Marketing ResearchFinal Term Report

Wahaj Hussain

Marketing Mix (4p’s)

Product Price

Place Promotion

The marketing mix principles are controllable variableswhich have to be carefully managed and must meet the needs of the defined target group. All elements of the mix areLinked and must support each other.

Product

Product Decisions

Branding Quality Features

Benefits offered

We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end user, hence the saying ‘Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’ (P.Tailor 7/00)

Pricing

Pricing Strategies

Penetration

Skimming

Competition

Product Line

Bundle

Psychological

Pricing is the only mix which generates a turnover for the organisation. The remaining 3p’s are the variable cost for the organisation. It costs to produce and design a product, it costs to distribute a product and costs to promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and demand relationship.

Place

Manufacturer

Consumer

Direct Distribution Indirect Distribution

Manufacturer

Retailer

Consumer

Promotion

Promotional Mix

Advertising

Public Relations

Sales Promotion

Personal Selling

DirectMail

Internet/E-commerce

A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional mix can consist of:

PRODUCT

The Coreo Tea Beverage

The Actual Product

o Packaging and labeling: See the pictureo Branding: red color, aspect of refreshing, hard pack and soft pack both.o Trade name: Tapal Danedar, a TAPAL producto Brand personality Freshness, Healthy, Innovative, etc.o Brand equity: Tapal Danedar provides a quality, consistent, innovative and accessible tea reputation.

   

PRICETapal follows high-medium price strategy in which it offers high quality tea at reasonable prices. Tapal also follows a Going Rate Pricing strategy, in which it bases its price largely on competitors’ price that is Unilever. Unilever being the market leader always sets the price, and then Tapal accordingly allocates its prices, always lower than that of Unilever. Tea prices have fallen over the years which are because of reduced import duties and costs. Besides taking the competition into account, Tapal does cost plus pricing

Tapal Tea 100 gm 200 gm 1000 gm

Tapal Danedar Rs 52/- Rs 99/- Rs 470/-

Tapal Family Mixture Rs 50/- Rs 95/- Rs 440/-

Competitor Price 100 gm 200 gm 1000 gm

Lipton Rs 57/- Rs 105/- Rs 530/-

Supereme Rs 52/- Rs 99/- Rs 450/-

PRICE COMPARISION

PLACEIn the beginning the company sole aim was to capture the tea market of Karachi, as they were already in tea business here, only and then strategically build there network to other cities of Pakistan.Now Tapal has a distribution network spread across Pakistan, from Karachi to Khyber with over 410 distributors, Extensive training programs are provided for the devoted sales personnel. The popularity of its fine brands is unabated, making it the No.1 national tea company in Pakistan.

Company

Distributor

Whole sellers Retailers

Universities Restaurants/ Institutions

Offices House holds

END USERS /APPLICATIONS OF PRODUCTS

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:

• Karachi 14%• Lahore 34%• Islamabad 18%• Sukkur 22%• Hyderabad 12%

Tapal caters to its customers by providing Tapal Danedar and Family Mistures to more than 140,000 outlets in Pakistan, which include superstores, department stores, general stores, medical stores, paan walas, grocery stores, merchants, etc. Grocery stores and merchants together provide 80% volume of the tea sales.

PROMOTION

Danedar performance

11,800,000

12,000,000

12,200,000

12,400,000

12,600,000

12,800,000

13,000,000

13,200,000

13,400,000

13,600,000

Series1 12,479,111 12,344,994 13,098,342 13,376,790

05-06 06-07 07-08 08-09

Major Activities 2008-2009

Launch of Danedar Hard Pack

• We transformed our Soft Pack to Hard Pack with the use of the following communication platforms

• Sales Briefing Sessions• Pack Revealing Ceremony• Press Conference• Press Advertisement• Tactical TVC Airing • Radio Commercial Airing• Bill Board Advertisement• Shop Signages• Instore Branding

