Marketing Theories and practices

Marketing Theories and practicesSubmitted to: Madam Ayesha PervaizGroup MembersAsad Ali ZahidFahd NaveedMarvi AshokMarvi SohailSaad KazimKhurram Rehman AlviMBA 2K13 -A

EXECUTIVE SUMMARY

The proposed project report is the marketing plan for Tapal Danedar Envelope teabags. Enveloped tea bags are introduced first time in the Pakistans market by Tapal. The unique selling proposition of envelope teabags is their ability to retain freshness and smell while providing optimum taste and aroma. It also has the unique qualities of being staple free and microwave friendly. Tapal Danedar envelope tea bag was introduced in the market 4 months ago with its tagline, King of teabags however, Tapal, not being able to effectively create awareness amongst target market is the major issue. Apart from that the content of their advertisements and the promotional campaign not being in-line with the concept of King of teabags is what we have focused on this report. The report consists of the detailed marketing plan.

Table of ContentsEXECUTIVE SUMMARY11.COMPANY INTRODUCTION AND PROBLEM IDENTIFICATION51.1 Products51.2 Tapal tea bags61.3 Unique Selling Preposition (USP)61.4 Problem identification71.5 Market Share81.6 Sales82. SITUATION ANALYSIS92.1 EXTERNAL ENVIRONMENT92.1.1Category Analysis92.1.2 Competitors Analysis132.2 INTERNAL ANALYSIS192.2.1 Company Resources202.2.2 Current Market Strategy202.2.3 Competitive Advantage222.2.4 Other Products223. MARKETING OPPORTUNITY ANALYSIS223.1 Customer Analysis223.1.1 Existing Customer Analysis233.1.2 Potential Customer Segments254. Research Findings and Analysis284.1 Primary Research Analysis284.2 Retailer Questionnaire Analysis (Aattached- exhibit B)394.3 Taste Testing405. SUGGESTED OBJECTIVES425.1 Financial Objectives425.2 Management/ Personnel425.3 Production435.4 Marketing435.4.1 Product/ services435.4.2 Sales445.4.3 Pricing445.4.4 Adverting446. SUGGESTED STRATEGIES446.1 Product446.2 Place476.3 Promotion486.4 Pricing516.5 People517. PROJECTIONS527.1 Anticipated costs527.2 Expected Results54ATAR (Awareness, Trial, Availability, Repeat) Model548. CONCLUSION55Exhibit A - CONSUMERS QUESTIONNAIRE56Exhibit B - RETAILERS QUESTIONNAIRE60EXHIBIT 3: PRINT AD62

1. COMPANY INTRODUCTION AND PROBLEM IDENTIFICATION

Tapal tea is an international beverage that is enjoyed by people worldwide. Having over 62 years of experience, it has been offering some world-class brands which are savored by people around the globe. Tapal Danedar, the flagship brand of the company and also one of the biggest multinational brands of Pakistan, caters to diverse income segments including single sachet users to large households. 1.1 ProductsTapal brands include wide array of tea products, namely Tapal Mixture Tapal Tea bags Mezban Green Tea Tapal Special etcTapal tea is a nation-wide market leader. Lipton and Supreme, brands of Unilever (also competitor of Tapal) have been the market leaders till 2009, however, now they are considered to be the followers of Tapal. 1.2 Tapal tea bagsThe product line of Tapal that we would be focusing on is the teabag category, which includes Danedar Round Teabag and Danedar Envelope teabag. The product of our concern for this marketing plan is the Danedar Envelope teabag King of teabagsThe company has introduced the enveloped teabags for the first time in Pakistan. The product has been available in the market since last 5 months and was placed at some of the renowned departmental stores at the time of the launch. Target Market: The product caters to a niche pure tea lovers and targets the upper middle class. 1.3 Unique Selling Preposition (USP)i) Hermetically sealed envelopeThese teabags are hermetically sealed which protects it from moisture and oxygen transmission resulting in preserving better flavor and long lasting freshness. The teabag in sealed envelope protects it from dust as well. ii) Aromatic teaThe superior quality of Tapal teabags ensures strong aroma which provides a refreshing experience to tea lovers along with superior tasteiii) Staple Free and microwave friendlyTapal has introduced staple free teabags, which are microwave friendly. Staple free teabags provide ease of making tea instantly in microwaves without any electrical hazards. In addition these tea bags are completely decomposed leaving no waste behind.1.4 Problem identificationDanedar Envelope teabags major problem lies with the products positioning and promotion. The company has not been able to effectively create awareness amongst target market about the USP of product. During the launch advertisement campaign company heavily focused on the core values of company and its traditional customer base, this suppressed the visibility of the product in the AdsAds were not able to differentiate the product from other products (teabags) as a premium product. The existing campaign/ad was not supportive of the whole concept of king of teabags. Moreover, the time span for which the TVC campaign of this product was on air was very less; the advertisement was played merely 4-5 times and was never seen again on television. No promotion whatsoever was done apart from the TVC campaign. These problems will basically translate into our marketing research objectives: To find out the extent to which consumers are aware of Tapal Envelope teabags. To gauge consumers opinion regarding this particular product, through survey or test marketing To propose new strategies or ways through which we can solve the marketing problem. 1.5 Market Share Overall Tapal is the market leader in the Tea Industry, but currently it holds only 10% of market share in the northern region in black tea bags. Although their green tea bag share is over 80%, the aim of introducing the envelop tea bags was to increase their share within the black tea bags in the northern region in particular, along with urban centers such as Lahore and Karachi.However, it has failed to capture the market it was expected to. The sales have gone up but the envelop tea bags have cannibalized Tapals other black tea bags, while only capturing a small proportion of market share from their competitors. The growth has not matched the expectations.

1.6 SalesTapal leads its competitors in terms of sales volume; however, its revenues are still less than that of Lipton (its main competitor). This is primarily due to Tapals products being priced slightly below that of Lipton and their small share in more lucrative tea bags market. Following figures show the huge discrepancy between the tea bag sales volume of Lipton and Tapal.LiptonTapal

