Report
on
Lipton
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Topic: report on
Lipton yellow label Submitted to
Muhammad ARSLAN Sarwar Submitted by
Group:
(E)
Names:
roll no
Muhammad USMAN SOHAIB Tariq Syed QAISAR Abbas Hafiza SAHER Afshan
Class Subject
Page lipton
095 104
M.com (x) Principles of MARKETING
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Table of contents (report on Lipton tea) Name of topics 1 2 3 4 5 6 7 8
page #
Acknowledgment Dedication Executive summary Introduction Objectives Market research analysis Market plan and strategies Situation analysis Target market Bases of segmentation Level of competition Market mix Product Price Place Promotion SWOT analysis BCG matrix Porters’ 5 forces model analysis Feedback and control Recommendations Conclusion
4 5 6 7 9 9 10
○ ○ ○ ○
•
9 10 11
Page lipton
L I P T O N
Y E L L O W
24 24 25
L A B E L
( U N I L I V E R )
Acknowledgement Thanks to ALLAH almighty for giving us the skill as well as we also wants to tribute to our HOLY PROPHET Peace Be upon Him who show us the reality of God.
We would like to thank to our profess professor or Muhamma Principles of Muhammad d ARSLAN ARSLAN SARWAR SARWAR ( Principles Marketing ) who have been providin providing g guidan guidance ce and suppor supportt during during the whole whole proces processs of our report report.. We feel feel motiva motivated ted and encour encouraged aged every every time time we attend attend his lectures lectures.. Witho Without ut his encouragement and guidance this report would not have materialized.
The guidance and support received from all the group members who contributed to this report, was vital for the success of the report. We were grateful for their constant support and help. This report was arguably one of the most painful yet thrilling experiences in 1st semester. Making this report has immensely helped us in understanding the skills of Marketing. Thanks!
And finally … thanks to those
Page lipton
L I P T O N
cups of tea we’ve had during this report!!
Y E L L O W
L A B E L
( U N I L I V E R )
DEDICATED To Our Beloved parents Muhammad ARSLAN Sarwar All UOG’s faculty All sweet friends, fellows and group members
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Executive Summary The report is an effort to identify different aspects of Marketing in Lipton Yellow Label
tea, which is one of the major players in the branded tea market in Pakistan; Lipton the only international tea brand in Pakistan changed its initial elite based marketing and turned to serving the masses of Pakistan with premium quality tea. At present there are two kinds of tea available in the market: branded and unbranded (loose) tea, the ratio is (40:60) Towards the start of report figures regarding the Lipton yellow label situation analysis of
market, its target market, and contribution from different tea brands are also given. Its bases of segmentation and level of competition co mpetition of Lipton tea in the market. An integral part of the report is detailed analysis of the marketing aspect including
pricing, product, and placement and promotion areas. SWOT analysis, analysis, BCG Matrix Matrix and porter five forces model analysis analysis of Lipton yellow label tea are also discussed. Feedback, Feedback, control, Recommendation Recommendationss and conclusion are also given to the best of our knowledge.
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Introduction of Unilever
Unilever is one of the worlds greatest consumer goods company and Lipton yellow label is a product product of Unilever Unilever.They .They sell around 150 million million products products a day, which makes them worlds largest food businesses and a leader in Home and Personal Care market markets. s. There There brands brands meet meet people people everyd everyday ay needs needs for nutrit nutrition ion,, hygien hygiene e and personal care and they are obsessed with developing new products that reflect the way that people likes and tastes are changing.
Company Information Unilever was created in 1930 when the British soap-maker Lever Brothers merged with the Dutch margarine producer. Unilev Unilever er Compan Company y came came into into the Pakistan Pakistan market market in 1949 1949 with with the name of Lever Brothers Pakistan. Changed the name Lever Brothers Pakistan to Unilever in year 2003. The average per annum consumption of tea is 150 million kilograms. Lipton enjoys a huge market share. Unilever caters in three categories which include a. Food Brands b. b. Pers Person onal al Care Care Bran Brands ds c. Hom Home Car Caree Bran Brand d
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
History of Lipton Li pton Tea Tea Lipton Tea is a British tea company, founded and named after its original owner, Sir Thomas Johnson Lipton. Lipton tea began in 1870 and is currently one of the biggest tea distributors in the world.
