This document provides an overview of the tea industry in Pakistan and profiles of four major tea brands - Tapal, Lipton, Vital, and Tetley. It discusses each brand's history, target market, products, pricing, placement, and promotional strategies. Tapal and Lipton are the market leaders and face direct competition. Vital has a smaller market share as a follower brand. Tetley struggled to succeed in Pakistan. The tea industry involves both branded and loose tea sales.

1. 2016

2. TEA INDUSTRY IN PAKISTAN
Submitted To: SIR NAVAID ALI KHAN
Submitted By:
Prithvi Raj Soni
Date: 15-12-2016
INSTITUTE OF BUSINESS MANAGEMENT

3. Table of Contents
TEA INDUSTRY IN PAKISTAN................................................................................................................4
TAPAL (THE LEADER)...........................................................................................................................5
LIPTON (THE CHALLENGER).................................................................................................................6
VITAL (THE FOLLOWER).......................................................................................................................9
Tetley(THE NICHE) ...........................................................................................................................12

4. TEA INDUSTRY IN PAKISTAN
The historyof teadrinkinginthe subcontinentcanbe traced far back.It is said,thattea was introduced
withthe arrival of the Britishinthe Subcontinentandbecame popularinthe regionduringthe British
rule.The Britishpeople werecleverenoughtouse apowerful slogan,whichremainedinthe mindsof
the people.Theysaid,"Inwintersitprovideswarmthandinsummers,itgivesfreshness."
At presentthere are two kinds of tea available in the market: branded and unbranded (loose) tea, the
ratiois (55:45) respectively.Therefore,the importersare alsoof twotypes,thoughbothimportteafrom
the same countries.Bulkimporterssellteato retailersinloose form, while the second category of bulk
importers sell packaged tea under brand names.

5. TAPAL (THE LEADER)
Tapal teais successfullyrunningbusinesssince 1980sand has managedto embeditsrootsdeepintothe
tea industryof Pakistan.The essence of its success is based on its core values which are Trust, Quality,
Creativity, Innovation, Leadership and Unity. Tapal tea is a brand which is family oriented and which
believesincreatingastrongfamilybondovera cup of tea. Its success on social media can be gauged by
the fact that it hasthe highestfollowingof 11,000 fanson Twitterand the fastest growing fan following
of 700,000 on Facebook.
Our aimis to make the brand reachable to our target audience by creating a vast product portfolio and
stock keeping units. These come in the form of Tapal Tezdum, Tapal Daanedar, Family Mixture, Tapal
Green Tea and 3-in-1 ready to drink sachets.
Tea industry in Pakistan has a number of firms which are working hard to secure the largest market
share.Therefore, Tapal facesnecktoneckcompetitionwith Lipton at all times and work hard to secure
its market share by implementing various marketing strategies. These include the following:
a) Keeping tabs on the competitor:Itisimpertinenttokeepa close look on the competitor and
stay aware of their advancements. Hence, Tapal plays the role of being proactive firm which
responds to all the activities of Lipton on time.
b) Television Commercials: Brand reinforcement is at the core of Tapal’s marketing. This
strategy does not ensure a large increase in the consumer body but it does create brand
reinforcement and customer loyalty.
c) Product Shelfing:The product must have clear visibility in all the super markets so that it is
approachable by the customers. It must be kept up front in the store.
d) Stock Keeping Units: Tapal ensures that it becomes affordable for all type of consumers.
Therefore, it is available in various SKUs which range from Rs.5 Sachet to 500g packet and also
3-in-1 ready to drink tea.
e) Complementary Goods:We alwayswork towards creating customer delight. In this quest we
provide complementary goods with tea such as our customized mug. We are also planning on
increasing the number of these goods and collaborating with other biscuits brands.
f) Vertical Integration Forward:Itisimportanttotake steps to further promote our product by
presenting it directly to the consumers. This can be done by creating Tapal theme Chai café
across Pakistan.
g) Brand Activation: Promote tapal in universities, parks, shopping malls, ramzan/eid
transmissions etc.
h) Hotel/Restaurant Endorsement Program:Teahasa wide customerbase whichincludes C2C
and also B2B market. Therefore we can collaborate with different restaurants and hotels and
urge them to provide our tea only.
i) Corporate Social Responsibility: Itis importanttogive backto this communityinwhichwe
live andcontribute inapositive manner.Thiscanbe done effectivelyif thisiscollaboratedwith
the effortsof marketing.Accordingtothe new rule of the highcourt of Sindh,streetboardsare
bannedfrom installing.Therefore,we canlocate areasacrossthe city whichare a little gloomy

