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CONTENTS

Uni Levers Codes of BusinessPrinciples 6

Uni Lever Pakistan

9

Market Analysis

11 Liptons Targeting Strategies

13

Market Segmentation

13

Uni Levers Lipton Yellow Label

16

Product

16 Pricing

21 Placement

22

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Promotion

24

Swat Analysis of Lipton Yellow

Label 26

Recommendation

27

PREPARED BY

Hafiz Umair Sultan

Amin Chiraghuddin Mohammad Owais

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We dedicate this humble effort of ours to

the brave and courageous people of Iraqwho even after so much suffering are

standing strong

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Acknowledgement

A million grateful thanks to Allah the almighty that gave usthe perseverance to complete this project, which was

indeed a difficult one.

We are very thankful to our teacher Miss Saima for

assigning us this report. This was a totally new experience

for us to get the information, as to how companies make

their marketing strategies like targeting strategies,distribution, pricing strategies etc.

We would also like to acknowledge the invaluable

guidance; supervision and encouragement provided by

Miss. Benifer, Miss Tanzeen and Mr. Ali Sheikh without

whom it might not have been possible to complete the

report.

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Executive Summary

The report is an effort to identify different aspects of

Marketing Management in Lipton Yellow Label tea, whichis one of the major players in the branded tea market in

Pakistan; Lipton the only international tea brand in Pakistan

changed its initial elite based marketing and turned to

serving the masses of Pakistan with premium quality tea.

Towards the start of report figures regarding the Lipton

yellow label market share, total market, and contribution

from different tea brands are also given.

An integral part of the report is detailed analysis of the

marketing aspect including pricing, product, placement and

promotion areas.

Product Life Cycle and Big Matrix of Lipton yellow label

tea are also discussed. Challenges and Recommendationsare also given to the best of our knowledge.

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Preface

Attached is the report for the course of Introduction to

Marketing. The report is about relating our Marketing

knowledge to a real life product. The product, which

we chose, is Lipton yellow label tea. This report

consists of application of all the 4 Ps of Marketing i.e.

Price, Promotion, Placement and Product.sa

Interviews, with the Uni levers officials, were conducted

prior to the beginning of this report. The marketing

information is based on the guidance provided by the Uni

lever officials during our visits.

The report is divided in four main sections. The firstsection cover the details of what the Lipton yellow label is

i.e. the Product, then Pricing strategies of tea and then

Place and Promotion aspect discussed. Towards the end of

the report, Challenges and Recommendations are also given

to the best of our knowledge.

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Uni levers Mission Statement

Our purpose in Uni lever is to meet the everyday needs of

people everywhere to anticipate the aspirations of our

consumers and customers and to respond creatively and

competitively with branded products and services, which

raise the quality of life.

Our deep roots in local cultures and markets around the

world are our unparalleled inheritance and the foundation

for our future growth. We will bring our wealth of

knowledge and international expertise to the service of

local consumers a truly multi-local, multinational.

Our long-term success requires a total commitment toexceptional standards of performance and productivity, to

working together effectively and to a willingness to

embrace new ideas and learn continuously.

We believe that to succeed requires the highest standards of

corporate behavior towards our employees, consumers and

the societies and world in which we live. This is Uni lever's

road to sustainable, profitable growth for our business and

long-term value creation for our shareholders and

employees.

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Uni Levers Code of Business Principles

Standard of Conduct:

We conduct our operations with honesty, integrity and openness, and with respect for the humanrights and interests of our employees. We shall similarly respect the legitimate interests of those

with whom we have relationships.

Obeying the Law:

Unilever companies and our employees are required to comply with the laws and regulations of

the countries in which we operate.

Employees:

Unilever is committed to diversity in a working environment where there is mutual trust and

respect and where everyone feels responsible for the performance and reputation of our company.We will recruit, employ and promote employees on the sole basis of the qualifications and

abilities needed for the work to be performed. We are committed to safe and healthy workingconditions for all employees. We will not use any form of forced, compulsory or child labour. We

are committed to working with employees to develop and enhance each individuals skills and

capabilities. We respect the dignity of the individual and the right of employees to freedom of

association. We will maintain good communications with employees through company based

information and consultation procedures.

