MARKETING RESEARCH

TERM REPORT ON

SUBMITTED BY:

Urooj Khan

Salman Saeed

Irfan Bhatti

Akbar Nagaria

Owais Idrees Khan

SUBMITTED TO: Ms Fareen Razzak

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 ACKNOWLEDGEMENT

We would like to thank Ms. Fareen Razzak for providing us the opportunity to work on
this report. This report has enabled us to apply almost all marketing concepts that were
covered during course and will help us to embrace further learning of the subject.

We would also like to thank Mr.Agha Ali Jaan, (Brand Manager, Danedar, Tapal Tea Pvt
Ltd, Pakistan) and Ms.Hafsa Farooq, (Assistant Brand Manager, Ice tea, Tapal Tea Pvt.
Ltd, Pakistan) for providing us with priceless information required for the making of this
report.

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EXECUTIVE SUMMARY

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
Husbandry 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.

Their motto "never compromise on quality" remains the byword on the lips of all
engaged in producing Tapal Tea that has resulted in customer's brand loyalty and their
unflinching addiction. The testimony of their quality has made them the first tea company
in Pakistan to earn the ISO-9001: 2000 Quality Certification, the symbol of supreme
quality standards.

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

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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.

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PASSION FOR TEA

The world's passion for tea is legendary, and as it became more a drink for the masses,
the commerce of tea became big business.
In Pakistan the annual consumption is about 150 million kilogram, and fluctuates
1kilogram per year; and is the world’s seventh highest consumption. Majority of the
country’s total population lives in rural areas (about 66 percent out of 150 million) where
tea consumption is in majority. It is the most popular and cheapest beverage. And tea is
world's second most popular drink (after water). It's easy to make, affordable and one of
the fastest growing beverages (6.5% over 5 years).

PAKISTAN BECAME A MAJOR TEA IMPORTER.

Pakistan is now the world’s third largest tea importing country. Kenya is the leading
supplier with 57 percent of Pakistan’s import.
The Pakistan’s tea-makers can be classified into:
 The “blended and packed” segment of the market.
 The “loose” tea segment.
Blending, Packaging and distribution are nominated by Unilever, the world’s largest
transactional corporation in the tea industry, and Tapal Limited, a very competitive local
firm. Both are based in the port of Karachi. There are some other minor players. Out of
recent total legal imports of 114,000,000 kilograms, 70,000,000 kilograms went to the
packers, while the rest was imported by independent traders who sell “loose” tea in open
markets.

TEA ADDICTION

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In Pakistan is can be taken as a symbol of relaxation
almost every 10th person is a tea addict and undoubtedly
feels proud of this addiction. Wildly recognized with its
flavours of light yet effective green tea, lemon tea, the
amazingly “sab ki favourite” doodh patti, the occasional
Kashmiri Chai, or the delicacy of herbal tea, we all love
and adore tea.

ABOUT THE COMPANY

Tapal has been well recognized company of Pakistan since 1947. Adam Ali Tapal was
the founder of the Tapal Company. He bought a tea store in Jodia Bazar from a Hindu
who was at then migrating to India .
At that time of establishment, Mr. Adam Ali Tapal stood against the tough competition
and uncertainty (such as change in government setup, quota system, tea not grown here,
import restrictions etc) in the market because he saw an opportunity in the industry.
The shop in Jodia Bazar existed until the 1970 when the third generation of the Tapal
family, Mr. Aftab Tapal, the current CEO joined the company. Aftab Tapal introduced
professional management and unique production ideas to the business. A well trained tea
taster and tea specialist himself, Aftab Tapal introduced new tea concepts and developed
a wide range of tea blends catering specifically to the tastes of people throughout
Pakistan. Fazullah.A.Tapal (founder’s grandson), took over as CEO and initiated tea
distribution to retail outlets around the city for the convenience of the people.

Tapal has made its mark in the market by its very slogan “Laal hai toh Tapal hai”.

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MISSION STATEMENT OF TAPAL

To provide a value added service to our customers with quality, reliable, and world-class
service. Customer satisfaction is our number one priority.

