Assignment no: 01

Introduction
The product we have selected is “Danedar” manufactured by Tapal Tea
Private Ltd.

1. Marketing Mix
i. Product: Brand Name: Tapal Danedar
ii. Price: The company adopts cost-leadership approach in which it continuously endeavours
to achieve maximum efficiency so that it can sell its product at lower price its main
competitor’s product, Yellow Label Tea.
iii. Place: The marketing channel of the brand consists of manufacturer, distributor, retailer
and consumer respectively. The company has big warehouses across the country from where,
after manufacturing, the product reaches to distributors as per market size and demand. It also
exports its product to some countries like UAE, Canada etc.
iv. Promotion: TV ads are used to raise the awareness among the target customers. For this
purpose, help is taken from entertainment and news channels. Other main promotional tool
used is bill boards advertisement in metropolitan cities.
2. Company and its Marketing Strategy: The Tapal Tea Company was founded by Adam
Ali Tapal in Karachi in 1947. It launched its first brand known as Family Mixture. It
continued to gain wide popularity among consumers and expanded its product line. Now, it
has several other brands; such as Tez Dum, Mezban, Chenak, Green Tea, Gul Bahar, Tapal
Ice Tea etc. By ignoring marketing aspect, it couldn’t have gained the current position. It’s
marketing strategy revolves around following three objectives;
i. To create strong customer awareness against unorganised and/or unbranded products
ii. To establish a wide brand recognition by capturing market shares in multi-segment
iii. To become market leader in that specific segment through strong R& D.
3. Competitor Analysis
Unilever, Vital and Tetley are the main competitors of Tapal. In general, the competition with
UL is very severe. It grasps 41% market share, while Unilever is a market leader with 43%.
It’s widely consumed brands are Lipton, Supreme and Red Rose. Pakistan’s tea market is
classified into two sections; one is organised market and other is unorganised. According to
one estimate, the latter accounts for more than 45% of total tea consumption in the country.
This is because majority of our population live in rural areas. Due to less per capita income
and being unaware of health issues arise from smuggled tea, branded products could not have
got strong roots in rural areas as they are doing in urban areas. Apart from direct substitutes
discussed about above, indirect ones such as coffee, carbonated drinks etc. can pose a
possible serious threat.
4. Characteristics of our selected brand affecting consumer behaviour
Product price: As per law of demand, price of a product and its quantity demanded are
directly proportional to each other. Looking the same thing from another angle, businesses
compete with each other either on the basis of quality or cost. In today’s most competitive
corporate world, it’s hardly possible to completely differentiate your product from that of
your competitors especially in food products. Firms try to gain maximum efficiency in order
to grasp maximum market share and survive as well. If we look at Tapal Danedar, it is
cheaper than Lipton.
Huge Availability: The product is available at all retail stores and superstores throughout the
country. It is displayed on shelves and customers’ eyes easily catch it there. They buy it with
no doubt left in the mind because the company has developed a positive image of its brand in
the consumers’ minds.

5. Marketing Environment: It encompasses microenvironment and macroenvironment.

Let’s take a look on each one separately.
Microenvironment: Pakistan is one of the highest tea consumption countries with respect to
per capita consumption. According to FAO report, each Pakistani is consuming one kilo of
tea per annum. Per capita consumption of Black tea has increased about 36% during last
decade. If we look at overall picture, domestic demand for tea is expected to rise by 77,844
tonnes in next 10 years. All these figures show a positive picture for the brand we selected.
The company needs to modify its product taking into account the taste of customers
especially younger generations.
Pakistanis are very sensitive towards the products with
respect to their legality from religious viewpoint. In today’s information technology era, it
has become very easier to spread fake and negative image of products into customers’ minds.
The company should keep itself updated and respond to such issues timely.
Macroenvironment: The economic factor is of great significance that companies are
concerned about. Pakistan is 3rd lagest importer of tea in the world and imports keep rising.
Nowadays, Pakistani economy is facing severe crisis due to significant rupee devaluation,
huge trade and fiscal deficits etc. This ultimately results in higher cost of production for tea
businesses. Due to this, tea prices have risen significantly in last few years that can limit its
local consumption or customers might get lower quality product in recent future.
Another factor that company should focus on technological factor. Technology is getting
advanced day by day and it helps to improve product quality on frequent basis. The company
adopts updated technology to fulfil its customers’ needs in a better way. Tapal emphasizes
the importance of innovation in its mission statement. That is why it is pioneer of certain
trends; such as 1st company to introduce soft packaging and metal-free tea bags.