BRAND EXTENSION

DAWN TEA

DAWN TEA

GROUP FNAMES REGISTRATION NO

SEHRISH ANSARI(GROUP LEADER) 1435194

MUZNA KANWAL 1435239

MOHSIN GHANI

GHULAM MUSTAFA

MOHAMMAD SAIM SOHAIL

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

Dawn is the leading bread brand in Pakistan which enjoys high awareness and product salience.

We are extending Dawn Breakfast Category into Tea – an extremely challenging task due to the presence of Strong players in the market.

The idea of brand extension – “Dawn Tea” – came through the market demand for tea.

The main focus is to compete with existing brands and also capture the market of unbranded tea products.

According to the Statistics, the total tea market present in Pakistan is 150,000 tons, which constitutes of organized market having 80,000 tons and the unorganized having 70,000 tons of tea consumption.

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

This launch plan was developed after the market research was conducted to gather consumers insights.The results showed that Tea consumers most preferred health and freshness while purchasing tea brands.

Hence Dawn Tea is being launched, positioning itself as a “Healthy” and “Quick Breakfast item” rich in Nutrition, Quality and Freshness.

The Vision of Dawn Tea is to dominate the tea market, having competitors not only from Organized Brands such as Tapal, Lipton, and Brooke Bond, but also from Unorganized Tea Brands.

EXECUTIVE SUMMARYEXECUTIVE SUMMARY

Dawn Tea is aligned with Morning Freshness – enjoying a healthy start to a happy and productive day!

Dawn Tea is not only the preferred tea brand for Morning Breakfast, but it is also for housewives who wish to relax while having their 10 o'clock cup of tea. Being on their own, enjoying the time all alone free from any type of responsibilities!

REASON FOR BRAND EXTENSION

• High demand of Tea in the Market

• According to PTA the Consumption of tea is 150000 tons.

• And the consumption rate is still accelerating at a fast pace, accumulates to be 6% annually.

• Dawn is famous for its Healthy and Quick Breakfast Solutions-Ready to Eat.

• Extending Dawn into Tea Category, to provide a wider range of breakfast solutions.

Dawn-Healthy Breakfast Solutions

• Dawn has already extended into bread, rusk, cake, and frozen foods category.

• The combination of Tea with Dawn Breakfast range would successfully fit in the Extension.

• Due to the humid weather and the hectic lifestyle, tea works as an effective stimulant in every season.

• Another reason for extending Dawn into tea category is: Coffee, a close substitute of tea, is comparatively expensive which

most people cannot afford.

• DAWN

• A family oriented company committed to providing Pakistanis with nutritious and superior quality food products.

• Captured 35% of the consolidated market share of bread products in Pakistan.

• Famous for providing a wide range of breakfast items.

• DAWN PRODUCTS:

CATEGORY PROFILE

TEA

• Tea is the world’s most favored beverage due to its general acceptability, comparative cheapness and advantageous effects.

• It is the second most consumed beverage after water.

• Tea is an aromatic stimulant, containing various polyphonic, essential oils and caffeine.

• The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant.

• Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water.

• The annual per capita consumption of tea in Pakistan is about one kilogram.

INDUSTRY ANALYSIS

• The tea retail market is segmented into five product types: Regular RTD Instant/mix Herbal Specialty

Each type is further subdivided into caffeinated decaffeinated, As well as non-flavored or flavored tea sub-types.

Organic and natural teas, alternative tea and juice blends, powdered chai mixes are now in heavy demand.

IMPORT OF TEA IN PAKISTAN

Year Quantity (Tonnes) Value ( $ Million) Value(Rs Million)

2011-12 123,893 351 31,893

2010-11 118,657 334 28,807

2009-10 94,463 271 22,712

2008-09 85,350 193 17,417

Source: Federal Bureau of Statistics, Government of Pakistan

COMPETITOR'S ANALYSIS

• Market is nowadays saturated with several companies offering tea brands. Thus Dawn Tea has many competitors which have strong position in the market. These brands are called Direct Competitors of Dawn Tea.

