Lipton

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Chapter 1

1.1 Introduction of the project


Now a days tea becomes the basic need of people. Everyone is having
almost two to three cups a day. There are different tea brands in Pakistan
and they gave very tuff time to each other. It is very difficult to measure
which one is on the top of the list. The main objective of doing this project is
to evaluate what is the first choice of customers when the word tea comes
into his/her mind.
A mature brands of tea Lipton yellow label and Tapal danedar will be selected
to compare each other with respect to

Taste
Color
Aroma
Price
Customer satisfaction
Customer choice
Brand loyalty
Brand awareness
Etc

1.2 Objectives

This project aims to address the following objectives


To evaluate the strategies used by the companies Lipton and Tapal
danedar to target the consumers.
To review the factors that had changed the trend of tea consumption in
context of Pakistan
To evaluate consumers' perception and consumption pattern on tea in
FSD

Another main objective of this project is to identify that how much tea is
important for the customers and what will be the first brand come to the
customer mind when we are talking about tea. Those factors will be
identified on the behalf of one to one meetings, surveys, questionnaire, etc.
This study tells us the leading brand of tea and why people like this.

1.3 Significance
This project is helpful and beneficial in every field. Customers tea preference
will be identified. This is true all tea brands are parallel to each other and no
one bother the tea brand while drinking. So with this project brand conscious
people regarding tea will be highlighted.

1.4 Competitors Analysis


Tea is a basic need of every one. There are so many rival competitor in this
industry like Lipton yellow label, Tapal danedar, Deer tea, Brooke Bond, Vital
tea, Supreme and etc. they gave very tuff time to each other.

1.5 Data collection Tool


For primary data

Surveys
Questionnaires
Interviews

For secondary data

Internet
Websites
Previous reports

Chapter 2
2.1 Introduction of Unilever
Unilever a leading multinational corporation has multifarious brands that
inherent consumer products on a large scale and involve in manufacturing
gigantic operating in hundred countries all over the world. Unilever's has
been moved by the significant circumstances of the day like economic boom,
rapid change in technology, depression, people's lifestyle, and recession.
Unilever was original established in 1930 by the consolidation of soap maker
Lever Brothers and margarine maker. In 1930 the Unilever business
propagate and new enterprise were inaugurated in Latin America. They are
invariably increasing their products to provide more intense, extraordinary
development. Unilever's have five laboratories all over the world, which
scrutinize new techniques to make more improve. Unilever's purpose is to
set the highest standards of organizational behavior including everyone they
work with.

2.2 Recent History of Unilever


The recent history of the Unilever is how they successful leading in recent
years until now the committee has provided a proper way to collect the data
and how to measure performance, but most of the management left to the
country units. Recently they layoff many of their employees in order to cut
the cost but this scenario has taken place in some of the countries who are
facing recessionary period which greatly affected their product cost, supply
cost, and other cost as well. As a result Unilever had faced high competition
in the business, and they manage successfully in the difficult time, they

didn't compromise in giving quality product in order to satisfy their


consumers, and will be manage successfully in the subsequent years

2.3 Origin of Tea


The history of tea is long and complex, spreading across multiple cultures
over the span of thousands of years. Tea likely originated in southwest China
during the Shang dynasty as a medicinal drink. An early credible record of
tea drinking dates to the 3rd century AD, in a medical text written by Hua
Tuo. Tea was first introduced to Portuguese priests and merchants in China
during the 16th century. Drinking tea became popular in Britain during the
17th century. The British introduced tea production, as well as tea
consumption, to India, in order to compete with the China monopoly on tea.

2.4 Background of Lipton Tea


Lipton was created at the end of the 19th century by Sir Thomas Lipton in
Glasgow, Scotland. His enterprise soon flourished and he established a chain
of grocers, first across Glasgow, the rest of Scotland, until finally he had
stores throughout Britain. Under the slogan "direct from the tea gardens to
the tea pot", this entrepreneurial businessman wanted to make tea a popular
and approachable drink for everyone with a high quality but reasonably
priced product. In 1929, the Lipton grocery retail business was one of the
companies that merged with Home and Colonial Stores to form a food group
with over 3,000 stores. The group traded as Home and Colonial Stores until
1961 when it took the name of Allied Stores. Lipton's became a supermarket
chain focused on small towns, before Alliers 1982acquisition by Argyll
Group: the supermarket business was rebranded as Presto during the
1980s.Meanwhile, the Lipton tea business was acquired by consumer goods
company Unilever in a number of separate transactions, starting with the
purchase of the US and Canadian Lipton business in 1938 and completed in
1972 when Unilever bought the remainder of the global Lipton business. In
1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton
Partnership, for the marketing of ready to drink (bottled and canned) teas in
North America.
This was followed by a second joint venture, Pepsi-Lipton International (PLI)
in 2003, covering many non-US markets. PLI was expanded in September
2007 to include a number of large European markets. PepsiCo and Unilever
each control 50% of the shares of these joint ventures. Due to the 2008
Chinese milk scandal, food giant Unilever started recalling its Lipton milk tea

powder in both Hong Kong and Macau on 30 September 2008.The tea


powder which used Chinese milk powder as its raw ingredient was recalled
after the company's internal checks found traces of melamine in the powder.
Lipton's main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Other
product lines exist as well, like the Lipton pyramid range in Europe and North
America, and Lipton Milk Tea in East Asia. In 2008 the brand launched Lipton
Linea in Western Europe, a green tea variety with a higher level of
catechism, which the company claims can help one lose weight.

