29481555 Final Report Zainab Lipton

7/30/2019 29481555 Final Report Zainab Lipton

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Positioning Statement & Market Analysis

Prepared By:

Ariba Mehtab : 11059

Zainab Anwer Noorani : 11480

Report On :Lipton Yello Label Tea

Class M.B.A (Morning) 9:00 to 12:00

Submitted To : Mohammead Azam Khan

Announced date: Tuesday, 16thMarch, 2010

Due Date: Tuesday, 06thApril, 2010


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Table of Contents

Contents: Page#

1. 1 Positioning Statement Of Lipton Yellow Label 4

2. Introduction Of unilever 5

3.Product Category

y History of Tea 6 & 7

y Tea In Pakistan 84. Executive summary 9

5. Product Name Lipton Yellow Label 10, 11 & 12

6. Overview Of Pakistans Tea Indusrty 137. Target Marketing 14

8. Statement of need or opportunity 15

9. Core benefit proposition 15

10.

Market Segmentation of Lipton Yellow Label 16 & 1711.SWOT Analsis Of Lipton Yellow Label 18 & 19

12.Primary Competitive Alternative 20 & 21

13.Primary Point of difference of Lipton Yellow Label 22 & 2314.4Ps of Marketing Lipton Yellow Label 24 to 29

15.Positioning of Lipton Yellow Label 30

16.Brand Repositioning & its types 31

17.Brand Repositioning of Lipton Yellow Label 32 & 33

18.Questionnaire for consumers 34

19.Summary of findings 3520. Graphs 36, 37

21.Thank You 38


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Acknowledgement

The profound Thanks goes to ALLAH Almighty ,most gracious most merciful whom

alone we worship and ask for help.

This report was arguably one of the most painful yet thrilling experiences in this

semester. There were times when we were thankful, times when we werefrustrated, and times when we were filled with disbelief and at last we were

successful in fulfiling our task and we have an above average report for you all to

read.

Thanks to Allah for giving us the skill as well as the will to survive with our heads

held high throughout.We would also like to Thank our Teacher Dr.Mohamed Azam

Khan (Principles of Marketing) who have been providing guidance and suport during

the whole process of our report. To our parents and family who have supported us,our salutes!

Thanks to those anonymous angels at Lipton who helped us get information about

the industry.

Making this report has immensely helped us in understanding the skills of

Marketing. Thanks!

And finally thanks to those cups of tea weve l had during this report!!

Sup Assignment & Project POM for MBA Spring 2010


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1:- Name: Ariba Mehtab Reg. No. 11059 Sec/Day Tuesday 9:00-12:00

2:- Name: Zainab Anwer Noorani Reg. No. 11480 Sec/Day Tuesday 9:00-12:00

POSITIONING STATEMENT OF LIPTON YELLOW LABEL

For all age group people belonging to middle, upper middle & upper.

(Target customer)

Who want active and refreshing life style for themselves and their famalies.

(Statement of need or opportunity)

The LIPTON YELLOW LABEL is a tea

(Product name (Product category)

That has taste. Flavor,colour and aroma.

(Core benefit proposition)

Unlike TAPAL

(Primary competitive alternative)

Our product has high ethical value and has good taste.

(Primary point of difference)


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Introduction Of unilever

Unilever is one of the worlds greatest consumer goods company and lipton yellow

label is a product of Unilever.They sell around 150 million products a day,whichmakes them worlds largest food businesses and a leader in Home and Personal Care

markets.There brands meet people everyday needs for nutrituion, hygiene and

personal care and they are obsessed with developing new products that reflect theway that people likes and tastes are changing.

Location:

Unilever Pakistan Limited.

Avari Plaza,Fatima Jinnah Roas Karachi.


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Product Category:-

The product category of our product is tea.

