sip tea

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Corporate Profile

To become one of the leading tea companies operating in Pakistan and Asia

(future goal); it is our philosophy to reward our customers with products at

outstanding value with uncompromising quality.

ur product offering includes black tea; mainly from !ndonesia" #ietnam" $hina

and other parts of Asian $ountries. ther business interest includes

soft commodity trading" e.g. coffee" spices" oil%seed and pepper.

ur core business activities include tea blending" packing of consumer packs"

design of tea flavorings and bulk tea supply.

ur close working relation and involvement in the process of tea growing has

provided us an advantage that is much sought after by our competition.

&reshness and 'uality is going to be our key to success and is a reputation that

we are proud of.

MARKETING PROBLEM

The marketing problem for Pearl Tea company is to %

How do cons!er percei"es ot#er $rands a"aila$le in t#e !ar%et&

The main points in the research are

The tea buying factor%consumer insight" taste" etc

Price sensitivity

ld brand" young brand

ho is buying" who is thinking

*witchers" retainers" loyal% what do we call our consumers

RE'EARCH PROBLEM

The research problem of Pearl Tea company is to %

(#at 'ip Tea can offer or pro"ide t#at ot#ers do not offer or pro"ide&

RE'EARCH )E'IGN*

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The research design we are pursuing will deal with $onclusive +esearch andsince consumer perception is a behavioral quality we will go for descriptiveresearch in the research design. The research will help us evaluate the alternatesolutions that the consumer perception results bear for us and ultimately help in

formulating a clear direction for the marketing plan of *ip Tea.

The tools that we will use will mainly be interviews (All tea drinkers) andquestionnaires to help us measure consumer perceptions and attitudes towardsthe different brands of tea available in the market.

'AMPLING METHO)*

Ele!ent Tea preference,perception of consumers.'a!plin+ ,nit All tea drinkers (single stage sampling)'a!plin+ -ra!e All tea drinkers since there are no distinct *ampling -nits.

'a!ple 'i.e* // individuals

'AMPLING PROCE),RE*

ur sampling procedure will be 00%P+1A1!2!T3 based on 4-567870T and$0#70!70$7 in order to choose our elements for research.

The $onvenience element deals with the accessibility of areas with respect to theavailable resources at hand. Therefore we will be covering selected areas like$lifton" 5efense" 6ulshan" 0a9imabad" and *.8.$.:.* when distributingquestionnaires.

The element of 4udgment comes because of the fact that we are only looking forpeople who drinks tea and every one else are not considered. 1ecause thepeople we want to survey are all tea drinkers and hence it would be a waste toapproach people who do not drink tea and drink other beverages.

)ATA COLLECTION METHO) AN) TOOL'

5ata collection tools that we will use in our research will be interviews (withpeople related to tea industries) and questionnaires. *o our primary research willbasically be a resultant of the information gathered from the above%mentioned

tools. ur primary research will aim at gaining first hand information about theconsumer attitudes towards various brands available in the market.

As part of our secondary research" we also intend to search the !nternet"marketing books" case studies and newspaper articles in order to find moreinformation about the tea industries and its current activities etc.

/,E'TIONNAIRE'


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e had designed questionnaires with the help of which we conducted surveysamong our selected sample space. The questionnaire mainly focuses on ourresearch issue and contains questions that guide us about consumer preference

and perception of Tea.

The questionnaire that we have designed to help us in our research is as follows

1. Do you drink Tea?

oYes

oNo

2. Which brand you are currently usin?

o Tapal

o Lipton

o Supreme

oOpen bag tea

oAny other brand

!. Do you use any other brand beside the brand chosen in "uestion# 2?

oYes Please specify the brand.

oNo

. $% yes in "uestion# !& then ho' %re(uently do you s'itch your tea?

oMonthly

ouarterly

o Semi annually

oAnnually

oOthers

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). What are the %actors that you look %or be%ore buyin?

o Strong taste

o Strong smell ! Aroma

o "reshness

o #olor

o Product name

o Price

oAny other thing

*. Who +akes ,urchase decision in your house?

o #hildren$s

o "emales

oMales

-. Who ,urchases tea in your house?

o #hildren$s

o "emales

oMales

. /o' +any cu,s does your %a+ily consu+e?

% cup & cup ' cup ( cup more#hildren )))))) )))))) )))))) )))))) ))))))

*lders )))))) )))))) )))))) )))))) ))))))

0. When do you hae tea?

o +rea,fast

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o Lunch

o *-ening

oAfter inner

1. Where do you lie in 3arachi?

o #lifton

oefence

o Shahra)e)"aisal

o/ulshan)e)01bal

oNa2imabad

oOther 3Please specify4 5555555555555555555555555555555555

11. What is your ender?

oMale

o "emale

12. What is your ae?

o6nder %7 years

o %7 8 &9 years

o &9 8 ': years

o ': 8 (: years

oAbo-e (: years

1!. What is your household inco+e?