Consumers:

Unilever is committed to providing branded products and services which consistently offer value

in terms of price and quality, and which are safe for their intended use. Products and services willbe accurately and properly labelled, advertised and communicated.

Shareholders:

Unilever will conduct its operations in accordance with internationally accepted principles of

good corporate governance. We will provide timely, regular and reliable information on our

activities, structure, financial situation and performance to all shareholders.

Business Partners:

Unilever is committed to establishing mutually beneficial relations with our suppliers, customers

and business partners. In our business dealings we expect our partners to adhere to businessprinciples consistent with our own.

Community Involvement:

Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our

responsibilities to the societies and communities in which we operate.

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Public Activities:

Unilever companies are encouraged to promote and defend their legitimate business interests.

Unilever will co-operate with governments and other organizations, both directly and through

bodies such as trade associations, in the development of proposed legislation and otherregulations, which may affect legitimate business interests. Unilever neither supports political

parties nor contributes to the funds of groups whose activities are calculated to promote party

interests.

The Environment:

Unilever is committed to making continuous improvements in the management of our

environmental impact and to the longer-term goal of developing a sustainable business. Unilever

will work in partnership with others to promote environmental care, increase understanding of

environmental issues and disseminate good practice.

Innovation:

In our scientific innovation to meet consumer needs we will respect the concerns of ourconsumers and of society. We will work on the basis of sound science, applying rigorous

standards of product safety.

Competition:

Uni lever believes in vigorous yet fair competition and supports the development of appropriate

competition laws. Uni lever companies and employees will conduct their operations in

accordance with the principles of fair competition and all applicable regulations.

Business Integrity:

Unilever does not give or receive, whether directly or indirectly, bribes or other improperadvantages for business or financial gain. No employee may offer, give or receive any gift or

payment, which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe

must be rejected immediately and reported to management. Unilever accounting records and

supporting documents must accurately describe and reflect the nature of the underlying

transactions. No undisclosed or unrecorded account, fund or asset will be established or

maintained.

Conflicts of Interests:

All Unilever employees are expected to avoid personal activities and financial interests, which

could conflict with their responsibilities to the company. Unilever employees must not seek gainfor themselves or others through misuse of their positions.

Compliance - Monitoring - Reporting:

Compliance with these principles is an essential element in our business success. The Unilever

Board is responsible for ensuring these principles are communicated to, and understood and

observed by, all employees. Day-to-day responsibility is delegated to the senior management of

the regions and operating companies. They are responsible for implementing these principles, if

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necessary through more detailed guidance tailored to local needs. Assurance of compliance is

given and monitored each year. Compliance with the Code is subject to review by the Board

supported by the Audit Committee of the Board and the Corporate Risk Committee. Any

breaches of the Code must be reported in accordance with the procedures specified by the Joint

Secretaries. The Board of Unilever will not criticise management for any loss of business

resulting from adherence to these principles and other mandatory policies and instructions. The

Board of Unilever expects employees to bring to their attention, or to that of senior management,any breach or suspected breach of these principles. Provision has been made for employees to be

able to report in confidence and no employee will suffer as a consequence of doing so.

UNI LEVER PAKISTAN

Touching hearts, Changing lives

Uni Lever (Pakistan) Limited Formerly known as Lever Brothers (Pakistan) Limited. The

Company's principal activities are to manufacture and distribute Tea (Brooke Bond, Lipton);

Wall's Ice Cream; Edible Oils and Fats (cooking oils, margarine, specialized fats/oils for the bakery/food industry under the Dalda, Blue Band and Planta brand names); Detergents and

personal products (Lux, Rexona and Lifebuoy soaps, Sunsilk shampoo); Fabric Wash & Home

Care (Power Surf, Wheel Washing Powder, Vim). Beverages accounted for 41% of 2001

revenues; Detergents and personal products, 32% and Food, 27%.

Uni lever is one of the biggest consumer goods company in the world. UNI LEVERS core

business is the production of fast moving consumer goods or FMCG.