Historyof Tea

Originof Tea Legend Mythsand Facts

After water, tea is the most widely-consumed beverage in the worldIt has acooling, slightly bitter, astringent flavour which many enjoy. There are at

least six varieties of tea: white, yellow, green, oolong, black and pu-erh [6] of

which the most commonly found on the market are white, green, oolong andblack.[7] All teas are made from the same species of plant, though different

varieties may be used, and the leaves are processed differently, and, in thecase of fine white tea, grown differently. Pu-erh tea, a post-fermented tea,

is also often used medicinally.[6 ]

First Discovery

According to Chinese mythology, in 2737 BC the Chinese Emperor, Shen

Nung, scholar and herbalist, was sitting beneath a tree while his servant

boiled drinking water. A leaf from the tree dropped into the water and ShenNung decided to try the brew. The tree was a wild tea tree. There are many

authentic and supposed references to tea in the centuries before Christ,according to the Chinese dictionary dated circa 350 AD. The Chinese t'uwas often used to describe shrubs other than tea, hence the confusion when


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Confucius allegedly referred to tea or t'u when writing about the "sow

thistle" plant in the Book of Odes.

From the earliest times tea was renowned for its properties as a healthy,

refreshing drink. By the third century AD many stories were being told andsome written about tea and the benefits of tea drinking, but it was not until

the Tang Dynasty (6818 - 906 BC) that tea became China's national drink

and the word cha was used to describe tea.

The modern term "tea" derives from early Chinese dialect words - such as

Tchai, Cha and Tay - used both to describe the beverage and the leaf. Knownas Camellia sinensis, tea is an evergreen plant of the Camellia family. It has

smooth, shiny pointed leaves which look similar to the privet hedge leaf

found in British gardensTHE TEA PLANT

There are more than 1,500 teas to choose from more than 25 differentlisted countries around the world but the main producers are India, Sri

Lanka, Kenya, Malawi, Indonesia and China. It is cultivated as a plantation

crop, likes acidic soil and a warm climate with at least 50 inches of rain perannum.

Other factors affecting flavor characteristics are the methods of

processing and, of course, the blending together of teas from differentareas and regions OR the additions of flowers, fruit, oils, herbs or spices

from other plants.


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TeaInPakistan

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 flavour (taste). After water, tea is themost 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 slight

ting of lemon tea, the amazingly sab ki favourite doodh patti, the occational

Kashmiri Chai, or the delicacy of herbal tea, we all love and adore tea.

Doodh patti, is the widely used form of tea in Pakistan, then comes the rest. Now

when it comes to tea, which is a commodity (and now a days a basic one in every

household), we search for the one who has to offer the following:

- great flavour

- highly aromatic

- easily accessible

- affordable


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Executive Summary

Tea is considered to be an essential consumption item in many countries of the

world, including Pakistan. The history of tea drinking in the subcontinent can be

traced far back. Over a period of time, the colonials improved the quality and tasteof tea. At present there are two kinds of tea available in the market: branded and

unbranded (loose) tea, the ratio is (54:46) respectively. Bulk importers sell tea to

retailers in loose form, while the second category of bulk importers sell packaged

tea under brand names.

All tea in Pakistan is imported. Therefore, tea, a traditional hospitality itemin Pakistan, consumes a large amount of foreign exchange. Pakistan mainly

imports tea from Kenya and other African countries like Uganda, Burundi

and Tanzania, while multinational companies in Pakistan also import tea fromSri Lanka, Indonesia and Bangladesh. The current tea imports are

approximately 150,000 tons.

There are unlimited quantities of smuggled tea flooding the market. The

main problem at present is that smuggled tea has now taken over the

market, simply because of the high duty and taxes levied by the governmenton branded tea. Smuggled tea escapes all duties and levies, and therefore

can be sold cheaply, as loose tea. Now efforts are being made to grow tea

leaves locally.

Branded VS Unbranded

Branded

54%

Unbranded46%

Branded

Unbranded


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Product Name:-

In product category the product name is Lipton Yellow Label.

Lipton Yellow Label

Lipton teaclearsyourmindsoyoucansee things thatothersdont.