6. and lightupthe entire areaby installingcustomisedTapal packaged lightbulbsacrossthe street.
Thiswill notjustlightupthe entire areabut will alsocontribute towardsmarketingbycreatinga
positive wordof mouth.
LIPTON (THE CHALLENGER)
History of Lipton:
Liptonwas createdat the endof the 19th centurybySir ThomasLiptoninGlasgow,Scotland.
SLOGAN: "DIRECT FROM THE TEA GARDENS TO THE TEA POT“
VISION: Liptonvisionistoavailable withinanarm’sreach of everyindividual desire.
Lipton in Pakistan:LiptonwaslaunchedinPakistanin1948 and isone of the oldestbrandsinthe
country.
Lipton’s Portfolio in Pakistan:
a) LiptonYellowLabel Tea
b) LiptonMega Daane
c) LiptonTeabags
d) LiptonGreenTea
e) LiptonFlavoredTea
Liptonisone of the world'sgreatrefreshmentbrands,makingabigsplashinthe beveragesmarketwith
tea-baseddrinksincludingready-to-drinkteaandotherhealthy,refreshingalternativestosoftdrinks.
Lipton stands for brightness, vitality and fun with natural goodness.
a) YellowLabel isprobablythe world’smostfamoustea.
b) It’sthe world’sbest-sellingteabrand,hasbeenestablishedformore than100 years
c) Liptonplaysthe role of an energeticbrandthataimsto redefine the meaningof teainpeople’s
lives.
d) Liptonteaprovidesgreattaste,aroma,flavorand color.

7. Target Market of Lipton:
Commerciallytheytargetthe urbanareasof Pakistanwhocome inthe categoryof average middle class
or above.
POSITIONING:
Initiallythe single ideabehindLipton is
“Light premium priced tea with best quality”
Later, theyre-positioneditselfspecificallyaddressedlocal customersbyoldmelody
Chai chahye. Kaun sy janab
Lipton he to hay hmm lajawab
Thentheypositioneditstea.The teawhich
“ClearThe Mind”
Re- Positioning
Afterthat in2009, a newcampaignwaslaunchedwhichcommunicatedthat;
‘SIP OF INSPIRATION’
Nowthe brand has transitionedtowardsasimplermessage
‘DRINK POSITIVE’
Competitors in Pakistan:
a) Tapal Danedar
b) Tatley
c) Vital Tea
Distribution Channel
Manufacturers Wholesalers Retailers Consumers
Promotional Tools:
The Lipton doesit promotioninfollowingways:
a) Advertisement
b) Personnel selling
c) SalesPromotions

8. SALES PROMOTION
Lipton,the world’sleadingteabrand,launchedthree monthlong Dip& Winconsumerpromotion
campaign
MARKETING CHANNELS
a) Newspaper
b) Magazines
c) Bill boards
d) Special promotionsorpackages
e) Internetmarketing
f) Bus branding
g) Sponsorship
Associating With Music and Musician
In ads theybringsingerslike NaziaHassanandZohaibHassan,MeeshaShafi,Arif Loharand Ali Zafar.
Recommendation:
As Liptonisthe oldestandfamousteabrand inPakistantheyshouldfuscousonhow tosustainand
grasp more marketshare because manynew entrantsare enteringinmarket
Specially,Tapal teaisgraspingmore marketshare byintroducingnew productsanddifferentappeal.