OBJECTIVES

 To transform our competencies into the best advantage for our clients.
 To offer quality services with integrity, expertise and professionalism to enhances
our client's operation.
 To offer personalized services according to the clients need.

STATEMENT OF COMMITMENT
Never Compromise on Quality!
This commitment to quality has resulted in a high level of customer satisfaction and
unflinching brand loyalty. Tapal believes to act locally, but think globally

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TAPAL’S PRODUCTS

1. TAPAL DANEDAR:

Tapal Danedar is pioneer of the Danedar

category in Pakistan. Tapal Danedar remains
a favorite around the country with its grape-
nutty appearance, rich golden color and
strong refreshing taste. In fact its popularity is such that other companies have
launched their own versions of this blend, but Tapal's remains the original and
ultimate Danedar because of its unique color, aroma and taste. Also available in
double chamber tea bags, today Tapal Danedar enjoys the position of the "No.1
Tea Brand" in Pakistan.

MARKET SEGMENTATION
The market for Tapal Danedar is highly
commodity driven and this product is easily accessible available through out
Pakistan. They have divided market into segments and choose working and
middle class.

MARKET TARGETING:

 Tapal danedar is basically targeting urban people.

 Danedar brand has the characteristics to remain intact even after a long
time. So it targets customers who want to fresh for longer time.
 Tapal target the middle as well as lower class because they think middle class is
most important class
 It is made to target customers who respond towards light and soft taste
 The target audience will be primarily working class starting from the age
of 20 to round about 55 years of age.

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  It is targeting
Density Urban
strong tea Region All over Pakistan
drinker. Income Under 15000 - 30,000 RS
Lifestyle Believers achievers and strivers
Social class Middle class, Working class
Taste Light
preference
Age 10 and above

MARKET POSITIONING AND DIFFERENTIATION:

 Product:
o Color, Aroma and Taste
o They have introduced 3 trade mark soft pack variations, 3 enveloped pack
sachets, a high utility jar, a pouch and the ground-breaking convenient
teabags.

 Price: Company is offering medium range price so that most no of people can easily
afford it

 Promotion:
o Print campaign
o Advertisements
o Focusing on har lamhe ki chai
o Started a show “chai ke lamhaat laaye laakhon ke inamaat” in order to give
benefits to customers it was launched at ARY DIGITAL,ATV,APNA etc

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 2. TAPAL Family Mixture:

A unique combination of high-grown Kenya leaf and

dust tea, Tapal Family Mixture is the pride of Tapal.
Developed in 1947, it created a completely new
category in the tea market. It gives a refreshing aroma
of leaf and the strong taste of dust- together in one
cup. It is the blend that started the Tapal success story
and many other companies followed Tapal in
introducing similar blends.

MARKET SEGMENTATION:

Tapal Family Mixture is a blend of leaf tea and dust which give both strength and aroma
to strong tea lovers. Tapal have chosen segment of traditional family and for upper
middle class .

MARKET TARGETING:

 Tapal famil mixture is again targeting urban

Density Urban
people. Region All over Pakistan
Income Rs 25000 and above
 It is targeting joint family system which we Lifestyle Traditional (family)
Social class Upper middle class
can still found in Pakistan
Taste Strong
 Tapal attract the upper middle class buyer.
preference
 It is made to target customers who respond
towards strong and pleasant taste.
 It is made for whole family.
 It is targeting strong tea drinker.

Market Positioning And Differentiation:

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Tapal family mixture sets position in minds of consumer as it is for whole family, for
every member of family.

Tapal captures consumers in following ways

 Product:
o Color
o Aroma
o strong Taste of dust
o They have introduced tea bags and jars for house hold
 Price: Company is offering medium range price so that most no of people can
easily afford it
 Place: company has made it easily available all over including big stores, small
stores and very small shops like khokas
 Promotion:
o TV show launched name ”KHUSHI KE LAMHAAT” staring MANI and
TEHREEM .Motive was to give prizes to customers and earn their loyality
o SMS campaign
o Launched song”Laage na nazar

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SHADES OF GREEN:

Tapal Shades of Green is an aromatic combination of the

finest carefully selected tea leaves and the tantalizing
freshness of natural Jasmine, Elaichi and Lemon.

