MARKETING RESEARCH

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 ACKNOWLEDGEMENT

Countless thanks to ALLAH Almighty for giving us such extraordinary

abilities and making us privileged enough to take part in such activities and
all respects and regards to Holy Prophet Hazrat Muhammad (PBUH) for
giving us the faith paving us on the right path with the essence of faith in
GOD We would like to thank our teacher MR. OWAIS MUFTI for his
cooperation and help. He fully supported us throughout the class. We
express our heartiest gratitude to him. His cooperation made this project a lot
much easier. We would also like to express our heartiest gratitude to
MR.Waleed khan who helped us in collection of desired data for our report.
We are also thankful MR. KHAWAJA MUSA, MARKETING
MANAGER SERVICES TAPAL TEA PRIVATE LIMITED MR. ASIF
HR MANAGER NORTH TAPAL TEA PRIVATE LIMITED. Loads of
thanks to our parents, who were and are very supportive and cooperative at
all times

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EXECTIVE SUMMARY

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TABLE OF CONTANTS PAGE NO
Mission 5
Vision 5
Objectives 5
Introduction 6
Business scope 7
External Analysis 8
Product Position in There life cycle 9
Product life cycle stage 10
Business Portfolio 10
BCG Matrix 11
ICE TEA 12
Idea of ice tea 13
Background of Tapal ice tea 13
Nutrition facts 14
Opening of ice tea a new chilling product 15
R &D Behind ice tea 15
Tapal ice tea Target Market 16
Ice tea product line 16
Tapal Ice tea Mission 17
Marketing Objective 17
Competitors 17
Market target of Ice Tea industry 18
Swot Analysis 18
Market segmentation 20
Market positioning 20
Pricing strategy 20
Distribution strategy 21
Distribution structure 22
Supply chain 23
Political factor 24
Economical factor 24
inflation 25
Technological Factor 25
Suggestion 26
Reference 28

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 MISSION STATEMENT

To provide a value added service to our customers with quality, reliable, and
world-class service. Customer satisfaction is our number one priority.

VISION STATEMENT

 To provide value and quality to our consumers, our aim is constantly to

provide world class service for our customers, deliver value for our
products and make Tapal a great place to work for our employees. We
aim to have a reputation for innovative thinking in the areas that matter to
our customers
 To become a global brand.
 To be an innovative, marketing and research oriented company.

OBJECTIVES
 To transform our competencies into the best advantage for our clients.
 To offer quality services with integrity, expertise and professionalism to
enhances our client's operation. To offer personalized services according
to the clients need.

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 INTRODUCTION

Tea is one of the most popular drinks in the entire world and the most widely
consumed beverage in South Asia. The demand for tea in Pakistan is very high.
With such a high consumer base, the competition is also very intense. Brands
such as Tapal, Lipton, Brooke Bond and Supreme, being the leading tea makers
not only compete with one another but also face intense competition from loose
tea.
Tapal is a well known name in Pakistan. In 1947, it started business as a Tea
leader and so celebrated its 63th anniversary in 2010. Their first shop was in
Jodia Bazaar.
The journey of Tapal's remarkable success is the combined efforts of three
dynamic generations of the Tapal Family. Tapal started out as a family concern
under the personal supervision of its founder, Adam Ali Tapal. The company
continued to grow under the management of the founder's son, Faizullah A.
Tapal. . Currently it is managed by the founder’s grandson, Aftab F. Tapal who
has continued giving further strength to the foundations 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. He was the first to introduce soft packs in the country. He developed an
entirely new brand and category- Tapal’s Family Mixture (the mixture of tea &
dust). Mr. Aftab Tapal was the first to invent the highly successful brand Dander
Leaf Blend. 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 ISO-9001: 2000 certification, making it one of the first few companies in
the world to achieve this milestone.

In addition to the standard requirements, the ISO-9001: 2000 certification

system includes requirements for environment improvement, concepts of TQM
(continuous improvement) with major emphasis on consumer requirements and
satisfaction.
Tapal’s success has left many astounded. No magic formula however, lies
behind its growth other than hard work, dedication and of course unique blends
and better quality.

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 BUSINESS SCOPE

The Business we are in?

