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Lipton tea
1.
2. INTRODUCTION ABOUT COMPANY
2
LIPTON WAS CREATED IN 1871
CREATOR : THOMAS LIPTON
SLOGAN: “ DIRECT FROM GARDEN TO TEA POTS”
THOMAS OPENED HIS OWN SHOP
AFTER 1880,s BUSINESS GREW UPTO 200 OUTLETS
TODAY LIPTON COVERS MORE THAN 15% OF TOTAL
WORLD MARKET OF TEA
3. TEA “PART OF LIVES”
3
At break fast
During lunch break at workplace
In the evening at home
Guest are typically offered between tea and soft drink
Common practice to offer tea breaks to hired labor
4. INTRESTING INFORMATION
4
Total consumption in a country 200,000 to 225,000 tones
1649 cups of Lipton tea are enjoyed every time blinked
8245 cups of Lipton tea are enjoyed every second
1252 cups of Lipton tea are drunk every time you heart beats
52 billon cups of tea are drunk each year
45.75 billion tea bags are produced during a year by Lipton
5. MARKETING MIX
5
PRODUCT
Lipton tea is of high premium quality and mainly to cater the upper, upper middle
Pleasure
Taste
Aroma
Flavor
Delight and Freshness
Convenience & Health
Availability
Quickly Available
Physiological functional claims
Benefits of Cardamom
6. PRICE
6
•SPECIAL DISCOUNT OFFERS EVENTS LIKE RAMADAN AND EID
•1KG PACKET ONLY AND ITS COSTS AROUND RS.600
•190 GRAMS PACK RS 95
•THE CUP OF TEA COSTS AROUNDRS.15-20
7. PLACE
7
Special stores like Metro, CSD, and Hyper Star Makro
Nonspecific stores for example general stores bakeries
All type of tea not placed on all stored & outlets
High quality for niche segment
Availability more than 180000 outlets, Serves 150 countries
Head quarter in Karachi 650 distributions all over Pakistan
8. PROMOTION
8
Lipton tea is advertising itself on TV channels, print media and social
networks giving promotion like the chance of winning DSLR camera
through lucky draw.
Lipton does it promotion done in following ways advertisement
Personnel selling
Co branding (Lipton )
Sale promotion
Internet marketing
Publicity
10. SWOT ANALYSIS
10
Unilever is a multinational company
Powerful heritage of Lipton, in the Pakistan market since 1948
Familiar with psycho and demographics of the local consumers
Strong brand image and brand awareness in Pakistan
Market leader as has 70% market share in branded tea.
Larger sales force
Strong and long-term relationship with distributors, wholesalers
and retailers.
Sound and experienced management.
STRENGTHS
11. WEAKNESSES
11
Loss of market share to Tapal in Karachi and Multan
Low market share in N.W.F.P.
Positioning of Lipton Yellow Label as a premium product to which
consumers have a weak emotional attachment
12. OPPORTUNITIES
12
High rate of population growth
Rising literacy
Tea was added to the smuggled goods list in March 1998 and import
duty was reduced from 45 to 25 percent. This has collectively placed
the entire organized tea business in a more favorable position.
Market opportunity of Lipton Yellow Label in rural areas
13. THREATS
13
Threat from cheaper tea smuggled into the country via border areas
of NWFP and Baluchistan seriously affecting Lever’s sales and
earnings.
Possible increase of Tapal and loose tea market shares
Rising inflation, which reduces disposable income of consumers?
Increasing import duties since a lot of raw materials are imported
would raise the price of its end products.
Lipton’s profit margin is exposed to rupee devaluation.
14. MARKET SEGMENTATION
14
GEOGRAPHIC
Country Pakistan
Country Region All
Climate Moderate
DEMOGRAPHIC
Age 12+
Gender Male-Female
Income Rs 5000+
Occupation Professionals, Students,
Managers, Officials
Education Professionals, Graduates,
Student
15. MARKET SEGMENTATION
15
PSYCHOGRAPHIC
Social Class Upper
middles, lower Uppers, upper-
uppers
Life Style Achievers
Personality Cultured,
energetic.
BEHAVIORAL
Occasions Regular, Special
Benefits Taste, Aroma
Loyalty Status Strong
User Rates Medium user, heavy user
Readiness State Aware, interested,
desirous
Attitude towards Product Positive,
16. POSITIONING
16
Lipton is portrayed as a high quality product mostly catering to
the affluent or the middle class; it portrays itself as a
cosmopolitan, elegant, high class and sophisticated tea.
High quality
High price
Great aroma
New taste
Exciting and refreshing
17. ADVERTISING LANE FOR A PRODUCT
17
Budget
Budget comes to a total approximately 15 billion rupee
Budget requirement is necessary as hoarding would be set
up at location costing up to 2 billion
19. MARKET POTENTIAL
19
84% of elite class & high middle class prefer Lipton over tapal where
as 95% of middle and lower middle class prefer tapal over Lipton
Whom should Lipton target
85% of brands made purchase by women
Market potential:
Assume this formula that one person consume 1 kg of tea in a year
20. DISTRIBUTION CHANNEL
20
Northern sales:
Multan, Lahore, Islamabad
Sothern region
Karachi sukkar, Hyderabad
Sales manager 2
Regional manager into different 6 region
Zonal manager 19 zones
Zones managers further 4-6 zones
Territory sales executive & sales officer 110 territory
475 towns at least 1 distributors around 6-8 people per town
21. SUPPLY CHAIN
21
Manufacturer
Whole seller
Retailer
Consumer
Lipton have separate supply chain department
Distributor
Whole seller
Universities/ restaurants/ institution
Retailer
Offices /house
End user application of product
22. HOW DISTRIBUTIONS WORKS
22
Territory executive officers go to respective assigned
distributors and take their order
Their distributors have their own sales man who go from shop
to sop
Total amount off all orders is calculated and amalgamated
amount forwarded from Lipton distributor to Lipton territory
executive officer
As a channel distribution quality check once in two months
territory executive officer and distributor perform shop to
shop ordering booking