Jasmine
Infused with Jasmine
Density Urban
flowers, Jasmine Green Region Across Pakistan
Income Rs. 25,000 & above
Tea opens a new
Lifestyle Thinkers achievers &Health conscious people
window to your mind. Social Lower uppers and uppers
Its vibrant essence class
breathes new life into
your sense with a distinct soothing effect. Jasmine Green Tea is a winning combination
of alluring fragrance and health.

Elaichi
The earthy flavor of Elaichi Green Tea has a pulsating nature that lifts your body to a
new level of clarity giving you more revitalization.

Lemon
Lemon Green Tea with its rich taste regenerates your
soul. It is your perfect soul mate to indulge in a
rejuvenating experience of its refreshing essence

Market Segmentation:

Tapal has segmented on

the basis of health

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 conscious consumers who are very health conscious and
are not ready to compromise their healthy diet patterns
under

any circumstances whatsoever. They want tea with a strong

taste and smell, there is simply no way that they want to
give up on the typical, cultural taste of their tea. So Tapal
has designed product for health conscious people.

Market Targeting:

 Tapal family mixture is again targeting urban people.

 It is made to target customers who are health conscious
 It is made for health benefits.
 As it is made from jasmine ,lemon and elaichi which are harmless for human
beings

Market Positioning And Differentiation:

By offering health benefits, it has maintained strong position in the minds of consumer.
 Product:
o Color
o Aroma
o It activate your senses
o Suitable for your health
 Price: Company is offering medium range price so that most no of people can
easily afford it
 Place: Company is trying to promote it all over Pakistan
 Promotion:
o Billboards and advertisements were launched

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CHENAK:
An economy dust embracing high grown flavor teas
proportionally blended with medium grown Kenyan
golden color teas to give an all round cup at a reasonably
lower price Chenak Dust infuses quickly and gives the
consumer a strong bright color cup within a very short
time.
Chenak Dust is popular with those ‘tea lovers’ who take
several cups of tea due to its friendly price.

Market Segmentation and

Targeting:

 Tapal have segmented the rural Sindh into upper interior Sindh and lower interior
Sindh. Tapal Chenak is targeted to the lower interior Sindh, for the middle lower
and lower end segments of the market that prefers strong tea, but cannot afford a
high quality tea.
 It is made to target local people of Sindh
 It is for those people who have low
Density Rural
earnings.
Region Interior upper Sind
Income 15000 RS and less
Market Positioning And Lifestyle Traditional people who
Differentiation: prefer light taste
Social class Lower middle class
Company sets low price position in the Taste Light

market. preference
Age 7 and above
 Product:
o Color
o Aroma
o Light Taste
 Price: Low price is offered to fulfill demands of lower class people
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 Place: Company has made it available every where in Sindh as well as big cities.
 Promotion:
Issued Om shanty om calendar
Launched a show “dar dar par inam”

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TEZDUM:
Tapal earned a unique distinction in 2003 as it became
the first tea company to introduce hassle-free, extra
strong round teabags in Pakistan. With no strings
attached, these teabags are easy to use and their shape
guarantees an ideal infusion of taste and aroma for a
refreshing, strong cup of tea.  With the tagline, “Lage
Thaa Kar Ke!” Tapal Tezdum has hit home with the
people who like strong tea

Market Segmentation:

Density Rural and metropolitian

Region Punjab and Khyber pakhtoon khwah
Income 15000 to 25000 Rs
Lifestyle people who prefer strong taste
Social class Middle class
Taste preference Strong

Market Targeting:
 People who love to drink strong tea
 It is targeted people who has rular background
 It is made to hit those people who belive in
Quality

Market Positioning And Differentiation:

Tezdum is considered as strong tea which gives you
strength to cope with your problems
 Product:
o Color
o Aroma
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 o Strong taste
 Price: They have launched 125 gm packet but strong contents so u use little
amount with better results

 Place:
o Made available at door step
 Promotion:
o Launched advertisement about it strong taste

MEZBAAN DUST
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Tapal Mezban Dust has an attractive leaf appearance, which is neat, black and grainy. It
is the finest quality dust blend which is carefully selected for its quick liquoring
characteristics.
Only high grown Kenyan teas are used for this blend due to their high concentration of
flavor and strength.  Mezban Dust has a smooth, thick and full cup with an irresistible
aroma making it a perfect cup at any time of the day.

Market Segmentation:

Density Rural
Region Interior upper sindh
Income Under 10000
Lifestyle Traditional people who prefer strong taste
Social class Lower middle class
Taste preference Strong

Market Targeting:

Tapal have segmented the rural Sindh into upper interior Sindh and lower interior Sindh.
It has targeted the upper rural market of Sindh by taking out a product Mezban Premier.
It is mainly targeted towards old traditional people who prefer strong tea

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Market Positioning And Differentiation:

The positioning of the brand has been strategically achieved to symbolize the bonds and
relationships that underscore the human equation for the people of Sindh along with
celebrating their rich heritage and culture.
 Product:
o Color
o Aroma
o Strong taste
 Place:
o Door to door selling
 Promotion:
o Mezbaan trade dhamaka :trader were provided rewards
o Announced customer promotion titled rishton ka safar

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ICE TEA:

The invention of ice tea is generally

believed to have occurred in America
in 1904, although some evidence has
been presented that it may have been
drunk in the South well before that.
Like many great inventions, ice tea
was created completely by accident.

Market Segmentation:

Density Urban
Region Across Pakistan
Income 35000 and above
Lifestyle Inovaters thinkers and experiencers
Social class Lower upper class and upper class
Taste bitter
preference
Age 18-40 years

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Market Positioning And Differentiation:

 Price :
o The introductory price of ice tea is Rs 30
and thus it is not very expensive
 Place:
o They have not done efforts to make
available all over country but if they try
to promote it can easily get available to
every where because Tapal network is
world wide.

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INTELLECOVERAGE

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 PRODUCT LIFE CYCLE

Internal Factors Strengths Weaknesses

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 Experienced, broad base of Large size may lead to
Management
interests and knowledge conflicting interests

So much product lines but

Differentiated, Variation in
Product Line still not able to knock out
products
loose tea.

May lose focus, may not be

Marketing Diverse, and local awareness
segmented enough

Possible conflicts due to so

Very experienced, high
Personnel many people, possible
knowledge
trouble staying focused

High expenses, may have

High sales revenue, high sale
Finance trouble balancing cash-flows
growth, large capital base
of such a large operation

Sometimes they conduct

Continuous efforts to
Research & research but the advantage is
research trends an reinforce
Development taken over by small
creativity
competitors.

External Factors Opportunities Threats

Illiterate people go for loose

Consumer/Social Increase in the population tea which is substandard as
well

Distinctive name, product and Intense competition can pay

Competitive packaging in with regards to so they have to keep eyes
its markets open

Maintenance of proper
Competitors are global
website which subscribes
leaders so they have more
Technological and provides information
technology as compared to
regarding long production
Tapal
line.

Consumer income is high for Very elastic demand, almost

Economic
the danedar class pure competition

DISTRIBUTION NETWORK
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Distributors:

Tapal deals only with distributors on contract basis with no other intermediaries involved.
They do not extend credits to their primary customers and all their sales are mainly cash
based.
The contract comprises of a specification of a complete volume of the market, Tapal’s
share in the market, the profit margin of the distributor, the sales that will be made by the
distributor, as well as the complete route plan of the distribution network.
Tapal chooses their distributors after analyzing their complete financial background and
Public Relations. They provide the distributors with a detailed description of the
distribution network; all the costs and expenses involved and when the distributor agrees
the contract is signed. This contract involves the condition that the distributor has to be
brand loyal, pro-active and cannot deal with other tea companies otherwise the contract
will be terminated. The contract includes a clause that describes its termination process.
Either of the two parties: Tapal and the distributor, can terminate the contract on one
month basis.