Tea bag Sales/ Year3,000 tonnes200 tonnes

2. SITUATION ANALYSIS2.1 EXTERNAL ENVIRONMENT2.1.1Category AnalysisTo account for the ever growing demand of tea, the trends that are being followed by the supermarkets are changing. The tea and coffee section occupy more space and have more devoted shelves and this trend seems to be growing drastically. The competitive offerings have also stretched in both size and numbers as the new tea brands and companies come into marketplace. Promotional offers are also witnessed at superstores on various tea brands. Local as well as international companies are competing to grab an increasing market share. Market has witnessed the tea in various forms apart from traditional tea, which include herbal teas, specialty tea, ready to drink tea and green tea. These products are available in varying convenient packagings depending upon their shapes and sizes, which are made keeping in mind the requirement of the target market.The consumption of tea is not limited to supermarkets and retailing business, the tea consumption has bypassed all barriers and is available in variety of non-traditional outlets such as offices, convenience stores, gas marts, vending sector and foodservice sector.Another reason to ever growing tea demand can be attributed to strong marketing campaigns, in which companies invest heavily. Companies follow various marketing strategies which also include various Ads on television and endorsement from Celebrities. This creates awareness among the consumers which are the potential market for tea producersRecent Scientific research has highlighted the health benefits of tea; this has allowed the tea producers to uniquely position the tea in the market to attain maximum benefits. Tea industry has grown at a much greater pace and is amongst the fastest growing industry in recent years.2.1.1a MarketPakistan has a long tradition of tea drinking that has now become an integral part of the countrys social life. Pakistanis consume about 170 million kilos of tea annually. In Pakistan, tea is considered a food-staple. The annual per capita consumption of tea in Pakistan is about 1 kg. Pakistan is the 3rd largest importer of tea after England and Russia and the consumption is increasing day by day with the increase in population.Kenya is the largest exporter of black tea to Pakistan, with a 55 percent share in that market, while China is the largest seller of green tea in Pakistan, claiming a 100 percent share. In addition, Pakistan is importing black tea from nineteen different tea-producing countries of the world. While understanding the potential and conservation of valuable foreign exchange expended on imported tea, government of Pakistan created a special corporation in 1973 and started a project called "Research and Introduction of Tea in Pakistan. Studies of the prospective tea growing areas were conducted in collaboration with experts from China. Based on topology, climatic data and soil suitable areas were identified in the country. Tea Research Station was established with technical assistance Pakistan Agricultural Research Council (PARC), Islamabad. The first black tea processing plant with the capacity of one ton made tea per day was established at NTRI by PARC with the technical assistance of Chinese Engineers during 2001. Tea consumption in Pakistan is expected to grow at a constant rate in future. The companies are likely to increase their reach to rural areas to enhance growth. Strong distribution, effective advertisements are the requirement of companies to stay competitive in the market.2.1.1.b Political/LegalA countrys political environment is a harbinger of a strong economy. Sadly, Pakistans political environment happens to be very weak and unstable and therefore is reflected in the growth rates of all industries. The tea industry is no exception. According to a report of 2013, Pakistan has been the third largest importer of tea and has been importing both black and green tea from 21 different countries and there is a market of about 170 million kg for black tea.The Pakistan tea association claims to encourage tea imports in the country however there has been a significant reduction in the sales tax from 16% down to 5% on import of black tea in order to stop illegal supply of tea. This will automatically cause the prices to fall as well which would be quite a relief for everyone. The reduction in sales taxes has also boosted the exports as per the report. So far, the anti-dumping regulations of the WTO are the only actions that can be enforced. Nevertheless, these are hard to prove and the real issue is smuggling, which is already outlawed by the international community In addition to this, quotas and trade barriers, import duties and taxes all have an effect on this industry and hence need to be taken into consideration.2.1.1.c EconomicAs mentioned before, illegal tea importing has hurt a lot of local suppliers and has hindered the growth of tea industry. The level of inflation is an important consideration while making pricing decisions. Inflation has actually shown a gradual reduction over July 2012 January 2014. The inflation rate in Pakistan was recorded at 8.53 percent in March of 2014. High levels of inflation cause the tax rates to increase and make importing tea quite expensive. In such a situation, even if the labor cost is low, a lot of money is still required for investment into training the workforce. The global economic recession has also well played its role in slowing down the growth of industries2.1.1.d SocialThe social factors and psychographics are changing and have a direct impact on any business. In Pakistan tea has always been a popular beverage but there has been an increasing need for segmentation and accurate positioning because of the changing lifestyles and demographics. People are becoming more and more specific and todays customer is more aware than ever of her/his requirements. Word of mouth has an ever increasing impact on a brands image nowadays as people are finding new and faster ways to interact and exchange opinions.2.1.1.e TechnologicalThe recent surge in internet usage has given birth to hundreds of thousands of virtual communities online. User opinion is becoming a valuable and impactful factor in decision making and hence, can make or break you. Smart marketers find ways to use technology to the best of their advantage. Besides the marketing side, technology has also had its impact on productions and operations. Tapal already has state of the art equipment in place and has an impressive production facility which helps in delivering a product that is superior in quality.2.1.1.f EnvironmentalTea production does not have any significant environmental considerations. It is not very detrimental to the environment as a lot of raw material being used is biodegradable though one noticeable thing is the effect of deforestation on the growth of tea leaves which is very alarming because if deforestation continues at its current rate it could eliminate this important segment altogether.2.1.2 Competitors AnalysisTapal has a number of competitors, which have increased over the past number of years with emergence of brands such as Vital tea and Tetley. However, Lipton remains the main competitor for Tapal. In the following sections we will analyze each of Tapals competitors.2.1.2.a LiptonLipton, a direct competitor of Tapal, has been established for more than 100 years now and is available in more than 100 countries due to its association with Unilever. Mission statementTo meets the everyday needs ofpeople everywhere to anticipate the aspiration of our consumers and customers to respond creatively and competitively with products which raises the quality of life.ProductThe portfolio of Lipton tea consists of the following Lipton black tea Lipton tea and honey Lipton Green tea Lipton herbal tea Lipton Iced tea Lipton K-Cup Pack Lipton black tea bags Lipton flavored teaIt provides a vast array of tea-based drinks ranging from ice tea soft drink, black tea to a healthier category like green tea. Within the above mentioned tea products, there are sub-categories as well pertaining to various flavor, aroma and taste. Also, Liptons black tea captures a huge market share i.e. 90%.PriceThe products of Lipton are costly as compared to Tapal. As far as the cost is concerned, Liptons one packet costs Rs. 600-700 per kg and the sales margin they get from this category is around 200% which is why they are focusing on tea bags a lot. (Source: Interview with Zonal Manager, Tapal and former General Manager, Lipton, Unilever) PlaceLipton has 650 distribution offices across Pakistan and it is available in almost all big superstores but talking specifically about the teabags, Lipton tea bags are not available in all outlets. Even in universities, one will find the increased usage of Tapal tea bags. However, Lipton Yellow Label Danedar is known for its distribution network.

Promotion Lipton Tea uses various promotional techniques at different times of the year; it makes use of TV ads, advertisements in magazines and also social media such as facebook.Strategies followed by LiptonCurrently Lipton is focusing on product development; introducing new products time to time in order to expand its customer base, it also introduced new flavors in Lipton iced tea as well as in honey and green tea. Positioning of Lipton Positioning basically relates to creating a unique image and strengthening the position of the product/brand in the minds of consumer. The main product i.e. Lipton Yellow Label has positioned itself in its customers mind as Refreshing Quality product Through slogan Taste Active ColorTarget MarketLipton basically targets the urban areas and has focused on upper and middle class; Lipton Yellow Label teabags are targeted towards the upper class whereas the jars or the soft packs are targeted towards middle class. Lipton targets those people who are young, trendy and cosmopolitan.

Strengths and weaknessStrengthsWeakness

Highly innovativeDistribution weaker in some areas like Sindh

Quality and wide array of products/brand portfolioHigh price

Strong brand image

Strong base and quality management

Sound financial position

Increased market share in black tea

In the Northern region and NWFP, Lipton is the leader. Lipton is ahead of Tapal in terms of revenue (sales margin); their tea bags category contributes around 30-35% of sales. Their marketing is very strong; around 50% of their ads are tea bags focused. It sells 1500 tons of tea bags nationally. Last year, Unilevers sales volume was 33,000 tons out of which they sold 1500 tons of tea bags. 2.1.2.b Brooke Bond SupremeBrooke Bond Supreme enjoyed the position as a market leader in tea category in Pakistan for many years. However, in 2013, Tapal took over the top market share position posing a major threat to Supreme, Lipton and other brands in tea category. Supreme repositioned itself as a tea for health conscious people. Its unique selling proposition is that Supreme enhances immunity.