Origin of Lipton Tea – Legend Myths and Facts Lipton was born in 1850, in Glasgow, Scotland. In 1865, Lipton moved to the United States where whe re he held various jobs, including working on a tobacco farm, a rice plantation and a streetcar. Lipton, Lipton returned to Scotland and opened his own grocery store in 1871. Lipton pioneered the idea of selling tea as individual packets , for longer freshness, consistent quality and guaranteed weight.
Lipton tea today Lipton tea is now one of the largest tea traders in the world. It is currently owned by the Unilever Company.
Objectives ○
○
Page lipton
The aim is to provide quality tea that is safe for the health and energizing for the mind and body with an unforgettable flavor. Lipton has to retain its position as a market leader against all its competitors especially Tapal who is its challenger and close substitute.
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
○
○
○
It has to interact directly with the consumers in order to be aware of the requirements and expectations of its consumers. It has to maintain the highest satisfaction standards and goodwill amongst the consumers. It has to maintain its brand name and loyalty.
Market research analysis Market research analysis is conducted by adopting following techniques and methods to input information in this report TYPE OF RESEARCH: The Research type is Observational Involves gathering primary data by
Observing relevant people Actions and situations Group discussion
Data collection methods 1. Obse Observa rvati tion: on: 2. Structured and unstructured Interviews: 3. Questio Questionnai nnaires: res: • •
General Questions About the product
Primary data Office Tours (wazirabad 1/2012) Office Office visit visit has been conducted to get basic information information about the uniliver uniliver Company, its objectives and products
Uniliver office Moti bazaar, Islamabad mor wazirabad.
Secondary data Websites I. WWW.UnileverPakistan.com.pk II. WWW.lipton.com.pk
Market plan and strategy SITUATIONAL ANALYSIS
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
MICROENVIRONMENT FACTORS Microenvironment of a company is all the factors that affect its ability to serve its customers. It includes the company, suppliers, marketing intermediate, customer markets, competitors, and publics 1. The Company •
•
•
•
Unilever was created in 1930 when the British soap-maker Lever Brothers merged with the Dutch margarine producer, Margarine Unie. Unilev Unilever er Compan Company y came came into into the Pakistan Pakistan market market in 1949 1949 with with the name of Lever Brothers Pakistan. Changed the name Lever Brothers Pakistan to Unilever in year 2003. The average per annum consumption of tea is 150 million kilograms.
Suppliers •
•
More than 150,000 outlets in Pakistan including ○
Super stores
○
General stores
○
Grocery stores
○
Discount stores
○
Departmental stores
650 distribution offices with Head quarter in Karachi
1. Marketing Intermediateries •
Unilever marketing intermediaries have played an effective role in distributing its products.
•
Physical distributers
•
Financial intermediaries
•
These have strongly helped the company in promoting its products.
1. Customers •
Page lipton
Number of people familiar with tea around the world:
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
MACRO ENVIRONMENT FACTORS Microenvironment factors are all the societal factors, which affect the company; these include demographics, economic, natural, technological, p olitical and cultural forces. 1. Demographics
Generally people consume 2-4 cups of tea per day. The demographics include •
Age
•
Location
•
Gender
•
Race
•
Occupation
. The potential market of Lipton is the people aged 10-60; it does not target the children. 2. Economics Forces
Economic forces in a macro environment are:
Economic growth rate Unemployment rate Inflation rate Interest rates
Infrastructure quality Business cycle stage (e.g. prosperity, recession, recovery)
3. Cultural Factors
Pakistan has produced unique cultural of its own type. •
Values
•
Norms
•
Cross culture
Target market Targeting of Lipton: Lipton Yellow Label is working in more than 110 countries therefore the target market is a global village that consists of people with different cultures, taste, habits & food. •
• •
Page lipton
It targeted the urban areas (offices, ( offices, hotels, restaurants, café, and banks) Lipton is targeting for upper middle, upper lower and upper middle class The teabags are targeted toward the upper high class.
