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TABLE OF CONTENTS

Company Profile ................................................................................................3 Mission & Vision..................................................................................................4

Executive Summary
Tapal Tea Pvt. Ltd. is one of the leading local Tea manufacturers in Pakistan. Currently Tapal has many varieties of tea, catering all segments of Pakistan. The Company has been able to become a pioneer in a very short span of time, despite the presence of multinational competitors. Today, Tapal has emerged as a household name with its various catchy tunes and attractive promotional campaigns. The report puts light on Companys 4Ps. (Product, Price, Place & Promotion) BCG Matrix, SWOT (strengths, weaknesses, opportunities and threats) analysis based on our meetings, observations and analysis is also done, which is followed by our recommendations to improve the areas of weaknesses in the strategies and processes.

Company Profile
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. Despite of tough competition to Adam Ali's unique blend, later named Family Mixture, it 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 introducing tea brands to suit every taste and pocket, sold from its retail outlet in Jodia Bazar, Karachi. 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. The company continued to grow under the management of the founder's son, Faizullah A. Tapal. Today Tapal Tea is managed by the founder's grandson, Aftab F. Tapal. After studying abroad, Aftab Tapal returned to Pakistan to introduce professional management and unique production ideas to the business. A well trained tea taster himself, Aftab Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan. His progressive outlook resulted in giving further strength to the foundation 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 equipped with state-of-the-art equipment and a team of highly dynamic professionals headed by Aftab Tapal himself.

Mission & Vision


The mission statement is a statement that defines the purpose and reason why organization has been formed. It has to be carefully defined so that it covers all the aspects and should reflect the exact purpose of the organization. Previously Tapal has a mission and a vision statement which is as follows:

Mission
We at Tapal are committed to create powerful brands for our diverse consumer base

Vision of 2010
To be a benchmark for quality, creativity & ethical value A company that has grown with the country, Tapal Tea looks forward to even greater progress and innovation in the years to come. It remains committed to providing the people of Pakistan with only the highest quality products and improving their lives in whatever little way possible. Tapal has a meeting among all the senior management on an annual basis to review the objectives for that year. In that meeting, high-level goals are decided which drive the departmental goals which in turn drive the team as well as the individual goals. In the annual meeting of year 2006,Tapal decided to do away with the mission and the vision statement and come up with a statement of commitment instead, which they felt better represented them.

Statement of Commitment, 2006-2007


To satisfy our stakeholders and as a guiding principle to our business; be a bench mark for quality, creativity & ethical value. Achieve leadership in all categories of our core business and diversify in areas which compliment the core business.
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::.Registered Office Address: ::.AUTHORISED CAPITAL:

TAPAL TEA (PRIVATE) LIMITED PLOT NO. 40, SECTOR 15, KORANGI INDUSTRIAL AREA, KARACHI. 100000000

::.PAID UP CAPITAL: ::.CEO NAME: ::.CEO ADDRESS: ::.INCORPORATE DATE: ::.AUTHORISED CAPITAL SHARES:

75000000 MR. AFTAB F. TAPAL D-61, BLOCK 7, KEHKASHAN, 3/13/1979 1000000

::.PAID UP CAPITAL SHARES: 750000 ::.AUTHORISED PER VALUE: 100 ::.PAID UP PER VALUE: 100

tapalandcommunityservices
Over the years Tapal has not only provided quality products, but has also fulfilled its social responsibility of being a good corporate citizen by actively participating in community service activities. The company has continuously sponsored the arts, social welfare projects and sports within Pakistan. The Tapal Cricket Club, started in 1988 has become one of the most popular and reputable sports clubs in Karachi and has many cricketers and professionals as its members. Tapal has also sponsored fund-raising events for the Pakistan Medical Association such as marathons, walks etc. As part of its rural marketing program, Tapal conducts various welfare activities in towns on an on-going basis such as providing fans and furniture for schools, installation of litterbins for a cleaner environment and providing street lights to municipal committees of small towns where such infrastructure is not available. Tapal has provided support to communities at the time of crisis due to natural calamity such as the drought that hit Thar in the year 2000 during which the company distributed free tea to the affected people. Tapal has also recently completed the restoration of the 100 year old Jampur Gate in the town of Jampur in Punjab. This project is a symbol of Tapal's active participation in the country's development and preservation of its rich cultural heritage. This spirit is also evident on national days such as 14th August and 6th September when Tapal celebrates with the nation by taking out a cavalcade.