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Every day, around the world, people reach for Uni Lever products. Their brands are trusted

everywhere and, by listening to the people that buy them; Uni Lever has grown into one of the

worlds most successful consumer goods companies. In fact, 150 million times a day, someone

somewhere chooses a Uni Lever product.

Look in your fridge, or on the bathroom shelf and youre bound to see one of Uni Levers well-

known brands. They create market and distribute the products that people choose to feed theirfamilies and keep themselves and their homes fresh.

Peoples lives are changing fast. As way we all live and work evolves, our needs and tastes

change too. Uni Lever aims to help people in their daily lives. So they keep developing new

products, improving tried and tested brands and promoting better, more efficient ways of

working.

Uni Lever was created in 1930 when the British soap maker Lever Brothers merged with the

Dutch margarine producer, Margarine Unie. At the time, an international merger was an unusual

move. But the owners of the two companies could see that bringing together complimentary

businesses with strong global networks would create new opportunities. The companies were

competing for the same raw materials, both were involved in large-scale marketing of householdproducts and both used similar distribution channels. Margarine Unie grew through mergers with

other margarine companies in the 1920s. William Hesketh Lever founded lever Brothers in 1885.

Lever established soap factories around the world. In 1917, he began to diversify into foods,

acquiring fish, ice cream and canned foods businesses. In the Thirties, Uni Lever introduced

improved technology to the business. The business grew and new ventures were launched in

Latin America. The entrepreneurial spirit of the founders and their caring approach to their

employees and their communities remain at the heart of Uni Lever's business today.

Employing 265,000 people, Uni Lever has two parent companies Uni Lever NV and Uni LeverPLC which, despite being separate businesses, operate as a single unit with the same board of

directors. Uni Lever's corporate centers are London and Rotterdam.

Today UNILEVER is a multinational in the literal sense, which has inspired the corporate worldwith its innovation, professionalism and competitive spirit. Its operations are spread over fifty-

two countries and millions of people worldwide use its products every day to fulfill and satisfy

their needs. Uni Lever has a portfolio of brands that are popular across the globe as well as

regional products and local varieties of famous name goods. This diversity comes from two of

Uni Levers key strengths:

Strong roots in local markets and first-hand knowledge of the local culture.

World-class business expertise applied internationally to serve consumers

everywhere.

Focusing on performance and productivity, Uni Lever encourages its people to develop new ideas

and put fresh approaches into practice. Hand in hand with this is a strong sense of responsibility

to the communities it serves. Uni Lever doesnt only measure success in financial terms; how

they achieve results is important too. Uni Lever works hard to conduct business with integrity

respecting their employees, their consumers and the environment around them.

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MARKET ANALYSIS

Tea consumption in Pakistan is very high and Pakistan alone consumes around 4% of the worlds

tea production, which also makes it a very good market for tea brand such as Lipton yellow label.

Market situation:

Pakistans tea market has a total market size of Rupees 20 billion, or 120000 tons of tea, out ofwhich the share of open tea is 60% which accounts to 12 billion rupees or 72 thousand

tons of tea, the packaged tea sector holds only 40% of the market which is worth around

8 billion rupees or 48 thousand tons of tea.

Demand:

Pakistans total tea demand is around 150000 to120000 tons of tea annually, demand and supply

are equal, and no company can produce more than the demand as tea leaves go stale after a period

3-4 months.

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OPEN TEA

SELLERS

60%

BRANDEDTEA

40%

OPEN TEA

SELLERS

BRANDED TEA


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Industry Growth Rate:

The industry growth rate is 4%; we think that most of the people in Pakistan are regular users of

tea so the market will continue to grow at a steady rate.

Market competition:

The tea market in Pakistan is very well saturated because of the high consumption of open tea

which accounts for over 60% of tea sold but if we look at the branded tea market there

Brooke bond leads the market in branded tea, while Tapal being second and Lipton

being third in terms of sales with other small brand of Uni lever and Tapal also laying

claim to the market.

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34%

23%4%

29%

0%10%

BROOK BOND SUPREEM

LIPTON

A-1 KARAK CHAP

TAPAL

OTHERS

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Liptons Targeting Strategies

Lipton uses the concentrated marketing strategy, it basically segments the upper class due to its

high price and premium quality but it also caters the need of the middle upper middle and lower

class by offer different product line such as the Lipton sashes which are relatively cheap and

other small packs that Lipton has introduced to cater these market segments as well.

MARKET SEGMENTATION

Geographic:

World region South Asia

Country Pakistan

Target market Pakistan

Market size 80-100 million

Density Urban, suburban

Climate Southern

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Demographic:

Age 12 and above

Gender Male, female

Family size 1 to 4 or above

Lifecycle Young, single young, married, married with children

Income 5000 and above

Occupation Students, Teachers, Skilled laborers, unskilled

laborers, managers, clerks etc

Education Illiterate, Metric, Intermediate, Graduation.

Religion Muslims, Christians, Hindus

Race South Asian

Nationality Pakistani

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Hypsographic:

Social class All

Lifestyle Any

Personality Any

Behavioral:

Occasion Regular occasion

BenefitsQuality, economy, convenience, speed

User status Potential user, first time user, regular user.

Usage rate Light user, medium user, heavy user

Loyalty status Strong

Product Attitude Energy, Fun, Youth

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UNI LEVERS

LIPTON YELLOW LABEL

SIGN OF GOOD TASTE

Uni lever is the largest seller of packet tea in the world through their two biggest brands Lipton

and Brooke Bond tea.

Lipton is the flag product of Uni lever by which the company likes to be identified; it is one of

Uni levers largest brands and the world's most popular tea brand, enjoyed by consumerseverywhere. It is available in more than 100 countries and has a global turnover of euros 1.9

billion. The brand grew 5% in 2000. Top markets are the US, Italy, Japan, Egypt, France, Turkey,

S. Arabia, Pakistan, Belgium and Poland.

In Pakistan Lipton is a less popular as compared to brook bond, which is also a Uni lever brand

and the local Tapal brand but in a market where 60% consumers prefer lose tea as compared to

packaged it is still a major player.

Liptons annual sales are around 8 to 15 thousand tons of tea which might not be significant in

the over all tea market in Pakistan but if we look at only the branded tea market this represents a

major chuck is a of the packaged tea market.

PRODUCT:

Lipton yellow label tea has always been considered a premium brand with premium quality it is

one of the most high quality tea in Pakistan.

Lipton offers tea, which is of the highest quality imported from mostly African and Subcontinent

countries, which provide high quality tealeaves and are according to the taste of the Pakistani

consumers.

Lipton is aiming to supply customers with a product that shows that Lipton genuinely

understands their tastes and preferences.

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Suppliers:

Uni lever Pakistan limited mostly buys tea from African countries because of the great taste,

smell and quality of the tea leaves but during 1990 to1992 Uni lever Pakistan limited also started

buying tea from subcontinent tea producing countries like India, Srilanka, and Bangladesh to

fulfill shortages because importing tea from African countries namely Kenya, Zambia, Zimbabweand South Africa takes 8 to 9 months.

Product quality:

Lipton yellow label prides its self on having the best blend in the market; Lipton officials stated

that their blending techniques were unique and sophisticated so as to ensure high quality taste and

smell; checks are conducted at every level of blending to make sure that the product is of the

highest quality.

Lipton also uses professional tea tasters who taste the tea and give their recommendations about

it, all in an effort to come up with the best blend.

Product style and design:

Liptons style and design has always been one of its strongest features. Liptons logo style has

always been a part of its appeal to its consumers right from the very start the yellow and red color

the design of its different quantity packs and boxes, the white stripes on its teabags box are all

internationally recognized.

Packaging:

To ensure quality of the manufactured tea packaging is effectively done to restore the customers

confidence at the other end of consumption.

Shrink Wrapping

Aluminum sealing

These methods of packaging are used to ensure the quality, taste and smell of the tea. Packaging

material is mostly obtained from outside sources. These packaging materials include plastic jars,aluminum, cartons, shrink-wraps and boxes for teabags etc.

Labeling

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Lipton Super graphics is a background device that is used to add impact and to enliven and

enhance the branding of applications. Lipton is Yellow and Red brand. When used in balanced

way these colors are all needed to understand 'Lipton'. This yellow and red color is the trademark

of Lipton in the minds of its consumers and competitors alike and is an integral part of Liptons

success.

Product development and research:

Product development and research is an important factor in the long-term success of a product.

Uni lever Pakistan limited with its huge research and development infrastructure has always tried

to make sure that new innovations are introduced to the Lipton brand to make it better then it was

to ensure its success.

Product lines:

Lipton was first introduced in medium and large size tin boxes as open tea but now there is

Lipton danedar, Lipton family pack and Lipton tea bags available in

50g,

100g,

200g packs,

400g Plastic jars

100g and 500-gram boxes for tea bags,

7g Sachet

These different quantity packs are in line with the product line extension strategy that Lipton

yellow label is following.

Product life cycle:

Lipton yellow label has been doing very well for many years. Two years back Lipton yellow

labels sales had gone down as this product had reached its maturity stage so Uni lever Pakistan

took steps to was rejuvenate its flag product in Pakistan, modifications were made to its

packaging and labeling giving it a more pronounced 'Lipton' look. Aggressive marketing wasstarted to re claim the lost market. Lipton yellow label was in its maturity stage when it was

rejuvenated which extended its maturity stage in its life cycle.

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21

Introduction Growth Maturity Decline

Profit

ProductDevelopme

nt Stage

0Time


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Sales

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BCG matrix

Uni lever considers Lipton yellow label as a Star where as Liptons tea bags, which are

considered stars internationally in Pakistan Uni, lever defines them as question marks.

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Lipton yellow label tea Tea bags

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QUESTION MARK

STAR

DOGCASH COW

MARKETG

ROWTH

RATE

High

Low

LOWHIGH

MARKET SHARE RATE


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PRICING:

Uni levers Pakistan follows a product based pricing techniques for all its products which is the

pricing policy of Uni lever in all the countries it is operating in it never gets involved in price

wars with its competitors.

Pricing Approaches:

In conformity with company policy Lipton yellow label tea also follows a product based pricing

system in which they charge a particular profit over cost of the product.

Prices of different packs of Lipton yellow label tea inPakistan:

50 tea bag box Rs. 64

100 tea bag box Rs. 125

200gm pack Rs. 60

100gm pack Rs. 30

400gm pack Rs. 115

450gm jar Rs. 125

7gm Sachet Rs. 7

PLACEMENT:

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Lipton yellow label being a consumer good follows an intensive and selected distribution policy

in the placement of its products it tries to reach its consumers any where and every where.

Intensive distribution:

Lipton follows a n intensive distribution policy with its 50gm, 100gm, 200gm packs, 400gm

Plastic jars and its 7gm Sachet because these packs are used by the masses and have a higher

demand so by following this strategy it is made sure that Lipton is with in the reach of its

consumers.

Selected distribution:

Lipton yellow label follows an selective distribution policy with its 100gm and 500-gm tea bagsboxes because they are only used by a particular section of the society namely the upper and

upper middle class so these tea bags are only placed in big utility stores, big hotels and posh areas

where consumers of tea bags are concentrated.

Lipton yellow label distribution network:Lipton possess a very large distribution network it has 3 depots to store its product, 550

distributors to distribute the tea around Pakistan 3 factories to process the imported tea leaves and

produce the final product, Lipton also has 2500 recognized Lipton retailers in Karachi, Lahore,

and Rawalpindi to sell its tea.

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Lipton Tea Depots

Distributors

Super stores

Wholesaler

Big hotels

Retailer

Consumers


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Out of home department:

Lipton yellow label tries to place its product at all the major events in the country Liptons out of

home department team goes to great lengths to secure exclusive rights to supply their tea to all

major events e.g.

Recently during the 2002 ITCN exhibition at the expo center in Karachi Lipton secured exclusive

rights to provide tea to this international event this kind of distribution is all in line with the

intensive distribution policy that Lipton is following.

Lipton tea vending machines:

In an effort to provide instant Lipton tea to consumer Lipton carried out a small experimental

distribution campaign. Lipton placed tea vending machines in several key areas in Karachi thisconcept although a well established one in the west is relatively new to the Pakistani market sofar the results have been mixed.

