Research on brand loyalty and consumer of tea in pakistan

INFLUENCE OF BRAND
LOYALTY CONSUMER
OF TEA IN PAKISTAN
IRFAN ALI
A s s i t a n t M a n a g e r
R e t a k a f u l
7 / 2 8 / 2 0 1 6
Brand Loyalty
Brand Loyalty Is When Consumers Become
Committed To Your Brand And Make Repeat
Purchases Over Time. Brand Loyalty Is A Result
Of Consumer Behavior And Is Affected By A
Person's Preferences. Loyal Customers Will
Consistently Purchase Products From Their
Preferred Brands, Regardless Of Convenience
Or Price. The beverages sector in Pakistan has
undergone significant transformation in the
past 12 years. Within the beverages sector,
Tea industry in Pakistan is to grow 25- 30 %
annually and would double or triple times.
2014.

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Brand Loyalty and Consumer of Tea Page 1
Contents
INTRODUCTION...................................................................................................... 6
Brand Loyalty......................................................................................................... 8
PURPOSE OF STUDY............................................................................................. 12
Limitations of the Study....................................................................................... 12
RESEARCH OBJECTIVES ........................................................................................ 13
DEFINATION OF BRAND LOYALITY........................................................................ 15
LITERATURE REVIEW............................................................................................ 18
Importance of Brand loyalty in Pakistan .............................................................. 18
FACTORS OF BRAND LOYALTY.............................................................................. 21
Brand Name..................................................................................................... 21
Product Quality................................................................................................ 22
Price................................................................................................................. 23
Style................................................................................................................. 24
Store Environment........................................................................................... 25
Promotion........................................................................................................ 26
Service Quality................................................................................................. 27
We Find That Factor Of Brand Loyalty Has Effects On Consumer Of Tea...... 28
Brands to Love marks....................................................................................... 30
Brands are in a Bind ............................................................................ 30
HISTORY OF TEA................................................................................................... 31
MARKET SUMMARY......................................................................................... 34
Tea: A Common Man’s Drink ........................................................................... 36
Import ofTeainPakistan............................................................................... 38
Leading Tea Brands in Pakistan ......................................................................... 39
Brook Bond Supreme A1 Karak Chai: ............................................................... 40

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Tetley Tea: ....................................................................................................... 41
Tapal Tea (Private) Limited: ............................................................................. 47
MARKET SUMMARY......................................................................................... 49
Lipton:.............................................................................................................. 53
Consumer Behavior to Tea Drinking..................................................................... 55
Statistics on Tea consumption in China............................................................ 57
Impact of Age and Income on Consumer Preference with Reference to Brand Tea
............................................................................................................................. 58
Factor 1: Personal & Family influence .............................................................. 58
Factor 2: Quality Promotion............................................................................. 58
Factor 3: Product Availability ........................................................................... 59
Prospects for the Pakistan Tea Industry............................................................... 60
PREDICTING TEA CONSUMPTION..................................................................... 61
Investment In Tea Production In Relation To Government Policy .................... 62
Future Prospects.................................................................................................. 65
The 2011 NBI study also reflected significant,...................................................... 66
Influence of Brand Loyalty and Consumer of Tea................................................. 69
Apply the theory of consumer behavior to tea drinking................................... 69
Impact of theory on marketing strategies for tea............................................. 71
SUGGESTIONS...................................................................................................... 73
For Marketer.................................................................................................... 73
For Consumer .................................................................................................. 73
SWOT Profile of Tea Industry in Pakistan............................................................. 74
Recommendations............................................................................................... 75
CONCLUSION ................................................................................................... 76
References........................................................................................................... 78

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INFLUENCE OF BRAND LOYALTY
AND CONSUMER OF TEA IN PAKISTAN
Hailey College of Banking and Finance
University of the Punjab, Lahore

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DECLARATION
I Hereby Declare That This Project Report Entitled Influence of Brand
Loyalty And consumer Of Tea in Pakistan is a Bonafied Work Done By
Me For The Award Of Degree Of Bachelor Of Business Administration
Submitted To Hailey College Of Banking And Finance. The Results
Embodied In This Report Have Not Been Submitted To Any Other
University Or Institution For The Award Of Any Degree/Diploma
Certificate Or Published Any Time Before.
IRFAN ALI
Mi11BBA019

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DEDICATION
I Dedicate This Project To My Father Who Made Me Big
Enough That I Am, Now, Able To Speak At Large Stages.

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INTRODUCTION
Brand Loyalty Is When Consumers Become Committed To Your Brand And Make
Repeat Purchases Over Time. Brand Loyalty Is A Result Of Consumer Behavior And
Is Affected By A Person's Preferences. Loyal Customers Will Consistently Purchase
Products From Their Preferred Brands, Regardless Of Convenience Or Price.
Companies Will Often Use Different Marketing Strategies To Cultivate Loyal
Customers, Be It Is Through Loyalty Programs (I.E. Rewards Programs) Or Trials
And Incentives.
The beverages sector in Pakistan has undergone significant transformation in the
past 12 years. Within the beverages sector, Tea industry in Pakistan is to grow
25- 30 % annually and would double or triple times in the size by 2014. This
industry is gradually inching its way towards becoming the next booming
industry. Tea is available in two broad forms i.e. branded tea and loose tea. A
Branded tea meant by those all tea brands which are known at national level Like
Liptan tea, Tipal and Sprime Tea are performing very well in the market, while a
loose tea means all tea brands which are known at regional level like qamar tea,
vital tea, etc. and are performing very well with competing in local market in every
city. Consumer preferences are defined as the subjective (individual) tastes, as
measured by utility, of various bundles of goods. Main objective of this paper is
to explore the market potential of branded and loose tea. The study will help the
retailers to understand the underlying consumer preference factors for the
branded tea and help them to craft their marketing strategies. Profiling option of
tea by their choice of consumer preferences provides more meaningful ways to
identify and understand various customer segments and to target each segment
withmore focused marketing strategies.
Tea remained extremely popular in Pakistan, consumed by people in all income
groups. Tea, which is served to guests or consumed in the workplace and schools,
colleges and universities, is an essential part of daily life in Pakistan. People prefer
packaged loose tea as it a cheaper option and easily available via traditional,
independent grocery retailers, which are more accessible to the mass consumer

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base. Thus, companies continued to face tough competition as consumers chose
unpackaged and unbranded loose tea over available brands in the market. Tea in
Pakistan is expected to grow by an 8% off-trade value CAGR at constant 2014
prices over the forecast period. The strongest growth will come from consumers
switching to branded tea and the faster development of newer formats, such as
tea bags. Black standard tea bags value sales predicted to see a 15% off-trade
value CAGR at constant 2014 prices. Green tea is projected to post the second-
fastest CAGR of 8%.
Nowadays, most of the consumers buy products with the help of brand rather
than by inspecting the products. Brand is not only a name given to a product but
also a technique by which the quality or the product of various producers are
differentiated. Every manufacturer wants and tries his best to make the
consumers loyal to the brand of their product. However, quite naturally, all the
consumers do not deal or behave with the brands exactly in the way that
marketers want. In spite of availability of different brands, some are indifferent in
selection of a brand. Similarly, some are constantly switching from one brand to
other.
Every brand has a certain image in the market. Every brand is known for its own
feature and quality. So, the consumers, according to their faith, trust on quality
and feature, according to the experience of the same or due to another
psychological element, prefer one brand to others. If they think a brand is good in
terms of quality, price, social status or any other, they develop a positive attitude
toward the brand and repeatedly purchase the brand. When this happens, i.e.,
when consumers develop a positive attitude towards the brand and an intention
to repurchase, the manufacturer has gained a great asset known as brand loyalty.

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Brand Loyalty
According to Aaker (1991), brand loyalty is “the attachment that a customer has
to a brand”. Yoo and Donthun (2001) also referred to brand loyalty as the
tendency to be loyal to a brand and this can be shown by the intention of the
consumer to buy the brand as a foremost choice.
Oliver (1999) also defined brand loyalty as “deeply held commitment to re-buy or
re- patronize a preferred product/service consistently in the future, thereby
causing repetition of same-brand or same brand set purchasing, despite
situational influence and marketing efforts having the potential to cause
switching behaviors”.
Odin et al. (2001) stated that brand loyalty can either be behavioral or attitudinal.
Behavioral loyalty comprises of repeated purchases of the brand. According to
Dekimpe et al. (1997), one advantage of this is that it measures observable
behaviors rather than self-reported deposition or intention. It is easier and
cheaper to measure.
According to Chaudhuri and Holbrooks (2001), attitudinal loyalty can be referred
to as the extent of dispositional promises with respect to some particular
advantages connected with the brand while behavioral loyalty has to do with the
intention to repeat a purchase.
China is far and away the largest consumer of tea, at 1.6 billion pounds a year. But
per person, as illustrated in the map above, the picture is a lot different: Turkey,
Ireland, and the United Kingdom are home to the world’s biggest tea drinkers.
The Turkish, for one, don’t merely enjoy drinking tea; they downright adore the
stuff. Turkey’s nearly 7 pounds per person per year is easily the largest in the
world.

