Group A Brook Bond Supreme, Complete Analysis

caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant. Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water. In Pakistan, tea is only blended and packed, but not produced. Three basic categories of tea are marketed in Pakistan which are: Mixture Danedar Chura

oday,

tea

is

drunk

by

almost

half

of

the

world's

p o p u l a t i o n . T e a i s undoubtedly the national drink of Pakistan. Tea is an aromatic stimulant, containing various polyphonic, essential oils and

Danedar is also known as leaf tea while Chura is known as dust tea. The re are around five hundred flavors available in tea. The rural areas of Sindh are considered to be heavy consumers of dust tea. Punjab has a high consumption of leaf tea. It has more consumption than any other type of drink available in the market today. It is e st im a te d th at P akist an is co n su me o ve r 1 3 0 millio n kg o f t e a wo rt h o ve r 4 billion rupees every year. Despite the increasing emphasis on its hazardous effects o n h e a lth a n d th e con t in u ously risin g p rice s, d u e t o th e lo w lit e racy rat e an d unavailability of a better substitute, the demand and the consumption has increased over the years and is growing at an annual rate of 6%.Tea is an aromatic stimulant, containing various polyphonies, essential oils and caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant. Although second to coffee in commercial value, tea ranks 1st as the most popular beverage in the world. Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water. Native to Southeast Asia, the tea plant, Camellia sinensis, is a small shrub like, evergreen tree. Its leaves have the chemicals, caffeine and tannin.

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Group A Brook Bond Supreme, Complete Analysis

Tea is more than just a hot beverage in Pakistan. It is a tradition that the people hold very close to their hearts. Each family has its own unique tradition and ways to enjoy their cup of tea, giving it the sentimental significance in familial ties that family heir looms usually hold. Brooke Bond Supreme has played a very important role in this tradition for nearly three decades. It has brought families closer together over joyous tea drinking occasions and has deeply entrenched itself in their lives. Testament to this is the fact that it is the largest selling tea brand of the country, with undoubtedly the widest geographical spread. Currently, Brooke Bond Supreme is running the Chaske Zindagi Ke campaign message, reminding consumers that it is the all important tea drinking occasion, of which Supreme is an integral part, that brings them closer together in moments of joy. Tea Blending Expertise Supreme benefits from the blending expertise of the house of Brooke Bond, which was established in 1869. Brooke Bonds blending expertise in tea brings together juicy leaves for the unique rich color, medium sized grains for the correct strength and top leaves for that irresistible aroma, in the perfect combination to give that unmatchable taste in every single cup of Supreme tea.

History
Unilever was created in 1930 when the British soap maker Lever Brothers merged with the Dutch margarine producer, Margarine Unie. At the time, an international merger was an unusual move. But the owners of the two companies could see that bringing together complimentary businesses with strong global networks would create new opportunities.Unilever (Pakistan) Limited Formerly known as Lever Brothers
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Group A Brook Bond Supreme, Complete Analysis (Pakistan) Limited is by far the largest and most experienced fast moving consumer goods (FMCG)firm in Pakistan. It enjoys a very large market share in consumer goods, the lions share even, and is particularly dominant in tea and ice-cream. The largest competitor of Unilever in Pakistan is Procter & Gamble which also is a house hold name in consumer goods all over the world. Unilevers principle activities are to manufacture & sell spreads & cooking products, ice creams, beverages & home & personal care products. Some of the

products in the Unilever line in Brooke Bond, Lipton, Lux, Rexona, Sunsilk, Blue Band & Planta, etc.

SWOT ANALYSIS
Strengths:
The packaging is very attractive. Unique sizes have been introduced for various segments. Consistent quality. Economies of scale. Pioneers in soft packaging.

Weaknesses:
Reduction in Research & Development. Large number of competitors. No massive advertising is being done by company to promote this product.

Opportunities:
The consumption of tea is increasing day by day due to increase in population.
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Group A Brook Bond Supreme, Complete Analysis Decrease imports cultivating trees in their own lands. Marketing in rural areas. Increase need for healthy products. Changing consumer preferences.

Threats:
Competitors can gain large market share. Due to black market smuggled tea is available at cheaper prices. Tougher business climate. Decrease in revenue.

