Supply Chain Management Report

Tapal Tea
Course code: MGT 518
Semester: Summer 2019
Program: MBA

Submitted By: Nadir Rafi (BM-26142)

And
Muhammad Shaheer (BME-2101)

Submitted to: Sir Zaid Ahmed

Date of Submission: 28-07-2019

1
 Contents
S.NO. DESCRIPTION PAGE
NO.
1. Executive Summary ………………………………………………………….. 3

2. History of Tapal Tea .……………………………………………………….. 4

3. Mission & Vision …………………………………………………………….. 4

4. Objective …………………………………………………………………………. 4

5. Products Overview…………………………………………………………… 4
6. Introduction……………………………………………………………………..
5
7. Company Brands ……………………………………………………………. 6

8. Market Shares of Tapal Brands……………………………………….. 7

Brands……………………………………………………………………………..
9. Market Segmentation & SWOT Analysis…………………………. 8
Marketing Strategy…………………………………………………………
10. Environment Analysis of the Country…………………… ……… 10
Market Mix……………..………….…………………………………………. 11
Distributation Strategy…………………………..…………………….. 14
Segmentation……………………………………………………………….. 14
15
Financial Summary………………………………………………………..

11. Conclusion ……………………………………………………………………. 16

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 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.

2
Under the management of the founder's son, Faizullah A. Tapal, the company
continuhed 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 unique color, aroma and taste. Color and a strong refreshing
taste are its most significana atttributes.

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.
HISTORY OF TAPAL TEA
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
3
introducing tea brands to suit every taste and pocket.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.

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

VISION STATEMENT
 To become a global brand.
 To be an innovative, marketing and research oriented company.
 To provide value and quality to our consumers.
 We aim to have a reputation for innovative thinking in the area that
matter to our customers.

OBJECTIVE
 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.

COMPANY PRODUCTS OVERVIEW

Premium : Danedar, Family mixture
Popular: Tezdum, Mezban,
Solo Product: Gulbahar tea, Tapal ice tea, Tapal Kenya T-bags

INTRODUCTION
Tea is one of the most popular drinks in the entire world and the most widely
consumed beverage in South Asia. The demand for tea in Pakistan is very high.
Consumer base, the competition is also very intense. Brands such as Tapal, Lipton,
Brooke Bond and Supreme, being the leading tea makers not only compete with
one another but also face intense competition from loose tea .Tapal is a well known

4
name in Pakistan. In 1947, it started business as a Tea leader and so celebrated its
55th Anniversary in 2002. Their first shop was in Jodia Bazaar .The journey of
Tapal's remarkable success is the combined efforts of three dynamic generations of
the Tapal Family. Tapal started out as a family concern under the personal
supervision of its founder, Adam Ali Tapal. The company continued to grow under
the management of the founder's son, Faizullah A. Tapal. . Currently it is managed
by the founder’s grandson, Aftab F. Tapal who has continued giving further
strength to the foundations 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.dynamic professionals headed by Aftab Tapal himself. He was
the first tointroduce soft packs in the country. He developed an entirely new brand
and category-Tapal’s Family Mixture (the mixture of tea & dust). Mr. Aftab Tapal
was the first to invent the highly successful brand Danedar Leaf Blend. In
December 1997, Tapal Tea became the first Pakistani Tea Company to earn the
ISO-9001 certification: a symbol of the highest international quality standards.
Again in December 2000, Tapal acquired theISO-9001: 2000 certification, making
it one of the first few companies in the world to achieve this milestone. In addition
to the standard requirements, the ISO-9001: 2000certification system includes
requirements for environment improvement.

COMPANY BRANDS

5
 　

MARKET SHARES OF TAPAL BRANDS:

6
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.
 Tapal danedar has 43% market share.
 Tapal family mixture has 41% market share.
 Tapal tezdum has 6% market share.
 Tapal chenak has 4% market share.
 The remaining 6% other brands.

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.
These activities not only reinforce Tapal as a national company but also assist all
its other brands in having their desired impact wherever required. These activities
are customized according the brand requirements to achieve maximum results. Not
only this, these activities also provide the consumer with a 360-degree product
experience, which not only helps in educating the consumer but also engages them
to the brand. These activities cover Outdoor Billboards, Event Marketing, Road
Shows (floats, mobile kitchens etc), Rural and Urban Development Programs,
Weekly Bazaars, and Merchandizing of the products.

