SUBJECT: MARKET RESEARCH

SUBMITTED TO:

TOPIC:

SUBMITTED BY:

NADEEM SHEHZAD (955)

MUHAMMAD ZEESHAN (920)
MUNAF YOUNAS (934)
 MUHAMMAD MUDDASSAR (936)

TEA HISTORY:
The most popular beverage in the world, tea was first drunk under the Chinese
Emperor Shen-Nung around 2737 B.C. An unknown Chinese inventor invented
the tea shredder, a small device that shredded tea leaves in preparation for
drinking. The tea shredder used a sharp wheel in the center of a ceramic or
wooden pot that would slice the leaves into thin strips.

The first tea bags were made from hand-sewn silk muslin bags and we have
found tea bag patents of this sort dating as early as 1903. First appearing
commercially around 1904, tea bags were successfully marketed by tea and
coffee shop merchant Thomas Sullivan of New York, who shipped his tea bags
around the world. A machine was soon invented to replace the hand sewing of
tea bags.

Also in 1904, iced tea was first reported to be served by Englishmen Richard
Blechynden at the St. Louis Fair, however, there is evidence that the beverage
was invented prior to that date.

HISTORY OF LIPTON:
Lipton was created at the end of the 19th century by Sir Thomas Lipton in
Glasgow, Scotland. His enterprise soon flourished and he established a chain of
grocers, first across Glasgow, the rest of Scotland, until finally he had stores
throughout Britain.

Under the slogan "direct from the tea gardens to the tea pot", this entrepreneurial
businessman wanted to make tea a popular and approachable drink for everyone
– with a high quality but reasonably priced product.

In 1929, the Lipton grocery retail business was one of the companies that
merged with Home and Colonial Stores to form a food group with over 3,000
stores. The group traded as Home and Colonial Stores until 1961 when it took
the name of Allied Stores.

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Lipton's became a supermarket chain focused on small towns, before Allied's
1982 acquisition by Argyll Group: the supermarket business was rebranded as
Presto during the 1980s.

Meanwhile, the Lipton tea business was acquired by consumer goods company
Unilever in a number of separate transactions, starting with the purchase of the
US and Canadian Lipton business in 1938 and completed in 1972 when Unilever
bought the remainder of the global Lipton business.

In 1991, Unilever created a first joint venture with PepsiCo, the Pepsi Lipton
Partnership, for the marketing of ready to drink (bottled and canned) teas in
North America. this was followed by a second joint venture, Pepsi-Lipton
International (PLI) in 2003, covering many non-US markets. PLI was expanded in
September 2007 to include a number of large European markets. PepsiCo and
Unilever each control 50% of the shares of these joint ventures.

Due to the 2008 Chinese milk scandal, food giant Unilever started recalling its
Lipton milk tea powder in both Hong Kong and Macau on 30 September 2008.
The tea powder which used Chinese milk powder as its raw ingredient was
recalled after the company's internal checks found traces of melamine in the
powder.

LIPTON TODAY:
Over the course of a century, Lipton has become a dominant tea brand in many
markets. The brand is well-represented in many countries across the globe,
including the US, Russia, Saudi Arabia, France, Japan, Australia, and Sweden.

Products target the mass market and are generally positioned in the middle of
the price spectrum for tea. Due to its size, Lipton is also a dominant player in tea
expertise in the world. The company's Lipton Institute of Tea researches tea's
various health and mental benefits, as well as tea growing, processing and
tasting. Unilever/Lipton owns tea estates in Kenya and Tanzania, making it one
of the few companies that are actively involved in the whole value chain of tea,
from growing it to marketing it.

Like most branded teas, Lipton teas are a blend selected from many different
plantations around the world, from well-known producing countries like India, Sri
Lanka, Kenya, and China. Lipton Yellow Label is blended from as many as 20
different teas in specialized tasting rooms in seven regional hubs scattered all
over the world.

Apart from black leaf teas (with the long-standing Lipton Yellow Label brand), the
company also markets a large range of other varieties, both in leaf tea as well as
ready-to-drink format. These include green teas, black flavoured teas, (herbal)
infusions, Lipton Linea (a 'slimming tea') in Europe and Lipton Milk Tea in various

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Asian markets. Apart from Lipton Ice Tea, none of their products are available for
retail in the UK as only caterers are supplied.

In a number of markets, including Japan, Russia and Australia, the company is

advertising the benefits of thiamine (which is naturally present in its teas), which
is said to have psychoactive properties.

Beginning in 2006, Lipton has served as title sponsor to Team Lipton, an elite
women's professional road bicycle racing and triathlon team in the USA.

