THE LAUNCH PLAN OF TAPAL – TEA MATE

Presentation By:Obaidullah Ali Khan

EXECUTIVE SUMMARY• We are extending the brand Tapal into the tea whitener category by launching tapal

tea Mate for Pakistani consumers; ensuring ease of availability in the market at an affordable price in an attractive packaging (with a small SKU for trial purposes).

• An integrated marketing communication strategy will be used to create awareness, allocating budget for broadcast media 30%, Print media 10%, Digital Media 8%, Out of Home 30%, BTL 12%, Sales promotion 10%.

• Metrics such as perception, performance and financial will be utilized to keep a track on the progress.

• The trade plan involves incentives in sales promotion, discounts, schemes and special packaging. Incentives are provided to retail also. After assessment of competitive environment we have sought to maintain a point of differentiation.

• The vision for next 3 years is intending to capitalize upon the opportunities by innovation in variants (flavored tea whitener), communication aggressiveness and distribution enhancement.

INTRODUCTION TO THE COMPANY• Tapal's remarkable success is the combined efforts of three dynamic generations of the

Tapal Family.• Established in 1947, Tapal started out as a family concern under the personal

supervision of its founder, Adam Ali Tapal.• Against tough competition Adam Ali's unique blend, later named Family

Mixture,became a hot favorite and eventually the largest selling brand in the unorganized teamarket.

• A well trained tea taster and tea connoisseur himself, Aftab Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan.

• "Never compromise on quality" has been the motto at Tapal since the very beginning. • Making a modest beginning over half a century back, today Tapal has become the

largest, 100% Pakistani owned Tea Company in the country.

MISSION STATEMENT

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

KEY OBJECTIVES OF TAPAL• Satisfy our stakeholders and be a benchmark for Quality, Creativity and Ethical values in our

business. • Achieve leadership in all categories of our core business and diversify in areas which

complement the core business. • Provide products and services that meet customers’ requirements, expectations and agreements

relating to all aspects of Tapal Integrated Management System.• Prevention of injury and ill health by continuously identifying hazards and reducing risks to

people, facility and business.• Ensuring that the Tapal processes and products are environment friendly and do not contribute to

polluting the environments in any manner.• Constantly define & update measurable Quality, Health, Safety, Environment, Food Safety and

Information Technology Service Management improvement objectives for Tapal products, services, processes and system.

• Establish effective arrangements for communicating with all stake holders throughout the food supply chain regarding all applicable aspects of Tapal Integrated Management System.

PRODUCTS AT TAPAL• Tapal Danedar

• Tapal Family Mixture

• Mezban

• Chenak

• Tezdum

• Gulbahar

• Tapal Special

• Shades

TEA WHITENER CATEGORY PROFILE• The year1992 saw the introduction of tea whitener in Pakistan. • Tea whitener, an area of innovation in the packaged milk sector is currently the

fastest growing category in Pakistan. • One of the greatest strengths of tea whitener is that it is a less costly product

compared to packaged milk because it contains small quantities of milk or milk fat replacers.

• According to research it takes only 30% milk to make a litre of tea whitener. • The market for tea whitener in Pakistan accounting for a share of 29% in milk

industry .• Tarang being the market leader in this category has achieved 65% of market share

followed by other competitors like – EveryDay lite (Nestlé), – Chaika (Shakarganj) – Tea Max (Haleeb)

CATEGORY PROFILE: PROSPECTS

• Traditionally, tea is one of the most consumed beverages in Pakistani cuisine.

• Given the increment in the level of disposable income of many Pakistani consumers (while inflation remains on the rise), they have become willing to try new products and to enrich their quality time to freshen their minds with a cup of tea.

• As a faster pace of life emerges due to urbanization; tea whitener now offers tea lovers the convenience of a re-sealable pack that can be neatly and hygienically stored in the refrigerator between uses.

REASON TO EXPAND• A brand as an asset must grow to continue delivering profit to the

company.• Tapal is a strong brand in Pakistan and has a potential in its growth.• This creates an opportunity for Tapal to penetrate even more in this

segment.• As tea whitener is a specialized tea creamer that makes the perfect cup of

tea guaranteed to transport tea-lovers into a state of sheer bliss any time of the day.

