TABLE OF CONTENTS

CHAPTER NO 1

INTRODUCTION

INTRODUCTION OF THE TOPIC

INTRODUCTION OF TAPAL

TAPAL DANEDAR

TAPAL FAMILY MIXTURE

TAPAL SAFARI CHAI

MEZBAN PREMIER DUST

CHENAK DUST

TAPAL SPECIAL TEA BAGS

TAPAL JASMINE GREEN TEA

GULBAHAR GREEN TEA

TAPAL ICE TEA (NEW PRODUCT)

PROBLEM STATEMENT

SIGNIFICANCE OF STUDY

DELIMITATIONS

SCOPE

DEFINITION OF TERMS

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CHAPTER NO 2

RESEARCH DESIGN

RESPONDENTS OF THE STUDY

RESEARCH INSTRUMENTS

UNIT OF ANALYSIS

SOURCES OF DATA

TREATMENT OF DATA

CHAPTER NO 3

Literature Review

CHAPTER NO 4

PRESENTATION ANALYSIS

DATA ANALYSIS

CHAPTER NO 5

CLOSING UP

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INTRODUCTION

The super market culture has changed consumer purchase habits and the youth today has ample

choices in front of them, even when compared to 5 years ago. Increasingly they are becoming a

huge market on their own. If we look at the last couple of decades we will see that due to a

change in the behaviors and in the living pattern of customers, many companies have not only

made a move to capture the viable chunk of the market in Pakistan as well as in abroad. When

we talk about Pakistan, we see that in the last few years many companies have launched products

which are not traditionally consumed by our nation. Many factors have contributed in bringing

this change, few of them are; economic situation of the country, education level and occupation.

When Tapal launched its ice tea in May of 2007, the economic condition in the country was

relatively more stable then how it is now; people were earning more and spending more. Apart

from that, Today’s generation is considerably more educated than the previous generations and

this trend is occurring as a result of affluence & changing social values. The relative importance

of the educated segment of consumers will continue to expand, and keeping in mind their desire

for new products made this segment more attractive for Tapal. Similarly, the occupation status

has also played an important role in the changing behavior of consumers, as in these days there

are more white-collar workers with relatively more to spend than ever before. These are the few

observations on which Tapal had been working and thus the introduction of a new product such

as Ice Tea in order to avail the opportunity present in the market.

INTRODUCTION OF THE TOPIC

The topic of my thesis is “Identifying the challenges faced by Tapal in marketing its ice tea &

developing strategies to improve the situation”.

Keeping all the above mentioned factors in mind which are responsible for the change in the

consumtion behavior, Tapal introduced its Flavoured ice-tea. Internationally ice tea is available

in many different flavors and is offered by many different companies but in Pakistan at this

current status it is only offered by two giant shareholders in the tea making industry which are

Tapal and Lipton. In abroad people consumes ice-tea in good quantity but in the sub continent

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although we are very fond of drinking tea but in its same traditional form, i.e, the regular hot tea.

That is the reason why masses have not yet accepted this version of tea in Pakistan. It has always

been difficult to change the mind-set of customers but in order to increase the sales of ice tea,

marketers have to first create awareness among the tea drinkers, both the heavy users and the

light users and in non drinkers about this cold version of tea and then have to work on the

marketing mix determinations in order to increase its sale. Right now the problems regarding

Tapal’s Ice Tea are; it is only available in two flavors i.e., Peach and Lemon & Lime , it is not

easily available everywhere and till now no such noticeable promotional work has been done for

it. So, in this report I will be discussing what Tapal can do in order to improve the current

situation of what we can say, Failure.

INTRODUCTION OF TAPAL

Tapal is the largest and 100% locally owned tea company. It has modern tea blending and

packaging factories, warehouse equipped with state of the art machinery and a team of highly

dedicated and dynamic professionals. The journey of Tapal started back in 1947 from its retail

outlet in Jodia Bazaar, Karach under the supervision of its founder Adam Ali Tapal.