• Dawn Tea's Competitors:

The competitors of Dawn Tea includes the following Tea Brands of Pakistan:

1- Tapal Danedar

2- Lipton Tea

3- Brooke Bond

4- Tetley

5- Tez Dum

FACTORS TAPAL LIPTON BROOKEBOND DAWN TEA

ProductsWide range of

Products. It has 9 products.

Medium range of Products. It has 4

Products

Low range of Products. Less

than 4 Products

Will be starting from One Core Product of

Tea Category, but later extending it.

Price Value Based Pricing Differentiated Pricing

Differentiated Pricing (offers

Discount)

Market Penetration Pricing (Slightly low

Price than Competitors)

QualityAwarded the ISO

9001/2000 Quality Certification

Pioneer in best Quality Products

High Quality in the Market

Best Quality in Reasonable Price

Packaging Pioneers of Soft Packaging

Attractive Packaging

Available in Hard Packaging

Innovative Packaging not yet adopted by

Competitors

FACTORS TAPAL LIPTON BROOKEBOND DAWN TEA

Company’s Reputation

Top Company in Pakistan

Global Market Leader

Is also a Product of Unilever

Best in healthy Breakfast Solutions

Brand Awareness High Brand Awareness

Top of mind Awareness Top of mind Awareness

Top of the mind, Prompted Awareness

Market Share 43% 41% 10%

Higher than competitors, in

order to be Market Leader

Sales (Tons) 32000 20000 16000 Initial Sales up to 15000

Competitor's Streghths and Weaknesses:

• Tapal

STRENGTHS WEAKNESSES

Integrated Quality Management Centralized Management

Strong Brand Awareness Relative Technological Backwardness

Strong Heritage Intense Competition

Strong Supply Line

Highly Innovative

Brand Activation

• Lipton:

STRENGTHS WEAKNESSES

High Quality and Ethical values High Prices

Strong Financial Position Substitute Products

Innovative Communication

Strong Company Image

Event Marketing

MARKET OUTLOOK:

• The total tea market present in Pakistan is 150,000 tons – the organized market shows 80,000 tons and the unorganized shows 70,000 tons.

• Here organized depicts the market owned by the brands and unorganized depicts that portion which is owned by unbranded loose tea.

• The main competitor for organized tea market is the unorganized tea market present in Pakistan.

• Mainly big players are importing tea from different countries like Kenya, UK, Bangladesh. Unorganized tea is mainly smuggled from different neighboring countries of Pakistan.

• That’s why it has a large proportion in total consumption of tea in Pakistan which is 70000 tons of total 150000 tons.

BRAND VISION

• To Inspire and Cheer customers with a tantalizing cup of tea. Dawn Tea aims to provide mornings that are full of freshness and energy, because Dawn Tea believes in Quality, Accessibility and Nutrition. A Sip that takes you on a beautiful journey through the day!

POSITIONING OF COMPETITORS

TAPAL'S BRAND POSITIONING

In the market since 1987:

• Root Strengths pioneer of “Danedar” Kenyan tea. core Product - Tea

• Competitive Environment hot and cold refreshing beverages coffee, water, juices, milk and others.

• Target Customers all tea lovers anyone hoping to get a refreshing and tasteful hot beverage during short work-breaks

(any kind of work; office as well as home)

• Consumer Insights Tea is the most common beverage served when people get together

• Benefits The functional benefits include: readily available, refreshing, easy-to-make

and easy-to-serve. The emotional benefits include: helps in boosting energy levels, uplifting

moods and connecting families.

• Values, Beliefs and Personalities Tapal Danedar has a vibrant personality. It believes in caring, loving and sharing. Tapal Danedar is energizing, trustworthy and refreshing!

• Reasons to Believe Rich color, flavor and aroma that guarantee high quality. It has maintained consistent presence in the market.

• Discriminator Tapal Danedar hasn’t changed much (particularly the red packaging) The familiarity has been transferred through generations

• Essence The core identity of Tapal Danedar is the promise of a high quality and

refreshing tea. Tapal Danedar symbolizes a tradition that has been passed on through

several generations.