LIPTON YELLOW LABEL

Lipton Yellow Label has been sold since 1890, when Sir Thomas Lipton created
the first version of the Yellow pack with a red Lipton shield, which to this day
typifies the Lipton Yellow Label brand. It is sold in 150 countries worldwide.
Lipton Yellow Label is a blend, meaning that up to 30 teas from many different
origins are blended together to create a consistent quality and taste.

Lipton Yellow Label blend is available both in tea bags, the preferred format in
Western Europe, North America and Australia, a well as loose packaged tea, the
preferred format in much of the Middle East and throughout Asia.

In 2008 Lipton Yellow Label became the first tea globally to bear the Rainforest
Alliance Certified Seal on pack.

PAINTING THE WORLD YELLOW

Lipton is the world's leading brand of tea by far. It's the global market leader in
both leaf and ready-to-drink tea, giving a global share of all tea-based beverages
that's nearly three times larger than its nearest rival. In total non-alcoholic
beverages, Lipton is the global number two brand in terms of volume consumed.

Did you know that globally

• 1649 cups of Lipton Tea are enjoyed every second
• 8245 cups of Lipton Tea are enjoyed every time you blink
• 1252 cups of Lipton Tea are drunk every time your heart beats
• 52 billion cups of Lipton Tea are drunk each year
• 45.75 billionTea Bags are produced by Lipton Tea each year

Drink to your health

If that's not enough to convince you that tea is worth trying, take a look at some
of these fast facts:

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 • Drinking four cups of tea is dehydrating, NOT dehydrating as is often said
- unless the amount of tea consumed at one sitting contains more than
250mg of caffeine – that's the same as five cups of tea.
• Tea as it's packed with fluoride, helps to protect your teeth against decay.
In fact, studies have shown that it can provide up to 70% of the fluoride
you need.
• It's also thought that the tannins in tea can inhibit the growth of the
bacteria that cause plaque, plus reduce the amount of sugary, enamel-
damaging saliva in your mouth.
• Tea without milk and sugar has no calories.
• In hot weather, tea refreshes you by raising your body temperature and
momentarily causing perspiration, which cools the skin.

MARKET ANALYSIS
It’s target market includes all age groups accept children. They are operating in
more than 110 countries therefore the target market is a global village that
consists of people with different cultures, habits & food. But as history tells that
tea has been traditional drink of all cultures therefore the tea itself creates its own
place in the minds of target market. In Pakistan they focus more on urban areas
(offices, hotels, restaurants, café, banks) where people prefer light tea. It
captures 85 % share in this area.

PRICE ANALYSIS
Package Price (Rs)
Tea Bags 150 Sachets 165
Tea Bags 100 Sachets 111.61
Tea Bags 50 Sachets 58.04
Flavored 10 Sachets 54.46
Yellow label 200gm 60
Yellow label 500gm 116
Yellow label 1kg
A-1 500gm 100
PLACEMENT
Availability:- It is available in all convenience, independent, Departmental
discount stores & supermarkets.

Distribution channels
• Head quarter in Karachi
• It has 650 distribution offices all over Pakistan.
• 3 manufacturing Units in Khi, Khaniwal & Raheem Yaar Khan.

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 • 7 distribution channels in Lahore alone.
• 25 outlets in various places of Lahore.

PROMOTION
• Caps
• Tea bags
• Cups
• Basant festival
• Vans
• Printed Helmet
• Discounts

ADVERTISING
• Print Media
• TV Satellite
• Billboards
• Banners

POSITIONING
The company has positioned its product in the minds of the consumer as:

• Health caring.
• Adventurous.
• Alert.
• Active.
• Young.
• Vibrant

COMPETITIVE ANALYSIS
 Internal Competitor
 Brooke Bond Supreme
 External Competitors
 Tapal Dane Daar
 Alokozay
 Vital
 Tetley

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Substitute
Nestle coffee is the only close substitute that can reduce the sales. The brand name nestle
is very strong. Moreover in major cities coffee is getting popular with huge
advertisements from nestle.
ABOUT OUR RESAERCH
• Our sample size was 100 persons from the population who
consume tea in Lahore.
• We have gathered the data by using questionnaire.
• We analyzed our data by using percentage method.

OUR FINDINGS
Our findings shows that mostly people like tea because of its taste
and they think that it make them active and fresh. Who consume
tea mostly agreed on that it’s not harmful for health.

• Mostly people prefer Lipton to its competitors.

• Mostly people like Lipton because of its taste and its color.
• People like the packaging and packaging color of Lipton as
well.
• According to our research price has no influence on tea taking
habit instead of this, taste and quality can influence this habit.

RECOMMENDATIONS
• They can reduce their price further.
• They must emphasis on the quality of product.
• They can improve their sales promotional activities.
• Lipton can gain more market by introducing sachets.
• They can attain a large number of people by making their
product hygienically assured.