‘Never compromise on quality’ has been the motto of company since beginning, which has

resulted in a high level of customer satisfaction, which make them brand loyal. Tapal is the

leading tea importers of Kenya tea in the country and are now planning towards the backward

integration by beginning the tea plantation at Shinkiari in the northern region of Pakistan. The

aim of this project is to become self-sufficient in the tea industry, saving country’s foreign

exchange and provide new job opportunities. Tapal is also working internationally and is the first

national tea company to export tea to U.A.E, Canada and U.S.A. Tapal is a research-oriented

company. It keeps researching in the area of retail audit, consumer behavior, and media planning

and product development so that it can cope up with the challenges and requirements of the

industry and consumers. The reason of meeting the challenges of the industry and the current

environment fully and having such a big loyalty of customers is possible only by providing

consistent and quality product at all times.

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Tapal is the leading brand in the tea industry and is known because of its quality and taste and

thus has left behind many competitors in the tea industry. The leading competitors of Tapal are

Lipton, Tetley and Brookebond. Tapal has various different brands under its umbrella like

TAPAL DANEDAR

Pioneer of the Danedar category in Pakistan, Tapal Danedar remains a favorite around the

country with its great-nutty appearance, rich golden color and strong refreshing taste. It is

available in soft packs and double chamber teabags; 100gms pack containing 50 teabags and a

200gms pack containing 100 teabags.

TAPAL FAMILY MIXTURE

A combination of high-grown Kenya leaf and dust tea. It was developed in 1947 and created a

completely new category in the tea market. It had a major role to play in Tapal’s success as it

gives a unique taste of dust with leaf together in one cup. It is available in hard packs of 60, 125

and 250 gms and a jar pack of 450 gms.

TAPAL SAFARI CHAI

Tapal safari is made from Kenya leaf teas and provides great tasting tea to the consumer. Tapal

safari chai, with a safari theme, is aimed at adventurous people.

MEZBAN PREMIER DUST

A strong flavored dust tea that delivers high quality at a very economical price. It is aimed at

consumers who prefer tea with a strong flavor and taste. It was originally developed for hot tea

shops/dhabas but became a favorite for household consumers as well specially in the rural areas

of Sindh where the strong taste is preferred particulary. 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.

CHENAK DUST

An economy dust embracing high grown flavoury teas proportionally blended with medium

grown Kenyad golden Coloury teas to give an all round cup at a reasonably lower price.

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Chenak Dust infuses quickly and gives the consumer a strong bright coloury cup within a very

short time.

Chenak Dust is popular with those ‘tea lover’ who take several cups of tea due to its friendlt

price.

TAPAL SPECIAL TEA BAGS

These teabags are made from high grown leaves collected from tea gardens all over the world

which provides an extra strong blend. This combined with the convenience of environmental

friendly metal-free teabags has made Tapal special teabags a successful product.

TAPAL JASMINE GREEN TEA

This is a most recent addition to Tapal brands. Tapal jasmine green tea is blended using finest tea

leaves and specially selected jasmine to give a refreshing light taste and soothing aroma. It is

also available in metal-free teabags.

GULBAHAR GREEN TEA

It is an after dinner delicacy perfection to the need of green tea drinkers.

TAPAL ICE TEA (NEW PRODUCT)

Tapal Ice tea is the latest product from the house of Tapal. Ice Tea came to notice of the Tapal

management when it was found that it was already being sold at many leading stores throughout

the major cities.

Independent industry research shows that healthy beverages were increasing claiming a bigger

share of the Pakistani market and were growing at a tremendous pace. Tapal started to respond to

consumer demand and research by introducing these current flavors.

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

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“Tapal Ice Tea”. The first consignment of Tapal Ice Tea was ceremoniously dispatched from the

company’s warehouse on Thursday the 14th of June 2007.

PROBLEM STATEMENT

My concrete problem statement is;

“Identifying the challenges faced by Tapal in marketing its ice tea & developing strategies to

improve the situation”.

SIGNIFICANCE OF STUDY

The study will be helpful and beneficial to all information seekers in;

Knowing exactly what the customer’s perception is when it comes to the consumption of

ice-tea over the traditional hot tea.

Understanding the challenges faced by Tapal in marketing of its ice tea and how the

situation can be improved.