Lipton was created in the end of 19th century by Sir Thomas Lipton in

Glasgow,Scotland. Under the slogan Direct from the tea gardens to the Tea pot,this entrepreneurial businessman wanted to make tea a popular and approachable

drink to every one_with a high quality and a reasonable price product.

Sir Thomas Lipton

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. Thegroup traded as Home and Colonial Stores until 1961 when it took the name of

Allied Stores.[1]


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Lipton's became a supermarket chain focused on small towns, before Allied's 1982

acquisition 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.

Sir Thomas Lipton's vision to provide the best quality tea has made Lipton the

number one tea in the world today. Lipton offers an option to tea lovers to enjoy

their favorite drink in an exciting and refreshing way.

Lipton is the tea brand for Unilever, one of the biggest multinationals around the

globe. According to a source,

1649 cups of Lipton Tea are enjoyed every second

8245 cups of Lipton Tea are enjoyed every time you blink

1252 cups of Lipton Tea are drunk every time your heart beats

52 billion cups of Lipton Tea are drunk each year

Makinga bigsplash

Lipton is one of the world's great refreshment brands, making a big splash in the

global beverages market; it is the epitome of international quality. Lipton Yellow

Label's assurance of quality has helped it become the world's largest selling tea

brand. Specially plucked from the best tea gardens of Kenya and blended to

perfection - it is truly the gold standard in tea. The 100% International Blend -

made with one of the best technologies available in the world, has been brought to

you to provide the finest tea drinking experience.


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Be the bestyoucan be

Drinking Lipton is a way for the consumers to feel great in mind and body - to feel

good about themselves and the world around them. Lipton allows its consumers to

be the best that they can beto stay engaged and connected.

Goals

To satisfy our customers and achieve success worldwide.

Focus

Our main focus is on trust.We believe that trust is the foundation of ourbusiness actions.We believe honesty is absouletly necessary and its integrity

cannot be compromised.All our actions and decisions are guided by fairness and

sinserity of commitment.

Outstanding Quality

We believe in dedicating ourselves to achieve ourselves to achieve an

outstanding quality in all our activities.Excellence is a journey and not a

destination.Quality is a way of life to us.


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Unityandcreativity

We believe in unity of purpose and value the benefit of co-ordinated efforts &

we are open to new ideas at every aspect of our business.

Overview of tea industry in Pakistan

Product LifecycleMatrix

Time

Sales

Introduction Growth Maturity Decline

Lipton

Tapal

Supreme

Tetley


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TargetMarketing

Targeting a segment means the company is making a selection and targeting a

certain group of consumers or buyers for its product or services. Evaluation of

different segments that companies make is most critical before targeting anysegment, every company have its own criteria of selecting a segment such as size,

potentiality of growth, profitability, economies of scale, or low risk in the segment.

Lipton Yellow Label has target different market segments .

Lipton Yellow Label basically has targeted the urban areas and has concentrated on

the upper and middle classes.Therefore despite the fact that it uses a mass

marketing approach it can easily be denoted that this product is catered to a

particular segment. Even in its marketing approach for Lipton Yellow Label, the

product is presented in a different way for instance the teabags are targeted

toward the upper high class, while soft packs and jar packs are targeted for middle

and middle lower class. Today as both men and women consume equal amounts of

tea the age group segment selected for Lipton is for all age group for they want to

target those people who are young, trendy, cosmopolitan.


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Statementof needoropportunity

Lipton yellow label is for themselves who want active & refreshing lifesyle for

themselves and there families

Core benefitproposition

The core benefit proposition of Lipton yellow label is that it has :

y taste.

y flavory colour

y aroma.


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MarketSegmentation Of Lipton Yellow Label

MarketSegmentation

Distinct needs - regular tea/ green tea

Characteristics taste, aroma, strength

Behavior in terms of 4 Ps Segmentation of consumer market

CURRENTSTATUS OF SEGMENTATION

There are two clear segments of consumers in the market, branded tea consumers

and un-branded tea consumers. In Sindh, branded tea is consumed by most of the

cities, whereas in the rural areas both branded and unbranded are equally popular.