MARKETING SEGMENTATION

7
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 Tapal is to examine differences in needs and wants and to
identify the segments within the product market of interest.
　
SWOT ANALYSIS
The industrial swot analysis of the tapal is as under
　
Situation Analysis

Internal Analysis
External Analysis
Strengths Weaknesses

Opportunities Threats
|
Strengths
 The strength of the company would be the innovation and the high
quality products. Because of these the company is able to survive in the
market and still earning a good market share comparing to its
competitors. Strong brand name, Strong distribution network.
 Loyalty base customer in Sindh, pioneer soft packaging.

Opportunities

8
  One of the greatest opportunity that Tapal has its huge market which is
increasing as the population is increasing. Tea has become a staple product
in Pakistan which cannot be denied at 20 to 60 year of age. Per capital
consumption is almost 1kg according to a recent research in Pakistan.
 Duty free export to Sri Lanka.
 Market in rural areas.

Weaknesses
No major weaknesses were mentioned by the authorities of Tapal but its intense
competition as our analysis is one of their weaknesses as to stay alive against a
giant as Unilever and our brands the other.
A major hurdle for Tapal to position it’s aboard in the minds of the consumers and
encourage them to indulge in the brand switching.

Threats
 One of the major threats for Tapal has it is its area of the market which is
not educated and it is using the loose tea which may not be good for their
health as well. Tapal claims that it is not possible for them to create such
a big awareness for them but the Government should play his role so that
these people should have some awareness of the imported loose tea.
 Competitor gaining share in other provinces.
 Due to the black market, tea is available in cheaper price.

CRITICAL ISSUES
Tapal claims as the high percentage of illiterate people does causes a problem for
them as these sort of people does not know about the problems in the loose tea. A
major portion of the market which is a low level class goes for the loose tea as they
do not know the low quality of tea used in it which can be a threat for their health.

MARKETING STRATEGIES
9
　
MARKETING OBJECTIVES
The objectives of the marketing plan are strategically centered around 3 criteria
 ·To create a strong consumer awareness against unorganized tea product,
 To establish a wide brand recognition through the capture of market shares
in the multi segment, and
 To become the top market leader in that particular segment within the strong
research and development.
　
TARGET MARKETING
The target market is that they are defining for our brand Tapal is the A class and B+
class. The target of this brand is the urban areas of the country and along with the
use in offices and business class as well. The class and geographical location we
can say is almost same for both the brands.

ENVIRONMENT ANALYSIS OF THE COUNTRY

POLITICAL ENVIRONMENT OF SRI LANKA:

Politics of Sri Lanka takes place in a framework of a presidential representative
democratic republic, whereby the President of Sri Lanka is both head of state and
head of government, and of a multi-party system.

MARKETING ENVIRONMENT OF SRI LANKA:

 Competitiveness of Sri Lanka's business operating environment in
supporting corporate growth and profitability, compared with regional
neighbors.
 The large number of consumers.
 Largely untapped markets: The penetration levels for many products are low
in rural areas.

COMPETITOR ANALYSIS:

10
IN PAKISTAN　
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

MARKETING MIX
PRODUCT
The core
o Tea Beverage
The actual product
o Packaging and labeling: see figure in top.
o Branding: red and yellow color, aspect of refreshing, hard pack and soft pack both.
o Trade name: A TAPAL product.
o Brand personality Freshness, Healthy, Innovative, etc.
o Brand equity: Tapal provides a quality, consistent, innovative and accessible tea
reputation.
Product life cycle: Tapal is a product at its introductory level so they are finding
new multiple segments to differentiate themselves.

PRICE

11
The pricing strategy that they are following for Tapal is cost oriented as the price
that Tapal is taking is comparatively low.
1 rupee = 1.4464
Pakistani Rupees Sri Lankain Rupees
Weight In Gram Pakistan’s Price Price In Sri
Lanka
24g 15 21
100g 60 86
200g 125 180
400g 240 347
450g 280 405
1000g 540 781

PLACE
CHANNELS OF DISTRIBUTION
Manufacturer ------à Distributor---------à Retailer --------àConsumer
TAPAL has 5 main warehouses in Pakistan which are located in the following
cities.
1. KARACHI
2. HYDERABAD
3. SUKKUR
4. LARKHANA
5. RAIWIND
From these warehouses the product move to the distributors as only in north they
have 207 distribution channels. And from these distributors the product move to
the next, which is retailer and then to the consumer. This is also one of their
strengths that they have a strong distribution channels.