We are in the market of Hot Beverages and specialize in the area of Black Tea.
We desire a high level of customer satisfaction and unflinching brand loyalty
through commitment to quality and constant innovation.

Who are our Customers?

We have a diversified customer base ranging from urban to rural areas including
various institutions. Hence, Tapal’s target market mainly consists of young adults
and adults belonging to high, middle and lower income groups.

EXTERNAL ANALYSIS

A unique combination of high- grown Kenya tea leaves and dust, that gives a refreshing
aroma of leaf and strong taste of dust all together in one cup. Tapal is a family name and
calls attention to tea as an integral part of our lives whether it is day or night or any time
as a source of refresh ness and rejoice ness.

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Following are the products of Tapal:

Tapal Special Teabags Gulahar Green Tea

Family Mixture Danedar Leaf Blend

Jasmine Green Tea Safari Kenya Leaf

Special Round Teabags Tezdum

Tapal ice tea

PRODUCT POSITION IN THEIR LIFE

CYCLE

GREEN TEA

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 BLACK TEA

ICE
TEA Introduction Growth Maturity Decline

Implications
The industry is in the maturity stage, so competing firms in order to gain market
share, constantly innovate and frequently use price-cutting. They also increase
communication channels like advertising and sales promotion to entice brand
switch. Green tea has is in the growth stage and we believe that there is a
potential for growth given that green tea provides health advantage. Thus this
property will attract health conscious people. Ice tea is in its introductory stage, it
was recently test marketed in Karachi which resulted in a successful response in
future it will be coming up with new flavors and has a potential to gain a large
market share as soon it is launched nationally

PRODUCT LIFE CYCLE

STAGES

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 Tea Introductory Growth Maturity Decline

Teabags X

Leaf X

Mixture X

Green X
Tea

Ice Tea X

Tezdum X

BUSINESS PORTFOLIO

We will be using the Boston Consulting Group Approach, which is the BCG
Growth-Share Matrix to analyze the situation at Tapal. This portfolio takes into
account two important dimensions of the market:

BCG MATRIX

 The Market Growth Rate

 The Market Share

Relative Market Share

High

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 Star Question Mark
o Family Mixture o Jasmine Green Tea /
o Mezban Premier Gulbahar Green Tea
o Tapal Danedar o Tezdum
o Ice Tea

Cash Cow Dog

o Chenak Dust o Safari Chai
o Special Teabags

Low

Growth Rate

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 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 sine sis) 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.

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 • 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.

Nutrition Facts

Amount per Serving of 100 ml % Daily Value*

Calories 45 kcal
Total Fat 0g 0%
Sodium 0mg 0%
Total Carb 10g 4%

Sugar 10g 16%

Protein 0g

Vitamin C

* Percent Daily Values are based on a 2,000 calorie diet.

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 OPENING OF TAPAL ICE TEA A
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 BEHIND ICE TEA

 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.

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 Preferences are the corner stone of our success and Tapal Ice Tea is
another milestone.
 We intend to provide our customers with healthy and nutritional
substitutes”.

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 is 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.

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 Tapal ICE TEA 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

COMPETITORS
NESTEA
LIPTON ICE TEA
SUPREME ICE
ARIZONA ICE TEA

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 Market Share of ice Tea
Industry

SWOT analysis of Tapal Ice Tea:

The SWOT analysis classifies the internal aspects of the company as strengths
or weaknesses and the external situational factors as opportunities or threats.
Strengths can serve as a foundation for building a competitive advantage, and
weaknesses may hinder it. By understanding these four aspects of its situation, a
firm can better leverage its strengths, correct its weaknesses, capitalize on
golden opportunities, and deter potentially devastating threats.

Strengths:
Innovative and the high quality products less price. Because of these the
company is able to survive in the market and still earning a good market share
comparing to its competitors. Strong brand name in tea industry.

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 Opportunities:
24% market share of ice tea industry and still those who do not like to take black
tea.
Tapal has its huge market which is increasing as the population is increasing.
New product in the Pakistani market will capture the early adaptors.
Some people leave the tea in summer but ICE TEA will attach them with TAPAL
family.

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 in the beverages industries
especially in the ICE TEA industry.

Most of the customers of TAPAL are still confused that how ice tea can be the
substitute of black tea.

