TAPAL ICE TEA RE-LAUNCH

Principles of Marketing

ACKNOWLEDGMENT

All the thanks to ALLAH, the compassionate, who blessed us with the power &
abilities and remained, contended on all complexities found during the
completion of this report.

We are thankful to our respected teacher Mr. Khurram Nasarullah Khan who
equipped us this creative chance to avail a practical understanding and delivered
his full support and guidance in the completion of this report.

Furthermore we would also like to admit with much gratitude Miss. Arfa Khatoon
(Marketing Manager) and Mr. Irfan Aslam (BTL Manager) of Tapal Tea who gave
us their precious time to brief us upon the subject we are preparing report for.

Last but not least we are thankful to our parents whose deepest devotions and
obligation have always been strength and a great source of motivation to us. It
could be difficult for us to complete our report without their shadow of love.

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EXECUTIVE SUMMARY
This project report is part of our MBA course “Principles of Marketing”. The
purpose of this report was to re-launch any failure product by implementing the
marketing strategies that we have studied in our course.

To prepare this report we conducted analysis that how a product is re-launched.

What are the challenges faced by an organization when re-launching their failure
product. As we have selected TAPAL Ice Tea so we met their representatives to
find out what were the reason behind the failure of TAPAL Ice Tea.

As a result we have found that TAPAL Ice Tea failed due to lack of awareness
among the people. Its packaging was not user friendly and prices were also high
moreover it wasn’t available in market everywhere.

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INTRODUCTION

ABOUT THE BUSINESS FIELD:

Industry: FMCG (Fast Moving Consumer Goods)

FMCG companies, like Tapal, EBM, Engro Foods and others generally manufacture
and dispense products that are usually bought by consumers regularly.

FMCG (Fast Moving Consumer Goods) are the products that are used on daily
basis with fairly high sales volume and low price, such as food items, soaps, skin
care product and soft drinks etc. They are normally sold at little margins but very
high capacities, with high revenue of product.

FMCG Market Size in Pakistan: In Pakistan FMCG market is growing at a rapid

pace, every single year it has been rising with a double digit ratio. In 2016, FMCG
was as large as approximately Rs.450 Billion market. Though yearly progress
differs from generic to generic but still it is increasing with an average of 15% over
the year.

BENEFITS OF FMCG’s:

Collective Profits: The basic advantage of FMCG is the collective profit they
deliver. FMCG have low profit margins, which mean that a slight proportion of
each entity sale represents profit. But due to the very enormous volume of sell
those small profits enhance and form a substantial amount of turnover.

Cross Marketing Opportunities: When customers purchase numerous items on

each visit usually retailers thrive. FMCGs offer opportunities for cross marketing,
which happens when a retailer or vendor place two products from diverse classes
close to one another in a tactical arrangement. For example, you go to a toy shop
and buy a toy which runs with batteries, but that toy doesn’t fall into the category
of FMCG. Shopkeeper has also arranged a shelf of batteries in his shop (Which are
FMCG) this strategic move of placing a battery shelf in his shop will offer him an
opportunity to increase sales and receive profit on two articles because when a

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customer will purchase that toy he/she will definitely need those batteries to
operate, and that purchase of battery will increase the profit margin of
shopkeeper.

Increasing Rate of Urbanization: Due to the increasing rate of urbanization

FMCG’s are expected to see major growth in the coming years.

CHALLENGES OF FMCG’s:
Effective Supply Chain Management: Effective supply chain management is the
biggest challenge face by FMCG’s i.e. empty shelves and non-availability of
products can cause serious damage to their image.
Declining Value of Currency: The declining value of rupee against the other
currencies may reduce margins of many FMCG companies who imports raw
material.

High Advertising Cost: Advertising is the core aspect of FMCG business. It is

necessary for FMCG’s to advertise their products more frequently in order to keep
their product’s image alive in the minds of customer as there are various
substitutes available in the market, but due to the very high advertising cost there
is a possibility that their profit margin may drop.