Current Positioning StrategyTea has always been considered a product which is easy to make and for everyone to drink in Pakistan. However, certain ideas still prevail in the country that tea is harmful for health, darkens skin, a source of acidity and dehydrates a person. Supreme viewed this threat as an opportunity to re-launch the brand and position itself as a healthy tea for the whole family. Supreme is the first one to market itself as a healthy tea in black tea market. The response from market has been very favorable as in 2012; the company declared a growth in double figures (around 13%).Competitive AdvantageSupreme, just like Lipton, has a competitive advantage of marketing, due to which the company was successfully able to re-launch the brand and it has always helped in enhancing product visibility. One of the strengths of the brand is its packaging. Supreme packaging is not only attractive; it is the pioneer of loose tea packing in the country. The product is also rich in aroma and taste. If marketed properly, it can easily take over the market leader position again. WeaknessesSince Unilever has two major tea brands to focus, Supreme may not get as much funding and attention with Lipton as it would have gotten if it were the only tea brand of the company. One of the recent problems with the brand is that the frequency of TV advertisements has been reduced. One reason could be that Unilever management wants to focus more on Lipton than Supreme.ResourcesBrooke Bond Supreme has the financial and expert managerial backing of Unilever Pakistan. The brand rarely faces production problems. Financially the company is very stable and is one of the strongest companies in the tea category. The management of the company is very qualified and experienced. Unilever is known to attract the best of talent as well as managerial level executives for employment opportunities in the company. 2.1.2.c Vital TeaStrengthsOne of major strengths of Vital tea is that it is local brand. It was established in 1991, therefore it has beena player in Pakistans tea market for long enough to know the dynamics of the market. Therefore, it decided position Vital tea as an urban tea brand and come into direct competition with bigger players such as Lipton and Tapal.The image and the market share of Vital is growing and is therefore now considered a competitor to Tapal. It is also offering quality tea but at a much lower price compared to established brands.WeaknessesLack of advertisement/marketing is one of the key areas where Vital tea lacks. However, weak distribution network is probably their biggest concern as they have not been able to reach out to its potential target market. It is also struggling to shrug off its brand image of a rural brand. Competitive Advantage:Vital Tea has developed a state of the art facility with increased focus on quality. They are now able to manufacture high quality tea while charging lower prices.How is Vital Tea a threat to TapalVital Tea has only recently moved into the urban market. Their tea bags can be considered at an infancy stage. However, due to their growing market share in the urban centers, it is likely that they would be able to penetrate the tea bag market as well. Therefore, the do pose a threat to Tapal and can be considered as an upcoming competitor.

2.1.2.d AlokozayThe Alokozay Group of Companies (AGC) is a leading ISO certified multinational FMCG company with its headquarters in Dubai, UAE and having its presence in over 40 countries with an extensive distribution network in Middle East, Central Asia, Asia, Europe, Africa and North America. Although, it does not have formal distribution channels in Pakistan as yet, but due to its variety of flavors, its gaining consumer interest. Current Positioning Strategy: Alokozay is being imported by local distributers in very limited volume and is only available in major cities. Strengths Various Flavors Premium productsWeaknesses Hasnt been introduced in the Pakistani market officially. Not marketed/advertised Competitive advantageIts variety of flavors can be its competitive advantage but the company itself hasnt shown any intent to penetrate in to Pakistani market.2.1.2.e TetleyCompany Resources and Introduction: Tetley is one of the brands of Tata Global Beverages Ltd. A truly global brand, enjoyed in 70 countries and available in a variety of formats from the drawstring tea bag to packet tea, Tetley offers consumers an ever widening range of new and exciting teas to suit all possible tea moments. As far as Pakistan is concerned, Tetley has kept its focus on just black tea. Strengths Strong premium tea Parent company backing and ease of launching other varieties of teaWeakness Only focusing on black tea Not marketed properlyCompetitive advantageThe parent company itself has a strong potential to penetrate into Pakistani market but after the first introduction, the product hasnt been marketed properly, which is the reason why it hasnt been able to grab the market share.2.2 INTERNAL ANALYSIS

2.2.1 Company ResourcesTapal has no financial problems and they are equally as competitive as Lipton whenever they need to deploy resources for sustainability and growth purposes. The company faces no financial hurdles in production and promotion of its products. It has two plants in Lahore and Karachi. Tapal has not been short of supply for its stock over so many years. This consistency in production also indicates how financially stable is the company.The personnel and management are very competent. Tapals team all over the country is very dedicated and committed. They have strong ethical values. Marketing has been very effective over decades and this is the reason why Tapal has overtaken Lipton to become the market leader in branded tea category. However, Lipton still markets its products effectively which do not posses very high quality. So, Tapal has to work on its marketing more by hiring the best and the most diverse creative talent available in the country.The companys HR policies are very flexible. However, the compensation/ salaries offered by Lipton to its employees are better than those offered by Tapal to its employees. For that reason, Lipton is the first choice for applicants once they apply for a job. Lipton has better employer brand image than any other company in Tea segment. 2.2.2 Current Market StrategyThe targeted positioning of enveloped tea bag is that it makes the most superior quality and strong tea, with all the freshness retained. It is marketed as the most superior tea bag which is high in quality, aroma and freshness and is also microwave friendly (staple free) for on the go consumers who have little or no time to wait for water to boil in order to make tea in offices and homes. Since tea is best made when grains or tea bags are added in the boiling water, King of Tea bags has all the essentials to be marketed as the most superior brand in the tea bags category. The company is charging premium price for enveloped tea bag product.Presently, Tapal is doing little in terms of marketing the King of Tea Bags. TV advertisements are not played anymore. The only promotion in Islamabad/Rawalpindi market is being done through distribution channels. The companys sales team is ensuring the product availability in most of the big stores. Shelf spacing, brochures, posters and other below the line marketing tools are used to promote the product. Extensive marketing has been put on hold by the company. The company is not even using stalls and trials to generate awareness about the product.The sales team of Islamabad/Rawalpindi region expects rigorous marketing in the near future to penetrate the brand in the market. The company aims to make this brand the market leader in the tea bag category. The ultimate aim is to take the regular Tapal tea bags off the market once the enveloped tea bags brands become the market leader. Tea bag market has a lot of potential as Tapal has only about 8% market share in this category, while Lipton has almost 90% of the share. So, not only tea bags offer more profit margins for the company, the market has a big gap to cover and a big player could make its place in this segment because the market has only 3 major players, out of which only one has been really successful.This year, Tapal expects to sell 200 tons of tea bags while Lipton is expected to record 2000 tons of tea bags sales nationwide. Out of the 200 tons of expected sales, King of tea bags is expected to contribute around 63 tons, falling 27 tons short of the 100 tons targeted sales. Vital tea bags have estimated sales of 10 tons while Tetley anticipates 1 tons of sales volume. However, conditions are very unfavorable for the Islamabad/Rawalpindi market as the companys predicted tea bags sales are only 20 tons compared to 700 tons of estimated sales of Lipton tea bags.2.2.3 Competitive AdvantageThe success of Tapal Danedar proves the fact that the quality of companys product is its competitive advantage. Superior quality and taste are the key characteristics associated with Tapal. Such a competitive advantage could prove to be very significant if the company rebrands its enveloped tea bags and uses the right marketing tools with high frequency in order to become the market leader. Tapal has a good marketing team and a strong sales network that does not make it any weaker than the multinational giants like Lipton. However, Liptons marketing strategies are a little better than Tapals, due to which it is giving hard time to all competitors in the tea bag market.2.2.4 Other ProductsTapal offers nine different brands of tea under its umbrella which are Tapal Danedar, Tezdum, Family Mixture, Danedar teabags, Mezban, Chenak, Green Tea,Gulbahar and Tapal Special. It does not offer products other than tea.

3. MARKETING OPPORTUNITY ANALYSIS3.1 Customer AnalysisCustomersare a group of people who receives the products services or ideas from a seller, on terms of exchange with something valuable. The customers are essentially important for any organization to progress and prosper. They allow any business to earn revenues. Organizations primary goal is to accomplish customer needs. In order to achieve that organizations work heavily to develop customer satisfaction and loyalty, to have repetitive buying and maintain current volume of sales. However the scope of customers are not only limited to the existing customers, it extends to prospective/ potential customers as well.3.1.1 Existing Customer AnalysisCustomer needsTea is amongst the fastest growing industries in the world, likewise in Pakistan the growth of tea industry has been enormous, this has increased the customer base many folds and is still increasing. Market survival is knowhow of the customer base and this knowledge has been judiciously utilized by Tapal, testimony of which is their wide variety of products targeting various market segments. One example is, King of teabag which comes in hermetically sealed envelopes that allows it to maintain its freshness and customer expectations of best taste and freshness of tea. Tea bags has the added advantage of convenience for the customer, the process of making is quick and easy. In addition staining process is also not required which adds more value to the teabag consumption. These all factors makes it popular amongst the working professionals who consume tea at workplace and to all the time starved people, who dont have time abundance to go through entire tea making process. Demographics and psychographicsTapal tea is distributed in the urban areas and is targeting the working class inclusive of males and females, above the age of 25. However the product is price high in the market which dictates that the product is targeting customer with above average to good buying power. The product can be used as a regular drink at workplace and at homes as well. Tea is also served at various restaurants and has shaped into second most common drink after water.Market Growth Industry is now on the maturity stage. Large players have established their brands in the market and enjoyed huge profit margins. Now they are looking towards product differentiation and multi segmentation because consumers are now more taste conscious and looking for variety available to them in a tea market.Existing marketing strategies There is an enormous competition in the tea bag market and market is mature with established brands available, companies have established their customer base, in order to attract new customer and maintain existing ones multi segmentation and high level of differentiation is required, which the company is using, product has advantages not available with the competitors; the company is pioneers in bringing teabags in hermetically sealed envelopes which is the USP of the product. The marketing methods adopted for the promotion of the product includes TVC, billboards, newspaper and radio. Tapal as a company has various products with enormous and loyal customer base. Being Pakistani origin company, Tapal commercials have collectively emphasized and exploited family values, deep rooted family bond and patriotism due which they have managed to target families and patriotic segment of Pakistani market.