• There is a rapid growth potential in this category because tea whitener is a team-creamer that combines convenience with lasting quality and real value for money.

COMPETITIVE ENVIRONMENT ANALYSIS• There are many brands dominant in the markets that offer tea whiteners to be used

specifically for the purpose of tea. • We have major brands like

• Tarang (Engro), • EveryDay lite (Nestlé), • Chaika (Shakarganj) and • Tea Max (Haleeb). but what sets them apart is the degree to which they have differentiated themselves amongst the mind of their consumers.

• However , Tapal offers the best quality of tea whitener (Tea-Mate) that blends perfectly with tea, has competitive price since Tapal has a strong brand identity and trusted name as well.

COMPETITORS OF TAPAL TEA-MATE

TARANG TEA WHITENER• It has a 60% share of the tea whitener category.• It is available in the market at Rs 18/- .• It positioned itself as the perfect tea whitener by

creating a brand personality that would appeal to its target market i.e., fame.

• It used famous actors from Pakistan’s movie industry to create the appeal. It carries with it the impressive brand name of being Engro’s product.

• Tarang strategy is to penetrate the masses through differentiation via taste.

COMPETITORS OF TAPAL TEA-MATE

EVERYDAY LITE• EveryDay Lite is a “specialized tea creamer

launched for the weight conscious.”• Every day Lite is the perfect blend for tea, they

have been in the tea market the longest and have built a sufficient share in the hearts and minds of their consumers.

• the product is currently available in two SKUs: 400g priced at Rs 285, and 200g for Rs 150 and is significantly more expensive than regular EveryDay (500g is priced at Rs 245).

• Nestlé EveryDay is the first tea creamer brand in Pakistan to launch a low-fat version of its product.

COMPETITORS OF TAPAL TEA-MATE

CHAIKA TEA WHITENER• Relatively New launched product for Shakarganj

that is priced at Rs 15/- . • This is a direct competitor for Tapal tea-mate as

both of them are priced almost the same. • Chaika targets the same SEC classes as well as is

associated with Shakarganj’s Good milk.

COMPETITORS OF TAPAL TEA-MATETEA MAX • Haleeb tea max living up to the Haleeb food tradition

of providing high quality and value added products. • Haleeb tea max, a premium tea whitener that

promises you a richer taste, elevates your coffee/tea drinking experience and adds convenience to your fast-paced lifestyle.

• It is available in the market at Rs.16/-• Tea Max is special milk that provides rich taste in a

beverage.• It is also available in the unique and delicious

cardamom flavor, Tetra Pack brick Aseptic packaging.

CONSUMPTION RATE IN DIFFERENT CITIES

KARACHI LAHORE ISLAMABAD FAISALABAD

TARANG 1 1 1 1

EVERY DAY LITE 4 2 3 2

CHAIKA TEA 3 4 3 3

TEA MAX 2 3 2 2

*1 BEING THE HIGHEST 4 BEING THE LOWEST

MAJOR AREAS CONTRIBUTING TO THE SHARE OF THE TEA WHITENER CATAGORY

CITIES MARKET SHARE

KARACHI 10%

LAHORE 27%

ISLAMABAD 8%

FAISALABAD 8%

COMPETITOR POSITIONING

POSITIONING OF EVERYDAY LITE ROOT STRENGTHNestle oldest player in the market.• best quality fresh milk

COMPETITIVE ENVIRONMENT• Anything that gives color to the tea.

TARGET• those who wants their tea to be prepared easily and immediately• target segment for the brand is the urban health conscious consumer

INSIGHT• For those who are weight conscious and still loves to add tea-whitener for

memorable moments in life• it is a creamy Dairy Whitener which is specially made to add a rich, smooth taste

to your tea – every time, every day.

BENEFITS• zero sugar and less than one percent fat• Helps in balances your sugar level

VALUES PERSONALITY AND BELIEFS• Made for each other

REASON TO BELIEVE• Add tasty magic in tea• pure fresh milk gives you that perfect rich taste that only

specialized milk can, so you can enjoy the same delicious cup of tea each time!