LIPTON'S BRAND POSITIONING

In the market since 1948:

• Root Strengths Core product – tea. Exciting tea-based fusions. First brand to introduce the concept of tea bags in Pakistan.

• Competitive Environment hot and cold refreshing beverages includes coffee, water, juices, milk and other similar drinks

• Target Customers all tea consumers. “fun” side – those looking for a refreshing, mind-clearing and trendy hot

drink

• Insights Tea serves as a refreshing beverage that helps in clearing and relaxing the

mind. It promotes productivity and logical thinking.

• Benefits The functional benefits include: Lipton is a refreshing hot beverage that is

flavorful, readily available and easy-to-fix. The emotional benefits include: Lipton energizes the fun-filled, creative and

exciting aspects of your life.

• Values, Beliefs and Personalities Lipton has a British English personality. It symbolizes discipline, aristocracy, and a unique style. Lipton aims to provide a classy experience that is modern, fun-filled,

personalized and absolutely memorable!

• Reasons to Believe Lipton has an age old heritage extending over more than a century! Maintained a legacy of successful experiments Launched several variants of tea.

• Discriminator It offers a classy experience of modern “English” tea that is light, flavorful

and stimulating.

• Essence Mental clarity, energy, and the ability to overcome physical and mental

blocks.

BROOKE BOND'S POSITIONING

• Root Strengths Core product – tea (or tea leaves in particular).

• Competitive Environment All refreshing beverages Includes coffee, water, juices, milk and other similar drinks

• Target Customers All those who like drinking tea Those individuals looking for an everyday “evening” ritual for the family to

bond over.

• Insights Families in Pakistan like spending some time during the evening connecting

with each other. It is like a family union. Tea gives this event a reason or structure for the members to come together every evening and discuss their day.

Most people think tea is not healthy for varied reasons but they can’t forego it because they love consuming it.

• Benefits The functional benefits include: Brooke Bond Supreme offers an easy-to-

make and refreshing hot beverage. The emotional benefits include: Brooke Bond Supreme is healthy and it

helps families connect over an informal occasion like evening tea.

• Values, Beliefs and Personalities Brooke Bond Supreme symbolizes a tradition. It is trustworthy, reliable and caring. Brooke Bond Supreme has an “old” and “responsible” personality It keeps the family united just like the elders do.

• Reasons to Believe The longstanding heritage It has a strong and exciting flavor, aroma and color which people like. The red color stands for energy and vitality.

• Discriminator Brooke Bond stands for vitality.

• Essence Brooke Bond is a promise of quality and trust. It is marketed as a healthy caffeinated beverage.

DAWN TEA'S POSITIONING

• Root Strengths The root strength of Dawn as a brand is “morning” “healthy and quick-fix breakfast solutions”

• Competitive Environment all breakfast options, particularly the drinks people consume during

breakfast. Includes milk, fruit juices, water, and coffee.

• Target Customers Those individuals who are looking for ways to make a healthy, easy

and inspiring start to the day.

• Insights Most people are not morning people. This means that getting up early in

the morning is pretty challenging for them. At the same time, people are aware of the health consequences that can

happen as a result of skipping breakfast. They are constantly looking for ways to fix a quick and healthy breakfast

that is easy-to-make and easy-to-consume.

• Benefits

The functional benefits include: Dawn Tea is healthy, convenient, easy-to-make and readily available.

The emotional benefits include: Dawn Tea marks the perfect beginning to the day that is healthy, refreshing and inspiring. It uplifts the mood for the entire day!

• Values, Beliefs and Personalities

Dawn Tea will have all-giving personality. It believes in quality, accessibility, and nutrition. It stands for reliability, trustworthiness, and convenience.

• Reasons to Believe Dawn Tea is an extension of Dawn Bread – a company that has

survived more than three decades in the local market and enjoys significant top-of-the-mind and prompted awareness.

Dawn Bread has never faltered in quality, nutrition, accessibility or convenience.

• Discriminator Dawn Tea is an addition to the portfolio of “healthy, quick-fix and

convenient breakfast solutions”. People purchase it because the brand cares for its customers in

multiple ways (health, convenience and availability).

