LIPTON TEA CAN DO THAT

MISSION STATEMENT OF LIPTON:

The mission of Lipton is to meet the everyday needs of the people everywhere to
anticipate the aspirations of our consumers and customers to respond creatively and
competitively with products, which raise the quality of life.
LIPTON CARDAMOM TEA:
Lipton has been playing the key role to provide its consumers with something better and
different in every way it can. Lipton once again with the extension in its product mix has
come up with the idea of introducing new flavor in the market, the cardamom flavor.
The differentiation strategy of Lipton is the flavor and aroma. It is targeted for the
existing tea drinkers, providing them with something new and attractive, with great
aroma and taste.
Unilever has used product development strategy to introduce Lipton Cardamom Tea; it
has offered modified/new products to current markets.
SITUATIONAL ANALYSIS:
MICROENVIRONMENT FACTORS
Microenvironment of a company is all the factors that affect its ability to serve its
customers. It includes the company, suppliers, marketing intermediateries, customer
markets, competitors, and publics.
1.

The Company:

Unilever is the largest FMCG Company in Pakistan, which was established in 1948. It is
an international company, with head offices in most of the countries of the world.
People at Unilever work together to attain a single target, which is customer, need
satisfaction. The people at work, coordinates to achieve this target through setting up
objectives and targets and attaining them. Top Management set the mission and
objectives, whereas the marketing managers set strategies according to all these
decisions and missions. Unilever strategy has been quite amazing; their efforts go
beyond just providing the products, more importantly, providing consumers with the
required health and nutrition information that can help them make better informed
choices to lead a healthier lifestyle
2. Suppliers:
The suppliers have made an important link in the companys overall customer value and
delivery system.
3.

Marketing Intermediaries:

Unilever marketing intermediaries have played an effective role in distributing its

products. Unilever products are widely available in nearly all retail stores. The physical
distribution of the firm is quite balanced and covers a very wide area. Financial
intermediaries of the firm are quite strong and depict a very firm relation with the
company. These have strongly helped the company in promoting its products.
4.

Customers:
The customers have always been quite contended with the products. Theres a huge wide
range of products produced that are being used by consumers on regular basis. The
company has maintained its standard though out, that has helped in binding strong
relations with its customers. Customers dont feel like switching to any other brands and
are blind folded by the standard and quality produced. The Unilever Lipton cardamom
tea targets very niche market, the concept is new and very few people are aware of it.
MACRO ENVIRONMENT FACTORS:
Micro environment factors are all the societal factors, which affect the company; these include
demographics, economic, natural, technological, political and cultural forces.
1. Demographics:
Pakistan is the country here tea intake is very high as compared to other countries of the world.
Generally, people consume 2-4 cups of tea per day. So demographically in a country like Pakistan where
tea intake is high, any production or development in the line/product extension would help the company to
grow.

The demographics include ages, location, gender, race, occupation etc.

Lipton is designed for upper middle, upper lower and upper middle class. The potential market
of Lipton is the people aged 10-60; it does not target the children.
2. Economics Forces:
The buying of Lipton cardamom tea, which is for a particular class and niche market, the
economic factors like low income, the decline in the production, the inflation rate might
influence the buying pattern of the people.
3. Cultural Factors:
The Pakistani culture is considerably diverse and this diversity has produced unique cultural
amalgam of its own type. Although, the target market of Lipton Cardamom tea are the people
who are diverse and ready to try something new and fascinating, which lingers to their taste buds
and give them a refresh feeling.

MARKET SEGMENTATION

Market segments are group of customers having similar needs / wants and preferences. It enables
the organization to more closely match it marketing mix with the customers of same needs or
demands.
Consumers can be grouped and served in various ways based on geographic, demographic,
psycho graphics and behavioral basis.
Tea drinking is our national habit, addiction and part of our evolutionary culture; it is no more a
fashion in Pakistan. Tea drinking has become such a habit in Pakistan that such slogans for tea
drinkers are in the air.
GEOGRAPHIC:

Country
Country Region
Climate

Pakistan
All
Moderate

DEMOGRAPHIC:

Age
Gender
Family Size
Income
Occupation
Family life Cycle
Education
Religion
Race
Nationality

12+
Male-Female
Any
Rs 50000+
Professionals, Students, Managers, Officials
Single, Married, Divorced etc
Professionals, Graduates, Students
Islam (majority)
Asian
Pakistani

PSYCHO GRAPHIC:

Social Class
Life Style
Personality

Upper middles, lower Uppers, upper-uppers

Achievers
Cultured, energetic.

