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Letter of Transmittal
Letter of Transmittal
Letter of Transmittal
LETTER OF TRANSMITTAL
Dear Ms Shaukat,
This is our report on “Advertising Strategy of Tarang” you have asked us to prepare. We
submit this report to you on January 17, 2011.
We have made this report be doing a detailed research by using various primary and
secondary sources that includes by gathering research through various websites and by
carefully observing the current advertising and marketing strategy of Tarang and this is
how we were able to create our own advertising strategy
It has been an honor studying from you and we thank you for giving us the knowledge we
have gained under your guidance in this course of Principles of Advertising.
Sincerely,
LETTER OF ACKNOWLEDGEMENT
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All praise is to Allah Who makes everything possible in the universe and beyond.
First of all, we would like to thank Allah, who helped us with everything and made
everything come together, followed by our parents and family who have always supported
us in every good thing that we do. We are greatly thankful to our course instructor, Ms.
Nida Shaukat, who gave us clear concepts and a practical understanding for the subject.
She made the course a valuable learning experience for all of us and made us grow as
learned individuals.
We would also like to thank our college; The Institute of Business Management, it has been
a great learning place with different academic and extra-curricular experiences, all
contributing to our growth as students.
Lastly, we would like to thank our fellow classmates for making this learning experience a
thoroughly productive and enjoyable one.
Sincerely,
Table of contents:
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Industry Analysis.............................................................................................................................5
Market Size.................................................................................................................................5
Growth........................................................................................................................................5
Company’s Overview......................................................................................................................6
Business of Engro............................................................................................................................8
Engro fertilizer...........................................................................................................................8
Engro Polymer and Chemicals..................................................................................................9
Engro Power Gen........................................................................................................................9
Vodapak Terminal Limited........................................................................................................9
Avanceon Limited......................................................................................................................9
Engro Foods Limited................................................................................................................10
SWOT (Tarang as a product).........................................................................................................11
Strengths...................................................................................................................................11
Weaknesses..............................................................................................................................11
Opportunity..............................................................................................................................11
Threats......................................................................................................................................12
Competitive Environment Analysis...............................................................................................12
Direct competitors...................................................................................................................12
Indirect competitors................................................................................................................12
Haleeb Tea Max Tea-Whitener.............................................................................................13
Everyday................................................................................................................................14
Buyer Analysis...............................................................................................................................15
Brand Loyalty:...........................................................................................................................15
Demographic............................................................................................................................15
Geographic................................................................................................................................16
Consumer Awareness:.............................................................................................................16
Critical Analysis of Current Advertisement..................................................................................16
Our Proposal..................................................................................................................................18
Budget Allocation..........................................................................................................................18
Budget (current allocation).....................................................................................................18
Recommendations...................................................................................................................19
Justification...............................................................................................................................19
Media Strategy...............................................................................................................................19
Media Objective........................................................................................................................19
Media Recommendations........................................................................................................20
Current Situation....................................................................................................................20
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Our Recommendations..........................................................................................................20
Vehicle Selection and Scheduling............................................................................................21
Creative Recommendations...........................................................................................................22
Advertising Appeals.................................................................................................................22
Rational Appeals.......................................................................................................................22
Emotional Appeals...................................................................................................................23
Message strategy......................................................................................................................23
Promotional Mix............................................................................................................................23
TVC Storyboard.............................................................................................................................24
Radio Script...................................................................................................................................26
Critical Ad Analysis (Print Ad).....................................................................................................26
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Industry Analysis
Market Size
Market size of the tea whitener industry basically depends upon the number of people
using a certain tea whitener. The Tea whitener industry of Pakistan is no different in
operating and earning large gains. Nestle was the first to introduce a tea whitener called
Everyday tea whitener in Pakistan and till today has captured a high market size but there
is no doubt that the tea whitener industry is dominated by the open milk. Tarang milk tea
whitener was launched in August 2007, is the only source of lactose and has the best bio
available proteins. Total revenue in 2007 was Rs 3.6 billion and the loss for the year was
Rs 620 million. At present tarang tea whitener has a stronge comptetion from nestle every
day, open milk, haleeb, good milk, chaika and milk pack.