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o 4elo' 5s 1&67

o5s 1&67 to 5s 2&67

o5s 2&67 to 5s !&67

oAboe 5s !&67

'IGNI-ICANCE AN) RE'TRAINT' O- THE 'T,)0Today the market of tea is highly competitive and it is growing with the demandand more new entries in this industry are taking place. Tea is used by allconsumers from and above age.

*ince the problem is already defined" the study will deal with $onclusiveresearch mostly. Also the sample group that the study will also be small in si9eand will deal with the consumers in

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92 T#is indstr: is +rowin+ at =@ per ann!2

>2 Healt# consciosness t#ro+# ot t#e world #as also increased t#e

sa+e of tea and decreased t#e sa+e of ot#er $e"era+es sc# assoda2

=2 (e can tar+et ot prodct towards t#e stron+ taste3 fres#ness andalit: at econo!ical price2

62 (e s#old tar+et or adds towards !ales and fe!ales $ot# as t#e:$ot# contri$te al!ost t#e sa!e to t#e decision !a%in+ of t#e$rands and t#en prc#asin+ of t#e $rands2

TELE 'HEETTA48LAT$9: 9; "8E

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-res#ness = 4126@

Color < 12@

-e!ales ; 4921@

!ales >< 9 -reenc: @

C#ildren?s @

-e!ales 9 @

!ales

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Na.i!a$ad > >@

Ot#ers 1 1@

1 1@

11. What is your ender?/11 -reenc: @

Male 6; =82 1

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GAP Anal:sis

Pearl 2imited saw the need for fresh quality and good taste as ma=or ingredients

missing in the tea market. -sually competitors claimed that their product was

fresh and had good taste and aroma. -pon conducting an analysis *ip Tea found

out that consumers felt that certain brands =ust claimed that they were quality

conscious but were actually not. *eeing the potential to e>plore and compete

with the ma=or brands in this market Pearl 2imited did a comprehensive analysisto actually identify the potentials of this need. ith the tea market growing at a

high rate Pearl 2imited decided to bring a different product in the market which

would be known as *ip Tea. *ip Tea and the management of *ip Tea saw that all

this could only be achieved if they played their cards right.

Mar%etin+ O$Fecti"e

ur marketing ob=ective underlines our urge for becoming a market leader in the

tea industry by providing the best quality

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Mar%etin+ 'trate+:

!t is our intention to attain at least ?@ of the

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'trate+ic 'itation

Pakistan annual tea import bill has swelled to -*BB/ 8illion (appro>.+s.B.CD

1illion)" a massive figure viewed in the back%drop of merge &oreign e>change

reserves of -* ?.B 1illion and matching e>ports of some primary commodities to

compensate for the trade losses. 8any may not readily believe that the annual

consumption figure of tea has already touched the high mark of //"/// tons and

market sales pro=ection are that an annual total could rise to ?//"/// tons" during

the ne>t decade based on the current rate of increase.

The recent initiative taken by our tea marketing company is to populari9e the local

cultivation of tea in the *indh province were" therefore widely welcomed. 0e>t few

years will show how the local production of the commodity" irrespective of its

quality and taste" will change the habits of the local consumers to save the foreign

e>change reserves.

1ulk of the tea is imported from half a do9en countries" notably penditure is over +s. billion in

importing tea. Pakistan has imported EG"DFE tons of tea worth +s.E"GG 8illion


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during the year EEC%EEG as compared to -*BBB.E 8illion in the year EEG%

EEE. The 6overnment has reduced the import duty on tea from F?@%B?@.

I!ports of Tea

5Rs2 In Million7

0ear I!ports Percenta+e '#are

EE/%EE "CBE B.BEE%EEB F"/D .EEEB%EE ?"GD B.EE%EEF ?"DE B.BEEF%EE? ?"CEF .GEE?%EED ?"C/C .F

EED%EEC ?"BG .FEEC%EEG E"GG B.BEEG%EEE "?/ B.F

l: Marc#

EEG%EEE G"CB? %EEE%B/// G"BEE %

Prc#ase Pattern )ecision Ma%ers

/@ $hildren are 5ecision makers to convince parents to purchase tea.

/@ &emale 5ecision makers; D/@ &emale purchase tea.

C?@ 8ale 5ecision makers; ?D@ 8ales purchase tea.