BEHAVIORAL:

Occasions
Benefits

Regular, Special
Taste, Aroma

User Status
Loyalty Status
User Rates
Readiness State
Attitude Towards Product

Ex-user, regular user, first time user

Strong

Medium user, heavy user

Aware, interested, desirous
Positive, Enthusiastic

TARGET MARKET:
Lipton Cardamom Tea has used concentrated niche marketing strategy. Lipton has chosen Niche
marketing because it goes for a large share of one or few segments. The aroma and essence is not
the need of everyone, only few classy people, who want a great lifestyle with a touch of
uniqueness will go for a cardamom flavored tea. Lipton basically has targeted the urban areas
and has concentrated on the upper and middle classes {preferable age group ranging from (15
60)}. Today as both men and women consume equal amounts of tea the age group segment
selected for Lipton is 15 60 for they want to target those people who are young trendy,
cosmopolitan hip and cosmopolitan.
Lipton cardamom tea is a product of Unilever targeted for niche market with new essence and
flavor. It is high quality high price product. The people at Lipton understood the need of the
niche market, that the niche market is more innovative and need changes. Moreover, Lipton does
not focus on the households, the Lipton cardamom tea focuses on the commercialism of this
product. It is available to the universities, offices and shopping malls. By doing so, it is targeted
the needs of the people who want comfort, quality, convenience and pleasure.

MARKET SIZE CALCULATION

Geographical:
Region: Pakistan (Lahore, Karachi & Islamabad)
City or metro Size: = 25.914 Million
Density: Urban (70% of metro size = 18.139 Million
Climate: Northern, Southern
Demographic:
Age: 12+ (80% of Density) = 14.511 Million
Gender: Male, Female
Family Size: 3+ (80% of Age) = 11.609 Million
Family Life Cycle: All
Income: Above Rs 30,000/= 5.224 Million
Occupation: All except farmers and unemployed (60% of income) = 1.134 Million
Psychographics:
Social class: Upper upper, lower uppers and upper middles (50% of occupation)

= 1.567 Million
Lifestyles: Achievers, Experiencers (90% of social class) = 1.410 Million
Occasions: Regular occasion
Benefits: Quality, convenience, pleasure (70% of life styles) = 0.9873 Million
User status: first time (45% of benefits) = 0.444 Million
Usage rate: Medium
Readiness stage: Unaware
Therefore Market size is
NUMBER OF BUYERS = 0.444 Million
MARKET SIZE = NUMBER OF BUYERS * AVERAGE CONSUMPTION
THEREFORE 0.444 * 48per year = 21.312Million
POSITIONING:
Positioning is the way the product is defined by consumers on important attributes.
Lipton is portrayed as a high quality product mostly catering to the affluent or the middle class; it
portrays itself as a cosmopolitan, elegant, high class and sophisticated tea. It portrays itself as a
is a sign of good taste through its slogan.
The Lipton cardamom tea is a flavored tea with a new aroma and taste. It is a value added to their
previous image. They positioned their product in the mind of consumer as a new value added to the tea,
offering core benefit of taste along with health.
Position their product as

High quality

High price

Great aroma

New taste

Exciting and refreshing

CARDAMOM TEA FOR THE PERFECT TASTE

REASONS TO LAUNCH THE PRODUCT:
Over the years, peoples lifestyle has been continuously changing. People have become very innovative
and want to endeavor new things which can give them pleasure and comfort. The Lipton cardamom tea is
the type of tea which has milk and sugar already added to it. It is a complete tea mixture to use. The
target market of Lipton Cardamom Tea is the elite class; moreover, it targeted those people who want
relaxation in the day to day routine work. This product is of high premium quality.

The launching of the product was to satisfy the need of target market by providing them taste, aroma,
pleasure and convenience. It is an unsought good.

