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    Tapal leveraged the brand equity of its flagship Tapal Danedar brand by launching the instant tea as an extension of that brand rather than a new brand. The marketing mix focused on sampling in major cities to generate word-of-mouth, along with billboards, print ads, and a Facebook campaign targeting urban and digital audiences. Rather than a television campaign given limited distribution, most of the budget was spent on sampling to help drive awareness and trial of the new product.

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    Quiz 2

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    Tapal leveraged the brand equity of its flagship Tapal Danedar brand by launching the instant tea as an extension of that brand rather than a new brand. The marketing mix focused on sampling in major cities to generate word-of-mouth, along with billboards, print ads, and a Facebook campaign targeting urban and digital audiences. Rather than a television campaign given limited distribution, most of the budget was spent on sampling to help drive awareness and trial of the new product.

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    Tapal leveraged the brand equity of its flagship Tapal Danedar brand by launching the instant tea as an extension of that brand rather than a new brand. The marketing mix focused on sampling in major cities to generate word-of-mouth, along with billboards, print ads, and a Facebook campaign targeting urban and digital audiences. Rather than a television campaign given limited distribution, most of the budget was spent on sampling to help drive awareness and trial of the new product.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    63 views2 pages

    Quiz 2

    Uploaded by

    Mahnoor
    Tapal leveraged the brand equity of its flagship Tapal Danedar brand by launching the instant tea as an extension of that brand rather than a new brand. The marketing mix focused on sampling in major cities to generate word-of-mouth, along with billboards, print ads, and a Facebook campaign targeting urban and digital audiences. Rather than a television campaign given limited distribution, most of the budget was spent on sampling to help drive awareness and trial of the new product.

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    of 2

    Published in Jan-Feb 2016

    Instant in a cup of tea


    Ayesha Shaikh

    Tapal launches instant tea to their product portfolio of over 20 leaf and dust tea variants.

    The tea industry in Pakistan is projected to grow at a Compound Annual Growth Rate (CAGR) of eight percent
    (Source: Pakistan Bureau of Statistics, 2015). This is attributed to increased interest in new tea consumption
    formats (think teabags). Keeping this market dynamic in view, Tapal recently re-launched their instant tea, under
    the umbrella of their flagship brand Tapal Danedar.

    Accounting for 50% of the total tea market in Pakistan (in terms of consumption), the branded tea category is
    dominated by Tapal (over 50% market share) and Unilever’s Lipton. In the last three years, Eastern Tea Company’s
    brand Vital has emerged as a significant third player.

    With in-house market studies confirming that a majority of Pakistanis now have a preference for ready-to-consume
    products and beverages, Tapal decided to add instant tea to their product portfolio of over 20 leaf and dust tea
    variants.

    This is not Tapal’s first foray in the instant tea category. The company first launched their instant tea – Instea – in
    2009, as a standalone brand. However, the brand failed. Khurram Koraishy, GM Marketing, Tapal, says Instea failed
    “because there were problems with the packaging which caused the tea to go bad and we had to withdraw it from
    the market. Also, six years ago, the concept of ready-to-drink tea was too new for Pakistani tea drinkers and this too
    contributed to the failure.”

    According to Koraishy, thanks to the inroads made in the urban market by instant coffee and ready-to-eat frozen
    products, the concept of instant hot beverages in no longer novel, which is why Tapal re-entered the instant tea
    category at the end of last year.

    He adds that “the market is likely to be a lot more receptive to the idea today and winter is always a good time for
    new launches in the tea market as there are more chances to increase product acceptance and adoption.”

    To avoid the mistakes of the past Koraishy says that “our priority was to get the product composition and packaging
    absolutely right.”
    Consequently, considerable time and money was invested in product development. There were several cycles of
    product trials and Tapal’s blenders formulated different ones, by varying the amounts and kinds of sugar and milk
    used. It took several months of in-house sampling after which the formulation was finalised.

    Koraishy identifies two primary differences between Tapal’s first instant tea initiative and the recent launch.

    Firstly, instead of opting for a new brand launch as they did with Instea, 3 in 1 Instant Tea was launched as an
    extension of Tapal Danedar in order to leverage the equity the brand enjoys.

    Secondly, an important change was made in the ingredient makeup. While Instea was a regular cup of black tea with
    a designated amount of sugar with Nestlé EveryDay pre-added, elaichi (cardamom) was added to the new 3 in 1
    Instant Tea, while Nestlé EveryDay was replaced by premium quality imported milk. The addition of elaichi was
    prompted by research findings that revealed that tea is rarely consumed on its own in Pakistan and almost 30% of
    tea drinkers use elaichi as an additive due to its distinct taste and fragrance.

    Carrying a tagline of ‘Your Taste on the Go’, Tapal Danedar 3 in 1 Instant Tea has been positioned as ‘your cup of tea
    when you are out of home’. Or as Koraishy puts it: “our USP is convenience – we save people the time and hassle of
    mixing all the ingredients typically needed to brew a cup of tea.”

    Despite the addition of cardamom (the third most expensive spice in the world), keeping the product affordable was
    an important consideration. According to Koraishy, “although as of now Tapal is the only branded player in the
    instant tea category, we will be competing against the popular doodh patti sold at dhabas across Pakistan.” As a
    result, the product has been launched in only one

    SKU, a sachet, which is good for one cup of tea, and priced at a very affordable Rs 25 – approximately the same price
    as a cup of doodh patti in Pakistan’s urban centres.

    In terms of the media mix, Tapal has traditionally maintained the ATL: BTL ratio for its marketing campaigns at 40:60,
    Koraishy says that “from the onset, we were aware of the fact that this budget split will not be effective for 3 in 1
    Instant Tea.”

    As the product is only available in four cities (Karachi, Lahore, Islamabad and Rawalpindi), Tapal decided to forego a
    TVC due to the excessive costs of producing and airing it. In Koraishy’s opinion, “a TVC is warranted only when a
    brand is available across the rural-urban divide.”

    Consequently the campaign brief provided to IAL Saatchi & Saatchi (Tapal’s creative agency) was to design billboards
    and standees and a few print advertisements.

    “The major chunk of the budget,” says Koraishy, “was spent on sampling in Karachi, Lahore, Islamabad and
    Rawalpindi so as to generate positive word-of-mouth. We also devised an engaging digital campaign on Facebook as
    our target audience is both urban and digitally savvy.”

    Speaking about market response, Koraishy says that to achieve the sales targets that have been set, there are several
    challenges Tapal will need to deal with effectively. Firstly, as 3 in 1 Instant Tea is not a high-value, high-volume
    product compared to mass market brands like Tapal Danedar and Tapal Family Mixture, convincing retailers to stock
    the product, preventing stock-outs and maintaining the interest of the sales team in pushing the product in the long
    run are all crucial factors. Secondly, Tapal is offering a standardised alternative to a beverage that is a highly
    personal and emotive product for Pakistanis; it cannot be concentrated or diluted and contains a fixed amount of tea
    and milk. The deciding factor in the success of 3 in 1 Instant Tea, in Koraishy’s opinion, will be the number of people
    willing to compromise on the taste they are used to in exchange for an unvarying, ready-to-drink formulation while
    away from the convenience of their home.

    ANSWER THE QUESTION

    1. Explain the elements of the marketing strategy and the marketing mix used by Tapal in the launch of Tapal
    Danedar 3 in 1 instant tea

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