POSITIONING OF TARANG ROOT STRENGTH

• Product of Engro Foods. • First one to launch Liquid Tea Whitener

COMPETITIVE ENVIRONMENT• For all those who want strong taste and color in tea.

TARGET• Those people who want their milk to be white, carefully

processed and good for their health.

INSIGHT• Tarang’s insight is to create differentiation via taste.

BENEFITS• Best bio-available proteins.

VALUES PERSONALITY AND BELIEFS• Fame, and glamour world which will appeal the target

market

REASON TO BELIEVE• Only source of lactose.• Enriches Tea Color.

POSITIONING OF CHAIKA TEA WHITENERROOT STRENGTH

• Offers a perfect cup of tea

COMPETITIVE ENVIRONMENT• For all those who enjoys drinking

beverage and have a CHASKA of drinking it.

TARGET• Small towns and villages, for a

perfect cup of tea

INSIGHT• By adding chaika, you can get a

perfect blend of tea with taste in every sip of it

BENEFITS• Tasty tea with every sip of it

VALUES PERSONALITY AND BELIEFS

• A true mate of tea.

REASON TO BELIEVE• It gives CHASKA of tea by blending

with tea.

POSITIONING OF TEA MAX ROOT STRENGTH

• A thick liquid tea whitenerCOMPETITIVE ENVIRONMENT

• For all those who want to have a strong and rich flavor cup of tea.TARGET

• People belonging to Punjab who are energetic and fun lovingINSIGHT

• Thick tea whitener makes a perfect combination with a

strong tea.BENEFITS

• Chaika enables you to have strong cup of tea.VALUES PERSONALITY AND BELIEFS

• Energetic, Fun loving and strong.REASON TO BELIEVE

• Thickness ads more creaminess.

SURVEY

MARKET RESEARCH

• A survey of 108 respondents were conducted in order to analyze their behavior towards tea whiteners.

• The objective of research is to gain consumer insight regarding the launch of tea whitener.

• Since Tapal Family Mixture has a strong presence in the mind of consumers so research was conducted if Tapal Tea launches Tea Whitener will it be successful or not.

DO YOU USE TEA WHITENER?

Out of 108 respondents 79 said they use Tea Whitener, this means tea whitener is a growing business and being consumed as an essential element for the formation of tea

Yes73%

No27%

YOU USE TEA WHITENER IN

66 people out of 108 respondents are using tea whitener in Liquid form which means Liquid tea whitener satisfies all the need of people and it has all the attributes which are desired by people.

Powdered61%

Liquid 39%

WHICH TEA WHITENER IN LIQUID YOU USE?

This Shows Tarang is the market leader and most number of sales followed by Tea Max and Everyday

Tarang

Tea Max

Chai Mix

Everyday

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13

15

YOU USE TEA WHITENER FOR?

Majority of people around 64% people use tea whitener for color as according to them tea whitener enriches the color of tea

Color64%

Flavor21%

Both15%

WHICH PACKAGING YOU BUY IN LIQUID FORM?

500 ml30%

250 ml70%

Out of 108 respondents 76 people buy 250 ml packaging of tea whitener and rest 32 buy 500 ml.

WHICH TEA YOU USE?

Tapal Family mixture is the market leader in tea category and 32 out of 108 are using Tapal Family Mixture which is Tapal Family Mixture is very famous among masses.

Tapal Family Mix-ture

Tapal Danedar Lipton BrokeBond Others

32 3127

12

6

WILL YOU BUY TAPAL TEA WHITENER?

43% says that they will buy tapal Tea Whitener and think that’s tapal Tea Whitener will complement tapal Tea In a much better way.Where as 11% said that they will not buy Tapal Tea Whitener.

Yes43%

May be46%

No11%

SUGGEST NAME FOR TEA WHITENER?

Tea Mate56%

Milaap10%

Tea Vite33%

57% of respondents thinks that tea mate is the best name for Tapal Tea Whitener.