Mar%et +rowt# of Tea Cons!ption is arond =2@ &

Mar%et C#aracteristics

According to the survey conducted by Pearl 2imited" an average household

everyday consumes B cups of tea and each child cup. !t is used as a rela>ant by

CG@ and as a stimulant by CD@. ver all speaking G?@ of the people polled have

a habit of drinking tea" which includes adults both male and female. Almost

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everyone has it at breakfast" ?/@ take it in the evening" G@ have it between

breakfast and lunch and G@ have it after dinner.

&irst of all Tea is a staple item" at least in the conte>t of Pakistan. !t is a

part of everyoneHs intake.

*econdly it is a low involvement product.

!t is a convenience product. !t is ine>pensive" easily available and is

frequently used.

Mar%et 'e+!ent

ur prime market ranges from the middle to the upper middle income group

residing in

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now facing threats from the large scale smuggling through afghan transit

containers. !t is available in the open market commonly called Jduty freeK" and

hence it becomes impossible to compete with these smuggled quantities.

Co!petiti"e Anal:sis

There e>ists an overlap of target market for various brands and quality of tea.

!ndividual brand shares have fluctuated in the past largely as a result of the

introduction of successful new brands and the re%launch of established brands" we

are against a very large and e>perienced giant 2ipton 3ellow label and Tapal as a

very entrenched member of a big league. ther established members our

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Presently" we are =ust targeting middle and upper middle in

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pattern and the presence of competitors" our company" Pearl 2imited selected a

target market" which has following characteristics and features.

)e!o+rap#ics

A+e* years and above

Inco!e* +s./"/// and above

Gender* 8ale and &emale

People who look for ecstasy and seek rela>ation from mental and physical

stress.

People who are trend following" energetic and outgoing also comes in our

target.

As the population distribution and usage pattern shows that this product is

mainly consumed in the upper class" upper middle and middle%middle class.

*o *ip Tea will also penetrate in this particular segment with a different

marketing program.

According to a survey

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*ociety" 6ulistan%e%4auhar and 6ulshan%e%!qbal

Epected Growt# for 'ip Tea

The short%term plan of the company is to create awareness among the people who

perceive tea being harmful for their health. !n the long run company wants to go

into penetration process. !n the first year of its launch the company wants to

achieve ?@ of the total market by massive promotional and advertising activities.

$onsequently" we are also targeting to achieve C@ % G@ in the ne>t year and at

least B?@ in the fifth year of its launch.

)escription of EndD,ser

$onsumers have traditionally associated tea with refreshment" revival andrela>ation of body and mind. These are the three famous +Hs which are firmly

linked with tea" not only as a product but also as a philosophy of living.

Tea drinking continues to constitute an important position in consumerHs daily

consumed beverages. !t appears to satisfy physiological" social and psychological

levels of consumers. $onsumers seek psychological benefits with payoff in terms

of refreshed feeling. !t kills boredom and monotony and contributes towards feeling

of calmness and rela>ation.

$onsumers =ustify the consumption of tea to release fatigue and lethargy to

recharge them. !t is of interest to note the role of varying with different parts of the

day and situations.

Mornin+ teaserves as a wake%up signal to start of the day.

MidDda: teaserves differently for males and housewives. A man may take

his cup of tea to beat the heat" kill the monotony or as a means of social

interaction of his workplace. n the other hand this mid%day tea for a

housewife is a payoff , reward for attending her necessary part of morning

chores. *he slowly sips her tea to en=oy in these private moments when she

is not rushed. *he would look forward for the company of her neighbor ,

friend to enhance her pleasurable moment.


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E"enin+ tea is related with relieving day long tension and fatigue. !t brings

about a light and =ovial mood.

Tea serves as a sign of hospitality as it is the most desired yet affordable

beverage. A good cup of tea is described as that which has the aroma and

good color. ne of the main concepts behind *ip TeaHs brand is that of taste

and aroma" both known to be strongly inter%related. There is no concept of taste

without the aroma. 8ost consumers cook their tea and leave it to simmer. !t is

believed that the tea liquor is left on stove to simmer; it gives out the full color

and strength enhancing the aroma. $onsumers do not appear to be interested

in describing the tea in its dry form. They tend to focus on the end cup and end

benefits.

Positioning Strategy


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Positioning Statement

"or the pri-ileged tea drin,ers; Sip Tea is right leaf 3danedar4 tea that has superior taste

because it uses the best tea lea-es.


Good Quality

Low Price

Bad Quality

High Price

Lipto

Tapal

Supreme

Sip Tea

Tapal Family

Mixture

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O$Fecti"es for Mar%et Tar+et


Aroma

"la-or

Tasteless

Smell

Lipto

Tapal

Tapal Family

Mixture

Supreme

Sip Tea

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'ales O$Fecti"es

To make our distribution process quick" smooth" fast and efficient. 8eaning

that our product is available at all times in the market.

