LIPTON Final Prjt
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Transcript of LIPTON Final Prjt
Title page
Acknowledgement
Table of content
INTRODUCTION
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap – his revolutionary new product that helped popularize cleanliness and hygiene in Victorian England. It was 'to make cleanliness commonplace; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products'.This was long before the phrase 'Corporate Mission' had been invented, but these ideas have stayed at the heart of our business. Even if their language - and the notion of only women doing housework – has become outdated.
In a history that now crosses three centuries, Unilever's success has been influenced by the major events of the day – economic boom, depression, world wars, changing consumer lifestyles and advances in technology. And throughout we've created products that help people get more out of life – cutting the time spent on household chores, improving nutrition, enabling people to enjoy food and take care of their homes, their clothes and themselves.
Today, Unilever still believes that success means acting with 'the highest standards of corporate behavior towards our employees, consumers and the societies and world in which we live'. Over the years we've launched or participated in an ever-growing range of initiatives to source sustainable supplies of raw materials, protect environments, support local communities and much more.
HISTORY
Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the 21st century, our Path to Growth strategy focused us on global high-potential brands and our Vitality mission is taking us into a new phase of development. More than ever, our brands are helping people 'feel good, look good and get more out of life' – a sentiment close to Lord Leverhulme's heart over a hundred years ago.
Timeline
19th century
Although Unilever wasn't formed until 1930, the companies that joined forces to create the business we know today were already well established before the start of the 20th century.
1900sUnilever's founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials.
1910sTough economic conditions and the First World War make trading difficult for everyone, so many businesses form trade associations to protect their shared interests.
1920sWith businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge - and so Unilever is created.
1930sUnilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. But while the business rationalizes operations, it also continues to diversify.
1940sUnilever's operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development.
1950sBusiness booms as new technology and the European Economic Community lead to rising standards of living in the West, while new markets open up in emerging economies around the globe.
1960sAs the world economy expands so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition programmed.
1970sHard economic conditions and high inflation make the 70s a tough time for everyone, but things are particularly difficult in the fast-moving consumer goods (FMCG) sector as the big retailers start to flex their muscles.
1980sUnilever is now one of the world's biggest companies, but takes the decision to focus its portfolio, and rationalize its businesses to focus on core products and brands.
1990sThe business expands into Central and Eastern Europe and further sharpens its focus on fewer product categories, leading to the sale or withdrawal of two-thirds of its brands.
The 21st century
The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century consumers with its Vitality mission.
Unilever’s Mission
“Unilever’s mission is to add vitality to life. We meet everyday needs for nutrition with brands that help people feel good, look good and get more out of life”
Core Values
Impeccable Integrity(We are honest, transparent and ethical in our dealings at all time)
Demonstration a Passion for Winning (We deliver what we promise)
Wowing our Consumers &Customers (We win the hearts and minds of our consumers and customers)
Bringing out the Best in All of Us(We are empowered leaders, who are inspired by new challenges And have a bias for action)
Living an Enterprise Culture(We believe in trust, truth and outstanding team work. We value a creative and fun environment)
Making a Better World(We care about and actively contribute to the community in which we live)
CORPORATE RESPONSIBILITY
To succeed also requires, we believe, the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact.
Eco-efficiency-reducing the impact of our operations Eco-innovation-reducing the impacts of our product Sustainability programmed in agriculture and water Our Code of Business Principles Supporting local Communities
Today Unilever is one of the world’s largest corporations, employing300, 000 people and spanning 75 countries.
BRAND INTRODUCTION
Sir Thomas Lipton's vision to provide the best quality tea has made Lipton the number one tea in the world today. Lipton offers an option to tea lovers to enjoy their favorite drink in an exciting and refreshing way.
Making a Big Splash
Lipton is one of the world's great refreshment brands, making a big splash in the global beverages market; it is the epitome of international quality. Lipton Yellow Label's assurance of quality has helped it become the world's largest selling tea brand. Specially plucked from the best tea gardens of Kenya and blended to perfection - it is truly the gold standard in tea. The 100% International Blend - made with one of the best technologies available in the world, has been brought to you to provide the finest tea drinking experience.
Be the Best you can be
Drinking Lipton is a way for the consumers to feel great in mind and body - to feel good about themselves and the world around them. Lipton allows its consumers to be the best that they can be…to stay engaged and connected.
Key Facts and Figures
Tea is the world's favorite beverage and for many years people have believed tea to possess unique health-giving properties. Today modern scientists are exploring the exciting potential of tea, which has a unique combination of natural antioxidants, known as flavanoids, catechism and aroma-components. Taken regularly, tea can help improve vascular function, combat fatigue, reduce cholesterol levels and increase feelings of vitality.
Painting the World Yellow
Lipton is the world's leading brand of tea by far. It's the global market leader in both leaf and ready-to-drink tea, giving a global share of all tea-based beverages that's nearly three times larger than its nearest rival. In total non-alcoholic beverages, Lipton is the global number two brand in terms of volume consumed.
Did You Know that Globally…?
cups of Lipton Tea are enjoyed every second 8245 cups of Lipton Tea are enjoyed every time you blink 1252 cups of Lipton Tea are drunk every time your heart beats 52 billion cups of Lipton Tea are drunk each year 45.75 billion Tea Bags are produced by Lipton Tea each year
Drink to Your Health
If that's not enough to convince you that tea is worth trying, take a look at some of these fast facts:
Drinking four cups of tea is re-hydrating, NOT dehydrating as is often said - unless the amount of tea consumed at one sitting contains more than 250mg of caffeine – that's the same as five cups of tea.
Tea as it's packed with fluoride hat it can provide up to 70% of the fluoride you need which helps to protect your teeth against decay.
It's also thought that the tannins in tea can inhibit the growth of the bacteria that cause plaque, plus reduce the amount of sugary, enamel-damaging saliva in your mouth.
Tea without milk and sugar has no calories. In hot weather, tea refreshes you by raising your body temperature and
momentarily causing perspiration, which cools the skin.
Lipton Brand Portfolio
Lipton Yellow Label Tea
Lipton Clear Green Tea
Lipton Ice Tea
Brand Image
100% natural Versatile Accessible Consistent quality
MARKETING STRATEGY
General Environment
General environment means and includes the general condition under all the factors influencing them. These factors may be social, cultural, economic technological etc.
Demand
The demand of Lipton black Tea is always high. In winter it increases more than the summers. The market share of Lipton is also high as compare to their competitors.
Competition
There is no direct competitor of Lipton Tea But the brands like Supreme, Vital, tapal trying to compete in the market.
Legal/ political
These uncertainties that is extremely variable in the political condition of Pakistan. Constant political instability does affect the company’s relation with the government. Social and cultural other factors
Marketing Analysis
Its target market includes all age groups accept children. They are operating in more than 110 countries therefore the target market is a global village that consists of people with different cultures, habits & food. But as history tells that tea has been traditional drink of all cultures therefore the tea itself creates its own place in the minds of target market. In Pakistan they focus more on urban areas (offices, hotels, restaurants, café, and banks) where people prefer light tea. It captures 85 % share in this area.
PRE MARKETING MIX
Target market
People looking for convenience, and who have different preferences in tea taste, moreover People located in Lahore which also include office workers, and people living a busy life having a great need to stay active and who have less time to make tea for themselves. To solve this problem Lipton is offering teabags which make it easier to make tea according to the preferred taste.
Targeting a segment means the company is making a selection and targeting a certain group of consumers or buyers for its product or services. Evaluation of different segments that companies make is most critical before targeting any segment, every company have its own criteria of selecting a segment such as size, potentiality of growth, profitability, economies of scale, or low risk in the segment. Lipton Yellow Label has target different market segments.
Lipton Yellow Label basically has targeted the urban areas and has concentrated on the upper and middle classes. Therefore despite the fact that it uses a mass marketing approach it can easily be denoted that this product is catered to a particular segment. Even in its marketing approach for Lipton Yellow Label, the product is presented in a different way for instance the teabags are targeted toward the upper high class, while soft packs and jar packs are targeted for middle and middle lower class. Today as both men and women consume equal amounts of tea the age group segment selected for Lipton is for all age group for they want to target those people who are young, trendy, and cosmopolitan.
Statistics about the target market (according to the last census)
LahoreArea 1,014 km²Population (1998 census) 5,143,495Average Lahore household size (1998) 7.12Lahore Population Trend
SEGMENTING CONSUMER MARKETS
Distinct needs -Regular tea/green teaCharacteristics-Tastes aroma strengthBehavior-In terms of 4ps segmentation of consumer market
Geographic Location
Include almost all Urban; suburban; small town; and rural areas of Pakistan.
World region Asia Country Pakistan Cities all major cities of Pakistan Density urban and rural Climate hot and dry
Demographics
Age All age & group Gender Male & Female Family size 1-2, 3-4, 5 & above Family life cycle Married & Unmarried Income 12000 & above Occupation White color and services workers Education School colleges and universities Religion All Race Asian Nationality Pakistani
Psychographic
Mainly targeting the elite class, upper middle class and middle class in urban and sub-urban areas – primarily cities and surrounding areas. Rural market penetration is limited and is primarily driven through indirect channels (e.g. Wholesale).
Social class middle class & upper class Lifestyle fulfilled, believers, experience, makers and strugglers
Behavioral
Regular occasion, special occasion, quality, service, economy, light user, medium user, heavy user.
Occasions any occasion Benefits quality, taste, flavors and brand status Loyalty status significantly high Readiness stage awake and interested Attitude toward brand positive and enthusiastic
POSITIONING OF LIPTON YELLOW LABEL
Positioning involves designing the product and image that will occupy a distinctive place in the mind of the consumer of the target market. As can be seen Lipton yellow label have the largest profit margins and market share. Thus the marketers at Lipton have decided to create its own unique image and then strengthen the position in the consumer’s mind.
Lipton yellow label positioned its product in the mind of the consumer as
Active Refreshing Color Aroma Taste Flavor Outstanding quality Health caring Adventurous Alert Young
LIPTON YELLOW LABEL was initially positioned as delicious, sophisticated andpremium tea for the global citizen. The advertisement also echoed this theme. Therepositioning specifically addressed the local customer by the old melody ´chaichahie......
CHANGING SLOGAN
LIPTON TEACANDO THAT….
This slogan and advertisement campaign attracts the youngsters. Lipton peopleplaced the bill boards on roads, bus stops with simple questions and their answerswere given few steps forward.
Launching of Lipton ice tea
Lipton also launched ice tea to take the competition head on so the youngsters also Enjoy their product
DIFFERENTIATION OF LIPTON YELLOW LABLE
The primary differentiation is its
LOGO
Lipton yellow label is painting the world yellow with a marketing campign that presents all lipton stands for brightness, vatility, and fun with a natural goodness and the red color symbolize the energy it gives.
SLOGAN
LIPTON TEA CAN DO THAT…
ALL GOODNESS OF TEA
The all goodness of tea makes Lipton yellow label makes its different from the other products the point of difference is as follows.
Quality
Handpicked close to the bud fir best quality tea and finest taste the quality of Lipton yellow label makes it different to the other products and it offer best quality tea to its consumers.
Vitality
Lipton tea helps you to revitalize your mind and body.
Natural
Lipton yellow label is natural sources of antioxidant and therein.
Brand image 100% natural Accessible Consistent quality Versatility
High Ethical Value
Lipton yellow label has high ethical value in the mind of the consumers because it is used since ages so people are well aware of the brand
Marketing Mix
A--- Price
They use price skimming strategy. The strategy made by the company for this product was to keep the price higher than the competitor and keep the target market fix on level. So according to the management that they have to recover the cost as well as some profit and we all are aware of that every business seeks some profit to continue on the production.
Package Price (Rs)
Tea Bags 200g 210
Tea Bags 100g 102
Lipton G/T 100 g 60
Yellow label 200gm 88
Yellow label Jar 450gm 210
Yellow label soft pack 500 210
Yellow label 1kg 388
The tea is actually packed in aluminum foil wrapper and is than put into card board package. The tea is packed in aluminum foil so as o make safe from seasonal effects and for long lasting. Lipton Yellow Label is also available in from of tea bags. Each box contain 100 tea-bags
Discount and Allowance
According to the company management there is no flexibility in prices they are already giving much discounts. Company is recovering the cost and the expenses of importing the flavor tea.
Price Discrimination
According to distribution channel there is no discrimination is price since it has been introduced in Pakistan .all the prices such as sale price retail sale price and purchase prices are the same as the product was launched.
Uniform Delivering Pricing
Lipton charging same prices in all cities of Pakistan
B--- Place
It is available in all convenience, independent, Departmental discount stores & supermarkets.
Distribution channels
They are using an indirect channel of distribution
Head quarter in Karachi It has 650 distribution offices all over Pakistan. 3 manufacturing Units in Karachi, Khaniwal & Raheem-Yar-Khan. 6 distribution channels in Lahore alone. 25 outlets in various places of Lahore.
Distribution centers in Lahore
They are also using Selective distribution strategy. They divided the Lahore market into six territories. In Lahore they have following six distribution centers.
Allied Marketing Chauhdary traders Sigma SBL Bilal brothers Shehbaz brothers
C--- Product
Consumer and Biz product
Lipton Yellow Label Tea is a fast moving consumer product.Convenience Good
It is an essential good for its target market, which includes households, executives and office employees. Who take tea for the mental freshness to concentrate on their work?
Product Attributes
It is antioxidant. Reduces heart diseases. Prevents Skin cancer Strengthen immune system. Protect teeth by inhibiting plaque bacteria. Increase calories burnt every day. Light taste.
Product Benefits
Good for health conscious people. Fulfills requirement of nicotine. Stable quality. Various packages and flavors. It comes in a protective packaging with consistent quality. It is a multinational brand with quality standards kept same for all countries. Its 100% natural tea leaves.
Product Line
Lipton Yellow Label Tea it also known as black tea it also available in form Tea-bags.
Lipton Clear Green Tea it also available in 4 different taste
Mint Jasmine Pure Lemon
Lipton Ice Tea available in different taste both in bottled and canned varieties.
Lemon Peach
D--- Promotion In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:
Communication objectives
Use broadcast media to provide coverage of 80% of the target market over a 6 month period.
Reach 60% target audience at least three times over the six month period. Concentrate heaviest advertising in winter and spring.
Agency Selection
Almost 135 Advertising agencies exist in market but Unilever selected Blitz DDB Advertising Company because of their outstanding work in Pakistan.
Marketing Communications Budget
According to the management of local offices this company is not have the fix budget and also the local head office is not concern with the fixing of budget. They always gave the fixed amount of budget. And the main head office determines it.
Broadcast mediaThe company strategy for promotion is to use all the channels to promote the product and to make the loyal customers or brand customers. Only by heavy promotion company can achieve the goal and that’s why company is using the 360-degrees of promotion it means all the channels of promotions including Print media, Electronic media and other Support media.
Advertising
Company is advertising the product in a manner that it will attract the customers and general public who can buy it or who afford it. Actually by company strategy records we came to know that company is targeting the youngsters and the executives. Company is basically competing the famous beverages companies and it is on 3rd number in international ranking for beverages.