Significant OpportunitiesMarket Dynamics: The consumption of tea in the Pakistani market is on a higher side. Increase in shares of TAPAL TEA signifies the acceptance of its various brands of the company in the market. This provides an opportunity to segment the market into various segments; King of tea bag is primarily targeting working class which is also increasing with such rapid increase in population. Tapal intends to increase its market share with this differentiated product.

Higher Adaptability: The working class of Pakistan is time starved who responds to new ideas are more adaptable to convenience and quality, this provides as an opportunity for the company. This highly convenient and unique product will attract this particular market as it meets their product requirements.

Quality focus: The tea customers are looking for taste and convenience and the quality offered by Tapal is above par with its competitors and they have been consistent in providing higher qualities. The packing of envelope will further enhance the quality of tea and add convenience to it as it reach customer with premium freshness, in addition the shelf life of the product will also increase. These are the opportunities that Tapal will exploit while bringing the same unique and consistent taste to its customersThreatsStrong competitor: There is a strong competition in the teabag market, Unilevers brand Lipton, with its distribution network and high budgeted marketing is the market leader. They dont have this kind of a product at the moment, however if they launch such a product it may become very difficult for Tapal to maintain the market share owing to their low marketing budget as compared to Unilever.

Downward trends in growth: With an increase in inflation in Pakistan, the purchasing power of people is decreasing and customer is further price sensitive which is a major threat for the product. With price being set at the higher end the product might show poor sales growth with time.

Threat of Substitutes: Due competitive environment and increasing product range there exist an ever increasing threats of substitution, the risk of substitution is not only limited to switching to other brands of tea but it also includes shifting of customers to other form of beverages which include juice, soft drinks, green tea and coffee.3.1.2 Potential Customer SegmentsSix Sigma doctrines segregate customers from others by branding them non-customers and not-customers. Customers are those who are actively dealing with business by purchasing goods and services in a particular period in time. On the other hand, not-customers are those who are no longer customers or potential customers who opt to purchase goods and services from the competition. Non-customer classification segregates those customers who are dealing in entirely different segment(s). Based on the classifications of customers under the Six Sigma doctrine, we have investigated King of Teabags potential customer targets and segments. Potential Needs The percentage of Tea consumption (not the volume) is expected to decrease in future due to consumption of other alternate products that young consumers find more enticing to their taste and lifestyle. Due to influx of large variety of these new products, the potential needs of customers are also shifting accordingly, which makes it extremely important for companies to keep track and strategize according to the dynamics of the market. As the market loses potential buyer base as a whole, companies could fight for a piece of the pie in the existing customer base, or diversify its product portfolio to add products favorable to younger customers. Similarly, more and more people are now inclined to the use of green tea because of health benefits; consuming lesser percentage of black tea. Despite aforementioned shifts in consumer buying patterns, black tea still is the cash cow for tea companies like Unilever and Tapal. Due to an increase in the pace of life in the urban areas, people now consider tea as a convenience product. Corporate world, where the teabags are so famous due to their convenience, but recent observation of trends suggest that there has been an increasing shift to other alternatives such as coffee which provides an instant caffeine burst that employees need to carry on with their work. These could be considered as non-customers for the company. Demographic/psychographic profilesDemographic profiles of customers, not-customers and non-customers can be clearly classified. Tapals teabag customers are still largely the medical class households sector. Not-customer and non-customer classifications are more dependent on the psychographic factors such as lifestyles, interests, attitudes and so on. Not-customers of Tapals teabags are largely those potential buyers who are at current consuming Lipton or other tea, whereas, non-customers are can be classified the younger audience interested in ice-tea, which is targeted at mainly children. Through marketing, the product itself can be reinforced as the true King of teabags due to the value addition of freshness due to its enveloped packaging and metal free string. Significant opportunitiesIn an environment of dynamic changes in tastes of people, there exist a significant opportunity for Tapals teabags. Potential customers can be enticed via TVCs and other marketing campaigns to make them realize what they are missing. The non-customer base is gradually been turned to customers by introduction of Tapal ice tea and other similar alternatives to cater to their special needs. Tapal envelop tea bags can cater for the upper class and also for people who travel regularly. These people can grab a few sachets from their homes while they travel as it is more convenient to carry sachets rather than teabag boxes. Major ThreatsCompetition: One major threat is obviously losing Tapal teabags own market share in the North to the direct competition, since companies dont operate in isolation. The competition will be equally interested in leveraging their unique resources to grab Tapals market share.Alternatives: As discussed earlier, the dynamic variance in the tastes of people has made it slightly difficult to identify customer for specific products, but there exists special needs and demand from people who find other alternates or substitutes favorable. Therefore, it may put in the foundation to a possible cannibalization of product with the other. Company Resource MatchSince the competition is quite high in the market, companies need to make sure that their resources and strategies are capable of harnessing profitability from the opportunities rising due to potential needs or customers. Potential customers and non-customer base, therefore, are quite important to the company. Tapals success in the south has mainly been due to its strong distribution and the quality of the tea which gives a strong taste. But considering the tastes of people in the North, it is important that company introduces a blend which gives a slightly less strong taste. Lipton, on the other hand has been guiding people to make Different variations (Less strong, strong, very strong) tea through its TVCs. This strategy could be quite effective in case of Tapal as well. 4. Research Findings and Analysis

4.1 Primary Research AnalysisSurvey Questionnaire from Potential customers (Attached- exhibit A)The number of male and female respondents for the consumer questionnaire was almost equal, with 53% of the total respondents being male and 47% of them being female. Out of these almost half of the respondents were aged between 23-27, (i.e. young adults & adults) with the percentage equaling exactly 47%. Out of the remaining ones, 25% consisted of teens and young adults; that is; people aged between 18 and 22, 12% of the respondents were aged 42 and above, 10% of the respondents were between the ages of 28 and 32 and the remaining were between 33 and 41.

Upon analyzing the results, we found that 75% of the total respondents consist of working professionals, so we can say that tea consumption is especially popular amongst employed people. We also found that around 12% of the respondents were students and 9% were housewives and the remaining was unemployed.The survey covered almost equal proportions of people with different income levels. As per the results, 29% of the people who responded have an income of Rs 25,001 -50,000/month; 25% of them earn over Rs.100, 000/month with 24% and 22% of the remaining respondents earn between Rs 50,001-100,000/month & Rs.25,000/month respectively.

Q1: What kind of tea do you usually consume?The consumers were given an option to select either branded or unbranded tea. Results show that 97% of them are avid consumers of branded tea. It would be safe to deduce that working professionals in general are choosy about the kind of tea they consume and clearly prefer branded.