Moreover,

The study conducted can be a reliable source to the research based organizations or

companies under the study related to the segment

DELIMITATIONS

The delimitations or the assumptions, which are necessary to in order to conduct the research are:

Political scenario of our country is highly unstable and keeps fluctuating, such kind of

uncertainty can affect the study.

Economic condition, which is, unstable at the current situation and can have adverse impact

on our study.

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SCOPE

This is a completely new market Tapal is entering and needs a comprehensive research at

national level. However due to distances and time constraints, the sample from different areas of

Karachi will only be taken. It is important to include different areas of Karachi in order to

determine where it is generating the highest sales volume and the availability of the product in

those areas as well. The time period of this study will be from October till May.

DEFINITION OF TERMS

Ice tea: Ice tea is a form of cold tea, often served in glass over ice. Many forms of tea are chilled,

but most commonly ice tea is sweetened.

Flavored ice tea: When tea is mixed with different flavored syrups; common flavors are lemon,

peach, raspberry, lime, orange, cinnamon, grapes, mint and cherry.

Marketing mix determinants: The set of controllable tactical marketing tools i.e product, price,

place and promotion that the firm blends to produce the response it wants in the target market.

Backward integration: Acquiring ownership of one's supply chain, usually in the hope of

reducing supplier power and thus reducing input costs.

Foreign exchange: Instruments, such as paper currency, notes, and cheques, used to make

payments between countries

Retail audit: Study of a selected sample of retail outlets, provide as a subscription based service

by market research firms. Retail audit service providers gather information on a brand’s sales

volume, sales trend, stock levels, and effectiveness of in store display and promotion efforts and

other associated aspects.

Consumer behavior: Consumer Behavior is defined as "the dynamic interaction of affect and

cognition, behavior, and environmental events by which human beings conduct the exchange

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aspects of their lives." More generally, Consumer Behavior is the psychology behind Marketing

and the behavior of consumers in the Marketing environment.

Media Planning: Process of designing the objectives and strategies for the use of media in a

marketing program and selecting the media that will most effectively and efficiently reaches the

intended audience for an advertiser's product.

RESEARCH DESIGN

In order to find out about the trends problems faced by Tapal in marketing its ice tea and the

source of data is both

Primary.

Secondary

The primary data has been gathered through conducting interviews and questionnaires. The

nature of the research is Exploratory, because on this particular product not much has been done

earlier and the data which will be collected with the help of this study will help in determining

the problems which are creating hindrance in the marketing of the flavored ice tea and its

acceptance by the people.

RESPONDENTS OF THE STUDY

The data for this study will be collected from 50 different people who belong to different

occupations. The age bracket under study is from 18 to 50 years with no restriction of gender as

this product is made for the masses therefore, it has the acceptance problem at all levels.

RESEARCH INSTRUMENTS

For this study, the research instruments taken are;

Personally administered questionnaire & interviews

Personal Observation

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The questionnaire will be based on the combination of closed ended and open-ended questions

and thus will give the proper insight of the topic. Interviews both face-to-face and telephonic.

Other tools are:

Internet

Magazines

Articles

Prior study on related topic

UNIT OF ANALYSIS

The unit of analysis refers to the level of aggregation of the data collected during the subsequent

data analysis stage. Here the unit of analysis is Individual. Data will be collected from each

individual in the sample population and each respondent will be treated as independent data

source

TIME HORIZON

This study is a cross-sectional study. The data will be collected just once, perhaps over the period

of 6 months in order to answer a research question.

SOURCES OF DATA

The data gathered for this research is from both primary and secondary sources.

Primary data

Primary data will be collected through questionnaire and face-to-face interview.

Secondary data

Secondary data will be collected from the Internet and through different magazines and

newspapers. A complete list of bibliographic citations will be provided in the appendix.

TREATMENT OF DATA

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The data collected with the help of questionnaire will be processed and presented graphically

with the help of different charts. And then on the basis of that processed data conclusion and

recommendations will be formed.

Literature Review

Ice tea was invented accidentally in 1904 by an Englishman in America. Before that tea was

always considered as a hot drink until the day ice tea was invented. Ice tea is basically an energy

drink which has little content of tea so that the drinker can feel the tempt of tea in it and when it

is served with different flavours like peach, lemon, orange, cherry, strawberry, mint, grapes etc,

it becomes flavoured ice tea. It is very refreshing if its properly made but the secret of its success

is hidden in its recipe. The art is in its proper mixing and blending of fruit flavours and tea which

is a bit difficult to balance, so to solve this problem manufactures came up with the idea of

providing ice tea in ready to drink cans so that the consumers can enjoy the true essence of ice

tea without compromising on its quality.

People argued the beverage acted as both a physical and mental stimulant, as a refresher of the

spirit. Medically the benefits of tea can not be ignored, it gives power and capacity for repairing

the body’s waste. Some medical personnel argued drinking tea promoted slenderness because it

lessen the sense of hunger and thus to some extent prevented over eating.

In the early days of ice tea in America it was seen that there was a difference in the appeal of tea

in winter months and in the summer months, tea association of USA embraced the new

marketing techniques in order to alter the image of iced tea which is being perceived only as a

summer time drink. This brought a sweeping change in the way people viewed iced tea and the

way it was promoted. A fool proof method of brewing a consistent quality was developed for

restaurants. The commercialization of instant tea increased the iced tea’s popularity, helping

make it a beverage that could be enjoyed year round. And the use of new mediums and

advertising tie-ins guaranteed that iced tea’s message made into many homes.

The demand for super premium iced tea is not limited to grocery shops. Restaurants and other

food service outlets are adding super premium iced tea to its beverage offerings.

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It is necessary as a marketer that we should know that why many products failed in the initial

stage of their lifecycle and even after passing some time on the shelves of the stores.

In an era of brand loyalty and brand experience, it is important that marketers analyze the causes

of brand failures as they could offer valuable insights. While there may be several reasons why

brands fail (both internal to the organization and external). It should be noted that brand failure

as defined for the purpose of the article is the withdrawal of a brand from a market or a brand

failing to capture a significant portion of the market relative to the market structure in a given

product category. The objective is to apply academic reasoning across a variety of situations

taking into consideration the overall market for a product category and competitive offerings at a

given point in time.

Category development

Normally, in a number of categories, brands evolve over a period of time as the category

evolves. When the category itself does not evolve, there is probably a lack of favorable

perception in the minds of consumers. Or perhaps they do not understand the nature of the

product and hence do not take it into their consideration set whenever they buy an item from the

category.

A considerable amount of research and a follow-up of the marketing mix are required to ensure

that the category registers among the target segment. The onus of doing this falls on the

pioneering brand which kick-starts the category (or one of the earliest brands). While this meant

just creating awareness some decades ago, now it could be a complicated exercise in a

competitive context.

While the brand may have gathered some of the information mentioned over a period of time, it

is difficult to think of a conceptual sequence of steps by which the brand was promoted over

decades. Given this scenario, it is not difficult to understand why several brands are not found in

the category. Development of the category, especially by brands which are early to the category,

determines not only the success of such brands; they may also determine how subsequent brands

may perform in the category. This is not to make out that later entrants may not succeed in

developing a category (there are several of them which have successfully done it). A pioneering

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brand could become associated with a category and hence be the `first' in the mind of the

consumer. Later it could make appropriate changes in the marketing mix to ensure it leads with a

sustainable advantage.

Timings of the brand

There are two options for a brand to diffuse itself: either introduce a new concept or develop it

over time, waiting for the market to develop, or introduce a new concept when the timing is

right. The former approach calls for a greater commitment of money, time and organizational

resources. The later approach would be successful if there is adequate and ongoing research on

understanding the behavior of consumers.

Cultural dimensions

Culture is unique to a market. A number of consumer products may get diffused because of

changing lifestyles. Brands, which are associated with strongly, entrenched cultural practices or

beliefs would have to be careful before using a westernized appeal.

Like many other countries the majority of people in Pakistan think that tea is the beverage which

is best served piping hot. Pakistan’s oldest and the most traditional tea blenders Tapal decided to

launch the icy version of the hot beverage. Their step of launching iced tea shows that they are

now feeling the need to enter younger, newer market.

To ensure that Tapal ice tea would be well received the company conducted six months worth of

extensive focus groups with 18-35 year olds in urban and semi urban areas. In May 2007 after

the promising results of the research Tapal conducted they launched their peach flavoured ice

tea. The product is outsourced from Vietnam although the recipe has been developed in Pakistan.

