Lipton Yellow Label's New Tea Concept

“Lipton Yellow Label’s New Tea Concept”
Lipton Yellow Label stands as a brand name in the history of tea industry. It is the
product of Unilever. It is made with one of the best technologies resulting in a high quality
finest tea. It offers various products like Lipton yellow label pack, Lipton green tea, Lipton
green tea lemon etc. Its current ranges of products include black tea leaves, black tea bags
and herbal tea bags.
Lipton Yellow Label always focuses on innovation through development of new

products. Their every new product is made on the basis of contributing positively to the
consumer’s ease and diets. On the same basis, management has decided to produce a
product that not only focuses on easing the preparation of tea by the customers, but also
reflects on their health factors and intake of proper nutrients.
This unique idea is decided to be launched. It will offer the product which include all
tea ingredients i.e. sugar, tea and powdered milk in a single tea bag. Customers are
habituated to prepare tea using all the items separately one by one while preparing tea. This
unique product will include all the necessary items within it together mixed thoroughly. The
goal of this product is to convert consumers from using tea, sugar and milk separately to a
single tea bag containing all of them. It is thereby to assure the customers that the single tea
bag will decrease the preparation time in addition to maintaining the same strength and
taste but with added convenience.
Moreover, this will be available in different ratios of sugar and milk, depending upon
the buyer’s taste and diabetic nature, for example, there will be sucralose instead of sugar
for calorie conscious people or more sugar quantity will also be present for people having
more preference for sweeter taste etc.
Now, in order to judge the success of this idea, a market research need to be
conducted depicting various aspects of consumer behaviour toward this innovated product
idea.
Phase 1: Market Research Planning
 Preparation and Implementation of a plan for primary and

secondary data collection for given idea:
The target market of the research to be conducted is Lahore which is one
of the largest urban areas of Pakistan. Tea is popular among the beverages
consumed in Lahore by people’s age group ranging from 18-60+. It is consumed
at regular basis at home, offices and in all formal and informal gatherings. The
consumers feel fresh and healthy after drinking it.
Now, in order to calculate the selling probability of this new product, facts
and figures need to be gathered through data about tea-drinking customers and
hence analysis is to be made for drawing conclusions.
The collection of data is usually made in two ways as elaborated here

under:
A. Primary Data Collection:

For this Lipton’s new tea concept, primary data will be
collected directly corresponding with the consumers. It can be
done by surveying the respondents through a well-designed
questionnaire (2).
B. Secondary data collection:

For collecting the secondary data, the ways to be employed
will be internal and external means of data collecting such as
market data bank of Lipton Yellow Label, its sales records,
accounting records, periodicals, census reports, and many
online sources such as trade journals, newspapers, magazines
etc. (2).
 Questionnaire (1):
 Description and Justification of survey methodology, design and
sample frame to be used:
The survey designed above i.e. the questionnaire was based on a specific
methodology, design and sample frame as illustrated below:
A. Methodology:
The method of data collection is made by consideration of
various factors. Here, the method chosen was a “web based
questionnaire” (3) because there was more likelihood of
attaining a high response rate due to the following reasons:
 A web based questionnaire is preferred due to its

widespread internet access to large amount of target
population. Internet is an excellent data collection
method since it has greater coverage as compared to
telephonic or meeting surveys.
 The online questionnaire suits well for maintaining the
budget.
 It saves time since responses are acquired within short
period of time.
 It has been shown in various researches that internet
questionnaires show similar results as those conducted
without web access (Berrens et al., 2003). So it is
preferred.
 Online surveys also facilitate in drawing results and
representing them in form of graphs using new
software and technologies.
 The online questionnaires allow the respondents to
attempt the survey without any limitation of time.
 The sample frame are easy to be completed when the
coverage is not limited which is in the case of online
questionnaires.
B. Design:
Following points were considered while designing the

online questionnaire (4) :
 Data collection mode impacts respondents a lot. Online