SURVEY RESULT• Mostly people consume liquid tea whitener than powdered one. • People use tea whitener for enriching color of tea and thinks without it

tea has no taste and color with normal milk.• In tea whitener Tarang by Engro foods is the market leader in both

format i.e. liquid and powdered format.• People are ready to buy Tapal tea whitener as they use Tapal family

mixture tea and thinks that Tapal tea whitener will form a perfect combination with family mixture.

LAUNCH PLAN

LAUNCH OBJECTIVES• To gain 10% market share in first year and try to gain 30% awareness.• To deliver more value to customers for money.• One way to enhance brand equity.• To sustain brand in mature markets.• Enhance profitability of the company.

PRODUCT• The Product is tea Whitener, tea whitener is a growing segment in

Pakistan and it cost less than normal one liter milk because it contains only 30% of milk and rest vegetable oil.

• Tapal Will Launch Liquid Tea Whitener

PRODUCT COMPOSITION• Milk 40%• Vegetable Oil 42%• Milk Fat 8%• Sugar 6%• Stabilizers 4%

PRODUCT BENEFITS• Tapal Tea Whitener will contain more percentage of milk protein that

means it will be more healthy as compared to competitors.• Similarly it will have 40% of pure dairy milk which is more than

competitors.• It will also enrich you tea flavor and will be a perfect combination of tea

and tea whitener.

“To be the most widely used tea whitener for not only tea but for coffee as well in 3 years”

BRAND VISION

BRAND NAME

“Tea Mate”• Tapal tea whitener is in perfect synergy with tea and the name try’s to

create a distinctive image that no tea is complete without Tapal Tea Whitener.

SEGMENTATIONGEOGRAPHIC SEGMENTATION Urban Cities of Pakistan Targeting the same people as of Tapal family mixture.DEMOGRAPHIC People who belong to social class A and B. For the complete household.PSYCHOGRAPHIC Tea Mate is for those people who value family and consider family is an integral part of

one’s life and those who enjoy tea with familyBEHAVIORAL SEGMENTATION High Quality and affordable prices and high availability are the benefits. To Use tea whitener in place of normal Milk and Gawala Milk in making tea.

POSITIONING OF TEA-MATEROOT STRENGTH- Symbol of home.- Packaging of Red color same as used by Tapal since its inception.- Portraying a family based culture.- Pride of Pakistan.

COMPETITIVE ENVIRONMENTAny Liquid or powdered Milk that you add in tea for enriching color and flavor.TARGETPeople who consider Tea whitener as an integral part in formation of good tea.

INSIGHTA Tea whitener which is the right combination for a strong and vitalizing cup of tea with best quality

BENEFITS- It will contain more portion of Pure Milk i.e. 40% as compared to competitors- Offers tea lovers the convenience of packaged tea-whitener with hygiene.- Tapal Tea Whitener will contain more percentage of milk protein signals a healthy tea-whitener.

POSITIONING OF TEA-MATE

VALUES PERSONALITY AND BELIEFS• Promotes family oriented culture.• Nurtured by 3 generations.• Happy.• Committed and Loyal

REASON TO BELIEVE• Rich taste that has been maintained since decades.• Continuous delivery on quality aspects.

POSITIONING OF TEA-MATE

BRAND IDENTITY

TEA MATE BY TAPAL TEA

Tea mate will use brand identity of Tapal Tea and Red color which is being used by Tapal since its inception.

COMMUNICATION PLAN

360 DEGREE COMMUNICATION PLAN

Broadcast Media• TVC• RADIO

Print Media• Newspaper• Magazines

Digital Media• Social Media• Email Marketing

Out-of-Home Advertising• Hoardings• Tradeshows• Transit Advertising

BTL Activities• Shelve Spacing • Taste Testing• In store

Promotion

Celebrity Endorsement• Sanam Jung

Broadcast Media• TVC• RADIO

COMMUNICATION OBJECTIVES• To

increas e the brand Equity by having a loyal customer base.

Relationship

• To help the customer to recall the brand and increas e repurchase rate by 20%.

Repurchase

• To generate sales through trail.