Q2: Rate the following attributes from most important to least important when it comes to selecting a particular tea brand.The purpose of this question was to identify the comparison factors which are more important to tea consumers. Results show that majority of the respondents thought that the most important selection criteria to them was taste. Two factors that were rated quite important were aroma and color, the factor rated as important next to these two was brand name and finally, it was evident from the results that people were somewhat indifferent when it came to packaging and price as they have been ranked as fourth and fifth important attributes. This means while shopping for the tea, the first thing people would look at is taste followed by other factors.

AROMATASTE

Q3: Which method do you use MOST frequently for making tea?Referring to the statistics, it seems that most of the consumers use the traditional way of brewing tea (59%) (By using loose leaf tea) and about 41% of the respondents use tea bags.

Q4: Which brands teabags do you use?For this question, a huge chunk of the pie (63%) was taken away by Lipton tea bags, which is the main competitor of Tapal. Tapal tea bags were ranked number two in consumption but the actual percentage of consumers is quite low (19%). As for the remaining respondents, only 1% uses Alokozay tea bags and the remaining either dont use tea bags (9%) or go for other options (7%).

Q5: Referring to the previous question, why do you prefer this particular brand' teabags?Majority of the respondents said that they love Lipton because of its taste, color and aroma which are basically how they define quality. By looking at the comments it was obvious that these people were very brand loyal, which means Lipton has created strong brand equity in the minds of consumers.6) Which of these products is easily available in the market?The above table clearly shows that Lipton teabags are easily available in the market i.e. in the region of Islamabad/Rawalpindi. What we infer from consumers response is the fact that Lipton has a better placement and distribution network as compared to other brands such as Tapal. Consumers cannot easily find Tapals teabags in utility stores or retail outlets; this is something which is of a serious concern for the brand because if your product is not easily available in the market, consumers might purchase the competitors product.

7) Which tea brands' advertisements on TV do you like the most?

Out of 68 respondents, more than half of them i.e. 65% were of the view that they find Liptons advertisements to be more entertaining as compared to other brands advertisements. On the other hand, Supreme was ranked second (15%) and Tapal, third (9%). It is clear from this figure that as far as marketing and promotion of ones brands or products is concerned Lipton stays ahead of its competitors such as Tapal and Vital tea. According to the results, as more people like Liptons advertisements, this means that Lipton has been successful in developing brand likeability among its consumers. On the other hand, Tapal advertisements were perceived as entertaining or likeable by only 6 people out of 68 respondents.

8) Which of the following best describes your tea usage/consumption?

Frequent/regular tea drinker4567%

Occasional tea drinker1522%

Special tea's only (Green/herbal etc)57%

Other23%

In order to know consumers tea usage/consumption behavioral pattern, we asked them to choose a description that best states their tea consumption. As the above table shows, 67% of the respondents consumer tea on regular basis whereas the percentage of consumer segment that is health/diet conscious is very low i.e. 7%; who consume only green or herbal tea. Moreover, 22% of them consume tea occasionally. Hence, we conclude that more than half of our respondents are tea-lovers or those who drink tea regularly. 9) How do you like your tea?

Moreover, there are some consumers who choose a particular brands tea over others due to its tea color attribute. Hence, to find out the intensity of tea color that consumers prefer, we asked them a simple question, How do you like your tea? We found out that about 50% of the consumers prefer strong tea whereas 40% of them prefer having medium color tea. The ratio of people who consume light or very strong color tea was quiet low. 10) How often do you change your tea brand?In order to find out about the consumers loyalty towards a particular tea brand, we asked them the above mentioned question and the graph shows their responses.

(Where 1=Never 2=Rarely 3=Sometimes 4=Often 5=Very Often)44% of the respondents claimed that they rarely changed their tea brand whereas 22% of them were of the view that they never change their brand of tea. However, 26% of the respondents would change their tea brand sometimes. It is evident from the stats that most of the consumers are brand loyal when it comes to their consumption of tea.

11) Are you aware of Tapal Danedar Envelope tea bags?

Talking about Tapal Danedar Envelope teabag, this question was asked to check awareness of consumers regarding this particular product. We can conclude from the above graph that half of the sample population is aware of the product. The percent of people who are not aware of Envelope teabags is also somewhat close to half of the population i.e. 33%. 12) If yes, have you tried the envelope tea bags?

Yes2437%

No4163%

A follow up question was asked to see how many people, who were aware of the envelop tea bags, did actually try it. In the previous question nearly 50% (35) of the respondents were aware of the Envelop teabags. Out of which 24, i.e. (68.5%) of the people had actually gone on to try the envelop tea bags.This is nearly 70% of the people which is a not a bad return, however, it is evident that the overall awareness needs to worked upon. If all respondents are considered, only 37% of the people have tried the Tapal Envelop tea bags. 13. If no, what is your perception about "Tapal envelope tea bags-King of tea bags"As we left it to the imagination of the respondents to tell us how would they perceive the statement Tapal Envelop tea bags King of Tea bags, we had a varying degree of responses. Some of the common or interesting responses are summarized below: King of tea bags shows it must be good quality and somehow different from other tea bags It probably has a unique packaging with teabags in envelops. Though the name says KING, it is not going to beat Lipton Strong Taste possibly No ideaThe purpose was to get an idea what people really think of the name given to the envelop tea bags and its slogan of King of tea bags. Although some of the people did interpret the word King as something that would be unique and possibly better than other tea bags. However, it was evident that plenty of respondents did not perceive it as something special. Secondly we had a lot of Lipton fans saying it wont be as good as Lipton regardless if they its called King of teabags. 14. Would you prefer using a teabag which is:1) staple-free, 2) microwave friendly and 3) sealed to protect moisture?

yes48- 84%

no9 - 16%

We selected three unique features of the Tapal Envelop teabags and listed them without mentioning that they were the features of Tapal Envelop tea bags. With 84% of the respondents replying with a Yes, we can safely conclude that these features are certainly useful and will add value to the product. 15. What image comes to your mind when you are presented with these products?1) Lipton2) Tapal3) AlokozayThis question was posed to see what image of these brands has been built in the minds of the consumers. This would give us a good idea of where Tapal stands against its main competitor Lipton and an emerging brand in tea bags industry, Alokozay.

LiptonMost people view Lipton as a premium brand with the best quality tea. They described Lipton as Best and Taste and quality. It clearly shows, just like quite a few of our previous questions that Lipton has positioned itself very strongly where people see it as the brand to buy.

TapalTapal received mixed responses. Although, some respondents replied by saying its good quality tea, Strong taste, but there were responses such as Red color, Village. This shows that people who have tried Tapal, like its taste and are generally satisfied. But there seems to be an image amongst other consumers, who see Tapal as a brand only for the lower class. This is where Tapal needs to work on, if it wants to position its envelop tea bags as the King of teabags and market it to the middle to high class of Pakistan.

AlokozayThe responses were general Not heard of it, No idea what that is, good color but bad taste showed that Alokozay is still some way off from both Tapal and Lipton in the tea bags industry. Therefore, Tapal may yet feel threatened by the emergence of Alokozay tea bags.