2.5 Tea in Pakistan


Drinking tea defines our culture as well as history. Around 95% of the total
worlds population is relatively familiar with tea, its strong and sensational
aroma and its soothing, yet slightly bitter astringent flavor (taste). After
water, tea is the most widely-consumed beverage in the world. In Pakistan,
almost every 10th person is a tea addict and undoubtedly feels proud of this
addiction (and I am now one of them too, and a proud one). May it be the
light yet effective green tea, the slighting of lemon tea, the amazingly sab
Ki favorite doodh patti, the occasional Kashmiri Chai, or the delicacy of
herbal tea, we all love and adore tea.

2.6 Mission Statement of Lipton Yellow Label Tea


To meets every day needs of everywhere to anticipate the aspiration of our

consumers and customers to respond creatively and competitively with


products which raise the quality of life.

2.7 Vision Statement of Lipton Yellow Label tea


Lipton vision is to available within an arms reach of every individual desire

Lipton in Pakistan
Lipton was launched in Pakistan in 1948 and is one of the oldest brands
in the country.
Lipton world of tea blending in Pakistan and around the world means
only two things;
Quality & Reliability.

2.8 Lipton Portfolio in Pakistan

2.9 Marketing Mix of Lipton Yellow Label tea


Product
Lipton Yellow Label has a brand image in the mind of consumer as
handpicked close to the bud for best quality tea and finest taste. They
believe that quality is a way of life to us. Lipton have following products in
the market.

Price
Lipton Yellow label never compromised on quality so they adopted value
based pricing.

Placement
Lipton Yellow label has distribution network across Pakistan.

Its popularity in Pakistan make it No1 Brand in country.


It is available at more than 180000 outlets in Pakistan
Lipton has its Head quarter in Karachi and 650 distribution offices all
over the Pakistan
Distributor Channel of Lipton

Promotion
The Lipton does it promotion in following
ways:
Advertisement
Personnel selling
Sales Promotions
Internet Marketing
Publicity
Co-branding
Marketing Channels

TV
Newspaper
Broaches
Magazines
Bill boards
Special promotions or packages
Internet marketing
Bus branding
Merchandising
Sponsorship

Associate with music, musicians and TV actors


In previous ads they used singers like Nazia Hassan and Zohaib Hassan,
Meesha Shafi, Arif Lohar and Ali Zafar. Currently Lipton is working with
Hamza Ali Abbasi, Ayesha Khan and Maya Ali in their new add.

2.10 Segmentation, Targeting and Positioning


Segmentation
Lipton segmentation is base on

Geographic
segmentation
areas(rural, urban)}

Demographic segmentation {Age (18-60+),Income


(10000 above), family size, Social class(higher-middle
class, middle class, lower middle class)}

Psychographic
believers)}

Behavioral segmentation {Usage


Awareness status (aware ,interested)}

Targeting

segmentation

{Countries,

{life

cities,

style(Achievers,
rate

(daily),

In Pakistan, they focus more on urban areas (offices,


hotels, restaurants, caf and banks) where people prefer
light tea.

Lipton target market involves specifically females in


Pakistan

Promotion
Lipton tea has been positioned in the market as great tasting
and good for consumers
In order to position its target market, Lipton taken some
successful steps, such as

Acquired by Unilever

Joint ventures with Pepsi

SWOT Analysis
This SWOT Analysis of Lipton provides a strategic SWOT analysis of the
company's businesses and operations. This free SWOT analysis shows
strengths, weaknesses, opportunities and threats. This SWOT analysis of
Lipton can provide a competitive advantage.

Strengths

high growth rate


skilled workforce
barriers of market entry
domestic market
experienced business units

Weaknesses

brand portfolio
small business units

Opportunities

growing demand
global markets
new acquisitions
new products and services

Threats

increasing rates of interest


price changes

Strategies followed by Lipton Yellow label Tea


Market Strategies for Lipton:
Its target market includes all age groups except children. They are operating
in more than 110 countries therefore the target market is a global village
that consists of people with different cultures, habits & food. But as history
tells that tea has been traditional drink of all
cultures therefore the tea itself creates its own
place in the minds of target market. In Pakistan
they focus more on urban areas (offices, hotels,
restaurants, caf, and banks) where people prefer
light tea. It captures 85 %share in this area.
Market Scope Strategy:
Lipton using multiple product strategy. Because it
have several types of products like Lipton yellow
label tea, Lipton ice tea, and Lipton green tea.
Market Geographic Strategy:
They are using International Market Strategy to
achieve growth objective.
Market Commitment Strategy:
They are focusing on strong commitment strategy to operate in market
optimally by realizing economies of scale.

Price Strategy
Unilever is charging comparatively high prices for Lipton Yellow Label tea
because of its well-built reputation and quality product. They have major
share inthe market and they are at top although they are facing competition
but due to their name in market they are earning higher profits.
Distribution Strategies
They have distribution offices in different cities from where product is
distributed to whole sellers. They have divided areas into regions and then
made distribution channels according to the demand of different regions and
in this way their distribution network is working
successfully all over the Pakistan.
Distribution Channels

Head quarter in Karachi


It has 650 distribution offices all over Pakistan.
3 manufacturing Units in Karachi, Khaniwal &
Raheem Yaar Khan.
7 distribution channels in Lahore alone.
25 outlets in various places of Lahore.

Promotion Strategies
They are promoting their product by using different sources like:

Caps
Cups
Besant festival
Vans
Printed Helmet
Discounts
Gifts so in this way they are promoting
their product.

Advertising Strategies
Various advertisement means are used by company to advertise their
product and they are given below:

Print Media
TV Satellite
Bill boards

Banners

They are using newspapers for advertisements along with television others
are billboards and banners. So these are means of advertisement which are
used by company to advertise their product.

Market Share

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