ICE TEA

MARKETING MANAGEMENT
Re-launching Product
ICE TEA

GROUP MEMBERS
• Haris Farooq(17093)
• Mirza Faraz Ali Baig(16876)
• Mohsin Aziz(17027)
• Saad Ahmad(20046)
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SUBMITTED TO
Sir Rehan Shakoor
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LETTER OF ACKNOWLEDGMENT

It has been a pleasure to be REHAN SHAKOOR's students. We would like to

thank him for giving us the chance to apply the theories of Marketing
Management in the real world.

His lectures have been very interesting. We are extremely grateful to him for
the knowledge he imparted to us and appreciate his efforts for providing us full
support, encouragement and valuable guidance.

Thanking You.
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TABLE OF CONTENTS
S. # Description Page #
1 Executive Summary 4
2 Mission Statement 4
3 Vision 4
4 Goals 5
5 SWOT Analysis 6
6 Industry Analysis 7
7 Competitor Analysis 7
8 Competitive Advantage 8
9 Reasons For Failure 8
10 Re-launching Product 9
11 Pricing 11
12 Break- Even Analysis 11
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EXECUTIVE SUMMARY

Basically overall summary is about how TAPAL ICE TEA came in market, serves time
and get failed. We examine the marketing strategy for this company and also make
SWOT analyses, apply the 4’ps and marketing objective. We have to choose the
target market of the customers which suits our culture as well. When, where and
how we can launch our product. Launching the product in the right time and in
the right way is important, and how we can position our product in the
consumers mind.

MISSION STATEMENT

To satisfy our stakeholders and as a guiding principle to our business;

benchmark for Quality, Creativity and Ethical values. Achieve leadership in all
categories of our core business and diversify in areas which compliment the
core business.

Our mission is not only providing good and valuable products to our customers,
but also builds good relationship with our customers.
We manage to acquire this excellence by recruiting and developing exceptional
quality individuals, providing them with good working conditions and attractive
benefits, opportunities for growth and high degree of employment security.

VISION

To provide value and quality to our consumers; our aim is constantly to provide
world class service for our customers, deliver value for our products and make
TAPAL a great place to work for our employees.
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GOALS

 To transform our competencies into the best advantage for our clients.

 To offer quality services with integrity, expertise and professionalism to

enhances our client's operation.

 To offer personalized services according to the clients need.

PRODUCT OVERVIEW

The research and development at TAPAL decide to introduce TAPAL ICE TEA
for youth market segment because they wants something different and was ready to
taste ice tea. TAPAL Ice Tea is basically a refreshment tea combined with health preserving
properties of tea. Offers instant refreshment combined which was rich in Vitamin C and
antioxidants; it is non-carbonated, contains no preservatives and is low in sugar as
Well. It’s a healthy choice for both young and other age brackets.
Product packaging:
Sachets:
25 gm powder sachets in three flavors:
 Lemon
 Lime
 Peach
320 ml can in three flavors:
 Lemon
 Lime
 Peach
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SWOT ANALYSIS

STRENGHT:
1. Satisfactory financial resources.
2. Good organizational structure.
3. Effective distribution network.
4. More focused of research and development.
5. Trained and skilled staff.

WEAKNESS:
1. Nature of the product.
2. People are not getting attracted to the product.
3. Packaging of the product is not attractive and user friendly.

OPPORTUNITIES:
1. Entering in new market.
2. People want to try out the product.
3. It can attract health conscious people.

THREATS:
1. Increase in competitors.
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2. Risk of failure.
3. Rise in substitutes.
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INDUSTRY ANALYSIS

ICE TEA serves in a glass with ice. It has a very little sweeten taste.
TAPAL ICE TEA has 3 different flavors including peach, lime and lemon
flavor in it.

People often don’t use tea in summers, but you can’t stop the addicted
once. Ice tea specially used in summers and this can also be served as any
other soft drinks. TAPAL ICE TEA is basically a refreshment tea combined with
health preserving properties of tea. Offers instant refreshment combined which was
rich in Vitamin C and antioxidants.

In Pakistan tea is known and served as a hot beverage, but TAPAL l came
up with an idea to introduced ice tea with different flavors. Direct
competitor in Pakistani market for TAPAL ICE TEA is Lipton Ice tea.
But Lipton ice tea is only available in some stores.