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Growth
At the moment nestle everyday has the biggest market share of tea whiteners. Many
brands entered this field and tried really hard to sustain their position but they badly
failed and one of the examples is of Candia. The phenomenon of the perfect blend of milk
and tea has for long been the mystery for the tea loving nation and following the observing
fact marketers believe that the market of tea whitener is still very large.
At the moment open milk dominates the industry because it has a cheaper price but at the
other end one should also understand that it is not safe to use open milk because as it
open so it is usually contaminated with different kinds of bacteria’s and germs, hence is it
not at all advisable to use open milk
Engro foods launched tarang tea whitener in 2007.it basically aiming low end consumer
market and priced at a low rate and it is available in the urban and rulal areas. Considering
the market opportunities ECPL board has also approved additional investment of Rs 3.4
billion for expanding it UHT capacity and also for expanding it milk powder capacity.
Engro at the moment has 1000 imported cow farms.
Company’s Overview
Engro is one of Pakistan’s most progressive, growth oriented organizations, yet we never
forget where we came from. Our history is a part of who we are today. Our diverse ranges
of companies represent our rich legacy of innovation and growth
In 1957, the search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the discovery
of the Mari Gas field near Daharki – a small, remote area in Upper Sindh province at the
time. Esso proposed the establishment of a urea plant in that area which led to a fertilizer
plant agreement signed in 1964. In the subsequent year, Esso Pakistan Fertilizer Company
Limited was incorporated, with 75% of the shares owned by Esso and 25% by the general
public.
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The construction of a urea plant commenced at Daharki in 1966 and production began in
1968. At US $43 million with an annual production capacity of 173,000 tons, it was the
single largest foreign investment by a multinational corporation in Pakistan at the time.
As part of an international name change program, Esso became Exxon in 1978 and the
Company was renamed Exxon Chemical Pakistan Limited. The Company continued to
prosper as it relentlessly pursued productivity gains and strived to attain professional
excellence.
In 1991, Exxon decided to divest its fertilizer business on a global basis. The employees of
Exxon Chemical Pakistan Limited, in partnership with leading international and local
financial institutions, bought out Exxon’s 75% equity. This was at the time and perhaps
still is the most successful employee buy-out in the corporate history of Pakistan.
Renamed as Engro Chemical Pakistan Limited, the Company has gone from strength to
strength, reflected in its consistent financial performance, growth of the core fertilizer
business, and diversification into other businesses.
Along the way, a major milestone in plant capacity upgrade coincided with the employee
led buy-out; innovatively optimizing our resources, Engro relocated fertilizer
manufacturing plants from the UK and US to its Daharki plant site – an international first.
Engro Chemical Pakistan Limited then started a journey of venturing into other sectors
including foods, energy, industrial control and automation, PVC resin manufacturing and
marketing, and chemical terminal and storage.
In 2009 plans were announced of demerging the fertilizer business into an independent
operating company. The expansion and growth in the company necessitated a change in
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the way the company operated and conducted business. Keeping in view the operations of
multi category businesses, expansion strategy and growth vision, the management
decided that the various businesses would be better served if the Company was converted
to a holding company. As a result it was decided to demerge the fertilizer business and
establish a holding company structure to manage the affairs of various businesses.
Engro Fertilizers Limited was incorporated in June 2009 to manage the fertilizer business
post demerger. The demerger required the approval of the High Court of Sindh, which was
granted on December 9, 2009 after obtaining the requisite approvals from the creditors
and shareholders of the Company. The demerger became effective from January 1, 2010.
Consequently, all fertilizer business assets and liabilities have been transferred to Engro
Fertilizers Limited against the issue of shares to the Company.