9. VITAL (THE FOLLOWER)
The Vital Group started its operations in 1991 with the launch of VITAL TEA – which has now
become the choice of every third person who drinks tea in Pakistan. With its passion to serve
and due to the high demand from its customers and buyers, VITAL GROUP has now launched
other personal care items, such as VITAL BEAUTY SOAP.
Vital Tea is VITAL GROUP’s very first product which was launched in a small town of Punjab,
‘Haroonabad’. Within a very short span of time, we started selling it across the country and to a
larger market outside Pakistan also. Vital Tea’s export started since 2005. The tea is now
available in different flavors.
Vital Tea leafs are hand-picked in the mountains of Kenya. To capture the aroma of the tea,
these leafs are, then, processed on the same day and shipped to our facility in Pakistan. Our
Master Chef blends the mixture for a rich color and taste that touches the hearts through taste
buds. Every cup of Vital Tea provides a hot and refreshing blend of perfect aroma, color, and
taste that serves your taste buds well.
Try once and you will agree with our description!
Due to high demand of our customers, green tea product will also be available in the local and
global market.
Although it is a successful company and generating reasonable revenue but it is needed to
come forward in front of other competitive brands like Lipton Tea, Supreme Tea and Tapal Tea
to give them tough time.
Price of the Vital Tea product is less than that of its competitors. But as far as placement and
promotion mix is concerned, this brand has weak distribution channel and promotional
activities relatively. They, actually, is still to reach their product on every required spot of the
country as well as internationally. Vital Tea has a lot of opportunities if they improve their
distribution channel and advertising issues. It has strong competitors in the market and it has
some economical and may be political threats as well.
MARKETING MIX 4PC’S
The four marketing mix of Vital Tea are as follows:
PRODUCT
The product Vital Tea has not exceptional but good image brand image in the mind of
consumers. The quality of Vital Tea makes it different and 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 not a destination. Quality is a way of life
to us.
Trade name: Vital tea, A Eastern Product (PVT) Limited

10. The actual product: Tea Beverage
Branding: Yellow aspect of refreshing, hard pack and soft pack both also tin pack and plastic
Packing.
Brand personality & Brand equity:
a) Freshness, Healthy, Innovative, quality etc.
b) Vital Tea provides a quality, consistent, innovative and accessible tea reputation
c) Marketing considerations Product life cycle.
d) It is a product at its growth level so they are finding new multiple segments.
PRICE:
Vital Tea has never compromised on quality so they adopted value based pricing. The pricing
strategy that they are following for Vital tea is cost oriented as the price that it is taking
comparatively low then its main competitor. Its price varies according to cost and even in high
quality.
Products with Prices:
As you know that prices are selected up to date because prices don't remain constant. So,
select the prices with current rate.
For example: 10 RS. Sachet is for 4 rupees
Placement:
Distribution plays an integral role in any company whether it’s a FMCG or utility
Good. Vital tea has a distribution network spread across the large area of Pakistan. The growing
image and popularity of the brand is making it the strong competitor of other players in tea
making industry. Vital Tea caters to its customers by providing Vital tea to more than 50,000
outlets in Pakistan, which includes super stores, general stores, grocery stores and discount
stores and all departmental stores.
Vital tea has it’s headquartering in HaroonAbad and more than 200 distribution offices all over
Pakistan. 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 distribution channel.
Promotion:
The company uses different promotion techniques they provide different items to
people such as:
a) Caps
b) Cups.
c) Printed T-shirts.
d) Discounts.
e) Cars & Motor Cycles Scheme (now in Multan Division and Rawalpindi)

11. The company uses different sales promotion techniques at different time of the year depending
on the sales of the product.
Electronic Media: The company is spending a lot on electronic media. In there advertisement
they hire renowned celebrities.
Advertisement: Vital Tea uses different types of advertisement as follows:
Television: Vital Tea spends on television advertisement. Commercial through cable network,
movies, TV shows.
Magazines: Full page advertisement including Akhbar-e-Jahan, Khabrain Family Magazine,
Fashion & Business Magazine.
Strengths:
Experienced and Quality Management
Strong Ethical value (culture and heritage)
Highly Innovative
Strong Company image
Quality & Variety
Effective & Attractive Packaging
Weaknesses
High prices of the Product
Substitute Products
Lack of Advertisement
Weak Distribution Network
Comparatively less Frequent Schemes and
Discount Packages
The strength of the company would be the innovation and the high quality products. Because of
these the company is able to survive in the market and still earning a good market share
comparing to its competitors.
Opportunities
Brand is the part of traditional drinking habits
Quality Control Department
Comparatively less product prices
Huge gap to cover the area and enhance business
Export in other country making its image in Pakistan
Launching of tea Bags
One of the greatest opportunity that Vital Tea has its huge market which is increasing as the
population is increasing. Tea has become a staple product in Pakistan which cannot be denied
at any stage of age.