• Essence For Dawn, the single most compelling and rallying cry is “healthy

mornings”. Dawn Tea aims to make people look forward to their mornings and

enjoy a healthy start to a happy and productive day!

TRADE MARKETING PLAN

Dawn Tea will initially be launched in Karachi during its introductory phase, Then it is to be distributed in major metropolitan cities of Pakistan including Lahore, Islamabad, Rawalpindi, Quetta, Multan, Hyderabad, and Peshawar.

• Trade ChannelsØ DistributorØ RetailersØ SupermarketsØ HypermarketsØ E-commerce websites•Leveraging the distribution network of dawn breakfast products

• Trade ObjectivesObtain initial distribution Obtain retail shelf space Counter competitive actionsIncrease order sizeBuild retail inventoriesEnhance channel relationships

• Trade Plan Discounts on bulk buying Exclusive distribution Agreements Geographical distribution Offering the product on credit basis until the 80%awareness level Offering the highest margins to the retailers and distributors in the

tea category. Offering the intermediaries various discounts on large quantities.

• Promotion Tools In store displays -Free display racks and stands Trade contests Trade allowances for big distributors Training programs for sales people Co-op advertising campaigns Integration with Websites

COMMUNICATION PLAN

• Objectives Define Target audience – they will be the focus our of

communication strategy Define Communication Channels- medium of communication used

to reach our target audience Prepare communication strategy Allocate budget that would support the communication plan

• Target Market The target audience are tea consumers who drink tea on daily basis

– 2-3 times in a day especially in morning. Because Dawn Tea is for the morning tea lovers, A cup of tea especially for the busy housewives who enjoy their 10 o’clock cup of tea.

Consumers of Dawn bread and other Dawn products for which tea would be a compliment product

Tea consumers who associate healthiness and activeness with their lifestyles.

Housewives ranging from 25-60, who are looking for ways to make a healthy, easy and inspiring start to the day.

• Communication Channels Print Media – advertisements in magazines, online advertisements,

billboards Digital Media – jingles, advertisements Point of Sale (POS) Mobile Publicity Units

• Strategy Before the launch of the product we will start a series of

advertisement campaign (Print Media, Social Media) The brand will be launched with grand event in which invitees will be

celebrities, channel partners etc. With the launch of the brand, TV advertisements will be aired Promotion of the product -Brand ambassadors ( Morning show hosts) -Morning Shows ( Promoting Dawn Tea as morning cup of tea)

BTL activities -Sales Promotion -Stalls of Dawn Tea in Shopping Malls, Grocery Stores, Sunday

Bazaar.

• Activation Programs

Dawn Cooking Competition across the Pakistan.

Dawn Tea will Sponsor MasterChef Pakistan for 3 Seasons.

DAWN TEA METRICS

• Metrics Objectives Affordable but Meaningful Data Capture Consumer Insights Integrated with financial measures

• Dawn Tea Internal Metrics Primary Sales and Secondary Sales Quality Complaints Profit Contribution

• Dawn Tea External Metrics Recall & Recognition % Market Share Level of Stock in Outlets Shelf Space % Personality measure Measuring positioning Top of the mind Awareness

MARKET RESEARCH

Options Percentage

TEA 46%

SOFT DRINKS 25%

JUICES 12%

COFFEE 9%

ENERGY DRINKS 8%

People at Grocery Stores were asked what kind of beverage they use the most in their daily routine.?

While buying Tea, what attributes do they look for in the Brand ?

Attributes Percentage

HEALTH 37%

QUALITY 23%

TASTE 22%

AROMA 18%

Do they use Dawn products in any part of their day?

Response Percentage

YES 66%

NO 34%

Will they buy Dawn Tea because of their loyalty with Dawn ?

Response Percentage

YES 46%

NO 32%

MAY BE 22%

• According to the Market Research:

Tea emerges as the most preferred drink, with comparatively higher consumption among mature adults.

“Premiumisation” and “health” will remain the major claims affecting consumers purchase behaviors.

Tea Consumers are ready to welcome Dawn Tea, because of strong equity of Dawn which built a long-term realtionship with consumers.