(Marketing Mix)4-PS OF LIPTON CARDAMOM TEA

PRODUCT:
The Lipton cardamom tea is of high premium quality and mainly to cater the upper upper, upper middle &
lower upper class, and in that class it only targets the niche market, the people who are in universities,
colleges and offices or the people who are going to shopping malls can drink this Lipton cardamom tea. It
does not market the households. It only markets the elite class and professionals

Product concept:

Pleasure
Taste
Aroma
Flavor
Delight and Freshness
Convenience
Availability
Quickly Available
Health
Physiological functional claims
Benefits of Cardamom
PRICE:
Lipton cardamom tea pricing strategy isnt quite effective. The product is costly. The tea vending
machine costs around Rs.500000 to Rs.1000000. Furthermore, the tea is available in 1kg packet
only and its costs around Rs.600. The cup of tea costs around Rs.15-20 depending on the place,
and in comparison to normal tea it costs Rs.10. There is no other charm or appealing factor in the
product accepts for the aroma and style. There are no discounts or allowances given on the
product.
PLACE:
Lipton Cardamom tea is not available in all outlets. Since its of high quality and for niche
segment, its only available in few whole sale markets and that too, its not available to
households users. It is only available in wholesale. In Karachi, Makro super store and Metro
Super Store has it.
PROMOTION:
The promotion strategy for Lipton Cardamom tea is quite poor. It hasnt been advertised
properly. Even though the company has healthy relations with people, there has been no personal
selling done by the company for this product. Most of the people are unaware of this brand of
tea, it is mainly due to the fact that it is not available for the households and the target market is
limited. The sales promotion is quite low. Many people are still unaware if such a product even

exists in market taken out by Lipton. Promotion is done only on magazines; even the Unilever
website does not contain much information about it. You can hardly find anything on the website
of Unilever or the search engines.

PRODUCT CLASSIFICATION AND CONSUMER BUYING BEHAVIOR

Lipton cardamom tea is an unsought product and has little awareness.
BUYING BEHAVIOR:
The people buying Lipton Cardamom tea has Variety-Seeking Buying behavior, although Lipton
plans to change it to habitual buying behavior.

PERCEPTUAL MAP:
The product is of high quality and high price. The quality in the essence of cardamom
and benefits of cardamom.
COMPETITOR ANALYSIS:
Competitors are the major threat face by every company in a market. Companies need to keep a
careful check on its competitors. They have to keep into consideration that what other
competitors is offering, at what prices, what quality, what benefits etc. Lipton cardamom tea is a
newly introduced concept and it has not captured a very large market but still all major tea
companies are its competitors.
The main competitor of Lipton cardamom tea is Tapal, which has the 41% of market share.
Tapal:
Tapal tea is one of the major competitors for Lipton in the tea industry. Its product range has
achieved great popularity in Pakistan. Products such as tapal danedar and family mixture are the
top selling brands of tapal, other brands are also gaining acceptance in the market. The company
has enjoyed a phenomenal growth particularly during the last decade to expand its base in the
branded market, which for long were dominated by multinational competitors. During the year
2009, Tapal s market share has increased. The market share
has risen as Tapal has won customers due to its strong taste and aroma backed by innovative
products, for instance, in the same year; Safari was launched with the aim of revolutionizing the
taste buds of consumers with a stronger blend of tea .Tapal has engaged in extensive promotion
of its products. Another factor driving sales is relatively less prices. The increase in market share
is evident from its increase in sales. Tapal has shown an increase of about 29%in sale revenue.
This has been primarily Tapal has introduced a wide product range to meet the requirement of
different taste and aroma of Pakistani culture. Tapal green tea has shown a rising popularity. It
has introduced different flavors in green tea range. Recently tapal has launched ice tea which has
been not as successful in the market. The major brands of tapal are:

TAPAL DANEDAR
TAPAL FAMILY MIXTURE
CHENAK DUST
TAPAL GREEN TEA:

Jasmine Green tea

Elaichi Green tea
Lemon Green tea

TAPAL MEZBAN
TAPAL TEZDUM
TAPAL GULBAHAR TEA
TAPAL SAFARI
TAPAL ICE TEA

RECOMMENDATIONS TO BUILD CUSTOMERS EQUITY

They should make the product available for the households as well.
They should reduce the size of the packet.

Intense distribution.
Different promotion strategies to cater different markets. Different advertisement should make
for the interest of different markets