12. Tetley (THE NICHE)
INTRODUCTION:
Tetley came in to being in 1837 in England. Over 179 years ago, two brothers Joseph and
Edward Tetley founded Joseph Tetley & Co. in 1837. In 1856, they moved the company to
London—then the center of the world's tea trade. They eventually parted, and Joseph unveiled
the newly named "Joseph Tetley & Co., Wholesale Tea Dealers."
In 1888, the company started catering American agents to distribute Tetley's teas throughout
the United States.
In 2000, Tata global beverages acquired Tetley by 56% of total shares.
Our Mission
a) Tetley, the better state of mind teas.
b) Our belief: A better state of mind begins with a better tea.
c) Tea Is Extraordinary
Tetley Pakistan:
Having an experience of around 150 plus years and more than 40 countries, Tetley came into
Pakistan in December 2003 with joint venture of Lakson group and , Tata global beverages.
Flavored Tea
a) Masala
b) Earl Grey
c) Lemon
d) Ginger
e) Elaichi
f) Tulsi & Lemon
Target Market:
Behavioral and Consumption:
Tately has targeted non users, who have tried tea bags but are not aware of flavored tea bags.
Consumption is low; heavy tea drinkers but medium tea bag users
Psychographics:
Lifestyle: Working professionals who live a stressful and busy life Attitude/Interests: Health is
of utmost importance, they are active and don’t compromise on their body and health. They
are open to new experiences, are smart go-getters.

13. Needs: They feel they deserve to get their choice and don’t want to stick to just alternatives.
Convenience and hygiene is of utmost importance to them.
Geographic:
Geographically Tately has divided its products into two segments. Tately Josh is catering interior
of sindh market. Tately Gold is targeting market of metropolitan cities.
Distribution Channel
Manufacturers Wholesalers Retailers Consumers
Promotional Tools:
Tately promotes its products in following ways:
a) Advertisement
b) Personnel selling
c) Sales Promotions
d) ATL
e) BTL
Tately Gold, Sonahery chai, started its biggest campain “Na Pasand Aae, To Paise Wapas”.
Tately started its sells promotion activities by providing free spoon and cup with pack of one Kg
tea.
Conclusion:
Despite being second largest in the world, Tately could not survive in Pakistan due to many
reasons:
a) Trade restrictions of India and Pakistan
b) Lower Market research
c) Poor segmentation
Recommendation: Tately can come up with Desi taste and heavy marketing. It can improve by
creating more awareness of its brand and can take the same market position.

14. Nature of competition:
Sine teaindustryisverysensitive intermsof prices,companieshave toplaymajorrole ingrabbingthe
market.Asmentionedabove the 55% teacomes throughsmugglingand companieshave toplayon rest
of the ground.Inorder to be marketleader,companieshave tocaterall the aspectsof marketing.
Tapal haspositionedthemasfamilytea,whereas, Liptonhaspositioneditself asbusinessperson’stea.
Competitionisdirectbetweenbothof thembecause of same flavours,andsame prices. Bothof them
followalmostsame marketingstrategiestoattract customers.
Vital teahas targetedrural areasof country,whereas,tetleyhastargeteditself aspremiumprice tea.
Competitionisdirectbetweenbothbuttheyhave notpositionedthemselveswell.
Tapal hasindirectcompetitionbetweenVital andtetley.The reachof Tapal isfar more than those of
others,whereas,othertwoare limitedtosome of the areas.
PRINCIPLES BEINGFOLLOWEDBY TEA BRANDS
If we speak of principles, all of them being large brands have followed most of the principles
required to stay and survive in the market.
Firstly, if we consider brand positioning which is how customer perceives our products in their
mind and how distinctive it is considering current market. All of these brands; lipton, Tapal,
Vital and Tetley has positioned themselves in a unique or different manner.
Secondly, if we consider branding alone which is how we make our product unique or different
from other products which could be in form of quality, design, reliability etc. Tapal has launched
itself as a unique brand which offers different flavors, colors etc. Lipton has premium quality
and variety.
Thirdly, if we consider product strategy principles they are also being followed as tapal has
different product and services differentiation as compare to lipton, Tetley and vital. Tapal is
considered differently as it is used more in rural areas as compare to lipton and other brands
because people like to have strong tea which they feel refreshes them. Similarly, lipton is liked
more by people in urban areas for its premium quality.
All the major principles like branding, positioning, product strategy, brand equity, designing and
managing services are followed since all these tea companies are reputable. Tapal and lipton
being the leaders and direct competitors follow most of the principles as they are not only
surviving, but also making profits and increasing their market share.