COMPETITOR ANALYSIS

 Pepsi
 Coca Cola
 Pakola
 Lipton Ice Tea
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COMPETITAVE ADVANTAGE:

 Its moderate caffeine stimulates energy consumption, giving your body a

gentle physical boost that helps you keep carrying out your workout,
doing sports or doing any sort of physical activity energetically.
 It keeps you relaxed and gives fully alert state of mind and helps you to
relax.
 Maintaining 8 glass of water intake is necessary for human intake. In
summers maintaining a healthy body fluid is bit challenging. TAPAL Ice
tea is a good alternative to maintain a body fluid than carbonated drink.

REASON FOR FAILURE

Through research it has been found that TAPAL ICE TEA is failed due to
following reasons which are as follows:

 UNAWARENESS:
TAPAL failed to create awareness in their customers. In Pakistan, ice tea
is new concept so it is necessary for detailed awareness in the market to
cater the youth of the country.
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 DISTRIBUTION:
TAPAL ice tea failed to place its product in the shelf of the retailers.
Distribution is everything in the business because if product can’t get its
place it would be failed and customers are unable to find out your
product.
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 LIMITED TARGET MARKET:

Another reason of TAPAL Ice Tea failure is that they targeted the limited
markets that are why many people were unaware of the product.

 IMPROPER ADVERTISMENT:
Their advertisement strategy regarding the ice tea was not proper at all.

RE-LAUNCHING A PRODUCT
For most firms, re-launching failed products requires understanding the ways in
which the failed product has met the value needs of different customers and the
quality of execution. Re-launching a failed product should be done with the help
of outsiders. Company gained experience from a failed launch can be more
helpful in the second launch. Like company can easily understand now the
attributes that why they product failed. Following are some key points which
help in re-launching a product:

 Make sure that your product is matching the requirements of the

customers.
 Locate your key customers. Call or invite your customers for testing
your product that what they want to built a positive impression in their
mind. Because your customers is the best source of the information to
get what they want.
 Launch your product in a right time and in a right place.
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 Inform your customers about your new product features and what you
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had done innovation in it.

 Thinking in terms of customers like give them some interactive
product quality that they convert from dissatisfied customers to your
loyal one. Because you cannot make your customers fool for a long
period.
 Make your distribution effective. May be your product get failed because
of your distribution channel like when your customers want your product
the product was not available.
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 Create your marketing mix like:

Product features and benefits

Pricing and discount

Quality

Service

 Methods of promotion:
o Advertising.
o Sales promotion.
o Mobile marketing.
 The reason for doing this is to present information to customers.
 To increase demand.
 To differentiate our stores with others.

 Select the right communication channel. Like asking your customers

about their habits of collecting information (magazines, internet).

 Improve your packaging, because main cause of failure of Lipton ice tea
is its packaging of the product is not attractive and user friendly.
 Advertise your product in the Newspapers taking a size of (20*3).
 Making your product available everywhere in the stores. Place your
product in the eye level of the customers and in the counter.
 Select busy streets for your billboards like:
DHA:Punjab Chorangi towards Ashiyana, Schown Chorangi
surroundings.
Reason: Because all multinational company prefers to place their
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billboard of there because it is an attractive place for billboards.

 Organize the product launch as a project with target cost and schedule for
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every activity. Include a learning period for your organization and take
the time into account what is required to win new customers and trade
partners.
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Pricing:
The production is the ICE TEA is batch type, and 100000 units in one batch in 6
month production.

Total Fixed Cost: 1 million

Add: Variable Cost:

Packaging material: 0.3 million

Direct labor wages: 0.7 million

Direct material: 1 million

Other cost & overheads 1 million

Total Cost 4 million

Per unit Cost pertains = total cost of production / total units in one batch

Per unit Cost pertains = 4 million/0.1 million

Per unit Cost pertains = 40 rupees the target profit at starting is quite less
because the motive of the company is to capture the customers.

Break Even Analysis:

B.E = Fixed Cost

Selling price per unit- Variable cost per unit

B.E = 1 Million

45-30

B.E = 666667 units

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Budget regarding Marketing Plan:

The Estimated cost that will incurred while marketing of ICE TEA is about 0.14
billion for one year.

The details are as followed

T.V: Advertisement on T.V with different celebrities for one year will cost
approx. 0.1 Billion.

NEWS PAPER: Advertisement in leading newspaper will cost approx. 2

million.

RADIO: For 30 seconds advertisement for 2 months will cost approx. 4 lacks.

MAGZINE: For 1 month advertisement in AKHBAR E JAHAN will cost

approx. 2 lacks.

BILL BOARDS: For 3 billboards on main locations acquiring will cost approx.
10.5 million

FREE SAMPLING TO RETAILORS: Free sampling to main retailers will

cost approx. 3 lacks.
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