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Rank Country Tea consumption
1 Turkey 6.87 kg (242 oz)[6][7][8]
2 Morocco 4.34 kg (153 oz)
3 Ireland 3.22 kg (114 oz)
4 Mauritania 3.22 kg (114 oz)
5 United Kingdom 2.74 kg (97 oz)
6 Seychelles 2.08 kg (73 oz)
7
United Arab
Emirates
1.89 kg (67 oz)
8 Kuwait 1.61 kg (57 oz)
9 Qatar 1.60 kg (56 oz)
10 Kazakhstan 1.54 kg (54 oz)
11 Malta 1.45 kg (51 oz)
12 Hong Kong 1.42 kg (50 oz)

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13 Bahamas 1.35 kg (48 oz)
14 Syria 1.29 kg (46 oz)
15 Russia 1.21 kg (43 oz)
16 Gambia 1.19 kg (42 oz)
17 Guyana 1.18 kg (42 oz)
18 Botswana 1.13 kg (40 oz)
19 Aruba 1.10 kg (39 oz)
20 Iran 1.07 kg (38 oz)
21 Zimbabwe 1.05 kg (37 oz)
22 Chile 1.02 kg (36 oz)
23 Macau 1.01 kg (36 oz)
23 Pakistan 1.01 kg (36 oz)

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24 Japan 0.99 kg (35 oz)
25 Bahrain 0.98 kg (35 oz)
In Pakistan, tea is popular all over the country and holds an integral significance in
local culture. It is one of the most consumed beverages in Pakistani cuisine. The
local name for tea, in Urdu, is chai (written as ‫ے‬ ‫.)چائ‬ While Pakistan does not
produce tea, it is a major tea-consuming country, being ranked as the third largest
importer of tea in the world.[1] In 2003, as much as 109,000 tons of tea were
consumed in Pakistan, placing it as the seventh largest tea-consuming country in
the world.

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PURPOSE OF STUDY
The purpose of this research is to investigate how the respondents are influenced
by factors of brand loyalty towards Tea brands. Brand loyalty is important for an
organization to ensure that its product is kept in the minds of consumers and
prevent them from switching to other brands. i want to find how the brand
loyalty influence the consumer of tea How many factor of brand loyalty that were
appropriate in the environment and how they influence the consumer of tea in
Pakistan.
 To conclude behavioral factors are accountable for making a choice of a tea
brand and consumer buying behavior is closely associated with the
behavioral traits.
 To trace out the most acceptable attribute that governs the decision
making of the consumer while selecting particular tea brand.
There is positive and significant relationship between factors of brand loyalty
(Brand Name, Product Quality, Price, Style, Promotion, And Service Quality and
Store Environment) with Tea brand loyalty?
Limitations of the Study
The study only focuses on common consumer goods like; tea
Conclusions derived may not be necessarily applicable to other products and
other parts of the country.
The study is based on the data available from the web browsing methods.
• Study is focused in Pakistan
• Data are Secondary in nature.

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RESEARCH OBJECTIVES
In the competitive market brand has become so hard that hardly anything goes
understand. Even the goods value one rupee has a package with distinctive
symbols of manufacturer. Achievement of an industry is the main function of the
successful marketing of its products. The term "successful marketing" to hear is
very easy; but in reality, it is very complicated. Successful marketing require
proper branding labeling, and packaging. Therefore producing a product is not
sufficient for successful marketing.
Thus the brand loyalty leads to strong brand preference and repeated purchasing
behavior. Such brand preference give extra benefit to companies even to extent
of high price charging because consumers do not mind to pay even more for their
preferred brand. This study There isfore conducted mainly to measure the Brand
loyalty and behavior of consumer of tea. Therefore, this study focuses mainly on
the brand loyalty and loyalty of consumer of tea in Pakistan.
 To analyze consumers' brand consciousness toward the concerned
products under study
 To identify the relationship of brand loyalty with demographic variables like
age, sex and income
In the competitive market, successful marketing of products demand on
understanding of consumer's taste, focus and loyalty. This study is necessary to
know the consumers' behavior on consumer products. Hence, manufacturers and
marketers can decide the advertisement policy, consumers' response to the price
and consumers' perception about their product. We can segment the market on
behalf of loyal consumer market and non- loyal consumer market. Marketers
should be able to enhance the brand equity and from this will protect themselves
from fierce competition. This study can be helpful in managing the marketing mix
variables

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Find out the Answer of these following questions.
1. There is a significant and positive relationship between brand name and
brand loyalty on consumer of Tea
2. There is a significant and positive relationship between product quality and
3. There is a significant and positive relationship between price and brand
loyalty on consumer of Tea
loyalty on consumer of Tea.
5. There is a significant and positive relationship between style and brand
6. There is a significant and positive relationship between promotion and
brand loyalty on consumer of Tea?
7. There is a significant and positive relationship between service quality and
brand loyalty on consumer of Tea.
8. There is a significant and positive relationship between store environment
and brand loyalty on consumer of Tea?
9. There is no significant difference in brand loyalty between male and female
to purchase of Tea?
10. There is no effect of income on brand loyalty for Tea?

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DEFINATION OF BRAND LOYALITY
Aaker (1991, 1396) classified loyalty as, non- customer; Price switcher; Passive
loyal; Fence sitters and Committed. Kotler and Armstrong (2004) also classified
loyalty to include switchers, soft-core, hard- core loyal and shifting loyal.
Brand loyalty is the situation in which a consumer generally buys the same
manufacturer- originated product or service repeatedly over time rather than
buying from multiple suppliers within the category or the degree to which a
consumer consistently purchases the same brand within a product class. Brand
loyalty reflects how likely a customer will be to switch to another brand,
especially when that brand makes a change in price, product features,
communication, or distribution programs (Aaker, 1991)
Brand loyalty represents the core of a brand’s equity. Brand loyalty is the ultimate
objective and meaning of brand equity, adding that brand loyalty is brand equity
(Travis, 2000). Brand loyalty can’t be analyzed without considering its relationship
to other descriptive dimensions of brand equity like awareness, perceived quality,
or associations.
Firstly, all the other descriptive dimensions of brand equity can enhance brand
loyalty, as perceived quality, associations and awareness provide reasons to buy
and affect satisfaction. Loyalty could arise from a brand’s perceived quality or
associations, but could also occur independent of these dimensions (for example,
a person can be loyal to a low perceived quality brand and dislike a brand with a
high perceived quality due to subjective reasons). Yet, the nature of this
relationship is unclear. On the other hand, loyalty can induce a higher perceived
quality (for example, a potential customer has a better evaluation of a brand if
that brand is perceived as having a loyal customer base), stronger associations
(the brand can be associated to elements characterizing its loyal customers), or
increase awareness (loyal customers tend to provide brand exposure to new
customers through ‘mouth to mouth’ communication) (Bloemer & Kasper, 1995).

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According to Engel and Blackwell (1982) Brand loyalty can be classified into four
categories; Undivided Loyalty; Divided Loyalty; Unstable Loyalty and No Loyalty.
For example, if A, B, C, D, E, F are the various brands in the particular product
category. The consumer of the product could be classified as having the following
types of loyalty: Undivided Loyalty, if the purchase sequence is AAAAAA
Divided Loyalty, if the purchase sequence is ABABAB Unstable Loyalty, if the
purchase sequence is AAABBB No Loyalty, if the purchase sequence is ABCDEF
Thus, it is obvious that according to this definition brand-choice sequence is the
(criteria that measures the brand loyalty).
In general, brand loyalty can be defined as the strength of preference for a brand
compared to other similar available options. This is often measured in terms of
repeat purchase behavior or price sensitivity (Brandchannel.com, 2006).
However, Bloomer and Kasper (1995) defined true brand loyalty as having six
necessary conditions which are:
1) The biased (i.e. non-random)
2) Behavioral response (i.e. purchase)
3) Expressed over time;
4) By some decision-making unit;
5) With respect to one or more alternative brands out of a set of such brands
6) A function of psychological processes
True brand loyalty exists when customers have a high relative attitude toward the
brand exhibited through repurchase behavior. This type of loyalty can be a great
asset to the firm: customers are willing to pay higher prices, may cost less to serve
and can bring in new customers to the firm (Reichheld and Sasser, 1990).
The brand loyal consumer does not attempt any kind of attribute evaluation but
simply chooses the familiar brand on the basis of some overall positive feelings
towards it. This overall positive evaluation stems from past experience with the
particular brand under consideration.

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Amine (1998) in her literature distinguishes two main approaches to define the
loyalty construct: the behavioral one suggests that the repeat purchasing of a
brand over time by a consumer expresses their loyalty, and; the attitudinal
perspective which assumes that consistent buying of a brand is a necessary but
not sufficient condition of ‘true’ brand loyalty and it must be complemented with
a positive attitude towards this brand to ensure that this behavior will be pursued
further.
Thus, brand loyalty is a function of both behavior and attitudes. It is a consumer’s
preference to buy a particular brand in a product category. It occurs because
consumers perceive that the brand offers the right product features, image, or
level of quality at the right price. This perception becomes the foundation for new
buying habits. Consumers will initially make a trial product of the brand and,
when satisfied with the purchase, tend to form habits and continue to purchase
the same brand because the product is safe and familiar.
Nowadays, most of the consumers buy products with the help of brand rather
than by inspecting the products. Brand is not only a name given to a product but
also a technique by which the quality or the product of various producers are
differentiated. Every manufacturer wants and tries his best to make the
consumers loyal to the brand of their product. However, quite naturally, all the
consumers do not deal or behave with the brands exactly in the way that
marketers want.

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LITERATURE REVIEW
Importance of Brand loyalty in Pakistan
 A Look into Pakistani Consumer Insights
In the competitive market brand has become so hard that hardly anything goes
understand. Even the goods value one rupee has a package with distinctive
symbols of manufacturer. Achievement of an industry is the main function of the
successful marketing of its products. The term "successful marketing" to hear is
very easy; but in reality, it is very complicated. Successful marketing require
proper branding labeling, and packaging. Therefore producing a product is not
sufficient for successful marketing. Companies that successfully cultivate loyal
customers also develop brand ambassadors – consumers that will market a
certain brand and talk positively about it among their friends. This is free word-of-
mouth marketing for the company and is often very effective.
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase
or otherwise continue using the brand and can be demonstrated by repeated
buying of a product or service, or other positive behaviors such as word of mouth
advocacy.
Every brand has a certain image in the market. Every brand is known for its own
feature and quality. So, the consumers, according to their faith, trust on quality
and feature, according to the experience of the same or due to another
psychological element, prefer one brand to others. If they think a brand is good in
terms of quality, price, social status or any other, they develop a positive attitude
toward the brand and repeatedly purchase the brand. When this happens, i.e.,
when consumers develop a positive attitude towards the brand and an intention
to repurchase, the manufacturer has gained a great asset known as brand loyalty.
In marketing research, measuring customer loyalty isn’t an easy task. And there is
no single way of measuring loyalty – in fact; it’s one that fits the bill.