Trial

• To Create the top of mind awareness of product 30% in 2 years

Awareness

COMMUNICATION THEME

• A single minded message is always welcoming.• We will be using a single message and promote it through integrated

marketing strategy.• Communicate: Tea Mate- A Tea whitener which is the right combination

for a strong and vitalizing cup of tea.

BIG IDEA

“To provide the right match for the perfect refreshing cup of tea to revitalize oneself”

TAGLINE TO BE PROMOTED

“Tea Mate ke sath. Chai lajawab.”

COMMUNICATION BUDGET ALLOCATION

Broadcast Media

30%

Print Media10%

Digital Media8%

Out of Home Advertising

30%

BTL Activities12%

Sales Promotion10%

BROADCAST MEDIA• TVC

– We will use prime time slots in high TRP dramas like Zindagi Gulzar Hai and Dil-e-Muztar (HumTv) etc

– We will use big channels like Geo, Ary Digital,Hum Sama , Express, Dawn, and Ary Zauq etc

• RADIO– We will use clutter breaking vocals to catch our target audience in

peak hours morning, evening, and night hours. FM 107,106.2 and 103

PRINT ADVERTISING• NEWSPAPER

– Dawn, The News, Jang• MAGAZINE

– In order to reach the mind of target audience we will place the print ads in the magazines i.e (Zaika Pakwan, Akhbar e jahan etc)

DIGITAL MEDIA• SOCIAL MEDIA

– Use facebook, Twitter, google+, to create a word of mouth.

• SEO(Search Engine Optimization)

OUT OF HOME ADVERTISING• HOARDING

– We will place hoarding in targeted areas i.e( port grand, Zamzama, Karsaz, 26th street, and etc)

• MOBILE ADVERTISING– Painted Trucks & Rikshaws, Paan walay cabins and Corner shops.

• TRADESHOWS– We will organize and participate in the trade shows i.e (Dawn lifestyle

expo, inauguration of new malls, Cinemas, etc)

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Quarters •ATL Activities •BTL Activities

1st In this phase we will only do ATL Activities to create awareness because it’s a new product .Heavy promotion through TVC, Print ad and radio.

Sampling of Tea Mate in different parts of the country focusing mainly in the rural areas.Trade promotions so that retailers are willing to keep Tea Mate i at shelves

2nd We will still focus ATL Activities with addition of using PR.

Trade promotions would still be carried out but major focus would be on ATL

3rd We will reduce the frequency of ads both in TVC and print ad as well as time duration of TVC.

In this phase our major focus will be on BTL activities.

4th We’ll start with out TV sponsored program that will run for a duration of 3 months (1 episode each week).

Different festival/fairs will be organized which will indulge our masses with events. The concept revolves around providing the consumers with an inspirational value showcased through colors and vibrant lifestyle.

COMMUNICATION PLAN TIMELINE (QUARTER WISE)

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BUDGETEXPENSES PRICE RS

Salaries, wages of BA’s500,000

Market Research

Primary research 200,000

Secondary research 400,000

Commissions to Retailers, Dhabba walas 500,000

Billboards 450,000

Advertising (TVCs) 2,500,000

EXPENSES PRICES

Print Advertisements 500,000

Public relations 150,000

Events 5,000,000

Channels

Travelling & Transportation 4,000,000

Channel communications and training 150,000

Channel promotions and incentives 575,000

Total Marketing Budget 14,925,000

BRAND SCOPE PYRAMID OUT OF SCOPE

STRETCH

EXTENSION

CORE

TAPALJAM

TAPAL SUGAR

TEA MATE

TAPAL TEA

TRADE MARKETING PLAN

TRADE MARKETING PLAN• Trade Marketing Plan will compromises of 30% of the total budget.

Although the product would be available at all leading stores in Karachi , Lahore , Faislabad , Islamabad , Quetta , Multan and Peshawar .

• Our main target would be specific big Super Markets and Departmental stores and Retailers where consumers visit frequently to buy daily groceries and breakfast items.

• Tapal Will use its existing distributors to distribute its tea whitener(Tea Mate), this will enable tapal to save a huge amount cost as they don’t have to appoint a new distributor for Tea Mate.