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
• • •
Soft packs and jar packs are targeted for middle and middle lower class. The age group segment selected for Lipton is between (15 – 60) It is targeting to those people who are young, trendy, cosmopolitan, hip, and cosmopolitan.
MARKET SIZE CALCULATION CALCULATION The Market size is: NUMBER OF BUYERS = 0.444 Million MARKET SIZE = NUMBER OF BUYERS * AVERAGE CONSUMPTION THEREFORE 0.444 * 48per year = 21.312Million
Market Market Segmen Segmentat tation ion Market Segmentation Segment ation Of Lipton Yellow Label Distinct needs - regular tea/ green tea /black tea ✔ Characteristics – taste, aroma, strength ✔ Behavior – in terms of 4 P’s Segmentation of consumer market ✔
CURRENT STATUS OF SEGMENTATION There are two clear segments of consumers in the market, branded tea consumers and un branded tea consumers. In Punjab, the majority of rural areas are absolutely brand loyal while unbranded tea is only popular in teashops and hotels
Segmentation Base Segmentation Variables
Selected Geographic Segmentation:Segmentation: -
•
World region
Asia
•
Country
Pakistan
•
Cities
All major cities of Pakistan
•
Density
Urban-Rural
•
Climate
Hot & dry
Demographic Segmentation:•
Age
All age group
•
Gender
Male, Female
•
Family size
1-2,3-4,5 above
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
•
Family life cycle
Married & Unmarried
•
Income
12000 above
•
Occupation
White collar & service workers
•
Education
School, colleges & Universities
•
Religion
All
•
Race
•
Asian
Nationality
Pakistani
Behavioral Behav ioral Segmentati Segme ntation:on:•
Occasion
Any occasion
•
Benefits
Quality,taste,flavour and brand status
•
Loyalty Status
Significantly high
•
Readiness Stage
Awake & interested
•
Attitude towards brand User Status User Rates
• •
Positive & enthusiastic Ex-user, regular user, first time user Medium user, heavy user
Psychographic Segmentation:•
Social Class
Middle class and upper class
•
Lifestyle
Actualizes, Fulfilled, Believers, Achievers
•
Personality
Cultured, energetic.
USE-SITUATION SEGMENTATION • • • •
Occasions Objective Location Person
Regular and parties To feel fresh and healthy. Home, office Self, family members, friends
Level of competition Market competition: The tea market in Pakistan is very well saturated because of the high consumption of open tea which accounts for over 60% of tea sold but if we look at the branded tea market there Brooke bond leads the market in branded tea, while Tapal being second and Lipton being third in terms of sales with other small brand of Unilever and Tapal also laying claim to the market.
Primary competitive alternative The primary completive alternative of Lipton Yellow Label is Tapal Danedar Tea.
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Tapal Danedar Tapal is a well known name in Pakistan. In 1947, it started business and now is a Tea leader in the tea market of Pakistan.
Competitive Rivalry
Tapal Danedar Tea ○
Started in 1947 by Tapal Family.