5efining and outlining our distributors and retailers along with our *ales co%

ordination department to achieve our proper salesmanship with our

customers.

1y offering special schemes" incentives and trade deals to our retailers we

hope to achieve the ob=ectives set by the marketing department.

$apturing shelf space as much as possible by proper dealer and distributor

co%ordination.

'#ortDTer! O$Fecti"es

1uilding brand awareness in the minds of the consumers.

1y proper" effective and heavy media advertising this will eventually help us

to overcome our competitorsH promotional efforts.

To achieve ?@ market share.

Lon+ Ter! O$Fecti"es

To build line acceptance.

To target other regions like 'uetta" 2ahore" !slamabad" etc. in the long run.

To acquire at least B?@ of the market share by the year B//G.


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Trying to squee9e competitorHs market share.

To develop and up%grade our +esearch M 5evelopment department" so that

we can come up with better quality and more improvised products.

To achieve low%cost distribution by selling their products through

independent distributors and retail stores.

To achieve low%cost production through investment in automated

manufacturing activities.

5i7 Prodct )escription

The name of the product 'ip Tea&which means to have tea in less

quantity with each sip. 1y this name we plan to convey a message to our

customers i.e. they should J*ipK it at least

once to see the difference by

comparing our brand with other tea brands

in the market. As said before that one of our

competitive edge is to hit the market with the quality" so we will try to do

as we have committed to our clientele.

(#at )oes 'ip Tea ContainJ

*ip tea comprises of three main components caffeine" polyphenols and

essential oils (also called aromatic or volatile oils). Additional elements

are introduced during *ip tea processing

Caffeine* hen caffeine

was first e>tracted from

tea" it was thought to be a different substance and

was called theine. !t is now known that they are one

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and the same. !t is the caffeine in tea which gives it its reputation as a

banisher of fatigue and a lifter of spirits. $affeine stimulates the central

nervous system" promotes blood circulation and stimulates the kidneys to

produce more urine. All types of tea (green" oolong and black) contain about

F/ mg of caffeine per serving" depending upon blend and strength of brew"

which is a third to a half as much as coffee.

Pol:p#enols* nce incorrectly referred to as tannins" polyphenols are

responsible for the color" briskness and flavor of the teas. They account for

about one%third of the soluble materials in leaves" but differ in type between

teas. 6roups of related polyphenolic compounds are called $atechins.

6reen teas are high in the simple $atechins which are only lightly colored.

!n black teas" through fermentation" the catechins have formed into larger"

more comple> structures called tea flavins. Polyphenols has been the

sub=ect of recent medical research" which suggests that they may have

positive health benefits in the prevention of heart disease and cancer.

Essential Oils* 7ssential oils contribute significantly to the fragrance of tea

and somewhat to its taste. They accumulate in the leaf as it grows" and

evaporates during and after manufacture. 7>posed to strong heat" they will

disappear completely" which is why they are also referred to as volatile oils.

'ip Tea?s ,nie 'ellin+ Proposition

The foil%in%bag consists of a foil wrap inserted into a pouch. Although it is chosen

by many of our competitors as it offers some advantages over the others. !n that a

wider range of packaging materials can be sourced locally rather than imported


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and the inner pack is hermetically sealed; this has been kept in mind with the view

to maintain the productHs freshness and taste at all times. The cost is reasonable

the pack is crushed proof and secondary packaging can be straight forward.

Mar%etin+ Pro+ra! Positionin+ 'trate+:

5i7 Perception of Csto!er A$ot Or Prodct

Pearl 2imited plans to create a perfect brand image for our product in the

minds of the consumer. Pearl will be taking the idea of 6ladstone" the

#ictorian Prime 8inister (GD?) and what his views were about tea

J!f you are cold; tea will warm you

!f you are too heated; it will cool you

!f you are depressed; it will cheer you

!f you are e>cited it will calm you.K

)e!o+rap#ics

The demographic environment mainly provides a brand structure for ourcompany to place our product. !n other words" it greatly facilitates in the

market positively for product and determining its possible competitors.

Almost all social classes consume tea; age and se> factors do not have a

significant impact on tea. And it could be somewhat broadly and easily

categori9ed. !ndividuals belonging to all se>es" ages varying from B to C/

years by and large consume tea.

Ps:c#o+rap#ics

There are people who belong to middle and upper N middle%class. 8odern

time%conscience" busy people who want to work hard and believe in

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achieving their goals. ur *ip Tea will be source of satisfaction" energy and

refreshment on their busy lines.

5ii7 Brands Positionin+

!n terms of 1rand positioning we have translated this by entering in to

the fray through niche market. The type of market chosen by us has

entry points are areas of

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*ip TeaHs Astringency &actor

A live" pungent sensation on the tongue and gums.