In Punjab, the city dwellers as well as a majority of rural areas are absolutely

brand loyal while unbranded tea is only popular in teashops and hotels. In NWFP

and Balochistan, 90% of the population still prefer the unbranded form as it gives

them the chance of see and smell what they buy before paying for it. In addition,

the mindset is such that now no other tea brand can compete because consumersare strongly brand loyal.


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Segmentation Variables Data

GeographicSegmentation:-

y World region Asia

y Country Pakistany Cities All major cities of Pakistan

y Density Urban-Rural

y Climate Hot & dry

DemographicSegmentation:-

y Age All age groupy Gender Male,Female

y Family size 1-2,3-4,5 abovey Family life cycle Married & Unmarriedy Income 12000 above

y Occupation White collar & service workers

y Education School,colleges & Universitiesy Religion All

y Race Asian

y Nationality Pakistani

Psychographic

Segmentation:-

y Social Class Middle class n upper class

y Lifestyle Fulfilled,believers,experience makers and

y Strugglers

BehaviouralSegmentation:-

y Occassion Any occassion

y Benefits Quality,taste,flavour and brand status

y Loyality Status Significantly highy Readiness Stage Awake & interested

y Attitude towards brand Positive & entusistic


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SWOTAnalysisof Lipton Yellow Label

All organizations should understand their operating enviournment as it allows

them to take advantage of the opportunities and minimize threats.The followinganalysis illustrates the enviournment of Pakistan in which Lipton Yellow Label

will be operating:-

Strengths

y Experienced and quality management.

y Strong Ethical value (culture and heritage)

y Strong supply liney Highly innovative

y Strong financial position

y Strong company imagey Success of the slogan

y Quality & varietyy Effective & attractive packagingy High quality man power

y Help people getting more out of life

y Brand recognition

y Accessbility

Weakness

y High prices of the producty Substitute products


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Opportunities

y Brand is the part if traditional drinking habits

y Research & development

y Makes people active

y Expansion in other areas of country

Threats

y Strong competion in rural and urban areas

y Internationally increasing tea prices

y Political conditions in the country may be obstacle to exports

y High infaltion in the country can negatively effect the brand


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Primarycompetitivealternative

The primary competive alternative of Lipton Yellow Label is Tapal Danedar Tea.

Tapal Danedar

Tapal is a well known name in Pakistan. In 1947, it started business and now

are a Tea leader and so celebrated its 55th anniversary in 2002. Their firstshop was in Jodia Bazaar.

The journey of Tapal's remarkable success is the combined efforts of threedynamic generations of the Tapal Family. Tapal started out as a family

concern under the personal supervision of its founder, Adam Ali Tapal. The

company continued to grow under the management of the founder's son,Faizullah A. Tapal. . Currently it is managed by the founders grandson,

Aftab F. Tapal who has continued giving further strength to the foundations

of quality laid by his family.

Making a modest beginning over half a century back, today Tapal has become

the largest, 100% Pakistani owned Tea Company in the country. It has

modern tea blending and packaging factories, warehouses equipped with


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state-of-the-art equipment and a team of highly dynamic professionals

headed by Aftab Tapal himself. He was the first to introduce soft packs inthe country. He developed an entirely new brand and category- Tapals

Family Mixture (the mixture of tea & dust). Mr. Aftab Tapal was the first

to invent the highly successful brand Danedar Leaf Blend. In December1997, Tapal Tea became the first Pakistani Tea Company to earn the ISO-

9001 certification: a symbol of the highest international quality standards.

Again in December 2000, Tapal acquired the ISO-9001: 2000 certification,making it one of the first few companies in the world to achieve this

milestone. In addition to the standard requirements, the ISO-9001: 2000

certification system includes requirements for environment improvement,concepts of TQM (continuous improvement) with major emphasis on

consumer requirements and satisfaction.