surveys have a larger impact on how questions are
being read and interpreted. So, while designing the
questionnaire, care was taken to fit only those
questions that were up to the mark.
 Wordings of the questions were formulated in a way
that actually reflected the matter. Technical words,
vague concepts, incomplete or dense sentences were
avoided.
 Questions followed a particular sequence to avoid
confusion and biased results by the respondents.
 Only one of the questions was open-ended, while rest
of them were closed-ended providing answer choices.
 Care was taken that overall opinions questions were
worded in a way that best reflected the thinking and
behaviour of the respondents.
 Question structure was maintained throughout.
 The visual layout was consistently maintained i.e. same
font size, colour and strength was found across all
questions.
 The questionnaire was planned analytically since the
goal is to track the results and draw them graphically
and statistically.
C. Sample frame:
The sampling frame chosen for this web-based

questionnaire is “Systematic Sampling”. It is the selection of every
kth visitor or customer from a sampling frame. For example, as in
our survey, it was required to sample 30-50 respondents from the
sampling frame that might contain total respondents, say 60. So,
we have 30/60= 2. Hence, every 2nd solved questionnaire is
chosen (5).
 Information gathered through secondary data:
Secondary data is collected to generally have an overview of how
Lipton promotes its new products. So, it this new Lipton Tea’s concept is
promoted through proper advertising in newspapers, magazines, websites
and articles then the more will be the consumers aware of this new product
arrival. The required information is gathered through various sources as
follows:
 Newspaper:
In various newspapers, the company has been seen to
promote its brand and products in from of global campaigns.
 Website of business information:

The company alerts its new products arrival and
features in various business articles to promote their latest
production.
 Articles:
Lipton promotes its brand and products in very
attractive ways by giving ads in the form of featured articles.
 Magazines:
Marketing magazines are a best medium in which
Lipton promotes its new products by getting their new
product’s launching campaign published and read by large
number of readers and consumers.
 Official company website:

According to the statistical analysis made by Lipton Tea
organization:
o 1649 cups of Lipton Tea are enjoyed every

second.
o 8245 cups of Lipton Tea are enjoyed every time

you blink.
o 1252 cups of Lipton Tea are drunk every time

your heart beats.
o 52 billion cups of Lipton Tea are drunk each

year.
o 45.75 billion Tea Bags are produced by Lipton
Tea each year.
Above information shows the high consumption of Lipton Tea in our everyday life. If
the new product is promoted and the views of consumers are gathered accordingly, then
better will be the results drawing toward launching this new product in the market.
Phase 2: Market Research Analysis
This involves creating information for decision making using above gathered
primary and secondary data. Various information processing tools such as MS excel are
used in drawing the calculations.
 Representing values using Mean, Mode, Median, Frequency Distribution,

Standard Deviation, Quartile, Percentile and Correlation coefficient along with
their graphs:
For each of the question answered in above conducted questionnaire,

mean, median and modes along with frequency distribution values are illustrated
and calculated as shown below:
Q1. Your gender?
Frequency distribution:
no of respondents
male
female
18
16
14
12
10
8
6
4
2
0
male female
18
16
14
12
10
8
6
4
2
0
male female
Mean = (17+13)/2 = 15
Median = 15 (as above since no of data items is even)
Mode = no mode (since no number is being repeated)
Standard deviation = 2.828
Quartile = value is either < 0 or > 4 (#NUM! error in MS excel)
Percentile = either k < 0 or k > 1(#NUM! error in MS excel)
Correlation coefficient = #DIV/0! (Since percentile value does not exist)