Threats:
One of the major threats that TAPAL ICE TEA has is that how to use the ice tea
due to the illiteracy of the young generation in Pakistan.
Lipton has its ice tea in other countries if they decided to enter in the Pakistani
market so it could be the biggest threats for the TAPAL.

MARKRT SEGMENTATION

PRODUCT AGE OCCUPATIOING LIFE STYLE END USER

ICE TEA 18-35 Students Outgoing Active Restaurants/Cafes

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 Market POSITIONING

PRODUCT PSITIONING
Chill Karoo
Refreshing
ICE TEA
Bubble free

PRICING STRATEGY

TAPAL already in hot beverage differentiate them as a strong taste but with low
price and catering mostly rural areas because rural people mostly use the strong
tea because of the hard work they are doing.
Company pricing strategy is “high quality with less price” which gives a
competitive advantages against the multinational brands in beverages. Pricing
charged for the product is
 330 ml tin pack for 30 rupees
 15 gm sachets for 6 rupees
Other brands charged for the beverages more than the TAPAL ICE TEA for the
same quality level.

DISTRIBUTION STRATEGY

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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 a wider distribution coverage in the South where as Unilever
has better distribution in the North. Therefore, Tapal’s 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. The distribution
coverage of Tapal is as follows:

S.NO AREA PRECENTAGE

1 KARACHI 14
2 LAHORE 34
3 ISLAMABAD 18
4 SUKKKAR 22
5 HYDERABAD 12

Distributors:
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 analyzing 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.

DISTRIBUTION STRUCTURE

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 Company
END USERS
/APPLICATIONS
Interpretation OF PRODUCTS
 The manufacturers sell from their warehouses to their major distributors,
Distributor
which sell directly to wholesalers, who either pass it on to the retailers and
then to the end user or to the end users directly.
 Distributors also sell directly to large retailers and then the product is
passed onto the consumers.
 This distribution trend of the industry is very similar to what Tapal follows.
Tapal also sells directly to OOH (Out of House), which comprise of
educational institutions, companies, travel & hot teashops.
 Tapal’s outlet coverage (2005) was 75% and its market reach (2005)
Whole sellers
was 30%.
Retailers
 In 150mg satche 330ml tin they have .50%

Supply Chain
Universities Restaurants/ Offices House holds
Institutions

Vendor/Supplier Storage Order Process Type/Market

CUSTOMER
FORECAST MANUFACTURIN WAREHOUSING DISTRIBUTION /TRADE
G

R/D industry Inventory Scheduling/timing Feedback

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 POLITICAL FACTORS:

These factors and government interventions can make or break the industry. The
political factors have played a very benign role for the tea industry. The politic al
arena has a huge influence upon the regulations of the businesses, and
spending power of consumers and other businesses. The political environment of
Pakistan is relatively unstable in the current situation. The investors are not
willing to invest in Pakistan. However, WTO and trade policies encourage the
import of raw materials for Tea industry. Tea Import Quota It is an important
consideration. Each year there is a certain quota on tea import in total imports of
Pakistan. Each player is given quota to import and manufacture so one can say
that it is a much regulated industry. Diplomatic Relations The relations with the
tea producing nations and Pakistan play a vital role as large p art of imports
comes from Kenya, but now Pakistan is also importing tea from India. Unstable
Geographic Conditions Pakistan is situated at a very critical and geographically
strategic location. Due to the uncertainty new investors are not ready to invest in
Pakistan.

ECONOMIC FACTORS
Economic conditions of an environment have a direct impact on the development
of any industry. The recent economic recession in the world has had an impact
on Pakistan’s economy as well. Pakistan s economy mainly encompasses
textiles, chemicals, food processing, agriculture and other industries. In 2005, it
was the third fastest growing economy in Asia. Since the beginning of 2008,
Pakistan s economic outlook has taken a dramatic downturn. Security concerns
stemming from the nation s role in the War on Terror have created great
instability and led to a decline in F DI from a height of approximately $8 bn to
$3.5bn for the current fiscal year. Concurrently, the insurgency has forced
massive capital flight from Pakistan to t he Gulf. Combined with high global
commodity prices, the dual impact has shocked Pakistan s economy, with gaping
trade deficits, high inflation and a crash in t he value of the Rupee, which has
fallen from 60-1 USD to over 80-1 USD in a few months. For the first time in
years, it may have to seek external funding as Balance of Payments support.