Astringency is not to be confused with bitterness" which

is undesirable.

Astringency gives tea its refreshing quality. 0ot many people are familiar

with the term 'elfD)rin%in+&. This term will be applied to *ip Tea that has

good quality and flavor balance" and does not need blending.

'ip Tea?s Positionin+ Concept

*ip Tea plans to position its tea brand in the following categories

12 'ip Tea?s Attri$tes

The attributes of any product are its tangible characteristics. As far as *ip

Tea is concerned it energi9es" revitali9es" rela>es and refreshes a personHs

mind. 1e it as a morning cup or late in the evening as a rela>ant; *ip Tea

hopes to care for its customers.

42 'ip Tea?s Price /alit: Co!ple!ent

*ip Tea will be approaching the tea market as a cost%friendly and a quality%

conscious product. *ip Tea will be offering the product at economical price

and not compromising on quality standards.

;2 ,se or Application*ip Tea plans to increase its product usage by adding further enhancing

factors to it. *ip Tea is a combination of health and fun%drink; not only this" it

also has other application factors.

'ip Teacan be used by women to soften and lighten the eye bags under

their eyes.

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'ip Tea?s used tea (after the e>tracts have been taken out) can also help in

cleaning of household utensils that have stains on them

'ip Teacarries a lot of health benefits. The theaflavins in black tea show

antio>idant properties in model laboratory studies. !n a recent laboratory test

conducted by Pearl 2imited" the frequency of pancreatic cancer declined in

relation to an increasing lifetime consumption of black tea.

'ip Tea?sbenefits for men aged D? to GF is that increasing intake of foods

containing flavonoids % D@ from black tea" @ from onions" and /@ from

apples % was strongly linked to a lower rate of death from stroke and other

coronary disease.

'ip Tea will be a natural source of fluoride and will have positive effect on

preventing tooth decay and gum disease; so for a consumer who are

conscious of drinking tea due to this factor will revert to consumption of *ip

Tea as being a J-ser%friendly TeaK.

82 Prodct ,serThe end%user is *ip TeaHs consumer. Any individual who buys *ip Tea is our

valued consumer. *ip Tea hopes to inculcate positive habit pattern in their

consumers. This could be that *ip Tea changes the brand perception about

the product. The image that *ip Tea hopes to kindle in a customerHs mind is

of youthfulness" energy" happiness" refresher" etc. Thus" in the end

changing the user habits of a particular consumer from the e>isting image

that another tea brand has established in his or her mind to the one that

pro=ects

'ip Tea D t#e $est tea :o?"e e"er #ad&

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brands" milk" coffee" cola drinks" etc. ur competition is with quite a few

e>isting and established tea brands in the market. These are 2ipton and

other 2ipton products by 2ever 1rothers Pakistan 2imited"

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open the pack. *ip Tea will create a desirable image by the color of its pack. 8ost

consumers associate a specific color with certain feelings" such as +ed is

associated with fire; our pack will be mainly using colors green and yellow. The

color green depicts the color of freshness and relating that tea leaves are green in

color; the yellow color conveys a different message to our consumers % a message

that yellow is about youthfulness" energy and happiness.

Apart from offering valued services to our customers at point%of%sale areas" we will

also allow and welcome those customers who find any fault in our product. 1y this

we will be available to our consumers at all times i.e. there will be a call centre

which will handle all customer queries about our product. e want to be in direct

contact with our customers and not =ust through our wholesalers" retailers" shop%

owners" etc.

*ip Tea will not be =ust another tea brand or =ust another shelf item; it hopes to

become a household name. The people at *ip Tea are there to create awareness

about the product" thereby searching for consumer interest" their evaluation" trial of

*ip Tea" finally leading to adoption of the product and most importantly after being

satisfied and completely contented with *ip Tea he , she comes again to the store

to purchase it.

!nitially the product will be available in three most popular si9es. There will be

F//gms pack" B//gms pack and a /gms sachet pack. This

aspect has been kept in mind so as to achieve J5ivisibilityK in

relation to our brand. The J5ivisibilityK factor is very important if we

want the purchase for our customers to be convenient" and that for every occasion

there is a si9e. 8anufacturing tea bags is also in the pipeline; this will happen inthe near future.

Prodct Life C:cle

To be able to market its product properly" a firm must be aware of the product life

cycle of its product. The standard product life cycle tends to have five phases


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5evelopment" !ntroduction" 6rowth" 8aturity and 5ecline. *ip Tea is currently in

the introduction stage" which is evidenced primarily by the fact that they donHt have

a loyal group of stable customers and thus we need to work on establishing a

brand name for ourselves and cut in competitorsH market share.