To reflect the change in the scope of mandate and scale of operations, Engro Chemical
Pakistan Limited has been renamed as ‘Engro Corporation Limited’ with effect from
January 1, 2010. Engro Corp, as the holding company is responsible for the long term
vision of the company, overseeing the performance of the subsidiaries and affiliates,
allocation of capital, management of talent, leadership development, HR guiding policies,
leadership role in public relations and CSR activities, control structures, legal and IT
support.
Engro Corp will maintain a lean structure with a focused scope, allowing maximum
empowerment to the subsidiaries and affiliates to drive the operations of their respective
organizations.
Business of Engro
Engro fertilizer
Engro polymer and chemicals
Engro power gen
Vodapak terminal limited
Aveceon limited
Engro foods limited
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Engro fertilizer
Engro Fertilizers Limited, a wholly owned Engro subsidiary, is a premier fertilizer
manufacturing and marketing company with products that focus on balanced crop
nutrition and increased yield. The company markets primary and secondary fertilizers like
Engro Urea, Engro DAP, Engro Zorawar, Engro Zarkhez and Zingro.
Engro Fertilizers has successfully developed a loyal customer base all across Pakistan, not
only by providing farmers with quality fertilizers, but also through extensive market
development activities. A premier brand and nationwide presence of the company ensures
sellout production. Additionally, the company sells phosphate fertilizers for balanced
fertility and improved farm yields. Engro’s share of Pakistan’s phosphates market mirrors
or exceeds its urea market share.
The Sindh Engro Coal Mining Company Limited is a joint venture between the Government
of Sindh and Engro Powergen, to mine coal from Thar Block II. Although the project is in
its early stages of technical and economic feasibility assessments, the Company aims to
utilize the ample reserves of coal in Thar Desert for power generation.
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Engro Powergen seeks to reduce Pakistan’s power shortage through exploring and
implementing cleaner, efficient and economic methods of power generation. In this
pursuit wind, hydro and solar power projects are being actively assessed as alternative
energy options for Pakistan.
Avanceon Limited
Avanceon Limited, an Engro subsidiary, is a leading global automation business, providing
process and control solutions, with subsidiaries operating in UAE and the United States.
The Company also offers power and energy management integrated solutions, as well as
high end software that integrate production and business applications. Avanceon’s driving
force is its vision to develop intellectual property to optimize the energy foot print of the
manufacturing industry.
Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004.
Using dairy as a stepping stone to enter into the food business, the Company has
established state-of-the-art processing units in Sukkur and Sahiwal, along with an ice
cream production facility in Sahiwal.Top quality brands like Olper’s, Olwell, Tarang,
Omore and Owsum have been successfully launched under the helm of Company’s dairy
products. To support these brands and their highest standards of quality, Engro Foods has
invested heavily in milk processing and milk collection infrastructure.After the success of
our dairy products, to which our customers testify, Engro Foods now plans to venture
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beyond the dairy sector. In this pursuit, grain and fruit markets have been analysed in
great detail.
Engro Foods’ vision is “Elevating Consumer Delight Worldwide” and the Company aims to
generate a significant portion of its revenue from foreign operations.
Strengths
Weaknesses
Tarang advertisement are confusing in a sense as it does not clearly show the
functionality of the product
Initially tarang’s advertisement was unable to target the right audience
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Many people still thinks it a tea rather than a tea whitner
Tarang also lacks a Unique Selling Point. It needs to improve its appeal to the
consumers and visibility. It should be on shelves that are on the eye level of the
consumers when they enter a supermarket
Availability and distribution is a big problem of tarang
Opportunity
Opportunity to futhur expand its category like introducing a tea
Tarang ads can attract people in the semi urban areas
It is a way of making people shift from open milk to tea whitener (because of its
afforadable price)
Threats
One of the major threat for tarang is from the open milk, as it dominates the tea
market.
Big Competitors like nestle every day and chaika
Brand switching is quiet high due to lack of availability
Direct competitors
1. Everyday Milk
Indirect competitors
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Others
15%
Open
Tarang milk
17% 41%
Everyday
27%
Promotional Statement
Haleeb Tea Max, a premium tea whitener that gives you a richer taste
and enhances the flavor of your day to day life. It is positioned as the
ideal choice for all tea and coffee lovers and special milk that provides a
rich taste in the beverage.