Q2. Age group?
age group
12
10
0
15-30 30-45 45-60 60 above
15-30
30-45
45-60
60 above
1-155
60 above
45-60
30-45
15-30
0 2 4 6 8 10 12
Mean = (1+6+11+10+2)/2 = 15
Median: data set= 1,2,6,10,11
Hence median is 6.
Mode = no mode (since no number is being repeated)
Quartile = q3: 10.5
q2: 6 ; q1: 1.5
Quartiles
12
10
0
min q3 q2 q1 max
Percentile = 10.5(25th percentile), 6(median), 1.5(75th percentile)
75th perc
median
25th per
0 2 4 6 8 10 12
Correlation coefficient = #DIV/0!
Trend line graph:
age group
12
10
1
6
Log. (1)
0
Q3. In which condition you like the most to take the cup of tea?
12
10
0
load of work reading in office after meal routine on mood
load of work
reading
in office
after meal
routine
on mood
on mood
routine
after meal
in office
reading
load of work
0 2 4 6 8 10 12
Mean = (4+6+3+3+10+4)/2 = 15
Median = 15 (as above, since number of data items is even)
Mode = 3 and 4
Quartile = q1: 3, q2: 4, q3: 7
0
min q1 q2 q3 max
Percentile = 25th per: 3, median: 4, 75th per: 7
75th per
25th per
median
median
75th per
25th per
0 2 4 6 8
Trend line graph:
12
10
0
load of work reading in office after meal routine on mood
Q4. Are you using tea as a habit?
18
16
14
12
10
0
no yes
no
yes
yes
no
0 5 10 15 20
Mean = (13+17)/2 = 15
Mode = none
Trend line graph:
20
15
10
0
no yes
Q5. How much cup of tea you take per day?
14
12
10
0
1 cup 2 cups 3 cups 4 cups
1 cup
2 cups
3 cups
4 cups
4 cups
3 cups
2 cups
1 cup
0 2 4 6 8 10 12 14
Mean = (7+9+12+2)/2=15
Mode = none
Quartile = 3.25, 8, 11.25
12
10
0
min q1 q2 q3 max
Percentile = 3.25, 8, 11.25
75th per
median
25th per
0 2 4 6 8 10 12
Correlation coefficient = -0.4
Trend line graph:
14
12
10
8
Series1
6 Log. (Series1)
0
1 cup 2 cups 3 cups 4 cups
Q6. Which of the following type of tea you use the most?
18
16
14
12
10
0
mix tea separate tea
mix tea
separate tea
separate tea
mix tea
0 5 10 15 20
Mean = (17+13)/2 = 15
Mode = none
Trend line graph:
18
16
14
12
10
Series1
8
Linear (Series1)
6
4
2
0
mix tea separate tea
Q7. What kind of tea you use?
18
16
14
12
10
0
light regular strong dodh pati
light
regular
strong
dodh pati
dodh pati
strong
regular
light
0 5 10 15 20
Mean = (17+3+6+4)/2 = 15
Mode = none
Quartile = 3.25,5,14.25
16
14
12
10
0
min q1 q2 q3 max
Percentile = 3.25,5,14.25
75th per
median
25th per
0 2 4 6 8 10 12 14 16
Correlation coefficient = #DIV/0! Error
Trend line graph:
18
16
14
12
10
0
light regular strong dodh pati
Q8. Are you familiar with Lipton Yellow Label tea?
25
20
15
10
0
yes no little bit
yes
no
little bit
little bit
no
yes
0 5 10 15 20 25
Mean = (22+8)/2 = 15
Median= 8
Mode = none
Quartile = 0,8,22
25
20
15
10
0
min q1 q2 q3 max
Percentile = 0,8,22
75th per
median
25th per
0 5 10 15 20 25
Trend line graph:
25
20
15
10
0
yes no little bit
Q9. How is the taste of Lipton Yellow Label tea?
25
20
15
10
0
very good average not good
very good
average
not good
not good
average
very good
0 5 10 15 20 25
Mean = (22+6+2)/2 = 15
Median= 6
Mode = none
Quartile = 2,6,22
25
20
15
10
0
min q1 q2 q3 max
Percentile = 2,6,22
75th per
median
25th per
0 5 10 15 20 25
Trend line graph:
25
20
15
10
0
very good average not good
Q10. You are using Lipton Yellow Label tea because?
30
25
20
15
10
0
tastes good good advertising attractive packing
tastes good
good advertising
attractive packing
attractive packing
good advertising
tastes good
0 5 10 15 20 25 30
Mean = (28+2)/2 = 15
Median= 2
Mode = none
Quartile = 0,2,28
30
25
20
15
10
0
min q1 q2 q3 max
Percentile = 0,2,28
75th per
median
25th per
0 5 10 15 20 25 30
Trend line graph:
30
25
20
15
10
0
tastes good good advertising attractive packing
-5
Q11. Lipton has innovation?
18
16
14
12
10
0
yes no
yes
no
no
yes
0 5 10 15 20
Mean = (17+13)/2 = 15
Median= 15
Mode = none
Trend line graph:
18
16
14
12
10
8
6
4
2
0
yes no
Q12. What attracts you for buying the new package of Lipton?
25
20
15
10
0
quality of taste ease of use cost effectiveness
quality of taste
ease of use
cost effectiveness
cost effectiveness
ease of use
quality of taste
0 5 10 15 20 25
Mean = (6+22+2)/2 = 15
Median= 2
Mode = none
Quartile = 2,6,22
25
20
15
10
0
min q1 q2 q3 max
Percentile = 2,6,22
75th per
median
25th per
0 5 10 15 20 25
Trend line graph:
25
20
15
10
0
quality of taste ease of use cost effectiveness
Q13. If Lipton offers tea, sugar, powdered milk in single tea bag, it will attract
you in what way?
25
20
15
10
0
easy to prepare take less time in good quality
preparation
easy to prepare
take less time in