&urthermore" cost management" product differentiation and marketing have

become more important as growth slows and market share becomes the key

determinant of profitability.

5B7 )istri$tion 'trate+:

*ip TeaHs effective and efficient distribution channel provides its members with an

important strategic edge over competing channels. *ip TeaHs distribution strategy

will basically relate to the fact that how to reach to our target market. &or this

reason" *ip Tea" can outsource the ma=or activity as we feel that it will be hard to

distribute to BF"/// retail outlets on our own" therefore we believe to develop good

ties in order to push the product in the market. To be prompt and accurate in

supplying of the product to the retailer shops consistently" we have been preparing

the whole wide squad for the distribution in which we emphasi9e our distributors to

wear our product design on delivery vans which e>hibit the product attributes andholds the tea name" color" design and slogan. ith that we have also provided

special caps to our distributors who are e>clusively distributors of *ip Tea.; so as to

pro=ect the image of the company and at the same time using it as a promotional

tool. e do not want to be out%of/stock ever. According to a recent research

conducted by &ood 8arketing !nstitute" an estimated @ of annual sales are lost

due to out%of%stocks and that retailers lose about /.?@ of their customers due to

this problem.

'electin+ t#e )istri$tor

This sub=ect is as sensitive as pricing. rong channeling can lead to total chaos.

hile selecting the distribution area we at *ip Tea felt we needed to have a certain

checklist to evaluate and select our distributor

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The distributor should be financially sound.

The distributor should have the necessary knowledge of distributing *ip Tea to

the target market.

The distributor should have the J+ightK !nfrastructure that is" :uman +esources

to transport and take *ip Tea to the market" having proper storage and

warehousing facilities with transportation aspect to be kept in mind.

The last and the most important factor that we had kept in mind while

evaluating our distributor was that he should not have been handling any

competing brand that is" 2ipton" Tapal" 1rooke 1ond" !spahani" etc. because

then this would result in clash of interest from the consumers side between two

or more brands.

)istri$tion C#annels

coffee M tea chains

supermarket,hypermarket,utility stores

ba9aars

petrol stations M convenience utletspharmacies

other outlets

food wholesalers

other wholesales

retailers

cash M carry

5c7 Pricin+ 'trate+:

e have come up with three si9es initially which are F//gms pack" B//gmspack and /gms sachet pack each. After getting an encouraging responsefrom the target market we will go into further divisibility. 8eanwhile" webelieve we can penetrate into the market by introducing prices lower thanother local and foreign brands in the market


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F// grams at +s././/B// grams at +s.?B./// grams at +s..//

This pricing level along with an effective promotion campaign will help us toachieve our goal of capturing ? @ of the market share.

Price Brea%p D 8+!s Pac%

ParticlarsPer ,nit Cost

5P,C7

$ost of 6oods *old F.?Add 7>cise 5uty ?.E *ales Ta> D.BE -actor: Price p. .G? 5istribution 7>p. ? Promotion 7>p. C.G?Profit 8argin F.?*elling Price to +etailer /.CG+etail 8argin D.B'ellin+ Price 112

Adnan Zoaib Lotia PAGE # !!

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Price Brea%p D 4+!s Pac%

Particlars Per ,nit Cost

5P,C7

$ost of 6oods *old E.DFAdd 7>cise 5uty B.F? *ales Ta> B.E?E -actor: Price 4p. D.?? 5istribution 7>p. C./C Promotion 7>p. G.F?Profit 8argin .ED*elling Price to +etailer FE./C

+etail 8argin B.EF'ellin+ Price

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Co!petitor

Brands

Pricesfor

1+!s

Pricesfor

tra value or

incentive to the sales force" distributors" or the ultimate consumer and canstimulate immediate sales. *ip Tea will be coordinating their integrated promotional

activities with the marketing mi>; this decision has been taken so as to avoid

wastage of time" money and energy at all functions of the business. *ip Tea will be

taking into consideration consumer oriented sales promotion" point%of%purchase

displays" gifts and memorabilia" collectible items" etc.

PointDofDprc#ase )ispla:s**ip Tea will provide its product cutouts to the

retailer shops to place it at their counters.

Cons!erDoriented 'ales Pro!otion* *ip Tea will give free plastic

teapots on its F//gms pack and tea%co9yHs with B//gms pack.

Gifts and Me!ora$ilia**ip Tea will be giving wall clocks" calendars and a

*ip Tea diary to ma=or outlets in

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Collecti$le Ite!s**ip Tea will be rewarding its valued consumers with

collectible items such as key%chains" mugs" teaspoons" etc. all carrying *ip

Tea logo for better rapport with consumers" maintenance of brand loyalty

and brand recognition.

