Lipton was created in 1871 by Thomas Lipton and has grown to cover over 15% of the global tea market. Tea drinking is an important part of social and work culture in many places. Lipton enjoys high brand awareness in Pakistan as the market leader with over 70% market share. However, it faces threats from cheaper smuggled tea and rising costs. Lipton targets affluent consumers with messaging around high quality and sophistication.

2. INTRODUCTION ABOUT COMPANY
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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

3. TEA “PART OF LIVES”
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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

4. INTRESTING INFORMATION
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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

5. MARKETING MIX
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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

6. PRICE
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•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

7. PLACE
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 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

8. PROMOTION
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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

9. SALES PROMOTION
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10. SWOT ANALYSIS
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 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

11. WEAKNESSES
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 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

12. OPPORTUNITIES
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 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

13. THREATS
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 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.

14. MARKET SEGMENTATION
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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

15. MARKET SEGMENTATION
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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,

16. POSITIONING
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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

17. ADVERTISING LANE FOR A PRODUCT
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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

18. ADVERTISING BUDGET
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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

19. MARKET POTENTIAL
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 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

20. DISTRIBUTION CHANNEL
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 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

21. SUPPLY CHAIN
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 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

22. HOW DISTRIBUTIONS WORKS
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 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

23. PUBLIC OPINION
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