Products:-

Tapal's success has astounded many Tea Companies. There is no magic formula behind its growth other Product, Price, Place and Promotion. As a result, Tapal has won the hearts of countless tea drinkers across the country.

A Commitment to Quality
"Never compromise on quality" has been the motto at Tapal since the very beginning. This commitment to quality has resulted in a high level of customer satisfaction and unflinching brand loyalty. 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 the ISO 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 ISO9001: 2000 certification system includes requirements for environment improvement, concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction.

Leaders In Innovation
Tapal Tea has taken the lead in a number of areas in the tea industry. Tapal has been: 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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As a step towards backward integration, Tapal has begun tea plantation at Shinkiari in the northern region of Pakistan. This project aims at providing jobs, saving the country's valuable foreign exchange and is a significant step towards selfsufficiency. Tapal is also the first national tea company to export tea to the UAE, Canada and USA. This is again a pioneering step towards increasing value-added exports and is also a fast developing source of foreign exchange for the country.

Packaging: Pioneers of Soft Packaging


Technology is also harnessed at Tapal to benefit the consumer. From the very beginning, Tapal realized the importance of importing innovative technologies such as the soft packing process. A fully automatic facility was established where soft packs were produced for the first time in Pakistan. At this facility tea is blended and packed in hygienic conditions, untouched by human hands whilst the soft packing technology keeps tea fresh and packaging costs economical. The success of these soft packs has been such that other tea companies have also followed Tapal's lead and launched some of their brands in soft packaging.

Research & Development An Ongoing Process


Tea blending and tasting is both an art and a science and Tapal prides itself on having mastered both the aspects. Tapal has adroitly judged the olfactory senses and keenness of the taste buds of their patrons, resulting in the creation of various well-known brands. 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 traveled to leading tea-producing countries searching for better teas. Tapal is a research-oriented company. It subscribes to and conducts various researches in the area of retail audits, consumer behavior, media planning and product development. This research is used for continuous improvement in product quality, brand positioning and communication according to the changing requirements of the consumers. Consistency and quality are the two keystones of Tapal's production policy, and the Quality Control Department at Tapal ensures that flavor and freshness is never compromised. That's why all the brands, whether Danedar, Tapal Special or Tapal Family Mixture, always taste exactly as expected; retaining aroma and freshness till the last sip.

Power of Brands
After Tapal's unique Family Mixture became Karachi's largest selling brand, the company was encouraged to innovate further. As a result, in 1987, 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. Tapal's experienced "high voltage" marketing team has contributed over the years to the phenomenal growth of the brands and the company. In recent years, memorable advertising campaigns on the electronic and print media using TV and film celebrities, have made Tapal a household name. Tapal is considered to be among Pakistani women's most preferred tea brand. The highly successful mix of great teas, modern marketing, proper distribution and promotional activities has resulted in overwhelming growth for Tapal over the last 50 years.
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Tapal and the World of 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.

Tapal Rural Marketing


Tapal has endeavored to make its marketing activities as attractive and interactive as possible, forging a direct link with the consumers. The recently introduced Tapal Road Show has given rural marketing a whole new feel. Tapal has a huge fleet of beautifully decorated trucks conducting the road shows. These trucks are fabricated with a kitchen, a state of the art sound system and a side door, which converts into a stage. Vans are used for conducting merchandising activities and POS splash. Mobile Video Units are used for projecting promotional and entertainment films. Tapal's philosophy has always been "be as unique and innovative as possible in what ever we do"...and this is just one of the many examples.