Porters Five-Forces Analysis

Threat of Suppliers:
Tea plantations Machinery Transporters Labor

Threat of Buyers:
Initial buyers Final buyers Nature of Product

Threat of Substitutes:
Beverages Others The biggest threat to the packaged tea industry is the loose tea industry.

Threat of New Entrants:

Barriers for plantations
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Group A Brook Bond Supreme, Complete Analysis Barriers for factories Barriers for distributors and packagers Barriers for consumers Rivalry Among Competitors: Intense competition Other local players, loose tea market Ad-spend of cos. : indication of competition Other companies

Pest Analysis
Due to the natural environment, Tea is not produced in Pakistan, but only b le nd e d a n d p a cke d . It is imp o rt ed f ro m Ke n ya, In d on e sia, Sri Lan ka, China, Bangladesh, India and other countries. Agents in these countries p u r c h a s e i t f r o m a u c t i o n a n d e x p o r t i t t o P a k i s t a n . T h e y w o r k o n commission basis, usually ten cents per kg. Unilever (Lipton) in order to get backward integration is experimenting in Swat and Mansera to produce tea. Although no significant results have been achieved, they are still trying. If they get successful all the products lie in the family of Unilever will enjoy the lowered prices of tea without having to pay t h e i m p o r t d u t y w h i c h w i l l w i n a c o m p e t i t i v e e d g e i n t e r m s o f c o s t leadership. T h e le gal e n viron men t po sse s so me o f th e p ro b le ms like T ea sale s h a ve continued to suffer from rampant smuggling of tea. Lever presently pays mo re t ha n 8 0 % a s t axe s o n imp o rte d t e a. T h is h as mad e t e a smu gglin g at t ractive . N o t o n ly un b ran de d t e a b ut also e st ab lish ed b ran d s are also threatened by smuggled tea from Afghanistan which is available in the open market duty free. This has posed a lot of problems for genuine importers of tea who cannot compete with this tea because of its low price. The Socio-cultural environment plays a very massive role in tea industry because the choices and preferences of people in different provinces are varied to a great extent. In interior Sindh and Balochistan, there are heavy co n su me rs o f Du st t e a , P un j ab like s mixt u re an d in Karach i D ane d ar is exceedingly popular.

BCG Matrix (Boston consulting Group):

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Group A Brook Bond Supreme, Complete Analysis The Boston consulting group a leading management consulting firm develops and popularized the growth share matrix as shown in figure.

BCG MATRIX of Unilever Pvt. Ltd:

According to the Unilever Pvt. Ltd, the relative market share and market growth rates of different products of unilever are given below:Name Brooke bond supreme Knorr noodle Lux Surf Excel Lifebuoy shampoo Rexona deodorant Relative Market Share 41% 51% 21% 23% 15% 2% Market Growth Rate 45.03% 29% 29.15% 27.37% 85.03% 8%

BCG MATRIX Figure: Star Market growth rate High

Knorr noodles

Broke bond supreme

???
Lifebuoy shampoo

low

Cash Cow Surf excel Lux

Dog Rexona deodorant

High Relative Market Share

low

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Group A Brook Bond Supreme, Complete Analysis

1. Broke bond supreme & Knorr noodles:

The market share value of Broke bond supreme and Knoor noodles are high and relative market growth rate of Broke bond supreme and Knoor noodles are high, that is why Broke bond supreme and Knoor noodles are lying in BCG Matrix at Star point.

2. Surf Excel & Lux :

The market share value of Surf excel and Lux are high and relative market growth rate of Surf excel and Lux are low, that is why Surf excel and Lux are lying in BCG Matrix at Cash cow point.

3. Broke bond supreme & Knorr noodles:

The market share value of Broke bond supreme and Knoor noodles are high and relative market growth rate of Broke bond supreme and Knoor noodles are high, that is why Broke bond supreme and Knoor noodles are lying in BCG Matrix at Star point.

4. Lifebuoy Shampoo:
The market share value of Lifebuoy Shampoo is low and relative market growth rate of Lifebuoy Shampoo is high, that is why Lifebuoy Shampoo is lying in BCG Matrix at ??? Point. At this point, Company makes their investment on this product to get the point of CASH COW and STAR in BCG matrix.

5. Rexona deodorant:
The market share value of Rexona deodorant is low and relative market growth rate of Rexona deodorant is low, that is why Rexona deodorant is lying in BCG Matrix at Dog point.

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