Why tapal ice tea failed to grab the market.

2. PRESENTED BY:
HAMMAD MUKATI – 1335114
PRESENTED TO:
SAMIN AHMAD

3. EXECUTIVE SUMMARY
 In 1947, Tapal Tea (Pvt) Limited started out as a family concern under the personal
supervision of its founder, Adam Ali Tapal.
 Tapal has become the largest, 100% Pakistani owned tea company in the country. It has
modern tea blending and packaging factories, warehouses equipped with state-of-the-art
equipment and a team of highly dynamic professionals.
 14th of June - was a historic day at Tapal Tea Pvt Ltd. Their first step towards
expansion with the introduction of its new product “Tapal Ice Tea” (Chill karo).
 But fatefully the Tapal Ice Tea failed.

4. History Of Tapal
 The journey of Tapal's remarkable success is the combined
efforts of three dynamic generations of the Tapal Family. In
1947, Tapal started out as a family concern under the
personal supervision of its founder, Adam Ali Tapal.
 Tapal moved from success to success introducing tea
brands to suit every taste and pocket sold from its retail
outlet in Jodia Bazar, Karachi. The quality of Tapal teas
soon became legendary and people from all parts of
Karachi started lining up at the outlet to purchase tea.
 Today Tapal Tea is managed by the founder's grandson,
Aftab F. Tapal. He introduced new tea concepts and
developed a wide range of tea blends catering specifically
to the tastes of people throughout Pakistan.

5. WHY TAPAL ICE TEA
 Ice Tea came to notice of the Tapal management when it was found that western culture is
being adopted moreover people are more conscious about healthy and nutrition
beverages.
 Independent industry research shows that healthy beverages were increasing claiming
a bigger share of the Pakistani market and were growing at a tremendous pace.
 Tapal started to respond to consumer demand and research by introducing “Tapal Ice
Tea”.
 And Tapal Tea Pvt Ltd. Pakistan’s own and favorite hot tea beverage company took its first
step towards expansion with the introduction of its new product “Tapal Ice Tea”.

6. TAPAL’S PHILOSOPHY
To act locally, but think
globally!

7. OBJECTIVE OF TAPAL
a) Goodwill of Company
b) Good Quality
c) Customer’s Satisfaction

8. Segmentation
• A & B class People & Youth.
Targeting
• Only available into city not rural area
Positioning
• Less calories ,no artificial color

9. TAPAL positioned it self as the experts in tea. Made from
real tea, TAPAL Ice Tea combines the goodness of Tea
Antioxidants with no preservatives, no artificial colors and
only 16% sugar which is less than most regular soft
drinks. They want to build brand image on their product
USP.

10. MARKETING MIX 5 P’S
1. Product
 Core benefit
 Actual product
Trade name
Branding
brand personality
 Augmented product

11. 2. Price
 320 ml tin can for 30 rupees into liquid form
 25 gm sachets for 6 rupees into powder form
 less for more “high quality with less price”
 Other brands charged for the beverages more then
the TAPAL ICE TEA for the same quality level.

12. 3. Placement
CHANNELS OF DISTRIBUTION
Manufacturer- -----◊ Distributor---------◊ Retailer--------◊ Consumer

13. 4. Promotion
 It launched with a fully integrated marketing program that
includes.
 Print.
 Banners.
 Radio.
 Advertising.
 Web/interactive.
 Consumer sampling programs.
 TAPAL is also using the online portal advertisement for Ice
Tea promotion.

14. 5. Packaging
Cans
320ml into liquid form
Lemon & lime
Peach
Sachets
25 gms into powder form
Lemon & lime
Peach

15. MAIN COMPETITORS
 Initially there were no direct competitors as they were the innovators so
they have first mover advantage.
Direct Competitor:
Lipton Ice Tea
In-Direct Competitors:
i) Brand Competitors in liquid (carbonated drinks)
ii) Brand Competitors in Sachet (TANG & LIBO PANI)

16. ISSUES FOR FAILURE
 No market Orientation ( not inside out approach)
 Strong market of carbonated drinks & juices.
 Product cost and benefit analysis wasn’t well communicated.
 Fade Positioning and lack of awareness about the product
 Visibility & Availability Issues
 Un highlighted Unique selling points
 High cost (Manufacturing outsource) .
 Budget constraints

17. Strategic Decision taken by the
company
 Company take over the distribution to increase the
availability.
 Increase Promotion activities but no success
 Company cooperate decision was to temporary shut
down the product because it require more budgets.
 Buy back the stock and Reselling it with bundle offers
to safe from the expiry.

18. PROPOSED STRATEGIC SOLUTIONS
 Market Audit ( strategies come from the market place, consumer
insights)
 Repositioning and increase awareness as it is a Re-launch
 Collaboration & aliens with Restaurants, MN Offices , petrol pumps,
cafes, & cinemas etc
 Own Tea parlor at zamzama ( With ice tea proper branding)
 Co-branding with snacks & confectionaries
 Association with Local airlines to build a consumer taste so that they
can recall it easily

19. PROPOSED STRATEGIC SOLUTIONS
 Establish Emotional connection with the customers
 Loyalty Programs with High tech technology system and Customer data
Gathering
 Reorganize the market & target to SSE A & B from age 15 to 55.