COMPANY INTRODUCTION:

The extraordinary success of TAPAL is the combined hard work of three energetic
peers of the Tapal Family. TAPAL started out as a family business in 1947 under
the delicate supervision of its founder, Mr. Adam Ali Tapal.

TAPAL progressed to success by announcing different tea brands to ensemble

every taste and pocket sold from its retail outlet in Jodia Bazar, Karachi. The
excellence of Tapal tea shortly became renowned and people from all over the
Karachi started lining up at the outlet for buying tea.

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Nowadays Tapal Tea runs under the supervision of originator's grandson, Aftab F.
Tapal. Mr. Aftab presented innovative tea concepts and established an extensive
series of tea mixtures providing clearly to the tastes of people all over Pakistan.
This broad-minded attitude gave rise to the foundation of quality laid by his
family.

Currently TAPAL has developed the largest, 100% Pakistani retained Tea Company
in the country. It has contemporary tea mixing and wrapping factories,
warehouses furnished with high-tech equipment and a group of extremely
energetic experts led by Aftab Tapal.

TAPAL’S PHILOSPHY:

“To act locally, but think globally!”

MISSION:

TAPAL mission is to satisfy their stakeholders and be a standard of excellence,

originality and moral values. Achieve leadership in all types of their core business
and expand in regions which complement the core business. TAPAL wants to excel
their selves not only in providing finest quality of products but also act as good
corporate citizen. They manage to attain this brilliance by employing and evolving
extraordinary quality individuals, providing them with noble working conditions
and attractive remunerations, opportunities for progress and high degree of
employment security.

VISSION:

TAPAL’s vision is to deliver quality and value to their customers; their goal is
always to offer world class facility to their customers, provide worth to their
products and make TAPAL a great place to work for their employees. Their target
is to have a standing for pioneering philosophy in the areas that matter to their
customers. TAPAL wants to develop as an international trademark, to be an
inventive, marketing and research focused company.

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PRODUCT:

Brand Name: “Tapal Ice Tea”

Iced Tea AKA Ice Tea is a soft drink used in summers; it can also be served as an
alternative to carbonated drink. This drink is enriched with vitamin C and vitamin
D. Ice Tea provides immediate refreshment joint with the health preserving
properties of tea. Rich in antioxidants and vitamin C, it is non-carbonated, has no
additives and is low in sugar as well. It’s a vigorous and fashionable choice, for
both the young and the young at heart.

Reason of Failure:

At the launch of ice tea TAPAL failed to create its good image in the mind of
customers due to its taste. Prices were also high as compared to the other
carbonated drinks available in the market, due to these factors sale of TAPAL “Ice
Tea” reduced.

Some other reasons of failure

1. Lack of awareness about the product and fade positioning.

2. Strong market of juices and carbonated drinks.
3. 4P’s and 4C’s analysis wasn’t well communicated.
4. Availability and visibility issues.
5. Un-Highlighted USP.
6. Advertisement was not proper to create the awareness regarding Ice tea.

Expected value and benefits:

People today specially youth are more conscious about their health and body
image and prefer more healthy foods and beverages. A research shows that
demand for healthy beverages has increased over the period of time and it has
been increasing at a tremendous pace. TAPAL “Ice tea” will provide instant re-
freshness during the hot summers along with the health preserving properties of
tea. It will be launched in 3 different flavors of lemon, lime and peach. TAPAL “Ice
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Tea” will satisfy your thirst with an energizing burst of lemon, lime and peach.
TAPAL Ice Tea is made from real tea blends which combines the goodness of Tea
antioxidants with no additives; no non-natural colors and only 16% sugar which is
much less than most regular soft drinks and a perfect substitute for health and
diet conscious people.

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SITUATION ANALYSIS

SWOT ANALYSIS OF COMPANY:

1. Strength:

Good Distribution Network: Although as the TAPAL industries has well equipped
efficient and vast area of market covering distribution and serving efficient team
and distributors all over the Country except the “CITY OF LIGHTS” KARACHI.
TAPAL industries are working hard on to achieving and capturing the stakes in the
KARACHI CITY although. But TAPAL is the fast growing national brand and
becoming the international brand. As far as the market competitors is concerned
there is only one brand LIPTON that is the obstacle to become the number one in
PAKISTAN.TAPAL’S all product is easily available at every part of Country at
economical prices that are the key factor that has more consumable tea in
Pakistan.