Inflation:

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 Inflation remains the biggest threat to the economy, jumping to more than 9% in
2005 before easing to 7.9% in 2006. In 2008, following the surge in global petrol
prices inflation in Pakistan has reached as high as 25.0%. The central bank is
pursuing tighter monetary policy while trying to preserve growth. Foreign
exchange reserves are bolstered by steady worker remittances, but a growing
current account deficit - driven by a widening trade gap as import growth out
strips export expansion - could draw down reserves and dampen GDP growth in
the medium term. Social Factors The social and cultural influences on business
vary from country to country. It is very important that such factors are considered.
People are socializing more may it be events or casual visits to friends and
family. Tea has always been an integral part of Pakistani culture and rituals. It is
understood that tea would be present at all events. Changing Trends As work
environment is becoming more stressful; people require different forms of
refreshment and intakes to increase their energy levels. This further increase the
intake of tea at workplaces, tea is not only just available to the employees when
needed but is also served twice a day in order to keep them going. On the other
hand, media expansion, growth of advertising as a separate industry has resulted
in greater exposure of all the brands and masses. Hence social factors and
changing mindsets have positively affected this industry Tea has always been
acceptable i n all social classes because of its usage. Green tea has recently
gained a lot o f popularity due to health reasons and is largely consumed.
Another factor is the emergence of ice tea which is indirectly competing with soft
drinks.

TECHNOLOGICAL FACTORS:
Technology is important to gain an edge over competitors and it drives
globalization. Technology helps companies to reduce cost and achieve
economies of scale. Technology also leads to the development of new products
and sometimes even segments. Tea manufacturers like Unilever and Tapal
already manufacture tea of the highest quality and they achieve it by the state of
the art production facility t hat they have. Lipton has also installed its own plant
tea production.

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 Suggestion for effective Marketing Plan
of Ice Tea
 Promotion of ICE TEA
Ice tea is the new product therefore the Tapal Company have to do more
struggle for its promotion and position in the mind of consumers. As we have
observed the marketing plan of Tapal the advertising complain for the ice tea is
not very effective although it require an effective and most strong advertisement
because it is a new type product in tea and unpopular in Pakistani society. So
our suggestion is that the company should do proper advertising of Ice tea
through both press and electronic media, sponsoring ship, different events,
concerts etc.

In our province the use of ice tea is too less than the other provinces of Pakistan.

 Coupons and prizes:

Company should use press and electronic media to create awareness and
desires among the customer that they have a chance to win price they should
attract the customer by giving them something extra in the quantity of product.

 Extensive Distribution:
They have distribution center at Punjab and sindh due to which profit margin of
product decreases for the local shopkeeper at Khyber Pashton khwa so that they
should try to open a warehouse in our province and do extensive distribution of ice
tea as like Pepsi and coke because ice tea is not available in small stores.

 Free Sampling:
The company should try to visit different universities and colleges to
establish a small stall for promotion of ice tea. They should give free samples of
ice tea to students and young teachers.

 Competitors

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Tapal should read about its competitors through news paper, internet, blog
reading, journals and case study to know what types of problem they can face in
future

 Small packet:
To improve the market share of Tapal ice tea they should focus on creating more
sashes of ice tea in powder form to prevent its expires because it can save time
money and people can be easily attractive towards.

 Meetings:
Weekly and monthly bases meeting should be conducted with the supplier and
dealers to know about the demand of the product so that excessive production
should be stop.

 SBU:
Tapal company should make a separate SBU for ice tea so that company can
focus more on Tapal ice tea to make its ice tea more popular. In this way they
can concentrate more on ice because Ice tea a new product for the organization
and it requires more effort and other promotion to reach to growth stage

 PRODUC TLINE

They should try to increase it product line be creating new flavors’ like Apple,
Orange, banana, cheery, rusbarrey, stawbery.This will not only bring some
creativity. They can do this by using mixture of Apple cherry, banana strawberry.
They can also ask people about what type of flavors they like and also try to note
and at the end of their survey try to do research on those best told to them by the
people and produce them on test bases. In this way they increase their product.

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 REFERENCE:
• Reference was taken from the following

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

• www.tapaltea.com

• www.chillkaro.com

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