“Umair Mohsin, associate Creative Head at creative agency (the agency responsible for the

campaign) says that it was clear from the onset that Tapal ice tea would target the young market,

the focus group revealed that Tapal was not perceived as a young person’s brand”.

The product is non carbonated one so it has to be sipped rather then gulped down and if drinking

from a can it is also considered as cool lifestyle and status symbol which is also revealed in the

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focus group that’s why Tapal ice tea is packaged in a can rather then a bottle. It is introduced

with the price of Rs. 30 which is a bit expensive but it offers the benefit of being healthy.

PRESENTATION ANALYSIS

1) DATA ANALYSIS

Q.1 How Often To Do You Consume Ice Tea?

INTERPRETATION:

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PERCENTAGES0

5

10

15

20

25

30

35Daily

Weekly

Occassionally

OotherRESPONSES %

Daily 35

Weekly 25

Occasionally 25

Other 15

Out of the 50 people surveyed for this report about 35 percent of them were the regular drinkers

of Ice tea. In order to understand the problem as accurately as possible the respondents are

chosen who have already tried Tapal’s ice tea atleast once. The idea behind asking this question

is to determine the consumption pattern of ice tea by sample irrespective of the brand.

Q.2 Which Flavor Of Tapal Ice Tea You Like The Most?

INTERPRETATION:

60 Percent of the respondents like the ‘Lemon and Lime’ flavor of Tapal’s Ice Tea. It should be

noted here that Tapal initially launched its Ice Tea in only one flavor which was Peach. Since the

consumption of Lemon and Lime flavor has taken over the Peach flavor, the signs are

encouraging for Tapal to probably come up with new flavors.

Q.3 Do You Think Tapal Flavored Ice Tea Is The Substitute Of?

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PERCENTAGES0

10

20

30

40

50

60

Lemon and Lime

Peach

PERCENTAGES0

10

20

30

40Regular tea

Soft Drinks

Juices

Its different all together

RESPONSES %

Lemon and Lime 60

Peach 40

INTERPRETATION:

This bar chart shows that 39.6%are those respondents who have graded the product as a different

product all together, while 31.9% said that it’s a substitute of Juices, 25.3% said that it’s a

substitute of soft drinks and only 3.3% has said that it’s a substitute of regular tea.

Since the respondents have graded Ice Tea to be a substitute of Juices so perhaps it’s a sign for

Tapal to introduce more flavors, Moreover, a high percentage of respondents think it’s a different

drink all together which also shows that people are now more open to new and innovative

products.

Q.4 Are You Satisfied With The Pricing Of Tapal Ice Tea?

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0

10

20

30

40

50 Satisfied

Neutral

Dissatisfied

RESPONSES %

Regular Tea 3.3

Soft Drinks 25.3

Juices 31.9

Its Different All Together

39.6

INTERPRETATION:

About 48 percent of the respondents are dissatisfied with the pricing of Tapal Ice Tea. This

response clearly depicts that the pricing of Tapal Ice tea is higher than the value it creates for the

consumer for the amount of money they spend.

Q.5 Is Tapal Ice Tea Easily Available In Your Area?

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PERCENTAGES

010203040506070

YES NO

RESPONSES %

Satisfied 32

Neutral 20

Dissatisfied 48

RESPONSES %

Yes 37

No 63

INTERPRETATION:

This bar chart shows that 63 percent of the respondents agree that the product is not available in

their area. This has been the major cause of the low-sales volume of Tapal Ice Tea even when

they initially launched it. Only 36.3% of people said that the product is available in their area.

Q.6 DO YOU PREFER CHOOSING ICE TEA FROM A:

RESPONSES %

Point of Sale Display 38

Make Up Your mind from before

62

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PERCENTAGES0

10203040506070

Point of Sale Display

Make Up Your mind From before

INTERPRETATION:

This shows that a smaller percentage of respondents knew what they want from before and are

brand loyal. The impact of Point of sale activation/promotions attracts more consumers so it’s

not just about the brand and the offering but also proper marketing & visibility.