Slogans
“Garha Jo Hai”
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Message Strategy
Over the years Haleeb has stressed through their ad campaigns that its only
Haleeb milk which will provide you with the best tea taste that will add
convenience to your fast-paced lifestyle. Their main premise gyrates around
the unique taste and thickness of their dairy products and their ability to
elevate your coffee/tea drinking experience.
Everyday
Nestle aims at growing into a number one food company in Pakistan in the shortest
possible time with the unique ability to meet the needs of consumers of every age group –
from infancy to old age, for nutrition and pleasure, through development of a large variety
of food categories of products with highest quality. Nestle has significantly high growth
rate (36%) and has grown and developed at a high pace in short span of time. The major
contributor toward this growth and development are human resource, marketing, and
sales departments. Perhaps this is the reason that it in spite of being a multi-national has
been well accepted in Pakistani culture.
When Nestle launched its Everyday brand, it gained a lot of popularity and provided the
customers the pleasure that they really needed. Nestle used the same exclusive approach
to attract the customers, therefore Nestle never had to worry about its
marketing/promotion budgets and also the product was doing well in the market.
Nestle Everyday creates moments which can help us fortify our relations. When Nestle
Everyday came in the market it created a sort of uncertainty in the minds of consumers as
to what this product is about. The normal milk that we get from milk stores or from our
very own hygienic milkmen is still used in everything. Normal milk is used almost in
everything we make at home, from normal teas to its extreme form of “doodh patti”, from
making mouthwatering kheers (a typical dessi dessert) to the making of exotic home-
made kulfis and what not or Nestle Everyday is available both in powder and liquid forms.
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This trend has been going on for centuries now and has created a solid impact on us. But
trends do change, and so it did.
Promotional Statement
Made from pure fresh milk, Nestle Everyday – a dairy tea whitener, is a perfect partner for
tea. It is not only the ideal ingredient for separate tea but now also
gives the same unmatched delightful creamy flavor in your mixed tea.
NESTLÉ EVERYDAY is positioned as a dairy tea whitener made from
pure fresh milk that gives you that perfect rich taste that only
specialized milk can, so you can enjoy the same delicious cup of tea
each time!
Message Strategy
If we look at the message strategies and slogans of the Nestle, the objectives of their
messages are to how one can:
Strengthen their bond.
Nurture friendship.
Handle conflicts.
Sharing love.
Understanding the relationships and value
SLOGANS
Buyer Analysis
Brand Loyalty:
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Consumers are usually not brand loyal when it comes to tea whitner because there are so many
alternatives available, so we really need to work on strong consumer insight to make out
consumers loyal and enhance our position in the market
Demographic
AGE:
Youth that falls under the age group of (16 to 29)
INCOME:
Since its powder milk so lower class will not prefer it and keeping in mind the
pricing the target market is middle class and upper middle class.
Geographic
Primarily Urban and semi urban Punjab
Use Situation:
Tea is considered to be a routine beverage in Pakistan mostly in morning and
people drink it more than once a day as a powdered milk the primary target
market of tarang are people who want convenience and portability.
- Secondary target audience is EVERY TEA DRINKER
Consumer Awareness:
Due to aggressive promotional strategy and high marketing budget, tarang has been successful
in creating high level of awareness and it also has highest recall in the tea whitener category
Big idea
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Best mix for tea – Chai ka sahe jorr
Campaign idea
The campaign was about tarang powder milk the core idea was to highlight the creamy
factor
Target Audience
Primary: Youth, middle and upper middle class.
Secondary: Everyone
Brand Personality
Tarang has been potrayed as the brand which is very filmy, young, out-going and fun-
loving.
Brand Image
The campaign is designed to position tarang as the best tea whitener which gives the
finest taste, smell and colour to the tea.