-orecasts and Bd+ets

e have made the following sales forecast for the year B//B based upon which for

our own internal records and references we will be making pro=ections for the ne>t

seven years. Q

Adnan Zoaib Lotia PAGE # !*

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'ales -orecast

Total 8arket "///"/// kgs

Targeted 8arket *hares (?@) D?/"/// kgs or D?/"///"/// gms,year

Total *ales (F//gms) D?/"///"/// R /.B? S DB"?//"///Total *ales (B//gms) D?/"///"/// R /./ S E?"///"///Total *ales (/gms) D?/"///"/// R /.F? S BEB"?//"///

*i9e of Package (F//gms) DB"?//"/// , F// S F/D"B?/ units*i9e of Package (B//gms) E?"///"/// , B// S EC?"/// units*i9e of Package (/gms) BEB"?//"/// , / S BE"B?/"/// units

Trade Price F//gms (in +s) F/D"B?/ R /.CC S FB"?D"?DBTrade Price B//gms (in +s) EC?"/// R FE./C S FC"GF"B?/Trade Price /gms (in +s) BE"B?/"/// R B.GB S GB"FG?"///

Total 'ales FB"?D"?DB FC"GF"B?/ GB"FG?"///S 1>438=83=14

Inco!e 'tate!ent

Particulars B//B*ales CB"FGF"GB

2ess $6* DG"EE"EB?6ross Profit /"FE/"GGC2ess 6en Admin 7>pense

5istribution 7>pensePromotional 7>pense

BB"EEC"E?BBF"GC"GBE"DDC"GG

Net Profit 43>;8

Adnan Zoaib Lotia PAGE # !-

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Met#ods for )eter!inin+ t#e Pro!otional Bd+et

There are si> important methods of determining the promotion budget

Affordability

Percentage%of%sales

$ompetitive parity

b=ective and task"

Profit ma>imi9ation"

+atio of elasticities.

The level of promotion at which profits reach a ma>imum is called the optimal level

of promotion. The optimum is the point at which the input to the system gets the

highest returns or output.

The method" which *ip Tea has selected to determine the promotional budget" is

Affordability. !n the affordability method of budget setting" a firm spends as much

on promotion as it can afford. !t first determines how much money is available after

other e>penses are paid. !t then determines to spend some fraction or that entire

amount on promotion.

ur mother company" Pearl 2imited" is ready to take care of all the promotional

e>penses. e have taken the challenge of communicating" hand in hand with our

people the idea behind launching of *ip Tea" which is a high quality" low%priced"

health maintaining" rela>ing" and energi9ing tea. e have been working in the tea

industry" but as a Tea 1rand" it is our first product" therefore the promotional budget

needed to launch this product will be given by our mother company i.e. of

+s.D"///"///,% for the first three months during our product launch stage.


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'c#edlin+ Ad"ertisin+

*cheduling refers to the timing of the promotion e>penditures or the sequencing of

promotions within a time%period. &ew of them are; massing" flighting" pulsing" and

even%scheduling. e have selected flighting because it involves irregular

scheduling ads in bursts for short periods of time within the year" separated by long

periods of time with no advertising. &lighting may also be called as bursting.

*ip Tea thinks that it is the best way for the company to schedule its advertising

because through affordability method it is able to advertise the brand with irregular

volumes and irregular time intervals. The second idea behind this is that we will be

promoting heavily in the first three months because of the introductory phase of the

product. &lighting helps us to maintain different amount of advertising in different

months within a time span of a year. ith the passage of the product life cycle"

looking at the position of our product in the market" we can change the way we

have to schedule our advertising budget.

Media Plannin+

Media O$Fecti"e

*ip Tea will reach to its target market making them aware about the product and its

brand message.

Media 'trate+:

8edia strategy describes the course of action you plan to follow to achieve the

media ob=ectives. ur strategy would be using the four categories of media mi>"

which will help us to reach our target audience through all doors of the promotional

mi>" and easily as well. 5oing this efficiently at a minimum cost will help the

company to achieve its ob=ectives.


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Media 'election

To reach the target market in a short period of time we need the vehicle that will

drive us to achieve our ob=ectives. The best suitable way of accomplishing this isthrough the use of the following media

Electronic Media

1roadcast media consists of both television and radio. 7lectronic media provides

the resources to present your communication in a creative way" thus enhancing the

benefits and usage. The colors and the communication if incorporated properly"

remain in the minds of the viewers. e have used it for the purpose of broad reach

as well.