SHELF SPACING
The distribution strategy would be focused on ensuring that the product
is widely and prominently available at all leading department stores, supermarkets
and convenience stores like Imtiaz, Metro, Macro and Naheeds etc.

12
 Special focus would be paid to the shelf space, the placement of the
product in the shelf should be in a manner that it reaches the customer’s eye-level
easily. This position on the shelf would help in grabbing the customer’s attention.

PROMOTION
 Tapal Chenak is focusing on display racks, sign boards etc. mainly placed
to different retailers for heavy promotion against their competitors.
 Tapal Chenak is focusing on broadcast and print media promotion by
placing ads on T.V to MASS ADVERTISING and placing newspapers ads
as well. Hiring celebrities.
 Spends on television advertisement. Commercial during cable network.
 Full page advertisement including Akhbar-e-Jahan, Khabrain Family
Magazine, Fashion & Business Magazine.
 Same strategy use in Sri Lanka for brand promotion.

ON VISIT PROMOTION
By visiting different Hotels and Tea Corners and offering free samples Free
on the spot trials an taste will also increase the attention of the consumers.

IN STORE PROMOTION
Different sales representatives from behalf of the company will be sent to
different super markets and stores in order to run campaigns where the consumers
will be given samples for taste from the TAPAL CHENAK.
TECHNIQUES OF PROMOTION
Chenak tea does it promotion in following ways:
 Cups
 Caps
 Printed T-shirt
 Discount Offer
 Cars and Motorcycles Scheme, now in Hyderabad and Larkhana.

13
 DISTRIBUTION STRATEGY
The distribution objective of Tapal is to maximize its market coverage. To
accomplish this has a wide distribution network of 410 distributors across Pakistan.
Therefore, main objective is to increase their sales in the
South.It places its tea in the same outlets as its competitors in order to maximize
availability. The distribution coverage of is as follows:

1. Karachi 34%
2. Hyderabad 22%
3. Sukkur 21%
4. Larkana 18%
5. Lahore 13%
6. Multan 13%

SEGMENTATION
There are two clear segments of consumers in the market, branded tea consumers
and un-branded tea consumers. In Sindh , branded tea is consumed by most of the
cities, whereas in the rural areas both branded and unbranded are equally popular.
In Punjab, the city dwellers as well as a majority of rural areas are absolutely brand
loyal while unbranded tea is only popular in teashops and hotels. In Khyber
Parkton and Baluchistan, 90% of the population still prefer the unbranded form as
it gives them the chance of see and smell what they buy before paying for it. In
addition, the mindset is such that now no other tea brand can compete because
consumers are strongly brand loyal.

DEMOGRAPHIC SEGMENTATION
Age Above 3 years.
Gender Male, Female.
Family size 1-2,3-4,5 above.
Income Level Almost all people.
Occupation All categories.
Education Educated and uneducated.
Religion All
Race Asian
Nationality Doesn’t matter
GEOGRAPHIC SEGMENTATION
14
 World region Asia
Cities All major cities of Pakistan
Density Urban-Rural
Climate Hot & dry

BEHAVIORAL SEGMENTATION
Occasion Any occasion
Loyalty Not Significantly high
Readiness Stage Awake and Interested
Attitude towards brand Positive and enthusiastic

PSYCHOGRAPHIC SEGMENTATION
Social Class Every Class
Lifestyle Fulfilled,believers,experience makers

FINANCIAL SUMMARY:
 Tapal Pvt. Limited Company made plan to expanding his business.
 We will export our tea Brand Tapal Danedar in Sri-Lanka.
 In Sri-lanka there is only one competitive brand Dilmah.
 In the First year of our Export our sales target was 20000 cartons.
 When we will achieve this target we will increase our target in the second
year to 24000.
 If this target will achieve in the second year we will increase our target to
27000 in the third year.

CONCLUSION
At the end;
15
 Company want to enter in a new market and extend his product portfolio, in
a shape of Tapal Chenak. It should consider the culture, society, climate and
the trends which a society have.
 Organization should manufacture their product according to need, want and
demand of the consumers of the society,
 Marketing strategy should be aligned with the mission statement of the
organization and strategy should be executed on time.
 To introduce a new product in a market is very difficult when market is
dynamic and environment is uncertain .To capture the market share word of
mouth marketing and image building is very important and necessary.

16