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Lipton tea

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Lipton tea

  1. 1. INTRODUCTION ABOUT COMPANY 2 LIPTON WAS CREATED IN 1871 CREATOR : THOMAS LIPTON SLOGAN: “ DIRECT FROM GARDEN TO TEA POTS” THOMAS OPENED HIS OWN SHOP AFTER 1880,s BUSINESS GREW UPTO 200 OUTLETS TODAY LIPTON COVERS MORE THAN 15% OF TOTAL WORLD MARKET OF TEA
  2. 2. TEA “PART OF LIVES” 3 At break fast During lunch break at workplace In the evening at home Guest are typically offered between tea and soft drink Common practice to offer tea breaks to hired labor
  3. 3. INTRESTING INFORMATION 4 Total consumption in a country 200,000 to 225,000 tones  1649 cups of Lipton tea are enjoyed every time blinked  8245 cups of Lipton tea are enjoyed every second  1252 cups of Lipton tea are drunk every time you heart beats  52 billon cups of tea are drunk each year  45.75 billion tea bags are produced during a year by Lipton
  4. 4. MARKETING MIX 5 PRODUCT Lipton tea is of high premium quality and mainly to cater the upper, upper middle Pleasure  Taste  Aroma  Flavor  Delight and Freshness Convenience & Health  Availability  Quickly Available  Physiological functional claims  Benefits of Cardamom
  5. 5. PRICE 6 •SPECIAL DISCOUNT OFFERS EVENTS LIKE RAMADAN AND EID •1KG PACKET ONLY AND ITS COSTS AROUND RS.600 •190 GRAMS PACK RS 95 •THE CUP OF TEA COSTS AROUNDRS.15-20
  6. 6. PLACE 7  Special stores like Metro, CSD, and Hyper Star Makro  Nonspecific stores for example general stores bakeries  All type of tea not placed on all stored & outlets  High quality for niche segment  Availability more than 180000 outlets, Serves 150 countries  Head quarter in Karachi 650 distributions all over Pakistan
  7. 7. PROMOTION 8 Lipton tea is advertising itself on TV channels, print media and social networks giving promotion like the chance of winning DSLR camera through lucky draw. Lipton does it promotion done in following ways advertisement Personnel selling Co branding (Lipton ) Sale promotion Internet marketing Publicity
  8. 8. SALES PROMOTION 9
  9. 9. SWOT ANALYSIS 10  Unilever is a multinational company  Powerful heritage of Lipton, in the Pakistan market since 1948  Familiar with psycho and demographics of the local consumers  Strong brand image and brand awareness in Pakistan  Market leader as has 70% market share in branded tea.  Larger sales force  Strong and long-term relationship with distributors, wholesalers and retailers.  Sound and experienced management. STRENGTHS
  10. 10. WEAKNESSES 11  Loss of market share to Tapal in Karachi and Multan  Low market share in N.W.F.P.  Positioning of Lipton Yellow Label as a premium product to which consumers have a weak emotional attachment
  11. 11. OPPORTUNITIES 12  High rate of population growth  Rising literacy  Tea was added to the smuggled goods list in March 1998 and import duty was reduced from 45 to 25 percent. This has collectively placed the entire organized tea business in a more favorable position.  Market opportunity of Lipton Yellow Label in rural areas
  12. 12. THREATS 13  Threat from cheaper tea smuggled into the country via border areas of NWFP and Baluchistan seriously affecting Lever’s sales and earnings.  Possible increase of Tapal and loose tea market shares  Rising inflation, which reduces disposable income of consumers?  Increasing import duties since a lot of raw materials are imported would raise the price of its end products.  Lipton’s profit margin is exposed to rupee devaluation.
  13. 13. MARKET SEGMENTATION 14 GEOGRAPHIC Country Pakistan Country Region All Climate Moderate DEMOGRAPHIC  Age 12+  Gender Male-Female  Income Rs 5000+  Occupation Professionals, Students, Managers, Officials  Education Professionals, Graduates, Student
  14. 14. MARKET SEGMENTATION 15 PSYCHOGRAPHIC Social Class Upper middles, lower Uppers, upper- uppers Life Style Achievers Personality Cultured, energetic. BEHAVIORAL Occasions Regular, Special Benefits Taste, Aroma Loyalty Status Strong User Rates Medium user, heavy user Readiness State Aware, interested, desirous Attitude towards Product Positive,
  15. 15. POSITIONING 16 Lipton is portrayed as a high quality product mostly catering to the affluent or the middle class; it portrays itself as a cosmopolitan, elegant, high class and sophisticated tea.  High quality  High price  Great aroma  New taste  Exciting and refreshing
  16. 16. ADVERTISING LANE FOR A PRODUCT 17 Budget Budget comes to a total approximately 15 billion rupee Budget requirement is necessary as hoarding would be set up at location costing up to 2 billion
  17. 17. ADVERTISING BUDGET 18 Summary report Advertising budget 2007-08 150,000,000 Air media………………………………… 15% ……………………………….22,500,000 Print media……………………………..30%......................................45,000,000 Outdoor media……………………… 20%......................................30,000,000 POS material……………………………10%......................................15,000,000 BTL ……………………………………………….5%......................................22,500,000 Event sponsorship…………………10%......................................15,000,000
  18. 18. MARKET POTENTIAL 19  84% of elite class & high middle class prefer Lipton over tapal where as 95% of middle and lower middle class prefer tapal over Lipton  Whom should Lipton target  85% of brands made purchase by women  Market potential:  Assume this formula that one person consume 1 kg of tea in a year
  19. 19. DISTRIBUTION CHANNEL 20  Northern sales: Multan, Lahore, Islamabad  Sothern region Karachi sukkar, Hyderabad Sales manager 2 Regional manager into different 6 region Zonal manager 19 zones Zones managers further 4-6 zones Territory sales executive & sales officer 110 territory 475 towns at least 1 distributors around 6-8 people per town
  20. 20. SUPPLY CHAIN 21  Manufacturer  Whole seller  Retailer  Consumer Lipton have separate supply chain department  Distributor  Whole seller  Universities/ restaurants/ institution  Retailer  Offices /house  End user application of product
  21. 21. HOW DISTRIBUTIONS WORKS 22  Territory executive officers go to respective assigned distributors and take their order  Their distributors have their own sales man who go from shop to sop  Total amount off all orders is calculated and amalgamated amount forwarded from Lipton distributor to Lipton territory executive officer  As a channel distribution quality check once in two months territory executive officer and distributor perform shop to shop ordering booking
  22. 22. PUBLIC OPINION 23

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