4.2 Retailer Questionnaire Analysis (Aattached- exhibit B)

We circulated the questionnaire and interviewed several retailers in Islamabad/Rawalpindi such as D-Watson, Euro Mart, Choice Mart, Shaheen Chemist, Barsa Cash & Carry, Harolds, Metro, CSD, Cosmo etc. along with some of the wholesalers in Karachi Company. Most of these retailers except for the wholesalers say that they dont keep the unbranded/open tea at their stores since their customers demand only the branded tea. The wholesalers, on the other hand, indicated that there is high demand for unbranded/open tea by hotels/restaurants, although the teabags still have high demand because there arent any alternatives available other than Tapal, Lipton, Alokozay and Vital, where consumer only demand the former two. The analysis revealed that Lipton tea bags are high in demand compared to others. Lipton is successful in all the shops/marts we visited, where it consistently outperformed Tapal. In terms of share, Lipton teabags almost double the sales with that of Tapals black tea bag and even more or when compared to the envelope tea bags. In contrast, Tapals green tea is performing well compared to its Danedar teabags and is neck to neck with Liptons green teabags. Upon enquiring regarding availability of the product, we can conclude that it is almost available in all the stores with an exception of one or two. Some of the stores also have sales rep of Tapal on the aisles to promote the product as well. But despite all these efforts, Tapal hasnt been able to increase the share of its enveloped teabags. The consumer response is still good-poor in almost all the stores taken as sample. It contributes less than 30% to Tapals black tea bag sales. When asked regarding the increased focus on promotional offers, most of the retailers responded that promotional offers are generally seen to have direct correlation with the sales of Tapals products, though Tapal hasnt really introduced any promotional offers for its King of teabag, but the recent promotional endeavors in other products, did increase the sales of those products. The analysis also showed that customers often have a predetermined choice of the brand in their mind when they come to the store, although, the retailers suggest them to buy the brands that are selling better. Lipton, being the priority of customers, creates a viral effect and consumers often get influenced by the others. In addition, it was also seen that most of the retailers convinced the customers to buy the brand that were giving them trade incentive and margin. To assume more profits, they would go an extra mile to convince the customers to get the products that increases their profits.

4.3 Taste Testing

Product testing was conducted at various places with an aim to ascertain the customer preferences. A group of people who were tea consumers were given the sample of the tea, both Lipton and Tapal. The tags from both the teabags were removed in order to get the fair responses on basis of taste, aroma and quality of tea.During the course of activity, a large majority of people liked the aroma and taste of Tapal tea, where as people thought Lipton was the stronger tea of the two products. The trends that were extracted from the activity were mixed and did not merit for prominence of one product. Thus we can deduce from this that the product quality of Tapal is in comparison to Lipton, but the market share of Lipton is far greater. It was also believed by the customers that the tea consumption depends highly upon the preference of the individual customer, some would like to consume strong tea, while others would prefer contrary. 4.4 Current TV Commercial Response

After the establishment of the fact that both products are comparable, another test was conducted, where the current Advertisement for the product was shown to group of people and their views were recorded. The aim was to establish the product perception in the mind of the consumers. The subject group was asked questions like What is your perception about the brand? After watching TVC, what do you think is the target market for the product? Do you consider this to be a premium brand, after watching TVC?

The general and common perception of our respondents was that the ad seemed family focused and their target were probably families. This corrodes customer perception of target market, which limits the sales of the product. However in true sense the product was intended to target people from upper class and upper middle class with high purchasing power. However the Ad did not capture the working class which is a huge market for the productThe responses recorded showed a trend that after watching TVC, customer did not perceive that Tapal envelop teabags as a premium brand, they complained that the TVC essentially lacked the royalty that was required out of the product.5. SUGGESTED OBJECTIVES5.1 Financial ObjectivesThe suggested financial objective for the company is to increase revenues by enhancing advertisement efforts and sales techniques. King of teabags is expected to generate sales of 103 million (PKR) by the end of current financial year. On the contrary Lipton tea bags expected sales are 2.5 billion (PKR). This Gap in sales is the opportunity for the company. The company wants to increase sales of teabags which would benefit the company in terms of increased market share and profitability. High profit margins are associated with the teabags as compared to packaged tea. These margins can be as much as 200 % and hence can greatly enhance the financial strength of the company. The increasing sales would help achieve economies of scale and also reduce the average cost and expenses incurred by the company.

5.2 Management/ PersonnelThere is a need to increase sales representatives accountability, in order to maintain company image and promote ethical selling procedures. It is also to be ensured that right reward is paid to the right performance.Increase competition and motivation amongst the sales representatives, in order to make them achieve their targets and aim at higher targets for future. Focus on employer branding to attract competent talent in the market. Tapal does not focus on the acquisition of top level talents available in the market as a result the workforce available to Tapal is not as effective as Liptons workforce. Unilever is usually the first choice of the top talent available in the market. This gives Lipton a competitive advantage of having creative and talented workforce to outperform Tapal in marketing activities.Mitigate the shortage of sales force supply to decrease the burden on existing employees and to cater for decline in sales force productivity in the specific areas. When the company has a vacant position of a sales representative in a particular area, the workload of the vacant position is divided amongst the existing employees. This results in increased burdens, less satisfaction and productivity. 5.3 ProductionProcure the highest quality of raw tea that is better than the existing highest quality brand available in the market. Since this is a premium product which is aimed at high above par taste and tea drinking experience. The product is intended to be the best amongst the teabag category.

5.4 Marketing5.4.1 Product/ servicesOur marketing objectives main focus will be to promote the product as a premium brand, keeping in view not only its tagline, King of teabags but obviously, the unique features of Tapal enveloped teabags. We aim to reposition and re-launch the product which is supportive of the whole concept of King of teabags whereby highlighting its USPs. Moreover, we are proposing the product with some modifications and improvements. Introducing the sachet enveloped teabag and improving the packaging and labeling is what we are focusing on as far as the product is concerned. 5.4.2 SalesThe sales objective is to increase Tapals market share through increased sales of this product through improved marketing efforts as well as by introducing the better or improved version of this product. Through this objective, we aim to surpass our competitor, Lipton in the north region. 5.4.3 PricingSince Tapal Danedar Envelope teabag is introduced in the market as a premium brand due to its unique qualities and being the first sealed envelope teabag in this market, hence our pricing strategy has to remain competitive. This is important because lowering the price considerably to assist sales will cause the customers to think of our product as something which does not offer anything new or is of poor quality. 5.4.4 AdvertingPromotion and advertising objectives basically pertain to increasing awareness of this particular product because increasing awareness about the product and its attributes will pull a lot of customers to enveloped tea bags. Trial generation and customer acquisition are the main aims of extensive advertising activities that the company needs to do. The ultimate objective of heavy advertising campaign is position the brand as the most superior quality product and to become market leader in tea bags category.6. SUGGESTED STRATEGIES

6.1 ProductA product has various characteristics or attributes such as size, color, design, quality, shape, weight etc. One of the characteristics/attributes that we are proposing to modify and improve of our product is the design, packaging and the size factor. Our product is Tapal Danedar Envelope teabag with King of teabags as its tagline. Product Name: We are proposing the name of the product as Tapal King with the tagline Royal awaits This is because the envelope teabags are a premium product that is differentiated from the other products, but utilizing the common name Tapal Danedar, presently being used by other teabag brands of the company. By utilizing same name, the purpose of premium positioning of the brand would not be achieved.Size: Currently two stock keeping units of teabags are available in the market as far as this product is concerned; one contains 100 envelope teabags and the other pack consists of 50 envelope teabags. In order to cater for the variety and usage element that consumers increasingly seek nowadays, we are suggesting that Tapal Envelope teabags should be introduce in another size of packet which basically contains 25 teabags apart from the large and medium size packs of teabags. The main reason for proposing this additional small size pack is to target those customers who do not consume teabags on a regular basis or those who fall into the category of light/irregular users or maybe medium users. Also, considering the family lifecycle stage, this can be an attractive option for young married couples (without children) who might be light users of teabags. Moreover, people who are price conscious might as well prefer this option since the price of the small pack will be comparatively less. Design/packaging and labeling: Secondly, we are proposing the same product with modifications in its packaging. Presently, the packaging of Tapal Envelope teabags packet is not very attractive and has some flaws pertaining to the labeling. One of the most important or integral part of any package is its labeling.