○
Largest Pakistani owned Tea Company
○
Innovation
○
ISO Certification
○
Tapal Danedar and Lipton Yellow Label are primary competitive of each other they are they competitive because they target the same consumers for same type of people there Target market is same. They also have slightly difference in there prices,
Major Major Player Playerss and compe competi titor tors: s:
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Marketing mix The Marketing Mix (The 4 P's of Marketing) Marketing mix (decisions) generally fall into the following four distinct categories: •
Product
•
Pricing
•
Place issues(distribution) issues(distribution)
•
Promotional tools
Product The product product name name is Lipton Lipton yellow yellow label that has a strong brand image in the consumer mind. It is regular tea that has a strong taste, aroma, and strength. Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Product line ○
Black tea
○
Green tea
○
Flavored black tea
○
Herbal tea
○
○ ○
Pyramid tea Iced tea mix Iced tea to go
○
Lipton pure life tea Lipton iced tea
○
Food service
○
○
Lipton brisk
Price Lipton Yellow Label has never wanted to compromise on quality so they adopted value based pricing.
Different prices price s of packs of Lipton yellow label tea in Pakistan:
Product categor y
Prices
Packets (Sachet size) • • •
14gm 30gm 95gm
Rs10 Rs 20 Rs 65
Packs (medium size) 100gm pack 200gm pack 400gm pack Box &jars (large size) 50 tea bag box 100 tea bag box 450gm jar
Rs. 30 Rs. 60 Rs. 115
• • •
Rs. 64 Rs. 125 Rs. 125
• • •
Distribution /placement issues
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Distribution is about getting the products to the customer. Some examples of distribution decisions include:
Distribution channels Lipton yellow label being a consumer good follows an intensive and selected distribution policy in the placement of its products it tries to reach its consumers any where and every where.
➢
Distribution places
•
More than 150,000 outlets in Pakistan including ○ ○ ○ ○ ○
•
Super stores General stores Grocery stores Discount stores Departmental stores
650distr 650distribut ibution ion channel channels, s, 3majors 3majors unit’s unit’s manicuri manicuring ng in Karachi, Karachi, Raheem Raheem yar khan and khaniwal.
Promotional tools The Lipton Yellow Label does it promotion in following ways. The company uses different promotion techniques they provide different items to People such as: Caps • Tea bags • Cups • Printed T-shirts • Discounts • Basant festivals • Vans • Watches • The company takes different sales promotion techniques at different time period for the sales of the product.
Electronic Media: Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
The company is spending a lot on electronic media. In their advertisement they hire renowned celebrities.
Advertisement: The Lipton Yellow Label uses different types of advertisement as follows
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.
Co
brand
SWOT Analysis of Lipton Swot analysis means company overall:
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
• • • •
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
STRENGTHS Unilever is a multinational company 2. Strong brand image, loyalty and brand awareness aw areness in Pakistan 3. Market leader as it has a 70% 70% market market share share in in branded branded tea. tea. 4. Strong Strong and long-term long-term relations relationship hip with distri distributors butors,, wholesalers wholesalers and retailer retailers. s. 5. Sound and experienced management and quality control staff 6. Strong Strong Ethic Ethical al value value (cultu (culture re and herit heritage) age) 7. Strong supply line and accessibility 8. Stro Strong ng fina financ ncia iall posit positio ion n 9. Quality, variety and success of the slogan 10. Effective Effective & attractive attractive packaging packaging 11. Strong Strong distribution distribution structure structure 12. Highly innovative and effective marketing team 1.
WEAKNESSES •
High prices of the product
•
Substitute products
•
Stiff/high competition Large advertising budget
•
Low market share in Karachi, Multan and N.W.F.P.
•
OPPORTUNITIES 1. High High rate rate of popula populatio tion n growt growth h 2. Market opportunity opportunity of Lipton Lipton Yellow Yellow Label in rural rural areas areas 3. Brand is the the part part if if traditi traditional onal drinki drinking ng habits habits 4. Rese Resear arch ch & devel developm opment ent 5. Make Makess peop people le act activ ivee 6. Expansi Expansion on in in other other area areass of country country 7. Huge Huge mar marke kett to to exp explo loit it 8. Stro Strong ng bran brand d loy loyal alty ty
THREATS 1. Stron Strong g compet competiti ition on in rural rural and and urban urban areas areas
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
2. Internatio Internationally nally increasi increasing ng tea prices prices and nationall nationally y consumption consumption of open open tea. 3. Political Political conditions conditions in in the country country may be obstacle obstacle to to exports exports 4. High rising rising inflat inflation ion in the the country country can negati negatively vely effect effect the the brand 5. Tapal’s Tapal’s recent recent marketing marketing campaign campaign and possible possible increas increasee of tapal tea tea market shares shares.. 6. Smuggling Smuggling and increas increasing ing prices prices of raw materi material al raise the the prices of tea products. products.