Human Resource Strength


Presently there are 1600 hundred employees working in these plants which include 300 management employees. Rest of the 1300 employees work on daily wages and majority of them are contractual workers. There are three plants of Tapal which are functional currently. Two plants are operational Korangi, Karachi and 1 in Raiwind, Punjab.

Strong Distribution Network


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 number one national tea company in Pakistan.

Shared Values
In pursuit of the Statement of Commitment, Tapal has come up with five shared values, which have been communicated to all their employees. Every employee in the organization is aware of these five values which are shared with them periodically in every forum. These five values form a core part of their management, and different weightings are given to each attribute in performance appraisals of all the employees.

Passion for Creativity


Openness to novel ideas in every aspect of the concerned business of choice. Belief in providing an environment which supports individual opinion and efforts, inspires and enables everyone to use their creativity and entrepreneurial flair.

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STRATEGIC MANAGEMENT
Corporate Strategy
The Management Strategies that Tapal has employed has enabled it to become one of the major players in the tea market. The management strategy is generally termed as Corporate Growth Strategy. Tapal has over time included more products within the same product line. It has increased its distribution of tea in various cities and increased its market share through good marketing strategies. Within this growth strategy, Tapal has used the concentration strategy to gain a higher market share. It has focused all its attention towards the core functionality of blending and packaging the tea. It has added different products e.g Tapal Family Mixture, Tapal Danedar, Green Tea etc within the same product line of tea and has gradually increased its share in the market through great marketing efforts.

Portfolio Strategy
The focus of Tapal has been the same since its existence and that is to achieve leadership in the tea market. Marketing efforts are made extensively to consistently improve its brand image and different tea products are also introduced periodically for innovation. The Portfolio Strategy is used mainly to analyze relationships and positions of organizations SBUs to create a mix of businesses that will best support overall organizational goals. One of the most widely used Portfolio strategy is the BCG Growth share matrix , which we will use to analyze and classify the SBUs within Tapals family according to their market growth and market share.
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Tapal is currently offering ten different variants under its umbrella, each catering to different customer needs and preferences:

Tapal Danedar
Pioneer of the Danedar category in Pakistan, Tapal Danedar remains a favourite around the country with its grape-nutty appearance, rich golden colour 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 colour, aroma and taste. Also available in double chamber tea bags, today Tapal Danedar enjoys the position of the "No.1 Tea Brand" in Pakistan.

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 dusttogether in one cup. It is the blend that started the Tapal success story and many other companies followed Tapal in introducing similar blends.

Tapal Safari Chai


Tapal Safari is made from the finest Kenya leaf teas and provides extra cuppage of great tasting tea to the consumer. Tapal Safari chai, with a safari theme, is aimed at adventurous people.

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Tapal Special Round Teabags


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.

Mezban Premier Dust


A full-flavored dust that delivers high quality at a very economical price, Mezban Premier Dust is the blend for consumers who prefer tea with a strong flavor & taste. Originally developed for hot tea shops, Mezban has become a favorite amongst household consumers as well. It is the most popular brand of tea in Sindh. The name of the brand itself is a characterization of the typical hospitality that is inherent to and a matter of pride for the people of Sindh.

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Chenak Dust
Highly popular in Sindh, Chenak is known for its extra strong flavour, colour and taste. As a result of these features and high quality of tea it is No.1 in its category.

Tapal Special Tea Bags


The unique flavour of high grown leaves especially selected from the finest tea gardens in the world make Tapal Special Teabags a treat at any time. The combination of an extra strong blend with the convenience of environmental friendly metal-free tea bags has made Tapal Special an instant hit with consumers.

Tapal Tezdum
The latest addition to Tapal's successful brands is Tezdum tea. The biggest attribute of Tapal Tezdum is its extra strong taste, which is making it popular amongst the people who like their tea strong. Tapal Tezdum is the first tea brand in Pakistan to be introduced in attractive silver-foil, moisture-proof sachets. They maintain the freshness, aroma and taste of the tea and the consumer gets the product in the best condition possible.