The current packaging and labeling of the product is such that it is a red box somewhat similar to the standard Tapal Danedar teabags packet. Some issues that we identified with the labeling were that, the tagline King of teabags is missing on the packaging which is a major drawback. Tapal aims at projecting the USP of its product, Envelope teabags as King of teabags. However, the fact that this tagline is missing on the packaging is a serious concern as far as increasing the consumers awareness is concerned. Secondly, the transparent window space present on the products packaging is way too small to be able to see through the box. The right packaging should include the tagline King of Tea Bags in a prominent position on the packaging. Moreover, on the envelopes, the crown should be printed too. The packaging color scheme and theme should be prominently different from the normal tea bags packaging. As previously discussed, the USP of the product was hermetically sealed envelopes of teabags, a transparent window was made on the package in order to provide clear vision to the customer. However this window is very small which hardly serves the aforementioned purpose. In order to provide clear visibility the size of transparent window should be sizeable.6.2 PlaceAs far as the placement of this product is concerned, there is not much issue due to the fact that the product is available in almost all the departmental stores of Islamabad, with the exception of one or maximum two stores. Moreover, the shelf space allocated to Tapal and its product is sufficient however, in a few cases we found out that the product was not placed onto separate racks or was not given separate shelf space. Trade incentives: The importance of retailers in the sales process cannot be undermined as customer approach to retailers for buying product. Retailers can shape the buying patterns, if they are given incentives to promote and sell the product. According to the retailers that we interviewed, they were of the view that if they are given attractive incentives, they would put in more effort to promote the product in store to its customers. Following types of trade incentives can be offered to retailers Quantity discounts: On buying of product in bulk an incentive offered to the retailers in form of discount, which reduces the cost per unit. These are also known as cash discounts. Bonus products: On buying product in bulk, an incentive offered to the retailers in the form of bonus product. These products can be the same product or any other product that the company offers. In order to avail these discounts retailers need to order a specific minimum quantity. Trade contest: a competition will be generated amongst the retailers or whole sellers in an area, whereby rewarding the retailers with highest sales figures. This will induce competition and every retailer will strive to attain highest sales. Incentives like cash, sponsored trips and free products are common reward of a trade contest.This practice encourages the retailers to purchase larger quantities, which in turn increase sales and retailers profit margins. For a product that is not purchased frequently, quantity discounts are most appropriate method to incentivize the retailers, as they are widely accepted by retailers.Out of Category Display: The out of category display is when the product is displayed at a prominent place in the store. This placement will increase the visibility of the product which would increase the probability of selling the product. Shelf Space: Tapal can also promote itself by having attractive shelves dedicated to its envelope tea bag to generate point of purchase sales. It should be the first thing that a customer notices on entering a store.6.3 PromotionOne major issue with Tapal is ineffective advertising and in most cases, insufficient advertising. They have not focused on creating brand awareness for their envelop tea bags at all. When asked, many people did not even know that the product existed. It looks like Tapal is not putting in enough effort into devising a smart marketing strategy. The major customers of Tapal are avid users of social media and Tapal has no presence there. By checking their page on facebook we saw that Tapals last update was in 2012! After that the page has practically been dead. In contrast, Lipton has great social media presence. It continuously keeps in touch with its customers, keeps updated and is building long term relationships with its customers.Tapal should design an effective marketing campaign and should use a variety of mediums to advertise their new product. One noticeable fact about Tapals advertising is that all of its ads are family oriented. Sure, there is nothing wrong with that but they need to understand that more than often different products have different markets there is no one kind of advertising focus that would work for all product markets. For Tapals envelope tea bags we found out after the survey that most of the sales for teabags come from upper class and upper middle class which is inclusive of elite working class. Therefore, they are the core consumers and should be exposed to relevant marketing and advertisements, something they can relate with.Tapal should also use attractive hoardings, roadside hoardings, print and digital ads. Above the Line, Below the Line and Trade Promotions:TV Commercial: The TV commercial needs to project the image of a premium brand which is not very sophisticated, offers high quality tea which could be made conveniently. The advertisements should be informative yet interesting for the target market. In the initial days of re-launch, the frequency of advertising should be very high.Billboards: Billboards or hoarding advertising in another medium to increase awareness about the product and promote its unique selling propositions. Billboard advertising should be placed selectively in areas trafficked with upper class and upper middle class people, such as Jinnah Super, Blue Area and F-sectors of Islamabad.Print Advertisement: Magazines such as Newsweek, Daily Times, Fashion Central, Herald etc, could be used as effective mediums to promote enveloped tea bags to the target market. Such magazines are trendy, information intensive, mostly read by working class, upper class and upper middle class, and cover the formal and casual reporting for the target market.Social Media: Its facebook page is a great and inexpensive way to connect to thousands of consumers and ask for feedback, opinions and encouraging constructive criticism because it will be able to bridge the gap between what it is offering and what the consumers demand. The social and mobile media can be used for generating word of mouth and viral marketing/promotions. Using viral videos, teaser ads and generating viral buzz can provide intended promotion to the product.Consumer Incentives: To stimulate sales, it can also have online contests like its competitors do, such as dip and win (a lucky draw kind of thing), picture your tea moment contests(where the contestant can take a picture that best describe her/his special tea moment and get people to vote her/him in order to win). Contests like these will not only draw attention to Tapal and increase the awareness but also help in generating sales. This can also be supplemented by the gifts and other incentives provided on sale of Tapal teabags. It is worth mentioning that during the course of research we found that sales of products were increased by provision of gifts. Stalling: This type of activity is carried out at a market place or a mall where the consumers are attracted towards the stall and offered to try/ taste the product. As we are projecting king of tea bags as a premium brand the theme should complement the brands image.Corporate promotion: In order to increase the awareness of the products and the values it offers to the customers, Tapal can arrange activities in large corporate offices by providing sample tea bags. This can also be augmented by providing brand labeled hot water dispensers at the offices. Such sampling activities can also be targeted at hotels and restaurants to promote the brand.6.4 PricingTapal teabags are available in the two sizes in the market; the market price of both packages is shown in the table below. It is however analyzed during the course of this project that the price of Tapal teabags is higher. Keeping into consideration the prices of Lipton teabags we have proposed new pricing of the current products, plus an addition to existing packaging size. StatusQuantityCurrent PriceProposed Price

Existing100380350

Existing50200185

Proposed (New)25110100

We have proposed package in a smaller size, containing 25 tea bags, priced at Rs.100. The point in doing this is to attract customers by low pricing and offering a more convenient pack which is fit for consumption by a single person. Its a matter of fact that todays very demanding and savvy customers like to have variety and several options so this tactic will help in generating sales. 6.5 PeopleAs mentioned above, loss in sales might be a consequence of ineffective sales force. Tapal needs to see which consumer segment accounts for the greatest sales and should make them its core target market. According to the results of the survey, as it already been mentioned above, the main buyers of tea bags belong to the elite working class who are always on the go, seek convenience and want to save time. Another promising segment is that of housewives who have also shown interest in the product. Housewives are Tapals potential customers because they do most of the grocery shopping; the sales team should be properly trained and informed about the target market, so as to maintain their subsequent selling techniques. Sales representative and promoters is the ones directly in contact with the customers who can make an impression of the product. Effective sales representative and promoters would result in customer satisfaction, various techniques that can be utilized are as followsTraining: Periodic training must be given to the direct sales representatives and store interceptors. The training should not only impart selling techniques but should also endeavor to improve interpersonal communication skills. Mall Interceptors should be located at stores, where they would provide product benefit awareness to the customer and will prone them to make a purchase. However the aforesaid objective can only be achieve when the training of interceptors is effective in developing highlighted skills.7. PROJECTIONS7.1 Anticipated costsMost of the costs would be incurred from the promotional activities. From TV commercials to Billboards, the estimates of all the costs are mentioned below. These are only estimates as the costs would depend on a number of factors such as frequency, duration and length of the campaign.TV commercial: The costs of making a new TV commercial would vary considerably according to our locations and other related costs. After speaking with different advertising agencies, a good commercial would cost approximately Rs. 15 million. However, a considerably amount will go towards the celebrity that is hired. We would suggest, Shaan, the Pakistani actor, in a lead role for our commercial. This would cost an additional Rs. 10 million. Therefore, Total Cost = 25 million.Print Advertisement: At the time of re-launch we would take the front page space of The News and Dawn. This would approximately cost us Rs. 2 million together. For the first month after launch, we would advertise in the newspaper regularly but only on weekends will the front page advertisements be used. Therefore, it comes down to Rs. 8 million plus regular advertisements for a total of Rs. 10 million. For magazines, it would cost us between Rs. 50,000 to 100,000 to advertise on one page (other than front page). However, for a front page it would cost Rs. 150,000. We would take both options for a number of magazines (5 approximately). [Monthly Cost = (150,000 x 5) + (75,000 x 5) + 10 million = Rs. 11 million]Billboards: We would be placing our advertisements on prime locations, such as the F-sectors of Islamabad and Blue area. It would cost Rs. 500,000 for one month. The number of billboards in Islamabad/ Rawalpindi that would be rented would total to approximately 12. [Monthly Cost = Rs. 6,000,000]Cost of running TV commercial: Running a 45 second TVC on one of the major channels such a GEO or ARY will cost between 20,000- 150,000 during prime times (7pm 10pm).As we would be running over 20 TVCs per channel (8 channels), therefore, the cost per channel for a day would approximately be 20 x 85,000 = 1,700,000. However, this extensive marketing will gradually be trimmed for the following months. [Monthly Cost for 8 channels = 1,700,000 x 8 x 30 = Rs. 408,000,000 i.e. Rs. 408 million]. Below the line (BTL) Activities: BTL activities include having stalls, store interception, trial tasting etc. These activities will be outsourced and will be carried in all the major points in both Islamabad and Rawalpindi. The combined cost for both cities will be Rs 5 million for a month. StrategiesCost (Rupees)