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 Company

Distributor

Whole sellers Retailers

Universities Restaurants/ Institutions Offices House holds

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BCG MATRIX of TAPAL’S PRODUCTS

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COMPETITORS

Tapal’s competitors include

•   Lipton
•   Tetley
•   Supreme
•   Unbranded tea suppliers

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TEA MARKET SHARE

TEA MARKET SH

Tapal has 46% share in tea market , while lipton shares 23% ,brooke bond and
Tetley has 10 % share .

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DISTINCTIVE CAPABILITIES

Distinctive capability varies according to the

products as it goes with the tea industry

ORGANIZATIONAL PROCESSES

Tapal danedar tea has very effective research and

development through which they are having very
innovative brands with production efficiency.

SKILLS AND ACCUMULATED KNOWLEDGE

Tapal danedar has developed impressive skills in operating its business model at very
high quality accumulated knowledge has guided management improving business design
overtime

COORDINATION OF ACTIVITIES

Coordination of activities among different departments is the essence of tapal danedar.

Research and development supports other departments to have controlled and timely
production.

ASSETS

People inside the organization and Tapal itself brand names are assets of the company.

TAPAL’S RESEARCH AND DEVELOPMENT EFFORTS

Aftab F. Tapal is a well-trained and highly experienced tea taster of the country and is
recognized as a qualified tea specialist worldwide. Tapal's tea managers have been
trained at home and abroad in this very rigorous and specialized discipline, and have
frequently travelled to leading tea-producing countries searching for better teas.

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UNIQUE SELLING PREPOSITION

The main reason behind tapal’s success is that it has

localized its taste. It manufactures its product according
to the taste and requirements of the market it is catering.
Another 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.

MARKETING MIX

PRODUCT
Tapal has a variety of brands each catering to different market segments. After Tapal’s
unique Family Mixture became Karachi’s largest selling brand, the company was
encouraged to innovate further. As a result an entirely new category brand called Danedar
was created and launched. Tapal Danedar became the country’s largest selling tea brand
with a loyal following, which shows that Tapal has been successful in creating a strong
Brand Image amongst its consumers.

PRICE
Tapal people never wanted to compromise on quality so they adopted value based
pricing. As Tapal specifically catering to different segments of the market so its prices
are based on its effective value to customers relative to other products. Also the prices are
different for different SKU’s.

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PLACE
Now Tapal has a distribution network spread across Pakistan, from Karachi to Khyber
with over 400 distributors. Extensive training programs are provided for the devoted sales
personnel. The popularity of its fine brands is unabated, making it the No 1 national tea
company in Pakistan.

Tapal caters to its customers by providing Tapal Danedar and Family Mixtures to more
than 140,000 outlets in Pakistan, which include superstores, department stores, general
stores, medical stores, paan walas, grocery stores, merchants, etc. Grocery stores and
merchants together provide 80% volume of the tea sales.

PROMOTION
•   Electronic Media
Initially, the company relied heavily upon print media but this trend is changing now
because of the in customer’s life style. Right now, company is doing intensive advertising
through networks. In their advertisement they hire the services of renowned celebrities.

•   Tapal and Music

With the view that the younger generation will be Tapal's future customers, Tapal is
actively supporting the fast developing music industry in Pakistan. It has sponsored the
leading singers in Pakistan and actively participates in music concerts.

•   Sales Promotion Strategies

The company is running different sales promotional schemes at different times of the
year depending on the sales of the company.

Tapal’s brand is backed by planed strategy implementation and followed up with

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effective communication its advertising and promotion is touching all aspects of media
and market opportunities.