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Different marketing gurus support different tools for measuring brand loyalty. For
consumer panels, the most practical metric to measure loyalty is the share of
requirement; this method takes repeat purchase as a measure of brand loyalty to
the next level.
That is, unlike repeat purchase it does not ignore weight of purchase; while
repurchase is an important characteristic of brand loyalty, it often falls short of
fully capturing all of its dimensions. In fact, it may be possible that a consumer is a
repeat purchaser of brand but his loyalty is inclined towards another brand of the
same category. For example, a consumer could be buying a sachet of Ariel every
month to wash her expensive clothes but she also uses Bonus 1kg pack for the
remaining clothes on regular basis. Her monthly budget allocates PKR 20 for Ariel
but PKR 95 for Bonus; hence she is more loyal towards Bonus than Ariel. Further,
repeat purchases are not relative and fail to measure the degree of loyalty.
Share of requirement (or loyalty) is the brand’s market share among the users of
the brand and is measured by dividing the total brand purchases by their total
category purchases. The period measured is typically a quarter year, however,
this may vary depending upon the characteristics of the industry. Share of
Requirement (SOR) looks into the household purchase pattern to analyze if the
household is using a single brand or multiple brands at a time. For example, if a
household bought fifteen bars of skin cleansing soaps during the course of last
three months, and ten of them were Lux then the SOR for Lux would be 67%.
Also, this would indicate that the household’s allocation to competition brand in
personal wash category is 33%.Cultivating brand loyalty among consumers is the
most challenging task. When a consumer starts using the brand, usually he/she is
not loyal towards it and there is barely any sentimental values attached. Through
constant reinforcement (advertisement & good product experience), consumer
not only repurchases the brand but also starts believing in the story that is being
told by the brand; hence eventually become a loyal consumer. These loyal
consumers, not only purchase brand in heavy volumes but also advocate others
to use it. Brand advocacy is another important concept all managers must pay
attention to, it is a state when consumers publically endorse a brand through
content sharing, referrals or just mentioning the brand to a social circle. The

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emergence of social media has offered an even bigger platform to the consumers
to advocate their most favorite brands. According to an article published on
Pakistan Advertisers’ Society (PAS), ‘Share a Coke’ campaign resulted in an
increase of 870% to Facebook traffic and over 75,000 virtual cans were shared
online. Few consumers use a single brand – even loyal consumers flirt with
other brands occasionally and in some cases a brand’s best consumers
may buy more from the competition than they do from the brand. To
monitor what competing brands fill the consumer’s shopping basket,
marketers use a different metric which is an extended version of SOR,
called ‘SOR Matrix’.While brand loyalty may not always exist, every single
brand will have a set of heavy, medium and light users. The heavy users generally
have a higher SOR compared to medium and light users whereas light users are
usually more inclined towards competition brands. Consumers with lower share
of requirements provide an exciting opportunity to the brand managers as they
are already consuming the brand and cost of acquiring consumer is not required.
Also, converting light users into medium users has often proved far more lucrative
than converting medium into heavy users. Many a time, brand loses upon great
opportunities by not being critical about brand loyalty. The holy month of Ramzan
has an increased demand for red syrups; however, there is very little for
households to distinguish between brands as all red syrup brands have similar
offerings including Jaam-e-Shireen and Rooh Afza. Hence, brands failed to gain
competitive advantage through brand loyalty. By focusing on loyalty and
increasing share of requirement, a brand may achieve volume gains without
increasing consumers and with minimal investment.

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FACTORS OF BRAND LOYALTY
1. BRAND NAME
2. PRODUCT QUALITY
3. PRICE
4. STYLE
5. STORE ENVIRONMENT
6. PROMOTION
7. SERVICE QUALITY
Brand Name
Famous brand names can disseminate product benefits and lead to higher recall of
advertised benefits than non-famous brand names (Keller, 2003). There are many
unfamiliar brand names and alternatives available in the market place. Consumers
may prefer to trust major famous brand names. These prestigious brand names
and their images attract consumers to purchase the brand and bring about
repeatpurchasing behavior and reduce price related switching behaviors
(Cadogan and Foster, 2000). Furthermore, brand personality provides links to
the brand’s emotional and self-expressive benefits for differentiation. This is
importantforbrands whichhaveonly minorphysicaldifferences andare consumed
in a social setting where the brand can create a visible image about the consumer
itself.
Onotherhand,fashionmagazinesandfashionpresselaborateonthedesigner’s
collections to the full extent and thus reinforce better images to facilitate consumer
recognition (Colborne, 1996). Consumers are usually able to evaluate each of
the products and brand name attributes (Keller, 2003). It is noteworthy that this

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information is essential for marketing managers to make informed decisions
concerning product positioning, repositioning and differential advantages.
According to Kohli and Thakor (1997), brand name is the creation of an image or
the development of a brand identity and is an expensive and time consuming
process. The development of a brand name is an essential part of the process
since the name is the basis of a brand’s image. Brand name is important for the
firm to attract customers to purchase the product and influence repeat
purchasing behaviour. Consumers tend to perceive the products from an overall
perspective, associating with the brand name all the attributes and satisfaction
experienced by the purchase and use of the product.
Product Quality
Product Quality encompasses the features and characteristics of a product or
service that bears on its ability to satisfy stated or implied needs. In other words,
product quality is defined as “fitness for use” or ‘conformance to requirement”
(Russell and Taylor, 2006).
Consumers may repeat the purchase of single brands or switch around several
brands due to the tangible quality of the product sold. According to Frings (2005),
the components of product quality of fashion merchandise include size
measurement, cutting or fitting, material, colour, function and the performance
of the merchandise. Fitting is a crucial aspect in garment selection because some
fitted garments such as swimsuits and aerobic wear can ideally enhance the
consumers’ general appearance.
Material is important in product quality because it affects the hand feel, texture
and other performance aspects of the product. Further, consumers relate
personally to color, and could select or reject a fashion because of colour. If the
colour does not appeal to them or flatter their own colour, they will reject the
fashion (Frings, 2005).
Functional attributes inTeainclude quick-dry, breathable, waterproof, odour-
resistant, lightweight, and antimicrobial and finally, durability which is the use life
of garments. For instance, some consumers wear theirTeafor heavy work and

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some for leisure and sports, as they need a lot of movement, while durability is an
important consideration in purchasingTea(Garvin, 1988).
Perfectionist or quality consciousness is defined as an awareness of and desire for
high quality products, and the need to make the best or perfect choice versus
buying the first product or brand available (Sproles and Kendall, 1986). This
indicates that quality characteristics are also related to performance.
Price
According to Cadogan and Foster (2000), price is probably the most important
consideration for the average consumer. Consumers with high brand loyalty are
willing to pay a premium price for their favored brand, so, their purchase
intention is not easily affected by price. In addition, customers have a strong
belief in the price and value of their favorite brands so much so that they would
compare and evaluate prices with alternative brands (Evans et al., 1996; Keller,
2003). Consumers’ satisfaction can also be built by comparing price with
perceived costs and values. If the perceived values of the product are greater than
cost, it is observed that consumers will purchase that product.
Loyal customers are willing to pay a premium even if the price has increased
because the perceived risk is very high and they prefer to pay a higher price to
avoid the risk of any change (Yoon and Kim, 2000). Basically, long-term
relationships of service loyalty make loyal customers more price tolerant, since
loyalty discourages customers from making price comparison with other products
by shopping around. Price has increasingly become a focal point in consumers’
judgments of offer value as well as their overall assessment of the retailer (De
Ruyter et al., 1999).
According to Bucklin et al. (1998), price significantly influences consumer choice
and incidence of purchase. He emphasized that discount pricing makes
households switch brands and buy products earlier than needed. Price is
described as the quantity of payment or compensation for something. It indicates
price as an exchange ratio between goods that pay for each other. Price also
communicates to the market the company’s intended value positioning of its

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product or brand. Price consciousness is defined as finding the best value, buying
at sale prices or the lowest price choice (Sproles and Kendall, 1986). Additionally,
consumers generally evaluated market price against an internal reference price,
before they decide on the attractiveness of the retail price.
Style
Style is visual appearance, which includes line, silhouette and details affecting
consumer perception towards a brand (Frings, 2005). According to Abraham and
Littrell (1995), a composite list of apparel attributes has been generated and one
of the conceptual categories is style. Consumers’ judgment depends on the
consumers’ level of fashion consciousness, so judgment will be conditioned by
their opinion of what is currently fashionable. Brands that supply stylish Treat
tract loyal consumers who are fashion conscious Fashion leaders or followers
usually purchase or continue to repeatedly purchase their fashion garments in
stores that are highly fashionable. International Journal of Economics and
Management They gain satisfaction from wearing the latest fashion and style
which also satisfies their ego. A research conducted by Duff (1999) investigated
the niche market in women’s sportswear, and the results showed that Tea
shoppers were becoming more fashion conscious and were demanding products
with more style; furthermore, consumers have a tendency to wear different
attires for different occasions.
The right brand identity has the power to attract, engage and compel people to
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of colour psychology; Fiona will help you understand the design details that will