• We would Launch Tapal Tea Mate in three sizes comprising of 125ml , 250ml and 500ml respectively

• As 250ml pack contributes to 65% of total category sales so we would specifically focus on 250 ml Tea Mate pack for distribution.

RETAILERS• The small and medium sized retailers would be the main source

distribution to majority of the target market • 70% of the sales of tea whitener comes from Big General Stores and 15 %

from local Kariana Stores (also includes some Pan Shops)• To encourage retailers to sell Tea Mate they will be given discount

schemes by the company in which they will be given 6% off on each carton of 12 liters if they sell 25 carton in a month, along with it retailers would be given new advertisement boards on top of their shops sponsored by Tapal Tea MATE , shelves and racks would also be provided.

SUPER MARKETS / DEPARTMENTAL STORES

• We would also aim our distribution through Super Markets and Big Retailers where Tapal Tea is already available and company have good relations with them.

• For this purpose our target would be IMTIAZ , Chase , EBCO , Utility Stores , Naheed , Hyper Star , Agha’s , Motas and different big convenient stores in shopping malls and METRO in Karachi.

• Hyperstar , Hyper Mart , Makro , Metro , Naturally Wolesome and other big retailers in Lahore.

• Similarly for different Urban Cities as well.

TRADE MARGINSFollowing are prices of Tea Mate and the prices at which it will be sold to distributors.

Stock Keeping Units

Distributor Retailer Price Market Selling Price

500 Ml 35 Rs 37.5 Rs 40 Rs

250 Ml 18 Rs 20 Rs 22 Rs

125 Ml 11 Rs 12.5 Rs 14 Rs

“WHAT IS NOT MEASURED IS NOT MANAGED”

METRICS

PERFORMANCE METRICS• In order to assess the performance of brand-building activities on over-all

business results for Tapal Tea Mate, we will be conducting periodic consumer research. The research will collect the following details:Purchase Decisions (i.e. customer’s actions with regards to purchase of Tea

Mate )– Customer Leads Generated– Customer Acquisition– Trial Purchase of Tea Mate- packaged with tapal tea packs– Repeat Purchase (intent and actual purchase)– Preference of product – willingness to forgo purchase of product if product is unavailable.– Ability to charge a price premium

PERFORMANCE METRICS

Loyalty towards Tapal Tea Mate (i.e. behavior of consumers over time rather than initial launch stage)

• Customer satisfaction with product• Retention of customer• Revenue per customer• Share of Wallet• Referrals

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DISTRIBUTION & SALES TARGETS• DISTRIBUTION– INITIAL STAGE In all Kiryani stores and small local stores of sub urban

cities like:• Quetta, Sukkur, Hyderabad, Multan, Peshawar and selected urban cities like; • Karachi, Lahore, Islamabad, Faisalabad

– LATER STAGE We will expand our distribution to super markets/stores/malls and other urban and sub urban cities.

• FIRST YEAR GOALS– Primary Sales: 150,000 Packs– Secondary Sales: 275,000 Packs– Target Brand Value: 100 million Rs.

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BRAND DYNAMIC METRICS

PRESENCETapal Tea Mate has a presence in the market.

People are well aware of Tapal Tea. There is a familiarity

RELEVANCETapal Tea Mate offers it’s customers a blissful experience

while having Tea. It is relevant to customer’s needs at right price

PERFORMANCETapal Tea Mate delivers and fulfill consumer’s

need successfully. It delivers great rich blissful Tea along with joyful experience

ADVANTAGEIt offers a completely different and better

experience then it’s competitors.

BONDINGTapal Tea Mate has created a

rational and emotional attachment with its consumers

by associating having tea with a moment to relax and enjoy that

cup

WEAK SHARE OF WALLET

STRONG SHARE OF WALLET

PERCEPTION METRICS

• Familiarity and Consideration (i.e. consumers thoughts and feelings for Tea Mate)

• Differentiation vis-à-vis the competitor• Credibility• Likability• Perceived Quality• Purchase Intent

TEA-MATE’S PLAN FOR THE NEXT 3 YEARS

Tea-mate will have 25% market share via 75% mind share and reaching 80% category important outlets in terms of distribution.

THANK YOU