“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.

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.
 Questionnaire:
 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” 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:

 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.
 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

 Preparation and Implementation of a plan for primary and

secondary data collection for given idea:
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.

1. Representing values using Mean, Mode, Median, Frequency Distribution,

Standard Deviation, Quartile, Percentile and Correlation coefficient:

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:

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)

 no of respondents

male
female

18
16
14
12
10
8
6
4
2
0
male female

18

16

14

12

10

0
male female
Q2. Age group?

Frequency distribution:

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)

Standard deviation = 4.53

Quartile = 1.5

Percentile = 6

Correlation coefficient = #DIV/0!

1.2

0.8

0.6
Series1

0.4

0.2

0
11-Jan
 11-Jan

11-Jan
Series1

0 0.2 0.4 0.6 0.8 1 1.2

1.2

0.8

0.6 Series1
Log. (Series1)
0.4

0.2

0
11-Jan
Q3. In which condition you like the most to take the cup of tea?

Frequency distribution:

Mean = (4+6+3+3+10+4)/2 = 15

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

Mode = 3 and 4

Standard deviation = 2.683

Quartile = 3

Percentile = 7

Correlation coefficient = #DIV/0!

Q4. Are you using tea as a habit?

Frequency distribution:

Mean = (13+17)/2 = 15

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

Mode = none
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)

Q5. How much cup of tea you take per day?

Frequency distribution:

Mean = (7+9+12+2)/2=15

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

Mode = none

Standard deviation = 4.203

Quartile = 3.25

Percentile = 11.25

Correlation coefficient = -0.4

 1.2

0.8

0.6
Series1

0.4

0.2

0
0 1 2 3 4 5 6 7

Q6. Which of the following type of tea you use the most?

Frequency distribution:

Mean = (17+13)/2 = 15

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

Mode = none

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)

Q7. What kind of tea you use?

Frequency distribution:
Mean = (17+3+6+4)/2 = 15

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

Mode = none

Standard deviation = 6.455

Quartile = 3.25

Percentile = 14.25

Correlation coefficient = #DIV/0! Error

Q8. Are you familiar with Lipton Yellow Label tea?

Frequency distribution:

Mean = (22+8)/2 = 15

Median= 8

Mode = none

Standard deviation = 9.899

Quartile = 0 (minimum value in the data set)

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

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

Q9. How is the taste of Lipton Yellow Label tea?

Frequency distribution:

Mean = (22+6+2)/2 = 15

Median= 6

Mode = none

Standard deviation = 10.583

Quartile = 2

Percentile = 6

Correlation coefficient = #DIV/0! Error

Q10. You are using Lipton Yellow Label tea because?

Frequency distribution:

Mean = (28+2)/2 = 15

Median= 2

Mode = none
Standard deviation = 15.621

Quartile = 0

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

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

Q11. Lipton has innovation?

Frequency distribution:

Mean = (17+13)/2 = 15

Median= 15

Mode = none

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)

Q12. What attracts you for buying the new package of Lipton?

Frequency distribution:
 Mean = (6+22+2)/2 = 15

Median= 2

Mode = none

Standard deviation = 10.583

Quartile = 2

Percentile = 6

Correlation coefficient = #DIV/0! Error

Q13. If Lipton offers tea, sugar, powdered milk in single tea bag, it will attract
you in what way?

Frequency distribution:

Mean = (6+22+2)/2 = 15

Median= 2

Mode = none

Standard deviation = 10.583

Quartile = 2

Percentile = 6

Correlation coefficient = #DIV/0! Error

Q14. If Lipton increases this new product price then are you willing to buy it?

Frequency distribution:
 Mean = (15+6+9)/2 = 15

Median= 9

Mode = none

Standard deviation = 4.583

Quartile = 6

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

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

Q15. If price of new product is higher as compared to older tea bags, would you
still prefer to buy it?

Frequency distribution:

Mean = (16+5+9)/2 = 15

Median= 9

Mode = none

Standard deviation = 5.568

Quartile = 5

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

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

Q16. Does this new product fulfil your need in much better way?

Frequency distribution:

Mean = (26+4)/2 = 15

Median= 13

Mode = none

Standard deviation = 15.556

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)

Q17. Does this new product have any negative point?

Frequency distribution:

Mean = (15+5+10)/2 = 15

Median= 10
Mode = none

Standard deviation = 5

Quartile = 5

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

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

Q18. If yes, then the negative point is?

Frequency distribution:

Mean = (5+5+20)/2 = 15

Median= 5

Mode = 5

Standard deviation = 8.660

Quartile = 5

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

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

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”.

Mean = (7+23)/2 = 15

Median= 15
Mode = none

Standard deviation = 11.313

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)

The result of this holistic approach in converting the market to tea bags not only
successfully converted existing consumers and increased consumption levels, but
expanded the demand and consumer base for Lipton Tea in Trinidad and Tobago
and the entire Caribbean

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