Electronic MediaTVC
Radio
Print Media
Newspapers
Support Media
Bill Boards
Personal Selling & Sales Force
Company is not the personal seller it sells goods to distributors or you can say distributors sell the goods on behalf of company and getting the commission for their services. Company has got some distributors and they are giving the services. Company has different distributors in different areas. Company has given the different areas to different distributors
Sales Promotions
Companies use different promotion ways and ideas. It is the case with Unilever the company is using different ways and techniques for promotion and increases the sales.
Caps Tea bags Cups
Public Relations & Publicity
Company is giving much importance towards the solid public relations and healthy feedback. Company targets the customers not just temporarily actually concern for loyalty of consumers.
Sponsorship and Event Marketing
Lipton usually sponsor the events like Basant festival Jashan-e-Baharahn Concerts
International Communication Program
Example of creative tactics used in international promotional campaign
Following pictures shows the outdoor campaign for Lipton green tea, and we think that same campaigns for promotion must be used by Lipton in Lahore too, as it motivates anti pollution desire.
SWOT ANALYSIS
Strengths
Lipton is known for innovative products Strong consumer base and brand image. Highest consumer satisfaction ratings among major brands Outstanding distribution Best quality tea Is highly used at commercial level in the form of tea bags whereas its
competitors like supreme haven’t yet launched an alternative. Very attractive market slogans like ‘Lipton hi tu hay hmm lajawab’
Weaknesses
High prices Substitute of products It is expensive as compare to its other strong competitors in the market like
supreme, Tapal, Tetley. They commercials seem to capture upper class or rather you can say more
modernized class where as its competitors capture general market with slogans like ‘hamaray ghar ki chai ki yahi rewayat hay’
Threats
Unpredictable demand. Unfavorable trends and economic situation. Strong competition in urban and rural area. Internationally increase in high prices. Political conditions in the country may obstacle in exports. High inflation in the country may affect the brand.
Opportunities
Financial muscle is strong, can target more market segments. Research and development Expansion in other area of country
BCG Matrix
According to BCG Matrix the Lipton lies in star as it has high market share as well as high growth rate.
PRODUCT LIFE CYCLE
A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:
Competition Analysis
Primary competitive alternative
The primary competive alternative of Lipton Yellow Label is Tapal Danedar Tea.
Tapal Danedar
Tapal is a well known name in Pakistan. In 1947, it started business and now are a Tea leader and so celebrated its 55th anniversary in 2002. Their first shop was in Jodia Bazaar
The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family. Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal. The company continued to grow under the management of the founder's son, Faizullah A. Tapal. . Currently it is managed by the founder·s grandson, Aftab F. Tapal who has continued giving further strength to the foundations of quality laid by his family
Making a modest beginning over half a century back, today 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 headed by Aftab Tapal himself. He was the first to introduce soft packs in the country. He developed an entirely new brand and category- Tapal·s Family Mixture (the mixture of tea & dust). Mr. Aftab Tapal was the first to invent the highly successful brand Danedar Leaf Blend. In December 1997, Tapal Tea became the first Pakistani Tea Company to earn the ISO- 9001 certification: a symbol of the highest international quality standards. Again in December 2000, Tapal acquired the ISO-9001: 2000 certification, making it one of the first few companies in the world to achieve this milestone. In addition to the standard requirements, the ISO-9001: 2000 certification system includes requirements for environment improvement, concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction.
Tapal Danedar and Lipton Yellow Label are primary competitive of eachother .They are they competitive because they target the same consumersane are for same type of people there Target market is same. They also haveslightly difference in there prices
The Main Key Competitor of the Lipton is
Tapal Supreme
There are also some other players in the market like
Vital Tetley Alkozoy tea
But Great competitions always remain between them.
Bibliography
www.unilever.com
www.unileverpakistan.com.pk
www.wikipedia.org/wiki/Unilever_Pakistan
www.lipton.com
www.unilever.pk/ourbrands/foods/lipton.asp
en.wikipedia.org/wiki/Lipton
www.brandsynario.com