FINAL PROJECT 2015
Store Environment
Omar (1999) emphasized that the store environment was the single most
important factor in retail marketing success and store longevity. Positive
attributes of the store, which include store location, store layout, and in-store
stimuli, affect brand loyalty to some extent. Store location and number of outlets
are crucial in altering consumer shopping and purchasing patterns. If consumers
find the store to be highly accessible during their shopping trip and are satisfied
with the store’s assortment and services, these consumers may become loyal
afterwards (Evans et al., 1996). Thus, a store’s atmosphere is one of the factors
that could influence consumer’s decision making.
The stimuli in the store, such as the characteristic of other shoppers and
salespeople, store layout, noises, smells, temperature, shelf space and displays,
sign, colours, and merchandise, affect consumers and serve as elements of
apparel attributes (Abraham and Littrell, 1995), which may in turn, affect
consumer decision making and satisfaction with the brand (Evans et al., 1996). On
the other hand, background music played in the stores affects attitudes and
behavior (Milliman, 1982). The slow-beat musical selection leads to higher sales
volume as consumers spend more time and money in a conducive environment.
There are many advantages to retailers having loyal customers. As stated by
Huddleston et al. (2004), customer loyalty could yield a favorable operating cost
advantage for retailers. Furthermore, they stressed that obtaining new customers
cost five to six times as much as retaining current customers. Loyal customers can
increase their purchase spending, they are low cost for retailers as compared to
obtaining new customers; they accept price premiums and they have customer
longevity. Research conducted by Lin and Chang (2003) showed that the channel
convenience of the brands had significant influence on buying behavior. This
means that the accessibility to this product/brand in the store is important when
purchasing low involvement products. Consumers will not go to another store just
to find the brand. Instead, they will stay put and choose another brand.

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Promotion
Promotion is a marketing mix component which is a kind of communication with
consumers. Promotion includes the use of advertising, sales promotions, personal
selling and publicity. Advertising is a non-personal presentation of information in
mass media about a product, brand, company or store. It greatly affects
consumers’ images, beliefs and attitudes towards products and brands, and in
turn, influences their purchase behaviors (Evans et al., 1996). This shows that
promotion, especially through advertising, can help establish ideas or perceptions
in the consumers’ minds as well as help differentiate products against other
brands.
According to Rowley (1998), promotion is an important element of a firm’s
marketing strategy. Promotion is used to communicate with customers with
respect to product offerings, and it is also a way to encourage purchase or sales of
a product or service. Sales promotion tools are used by most organizations in
support of advertising and public relations activities, and they are targeted
toward consumers as final users. She also states that promotion has a key role in
determining profitability and market success and is one of the key elements of the
marketing mix which includes advertising; direct marketing; sales promotion;
public relations and publicity; personal selling and sponsorship.
i) To Promote Information: The firm provides the relevant information about its
various brands offered in the market. Information relates to features, prices,
special schemes, etc. of the brands.
(ii) To Differentiate the Product: Another main objective of brand promotion is
'brand differentiation' which means convincing the customers about the
unmatchable features or merits of the particular brand. For example, Pepsi
differentiates its brand by using the slogan "The choice of a new generation".
Such differentiation helps to create 'Brand Loyalty' which means consumers are
faithful to and continue to prefer a particular brand, e.g., Lux soap.

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Service Quality
A common definition of service quality is that the service should correspond to
the customers’ expectations and satisfy their needs and requirements (Gronroos,
1990). Service quality is a kind of personal selling, and involves direct interactions
between salespeople and potential buyers. Consumers like to shop at specific
stores because they like the services provided and are assured of certain service
privileges.
The impact of salespeople-consumer relationships will generally result in long-
term orientation of consumers towards the store or brand. Trust in salespeople
appears to relate to overall perceptions of the store’s service quality, and results
in the consumer being totally satisfied with the stores in the end. Additionally,
personalization (i.e. reliability, responsiveness, personalization and tangibles)
significantly influence consumers’ experience and evaluation of service, and in
turn, affects the brand loyalty of consumers (To and Leung, 2001).
Gronroos (1990) noted that the quality of a service as perceived by customers had
three dimensions: functional (or process) dimension, technical (or outcome)
dimension, and image. Furthermore, Richard and All away (1993) argued that
utilizing only functional quality attributes to explain and/or predict consumers’
behavior might be a misspecification of service quality and had low predictive
validity. . Trust in salespeople appears to relate to overall perceptions of the
store’s service quality, and results in the consumer being totally satisfied with the
stores in the end. Service quality is a kind of personal selling, and involves direct
interactions between salespeople and potential buyers. Consumers like to shop at
specific stores because they like the services provided and are assured of certain
service privileges.

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We Find That Factor Of Brand Loyalty Has Effects On Consumer Of Tea
1. There is a significant and positive relationship between brand name and
2. There is a significant and positive relationship between product quality and
loyalty on consumer of Tea
5. There is a significant and positive relationship between style and brand
6. There is a significant and positive relationship between promotion and
brand loyalty on consumer of Tea?
7. There is a significant and positive relationship between service quality and
brand loyalty on consumer of Tea.
8. There is a significant and positive relationship between store environment
and brand loyalty on consumer of Tea?
Product quality was shown to have positive relationship with brand loyalty. The
correlation between these two variables is shown in Table 6. The correlation is
considered a moderate correlation (r=0.302) based on Cohen’s (1988) guidelines.
This finding indicates that product quality is significant in the consumer decision-
making process.
The research findings showed that price and brand loyalty had a positive
relationship. Price was an important consideration for the average consumer.
However, consumers with high brand loyalty were less-price sensitive. The result
suggested that as long as the respondents were satisfied with a particular brand,
they would repurchase the product with the same brand name even if it was
highly priced. However, the findings showed that there was no relationship
between style and brand loyalty. From the seven variables identified, style was
not considered an important factor for Malaysians to be loyal to particular Tea
brand.

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The results showed that promotion and brand loyalty were positively related.
Promotion was considered as one of the most important factors in determining a
consumers’ brand loyalty. It includes the use of advertising, sales promotion,
personal selling and publicity. From the study conducted, it was seen that female
respondents actually spent more time reading product labels before buying
products. The finding also showed that service quality and brand loyalty had a
positive relationship. Service quality was an important factor in influencing and
encouraging consumers to patronize a store. The results indicated that the
salesperson-consumer relationship will generally result in long-term orientation
of consumers toward a store. At the same time, trust in the salesperson appeared
to relate to the overall perception of the store’s service quality which resulted in
the consumer’s total satisfaction with the store.
Store environment was positively related to brand loyalty. The Store environment
is considered one of the factors that can influence consumer brand loyalty. From
this study, it is observed that consumers paid much attention to store attributes
such as merchandise display, variety of selection, parking space, easily accessible
by car and the reputation of the store in purchasing products.

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Brands to Love marks
A decade ago the book Love marks: the Future beyond Brands made the
provocation that brands were practically dead. Brands had become ubiquitous,
commoditized. Everything had become a brand. Continuous improvements across
quality dimensions in manufacturing, distribution, service, price and even
promotion had led to a state of “peak brand.” Parity reigned across. The products
are interchangeable, and brand loyalty y in this market is likely to be driven
largely by marketing and packaging (Stockholm School of Economics).
Love marks recognize that the heart rules the head in decision-making. Moreover,
when a deep emotional connection is cultivated, anything, anywhere can win
loyalty that protects against preference attacks from competitors touting new
features, deals and designs.
Brandsare in a Bind
In the years since Love marks gained traction, brands as a force have continued to
decline. Inherent in the thinking was that only a small percentage of brands would
make it into hallowed Love marks territory. Only 23% of consumers in a 2012
Corporate Executive Board study said they have a relationship with a brand12
(Freeman, Spenner, Bird). The majority of people worldwide wouldn’t care if
more than 73% of brands disappeared tomorrow13 (Havas)
With more brands, more choices and more deals for brand-fatigued, tech-enabled
and ‘entitled’ consumers, customer loyal y has become harder to retain.
Furthermore, commanding premiums – the very reason brands were invented –
has become harder. People have the world at their fingertips and at the command
of t heir voice. Far from being reliant on brands to manage the information
tsunami, people know how to get what
They want fast brands that manipulate, under-deliver or over-price get sent rough
instantly. Contrary to popular thinking that people are over whelmed by
information.