Adequate Financial Resources: As far as the managing and marketing a product

(TAPAL ICE TEA) resources are required to market and to concerned the company
(TAPAL) has to allocate the optimum amount of about Rupees 50 Million initially
to promote the product and to capture the market TAPAL ICE TEA could be the
substitutes to the soft drinks that are very unhealthy to the consumer.

Good Organizational Structure: TAPAL comprises one of the most competent

team in Pakistan .The philosophy of TAPAL is to think locally act globally and
company is working on it .Having well educated and well experienced personal in
TAPAL make the leader in Tea industry locally other than Unilever

Research & Development: The department of Research & development

continuously working on the development and enhancing the products as well as
looking to launch and re launch those products that are healthy to the consumers

Skilled & Trained Staff: As well-known that TAPAL is very keen to keep their
organizational force well skilled and having latest knowledge regarding to their
aspects for bring about this aim TAPAL conducts periodically workshops seminars
and knowledge base experiences to keep their staff polished and business aware

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2. Weaknesses:

Nature of the Product: TAPAL ICE TEA is the product that is still in the stage of
struggling to

Packaging: Packaging is Not User Friendly.

3. Opportunities:

 Enter in to new market segments.

 Increase new ways of using ghee.
 Can attract health conscious people.
 Direct the oil users towards consumption of ghee by eliminating
misconception.

4. Threats:

 Increase in competitors
 Rise in Substitutes
 Increase in weigh conscious people.

SWOT ANALYSIS OF PRODUCT:

1. Strengths:

 Less in amount of sugar and antioxidants.

 Healthier substitute of soft drinks, juices and other carbonated drinks.
 Made with natural ingredients.

2. Weakness: Tapal`s competitors were in the market before TAPAL came into
being but TAPAL is capable to increase its market share. In revenue generation
TAPAL is second but as the market share increases TAPAL would stand top.
TAPAL’s initial focus was on Pakistani market now it is planning to export its
product

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3. Opportunities: As Lipton ice Tea is the only competitor of TAPAL Ice Tea and it
is available only in selected outlets so it is a great opportunity for TAPAL to
aggressively advertise their product and make it available in every part of the
country and captures the share of Lipton Ice Tea.

4. Threats: The greatest threat to TAPAL is their local competitors that are why it
is imperative to keep a close look on their activities. Competitor’s prices,
discounted offers and attractive prices are also to be taken into proper
consideration.

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MARKET SUMMARY
TOTAL MARKET SEGMENTATION:
Demographics:

Age 16-30 Years

Income 30,000 +

Psychographics:

Social Class Middle, Upper Middle, Elites

Behavioral:

Occasion Regular use and special occasions

Benefits Taste, Healthier, Economy

User Status Heavy and Medium Users

Loyalty Status Medium

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COMPETITORS

DIRECT COMPETITORS:

 The only direct competitor of TAPAL Ice Tea right now is Lipton Ice Tea which is
only available in limited outlets.

INDIRECT COMPETITORS:

 liquid carbonated drinks such as (7Up, Pepsi, Coca-Cola, Sprite, Dew)

 Sachet drinks like (Tang, Limo Pani, Thanda Orange)
 Juices (Slice, Nestle Fruita Vitals, Shezan and etc.)

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

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

MARKETING MIX:

1. PRODUCT

Tapal Ice Tea: Nowadays culture of super market has changed. Compared to five
years ago consumers, especially the youth has plenty of choices in front of them.
Gradually they are becoming a massive market on their own.

Brand Name: Tapal Ice Tea

Quality: High
Features: Less in amount of sugar and antioxidants.
Packaging: Attractive and user friendly.
Sizes: 25 gm. Sachet, 320 ml. Can and 200 ml. Pet Bottle

2. PRICE

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

Pricing structure will be as follows.

