Assignment

SUBMITTED TO: Sir Basharat Ahmad

SUBMITED BY: M.FAHAD KHAN
(L1S14MBAM1155)


SECTION:
( )



DATE:22/4/2014



140k
40k
40k
11k
0
1
2
3
4
5
6
7
8
9
140 40 40 11
Usage
140
40
40
11
Scenario:
Afghanistan has left behind Pakistan in tea imports and has become third largest importer of the
commodity in the world. Pakistan and Afghanistan is doing trade with the law of APTT (Afghan
Pakistan Transit Trade).Due to this trade people are doing smuggling of the tea and selling it in
the form of loose Tea, which is effecting the Local brands badly e.g. Unilever
The following pie is defining the total Market usage of Tea












The question is from where we should grab the market to increase the market of Unilever?
The Unilever is a big multinational company with the direct competition with Tapal, Tetley tea
brands. It have indirect competition with the loose tea brands because it is paying 46% Tax
including
Sales Tax
Excise Duty
Custom Duty
In my opinion Unilever should compete with the brands which are in equality.it shouldnt
compete with the loose Tea brands because it is in different scenario. Unilever can increase their
market share by doing competition with the other 40k usage brands by showing their Distinctive
Competence.Unilever is a quality brand, through marketing activities it can communicate about
its quality to the customers, that Loose Tea is a tea with many of the harmful effect and Health
Risk on the well-being of the people. Unilever tea is make under the high technology with taking
care of hygiene and heath. Unilever should communicate it to the people that they are much
more hygienic than the other brands they should assure them that we are providing product
Loose Tea
UPL
without mixing of harmful material. Other than that they can do following to grab market share
Innovation, Maintain CRM,Run Market Programs, Optimum and Same Quality, Focus on
customer needs and Commitment
Compete with Competitors
As in competition with the other tea brands e.g. Tetley or Tapal Unilever should make
innovation and SCA in their products to gain market share e.g. Tea with different flavors with
the taste and life style of Pakistani people. You can say it tea with different Traditional Flavors.
Smuggling should be stopover
Importers and commercial tea packers in Pakistan say the rising Afghan tea imports are the result
of an increase in smuggling under the Afghan Transit Trade Agreement (ATTA), causing losses
of millions of rupees to the national Treasure. In my opinion tea smuggling should stop because
total of 800,000 tons tea was imported in the country, while the import of this commodity
through Afghan Transit Trade stands at 110,000 tons annually. The huge amount of tea trading
shouldnt be allowed by ATT when the population of Afghanistan is hardly 30 million. The
Afghans consume less, and other quantity is smuggle in Pakistan which is affecting the Brands of
Pakistan. Consumer courts and laws should be established to stop these illegal activities that are
affecting also on the health of people.

My Conclusion

Implement Free Trade Agreements

Government should implement Free Trade Agreements like SAFTA and NAFTA. Free trade
policies will create a level of competition in today's open market that engenders continual
innovation and leads to better products, better-paying jobs, new markets, and increased savings
and investment in the Tea Market. Free trade enables more Tea at lower prices, thereby it will
increase standard of living. They should legalized trade so that the state also get benefit of it.
Because after it the people will pay Custom duty, Sales tax, Regulatory duty and as a result GDP
will increase.
Moreover, Free trade will helps to spread the value of freedom, reinforce the rule of law, and
foster economic development in poor countries. The national debate in Pakistan over trade-
related issues too often ignores these important benefits.