Q.7 Do You Agree With The Statement That The Marketing Campaign Of Tapal Ice Tea Has

Been Able To Successfully Deliver Its Message And Create Awareness Among Its Target

Market?

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PERCENTAGES0

5

10

15

20

25

30 Stronly Agree

Somewhat Agree

Neither Agree Nor Disagree

Somewhat Disagree

Stronly Disagree

RESPONSES %

StronglyAgree 20

Somewhat Agree 30

Neutral 15

Somewhat Disagree 20

Strongly Disagree 15

INTERPRETATION:

Tapal re-launched its ice tea targeting the youth and focusing more on an active lifestyle and

according to 30% of the respondents, it has somewhat succeeded in creating awareness and

delivering its message to the right target audience.

Q.8 What Factors Do You Take Into Consideration When Purchasing Ice Tea?

INTERPRETATION:

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PERCENTAGES

0

5

10

15

20

25

30Price

Quality

Offering

Packaging

Brand Name

RESPONSES %

Price 24

Quality 27

Offering 7

Packaging 18

Brand Name 23

According to the respondents, consumers gors for the Quality of the product closely followed by

its Price and Brand name, therefore, the companies should try their bets to minimize the cost so

that they can provide customers with a high quality product at a low price.

According to the consumer’s response packaging comes after price and quality. This doesn’t

indicate that the company should provide customers with quality products at lower quality

packaging; this might affect company’s sales. Packaging is the outer look of the product if the

outer look is not attractive than the consumers will have the same perception about its inner

quality. They might perceive it as a lower quality product

Q.9 What Kind Of Promotions Appeal To You As A Consumer?

INTERPRETATION:

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PERCENTAGES0

5

10

15

20

25

30

35Buy 1 Get 1 Free

Discount Offers

Extra Offerings

Tie-In Promo-tions With Other Products

RESPONSES %

Buy 1 Get 1 Free 35

Discount Offers 30

Extra Offerings 10

Tie-In Promotions 25

The most appealing promotion to the respondents was the Buy 1 Get 1 free with 35% of the

respondents checking it, closely followed by Discount Offers at 30%, Tie-In promotion at 25%

and only 10% of the respondents look for Extra Offerings. This shows the consumer prefer more

quantity for the same amount of money they pay or a single unit of Ice Tea.

Q.10 Which Type Of Promotional Advertisements Catch Your Eye?

INTERPRETATION:

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PERCENTAGES0

5

10

15

20

25

30BillBoard

TVC

Posters in Stores

Radio

Newspaper/Magazines

RESPONSES %

BillBoard 22

TVC 30

Posters 7

Radio 18

Newspaper/ Magazines 23

The most effective medium to reach the target audience is a well shaped message aired on TV as

30% of the respondents agree it to be the medium that catches their eye. However, the

importance of billboard and newspaper/magazine advertisement cannot be neglected as these two

have the next highest values in terms of medium that appeals to the target audience.

Q.11 Please Rank The Characteristics Of Tapal’s Ice Tea According To Your Preference:

INTERPRETATION:

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PERCENTAGES0

5

10

15

20

25 Taste

Flavours

Product Range

Packaging

Purchasing Convinience

Price

RESPONSES %

Taste 21

Falvours 15

Product Range 15

Packaging 10

Price 24

The above chart shows that consumers regard price and taste of the product more highly than the

other characteristics presented. Taste is related to the quality of the product since it’s a beverage

so once again it can be concluded that Tapal should strive to lower its cost in order to provide the

best quality product at a lower price.

Q.12 What Improvements Would You Like To Suggest In Tapal’s Ice Tea?

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PERCENTAGES0

5

10

15

20

25

30More New Flavours

Availability

Lower Pric-ing

Nutrionally Rich

Other

RESPONSES %

More New Flavors 26

Availability 25

Lower Pricing 24

Nutritionally Rich 10

Other 15

INTERPRETATION:

Tapal has always been a huge name in a conventional tea industry which it can capitalize on.

Initially Tapal came up with only one flavor of Ice tea i.e Peach, however with its growing

awareness and popularity among the consumers, it should come up with new flavors, focus on

distribution and strive for lowering their cost so that they can lower the price of the product as

suggested by the respondents.

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