1. Making of a TVC25 million

2. Print Advertisement11 million

3. Billboards6 million

4. Running of TVC on Major channels408 million

5. BTL activities5 million

Total Cost455 million

The above chart shows the cost associated with the marketing activities carried out in the very first month of re-launch of Tapal Envelop tea bags. 7.2 Expected ResultsWe have decided to use the ATAR model to predict some results. The data collected from surveys was used in this model. ATAR (Awareness, Trial, Availability, Repeat) ModelThe ATAR model provides a framework to help estimate the adoption rate in each year. The ATAR model is based on concept of Diffusion of Innovation. For a person to become a regular purchaser of the new product they must first become Aware that it exists. Once they have become aware of it they must make the decision to Try it out. In order to try it out, it must be Available for them to purchase. If they are happy with the trial then they may decide to adopt the product, that is, Repeat the purchase again. To calculate our target number of units to be produced we look at the total population of Islamabad and Rawalpindi region, which is approximately 2 million and 5 million respectively. According to Pakistans Demographics statistics, 65% of the population is above the age of 15. And for the age group of 15 and above, 85% are usually tea drinkers. Therefore, 7 million x 0.65 x .85 = 3.87 million populations can be considered as tea drinkers in Islamabad and Rawalpindi combined. However, only 3.2% of the total tea drinkers make use of teabags. That leaves us with a total of => 3.87 x 0.032 = 123,840 people.The per capita tea consumption is Pakistan is 1kg. As a tea bag contains 2 grams of tea, to ensure 1 kg of sale, we need to sell 500 tea bags. Therefore, our target market in terms of units sold should be:123,840 x 500 = 61.92 million tea bags, Price per tea bag = Rs. 3.8Using the information collected from our surveys we can forecast the following percentages:Current PercentagesForecasted Percentages

Awareness45%75%

Trial60%80%

Availability60%80%

Repeat40%60%

Therefore, the percentage of market that will be adopted following our Marketing campaign would be:61.92 x 0.75 x 0.80 x 0.80 x 0.60 = 17.83 million teabags. In terms of revenue it will generate 17.83 x 3.8 = Rs. 67.75 million for Islamabad/Rawalpindi region alone. 8. CONCLUSIONAfter carrying out detailed primary and secondary research, we come to this conclusion that the product, Tapal Envelope teabag has not been able to capture the desired market share due to its poor promotional strategies which accounted for reduced visibility and awareness. Despite the fact that Tapal Envelope teabags are available at almost all departmental stores, Tapal has been unsuccessful to generate sales from this product. The main problem lies with the way it is marketed; envelope teabags were initially launched as a premium brand since it is a differentiated product which is not being offered by its competitors. Moreover, the lesser frequency of the advertisement on media also accounted for reduced level of awareness of the product. Some of the proposed strategies include improved product packaging and labeling, an informative yet interesting advertisement, roadside hoardings, increasing activity and presence on social media platform, giving consumer incentive to stimulate sales, corporate promotion etc. The suggested strategies we propose, aims at improving the marketing efforts in order to increase product visibility and develop brand likeability; this would generate sales, improve profit margin and eventually prove to be a successful product.

Exhibit A - CONSUMERS QUESTIONNAIREGendera. Maleb. FemaleAgea. 18-22b. 23-27c. 28-32d. 33-36e. 37-41f. 42 and aboveIncome a. Rs 25,000/monthb. Rs. 25,001 50,000/monthc. Rs 50,001 100,000/monthd. More than Rs. 100,000/month

1) What kind of tea do you usually consume?a. Brandedb. Non branded

2) What is your favorite tea brand?a. Liptonb. Tapalc. Booke Bond Supremed. Islamabad teae. Other (Please specify) __________________3) Rate the following attributes from most important to least important when it comes to selecting a particular tea brand. (1 being least important and 5 being most important)123 4 5

Taste

Aroma

Color

Price

Brand name

Packaging

4) Which method do you use MOST frequently for making tea?a. Tea bagsb. Loose leaf tea (Brewing tea the traditional way) 5) Which brands teabags do you use?a. Alokozayb. Tapalc. Liptond. Other (Please specify) _______________6) Which of these products is easily available in the market?a. Supremeb. Lipton tea bagsc. Tapal teabagsd. Other ________________________7) Which tea brands advertisements on TV are entertaining?a. Supremeb. Liptonc. Tapald. Vitale. Other _________________________8) Are you aware of Tapal Danedar Envelope tea bags?a. Yes b. No9) If yes, have you tried the envelope tea bag?a. Yesb. No

10) If no, what is your perception about Tapal envelope tea bags King of tea bags?______________________________________________________________________________11) Which of the following best describes your tea usage/consumption?a. Frequent/Regular Tea drinkerb. Occasional Tea drinkerc. Special Teas only (Green/Herbal/others)d. Dont drink tea

12) How do you like your tea?a. Weakb. Mediumc. Strongd. Very Strong

13) How often do you change your tea brand?a. Very Often b. Oftenc. I do not change the tea brand

14) Would you prefer using a teabag which is 1) staple-free, 2) microwave freindly and 3) sealed to protect moisture?

15) What image comes in your mind when you are presented with these brands? a. Lipton Teabags _____________________b. Tapal Teabags ____________________c. Alokozay Teabags __________________

Exhibit B - RETAILERS QUESTIONNAIREStore name _______________________________________1) What kind of tea accounts for the highest sales? a. Branded b. Unbranded (loose tea)2) Which brands tea bags are mostly purchased by consumers?a. Lipton tea bagsb. Tapal tea bagsc. Alokozayd. Islamabad teae. Vitalf. Others _________________________3) Which branded tea bags and what category of these tea bags are most sold at your store/most preferred by customers? (please tick the appropriate box)Tea brandType of tea bags

Green teaBlack tea

Lipton

Tapal

Alokozay

Supreme

4) Do you have Tapal envelope tea bags at your store?a. Yesb. No.5) If yes, what has been the response of consumers regarding Tapal envelope tea bags in terms of sales?a. Excellentb. Very goodc. Goodd. Poor 6) What is the effect of price on sales of the tea? Would customer still buy if price is higher?______________________________________________________________________________________________________________________________________________________7) What is the effect of promotional offers on sale of tea? Do promotional offers increase sales?______________________________________________________________________________________________________________________________________________________8) How much does placement of the product affect the sales of the product?______________________________________________________________________________________________________________________________________________________9) Do the customers search for the required product or buy whatsoever they find first?___________________________________________________________________________EXHIBIT 3: PRINT AD