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HISTORY OF TEA
In 2727 B.C Chinese Emperor Shen-Nung was boiling drinking water when a few
leaves of a wild tea tree blew into the royal bowl. He discovered that the leaves
imparted a delightful flavor to his water; and so it became his favored drink.
It is probable that tea was first cultivated in China, though it is possible that
people in Thailand and Burma have used it for as long as the Chinese have. The
China tea plant was taken to Japan in about AD 800, where it was regarded as a
medicine for several hundred years, until green tea was developed to become a
popular beverage. Tea was introduced into England, as a gift from the British East
India Company, in about AD 1660 and to rest to Europe soon thereafter.
By the end of the 19th century, China still supplied the bulk of the world’s tea. In
1886 it exported 136 million kg, of which 77 million kg went to Britain; while India
produced 40 million kg. But within a few years India moved ahead of China in
world trade. Ceylon (Sri Lanka) emerged as a tea producer in 1867 and Java (now
part of Indonesia) in 1878.
Today, traditional tea growing countries of China India, Indonesia, Sri Lanka and
Japan have been joined by many others in South America (Argentina, Brazil, Peru,
Ecuador) and Africa (Kenya, Uganda, Tanzania, Malawi, Rwanda, and
Mozambique).
Tea is generally considered the oldest prepared beverage. Whatever its colour
(black, green, yellow or white, depending on how it has been processed), tea can
be produced from three main varieties: camellia sinensiss, camellia sinensis
assamic and camellia seinensis cambodiensis.
When the tea tree grows under natural conditions, it is evergreen and can reach
10 to 15 meters, but when it is cultivated in gardens (the name given to tea
plantation worldwide), its height is artificially limited to one meter in order to
facilitate the pickers. Tea trees are grown mainly in tropical and subtropical
regions with humidity of 70 to 90 per cent. Rainfalls must be abundant and

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regularly distributed throughout the year, with a yearly average of 1,500 to 2,500
millimeters.
In Pakistan, tea is popular all over the country and holds an integral significance in
local culture. It is one of the most consumed beverages in Pakistani cuisine. The
local name for tea, in Urdu, is chai (written as ‫ے‬ ‫.)چائ‬ While Pakistan does not
produce tea, it is a major tea-consuming country, being ranked as the third largest
importer of tea in the world.[1] In 2003, as much as 109,000 tonnes of tea were
consumed in Pakistan, placing it as the seventh largest tea-consuming country in
the world.
While green tea has been an ancient tradition in Pakistan for thousands of years,
black tea was originally introduced and popularized during the colonial British era
in South Asia. Cities such as Lahore had one of the most vibrant tea cultures, as
the drink quickly absorbed into local culture. The shield on the State emblem of
Pakistan notably features a tea crop in one of its quarters. Tea is usually
consumed at breakfast, during lunch breaks at the workplace, and in the evening
at home. Evening tea may be consumed with biscuits or cake, depending on the
amount of time one has. Guests are typically offered a choice between tea and
soft drinks. It is common practice for homeowners to offer tea breaks to hired
labour, and sometimes even provide them with tea during the breaks. Tea offered
to labour is typically strong and has more sugar in it. High teas are common at
hotels and restaurants, and are usually buffet-style meals with light snacks.
Tea making techniques vary from home to home, and person to person, but tea is
typically made from loose tea leaves and steeped for a couple of minutes before
serving. A teapot and tea cosy may be used, if time permits, or tea may be
steeped directly in the kettle off the heat. After steeping, the tea is poured into
cups through a strainer. Milk may be added before or after the tea, but sugar is
typically offered separately so that each individual may add sugar according to his
or her own taste.

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Teabags are usually reserved for when time constraints do not enable one to
prepare tea from loose tea leaves. Tea served is typically black, with milk,
although green tea is becoming increasingly popular. While black tea is very rarely
consumed without milk, green tea is never served with milk. Most of the tea
consumed in Pakistan is imported from Kenya. After 1995, the Pakistani
government began to implement a tea plantation project, which established
green tea estates in Pakistan and achieved good performance.
Varieties
Different regions throughout the country have their own different flavors and
varieties, giving Pakistani tea culture a diverse blend. In Karachi, the strong
presence of Muhajir cuisine has allowed the Masala chai version to be very
popular while the thick and milky Doodh Pati Chai is more preferred in Punjab.
Biscuits and paan are common delicacies and staples enjoyed with tea. In the
northern and western parts of the country, including Khyber Pakhtunkhwa,
Balochistan and much of Kashmir, the popular green tea called "kahwah" is
predominant.
In Kashmir, Kashmiri chai or "noon chai," a pink, milky tea with pistachios and
cardamom, is consumed primarily at special occasions, weddings, and during the
winter months when it is sold in many kiosks. In the further north Chitral and
Gilgit-Baltistan regions, Central Asian variants such as salty buttered Tibetan style
tea are consumed.
In popular culture
The name for Three Cups of Tea, a bestselling book by American mountaineer and
educator Greg Mortenson, is taken from the Balti proverb in northern Pakistan:
"The first time you share tea with a Balti, you are a stranger. The second time you
take tea, you are an honored guest. The third time you share a cup of tea, you
become family.
The British documentary film Tracing Tea briefly covers tea culture in Pakistan.
Pak Tea House - a tea cafe in Lahore famously known for being visited by
prominent academic intellectuals and literary personalities from all walks of life

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MARKET SUMMARY
Tea is the cheapest and most popular beverage that is served at both
professional and social gatherings all over the world. In Pakistan it is counted as a
staple food item of common man and is an integral part of our culture and
heritage. Due to these causes Pakistan consumes an substantial quantity of tea.
Tea is Pakistan's favorite hot beverage. Although efforts have been made to
cultivate tea in the mountainous areas, the projects could not achieve the desired
results. Under this scenario, tea imports rose from approximately US$ 120 million
in 1998-99 to US$210 million in 1999-00, showing an increase of over 65 per cent.
Its imports were US$173 million in 2002-03.and still it’s increasing.
The above chart shows that the total tea market present in Pakistan is
150,000 tons and the organized market show 80,000 tons and the unorganized
show 70,000 tons. Here organized depicts the market owned by the brands and
unorganized depicts that this portion is owned by the loose tea. The main
competitor for organized tea market is the unorganized tea market present in
Pakistan.
Besides the high quality and the solid foundation of brand, Lipton never
slows the pace of understanding consumers and establishing communication with
consumers (Jean-Pierre, 2001). Lipton devotes itself to marketing innovation:
brand promotion. The current marketing strategies of Lipton focus on modern
young people and White-collar. They are active, like pop culture, pay attention to
health and wander about working partners to share little drops of life. Now Lipton
values the needs of the Internet boom and the emotional contact between
consumers.
As the core products, Lipton tea is not only a simple office drinking, but
also strives to deeply communicate with office white-collar group in emotional
level. Lipton finds that everywhere is busy White-collar in modern city, though
they are lucrative, they work strain. Although they want to contact with friends,
office life takes most of their time.

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Lipton uses Lipton tea as a contact link between friends, which can close
the relations between colleagues through the good office afternoon tea in relaxed
moments. On the one hand, Lipton establishes brand image of "the tea experts"
in the targeted consumers. On the other hand, it brings forth healthy tea and life
attitude for consumers. In order to satisfy the consumers' needs of good form and
health, after efforts of four years the global R&D center of Lipton and Lipton tea
research institute launch Lipton tea, rich in catching and healthy diet.

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Tea: A Common Man’s Drink
Tea is the world’s most favored beverage due to its general acceptability,
Comparative cheapness and advantageous effects. It is the second drunk
beverage after water. The tea plant originated from South East China and slowly
spread to Indo-Pak subcontinent, Sri Lanka and further
into tropical and sub-tropical countries. Tea contains
fluoride which prevents dental decay. It also prevents
the deposition of cholesterol on the artery wall, which
can in turn help avoid heart disease. Tea is also useful in
combating bacterial diseases of the intestines because it
has been found to contain compounds which prevent
multiplication of bacteria. Tea is also useful in the
control of diseases caused by radiation.
Pakistan was a bulk producer and exporter of tea until
1970, but after the loss of its eastern wing (now known
as Bangladesh) it turned into an importing country. Its
full requirement of tea is now met from tea exporting countries and mostly from
Kenya. It is spending an amount of Rs32 billion annually for the valued and hard
earned foreign exchange earnings on the import of tea.
In the aftermath of high growth in population, the demand for tea is growing at
an accelerating rate. The per capita consumption of tea in Pakistan is about one
kilogram. Pakistan is perhaps one of the few countries where tea has attained the
status of basic food among the poor masses. In the urban areas of Pakistan, tea
has become an essential requirement at breakfast time. Among the top ten tea
importing and consuming nations, Pakistan is third and fifth respectively.
Teais consumed by a wide rangeof age groups in all levels of society. Morethan 3
billion cups of tea are consumeddaily worldwide. Teais considered to be a part of
the huge beverage market. The active ingredients are of interest to functional
foods markets. Africa,South America, the NearEast and especially theAsian region
produce a varied rangeof teas. This, together with a reputation in the international
Table1: Top10TeaProduction
Countries
Rank Country
Production
(Tones)
1 China 127,5384
2 India 805,180
3 Kenya 345,800
4 Sri Lanka 318,700
5 Turkey 198,046
6 Vietnam 174,900
7 Indonesia 150,851
8 Japan 96,500
9 Afghanistan 76,000
10 Thailand 61,557

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markets for high quality, has resulted in Asia enjoying a share of every importing
market in the world.
Tea is made from the tender leaves of the tea plant, a species of evergreen
types. The introduction of tea is often attributed to the emperor Shen Nung about
2737 B.C. The Chinese tea plant, brought to Japan somewhere about 800
A.D. was regarded as a medicine for 500 years, until green tea was developed and
became a popular Japanese beverage.
Tea was introduced into Europe in the early 17th century, with the beginning of
trade between Europe and the Far East. By 1715 A.D. the British East India
Company, with a monopoly on overseas trade held over other British companies
that were operating in Asia, was firmly established in Canton. The cultivation of
tea in India began in 1834 A.D. with the planting of wild tea found growing in
Assam in 1823 A.D. The tea produced was sold in London in 1839 A.D. and, with
its acceptance, the modern tea industry began. Ceylon followed by India, become
a tea producer in 1867 A.D. after the leaf disease caused the failure, of its coffee
plantations. Tea production began in Java in 1878.
Teais mainly grown in Asia,Africa, around the Black and CaspianSeasandSouth
America. The four biggest tea-producing countries are China, India, Kenyaand Sri
Lanka. Together they representabout 75% of the world production. Untilthe end
of the 19th
century, productionwas concentrated in Asia. However, thetea fever has
now gripped other regions such as Africa and South America, which started
cultivating their own tea in the face of rising global demand. As a result, it is now
grown in about 40 countries. Numerous types of teas are produced in these
countries. In China, for example, the country with the largest plantation of tea and
second in output, green tea is around half of the total export, black tea around one
third and other teas one fifth.