Gulbahar Green Tea


Green tea lovers around Pakistan regard Gulbahar as a special treat. Perfect as an after dinner option, Gulbahar remains a perennial favourite due to its refreshing flavour.

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Tapal Jasmine Green Tea


Tapal Jasmine Green Tea is the most recent addition to Tapal Brands. Tapal Jasmine Green Tea is blended to perfection using the finest tea leaves and specially selected Jasmine to give a refreshing experience of light taste and soothing aroma. It is available in metal-free tea bags specially enveloped for extra freshness. Tapals portfolio can be best categorized as:

STARS
Green Tea Special Tea Bags Tapal Danedar

QUESTION MARKS
Round Tea Bags

CASH COWS
Tez Dum Mezban Family Mixture Chenak Dust

DOGS
Safari Gul Bahar Tea

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Analysis of BCG Matrix


Question Marks as the name specifies have uncertain future, in this case the Round Tea Bags being relatively new entrants amongst the entire portfolio fall in this category. This product at this point in time requires immense cash flows and has yet not achieved enough market shares. Tapal therefore has to decide between retrenchment and growth for this particular product. Stars hold a high market share of a high growth market; in this case Tapal has 3 stars in its portfolio Jasmine Green Tea, Tapal Special Tea Bags, Chenak Dust and Tapal Danedar. They all have substantial future profit and cash potential therefore they are categorized as Stars. Tapal must use growth strategy to develop these into the cash cows of tomorrow. Cash Cows hold a high share of a low growth market. Tapals well established SBUs in mature markets include Tez Dum, Mezban and Family Mixture. The cash from these is generally used for investments in the development of SBUs in other categories, such as stars and question marks. Dogs hold low share of a low growth market and in Tapals case Tapal Safari Chai and Gulbahar Green Tea fall under this category. These are the products producing low profits and little cash, and also absorb large amounts of cash and management time. Managers at Tapal must very analytically study these products and decide upon a retrenchment strategy such as divestiture, harvest or turnaround.

SWOT Analysis
Strengths
Good organizational culture conducive to participation and motivation Strong market presence (potential to diversify) Aggressive and Proven management Focus on people within the organization. Effort to improve deficiencies through trainings etc Multiple-segment strategy; products catering to various segments of the tea market Advent of newer and younger people Good competitive skills Strong brand names and brand equity, Easy upward and downward communication that promotes a healthy work environment with knowledge sharing

Weaknesses
Highly centralized structure might not be maintained with growth in terms of team expansion, geographical expansion or diversification
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Seems to be limited room for growth as the organization is small and promotions based on vacancy Communication gap within older and new generation Lack of focus on research Narrow product line

Opportunities
Potential to diversify within the product line Entry into new markets and segments Business diversification

Threats
Entry of new competitors Aggressive marketing moves by new emerging competitors

Recommendations
The weaknesses that were identified in the S.W.O.T analysis need a careful insight and resolution. Few recommendations for improvement are: Bring in more newer people for an equal mix of experience and innovation Diversify in products e.g cold beverages, milk, cookies, sugar et Introduction of new programs like Management Trainees, which have been very successful in other organizations.

CONCLUSION

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After a carefully study of the Tapal Tea Private Limited, various strength and weaknesses of the company have been identified. Tapal is doing great in the Tea industry against giant multinationals line Unilever. The management of Tapal with its years of experience have single handedly contributed to convert a vulnerable entrepreneur venture into a decent recognized company. The company has made a name for it self in the market. It has emerged to be a non traditional tea manufacturer and throughout its journey made, Tapal has appreciated its employees for their pivotal contribution towards the overall goal attainment. The company objectives are rooted in the behavior of executives of Tapal, and it is very evident that they enjoy working for this company.

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