Re launch of “TAPAL ICE TEA”

SUBMITTED BY :

Irfan Nayyar (15674)

Market Management Page 1

ACKNOWLEDGEMENT

All Thanks to God Almighty, the benevolent and compassionate, who blesses us with the power & capabilities and remained, contended on all intricacies found during the successful completion of this report.

We are grateful to our family members whose heartfelt prayers and appreciation have always been an asset and a great source of inspiration of us. It could be complicated for us to accomplish our report without their shadow of love.

We are also obliged to our respected teacher Mr. Ather Qadeer who furnished us this prolific opportunity to avail a practical experience and provided his full support and guidance in the completion of this report.

Market Management Page 2

TABLE OF CONTENT

Market Management Page 3

INTODUCTION TO TAPAL

MISSION STATEMENT:

To satisfy our stakeholders and as a guiding principle to our business; be a benchmark for Quality, Creativity and Ethical values. Achieve leadership in all categories of our core business and diversify in areas which compliment the core business.

We want to excel ourselves not only in providing best quality of products but also act as good corporate citizen.

We manage to acquire this excellence by recruiting and developing exceptional quality individuals, providing them with good working conditions and attractive benefits, opportunities for growth and high degree of employment security.

Market Management Page 4

VISSION STATMENT:

To provide value and quality to our consumers; our aim is constantly to provide world class service for our customers, deliver value for our products and make TAPAL a great place to work for our employees.

We aim to have a reputation for innovative thinking in the areas that matter to our customers. To become a global brand, to be an innovative, marketing and research oriented company.

Market Management Page 5

COMPANY’S BACKGROUND:

TAPAL's remarkable success is the joint efforts of three lively generations of the Tapal Family. In 1947, TAPAL started out as a family concern under the personal management of its founder, Adam Ali Tapal.

Against tough competition Adam Ali's unique blend, later named Family Mixture, became a hot favorite and ultimately the largest selling brand in the unorganized tea market. From this favorable beginning, 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 tea soon became renowned and people from all parts of Karachi started lining up at the outlet to purchase tea. For their ease, Tea distribution was initiated to retail outlets around the city. The company continued to grow under the supervision of the founder's son, Faizullah A. Tapal.

Today the founder’s grandson, Aftab F. Tapal, manages TAPAL Tea. After studying abroad, Aftab Tapal returned to Pakistan to introduce professional management and unique production ideas to the business. A well trained tea taster and tea specialist himself, Aftab Tapal introduced new tea concepts and developed a broad range of tea blends cuisine specifically to the tastes of people throughout Pakistan. His progressive attitude resulted in giving further strength to the foundation of quality laid by his family.

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 active professionals headed by Aftab Tapal.

Market Management Page 6

INDUSTRY OVERVIEW:

Iced tea (sometimes know as ice tea) served in a glass with ice. It may or may not sweeten. It is available in different flavors including lemon, peach and lime.

Ice tea is a soft drink specially used in summers and this also can be served as a alternative to carbonated drink. this drink is enriched with vitamin c and vitamin d .

In Pakistan, tea is generally served as hot beverage and but tapal has introduced the ice tea under the name of tapal iced tea in different flavors. In Pakistan, only direct competitor of tapal ice tea is LIPTON ICE TEA. However Lipton ice tea is available only limited general stores in the Pakistan.

The total sales volume of tea market present in Pakistan is 150,000 tons (organized = 80,000 tons and unorganized= 70,000 tons). This shows a potential market in the Pakistan. Ice tea is a new product for Pakistani market but there is a potential market available in the Pakistan

Market Management Page 7

PRODUCT OVERVIEW:

The R&D at tapal decide to introduce tapal ice tea for youthful market

segment. Tapal Ice Tea offers instant refreshment combined with the

health preserving properties of tea. Rich in Vitamin C and antioxidants,

it is non-carbonated, contains no preservatives and is low in sugar as

well. It’s a healthy and trendy choice, for both the young and the young at

heart.

Product packaging:

Sachets:

25 gm powder sachets in three flavors:

Lemon

Lime

Peach

320 ml can in three flavors:

Lemon

Lime

Peach

Market Management Page 8

About Peach Flavor Ice Tea: 

For the delicious taste of summer in a glass any time of the year, mix up some Tapal Ice Tea Peach. It’s the perfect blend of thirst quenching, refreshing beverage and the sweet taste of peaches.