PROMOTIONAL MIX

Communication of the value created by the company is very important; this stage in our
view is the trickiest stage of the entire value creation process. The entire effort of creating
the value will go down the drain if the communication is not done properly. There are
cases when a company fails to communicate the value to the selected target customers or
even worse when the target customers get the wrong message. There are many ways to
communicate the value created; Tapal has used the following tools and techniques to
communicate the value they have created for their target customers.

Advertising
As far as Advertising is concerned, the company has shifted away from television
advertising to “MASS ADVERTISING”. The basic reason for the shift is that the
organization realizes that television advertising is not the same as it used to be around 12-
13 years ago. With a wide range of television channels available it is very difficult to
convince the viewer to not to change his/her channel. But this does not means that they
do not indulge in television advertising at all. The new brand “Tapal Mezban Dust” is
targeted for the customers of interior Sindh. This brand extension needs both
TV as well as mass marketing as it is struggling with in the awareness stage. The TV
adds show the culture of Sindh and tries to correlate the sindhi heritage of hospitality
with the image of the brand. Ads are shown on KTN as it is believed that sindhi viewers
do not change the channel during commercial breaks as it is the only sindhi channel.
Mass Advertising in the form of billboards are the most common form of advertising.
The expenditure ratio of mass adverting to television advertising is 1.5 to 1. Big
billboards with high color resolution for ‘Gulbahar’ (their new green tea) are good at
tempting the customer to try the crystal clear green tea. The portrayal of men wearing
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formal suits and having tea at restaurants has persuaded
people of the corporate sector to try the slightly expensive
green tea.
Advertising on the new Fm radio channels like City Radio or
FM 107, FM 96 is also extensively done for the young urban
crowd for family mixture.

Public Relations
As far as publications such as catalogues and brochures are
concerned the company does not have any such publications.
They have not yet focused on the possibility of issuing any
sort of publications for improving upon public relations.

Personal Selling
The company has a B2B (business to business) approach as far as personal selling is
concerned. Sales rep visit hotels like Marriott and Sheraton to offer bulk amounts at a
discount rate. Through this process they are able to sell more and this serves as an easy
method for further communication of the value which was promised primarily in ads and
billboards. Face to face communication of value is much more effective than advertising
as immediate feedback can be received which helps in ameliorating the communication
process.

Direct Marketing
Again no form of this communication is taking place at a formal level. The company does
not have a separate department. The only form of direct marketing is done by the brand
managers who readily receive any complaints and comments about their brand through
emails but do not respond to those emails. They only look after certain complaints which
have been reported consistently.

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Sales Promotion
Sales are promoted by encouraging the market segments
through free sampling. The target segments are given free
samples of the tea brand which is targeted for them. Free
sampling of such a brand (Tez Dam) was carried out for
almost 2 weeks. After 2 weeks a lot of students bought the
product although the product was no more for free and had
no market before the free sampling was done.

Sales Force
Tapal at present has hard any notable sales force. When
asked why? The company manager responded that since Tapal makes tea. Tea is a
convenience product, such products are widely available, and customers have frequent
purchase with little shopping effort. Such products have little customer involvement;
hence a well equipped sales force is not essentially required. According to the manager of
Tapal, making sure that the product is available all the time is more important.

ACHIEVEMENTS OF TAPAL:

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• The first to introduce soft packs in the
country.
• The first tea company to introduce metal-free
tea bags.
• The first to develop an entirely new blend and category-Tapal Family Mixture (the
mixture of leaf & dust).
• The first to invent the highly successful brand Danedar Leaf Blend.
• The first to market Kenya teas in Pakistan.
• The first tea company to be awarded the ISO 9001/2000 Quality Certification

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TAPAL TEA (PVT.) LTD. HAS MADE YET
ANOTHER MARK!

Philip Kotler’s latest book “Marketing Management; A

South Asian Perspective”, contains a detailed case
study of Tapal Danedar and its proud tale of success.

Tapal Tea of Pakistan is a good example of how a local

company comes out of the shadow of a giant
multinational and becomes a challenger in the market.
(Taken from: Kotler “Marketing Management”,13th Edition-A South Asian Perspective)

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