http://www.amcy5.com/projects/marketing/amcy9.

htm

MARKETING MIX of TEA

PRODUCT

The core

o Tea Beverage

The actual product

There are at least six varieties of tea: white, yellow, green, oolong,
black and puerh of which the most commonly found in the market are
white, green, oolong and black. All teas are made from the same
species of plant, though different varieties may be used, and the
leaves are processed differently.

Consumers can purchase tea in two forms. One is loose tea and the
other is packed tea.

Marketing considerations

Product life cycle: Tea is a product at its maturity level so they are
finding new multiple segments to differentiate themselves.

PRICE

The pricing strategy that they are following is cost oriented, as the
price that Tapal is charging, is comparatively low then its main
competitor Yellow label tea. The price going for some products are

200 grams Tapal Danedar Hard Pack 80rs.

400 grams Tapal Danedar Family Pack 155rs.

So its price we can say that varies according to cost and even in high
quality.
CHANNELS OF DISTRIBUTION

Manufacturer ------ Distributor--------- Retailer

-------- Consumer

The channel of distributions according to this brand is simply as shown

by the diagram as manufacturer to distributors who vary according to
geographical dispersion and then to retailer to final consumer..

From these warehouses the product moves to the distributor. And from
these distributors the product move to the next, which is retailer and
then to the consumer.

PROMOTION

Objectives

To make the brand remind the consumer as much it could be.

Tea manufacturers are using both BTL and ATL for the purpose of
promotion.

Through BTL producers are focusing on display racks, sign boards

etc. mainly placed to different retailers for heavy promotion.

The specific term used by tea is the MODERN TRADE so that they
have an eye contact of the product with the customer. In this they
are using shelves to display their product in big stores like
ALFATAH, HKB, and JALAL SONS.

Through ATL the main focus is on broadcast and print media

promotion by placing ads on T.V and placing newspapers ads as
well.
Q.2

Segmentation:

The three tea brands which we choose for this assignment are Lipton
Yellow label, Tapal Denedar and Tetley. Segmentation basis of these
brands in Pakistan were almost same. The class and geographical
location we can say is almost same for both the brands.
So, for better understanding we generalize it in a proper table form.

Segmentation Base Selected

Segmentation Variables
GEOGRAPHIC SEGMENTATION

World region Asia

Country Pakistan
Cities All major cities
Density of area Urban-rural
Climate Hot and Dry
DEMOGRAPHIC SEGMENTATION
Age 18-60+
Sex Male, Female
Marital status Married, Unmarried
Income Rs. 15,000+
Occupation From middle class to upper class
Family size 1-2, 3-4, 5+

PSYCHOGRAPHIC
Actualizes, Fulfilled, Believers,
Life style
Achievers

SOCIOCULTURAL
SEGMENTATION
Nationality Pakistani
Social class Middle and upper class

Family life cycle
Major religion of Pakistan. Islam,
Religion
Sub-cultures (Race/ethnic)
USE-RELATED SEGMENTATION
Usage rate
Awareness status
Brand loyalty
Bachelors, young married, full
nesters, empty nesters
Christianity and Hinduism and
small percentage of others
Asian
Daily
Aware, interested
Strong

USE-SITUATION
SEGMENTATION
Occasions Regular and parties
Objective To feel fresh and healthy.
Location Home, office
Person Self, family members, friends

BENEFITS SEGMENTATION
Economy, value-for-the-money

Positioning

The Pakistan’s tea makers can be classified into the “blended and
packed” segment of the market and the “loose” tea segment.
Blending. Packing and distribution is dominated by inilever, the world’s
largest corporation in the tea industry, and Tapal ltd.

Positioning of Tapal:

Tapal tea is a very competitive local firm with a 41% share of the
domestic branded tea market. Tapal tea is available in all big and small
tea stores and shops of Pakistan. Tapal Danedar is basically the one to
one competitor against Lipton Yellow label. The class and geographical
location we can say is almost same for both the brands.

Positioning of Lipton:

Being a product of world’s greatest consumer goods company

‘Unilever’ and also leader in home and personal care markets. This
brands meet people’s expectation like nutrition, hygiene with taste.
Also, with high market share in Pakistan market i.e; 43% of the whole
market they are improving quality and also offers different taste to
capture other market as well.

Positioning of Tetley:

Being a new tea brand in Pakistan market as compared to Lipton and

Tapal along with an International reputation they are continuously
capturing 4% of the market in Pakistan. Because of strong great taste
and quality they are focusing to the real energetic tea lovers.

Targeting

Targeting of Tepal Denedar:

The target of Tapal is the urban areas of the country and along with
the use in offices and business as well. Tapal has always targeted as
its potential consumers. With the view that the younger generation will
be Tapal’s future customers, Tapal is actively supporting the fast
developing music industry in Pakistan. It has sponsored the leading
singers in Pakistan and actively participates in music concerts.

Targeting of Lipton:

In Pakistan they focus more on urban areas (offices, hotels,

restaurants, café, and banks) where people prefer light tea.

Targeting of Tetley:
They are targeting individuals, families of both rural and urban areas.
Especially those who like strong natural taste with international
quality.

Differentiation:

Tapal differentiate their tea on the basis of best quality and taste from
the local brand with international standard.

References:

www.tapaltea.com

http://www.amcy5.com/projects/marketing/amcy9.htm

http://www.docstoc.com/docs/10491099/Tapal-Tea---Marketing-Management-
Presentation/