PRODUCT PRICE

25 gm. Powder sachet Rs.15/-

200 ml. pet bottle Rs.20/-

320 ml. tin can Rs.30/-

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3. PLACEMENT

Manufacturer Distribution Reatiler Consumer

The channel of distribution will exactly be the same as shown in the above
diagram as the finished goods will be supplied to distributors by the manufacturer
after that goods will move to retailers and finally it will reach consumers.

4. PROMOTION

Methods of Promotion:

 Advertising.
 Sales promotion.
 Mobile marketing

Promotion Objectives:

 Creating awareness in the society regarding Ice Tea.

 To target the direct and in-direct competitors and try to capture their market
share up to some extent.
 To distinguish our product from the competitors.

ADVERTISING:

 Selected Advertisement Media

 TV
 News paper
 Outdoor advertisement
 Bill board

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

News Channel:

Different news channels at khabar Nama time, 9:04. And it would be a continuous
pattern; 1st 2 weeks, and then would pulsing; once a month followed by every 1st
week of every month continuously.

News Papers:

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

Bill Boards:

Following locations are selected for bill boards

DHA: At DHA following locations are selected Shon chowrangi surroundings and
Punjab chowrangi towards Ashiyana.

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

NORTH NAZIMABAD: Board office towards Hyderi and placing periodically at

LUCKY ONE and SAIMA MALLS.

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

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

Outdoor Advertising:

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

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SALES PROMOTION:

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

MOBILE MARKETING:

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

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FINANCIAL PLANNING

ESTIMATED COST FOR LAUNCHING (ASSUMED)

Estimated Cost for Launching is assumed to be Rs.200 Million

We will launch the TAPAL Ice Tea under the umbrella of TAPAL so all the
investment will be borne by TAPAL.

PROMOTIONAL BUDGET
Domain COST
Bill Board 10000000
TV Promotion 25000000
Radio Promotion 2500000
Magazine (Full Page A4 and News Paper) 9500000
Other Activities 3000000
Total 500,00,000

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PROJECT DETAILS

Major Responsibilities:

GROUP MAMBERS RESPONSIBILITIES ASSIGNED STATUS OF COMPLETION

Designing the Cover Page

Prepare Table of Contents
Write Acknowledgment
M. Musab Ahmed Introduction
Financial Planning
Conclusion
Report Formatting and Compiling
Situation Analysis
Asad Mustafa Market Summary
Competitors
Marketing Strategies
Muhammad Muslim Marketing Goals and Objectives
Conclusion
Writing Executive Summary
Printing of Report
Fahad Shafique
Recommendations
Submission of Report

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CONCLUSION

TAPAL should lunch heavy advertising campaigns for consumer awareness by

focusing on ATL, BTL and TTL advertising activities in order to promote the Ice
Tea. It is the best and simplest technique to introduce the people with the
product and create awareness among them regarding your product.

Further we conclude that,

1. Once any company desires to enter in a very new market and extend its
product portfolio, it should consider the society, climate, trends and culture
which a society has.
2. Organization should manufacture their merchandises in step with the
requirements, desires and demands of the consumers of the society
3. The marketing strategy should be aligned with the mission statement of the
organization and strategy should be executed on time.
4. Introducing a fresh product in a market is very challenging when market is
dynamic and environment is tentative. To capture the market share word of
mouth marketing and image building is extremely necessary.

Recommendations & Future Steps:

1. It is necessary that TAPAL must reduce the prices for the improvement of sales
in lower class people.
2. Company ought to launch the product with scheme and consumer promotion.
3. Company should offer incentives to supplier and sales staff.
4. Company should relocate ice tea by targeting the soft drinks just like Coca-Cola
is doing with tea.
5. Company should represent ice tea as a substitute of soft drink.
6. Company ought to demonstrate that ice tea is healthy drink and it is
appropriate for diet conscious people because it has low calories and no
effervescent gas.

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7. Company ought to do a lot of personal selling by visiting colleges, malls and
different areas for creating awareness in the people about taste, quality and
benefits of ice tea.
8. Company should acquire the services highly qualified marketers for the sake of
increment in sale.

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