Made from real tea blends, Tapal Ice Tea Peach combines the goodness of Tea antioxidants with no preservatives, no artificial colors and only 16% sugar which is much less than most regular soft drinks.

About Lemon & Lime Flavored Ice Tea: 

Nothing beats a chilled, sweet, lemony glass of Tapal Ice Tea Lemon With just the right amount of ingredients; our mix is going to quench your thirst with a refreshing burst of Lemon and Lime. 

Made from real tea blends, Tapal Ice Tea Lemon combines the goodness of Tea antioxidants with no preservatives, no artificial colors and only 16% sugar which is much less than most regular soft drinks. 

Market Potential:

An estimated 103 million Pakistanis, or 63% of the population, fall under the age of 25 years. this statistics regarding youth shows that there is a potential market in the Pakistan. However, a strategic plan is needed to cater the market.

Market Management Page 9

REASON FOR FAILURE:

Through research it has been found that tapal ice tea is failed due to following reasons:

Unable To Create Awareness Regarding The Ice Tea:

Tapal is unable to create awareness in the market. In Pakistan, the concept of ice tea is new and a detailed awareness marketing awareness complain is needed to cater the youth of the country.

Distribution:

Tapal ice tea was not available in the shelf of the retailers because distribution is everything if the product can’t get the place on shelf, the company can’t outsell its competitors.

Limited target market:

Another reason of tapal ice tea failure is that they targeted the limited markets in the country

Improper Advertisement:

Advertisement Is not proper to create the awareness regarding the ice tea.

Market Management Page 10

SWOT ANALYSIS

Strength:

1. Good distribution network

2. Adequate financial resources.

3. Good Organizational Structure

4. Research & Development

5. Skilled & Trained Staff

Weaknesses:

1. Nature of the Product

2. Packaging is not user friendly.

Opportunities:

1. Enter in to new market segments.

2. Increase new ways of using ghee.

3. Can attract health conscious people.

Market Management Page 11

4. Direct the oil users towards consumption of ghee by eliminating misconception.

Threats:

1. Increase in competitors

2. Rise in Substitutes

3. Increase in weigh conscious people.

Market Management Page 12

COMPETITATIVE ADVANTAGE

Energizes you:

its moderate caffeine content stimulates energy consumption, giving your body a gentle physical boost that helps you keep going on your workouts, sports or any sort of physical activity energetically.

2.1 mg of caffeine per kg body weight that equals 147 mg for 70 kg person ingested prior to prolonged exercise delays fatigue. This amount is available in approximately 3 Tapal Ice Tea cans. 

Sharpens your wits:

A combination of caffeine and thiamine in tea gives you a relaxed but fully alert state of mind and at the same time helps you to focus. 

Hydrates you:

Drinking 8 glasses of water a day is a minimum requirement for a healthy, active lifestyle.

Maintaining a healthy body fluid balance can become a challenge during summers, especially when you move outdoors.

our need to intake fluids becomes even more recurrent. In such a hot weather, refreshing Tapal Ice Tea breaks are necessary time after time to replenish the fluid that you’ve lost all day to the hot weather in a delicious way and they’re a much better alternative than carbonated drinks. 

Market Management Page 13

Doesn’t hurt your fitness : 

Tapal Ice Tea contains very less calories, less than half the calories of a common cola drink. So regular consumption of your favorite Tapal Ice Tea doesn’t leave you with a guilt trip and it’s safe to enjoy it to the limits! 

An Anti-oxidant:

Body cells naturally produce free radicals (by-products) in the process of using oxygen. These free radicals are known to cause damages such as heart disease, diabetes, cancer etc. 

Antioxidants are substances that prevent and repair the oxidative damage to our body. Antioxidants may also enhance immune defense and therefore lower the risk of cancer and infection. 

A recent study revealed that 5 servings of fruits and vegetables reduce the risk of stroke by 25 percent. Ice Tea contains at least as many antioxidants as fruits and veggies such as strawberries and spinach! 

Lemony goodness: 

Lemon ice tea is not just another glass of soft drink; it offers the most valuable benefits of lemon such as vision and digestion improvement, relaxing of the nervous system, antibacterial properties and aid in fighting colds and flu symptoms.

Most importantly, lemon contains the most effective type of vitamin C that helps prevent cancer. Tapal Ice Tea brings all these benefits to you in a delicious drink. 