The idea that JSip Tea, K can be best delivered to the people by the

use of an effective commercial. The channels selected by us are PT# 0etwork and

PT# orld both. PT# orld will show the commercial in between different drama

serials and programs. The commercial will run in the prime time and after 0ews

:eadlines in

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Point of Prc#ase and Mo$ile Media

Point of purchase always encourages impulse buying" because through this aspect

people have the capability to recall a brand and encourage brand loyalty. +ight atthe early stage we are using buntings and cut%outs. 8obile media is the best way

to provide repeated e>posure as it has got little time to get the target audienceHs

attention but if done properly can e>pose *ip Tea" hence creating recognition and

awareness for it. 1illboards are used at places where our target market resides or

passes by. This will provide us with the opportunity of mass viewer%ship.

Percenta+eDwise Brea%p of 'ip Tea?s Epected iewer s#ip sin+t#e for "e#icles of Media 'election


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5A7 P$lications

(ee% )awnD'nda: n+DA%#$ar n+ 'nda:

Ma+a.ineT#e News

(ee%l:Ma+a.ine

(o!en?sOwn

eek :alf%Page(Bnd Page) &,Pg upto B?cms Title Page $olor &,Pg uptoB? cms 1,Pg $olor $enter*pread

eek B'tr. Page

(Pg )&,Pg upto B?

cms

!nside&ront,1ack

$olor

&,Pg uptoB? cms

!nside&ront,1ack

$olor%

eek 'tr. Page

(Pg D)&,Pg upto B?

cms

!nside&ront,1ack

$olor

&,Pg uptoB? cms

1,Pg $olor %

eek F'tr. Page

(Pg C)&,Pg upto B?

cms

!nside&ront,1ack

$olor

&,Pg uptoB? cms

!nside&ront,1ack

$olor%

eek ?D/ $olumn cms

(Pg )&,Pg upto B?

cms1,Pg $olor % 1,Pg $olor

$enter*pread

eek D D/ $olumn cms(Pg D)

&,Pg upto B?cms

1,Pg $olor &,Pg uptoB? cms

!nside&ront,1ack$olor

%

eek CD/ $olumn cms

(Pg )&,Pg upto B?

cms1,Pg $olor % 1,Pg $olor %

eek GD/ $olumn cms

(Pg D)&,Pg upto B?

cms1,Pg $olor

&,Pg uptoB? cms

!nside&ront,1ack

$olor%

eek ED/ $olumn cms

(Pg )&,Pg upto B?

cms1,Pg $olor % 1,Pg $olor

$enter*pread

eek/

D/ $olumn cms(Pg D)

&,Pg upto B?cms

1,Pg $olor&,Pg uptoB? cms

!nside&ront,1ack

$olor%

eek D/ $olumn cms(Pg ) &,Pg upto B?cms 1,Pg $olor % 1,Pg $olor %

eekB

D/ $olumn cms(Pg D)

&,Pg upto B?cms

1,Pg $olor&,Pg uptoB? cms

!nside&ront,1ack

$olor%

TotalCost

Rs2;388931 Rs243=;=3 Rs243641394< Rs213

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PointDofDPrc#ase

1untings (B?"/// U +s. F,%) +s.//"///,%$utouts (B/"/// U +s. D,%) +s.B/"///,%Total Cost Rs2443D

Total 8obile and P..P. 8edia $osts SRs2;3443D


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5C7 Broadcast Networ%

PT Networ%

(ee% PT 'pots

Insertion

s )ration Costinsertion Total Cost

(ee%1

After 0ews:eadlines in

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Time *pot before

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PT (orld

(ee%Per (ee%Insertions

)ration 'pot Rate Total Cost

(ee% 1 FB / *econds +s.?"GC?,% +s.DDD"C?/(ee% 4 FB / *econds +s.?"GC?,% +s.DDD"C?/(ee% ; FB / *econds +s.?"GC?,% +s.DDD"C?/(ee% 8 FB / *econds +s.?"GC?,% +s.DDD"C?/(ee% < ? / *econds +s.?"GC?,% +s.???"DB?(ee% 9 ? / *econds +s.?"GC?,% +s.???"DB?(ee% > BG / *econds +s.?"GC?,% +s.FFF"?//(ee% = BG / *econds +s.?"GC?,% +s.FFF"?//(ee% 6 BG / *econds +s.?"GC?,% +s.FFF"?//(ee% 1 BG / *econds +s.?"GC?,% +s.FFF"?//(ee% 11 BG / *econds +s.?"GC?,% +s.FFF"?//(ee% 14 BG / *econds +s.?"GC?,% +s.FFF"?//

Total Cost Rs29388

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*trategic 8anagement by $raven; $hapter ? 8arketing *trategy

!mplementation and $ontrol" Part #.

+eferences for !nternational 8arketing and Trade *ystem

*trategic 8anagement Process by Philip

sip tea

Documents