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A wide range of tea products continue to be developed, through product and
process development for added- value, as market shares become more sophisticated
and competitive. The tea industry must rise to these challenges, facing the future
with confidence.
Table 2: Import ofTea
Year
Quantity
(Tones) Value (US $ Million) Value (Rs. Million)
2013-14 123,893 351 31,893
2012-13 118,657 334 28,807
2011-12 94,463 271 22,712
2010-11 85,350 193 17,417
Source: Federal Bureau of Statistics, Government of Pakistan.
The Asian region produces a varied range of teas and this, together with a
reputation in the international markets for high quality, has resulted in Asia
enjoying a share of every importing market in the world. Africa, South America
and the Near East also produce quantities of tea. Huge populations of Asia, UK,
EU, Middle East, Africa and countries of the CIS con- some tea. Top 10 tea
producing countries are given in Table-1
Import ofTeainPakistan
Pakistan imported black tea worth Rs.30.35 billion from 45 countries. Around
113,994 tons of black tea was imported during 2011- 2012 and a major share of
55.1% was imported from Kenya followed by India at17.13%. The consumption of
tea in Pakistan has been increasing at a faster rate and so have imports, after the
establishment of Bangladesh. Imports increased from 85,350 tons worth US $193
million in 2008-09 to 123,892 tons worth US$351 million in 2011-12. Import of tea
is given in Table-2 on the next page. Imports by kinds: Three kinds of tea are
imported in Pakistan: black, dust and green. Black tea and its dust form 95% of
total tea imports and the rest is green tea as given in Table-3.

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Leading Tea Brands in Pakistan
Pakistan, a country of tea-lovers due to the Islamic ban on alcohol, is one of
the highest per capita consumers of tea in South Asia. Local tea importers
speculate that this is due to a limited choice of beverages.
Pakistan is the third largest tea importer in the world after Russia and the UK
and consumes about 155 million kg of tea every year (of which about 130
million kg is imported).On average, each Pakistani consumes about a kilo of
tea a year, a total of approximately 155 million kg. For a population of
around 150 million. The annual tea import bill, which this year may be more
than US$200 million, highlights the importance of the country becoming self-
sufficient in both growing and manufacturing tea. So far, these efforts have
failed, and Pakistan continues to rely heavily on imported tea. In addition,
consumers increasingly want better quality tea.
The tea marketing chain typically resembles one of two models. The first one,
used mainly by large trans-national companies, is vertically integrated, with
one company managing all the steps, from cultivation on large estates (which
is often highly mechanized) to processing of tea bags. The second model can
be considered more "traditional". The tea is grown in smaller gardens, which
are often owned by a co-operative of producers, and is then usually
marketed by national boards, as in India, Kenya and Tanzania. The fair trade
movement has had an impact on the tea trade.
Tea imports from Kenya make up about 85 percent of the total import and
India is in the second place. Smugglers bring in another 60 to 70 million kg.
The import statistics for the month of April 2007 shows that 1.69 million kg
tea is imported from India. Imports are mainly from Kenya and other African
countries, while the two multinationals blenders import tea from Sri Lanka,
Indonesia and Bangladesh. In addition, tea is smuggled into the country via
the border areas of the NWFP and Balochistan. In KARACH the government is
annually losing Rs 152 million in Revenue due to tea smuggling through
Afghanistan, sources in the tea trade said. Pakistan has a 170 million kg tea
market.

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Pakistan Tea Association chairman Hamid Saeed told Daily Times that the
business of tea importers was badly hurt due to smuggling of tea. For the last
couple of years PTA had been complaining to the authorities by writing letters
and reminders to the Central Board of Revenue (CBR) and Anti-Corruption
Department. Every time it had been told that the authorities would consider this
issue and inform PTA of the new government policies.
To curb the problem of smuggling, Pakistan Tea Association and major tea
blenders, Unilever, Tapal and Tetley, are demanding that government should
abolish all duties and taxes levied on tea imports Brooke Bond Supreme:
Brook Bond Supreme A1 Karak Chai:
Brooke Bond Supreme is Pakistan’s largest brand of tea which is made primarily
from the world’s finest Kenyan tea. The success of Brooke Bond Supreme is based
on this very insight, since tea is a part of the social fabric of Pakistanis. Brooke
Bond Supreme was launched in Pakistan in 1984. Brooke Bond Supreme is the
largest selling tea brand in Pakistan.
Launched in 1996, the brand has certainly come a long way to acquire national
status. It has two variants catering to regional taste preferences, mixture for the
South and leaf for Punjab. Their product ranges from:
 Leaf tea
 Mixture

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Tetley Tea:
Tetley Tea maintains a tradition of quality begun over 160 years ago in England.
At the beginning of the 19th century, brothers Joseph and Edward Tetley founded
Joseph Tetley & Co. in 1837, after successfully selling tea off the back of their pack
horse for several years. In 1856, they moved the company to London—then the
center of the world's tea trade. They eventually parted, and Joseph unveiled the
newly named "Joseph Tetley & Co., Wholesale Tea Dealers."
In 1871, Tetley took his son Joseph "Junior" into partnership. Business flourished
and the company extended its services to include blending and packing. By 1888,
the company was ready to take its next major step-an agreement with American
agents to distribute Tetley's teas throughout the United States.
Tetley & the Tea Bag
Though sales of tea in tea bags accounted for only 5% of Tetley's sales by the
1930s, the company accurately pegged them as the future of tea commerce. War
interrupted immediate production plans, but the foundation was laid for the
launch of the Tetley Tea Bag in Britain in 1953.
Tetley continued to innovate with the introduction of the round tea bag to the
U.S. in 1992, that literally changed the shape of the market. Tetley further
revolutionized the industry with the unveiling of the first drawstring tea bag, in
1997. Designed to squeeze every possible drop of flavor into every cup, Tetley
drawstring tea bags have become a favorite with lovers of hot tea.
The legends surrounding tea date back several thousand years. Peeling back the
layers of tea history reveals fanciful Eastern folklore, Europe's emergence as a
global commercial power, the beginning of the American Revolution ... and the
history of a British tea company called Tetley.

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The tea we drink is derived from Camillia sinensis, an evergreen tree of the
Theaceae family. As Camillia sinensis is indigenous to China and parts of India,
each culture has a claim to the discovery of this popular beverage.
Fortuitous Wind and a Remarkable Revival
In China, the most enduring legend dates back over 4,000 years. Emperor Nun
Shen, a scholar and herbalist, was kneeling beside a fire, boiling water. With the
water at a tempest, a breeze blew the topmost leaves of a nearby tree into the
pot. The aroma drew Shen to taste the beguiling beverage. Immediately
delighted, Shen claimed that this liquid was both delicious and invigorating.
India's legend originates with a saintly priest named Bodhidharma. About 1,900
years ago, the eventual founder of Zen Buddhism was in the fifth year of a seven-
year sleepless contemplation of Buddha. Finding himself dangerously close to
falling asleep, Bodhidharma snatched some leaves from a nearby bush and
chewed them. He was immediately revived. Bodhidharma turned to these
leaves—the leaves of a wild tea tree—whenever he again felt drowsy, and was
thus, according to legend, able to complete his seven years of meditation.
An Eastern Rage Heads West
Tea's popularity as a wholesome, invigorating drink first spread throughout China
and Japan. The first book on tea, Ch'a Ching, was written by the Chinese author Lu
Yu in the eighth century. A definitive, poetic manual that covers the cultivation
and production of tea, it is credited with helping tea become China's national
drink long before it was ever tasted in the West.
Tea and tea drinking were first introduced to Europe by Portuguese and Dutch
traders in the 16th century. Ships plying trade between Holland and New
Amsterdam are believed to have brought tea to the New World sometime in the
mid-17th century. English colonists in Massachusetts began to use tea to a limited
extent soon after.
Monopolized Luxury to English Institution

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Tea's importance as a global commercial product started with the founding of the
East India Company in England. Created in 1600 under a charter granted by
Elizabeth I to seek exotic riches, the East India Company had a monopoly on all
goods entering Britain from outside Europe. This initially relegated tea to the
tables of England's high society. Over time, sailors returning from the Far East
shared it with family and friends, and enterprising smugglers avoided the East
India Company's monopoly and the government's tariffs by illegally importing it.
Tea was soon being requested in many of London's coffeehouses.
The new beverage was an immediate success. At the start of the 18th century,
England imported 200,000 pounds of tea each year; by 1750, that figure grew to
over two million pounds. Tea replaced ale and gin as Britain's most popular
beverage and spawned new industries, from tea gardens to English pottery and
porcelain.
Boston Throws a Tea Party
Tea's popularity in the American colonies followed a growth pattern similar to
England's, but dissension was brewing. Britain's practice of levying high tariffs on
imported goods, often as a means of financing military operations, outraged the
colonists. Subject to England's laws but with no say in the British Parliament, their
resentment became a slogan: “No taxation without representation.” The Tea Act
of 1773 gave the East India Company the right to ship tea directly from China,
making it impossible for many American importers to stay in business. This act,
along with the bitterness of unfair taxation, drove a band of angry patriots to
gather at Griffin's Wharf on December 16, 1773, and engage in an action that
would forever be known as the Boston Tea Party. The men, disguised as Native
Americans, boarded three East India Company ships, tore open all cargos of tea
and threw them into Boston Harbor. Similar acts of rebellion followed in other
American cities, and patriotic citizens turned from tea to coffee to register their
disgust with British rule. This event, and others like it, would ultimately lead to
the Revolutionary War.
A Global Phenomenon

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America staked its own claim to the Chinese tea trade in the 19th century and
soon found itself at war with England in a much more sporting fashion: racing
clipper ships. The East India Company had for years relied upon big, slow ships to
transport merchandise. Newly independent America, looking to make a splash in
international trade, designed a new, more streamlined vessel that could carry
more tea at a much greater speed. The first of these clippers (to “clip” is to
maximize speed from wind) was launched in New York in 1845. It immediately
halved the journey time from the Far East to London and allowed American crews
to sell their cargos at better prices, which in turn created even more demand for
tea in America.
Today, tea is the world's most popular beverage besides water. Since its discovery
many centuries ago, it has played an important role in events, ranging from
mystic to gilded to simply comforting. In China, tea remains a fixture of daily life,
as it has for centuries. Buddhists focus on peace and simplicity while using it in a
ceremony that can take up to three years to perfect. For the English, the “tea
break” is a cultural touchstone, and for many Americans today, iced tea is a
beverage that is as expected at a table as family and friends. Whatever your tea
experience may be, one thing is certain: Every sip reaffirms your part in a
remarkable, timeless story.