Appeals used
a) Rational:
Tarang Logo
Voice over focussing on the functionality.
Tarang family pack.
The whole process of making tea .
b) Emotional:
The whole heer ranjha jingle whichis based on the BIG IDEA.
The look and feel of the set.
Opinions/suggestions
The current ad of tarang powdered milk has revived the story of heer ranjha but with
happy ending as opposed to the actual endings which resulted in the deaths of these
legendary lovers. As usual a lollywood star i.e Meera has been casted for this ad and it also
revolve around the same idea of “CHAYAE KA SAHI JOR” the major flaw in communication
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is that functional benefits are not highlighted properly ,also the focus was more on the
lavish set and celebrity rather than the product. The core message was about the creamy
taste of tarang. Another flaw was that family pack was shown instead of small pack which
needs to be corrected because small pack is more popular among the target audience and
is easily portable, they could have focused on the portability factor.
Our Proposal
Our basic aim was to fulfil the following three objectives:
1) Knowledge objective:
2) Conviction objective
3) Liking objectives
The objective of our advertising campaign was to focus on the portability and color of the
product, and to spotlight the functional benefits of the product, along with the emotional
touch.
We kept in mind the flaws in previous campaigns of tarang, which were focusing more on
the celebrity and lavish set. The current advertisement left the target audience confused
about what the product is, what are its core competencies, so we decided to adopt a
simpler approach which the target audience can understand easily. Also the psyche of
target audience was a major consideration to increase the brand equity. We emphasized
on the fact that Tarang is milk specially designed for tea; the advertisement aims to
enhance the consumer’s interest in the product such that he/she may be compelled to
purchase it.
Budget Allocation
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Traditionally, Engro Foods has been known for spending above average amount on its
advertisements be it Olpers or Tarang. Engro Pakistan has allocated Rs.50 million for its
TARANG campaign, where the division for this budget falls under 3 mediums.
Recommendations
Our new budget would be of Rs 60M. Following are the recommendations from our side
for budget allocation.
Justification
We are lowering the TV and Print budget because due to hectic schedules of our target
audience cannot get exposure to these media. Secondly the media habits of our target
audience is changing, they spend now more hours in front of computer than TV. The
listenership of radio is increasing day by day. Our target audience do listen radio when
they are travelling and at night (most of the favorite RJs come at late hours of day). And
with the increase in online marketing tarang should focus on this medium that is why we
have allocated 8% to internet. Apart from that tarang should do a lot of BTL activities to
give their customers a chance to experience and to live the brand.
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Media Strategy
Media Objective
Our objective is to
Connect with the target audience through every touch point and to ensure
complete exposure of tarang.
To increase top of the mind awareness.
To enhance brand image
To increase brand equity and loyalty.
To register the brand in the hearts and minds of the target audience.
Media Recommendations
Current Situation
Engro is currently using the following mediums for promotional purposes to promote
Tarang:
T.V.
Radio
Print
o Newspaper
o Magazines
o Posters
OOH
o Conventional Hoardings
o Banners
o Shop signs
o Mobile advertising ( Painted Trucks and Rickshaws)
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Our Recommendations
Along with the traditional medium of advertising tarang should also focus on the emerging
new mediums of advertising. Following are some of the suggestions that tarang can apply
through internet:
Website
Facebook page
3D game
Chat room
Creative Recommendations
Advertising Appeals
We are using both emotional and rational appeal to grab the attention of our target
audience as well as communicate our message clearly.
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Rational Appeals
1. Highlighting Portability factor.
7. LOGO
Emotional Appeals
1. Humor.
Message strategy
We have covered up the flaws that are present in previous ads of tarang. Both rational and
emotional appeals are used in the campaign. The idea was to get emotionally connect with
the target audience along with clearly communicating the functional benefits of the brand.
The techniques that have been taken into consideration are
Humor
Drama
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Exaggeration
Exaggeration and humor are used to generate interest and to have a high recall rate. Both
are in line with the campaign idea that is enjoying the colors of life with tarang. Our major
target audience which is of Punjab can easily associate themselves with the female
character that is shown in the ad, the idea was to make tarang a character which can
change your life.