Market Management Page 14

MARKETING OBJECTIVES

The objectives of the marketing plan are strategically centered on 3 criteria;

To create a strong consumer awareness against unorganized tea products To establish a wide brand recognition through the capture of market share in the multi segment,

and To become the top market leader in that particular segment within the strong research and development.

MARKETING STRATEGIES:

Create awareness among the consumer through strong positioning.We will do mass advertisement in order to compete and increase market share.

Introduction of the product (Tapal Ice Tea ) in new pet bottle packaging Using tapal distribution network, get the maximum shelf for the product.

Market Management Page 15

TARGET MARKET SEGMENTATION

Demographics  

Age 16-30 years

Income 30,000 +

Psychographics  

Social Class Middle-middle, upper-middle ,upper class

Behavioral  

Occasion Regular use and special occasions

Benefits Taste, Healthier, economy

User status Heavy users, and medium users

Loyalty status Medium

Market Management Page 16

Price:

We are intended to follow value price method. Value pricing is offering the product at a fair and reasonable price that makes sense to the purchasing customer. 

Prices are as follows:

PRODUCT PRICE

25 gm powder sachets

Rs.15

320 ml can Rs.30

200 ml pet bottle Rs.20

Market Management Page 17

Place/Location:

Tapal here again uses 3PL logistics for movement of finished products from manufacturing plant to the 6 designated Warehouses. This movement is carried out in 14 to 15 feet containers. Tapal distributors then place their orders at the warehouses.

Products then delivered to the distributor who further delivered the product to wholesalers and retailers. The lead time of order fulfillment is at most 6 to 7 days. Tapal use FIFO method for its inventory management. Tapal has more than thousands of distributors in all over the Pakistan. Tapal also have Vendor management contracts with Macro, Metro, Imtiaz, Naheed’s in Karachi and other Hyper Markets in other cities of Pakistan.

Tapal also export its product in different countries. In Exporting when an order is placed at Tapal from importers, Tapal packed the order in pallets load it in 14 to 15 feet trucks delivered it to the port where Tapal forwarding agent shipped the order to the importer country.

Market Management Page 18

Promotion

Methods of Promotion:

Advertising.

Sales promotion.

Mobile marketing

Promotion Objectives:

To present information to consumers as well as others.

To increase demand.

To differentiate our store with others.

Market Management Page 19

(1) ADVERTISING:

Selected Advertisement Media

TV

News paper

Outdoor advertisement

Bill board

We are intended to advertise our product on the following media types:

Media vehicles:

News channel :

GEO TV at khabarnama time, 9:04. And it would be a continuous pattern; 1st 2 weeks, and then would pulsing; once a month. And in the followed by every 1st week of every month continuously.

Market Management Page 20

News papers:

The placement of our product would be on the third page of DAWN, once a month on weekends especially on Sunday for 4 months. Taking an add size of [20 x 3]

Bill Boards :

Following locations are selected for bill boards:

DHA: Schown chorangi surroundings, punjab chorangi towards ashiyana.

Reason: Preference of all multinational company, attractive place for billboards.

NORTH.NAZIMABAD: Board office towards hyderi.

Reason: Shopping malls, restaurants, signals traffic & click of eye vision.

Market Management Page 21

SHARAH E FAISAL is the best road to advertise through bill boards,

Outdoor advertising:

Distribution of posters, broachers’ posters in the different area areas. And on the basis on broachers’ consumption more printing would be done.

SALES PROMOTION:

For promoting sales, we will give different weights to the different products, when consumer buys the product he will get the points. On the basis of the collected points, He/she will be given free items in accordance with collected points.

MOBILE MARKETING:

We are intended to us our delivery vehicles as a means to mobile marketing.

Market Management Page 22

FINANCE PLAN

TOTAL PROMOTIONAL BUDGET:

Market Management Page 23

Bill board 10000000

TV promotion 25000000

Radio Promotion

On air Expense (Radio1 Fm 91 4 spots a day for 3 months)2500000

Magazine

(Full page A4” ) 1500000

News paper8000000

Other activities 3000000

Total 5,00,00,000

SALES ANALYSIS

Expected sales analysis in units:

Market Management Page 24

Month 1 2 3 4 5

Sales 20,000 24,000 30,000 39,000 39,000

% increase - 20% 25% 30% Nil

1 2 3 4 50

5000

10000

15000

20000

25000

30000

35000

40000

45000

SalesMonth

Market Management Page 25