preparation
good quality
good quality
take less time in preparation
easy to prepare
0 5 10 15 20 25
Mean = (6+22+2)/2 = 15
Median= 2
Mode = none
Quartile = 2,6,22
25
20
15
10
0
min q1 q2 q3 max
Percentile = 2,6,22
75th per
median
25th per
0 5 10 15 20 25
Trend line graph:
25
20
15
10
0
easy to prepare take less time in good quality
preparation
Q14. If Lipton increases this new product price then are you willing to buy it?
16
14
12
10
0
yes no don't know
yes
no
don't know
don't know
no
yes
0 2 4 6 8 10 12 14 16
Mean = (15+6+9)/2 = 15
Median= 9
Mode = none
Quartile = 6,9,15
16
14
12
10
0
min q1 q2 q3 max
Percentile = 6,9,15
75th per
median
25th per
0 5 10 15
Trend line graph:
16
14
12
10
0
yes no don't know
Q15. If price of new product is higher as compared to older tea bags, would you
still prefer to buy it?
18
16
14
12
10
0
yes no don't know
yes
no
don't know
don't know
no
yes
0 5 10 15 20
Mean = (16+5+9)/2 = 15
Median= 9
Mode = none
Quartile = 5,9,16
16
14
12
10
0
min q1 q2 q3 max
Percentile = 5,9,16
75th per
median
25th per
0 5 10 15 20
Trend line graph:
18
16
14
12
10
0
yes no don't know
Q16. Does this new product fulfil your need in much better way?
30
25
20
15
10
0
yes no
yes
no
no
yes
0 5 10 15 20 25 30
Mean = (26+4)/2 = 15
Median= 13
Mode = none
Trend line graph:
30
25
20
15
10
0
yes no
Q17. Does this new product have any negative point?
16
14
12
10
0
yes no don't know
yes
no
don't know
don't know
no
yes
0 2 4 6 8 10 12 14 16
Mean = (15+5+10)/2 = 15
Median= 10
Mode = none
Standard deviation = 5
Quartile = 5, 10, 15
16
14
12
10
0
min q1 q2 q3 max
Percentile = 5, 10, 15
75th per
median
25th per
0 5 10 15
Trend line graph:
16
14
12
10
0
yes no don't know
Q18. If yes, then the negative point is?
25
20
15
10
0
high price mixed ingredients not in nil
required proportion
high price
mixed ingredients not in

required proportion
nil
nil
mixed ingredients not in required

proportion
high price
0 5 10 15 20 25
Mean = (5+5+20)/2 = 15
Median= 5
Mode = 5
Quartile = 5, 5, 20
20
18
16
14
12
10
8
6
4
2
0
min q1 q2 q3 max
Percentile = 5, 5, 20
75th per
median
25th per
0 5 10 15 20
Trend line graph:
25
20
15
10
0
high price mixed ingredients not in nil
required proportion
Q19. Any suggestion?
Since it was an open-ended question, out of 30 respondents, 7 (23%) gave