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Our Mission
 Tetley, the better state of mind teas.
 Our belief: A better state of mind begins with a better tea.
 Tea Is Extraordinary
From tuning in to chilling out, drinking tea makes you feel like no other
beverage can. We want to share our love of tea and have created lots
of varieties to enhance all the tea moments in your life.
Creating the perfect tea moment starts with the highest-quality teas. To
make sure that the flavor comes through with every sip, Tetley selects
some of the finest fresh-picked tea leaves from plantations around the
world. For instance, our British Blend combines premium Kenyan teas
for their attractive, bright appearance and Assam teas for their body
and strength. The result is a richer, more full-bodied blend with
superior tea flavor. Our Tetley Iced Tea blend is made especially for iced
tea. By using this special blend, we can make sure that every pitcher
you brew has the right color, clarity and real iced-tea taste in every
glass for you and your family to enjoy.
Being Progressive
While Tetley is steeped in history (pun intended!) we never give up the
hunt for insightful new stuff that makes a difference.
We've put 25% more tea in each of Tetley's British Blend round tea
bags, 2.5 g (versus 2 g in standard bags). That may not sound like a lot,
but it's enough to make every cup of British Blend richer, stronger and
even more flavorful.

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Our round tea bags use premium Perflo tissue, with over 2,000
perforations for faster infusion and better flavor release.
Caring for People
At Tetley, we don't just do as we like. We do what's right for our tea
drinkers, our team and our world.
Tetley cares about the social and ethical conditions involved in growing
the tea we buy. We believe our success must not be at the expense of
the people or the environment that make that success possible. That's
why we're a committed member of the Ethical Tea Partnership (ETP).
The ETP is a non-commercial alliance of 18 international tea packers
working together to promote social responsibility in the world tea trade
and assure the ethical sourcing of tea. The ETP monitors the living and
working conditions on tea estates and works with estate owners to see
that appropriate improvements are made. Sometimes estates choose
not to meet the minimum standards. That's when we draw the line and
stop buying tea from them. So when you buy Tetley Tea, you can feel
good knowing that every cup you enjoy was produced in a socially
responsible way.

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Tapal Tea (Private) Limited:
The journey of Tapal's remarkable success is the combined efforts of three
dynamic generations of the Tapal Family. In 1947, Tapal started out as a family
concern under the personal supervision of its founder, Adam Ali Tapal.
Against tough competition Adam Ali's unique blend, later named Family
Mixture, became a hot favorite and eventually the largest selling brand in the
unorganized tea market. From this auspicious 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 teas soon
became legendary and people from all parts of Karachi started lining up at the
outlet to purchase tea. For their convenience,Tea distribution was initiated to
retail outlets around the city. The company continued to grow under the
management of the founder's son, Faizullah A. Tapal.
Today Tapal Tea is managed by the founder's grandson, Aftab F. Tapal.
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 connoisseur himself, Aftab Tapal introduced new tea concepts and
developed a wide range of tea blends catering specifically to the tastes of people
throughout Pakistan. His progressive outlook resulted in giving further strength to
the foundation 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.

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From the dimmest of history when around 2727 B.C. a few leaves of a wild
shrub tea blew into the royal bowl of boiling water being sipped by the legendary
Emperor Shah Nung, known as the Divine Husbander as well as a patron of arts.
Tapal Tea here brought tea from the royal bowl to the common man's cups as the
most sought after beverage the country over.
Under the management of the founder's son, Faizullah A. Tapal, the
company continued to grow and innovate. Currently it is being managed by the
founder's grandson, Aftab F.Tapal who has continued giving further strength to
the foundations of quality laid by his family. After studying abroad, Aftab F.Tapal
returned to introduce professional management and unique production ideas into
the business.
His progressive outlook resulted in the total automation of the tea plants in
Karachi. Pioneer of the Danedar category in Pakistan, Tapal's Danedar remains a
firm favorite around the country with its grape-nutty appearance, rich golden
color and a strong refreshing taste. In fact its popularity is such that several
multinationals have launched their own versions, but Tapal remains the original
and ultimate Danedar because of its unique color, aroma and taste. Color and a
strong refreshing taste are its most significant attributes.
Tapal is proud to have been a part of Pakistan's history since its inception.
As a company they have grown and flourished together with the great nation.
Founded by Adam Ali Tapal, the company first started marketing a number of
quality blends to Pakistani consumer market.through continuous innovation
and research and development they gain a big share of Pakistani market. They still
are growing and hope to be a leader in a market in coming years.
Danedar blend is an excellent combination of lively taste and distinct flavor of
world’s best high grown teas, which produces satisfying cup of tea for the consumers
who like aromatic/flavor tea. The most important feature of this top quality Danedar
brand is that the characteristics of a brewed cup remain intact even after a long time.
Simply, Danedar is a powerful brand and a great value product and there is no real
substitute of it.

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Brands: The reason behind Tapal’s success in catching the hearts of the consumers is
that, it has always been close to them. This has been possible because of its strong
Brand Activation Activities. These activities have added a new dimension to their
marketing activities making them more attractive, exciting and interactive as possible.
MARKET SUMMARY
Tea is the cheapest and most popular beverage that is served at both professional
and social gatherings all over the world. In Pakistan it is counted as a staple food
item of common man and is an integral part of our culture and heritage. Due to
these causes Pakistan consumes an substantial quantity of tea.
Tea is Pakistan's favorite hot beverage. Although efforts have been made to
cultivate tea in the mountainous areas, the projects could not achieve the desired
results. Under this scenario, tea imports rose from approximately US$ 120 million
in 1998-99 to US$210 million in 1999-00, showing an increase of over 65 per cent.
Its imports were US$173 million in 2002-03.and still it’s increasing.
The above chart shows that the total tea market present in Pakistan is 150,000
tons and the organized market show 80,000 tons and the unorganized show
70,000 tons. Here organized depicts the market owned by the brands and
unorganized depicts that this portion is owned by the loose tea. The main
competitor for organized tea market is the unorganized tea market present in
Pakistan.
Our main focus is on organized tea market. Where different companies like
UNILEVER and TAPAL are holding the main market share. Some other companies
also present in the market but having very low share of the market.
· Unilever Pakistan limited has 43% market share.
· Tapal private limited has 41% market share.
· Vital tea limited has 6% market share.
· Tetley has 4% market share
· The remaining 6% belongs to other market share in the organized market.

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Unorganized market also captures a good market share in the total tea market of
Pakistan. 70000 tons out of 150000 consumption is of unorganized tea.71% of
total population of Pakistan are living in rural areas. Due to illiteracy and lack of
awareness they are consuming unorganized tea which is mainly affecting the
organized tea market. Due to this they are enjoying a very big market share of the
total tea market.
Organized segment mainly depend on the imported tea. Mainly big players are
importing tea from different countries like Kenya, uk, Bangladesh. Last some
year’s imported figures for Pakistan is described in the chart below.
Unorganized tea is mainly smuggled from different neighbor countries of
Pakistan. That’s why it has a large proportion in total consumption of tea in
Pakistan which is 70000 tons of total 150000 tons.
The main competitor of Tapal is the Unilever Pakistan which has the 43% of
market share with its different brands as
· Yellow Label
· Supreme
· Red Rose
· Pearl Dust
Yellow label has the sale volume of almost 10000 per ton and its other brand
Supreme with the lead 16000 per ton. Its lead is due to more rural and small
towns which this brand is targeting. Overall the Unilever has the sale volume per
ton of almost 34000. A-one kark is also another brand targeted to the rural areas

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TAPAL DANEDAR
As evident by its name the blend consists of well made premium quality Kenyan
BP1s (granules). Each component of Danedar blend is carefully selected to
provide a lovely looking leaf appearance that is neat, black, grainy and fairly even.
Danedar blend is an excellent combination of lively taste and distinct flavor of
world’s best high grown teas, which produces satisfying cup of tea for the
consumers who like aromatic/flavor tea.
The most important feature of this top quality Danedar brand is that the
characteristics of a brewed cup remain intact even after a long time.Simply,
Danedar is a powerful brand and a great value product and there is no real
substitute of it. Gulbahar Tapal Gulbahar, the Chinese premium quality Green Tea
blend is the favorite green tea among all age group. Due to its numerous health
benefits, Gulbahar has become the best selling Green Tea brand in Pakistan. Tapal
Gulbahar is also the first choice for the popular Kashmiri Tea consumers.
Tapal Special Tea Bags
The unique flavor of high grown leaves especially selected from the finest tea
gardens in the world make Tapal Special Teabags a treat at any time. The
combination of an extra strong blend with the convenience of environmental
friendly metal-free tea bags has made Tapal Special an instant hit with
consumers.
Tapal Safari
Tapal Safari is a tea which is serving its consumer base for almost past one decade
it is made from the finest Kenya leaf teas and provides extra cup page of great
tasting tea to the consumer. Tapal Safari chai, with its new Lion theme, is aimed
at adventurous, brave and for those who prefers to have a strong cup of tea.
Tapal has 9 brands. Its sales volume per ton is 32000. Danedar is the brand with
the high sales revenue and specially against the yellow label. Following brand is
Mezban with the most 8500 per ton specially for the area of Sindh province.

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MARKETING SEGMENTATION
As a whole when we see the market of tea in Pakistan, although it is not clearly
segmented but, Tapal did this thing very accurately that it segmented the market
very accurately. Its 9 brands in the current clearly shows the potential of each
brand in each segment define by the company. They clearly look at the nature
and extent of diversity of buyers needs and wants in a market. This thing offers a
great opportunity for Tapal to focus its business capabilities on the requirement
of one or more groups of buyers.
The main objective of this segmentation is to examine differences in needs and
wants and to identify the segments within the product market of interest.
CONTINUOUS LEARNING ABOUT MARKETS
In order to survive in the market you must have continuous learning about the
market. Tapal did it very efficiently as their innovation shows this. They have the
ability and they utilize it beautifully. Their continuous learning make them a real
competitor against an international recognize brands like supreme, lipton etc.
Tapal Chai Family Mixture is the pride of Tapal developed by the forefathers in
1947 and thus creating a new category of Mixture in the tea market. It is the
blend that started the Tapal success story, and now other tea companies are
following Tapal’s footsteps by entering the market with similar blends. Danedar
Leaf Blend Pioneer of the Danedar category in Pakistan, Tapal’s Danedar remains
a firm favorite around the country with its grape-nutty appearances, rich golden
color and a strong refreshing taste. Tea is part of culture in this region and now
Tapal has become an integral part of this tradition with an unparalleled grace of
its own.

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Lipton:
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. Their product ranges from:
 Caramel flavored
 Cookies flavored
 Vanilla flavored
 Lipton Green Tea
 Lipton Yellow Label tea bags
 Lipton Yellow Label sachet market price of tea Lipton Yellow is given in
Table-5.
Table 5: Market Price of TeaLipton
yellow (Label 250GM)
(Rs. Per 6PKT)
Market 2004-
05
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Karachi 340.00 345.80 361.30 355.00 481.50 591.50 630.50
Lahore 348.00 353.20 387.00 386.50 515.70 636.70 718.00
Rawalpindi 330.00 335.20 364.60 367.20 506.40 612.90 650.00
Hyderabad 341.35 350.20 382.30 379.10 501.40 605.50 611.50
Peshawar. 339.75 345.80 384.60 398.50 525.70 611.60 620.00
Quetta 342.58 341.70 370.60 380.50 478.50 536.70 580.00

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Green tea powders or soluble tea extracts have been used in Japtan for many
years. The tea industry is now developing and producing instant or powdered
black teas. Instant teas offer greater convenience than ordinary leaf tea: they are
easy and quick to infuse, leave no grouts for disposal and can be used in vending
machines. Instant tea powder may be produced by evaporating an ordinary
infusion to dryness, but a more satisfactory and economical method is to distort
and ferment tea leaf and then extract it, unfired. The resulting extract is
evaporated to dryness at a low tempera- true so that the resultant powder will
produce an infusion with bright brisk liquor and the tea aroma. Imports by
countries: Pakistan imported tea from various countries. However, the principal
exporting countries to Pakistan during 2011-12 were Kenya, Bangladesh, Rwanda,
Indonesia Sri Lanka and Uganda. Country wise import of black tea is given in
Table-4.
Table 4: Imports of Black Tea (Others)
Country
2012-13 2013-14
Quantity
(Tonnes)
Value
Quantity
(Tonnes)
Value
Kenya 64,666 18,727 71,491 18,558
Burund 3,536 946 2,937 721
India 16,596 3,661 11,668 2,479
Bangladesh 719 198 382 90
China 196 50 1,078 232
Ethiopia 246 59 379 78
Indonesia 399 920 3,317 695
Madagascar 520 120 2,055 430
Rwanda 8,662 2,100 8,325 1,956
Sri Lanka 3,058 915 6,351 163
Tanzania 2,522 599 2,725 565
Uganda 3,815 855 5,315 1,078
Vietnam 4,018 847 3,987 773
All Others 5,008 344 5,146 128
Total 113,961 30,341 114,864 27,946

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Consumer Behavior to Tea Drinking
With the deepening of research on consumer behavior, people more and
more profoundly realize that consumer behavior is an integral whole, is a process,
and obtaining and purchasing are just a stage of this process. Therefore, the study
of consumer behavior should investigate and understand the evaluation and
selection activities of consumers before the obtaining of products and services,
and what's more, attention should also be paid to the activities of the use and
disposal after the obtain of the products (Elizabeth, 2009). Since consumer
behavior is important, research on the theory of consumer behavior is necessary.
In a narrow sense, consumer behavior only refers to purchase behavior of
consumers and the actual consumption of consumer data. In a broad sense,
consumer behavior not only comprises some decision-making processes, which
refer to various actions that consumers take for the demand and dispose of
consumer goods, but also includes a serious of complex processes, such as the
obtain of consumption revenue (Leon, 2007). Both theory of central place and
model of space interaction regard the consumer group activities as the research
object. Theory of central place assumes that consumers will tend to a recent
center that can provide goods or services, which accords with the agent of
economic-man. According to the theory of central place, consumers are
intellectual in saving cost and maximizing their utility.
Model of space interaction regards that consumer behavior is closely
linked to the reaction of center attraction and the competition among other
center systems. In real life, purchase decision-makers, buyers, users of the same
goods or services may be the same individual, also may be different. Consumer
behavior is closely related to the exchange of products or services (Bruce, 2009).
In the condition of modern market economy, enterprises' research on consumer
behavior focuses on establishing and developing long-term exchange relationship
with consumers.

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In order to earn more profits and make a long-term development in the
fierce competition, enterprises should firstly need to understand that consumers
are how to acquire products and services, and they also need to know that
consumers are how to use products and products are how to be treated after the
use. Consumers' spending experience, mode and feeling of disposal old products
can have an impact on the next round of consumers' purchase, in other words, it
can directly influence the long-term exchange relation between enterprises and
consumers. There are many factors that can have an impact on consumer
behavior, and this article will just introduce some main factors (Laura, 2009). The
first one is cultural factor. Culture is the basic factor of desires and behavior of
human.
Different culture can generate different social strata. Due to the diversity of
value, consumption, aesthetics and habits of different social strata, they have
different ways of choosing pattern, quantity, quality, design requirements of
products. Consumers of each stratus have their shops and products of adapting
themselves. The second one is social factor. Social factor refers to related groups,
character and position of family and individual. In purchasing behavior,
consumers often use the most general consumption concept and consumer
behavior to regulate their own consumption behavior, so related groups around
consumers especially their family and good friends have a considerable influence
on the purchasing behavior of consumers.
The third one is personal factor. Purchasing decisions of consumers are
affected by their individual characteristics, such as age, occupation, economic
status, lifestyle and self-concept. The fourth one is psychological factor. The
psychological factor concludes demand and motivation, consciousness, learning
and memory, attitudes. These factors not only affect and in some extent resolve
the decision-making behavior of consumers, but also can has enlarging or
inhibition effect on the external environment and marketing stimulation.

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Statistics on Tea consumption in China
According to introducing of tea industry insiders, tea beverage is the
fastest-drinks in Europe and America in the 1990s, and it is regarded as a
beverage of new era. In Taiwan and Japan, tea beverage has become the first
biggest drink variety, and 95% of beverage enterprises in Taiwan produce tea
beverage. In recent years, the development speed of tea beverage market in
China has exceeded 300%, and tea drinking has become the third drinking after
carbonated drinks and bottled drinks, increasing rapidly. According to tea
consumption in China, readers can find that the development of tea consumption
is China is fast. With the passage of time, the consumption will continue to
become larger.
Form the above form we can find that with the improvement of living
standards of residents and the changes in the concept of consumption in China,
tea drinking has transferred from the former life luxury to daily necessities of life,
and Chinese consumers have more and more tea consumption.

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Impact of Age and Income on Consumer Preference with
Reference to Brand Tea
In this study, factor analysis was carried out in two stages. In stage one; known as
the factor extraction process, objective was to identify how many factors to be
extracted from data. Using principal component analysis, 17 items were extracted
by four factors. Only the factors having latent roots or Eigen value greater than 1
were considered significant' all factors having Eigen value less than 1 were
considered insignificant and were discarded. All the five factors together
accounted 56.79% of the total variance.
In the second stage, all the factors were interpreted and labeled. Items having
factor loading more than 0.4 were included in the interpretation. More detailed
description of the factors is presented in the next section.
Factor 1: Personal & Family influence
The factor measures the size, evaluation, personal importance, shifting i.e. brand
loyalty, choice influence in choosing the loose tea in city. Consumer who scores
high on this factor is very size conscious that they prefer loose tea for its size. The
highest loading item in this factor is “Size”.
It indicates the effects of various demographic variables on consumer preference.
So city's consumer does not have significant impact on personal & family
influence for loose tea preference with respect to this demographic variable Only
income has impact on choice of loose tea preference in city.
Factor 2: Quality Promotion
The factor measures the quality, fame, name, offer and promotion influence in
choosing the loose tea in City. Consumer who scores high on this factor is very
quality conscious that they prefer loose tea for its taste. The highest loading item
in this factor is “Quality”.
It indicates the effects of various demographic variables on consumer preference
in accordance to City. So City's consumer does not have significant impact on

Research on brand loyalty and consumer of tea in pakistan

Research on brand loyalty and consumer of tea in pakistan

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