Tapal Danedar and Lipton Yellow Label are primary competitive of eachother .They are they competitive because they target the same consumers

ane are for same type of people there Target market is same. They also have

slightly difference in there prices,


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Primarypointof differenceOf Lipton Yellow Label

The primary point of difference of Lipton Yellow Label is

Logo

Lipton Yellow Label is painting the world yellow with a marketing campaign

that represents all that Lipton stands for brightness, vitality and fun with

natural goodness and the red represents the enerfy it gives.

Slogan

Lipton tea can do that


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All thegoodnessof Tea

The all the goodness of tea makes Lipton Yellow Lbel makes it different

from other products.The point of difference are as follows

Quality

Hand picked close to the bud for best quality tea and finest taste.The

quality of Lipton Yellow Label makes it different it offer best quality tea to

its consumers.

Vitality

Lipton tea helps you to revitalizes your mind and body.

Natural

Litopn Yellow Label tea is a natural source of antioxidants and thearine.

BrandImage

y 100% naturaly Accessible

y Consistent quality

y Versatile

High Ethical Value

Lipton yellow label has high ethical value in the minds of consumers because

it is used since ages so people are well aware of the brand.


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FourPsOf Marketing Lipton Yellow Label

The four of marketing Lipton Yellow Label are as follows.

Product

The product Lipton Yellow Label has a brand image in the mind of

consumers.Hand picked close to the bud for best quality tea and finesttaste.The quality of Lipton Yellow Label makes it different it offer best quality

tea to its consumers. We believe in dedicating ourselves to achieve ourselves to

achieve an outstanding quality in all our activities.Excellence is a journey and nota destination.Quality is a way of life to us.The consistent quality makes the

product successful in the market.


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Price

Lipton Yellow Label has never wanted to compromise on quality so they adoptedvalue based pricing.

Lipton Yellow Label:

100gm: Rs.57

200gm: Rs 114

500gm: Rs 250

1000gm: Rs 499

Placement (Distribution)

Lipton Yellow Label has a distribution network spread across Pakistan.The

popularity of the brand is so much making it the No.1 National Tea company in

Pakistan.

Lipton Yellow Label caters to its customers by providing Lipton Yellow Label to

more than 150000 outlets in Pakistan,which includes super stores, general stores,

grocery stores and discount stores and all departmental stores.

Lipton has its headquarter in Karaci and 650 distribution offices all over Pakistan.


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Distribution plays an integral role in any company whether its a FMCG or utility

good. The role of distribution in the marketing mix is to deliver a product to its

target market or final consumer. Between the manufacturer and the final consumer

stands a set of intermediaries performing a variety of functions. These

intermediaries constitute a marketing channel also known as trade channel or


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distribution channel. The marketing channels are set of interdependent

organizations involved in the process of making a product or service available for

use or consumption. Marketing channels overcomes the time, place and possession

gaps that separate goods and services from those who need or want them.

Liton Yellow Label Danedar is known for its wide distribution network. The Lipton

Yelow Label distribution channel is:

Promotion

Manufacturer

Wholesalers

Retailers

Consumers


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Promotion:

The Lipton Yellow Label does it promotion in following ways.

The company uses different promotion techniques they povide different items to

people such as :

y Caps

y Tea bags

y Cupsy Printed T-shirts

y Discounts

y Basant festivalsy Vans

y Watches

The company is different sales promotion techniques at different time of theyear depending on the sales of the product.

ElectronicMedia:

The company is spendind a lot on electronic media.In there advertisment they hire

renowned celebrities.

Advertisment:

The Lipton Yellow Label uses different types of advertisment as follows


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Television:

Lipton yellow label spends a lot on television advertisment.Commercial during cable

network movies, TV shows such as special drama, news ,talk shows and Sitcom

Product placement is also done in many of the shows.

Magazines:

Full page advertisment including Akhbar-e-Jahan, Mag, Family Magazine, Fashion &

Business Magazine.