Promotional Mix
Currently tarang is working on the following promotional mix:
- TVC
- Print AD
- Radio AD
- OOH
Our Recommendations:
We are lowering the TV and Print budget because due to hectic schedules of our target
audience cannot get exposure to these media. Secondly the media habits of our target
audience is changing, they spend now more hours in front of computer than TV. The
listenership of radio is increasing day by day. Our target audience do listen radio when
they are travelling and at night (most of the favorite RJs come at late hours of day). And
with the increase in online marketing tarang should focus on this medium that is why we
have allocated 8% to internet. Apart from that tarang should do a lot of BTL activities to
give their customers a chance to experience and to live the brand.
TVC Storyboard
(Scene 1 to Scene 7 are all in sepia tone depicting the colorlessness of the patients life in
the hospital)
1st Scene: The Ad starts with the signboard in a hospital displaying directions.
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2nd Scene: Scene starts with the focus on a male patient and zooms outwards showing 2
ladies, one of which is a doctor, other one is the mother of the patient. As the camera
zooms out, the doctors puts a hand on the mothers shoulder and tells her that the patient
aka her son is not well at all to which the mother shouts dramatically, “NO!”
3rd Scene: The patient and the mother are in a catatonic state; depressed and upset. The
nurse rolls in a table serving tea to the patient.
4th Scene: The patient looks at the tea, and doesn’t like it at all and makes a weird face at
the camera.
5th Scene: He calls out to her mother that even his tea is as colorless as his life now.
6th Scene: Unwillingly he makes use of what he has and goes to take a sip of the tea, when
suddenly a female voice talks out to him at tells him to stop.
7th Scene: We see a girl running away to something while shouting that if there would be
tea, it would be made with Tarang only!
8th Scene: We see that same girl take out a Sachet of Tarang Powder Milk, as soon as she
takes it out of her bag the colors fill in the screen depicting that Tarang has brought colors
back to life in this sad depressed situation!
(8th scene onwards, there are colors in every scene)
9th Scene: We see the girl using Tarang to make a cup of tea.
10th Scene: We see the same girl taking the cup of tea somewhere.
11th Scene: We see are coming along holding the cup of tea in a tray.
12th Scene: We see her entering a room, and then she gives a shy smile.
13th Scene: We see the patient on the bed alone, all sad and depressed.
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14th Scene: We see the girl presenting the cup to the patient while telling him that true
colors of tea are with Tarang depicting that the true colors of his life shall also be filled this
way!
15th Scene: Then we the patient taking a sip from the tea made with Tarang and he seems
pleased.
16th Scene: Then there is a shot of the Tarang Powder Milk Product.
17th Scene: In the last scene both the patient now all healthy, and the girl are seen sitting
on a large swing having tea together where they both agree that Tarang is right mix for a
tea.
Radio Script
Tarang song …..
Script: Rung , zaiqa aur maza her ache chai ka mayyar…
jis ko momkin kia sirf tarang ne …
jee haan , yehe hai chai ka sahe jor ….
tarang se hai jenay ki ommang , chai k rang … tarang k sung
Tarang song …….
Campaign Idea:
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Target Audience:
Everyone who enjoys a good cup of tea, full of color and aroma, is the
secondary target audience of Tarang Powder Milk.
Brand Positioning:
It is a tea whitener which is portable; gives tea a strong color and gives you
reason to look forward.
- Consumer Insight:
Tarang is the only powdered milk which relates to its consumer in context of its
portability. All other powdered milks haven’t worked on such consumer insight.
Consumers relate the credibility of the taste to its color as well. Therefore, they
seek a tea which gives them a strong color.
Brand Personality:
Tarang is helpful, cheerful and fun loving.
Appeals:
- Emotional: The guy and girl standing as a couple – bright colors of clothes
worn by the couple - “Chai ke rang .. Tarang ke sung”
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