BCG BC G Matr Matrix ix of Lipt Lipton on •
The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce by Bruce Henderson of the Boston Consulting Group in the early 1970's.
BCG Growth-Share Matrix
Question mark Question mark is a stage in which company co mpany gets the high market growth rate of o f there product but very low relative share of market
Stars Star is a stage in which company gets high market growth rate and high relative share of market. It is a stage in which company reach at its peak point.
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Cash cows Cash cows is a situation in which company gains high relative share (cash generation) of their market but low market growth rate (cash usage).It is a stage in which Lipton yellow label falls in the current market situation.
Dogs A dog is a condition in which the company has very low market growth rate and has a low relative market share. In such condition the company may shut down their work and exit the market.
Porter five forces model analysis (Lipton yellow label tea) Porter five forces model analysis includes: ○
Bargaining power of suppliers
○
Bargaining power of customer
○
Competition among competitors/Rivalry
○
Threat of new entrance
○
Threat of substitute products
○
Bargaining suppliers
power
of
The bargaining power of suppliers for Lipton tea is high in Pakistan because there is an import of tea leaves from different countries like bangladesh, Sri Lanka, Kenya and other countries.
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
○
Bargaining power of customer
If consumers are fewer the bargaining power of the consumers is high. If the consumers are more then the bargaining power of consumer consumer is high. The bargaining power of Lipton’s consumers is very high because there are many brands in the market, market, Like Supreme, Tatly, and Tapal dander at lower price. ○
Competition among competitors/Rivalry competitors/Rivalry
The competition of Lipton yellow label among competitor / rivalry is very high because the lipton tea is an international brand and has a large investment in the market. it has many competitor like tapal, supreme , tatly in the market . so they they face a huge completion in the tea tea market in the market. ○
Threat of new entrance
Lipton yallow label is faceing very few threat of new entrance in the tea market of Pakistan because of limited resoures and huge investment of capital is required to enter in tea market of Pakistan. So new enterance of tea company in the current market is har ○
Threat of substitute products
Lipton yellow label is facing very high threat of substitute substitute product in the tea market of Pakistan. It has also threat of technological changes of their competitor in his product. For example tapal has previously launched a new compaign.
Feedback and control Uniliver Company uses the different strategies to get market control such as; • • • •
Operating Control of Uniliver Strategic Plans of Uniliver market surveys Market Audit of Uniliver
•
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Recom ecomme mend ndat atio ions ns ✔
Lipton yellow label should reduce its prices in order to become a more affordable brand.
✔
Lipton yellow label should increase the use of tea vending machines to all the major cities in Pakistan.
✔
Lipton should introduce its internationally recognized ice tea in Pakistan first on an experimental basis and if this taste clicks with the consumers of Pakistan Lipton stand to be the only tea brand providing the consumers with this product.
✔
Lipton should market its tea bags in small quantity boxes as it has done with it’s lose tea.
✔
Lipton ‘s out of home department is one of its major strengths it should be expanded
Conclusion Lipton yellow label (UNILIVER) company has a strong image in the international market due to large in size in term of financial and human resources capital and wider product range Lipton can look forward to comp compet etit itio ionn in an enco encour urag agin ingg and and grow growin ingg mark market et with with incr increa easi sing ng demand expected to rise rapidly in the current market status.
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
Page lipton
L I P T O N
Y E L L O W
L A B E L
( U N I L I V E R )