PROMOTION:

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Uni lever spend heavily on the promotion and advertising of its products according to Uni leverPakistan officials the company spends around 10 to 15 % of its gross sales on advertising and

promotional schemes to support their products.

Promotion of Lipton yellow label tea:

Lipton has always been very innovative in its promotional activities; Lipton uses almost all the

medias of information to promote its self they spend heavily on print and electronic

advertisements, they undertake massive advertisement campaigns, Co branding there product

with another related product they even organize media events, sponsor shows, hire musicians,actors and other stars all in an effort to promote them selves and achieve an edge over the

competition.

Promotional advertisements:

From the very beginning Lipton has associated its self with youth, fun & energy so to portray its

self in that way it has always hired stars, which can relate Lipton to this concept e.g.

Nazia Hasan and Zohaib Hasan were hired to represent Lipton in an advertisement campaign and

Lipton sponsored their concerts all in an effort to position its self as a fun and energy product.

Lipton hired Ali Haider and Hadiqa Kiani for their marketing but the concept of drinking tea on a

rainy day did not work well for Lipton.

Lipton recently another advertisement campaign was undertaken with out hiring any major

cricket, music or film star to represent their product this was a major shift from the star relatedadvertisement policy that Lipton had in Pakistan but they succeeded in promoting there product

with the same concept of fun and energy while also relating to the lower and lower middle classes

in this advertisement campaign.

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15%

85%

TOTAL COMPANY

REVENUES

TOTAL PROMOTIONAL

BUDGET


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Co Branding:

Lipton has been very successful in using co branding to promote its self it used various schemes

of co branding its self with another related product e.g.

Offering free sugar with Lipton tea.

Offering free candy biscuits with Lipton tea.

Offering free milk with Lipton tea.

All co branding promotional schemes are for a period of 4 to 6 weeks only.

Internet advertisement:

Lipton also setup its own website planet lipton.com in order to use the Internet to promote itself

this website is also used to support different promotional schemes that Lipton undertake from

time to time

Promotional schemes, programs & events:

Lipton undertakes various promotional schemes and organizes events by its self or participates or

sponsors other events e.g.

Recently Lipton made the world largest tea bags, which got it in to the Gennies book of worldrecords.

They sponsored the Basant mela in Lahore and Karachi.

They sponsor shows like Lipton time.

Lipton also sponsors concerts of different musician.

Swat Analysis of Lipton Yellow Label

tea

Strengths:

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Strong brand name

Premium taste

Strong distribution structure

Foreign trained staff

Highly effective marketing team Quality control staff

International brand name

Weaknesses:

High price

Stiff competition Large advertising budget

Opportunities:

Huge market to exploit

Strong brand loyalty

Threats:

Political situation

High consumption of open tea

Tapals recent marketing campaign

High tariffs on tea imports

Smuggling

Challenges:

Lipton yellow label tea like any other international brand in Pakistan is facing a slow down in

sales because of the economic conditions, dealing with the low cost unbranded open tea and

increasing use of mushroom tea brands is also a major challenge even for a well established tea

brand like Lipton yellow label the aggressive marketing techniques employed by Tapal are also

proving to be a major source of concern the marginally low sales of Lipton yellow label tea in the

years 2000 and 2001 the proof of the importance of tackling with these challenges apart from this

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bringing down the price of Lipton is also proving much harder then initially estimated by the

Lipton team, the high rate of import tariffs continues to be a major barrier in the growth of Lipton

yellow label tea.

RECOMMENDATIONS

Lipton yellow label should reduce its prices in order to become a more affordable brand.

Lipton yellow label should increase the use of tea vending machines to all the major cities in

Pakistan.

Lipton should introduce its internationally recognized ice tea in Pakistan first on an experimental

basis and if this taste clicks with the consumers of Pakistan Lipton stand to be the only tea brand

providing the consumers with this product.

Lipton should market its tea bags in small quantity boxes as it has done with its lose tea.

Lipton s out of home department is one of its major strengths it should be expanded

-Lipton-Mktg 3

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