Consumer Promotion on Hard Pack

• A CP was offered in Ramadan to facilitate the transformation from Soft Pack to Hard Pack

• The CP was put forward with the following support

– Tactical TVC Airing – Radio Commercial Airing– POS Support– Bill Board Advertisement

Launch of Danedar’s New Thematic

• Thematic campaign was also launched with complete ATL and BTL support

• The TVC was aired on

– GEO Entertainment – GEO News– HUM TV– ARY Digital– ATV– Express News– KTN– APNA

Launch of Danedar’s New Thematic

• The campaign also became part of “Weekly and Monthly Magazines”

• The commercial was also aired on different radio stations such as

– FM 107– FM 106.2– FM 103– FM 105– Power 91– Power 99

Launch of Danedar’s New Thematic

• Bill Boards of the new thematic had been placed all across. Following were the cities covered

– Karachi– Lahore– Rawalpindi– Multan– Sukkur– Gujranwala– Faisalabad– Hyderabad

Consumer Promotion on Danedar Tea Bags

• A CP was offered in the month of March which ran nationally across all channels

• A “Glass Mug” was offered free with every box of DD TB 200g

• The CP was put forward with the following support

– POS material– Radio Commercial– Mobile Backlighted Vans

Consumer Promotion on Jar

• A “price off” CP ran nationally to arrest the decline in Jar’s sales

• Rs. 10 off was offered on every jar

• The CP was supported through posters

Demonstration Activity

• On ground demo activity for Danedar began from February 09

• Objectives

– Awareness generation– Trail amongst non users of the brand– To have direct consumer contact

• Mechanics

– A kiosk was to be placed at a prominent place with Danedar Umbrellas and banners installed all across the streets

– 2 female promoters announced the activity in the neighborhood and handed over leaflets talking about the activity

– Housewives were invited at the activity

Major Activities till July to Dec 2009

• Joint Promotion DD 12 & 25 Gms with Meezan Oil in July

• DD Consumer Promotion (Sindh Only) in July August 2009

• Danedar 1000 gms pouch with Free Ice Tea Sachets in Ramzaan on 200 tons and achieved it 100%.

• DD 100 and 200 grams incentive trade level activity in October 2009

• We managed to achieve a total sales of 913 tons in two months in these two SKUs.

ATL

• Tapal Danedar Hardpack TVC was aired from 24th Nov to 6th Dec 2009.

• Sponsorship of Love Aaj Kal at Cineplex Karachi in July 09

• Sehri and Iftari transmission branding on APNA TV

• CCTV Advertising in all airports across the country.

Major activities Jan 2010 onwards

Danedar Attack Plan• The focused town attack plan will start in

the Month of MarchWe will storm the town with a two pronged activity that will activate the trade as well as the consumer.

• On the consumer level, we will conduct Demo’s in Mohallahs of selected towns.

• On the trade level, we will conduct an interceptor and converter activity.

• There will be a total of 19 towns that will be covered in this activity.

200 gms with Free Ice tea can

• To stablize our sales and increase shelf takeoff, we have planned a CP on the Danedar 200 gms SKU.

• Planned for the End of March 2010• We will offer a Free Ice tea can with the

purchase of 2 DD 200 packs.• The unit will be packed as one, offered for

Rs. 198/-, where the consumer saves Rs. 30.

• This promotion will be supported by POS and hoardings, and we can also use the radio medium for selected focused towns.

Teabag with Mug CP

• Strengthen the demand side of Danedar Tea Bags / boost offtake of the SKU

• Generate trial amongst non users of the brand. Convert competition in the same category

• Increase forward stock and stock depth within shops

• This activity will start from the 20th of Feb 2010.

• Communication tools will include POS, Radio, Hoardings, and ATL communication.

ATL

• Thematic airing from Jan 25th to Feb 15th.

• Teabag ad airing from Feb 25th to Mar 12th

• Thematic release of 2nd film Tapal (tentative)

• Danedar Thematic from End March for 20 days

Thank you…