product line as they are morefocused
towards product development. They introduce new products into new areas of Pakistan
according to their people tastes and culture. Such as Danedar, Family Mixture, Tezdum,
Mezban, Chenak, Green Tea, Gulbahar and Safari Tea.
They are pioneer of introducing SOFT PACKSof tea and metal free tea bags in the
country.
Through their promotions and marketing, they brand has a positive image of creating
STRONG FAMILY BOND. Tapal family find a unique tea blend named Family Mixture,
representing and promoting a family based culture

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 Another competitive advantage over their competitors is their DESIRED PACKAGING
SIZE of Tapal Tea. Tea is provided in sachets (Rs 3 and Rs 5), Jar (450gm), hard
pack(30gm, 100gm and 200gm) and economy pack(400gm and 1000gm), to make their
product easily accessible to their consumers.
They attain strong position in Pakistan because of their strong, entertaining and
emotional appealed ADVERTISEMENT AND PROMOTIONScampaigns, which reflects its
local market of Pakistan. In 2011, they got award of campaign of the year by PAKISTAN
ADVERTISMENT SOCIETY (PAS)
TAPAL DANEDAR - HAR MIZAAJ SY ASHNA
Unlike Lipton, initially their promotions and marketing activities were not effective,
however now they are emphasizing on advertisement of their product as Tapal give
them competition.
They have introduce a room off experts called Tapal Tea Lab, where core research and
development activities takes place to encourage INNOVATION AND CREATIVITY, which
enable Tapal to provide unique blends of different combinations of tea grades.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 ASIS
6

0
Price Quality Availability Taste and variety Soft Packs Strong Packaging Promotion Innovation
Aroma Family and
Bond Marketing

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

ERRC GRID:
Tapal tea focuses on providing unique and finest blend of tea with new taste and aroma flavor,
without compromising on quality, and according to the different culture and preferences of
people in Pakistan.

Tapal had reduced their prices to make it affordable to urban and rural areas. Quality,
availability, freshness, unique flavors and taste has been raise by Tapal Tea.

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

fi
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MARKETING STRATEGIES AND VALUE INNOVATION - MKT610
Pr i
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Cos
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 TO BE STRTEGY
6

0
Price Quality Availability Taste and Variety Soft Packs Strong Packaging Promotion Innovation
Aroma Family and
Bond Marketing

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

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Sequence of Blue Ocean Strategy:

WHAT EXCEPTIONAL UTILITY TAPAL IS GIVING?

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

  AVAILABILITY
 QUALITY
 UNIQUE VARIETY OF FLAVORS
 DESIRED PACKAGING SIZE OF TEA

HOW TAPAL’S OFFERING IS STRATEGICALLY PRICED?

 LOW PRICE WITH HIGH QUALITY WITH HIGHEST MARKET SHARE

 • GOOD ENOUGH TO ATTRACT SOON TO BE NON-CUSTOMERS

HOW TAPAL MET THE TARGET COST?

 BY ELIMINATING INTERMEDIARIES
 PACKAGING MACHINES

ANY ADOPTION HURDLES?

Gap Analysis
Gap analysis of industry refers that there is a wide range of customers were mostly dissatisfied because
of following factors, therefore entire industry should have special emphasis on following factors and
formulate strategies to reduce Gap’s and to unbridged the customers and the industry.

 Environment
 Parking lot Facility
 Assistance of Customer Support Staff
 Availability of wide range of Products
 Promotional Offers

That is why it is the job of the entire industry to not only rely on red ocean strategy and but also work on
blue ocean strategy as well. As in modern world businesses are changing very rapidly therefore it is the

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

job wise professionals to keep adapting and embracing changes and keep on innovating in order to not
only survive in the market, but to lead with value offered to their customers.

Research Questionnaire
Please read the following statements and rate your experience.

1. Age category

18-25

25-35

35-55

55-70

2. What do you prefer?

Tea

Coffee

Green Tea

3. Which of the tea you are consuming or would like to consume?

Tapal Tea

Lipton

Vital

Dhaba Tea

4. How would you rate these KCFS of Tapal from scale 1 to 5? (1 shows Worst; 5 tells Best)

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 Highly Dissatisfied Neutral Satisfied Highly
dissatis Satisfied
fied
Product Price
Product Quality
Availability
Variety of tea
Soft packs of tea
Strong taste and
aroma
Packaging size
Promotions and
Marketing
innovation

5. Would you rate these KCFS of Lipton from scale 1 to 5? (1 shows Worst; 5 tells Best)

Highly Dissatisfied Neutral Satisfied Highly

dissatis Satisfied
fied
Product Price
Product Quality
Availability
Variety of tea
Soft packs of tea
Strong taste and
aroma

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

Packaging size
Promotions and
Marketing
innovation

6. Would you rate these KCFS of Dhaba Tea from scale 1 to 5? (1 shows Worst; 5 tells Best)

Highly Dissatisfied Neutral Satisfied Highly

dissatis Satisfied
fied
Product Price
Product Quality
Availability
Variety of tea
Soft packs of tea
Strong taste and
aroma
Packaging size
Promotions and
Marketing
innovation

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

 RESEARCH RESULTS:

Age

1%
5%
18-25
25-35
35-55
49% 55-70
45%

REFERENCES:

http://tapaltea.com/all-about-tapal/legacy/

 "Tapal Tea launches Family ki Jeet"https://fp.brecorder.com/2004/12/2004120784399/

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610

  "Tapal's journey to the top"https://aurora.dawn.com/news/1142807

 "Tapal unveils Safari tea"https://fp.brecorder.com/2008/05/20080509735952/

https://tribune.com.pk/story/1007542/digital-milestone-tapal-launches-new-tvc-featuring-fawad-
khan-online-before-releasing-to-national-media

MARKETING STRATEGIES AND VALUE INNOVATION - MKT610