Internet:

Lipton Yellow Label advertises on websites such as Facebook & Yahoo.

Co-Branding:

Avaiable at big shopping malls such as Dolmen Mall, Park Towers & Millenium Mall.


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PositioningOf Lipton Yellow Label

Positioning involves designing the product and image that will occupy a distinctiveplace in the minds of the target market. As can be seen, Lipton yellow label have

the largest profit margins and market share in the automobile industry. Thus the

marketers at Lipton have decided to create its own unique image and then

strengthen the position in the customers minds.

The Lipton Yellow Label has positioned its product in the minds of the consumer as

y Activey Refreshing

y Colour

y Aromay Taste

y Flavour

y Outstanding Qualityy Slogan


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BRANDREPOSITIONINGAND TYPESOF BRANDREPOSITIONING

BrandRepositioningis changing the positioning of a brand. A particular positioning

statementmay not work with a brand.

For instance, Dettol toilet soap was positioned as a beauty soap initially. This was

not in line with its core values. Dettol, the parent brand (anti-septic liquid) was

known for its ability to heal cuts and gashes. The extension's 'beauty' positioning

was not in tune with the parents germ-kill positioning.

The soap, therefore, had to be repositioned as a germ-kill soap (bath for grimy

occasions'') and it fared extremely well after repositioning.H

ere, the soap had tobe repositioned for image mismatch. There are several other reasons for

repositioning. Often falling or stagnant sales is responsible for repositioning

exercises.

Productrepositioning key tosuccessfulmarketing

AFTER EXAMININGREPOSITIONINGOF SEVERALBRANDS FROM

PAKISTANIMARKET THE FOLLOWING TYPESOF REPOSITIONINGARE

IDENTIFIED, THESE ARE

1. Increasing relevance to the consumer

2. Increasing occasions for use

3. Making the brand serious

4. Falling sales

5. Bringing in new customers

6. Making the brand contemporary

7. Differentiate from other brands


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8. Changed market conditions.

It is not always that these nine categories are mutually exclusive. Often one

reason leads to the other and a brand is repositioned sometimes for a

multiplicity of reasons.

REPOSITIONINGOF LIPTON YELLOW LABEL TEA

LIPTON YELLOW LABEL was initially positioned as delicious, sophisticated and

premium tea for the global citizen. The advertisement also echoed this theme. The

repositioning specifically addressed the local customer by the old melody chai

chahie......

CHANGINGSLOGAN

LIPTON TEACANDO THAT..

This slogan and advertisement campaign attracts the youngsters..Lipton people

placed the bill boards on roads, bus stops with simple questionsand their answerswere given few steps forward.


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Launchingof lipton ice tea

Lipton also launched ice tea to take the competition head on so the youngsters also

enjoy their product.


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Questionnaire forConsumers

Name: ________________________________

Age: ________________________________

Area: _______________________________

Profession: ____________________________

1) Gender ?

a) Male

b) Female

2)

Age group ?

a) 1- 15b) 15-30

c) 30-45

d) 45-60e) 60 above

3) Marital status ?

a) Unmarried

b) Married

4) How many cups of tea you consume every day ?

a) 1-2b) 2-3

c) 3 above


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5) Which tea do you drink ?

a) Lipton Yellow Label

b) Tapal

From the questionnairewe foundsomestatisticsrelated toourproduct.

SUMMARYOF FINDINGS:

Our respondents of 100 sample size.

0

10

20

30

40

50

60

Gender

Male

Female


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0

5

10

15

20

25

30

35

Age Group

1 to 15

15 to 30

30 to 45

45 to 60

60 above

0

10

20

30

40

50

60

Marital Status

Unmarried

Married


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0

5

10

15

20

25

30

35

40

45

50

Tea Consumed

1 to 2

2 to 3

3 above

44

45

46

47

48

49

50

51

52

53

54

Tea Brand

Liton Yellow Label

Tapal


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29481555 Final Report Zainab Lipton

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