“no suggestion”, while rest of the 23 (77%) respondents suggested to “not higher
the price of this new single tea bag than the older ones”.
25
20
15
10
0
no suggestion do not higher the price of this new
single tea bag as compared to older
ones
no suggestion
do not higher the price of

this new single tea bag as
compared to older ones
do not higher the price of this new
ones
no suggestion
0 5 10 15 20 25
Mean = (7+23)/2 = 15
Median= 15
Mode = none
Trend line graph:
25
20
15
10
0
no suggestion do not higher the price of this new
ones
 Conclusions:
From the above gathered data through secondary and primary sources
including questionnaire results and information, following conclusions can be
drawn:
 Tea is a beverage that is consumed habitually by people
mostly of age group 30-60.
 Daily 40% of the people consumes it in their routine work or
while studying.
 56% people prefer mixed tea in a regular form. It shows the
concept of new tea bag containing all necessary mixed
ingredients will be liked by the consumers since they prefer it.
 73% people are well familiar with Lipton Yellow Label
products. This means this new product when advertised would
be welcomed and preferred.
 73% people say its taste is good and 93% uses it as a routine
drink because of this very reason.
 56% people agree the Lipton has innovation. This will be
beneficial since our product is based on an innovated idea.
 73% people agree to buy this new product because of its ease
of use which goes in favour of our set goal for this new
product.
 73% people are attracted to this new product since it takes
less time in preparation.
 50% people are willing to buy if the new product has high
price. But this also means that other 50% are either not willing
or don’t know how to respond. This shows its price must not
be that much high that half of the consumers might got
switched to other tea brand like Tapal etc.
 53% people are still willing to buy the new product even
though its price is higher as compared to that of older tea
bags, but nevertheless, the price difference between two must
not be large.
 86% people say that this new product seems to be fulfilling
their need, which achieves our mission of delivering best
product to our customers.
 Half of the respondents say it has no negative point.
 Only 17% says it does have a negative point i.e.
o The price must not be high.
o The mixed ingredients might not be in the required
proportions as desired by the consumers.
 77% of the respondents suggested to not to higher the price of
this new tea bag as compared to the older ones. This if
followed would result in more sales.
 Processing of gathered data through MS excel tool:
In order to process and generate above results, the information processing

tool used was MS EXCEL 2010. The step by step procedure for each
calculation is briefed as here under:
1. Calculation of mean:
Mean is the average and is calculated by summing all the data values and
dividing it by the number of data values. It can also be calculates in MS excel
by using AVERAGE function (6).
2. Calculation of mode:
Mode is the value that occurs most in the data set. If a data set has no value
occurring twice or more, then there will be “no” mode (6).
3. Calculation of median:
Median is the middle value occurring in the data set when it is arranged in
ascending order. If the number of data values is even, then value of median is
equal to that of a mean (6).
4. Calculation of standard deviation:

It is calculated by the in-built statistical function in MS excel i.e. STDEV or
STDEVP (when data set is population).
5. Calculation of frequency distribution:

It was calculated manually by calculating frequency for each number of
occurring data item.
6. Calculation of quartile:
It is calculated by using function QUARTILE.EXC. It requires entering the
number of data items in “array” and setting values of 0,1,2,3,4 for getting
result for minimum quartile, 1st quartile, 2nd quartile(median), 3rd quartile and
maximum quartile respectively (7).
7. Calculation of percentile:
It is calculated using function PERCENTILE.EXC in which the values for 25 th
percentile, median and 75th percentile is calculated (8). These values are
always same as that of median in the following manner:
o 1st quartile = 25th percentile
o 2nd quartile = median
o 3rd quartile = 75th percentile
8. Calculation of correlation coefficient:

It is calculated using function CORREL in which you assign each data set to an
array and then the function CORREL calculates the correlation between the
two data set values.
9. Preparation of graphs:
The graphs for each was calculated in excel spread sheets as follows:
o The graph of each frequency distribution table was plotted through
line graph, pie graphs and bar graphs.
o To forecast future sales, trend lines were added in the line graphs.
o Quartile is plotted using all values of minimum, maximum, Q1, Q2, Q3
shown in a bar graph.
o Percentiles are plotted using values of median, 25th and 75th
percentile shown in a bar graph.
In nut shell, the results show that in order to introduce this new product in market
by converting the older tea bags into a whole new package of a single one, there is need to
maintain the variety of proportions of mixed ingredients available as far as possible.
Moreover, the price strategy should be set up not high comparatively. This if properly
followed, will result in successful conversion of existing customers into availing this new
opportunity. This increased consumption level would result in more demand and thus
higher sales and earning profits.
Works Cited
1. http://freeonlinesurveys.com/s.asp?sid=e6oi9sq7187jzp7157291
2. http://www.ukessays.com/essays/marketing/primary-secondary-research.php
3. http://wiki.answers.com/Q/Factors_considered_before_collecting_data
4. http://www.surveygizmo.com/survey-blog/designing-surveys/
5. http://www.childinfo.org/files/MICS3_Chapter_4_-
_Designing_and_Selecting_the_Sample_060219.pdf
6. http://www.sagepub.com/upm-data/35399_Module5.pdf
7. http://www.itechtalk.com/thread10583.html quartile
8. http://www.itechtalk.com/thread10579.html percentile

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“Lipton Yellow Label’s New Tea Concept”

Lipton Yellow Label always focuses on innovation through development of new

 Preparation and Implementation of a plan for primary and

The collection of data is usually made in two ways as elaborated here

A. Primary Data Collection:

B. Secondary data collection:

 A web based questionnaire is preferred due to its

Following points were considered while designing the

 Data collection mode impacts respondents a lot. Online

The sampling frame chosen for this web-based

 Website of business information:

 Official company website:

o 1649 cups of Lipton Tea are enjoyed every

o 8245 cups of Lipton Tea are enjoyed every time

o 1252 cups of Lipton Tea are drunk every time

o 52 billion cups of Lipton Tea are drunk each

Phase 2: Market Research Analysis

 Representing values using Mean, Mode, Median, Frequency Distribution,

For each of the question answered in above conducted questionnaire,

Q1. Your gender?

Median = 15 (as above since no of data items is even)

Mode = no mode (since no number is being repeated)

Standard deviation = 2.828

Quartile = value is either < 0 or > 4 (#NUM! error in MS excel)

Percentile = either k < 0 or k > 1(#NUM! error in MS excel)

Correlation coefficient = #DIV/0! (Since percentile value does not exist)

Median: data set= 1,2,6,10,11

Mode = no mode (since no number is being repeated)

Standard deviation = 4.53

Quartile = q3: 10.5

q2: 6 ; q1: 1.5

Correlation coefficient = #DIV/0!

Trend line graph:

Median = 15 (as above, since number of data items is even)

Standard deviation = 2.683

Quartile = q1: 3, q2: 4, q3: 7

Correlation coefficient = #DIV/0!

Trend line graph:

Median = 15 (as above, since number of data items is even)

Standard deviation = 2.828

Quartile = value is either < 0 or > 4 (#NUM! error in MS excel)

Percentile = either k < 0 or k > 1(#NUM! error in MS excel)

Correlation coefficient = #DIV/0! (Since percentile value does not exist)

Trend line graph:

Median = 15 (as above, since number of data items is even)

Standard deviation = 4.203

Quartile = 3.25, 8, 11.25

Correlation coefficient = -0.4

Trend line graph:

Median = 15 (as above, since number of data items is even)

Standard deviation = 2.828

Quartile = value is either < 0 or > 4 (#NUM! error in MS excel)

Percentile = either k < 0 or k > 1(#NUM! error in MS excel)

Correlation coefficient = #DIV/0! (Since percentile value does not exist)

Trend line graph:

Median = 15 (as above, since number of data items is even)

Standard deviation = 6.455

Correlation coefficient = #DIV/0! Error

Trend line graph:

Standard deviation = 9.899

Correlation coefficient = #DIV/0!

Trend line graph: