Sei sulla pagina 1di 98

Revival of Ice Tea 1

1. Background and History


The super market culture has changed consumer purchase practices and the youth today
has bounteous choices in front of them, even when compared to past. Increasingly they are
becoming a huge market on their own. If we look at the last couple of decades we will see that
due to a change in the behaviors and in the living pattern of customers, many companies have
not only made a move to capture the viable portion of the market in Pakistan as well as in
abroad. When we talk about Pakistan, we see that in the last few years many companies have
launched products which are not traditionally consumed by our nation. Many factors have
contributed in bringing this change, few of them are; economic situation of the country,
education level and occupation. When Tapal launched its ice tea in May of 2007, the economic
condition in the country was relatively more stable then how it is now; people were earning
more and spending more. Apart from that, Todays generation is considerably more educated
than the previous generations and this trend is occurring as a result of affluence & changing
social values. The relative importance of the educated segment of consumers will continue to
expand, and keeping in mind their desire for new products made this segment more attractive
for Tapal. Similarly, the occupation status has also played an important role in the changing
behavior of consumers, as in these days there are more white-collar workers with relatively
more to spend than ever before. These are the few observations on which Tapal had been
working and thus the introduction of a new product such as Ice Tea in order to avail the
opportunity present in the market.
(Tapal Tea Pvt. Ltd.)
(Tapal Ice tea)
Revival of Ice Tea 2

1.1 Introduction of the Topic
The topic of our project is Identifying the challenges faced by Tapal in marketing its
ice tea & what were the reasons of failure through proper market/ customer research and then
we will develop strategies to re-launch ice tea and to improve the situation. Keeping all the
above mentioned factors in mind which are responsible for the change in the consumptions
behavior, Tapal introduced its flavored ice-tea. Internationally ice tea is available in many
different flavors and is offered by many different companies but in Pakistan at this current
status it is only offered by two giant shareholders in the tea making industry which are Tapal
and Lipton. In abroad people consumes ice-tea in good quantity but in the sub-continent
although we are very fond of drinking tea but in its same traditional form, i.e., the regular hot
tea. That is the reason why masses have not yet accepted this version of tea in Pakistan. It has
always been difficult to change the mind-set of customers but in order to increase the sales of
ice tea, marketers have to first create awareness among the tea drinkers, both the heavy users
and the light users and in non-drinkers about this cold version of tea and then have to work on
the marketing mix determinations in order to increase its sale. The problems regarding Tapals
ice tea are; it was only available in two flavors i.e., Peach and Lemon & Lime, it was not easily
available everywhere and no such noticeable promotional work had been done for it. So, in this
project we will be discussing what Tapal can do in order to re-launch Tapals ice tea and how to
improve the past situation of what we can say, Failure.
(Tapal Tea Pvt. Ltd.)
(Tapal Ice tea)

Revival of Ice Tea 3

1.2 Idea of an Iced Tea
Iced tea, also known as ice tea, is a form of cold tea, often served in a glass over ice. It
may or may not be sweetened. Iced tea is also a popular packaged drink. It can be mixed with
flavored syrup, with common flavors including lemon, peach, raspberry, lime, and cherry.
While most iced teas get their flavor from tea leaves, other herb-infused beverages are also
sometimes served cold and referred to as iced tea. Unsweetened iced tea is sometimes made by
a particularly long steeping of tea leaves (Camellia sinensis) at lower temperature (one hour in
the sun versus 5 minutes at 80-100C). In addition, sometimes it is also left to stand overnight in
the refrigerator.
(Tapal Tea Pvt. Ltd.)
1.3 Current Manufacturers of Iced Tea
The main manufacturers of bottled or canned iced tea are
Nestea
Lipton
Snapple
Turkey Hill
AriZona Beverage
Such tea can be found on the shelves of most Western groceries and convenience stores,
in a variety of flavors, and leaf types (usually black or green, occasionally white). With iced tea
mass-produced at this scale, unsweetened varieties are somewhat rare: most are sweetened with
corn syrup (although some major brands, like Snapple and Lipton, have begun to offer iced teas
sweetened with sugar in place of corn syrup), and their sweetness places them in the same
Revival of Ice Tea 4

market as soft drinks. Both the sweetened and unsweetened varieties usually contain the
additive citric acid, labeled either "for flavor" or as a "preservative." Canned varieties are
canned under high pressure to prevent the cans from being crushed, which may result in very
mild effervescence.
Health food and some other specialty stores often carry a different set of iced tea bottlers
which may include Honest Tea, Tazo, Sweet Leaf Tea, various U.S. brands of the Japanese
green tea giant Ito En, and other small companies. These are also available in a variety of
flavors, although there is less emphasis on fruits and sweeteners, and greater emphasis on
traditional tea spices and herbs (which can range from mint to oil of bergamot). Corn syrup as a
sweetener is rare, with cane sugar, honey, and other sweeteners being more prominent. Citric
acid as a stand-alone ingredient (i.e., present as a chemical additive and not because of the
addition of citrus) is less common. Also, with these alternative producers unsweetened tea with
no additional ingredients (just tea-infused water) may be available.

Revival of Ice Tea 5



1.4 Brief History of Tapal Origin
The journey of Tapal's remarkable success is the combined efforts of three generations.
Adam Ali Tapal was the founder of the Tapal Company. The saga of Tapal started with his
formulation of a unique tea blend, which was later named family mixture which led the Tapal
brand becoming a hot favorite, and eventually the largest selling brand. Taking a step forward
Lipton ice tea is produced to make it great tasting and good for
[consumers] because it is rich in protective antioxidants (Unilever
2007). Lipton ice tea is marketed globally as the perfect drink for
active, healthy lifestyle. It is available in 16 oz plastic bottles with
select flavors sold in six-pack cases.


Naturally containing flavonoids, it's pure refreshment that's good
for you!" to be "Tetley Iced Tea Blend is pure refreshment. Each 8-
ounce cup contains 100 mg of naturally occurring flavonoids (85
mg for the decaffeinated blend).


Nestea is a brand of iced tea manufactured by Nestle and
distributed by Nestle company's beverage department. Nestea Iced
Tea has a refreshing, balanced taste that has satisfied for
generations. The clean tea taste and hints of fruity goodness is a
simple pleasure that everyone can enjoy.


AriZona Iced Tea is the 100% natural, healthy, refreshing drink that
is the #1 ready to drink iced tea . AriZona has more flavor variety
than any other iced tea in the world. AriZona Iced Tea also comes
in the largest array of sizes, from 11.5 oz / 340 ml cans, to gallon
bottles of 128 oz / 3.8 l
The best stuff in life is sweet. But not too sweet. And that's what
you'll find inside this bottle: the Best Stuff on Earth, lightly
sweetened. All natural, refreshing white tea with just a touch of
sugar and 80 calories per bottle. Yeah okay, that is pretty sweet.
Revival of Ice Tea 6

from this humble foundation, Tapal moved up the ladder of success by innovating and
introducing different tea brands to suit every taste and pocket, which were sold from its retail
outlet in Karachis Jodia Bazaar. People from all parts of the city flocked to the outlet to
purchase Tapal tea, and soon, the quality of Tapal teas became legendary. The company
continued to thrive and grow under the management of the founders son, Fazullah A. Tapal,
who initiated tea distribution to retail outlets around the city for the convenience of the people
.Evolving and innovating its way through its near-60 year history, Tapal is presently the largest,
100% Pakistani owned Tea Company in the country. It has set new standards for modern tea
blending and packaging factories, warehouses equipped with state-of-the-art equipment and a
team of highly dynamic professionals headed by Aftab Tapal himself. Our signature brands are
following

(Tapal Tea Pvt. Ltd.)

TAPAL
Tapal
Danedar
Gulbahar
Tapal
tea bags
Tapal
Green
Tea
Tapal
Special
Mezban
Tapal
Tezdum
Chenak
Tapal
Family
Mixture
Revival of Ice Tea 7

1.4.1. A commitment to quality
"Never compromise on quality" has been the motto at Tapal since the very beginning.
This commitment to quality has resulted in a high level of customer satisfaction and unflinching
brand loyalty. In December 1997, Tapal Tea became the first Pakistani Tea Company to earn
the ISO-9001 certification: a symbol of the highest international quality standards. Again in
December 2000, Tapal acquired the ISO9001: 2000 certification, making it one of the first few
companies in the world to achieve this milestone. In addition to the standard requirements, the
ISO9001: 2000 certification system includes requirements for environment improvement,
concepts of TQM (continuous improvement) with major emphasis on consumer requirements
and satisfaction.
1.4.2. TAPALs Environmental Vision is:
Sustainable world, a world in which human populations can continue to exist
indefinitely with a high standard of living and health
To produce, market & distribute its product in a way that does not cause harm to
people or damage to the Environment.
1.4.3. We believe our activities should:
Respect the environment
Generate economic benefits
Create positive influence in the society
Create opportunities for good quality of life
Our Philosophy is: To act locally, but think globally
Revival of Ice Tea 8

Our employees are: Provided with the information & training necessary to enable them
to perform their tasks in a hygienic manner.
1.4.4. Mission
To satisfy our stakeholders and as a guiding principle to our business; be a 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.
1.5 Values At Tapal
1.5.1. Trust in each other
We believe that trust is the foundation of our business actions.
We believe that honesty is absolute and that integrity cannot be compromised. All our
actions are guided by fairness and sincerity of commitment.
1.5.2. Outstanding quality
We believe in dedicating ourselves to achieving an outstanding quality in all our
activities. Excellence is a journey, not a destination. Quality is a way of life for us.
1.5.3. Passion for creativity
We are open to novel ideas in every aspect of our business of choice.
We believe in providing an environment which supports individual opinion and
efforts, inspires and enables everyone to use their creativity and entrepreneurial flair.
1.5.4. Leadership and role model for others
We are committed to being the No.1 national company in our business of choice; a
role model for others to follow.
Revival of Ice Tea 9

We believe in empowering individuals at every level. We encourage the use of
judgment and decision making with ownership and accountability. We believe
empowerment creates leadership
1.5.5. Together, everyone achieve more
We believe in unity and purpose of value the benefit of coordinated efforts. With a common
goal and team spirit we will fulfill the needs of internal and external stakeholders.












Revival of Ice Tea 10

1.6 Organizational Hierarchy

(Tapal Tea Pvt. Ltd.)


Managing Director




















Deputy Managing
Director

GM Administration
GM Production














Admin. Manager
Factory Managers










GM Supply Chain

Admin Executive
Production
Managers








DC Manager

Admin Officer
Production
Executives








Procurement Manager


Production Officers







Planning Manager

GM Finance







Logistics Manager

Accounts Managers
GM Internal audit






Finance executives
Manager internal
audit










GM Marketing

Finance officers
Internal audit
executive








Brand Managers











BTL Manager



GM Sales




Trade operat
manager


Export Market Manager



Reg. Managers




Insti. Sales
Managers


Brand/BTL executive


Zonal Managers








Project Managers
Revival of Ice Tea 11

1.7 Departments

1.8 Employees
A team of 300 professionals ensure that your favorite Tapal Tea meets and exceeds
international standards and approximately 1500 production workers everyday producing around
200 tons of packaged tea every day.
(Tapal Tea Pvt. Ltd.)







Marketing
Supply chain
Production
Human resource
Finance
Administration and security
Information system
Projects
Revival of Ice Tea 12

1.9 Setup Location
~Karachi Factory
Tapal Tea (Private) Limited, Plot No. 40, Sector 15, Korangi Industrial Area, Karachi - 74900.
Tel: 5063891-4
Fax: 92-21-5063890
~Raiwind Factory
Tapal Tea (Private) Limited, 3 Km, Manga Road, Near Bashir Chowk, Raiwind, District (Kasur).
Tel/Fax: 04951-392171
~North Regional Office
Tapal Tea (Private) Limited, 2nd Floor, Block 5, Awami Flats, 4 Usman Block, New Garden
Town, Lahore
Tel: 5868738, 5831593
Fax: 92-42-5831942
~City Office
Tapal Tea (Private) Limited, Tapal House, Syedna Taher Saifuddin Road, Mohammad Shah
Street, Nanakwada, Karachi.
Tel: 7737202-4
Fax: 92-21-7733912




Revival of Ice Tea 13

1.10 Operating Regions
These Regions further classified into Zones/Territories and Towns to extensively cover
the market. Tapal Tea is currently exporting to Asian counties of Afghanistan, Middle East,
USA, Australia and, other European continents which constitute around 1% 2% of their total
sales.
Regions Warehouse/Office/Factory
Karachi Warehouse, office and factory
Hyderabad Warehouse and office
Sukkur Warehouse and office
Multan Warehouse and office
Lahore Warehouse, office and factory
Islamabad Warehouse and office



TAPAL TEA
PAKISTAN
Southern
Region
Karachi Hyderabad Sukkur
Northern
Region
Lahore Multan Islamabad
Revival of Ice Tea 14

1.11 Initiatives Taken By Tapal
Some of its most important innovative actions are as follow:
The first to introduce soft packs in the country
The first tea company to introduce metal-free tea bags
The first to develop an entirely new blend and category-Tapal Family Mixture (the
mixture of leaf & dust).
The first to invent the highly successful brand Danedar Leaf Blend.
The first to market Kenya teas in Pakistan.
The first tea company to be awarded the ISO 9001/2000 Quality Certification
They first to initiate hard pack, pouch pack and equity pack.
First to launch Double Patta in their Danedar brand.
1.12 Business Scope
In Pakistan, Tea is undoubtedly the national drink and it has more
consumption than any other type of drink available in the market today. Business Scope
describes The Business we are / want to be in through the eyes of the customers.
I t def i nes t he ar eas of oper at i ons f or t he or gani z at i on. I t encompas s es t he
following questions:
The Business We Are In?
Tapal is in the market of Hot Beverages and specialize in the area of Black Tea.
Who Are Our Customers?
Tapal has a diversified customer base ranging from urban to rural areas including various
institutions. Hence, Tapals target market mainly consists of young adults
and adults belonging to high, middle and lower income groups.
Revival of Ice Tea 15

What Needs We Are Catering? (Functions/Applications)
T a p a l T e a i s c a t e r i n g t o t h e b a s i c n e e d o f T e a a c c o mp a n i e d
wi t h Qu a l i t y a n d Affordability. Customer seeking needs would be:
Primary Attributes
Strong Taste
Aroma
Color
Premium Quality
Secondary Attributes:
Price
Availability

1.13 Boundaries and Future Scope
Matching production with increasing demands in the future.
Bringing new products (ranges) for new segments and untapped markets.
To broaden exports function in Middle East and other international
markets; and prove existence in international markets.
To maintain the leading position in the local market.
Modernizing operations and optimal capacity utilization.
Restructuring strategies for the bottom of pyramid customer base.
Customer oriented pricing strategy.
Tactical media strategy for each brand.
Strengthen the brands and communication to avoid internal cannibalization.
(Tapal Tea Pvt. Ltd.)
Revival of Ice Tea 16

1.14 Objectives of Tapal
To transform our competencies into the best advantage for our clients.
To offer quality services with integrity, expertise and professionalism to enhance our
client's operation.
To offer personalized services according to the clients need.

1.15 Market Share

43%
35%
5%
2%
15%
Market Share
TAPAL UNILEVER VITAL EASTERN OTHERS
Revival of Ice Tea 17

1.16 Idea of Ice Tea in Tapal
Ice Tea came to notice of the Tapal management when it was found that it was already
being sold at many leading stores throughout the major cities. Independent industry research
shows that healthy beverages were increasing claiming a bigger share of the Pakistani market
and were growing at a tremendous pace. Tapal started to respond to consumer demand and
researched by introducing these current flavors.
1.16.1. Opening
14th of June was a historic day at Tapal Tea Pvt. Ltd. Pakistans own and favorite hot tea
beverage company took its first step towards expansion with the introduction of its new product
Tapal Ice Tea. The first consignment of Tapal Ice Tea was ceremoniously dispatched from the
companys warehouse on Thursday the 14th of June 2007.Present at this momentous occasion
were amongst other people the CEO of the company, Mr. Aftab Tapal, the COO Mr.
Muhammadi Miabhoy and the CMO Mr. Mahmood Nanji. The product along with support POS
material was well received by the shop keepers of Karachi and displayed across the selected
areas of the city. Tapal had been the leading brand here in Pakistan for many years, and this new
product which is not available now was sure to stir up some more excitement among the Chai
freaked Pakistanis which will make Tapal another step ahead of the leading brands in our
country.
(Tapal Tea Pvt. Ltd.)


Revival of Ice Tea 18

1.16.2. Companys Objective
Ice Tea came to notice of the Tapal management when it was found that it was already
being sold at many leading stores throughout the major cities. Independent industry research
shows that healthy beverages were increasing claiming a bigger share of the Pakistani market
and were growing at a tremendous pace. Tapal started to respond to consumer demand and
research by introducing these current flavors It is good news for health conscious individuals as
now they can enjoy a refreshing and nutritional drink As so many companies do increase their
Product Mix in order to increase the sales by serving a different and unconsidered segment of the
market and also to increase market share. TAPAL took the same step; previously they are
serving to the one segment of Pakistan tea market with their hot beverage, leading brand
TAPAL DANEDAR.
1.16.3. R &D behind Ice Tea
Ice Tea Powder is a unique product, which underwent excessive testing and formulation by
the R&D department and surpasses global benchmarks.
The launch signifies local talents and entrepreneurial skills as there is no such offering
available in the market.
Speaking at the occasion Ehtisham Khan, Brand Manager Tapal Ice Tea said Innovation
and better understanding of consumer preferences is the cornerstone of our success and Tapal Ice
Tea is another milestone. We intend to provide our customers with healthy and nutritional
substitutes.

Revival of Ice Tea 19

1.16.4. What is Tapal Ice Tea?
The simple pleasure that tea drinkers have enjoyed with Tapal for more than 60 years
gets a chilled & flavorful update this month with the new Tapal Ice Tea Lemon & Lime and
Peach flavor varieties hit the shelves this month.
Tapal Ice Tea is a deliciously refreshing drink made with tea, blended with water and
fruit flavors. Ice tea is a form of cold tea often served in a glass over ice. It may or may not be
sweetened. The most common flavors worldwide include lemon, peach and lime.
1.16.4.1. About Peach Flavor Ice Tea
For the delicious taste of summer in a glass any time of the year, mix up some Tapal Ice
Tea Peach. Its the perfect blend of thirst quenching, refreshing beverage and the sweet taste of
peaches. Made from real tea blends, Tapal Ice Tea Peach combines the goodness of Tea
antioxidants with no preservatives, no artificial colors and only 16% sugar which is much less
than most regular soft drinks.
1.16.4.2. About Lemon & Lime Flavored Ice Tea
Nothing beats a chilled, sweet, lemony glass of Tapal Ice Tea Lemon With just the right
amount of ingredients; our mix is going to quench your thirst with a refreshing burst of Lemon
and Lime.
Made from real tea blends, Tapal Ice Tea Lemon combines the goodness of Tea
antioxidants with no preservatives, no artificial colors and only 16% sugar which is much less
than most regular soft drinks.

Revival of Ice Tea 20

1.16.4.3. Opt For The Healthy Drink - Ice Tea!
We say Tapal Ice Tea Chill Karo because Tapal Ice Tea truly adds to the fun of your
chilling out style. It offers a lot more than refreshment.
1.16.4.4. Energizes you
Its moderate caffeine content stimulates energy consumption, giving your body a gentle
physical boost that helps you keep going on your workouts, sports or any sort of physical activity
energetically. 2.1 mg of caffeine per kg body weight that equals 147 mg for 70 kg person
ingested prior to prolonged exercise delays fatigue. This amount is available in approximately 3
Tapal Ice Tea cans.
1.16.4.5. Sharpens your wits
A combination of caffeine and thiamine in tea gives you a relaxed but fully alert state of
mind and at the same time helps you to focus.
1.16.4.6. Hydrates you
Drinking 8 glasses of water a day is a minimum requirement for a healthy, active
lifestyle. Maintaining a healthy body fluid balance can become a challenge during summers,
especially when you move outdoors. Your need to intake fluids becomes even more recurrent. In
such a hot weather, refreshing Tapal Ice Tea breaks are necessary time after time to replenish the
fluid that youve lost all day to the hot weather in a delicious way and theyre a much better
alternative than carbonated drinks.

Revival of Ice Tea 21

1.16.4.7. Doesnt hurt your fitness
Tapal Ice Tea contains very less calories, less than half the calories of a common cola
drink. So regular consumption of your favorite Tapal Ice Tea doesnt leave you with a guilt trip
and its safe to enjoy it to the limits!
1.16.4.8. Lemony goodness
Lemon ice tea is not just another glass of soft drink; it offers the most valuable benefits of
lemon such as vision and digestion improvement, relaxing of the nervous system, antibacterial
properties and aid in fighting colds and flu symptoms. Most importantly, lemon contains the
most effective type of vitamin C that helps prevent cancer. Tapal Ice Tea brings all these benefits
to you in a delicious drink.
1.17 SWOT Analysis

Strengths Weaknesses

Image of the Brand- Tapal is an
established, well-reputed company in
Pakistan. Thus, the market will be
motivated to buy the brand, as it belongs
to a trustworthy and reputable company.

Technology- Tapal is a pioneer in soft
packaging for hot beverages. It has ISO
Certifications for every product it uses.
Also, the R&D Department of Tapal is
constantly developing state-of-the-art
machines to enhance the quality of their
products like Danedar and Ice Tea. Ice
Tea is packaged in metal free plastic cans
to keep the freshness of the drink.

Strong and established supply chain
management- Tapal has its own suppliers.

Ice Teas association with Tapal and the
color red- Tapal has linked all its products
(Danedar, Family Mixture) to the color red.
Tapal Ice Tea launched with the purpose that
it will position itself as its own brand rather
than banking on the companys name. There
was no red in the packaging of Ice Tea, when
red serves as a symbol for Tapal. People
couldnt associate Ice Tea with Tapal and
didnt know that it was a part of the Tapal
company.

No SKUs- The product was packaged in 25
grams. It was not available in any other size,
limiting the amount that people would want
to buy. There was no variety in the quantity
purchased.

Revival of Ice Tea 22

Its a more cost effective way of keeping
the supply chain intact.

Natural, healthy drink- It contains various
nutrients and natural extracts of fruits and
tea. Also, it contains less sugar then the
regular soft drinks. It contains iron,
calcium, protein, fiber, vitamin C and
sodium.

Availability in the key market- Tapal has
an extensive distribution network. Ice Tea
was available in the vicinities where its
target market resides. For example, it was
available in the stores around Clifton,
some areas of Nazimabad and Gulshan.

Variety- It can be served as a drink in a
can and/or in powder form. Tapal Ice Tea
was initially introduced as a drink in a
can. However, further on they introduced
it in a powder form as competing with
products such as Tang and Limopani who
also offer to give an energetic, stimulating
drink.

Easy-to-use- Ice Tea was served in a can.
It can be taken anywhere easily, as it was
not a cup or a glass bottle. The cans easy
to carry around and dispose.

Single unit company- Tapal specializes in
serving hot beverages. Its the pioneer of
this single unit, and positions itself as the
expert in the tea industry due to quality,
variety and other factors. Tapal cashes
upon the fact that they specialize in this
field and offer the best products.
Two flavors only- Tapal Ice Tea was
available in Peach and Strawberry. Orange,
raspberry and apple can also be introduced to
expand their target market and offer flavors
catering towards different personalities.

No generic flavor- Tapal Ice Tea currently
had two flavors, yet didnt contain an
original flavor. Thus, it was losing out on the
meaning of serving a cold beverage
consistent with the category that Tapal
serves.

Imported Ingredients- The formula and
ingredients are usually taken from U.S. and
Europe. Tapal incurs a huge cost due to this.

Lack of awareness- The potential and target
market of Tapal Ice Tea were not aware of
the purpose and benefits of Ice Tea. The
Below-the-Line (BTL) activities were not as
strong as they should be to convey the
message of the benefits and Ice Tea.





Revival of Ice Tea 23

Opportunities Threats

High potential in terms of increasing
market share-TAPAL TEA Pvt. Ltd views
the ever increasing market share as an
opportunity for ICE TEA. The product
that is being offered is not readily
available in terms of both local brands that
are available in the leading stores of these
cities. This unavailability leaves a
potentially high market share untapped for
ICE TEA.

Tapal can go international because it
already exports its tea to Australia,
Malaysia and Singapore. Demand is
already established, it just needs to start
working as a multinational company.

Tapal can open up branded cafeterias and
Tea shops at locations with high footfall.
This has been a profitable attempt at
Macro SITE where Tapal has opened up a
caf Chai Shai.

Population of Pakistan is rapidly
increasing and so are tea drinkers. This is
a great opportunity for Tapal to increase
its usage and penetration in the market.


Tapal hasnt tapped into the neighboring
countries as yet who have similar tastes
and culture. Building good relationships
with them will be beneficial for Tapal to
penetrate into the neighboring markets as
well.

As a national company, Tapals costs are
subsidized by the government. This gives
Tapal a cost advantage over the other
players in the market.

Loose teas price has increased and has
come to par with Tapals Tea due to
inflation. This is an opportunity for Tapal

Government policies-Government Policies
like GST, which has been levied upon all
consumer products, poses as a threat to fulfill
this criterion and to cover costs, prices are
set higher. The discouraging policies
regarding the import of tealeaves are another
threat.

Competitors strategies and policies-The
very fact that ICE TEA is competing against
big names like Unilever and Pepsi etc. poses
to be a threat as these names are associated
with high budgeted advertising campaigns
and distribution networks. At this initial
stage, though ICE TEA will be substantiated
with an adequate advertising budget, it may
still fall short of that of its competitors.

Downward trends in growth-The inflation at
present is a downward trend leading to low
purchasing power, which in turns slows
down ICE TEAs sales growth.

Price sensitivities-People are becoming more
price sensitive i.e. the demand is becoming
more elastic, which is considered as a threat
for TAPAL and ICE TEA.


Unaccounted competition-Another threat that
ICE TEA faces is competition in terms of
smuggled products of the same product
category through the Black Market.

The political environment of Pakistan is very
uncertain. This hurts the sales and
distribution of Tapal.

Juice markets are rapidly growing and
developing which can be seen to be a major
threat to this product category.

The brand name Ice Tea- The population
of Pakistan is considered as one of the largest
Revival of Ice Tea 24

to convert buyers of non branded tea into
branded tea users.

The Youth has started shifting from tea to
other beverages. This has given Tapal an
opportunity to bring out products that will
cater to the changing needs of the
consumer due to which Tapal Ice Tea was
launched.

National but not Multi-National- Tapal is
known as a Pakistani company, but it
hasnt expanded its borders to the outside
markets. They have an export base but it's
not fully established. Thus, Tapal can
capture sales and a potential market
outside the Pakistani borders.
consumers of tea. However, associating ice
with tea poses a challenge for Tapal as Tapal
caters hot beverages, not cold, fruitful drinks.
Considering the loyalty status and high usage
rate of hot tea, it will be very difficult to
obtain the same loyalty and usage status.
Through various strategies, first time users
can be attracted but to maintain a habitual-
buying process will be hard.

Distribution network for the northern areas-
Tapal is not able to give their products to
Kashmir and Swat due to various economical
and political reasons.

(Shaikh, 2012)
(Imran, 2012)
1.18 Reasons behind the Failure of Product
Following are the number of reasons that resulted in failure of Tapal Ice tea:
1.18.1. Problem of associations
Ice Teas association with Tapal and the color red- Tapal has linked all its products
(Danedar, Family Mixture) to the color red. Tapal Ice Tea launched with the purpose that it will
position itself as its own brand rather than banking on the companys name. There was no red in
the packaging of Ice Tea, when red serves as a symbol for Tapal. People couldnt associate Ice
Tea with Tapal and didnt know that it was a part of the Tapal Company.
Revival of Ice Tea 25

1.18.2. Brand loyalty
Unable to leverage the brand loyalty of Tapal in the target market and Unable to establish
an emotional connect with the consumer.
1.18.3. No SKUs
The product was packaged in 25 grams. It was not available in any other size, limiting the
amount that people would want to buy. There was no variety in the quantity purchased.

1.18.4. Two flavors only
Tapal ice tea was only available in two flavors i.e. lemon and peach and lime but
internationally ice tea is available in many different flavors and carbonated drinks are also
available in unique flavors in the market.
1.18.5. Recall rate
Recall rate of brand is very low.
1.18.6. No generic flavor
Tapal Ice Tea currently had two flavors, yet didnt contain an original flavor. Thus, it was
losing out on the meaning of serving a cold beverage consistent with the category that Tapal
serves.
1.18.7. Imported Ingredients
The formula and ingredients are usually taken from U.S. and Europe. Tapal incurs a huge
cost due to this.
Revival of Ice Tea 26

1.18.8. Quantity
There was no variety in the quantity purchased.
1.18.9. Lack of awareness
The potential and target market of Tapal Ice Tea were not aware of the purpose and
benefits of Ice Tea. People were not accepting this type of version of tea in Pakistan because they
are very fond of drinking tea in its same traditional form i.e. regular hot tea. The Below-the-Line
(BTL) activities were not as strong as they should be to convey the message of the benefits and
Ice Tea. Lack of 360 degree advertising.
1.18.10 Availability
It was not easily available everywhere and no such noticeable promotional work had been
done for it.
1.18.11. Pricing
Price was also the issue. Rs.30 was difficult for survival because when company offer low
priced product, consumer perceives that quality of product will not be up to the mark.
(Imran, 2012)
(Shaikh, 2012)


Revival of Ice Tea 27

2. Setting up the Objectives
In this step we will focus on creating a road map on what we actually want to achieve
with the completion of our project.
Understanding about the different competitors that are currently operating within the
category of Ice Tea.
Identifying those components which were previously omitted in the product and
resulted in its downfall of the product.
Conduct consumer market research in order to know the customer reaction towards
the ice tea and particularly Tapal Ice Tea.
Analyzing all the technical and financial aspects related to the operation of the
product.
Repositioning the product in the mind of the customers.
Formulating the marketing plan, distribution channels strategy and other strategies to
make the revival of product successful.






Revival of Ice Tea 28

3. External Analysis
3.1 Technological Forces
As far as Tea is concerned the Technological forces that may apply are good machinery for
refining and packaging. Tapal is considered to be the pioneer in soft packing. Unilever is also up to
the task as far as packaging goes. Unilever and in my opinion Tetley will always have an upper
hand and would be able to sustain the pressure of bringing in new technological changes as they
are financially strong and on the other hand Tapal may initially cope up with these foreign firms
but in long run it will not be able to make constant technological changes.
3.2 Economic Forces
Another major factor that affects Tapals marketing strategy is the conditions prevalent in
the economy. The main economic forces affecting the market are:
Stage of Business Life Cycle: Whether the economy is in a recession or in a boom, it
affects the activities of Tapal in a way that it influences the demand of their product. In
a boom the demand of the product increases. Similarly, in a recession the demand of a
product falls since the buyers consume less of the product due to falling incomes.
Though fluctuations in the demand do occur, these are not major fluctuations as
demand for tea is inelastic in relation to price.
Inflation: It plays a major role on the marketing strategies used by a company due to
two main reasons. Firstly, inflation affects the consumers psychology and they become
more selective in their purchases. Secondly, inflation results in rising prices for the raw
materials purchased by Tapal, which in turn increases the cost of production. This
factor plays a major role especially if the increase in cost cannot be transferred to the
consumers in the form of raised prices.
Revival of Ice Tea 29

3.3 Social and Cultural Forces
Society and culture plays an important role in determining the business strategy of the
organization. Although Unilever and Tapal are big names and enjoy a very good market share but
still these forces sometimes play a major impact. Recently when Muslims planned to resist against
the foreign made goods it could have greatly affected the sales of Supreme & Lipton Yellow Label
but at the same time this situation could have been good for Tapal. These forces not always play a
negative role but can sometimes be really helpful. In Asia, society and culture does make an
impact.
Consumer adoption of a product depends greatly on the target markets beliefs, tastes and
values of the people. For instance, Mezban tea was developed as a stronger tea keeping in mind the
taste of the consumers of interior Sindh.
3.4 Political
The political & legal forces that affect Tapal are the taxes & excise duties levied on Tapals
products and its imports. Also it has to fulfill all the rules and regulations as per law.
Fluctuation in the import duties by federal government is an issue of great concern for all
tea-marketing companies. If we look back in past, tea imports during 2004-05 increased by over
10 percent compared to 2003-04 mainly due to a cut in the import duty, the federal government
in the budget 2004-05 cut by 50 percent the import duty on tea, bringing it down from 20 percent
to 10 percent to what it said protect the local industry and curb the menace of smuggling. This
decline resulted in more production and Tapal discovered a new market for itself and started
exporting its blend tea. Right now Tapal is exporting tea to some of the countries abroad like
Canada, Saudi Arabia, and Dubai.

Revival of Ice Tea 30

3.5 Competitive Forces
The tea industry is divided into two segments. They are:
Branded Tea
Unbranded Tea
Tapal is facing a tough competition from both the segments as the unbranded tea has
almost half the share of the total tea industry.

















Revival of Ice Tea 31

4. Food Industry of Pakistan
The food industry can make a variety of different products from a given commodity.
These food products have different expiration dates and different economic value as a result of
food processing. The food industry adds value to commodities, creates a variety year-round food
supply and does so at very low consumer cost.
The food and its allied products industry is considered Pakistans largest industry and is
believed to account for 27% of its value added production, while 16% of the total employment
by the manufacturing sector. It is estimated that in Pakistan there may be around 80,000 small
businesses and more than 2 million micro-enterprises many of which are food manufacturers.
Many of SMEs and micro-enterprises are in rural areas and fall into the category of food
processors, depending heavily on agricultural raw material and poor-skilled non-farm labor.
The beverage industry in Pakistan also possess tremendous potential and currently there
are about 170 units operating in Pakistan that produce water, syrups and squashes.
4.1 SWOT Analysis of Food Industry
Strengths
The food industry is large and expanding. It is currently characterized by numerous
small firms, allowing for the growth via consolidation.
The country is leading producer of a number of profitable agricultural commodities,
most notably milk and sugar.
Changing consumer preferences among middle and upper-income urban consumers
are slowly increasing demand for imported and value-added foods.
Revival of Ice Tea 32

Several international food-processing companies have entered the market either
through joint ventures or by establishing their own subsidiaries, leading to moderate
improvements in infrastructure and industry best practices.
Weaknesses
Distribution links to rural areas have improved, although outside of the major cities
cold storage facilities remain in short supply.
Per capita income remains low, with vast segments of the population unable to afford
non-essential food products.
The agricultural sector suffers from infrastructural inadequacies, as such,
considerable crop losses, which in turn affects revenues. Government efforts to
improve the sector have been slow-moving and unsustainable.
Opportunities
The food industry has considerable potential, due to Pakistans size and the relative
lack of competition.
Investment in the high-potential dairy industry will increase output, enabling the
industry to capitalize on growing regional consumption levels.
The need for FDI in agriculture should create favorable investment opportunities and
an abundance of willing partners.
The growing middle class will fuel the demand for a greater convenience sector, in
terms of both, retail and convenience foods.

Revival of Ice Tea 33

Threats
The domestic food processing industry largely depends on the output of the
agricultural sector and is thus highly vulnerable to harvest failures.
The countrys food industry remains vulnerable to the release of counterfeit products
on to the market.
4.2 Competitor Analysis
Lipton ice tea is one of the major and direct competitors of Tapal Ice Tea. Being the
global leaders in refreshment brands, Lipton launched new products to meet the growing the
need for ready-to drink teas and introduced innovative product line to capture the health
conscious market. As part of Lipton teas drive to capture the booming market for ready-to-drink
teas, the Anglo-Dutch Unilever Company entered into a joint agreement with American PepsiCo
in 2003. Through the joint venture agreement, PepsiCo distributes or markets Lipton tea
products, specifically Lipton Ice Tea in more than 60 countries where PepsiCo has established its
corporate presence (Wikipedia 2007). Recognizing that majority of Lipton ice teas consumers
are the health-conscious and on the-go drinkers, Lipton continues to develop its product lines to
make it more convenient, accessible and health-appealing to consumers. Flavors available are:
Iced tea Sweetened - Lightly sweetened iced tea
Iced tea Unsweetened - Tea with no sugar and no added flavors
Iced tea with Lemon - Sweetened iced tea with a twist of citrus flavor
Iced tea with Raspberry - Sweetened iced tea with raspberry flavor
Iced tea with peach - Sweetened iced tea with peach flavor
Iced tea Diet Sweet Tea - Lightly sweetened with Splendid and no calories
Iced tea Diet Lemon - Lightly sweetened with a hint of lemon
Revival of Ice Tea 34

Iced tea Extra Sweet - Very sweet iced tea, marketed as "Southern Style" in some areas
Half & Half - Half sweetened ice tea and half lemonade
Diet green tea with Mixed Berry - Mellow tea diet and lightly flavored with mixed berry
(Adresh Akhtar)





















Revival of Ice Tea 35

5. Previous marketing analysis
5.1 Market Segmentation
As a whole when we see the market of tea in Pakistan, although it is not clearly
segmented but, Tapal did this thing very accurately that it segmented the market very accurately.
Its 9 brands in the current clearly shows the potential of each brand in each segment define by
the company. They clearly look at the nature and extent of diversity of buyers needs and wants in
a market. This thing offers a great opportunity for Tapal to focus its business capabilities on the
requirement of one or more groups of buyers. "Tea drinkers will really enjoy the new products,
and the flavored ice tea will certainly appeal to active adults who seek refreshment and healthy
benefits in their beverage selection," said Aamir Habib, Brand manager. "The tea used to make
Tapal Ice Tea has antioxidant properties which are associated with good health."
The objective of this segmentation is to create awareness among youth of Pakistan
regarding the new innovation in the Pakistani tea market and a new trendy culture in Pakistan.
Geographic
Country Pakistan
Destiny Urban
Climate Any


Behavioral
Occasion Any
Benefits sought Flavor, easy availability, brand status
Loyalty status Medium
Revival of Ice Tea 36

Readiness stage Unaware
Attitude towards product Enthusiastic
Demographic
Age 16-30
Gender Both male and female
Life style Outgoing, active, innovator, thinkers and
experiencers
Income group Lower middle, upper middle and lower upper
class
Occupation Students

5.2 Targeting
Tapal wants to increasingly cater to young generation market and it was doing so with the
launch of Tapal Ice Tea. Tapal is known for its hot cup of quality blend of teas, but with TAPAL
ice tea, it had literally set a new precedent in market. The target market was defined for brand
Tapal Ice Tea is the all class like A, B+ and so on.
The companys product was totally focused on the young generation of the Pakistani
market. Target market which was selected by the company for ice tea is the most attractive
segment of the market. Because the Pakistan youth is the 60% of the total population and the
growth of this market is also very high. More over the early adopter are also from this segment
which can influence others to use the product.
Tapal Ice Tea offered Pakistani youth an attitudinal choice that comes in the kind of
flavors that they will like. Tapal ice tea was made for today's generation that loves to enjoy their
life at its fullest and chill out.
Revival of Ice Tea 37

5.3 Market Positioning and Differentiation
5.3.1. Price
The introductory price of ice tea was Rs30 and thus it was not very expensive
5.3.2. Place
They had not done adequate efforts to ensure the availability of Ice Tea across the
country. If they had tried to promote their brand, they could make it easily available everywhere
as Tapal is having a strong and wide distribution network.
5.3.3. Differentiation
Tapal Ice Tea offers Pakistani youth an attitudinal choice that comes in the kind of
flavors that they will like. Tapal ice tea was made for today's generation that loves to enjoy their
life at its fullest and chill out. Their differentiating points were:
Instant refreshment is yours anytime with our beverage.
Thirst-quenching and delicious, our Ice Tea is pure and satisfying.
Tapal positioned itself as a Refreshing taste of Ice Tea from Tapal - the experts in tea.
Made from real tea, Tapal Ice Tea combines the goodness of Tea Antioxidants with no
preservatives, no artificial colors and only 16% sugar which is less than most regular soft
drinks. TAPAL Lemon & Lime and Peach Ice Tea are a refreshing addition to the popular
TAPAL product line of traditional teas. The ice tea contains vitamin C that gives it a refreshing
tangy taste. Without doubt Tapal Ice Tea was the best drink that adds to the fun of activities that
you're engaging in; whether its music, shopping, party, workout and games, you can be sure of a
chilling time.


Revival of Ice Tea 38

5.4 Product Life Cycle









5.5 Marketing Mix
5.5.1. Product:
5.5.1.1. The Core
Tea Beverage
5.5.1.2. The Actual Product
Branding: pink color, aspect of refreshing, hard pack and soft sachets both.
Trade name: Tapal Ice Tea, a Tapal product
Brand personality Freshness, Healthy, Innovative, etc.
Brand equity: Tapal Ice Tea provides a quality, consistent, innovative and provides
energy.
(Tapal Tea Pvt. Ltd.)
Revival of Ice Tea 39

5.5.1.3. Advantages
A combination of caffeine and thiamine in tea gives you a relaxed but fully alert state of
mind and at the same time helps you to focus.
Tapal Ice Tea contains very less calories, less than half the calories of a common cola drink.
5.5.1.4. An Anti-oxidant
Body cells naturally produce free radicals (by-products) in the process of using oxygen.
These free radicals are known to cause damages such as heart disease, diabetes, cancer etc.
Antioxidants are substances that prevent and repair the oxidative damage to our body.
Antioxidants may also enhance immune defense and therefore lower the risk of cancer and
infection.
A recent study revealed that 5 servings of fruits and vegetables reduce the risk of stroke
by 25 percent. Ice Tea contains at least as many antioxidants as fruits and veggies such as
strawberries and spinach!
5.5.1.5. Nutritional Facts

Amount per serving of 100ml % Daily value
Calories 45 kcal
Total Fat 0g 0%
Sodium 0mg 0%
Total Carb 10g 4%
Sugar 10g 16%
Protein 0g
Vitamin C
(Tapal Tea Pvt. Ltd.)


Revival of Ice Tea 40

5.5.2. Price
Tapal had already differentiated itself in hot beverage because of strong taste and low
price. Company pricing strategy is high quality with fewer prices which gives a competitive
advantage against the multinational brands in beverages. Pricing charged for the product is
330 ml tin pack for 30 rupees
15 gm sachets for 6 rupees
Other brands charged for the beverages more than the Tapal Ice Tea for the same quality
level.

5.5.3. Placement
Channels of Distribution




RETAILER
Price = Rs.30 Profit = Rs.2.4 (8%)
WHOLESALER
Price = Rs.27.6 Profit = Rs.1.38 (5%)
COMPANY
Price = Rs.26.22 Profit = Rs.4.1952 (16%)
Manufacturer Distributor Retailer Consumer
Revival of Ice Tea 41

The channel of distributions for Tapal Ice Tea is simply as shown by the diagram as it
was being transferred from manufacturer to distributors, who vary according to geographical
dispersion, and then from retailer to final consumer.
Initially company has placed the ICE TEA in the metropolitan areas like:
1. Karachi
2. Hyderabad
3. Sukkur
4. Multan
5. Raiwind
In these five big cites the company has its warehouses and from these warehouses the
Tapal Ice Tea was distributed intensively to the all retail out lets of the cities.
5.5.4. Promotion
The launch was supported with a fully integrated marketing program that includes print,
radio and out-of-home advertising, point-of-purchase displays, Web/interactive communications
especially the launch of Pakistans first branded portal www.chillkaro.com, public relations and
consumer sampling programs. Tapal Ice Tea was sold in supermarkets, convenience and other
retail stores. Tapal had also used the online portal advertisement for Tapals Ice Tea promotion
which was consisted of different sections for visitors and members to browse for fun,
entertainment and lifestyle. The portal, through online advertising and a mix of interesting
content, was expected to attract around 10,000 page views per day in two months.
Revival of Ice Tea 42

5.5.4.1. Objective of Promotional Activities
To make the brand remind the consumer as much it could be.
Tapal was using both BTL and ATL for the purpose of promotion.
Tapal Ice Tea used BTL VANS in the metropolitan areas for the promotion.
Online portal advertisement.
Banners used in the cities.
Print media, TV channels were used for the Ice Tea.
(AdvanceEssays)






Revival of Ice Tea 43

5.6 Previous Promotional Activities of Tapal Ice Tea





Revival of Ice Tea 44


(New Blend of Tapal Tea, 2007), (News Blend of Tapal Tea, 2007), (NewsBlend of Tapal Tea, 2008)
(New Blend of Tapal Tea, 2007), (News Blend of Tapal Tea, 2007), (NewsBlend of Tapal Tea, 2008)


Revival of Ice Tea 45

5.7 Previous Sales Situation
During year 2007-2009 total units sold were 800,000, so per year units sold were around
260,000units. The company price for one unit was Rs.26.22. So total sales for one year in
amount can be calculated as:


Total sales for year 2007-2009 were:


(Imran, 2012)
(Shaikh, 2012)







Revival of Ice Tea 46

6. Findings of Consumer Market Research
We have conducted the consumer market research with the help of questionnaire and
analyze and evaluate the results of 250 respondents in order to gather the consumer reaction
towards Tapal Ice Tea. Majority of our respondents have already heard and experienced an Iced
Tea and those who did not hear about this product, are showing their willingness to experience
Ice Tea. Among those who have already used this product, 47% were Tapal Ice users.
We have also find out the consumers preference for flavors as well as price which have
helped us in introducing different variants of Tapal Ice tea at reasonable price. Majority of
respondents have favored that Ice Tea should be served in cans and avoid its alternative in
powdered form. We have examine that customer take into account various factors while
purchasing ice tea but most preference is given to its price and promotional activities as it
influence the consumer buying behavior.
When Tapal Ice Tea was introduced in the market, it had been used by various
respondents and they got to know about this new brand via Television and Billboards. Our
findings also reveal that Tapal Ice Tea was not having proper distribution network because which
customers face difficulty regarding its availability. As well as its characteristics are concerned,
people were not satisfied with its limited flavors, awareness programs and availability and have
suggested to improve these factors; while packaging, brand name, quality was good.
Results of consumer research also show that among the promotional activities, billboards
catch the most of customer attention then come television commercials and radio.

Revival of Ice Tea 47

7. Revitalize Market Analysis
7.1 Marketing Strategy
Tapal will follow the product development strategy. In this strategy the companies either
modifies the existing product, or formulates an entirely new product that satisfies a newly
defined customer want or market niche. Tapal will introduce an innovative product in the market
i.e. Tapal Ice Tea, which will cater the needs young generation as they are covering the 60% of
the entire population.
7.2 Marketing Objectives
Creating awareness to youth of Pakistan regarding the new innovation in the tea market
and a new trendy culture in Pakistan.
To increase the sales by serving a different and unconsidered segment of the market and
also to increase market share.
To build, strengthen, and nurture custom loyalty with Tapal in general and Tapal Ice Tea
in particular.
7.3 Marketing Mix
7.3.1. Product
The nature of product will remain the same; we will make changes in the logo of product.


New Logo of Tapal Ice Tea
Revival of Ice Tea 48

Along with the changing of logo, we have make advancements in its flavors by
introducing five variants of Tapal ice tea:
Peach
Lemon & Mint
Dark Chocolate
Berry Delight
Diet Tea
Revival of Ice Tea 49

7.3.2. Pricing

7.3.3. Placement
At the initial stage Tapal will market its product in three well developed cities of
Pakistan:
Islamabad
Karachi
Lahore
7.3.4. Promotion
Tapal will engage in various market campaigns and promotional activities in order to
revitalize their brand and capture the big market share. These activities are described below
along with the date of activity and prices.


RETAILER
Price = Rs.40 Profit = Rs.3.2 (8%)
WHOLESALER
Price = Rs.36.8 Profit = Rs.1.84 (5%)
COMPANY
Price = Rs.34.96 Profit = Rs.5.5936 (16%)
Revival of Ice Tea 50

7.4 New Promotional & Marketing Campaign
7.4.1. Website and Face book Page
On 5
th
may 2012, we will update the website and face book page of Chill Karo.
7.4.2. Teasers
A teaser ad reveal only a little about the advertiser or the product. Its purpose is to arouse
Revival of Ice Tea 51

widespread attention, and build excitement and expectations through consumer curiosity.
7.4.3. Re-launching Ceremony
We are selecting 2-Darya for our re-launching ceremony and there we will distribute the
free samples. For this event road art, revolving translits posters will be arranged.







7.4.4. Mobile Messages
We will also advertise its product through Mobile messages (SMS & MMS). We will use
message package. The costs of Mobile Messages will Rs.3000 for a year.
7.4.5. Radio
Radio is a universal medium enjoyed by people at one time or another during the day, at
home, at work, and even in the car. We will also use radio advertisement for unique combination
of high reach, high target ability, and low cost. We will cover 3 stations i.e. Karachi, Lahore and
Islamabad and consider the following channels.

Revival of Ice Tea 52

Channel Stations
FM 91 Karachi, Lahore and Islamabad
City FM 89 Karachi, Lahore and Islamabad
FM 100 Karachi, Lahore and Islamabad
FM 101 Karachi, Lahore and Islamabad
FM 103 Karachi, Lahore and Islamabad
FM 106 Karachi, Lahore and Islamabad
FM 107 Karachi

7.4.6. Advertisement
We will choose the attractive timings for our spots like we will play our advertising
during Sahir Ladhi show and Waqar Zaqa late night show etc.
Timings:
7am 10 am
5pm- 8pm
8pm-12pm
12am-2am
7.4.7. Content Integration
On radio, content integration will be done during Waqar Zaqa and Sahir Lodhi show.
On television, content integration will be done in Shahista Wahidi morning show and
Geo Shan se.



Revival of Ice Tea 53

7.4.8. Trade marketing
Trade marketing can be done on different marts and super stores and on retailers place.
Naheed.
Chase
Imtiaz.
Aghas.
Makro.

Metro etc


Revival of Ice Tea 54

7.4.9. TV Commercials
For TV commercials we have selected the following channels:
Ptv
Geo entertainment
Geo news
Geo super
Aag
Ary digital
Ary news
Indus music
7.4.10. Print media (Newspapers)
We are considering 3 newspapers in Karachi, Lahore and Islamabad.
Jang daily (circulation of 800,000 copies per day and readership of over 7 million)
Dawn
The news (circulation of 140,000 copies per day)
There are total 8 columns on one page so total area of printed page is 54cm 8col.
Full page = 432 cm. col
Half page = 216 cm.col
Quarter page = 108 cm.col


Revival of Ice Tea 55


Weekdays prices
Newspaper Full page price Half page price Quarter page price
Jang daily (Rs. 2430/cm) Rs. 1,049,760 Rs. 524,880 Rs. 262,440
Dawn (Rs. 1820/cm) Rs. 786,240 Rs. 393.120 Rs. 196,560
The news(Rs. 1250/cm) Rs. 540,000 Rs. 270,000 Rs. 135,000

Sundays prices
Newspaper Full page price Half page price Quarter page price
Jang daily(Rs. 2673/cm) Rs. 1,154,736 Rs. 577,368 Rs. 288,684
Dawn( Rs. 2035/cm) Rs. 879,120 Rs. 439,560 Rs. 219,780
The news(Rs. 1500/cm) Rs. 648,000 Rs. 324,000 Rs. 162,000





Revival of Ice Tea 56


7.4.11. Hoardings / Billboard
We are placing around 15 to 20 billboards/hoardings in 3 cities (Karachi, Lahore and
Islamabad) and for this we have selected the main locations for hoarding of different sizes. The
cost of one hoarding will be around Rs.150, 000 to Rs.800,000.
7.4.12. Streamers
We will cover different flyovers and roads in Karachi, Lahore and Islamabad.
Karachi Lahore Islamabad
Karsaz flyover Kalma Chowk Flyover Chandni chowk flyover
Seaview road Muslim town faizabad flyover
KPT flyover Ferozpur Flyover Faisal avenue flyover
Tipu sultan flyover on
shahrah-e-faisal
Jinnah Flyover Zero point interchange
flyovers
National stadium flyover - -
Millennium flyover - --
Baloch colony flyover - -
Urdu science flyover - -
Nazimabad flyover - -

There are almost 30 poles on each flyover and 1 pole has 2 streamers on it.
So 30 streamers per flyover 20 flyover = 600 streamers (total).
7.4.13. Magazines
Style 360
SHE
Spider
Aurora
Revival of Ice Tea 57

Fashion MAG

7.4.14. Posters
Advertising through posters can give us that added edge over closest competitor.
Creatively designed posters will be the great tools to pump up desire among potential customers.
Posters must bear a high emotional quotient in order to connect instantly with the onlookers and
are important tools of promotion owing to their visibility factor. Through poster advertisement
we will first grab the attention and then fan up their interest.
Revival of Ice Tea 58

Revival of Ice Tea 59


7.4.15. Road Art
Road art will be done on speed breaker, roads and flyovers. Road art will be done in all
three cities Karachi, Lahore and Islamabad. The cost for one city will be around Rs. 500,000.
Painting will also be done on the walls of under by pas of Karachi.





Revival of Ice Tea 60

7.4.16. Bus Shelters
We will take 6 bus shelters on rent for each city (Karachi, Lahore and Islamabad) for our
promotion which includes:
Bus shelter at boulevard (DHA)
Bus shelter at chaudar khaliq-uz-zaman (DHA)
Bus shelter at main shahrah e faisal traffic coming from karsaz to PAF bridge
Bus shelter at main shahrah e faisal traffic coming Airport (Makro) to PAF Bridge in
front of post office.

7.4.17. Roundabouts
We will also use the roundabout promotional technique and we will take two roundabouts
of Karachi and one of Lahore:
Punjab chowrangi (Karachi
Bahadrabad chowrangi (Karachi
Revival of Ice Tea 61

The estimated cost for 1 roundabout is around 500,000.

7.4.18. Buntings
Advertising will also be done with the help of buntings, which will cost Rs. 100,000.
7.4.19. Free Sampling
Traffic and mall activities will be design for free sampling. The total cost of free
sampling Rs. 500, 000. (Karachi, Lahore and Islamabad)
7.4.20. Basant and Concert in Universities
Karachi : IBA and IOBM
Lahore: LUMS and NCA
Islamabad: NUST


Revival of Ice Tea 62

7.4.21. University Picnic and Inter Universities Tournament
We will arrange university picnics for Iqra, Bahria and Zsabist. And the cost for one
picnic will be around 50,000. The 3 days inter universities night match tournament will also be
organized in Rashid latif cricket academy.

Revival of Ice Tea 63

8. Production Process
8.1 Raw Material
Tapal Ice Tea combines the goodness of Tea Antioxidants with no preservatives, no
artificial colors and only 16% sugar which is less than most regular soft drinks. Its raw material
includes water, ice, tea blends, flavors and sugar.
8.2 Process

Processing Of
Raw Material

Filling And
Compressing

Fillings Of
Cartons
Weight Of Cartons
Quality
Assurance/
Rechecking
Seal Packaging

Warehouse
Revival of Ice Tea 64

9. Supply Chain Activities
9.1 Supply Chain in Tapal Tea
There are basically two Supply Chain departments functioning in Tapal Tea.
Tea Supply Chain Department
Supply Chain Department
9.2 Overall Supply Chain Model




CEO
TEA SCD
Tea
Procurement
Raw Tea
Warehouse
Tea Quality
Tea Lab
Tea Blending
R&d
SCD
Distribution &
Warehouse
Planning &
Logistics
Outbound
Procurement
POS & General
Packing
Material
MRO
Inbound
Revival of Ice Tea 65

9.3 Mode of Transportation at Tapal Tea
Purchased teas are transported through containerized shipments from their country of
origin to reach the factory in the best condition possible. After an order is placed by the
distributor a Route plan is devised. Tapal Tea uses three different models of vehicles to transport
its tea to the distributors.
Shehzore (Max. capacity = 150 cartons, Min. capacity allowed = 115 cartons)
Mazda (Max. capacity = 400 cartons, Min. capacity allowed = 350 cartons)
Hino (Max. capacity = 400 cartons, Min. capacity allowed = 350 cartons)
9.4 Logistics at Tapal Tea
In Pakistan, the normal size of containers used in transporting tea is 40 feet. Tapal Tea
gives initiatives and bonuses of different sorts to the owners and asks them to maximize their
containers size to 50 feet. This is done so that more stock can be delivered at one time.
(Emad, 2012)






Revival of Ice Tea 66

10. Machinery Requirement Details
Description Quantity Total Amount (Rs)
Ice Tea Processing Machine 1 4,300,000
Weight Machine 1 10,000
Automatic Carton Packing Machine 1 38,400
Total 3 4,348,400

10.1 Ice Tea Processing Machine
10.1.1. Quick Details
Processing:

Filling Machine

Certificate:

ISO CE

Automatic:

Full Automatic

Beverage:

Juice, Tea, Hot Filling , Ice Tea Filling

State:

New

Operation Status:

Stable
Application:

Beverage
Capacity:

2000-20000bph





Revival of Ice Tea 67

10.1.2. Specifications
Ice Tea Processing Machine:
1. PET Bottle Filling Machine
2. Green Tea, Black Tea, Ice Tea
3. Hot Filling Machine
10.1.3. Features
The main equipment for bottling machine is fully automatic washing, bottling and 3-in-1
machine. The assistant equipments mainly include back-flow can, bottle feeding flue and bottle
discharging chain, additionally, such equipments as manual bottle feeding platform(or bottle
arranging machine), automatic cap feeding machine. The juice filling machine is designed
especially for bottle tea, juice and other kinds of functional drinks.
WASHING HEAD FILLING HEAD



Revival of Ice Tea 68

CAPPING HEAD FILLING TEA


(Alibaba)
10.2 Automatic Carton Packing Machine
10.2.1 Quick Details
Packaging Material Plastic
Application Commodity
Driven Type: Electric
Model Number: Pp-E500
Automatic Grade: Semi- Automatic
Condition: New
Certificate: ISO9001:20000


Revival of Ice Tea 69

10.2.2 Specification
Automatic carton packing machine.
1. Dimensions: 895*565*730mm
2. Min bundle: 60mm
3. Weight: 100kg
4. Rated power: 660W
Bundle Tape Width: 6~15mm
Min Bundle: 60mm
Max Bundle: No limitation
Bundle Speed: 1.5~3 second/minute
Rated Power: 660W
Motor RPM: 1400/rpm
Weight: 100kg
Dimensions: 895*565*730mm
Assembly Features: PCB twin circuits control, film control button, large power motor,
integrated electric soldering head, electromagnetic cluth transmission and
white alloy cutter.
(Automatic Carton Packing Machine)




Revival of Ice Tea 70

10.3 Digital Weight Electronic Weighbridge
10.3.1. Quick Details
Rated Load: 50kg
Power Supply: 110v/220v
Acuuracy 0.1
Model Number: Js50k
Display Type: LCD
10.3.2 Specifications
Weight Scale:
1. High Capacity balances
2. High Precision, LCD Screen
3. Pen size:340*300mm
4. Ext Dimension:460*320*160mm
High precision & fast response;
Standard RS232 communication Port;
Multiple weighing units:
Automatic calibration with standard weight;
Over-weighing protection;
Large LCD;
All metal construction, durable;
Flexible display support could be packed individually
(Digital Weigh Electronic Weighbridge)

Revival of Ice Tea 71

11. Location
The Head Office of Tapal Tea (Pvt) Ltd is located in Karachi city of Pakistan at Korangi
Industrial Area which is a most suitable site for any manufacturing plant as it filled with all sorts
of resources which connects it with the infrastructure of the city and keeps the work ongoing.
The area is easily accessible through public transports with taxis, rickshaws and public
buses like F-9, F-17, D-10 etc which makes it easier for the workers to reach their work places. It
is also equipped with proper electricity; gas and telephone connections that help stay connected
and keep working. The area is also highly covered with residential area which is beneficial for
both the employers who can get the labor force living nearby easily and the employees who can
easily go to their work place.
The image in the following map shows the location of XYZ Teas Head Office.

As it can be clearly seen that the place Tapal Tea Pvt. Ltd is located in is surrounded by
many manufacturing plants which makes this place highly valuable for the Government and this
is the reason that Government officials makes sure that work never stops here.
Tapal Tea (Pvt.)
Ltd
Revival of Ice Tea 72

11.1 Site
The Official Address of XYZ Teas Head Office is:
XYZ Tea (Private) Limited
Plot No. 40, Sector 15
Korangi Industrial Area
Karachi - 74900
Tel: 92-21-5063891...4
Cable: 'XYZ TEA'
Fax: 92-21-5063890
Email: info@XYZtea.com
11.2 Local Conditions
The plant of Tapal Tea (Pvt.) Ltd is situated in a very suitable location as far as
population is concerned because it provides them employment. Also Korangi is divided into two
main parts one is filled with manufacturing plants & the other is a residential area which prevents
the residents from being infected with harmful gases or wastages.
The location of Tapal Tea (Pvt.) Ltd does not disturb the infrastructure of the city at all as
the whole area is dedicated to manufacturing plants of different companies which make it easier
for the Government to allocate the resources likewise.
Because the plant is situated in an Industrial area it has a very little impact to the ecology
and landscape of the Country.
(Tapal Tea Pvt. Ltd.)
Revival of Ice Tea 73

11.3 Production Plant Layout


Revival of Ice Tea 74



Revival of Ice Tea 75

12. Human Resource Requirement
12.1 Labor Management
All governments regular labor laws are being followed.
The calculation of man-power requirement is done on annual basis.
If shortages are experienced due to high absenteeism or turnover it is being adjusted by
job distributions and overtime.
Multi-skilled Employees so that replacement can be found in case of skilled worker
absenteeism.
In Tapal there is no gender bias or gender discrimination.
12.2 Recruiting Process
Recruiting process starts 2 months earlier.
Head-hunt process is completed in 45 days max.
First priority is given to existing employees
Selection criteria is based on skill set, abilities and personality requirement of a specific
job.
Judgment is based on knowledge and attitude towards life and work.




Vacancy
Announcement
Screening
through
CV
Initial
Interview
Second
Interview
Reference
counter
check
Medical
Examination
Hiring
Revival of Ice Tea 76

12.3 Separation Process
One month notice period is fixed before leaving
Dues are cleared on the last day
An exit interview is also taken on which following is discussed
Reason for leaving the company
Employees experience with the company
Improvement opinions/ideas
If the company finds an employee involved in some fraudulent act then the person is
directly terminated without any notice.
12.4 Performance Measurement
MBO and behavioral review process is used for Performance Management.
Appraisal is done once a year based on the achievement ratio of MBOs.
Discussion between sectional head and employees in informal and open environment.
The promotion, job enrichment and enlargement options are also discussed.
12.5 Compensation and Benefits
Monetary as well as fringe benefits
Nine salary grades and the salary of employees move within the different bands of
grades.
The fringe benefits include transport facility and medical services
Revival of Ice Tea 77

The company has also set and R & D program with which the company researches about
the compensation plan being followed by companies of the same stature to benchmark
their salaries against the market.

12.6 Skill Improvement through Training
On Job trainings for employees
In-house trainings on leadership, team work and communication improvements
Special workshops for executives
Evaluation is done before and after the training
(Tapal Tea Pvt. Ltd.)
12.7 Administrative Staff / Labor Details
Description No Salary Total Monthly Salary
Brand Manager 1 120,000 120,000
Operators for processing machine 3 10,000 30,000
Operators for filling of cartons 2 6,000 12,000
Operators for weight checking 2 6,000 12,000
Operators for seal packing 2 8,000 16,000
Operators for quality assurance 2 10,000 20,000
Operators for warehouse 1 6,000 6,000
Total 13 Rs. 216,000
(SMEDA Tea Company)

Revival of Ice Tea 78

13. Financial Analysis
13.1 Initial investment
Machinery = Rs.4, 348,400
Initial media investment = Rs.8, 036,000
Total initial investment = Rs.12, 384,400
Initially we will invest Rs.12, 384,400. In this initial investment Rs.4,348,400 is for machinery
and remaining Rs.8,036,000 for the initial media investment in order to activate our brand and to
create the awareness of Tapal Ice Tea in the mind of consumers. Through the huge media
promotions we can easily target our target market and media promotion is the most effective way
to cater the target market.
13.2 Projected Sales Budget
Projected Sales Budget for Year 2013
On Quarterly Basis
Price Per Unit No. Of Units Sales
Quarter 1 Rs.34.96 210,000 Rs.7,341,600
Quarter 2 Rs.34.96 220,000 Rs.7,691,200
Quarter 3 Rs.34.96 300,000 Rs.10,488,000
Quarter 4 Rs.34.96 200,000 Rs.6,992,000

Revival of Ice Tea 79


Quarter 1
Quarter 1 is the introductory phase for Tapal ice tea so the sales will not good enough and
another reason for low sales is the flush season ( October- march) in which the demand of ice
tea decreases. So the sales of 210,000 units for Tapal ice tea will be Rs.7, 341,600.
Quarter 2
In quarter 2 the brand recognition will increase so the demand and sales will also increase
as compare to the 1
st
quarter and another reasons for the high demand is the lean season (march
September) in which the demand for ice tea increases. So the sales of 220,000 units for Tapal ice
tea will be Rs.7, 691,200.


7,341,600
7,691,200
10,488,000
6,992,000
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Quarterly Sales
Quarterly Sales
Revival of Ice Tea 80

Quarter 3
Quarter 3 is the growth period for Tapal ice tea and the demand for the ice tea will also
increase in this quarter because of lean season. So the sales of 300,000 units for Tapal ice tea will
be Rs.10, 488,000.
Quarter 4
In quarter 4 the sales will again decline as compare to quarter 2 and 3 because of the flush
season in which the demand will decrease. So the sales of 200,000 units for Tapal ice tea will be
Rs.6, 992,000.
Projected sales budget for year 2013-2017
Price per unit No. of units Sales
Year 2013 Rs.34.96 930,000 Rs. 32,512,800
Year 2014 Rs.34.96 970,000 Rs. 33,911,200
Year 2015 Rs.34.96 995,000 Rs. 34,785,200
Year 2016 Rs.34.96 1,050,000 Rs. 36,708,000
Year 2017 Rs.4.96 1,080,000 Rs. 37,756,800

Revival of Ice Tea 81


Form the above graph it is clear that the sales of year 2013 is low as compare to other
years. The reason is that it is the revival year for the tapal ice tea and in this year the huge
investment on media and promotional activities will done and also on machinery etc. in the year
2014 and 2015 the sales will be somewhat same and will be higher than year 2013 because the
brand will be registered in the minds of people and they will be willing to buy it. So because of
huge investment on promotional activities and awareness programs the sales will increase and
the demand for the product will also increase. In the year 2016 and 2017 the sales will again
increase as compare to previous years because the product will be on the maturity stage.




32,512,800
33,911,200
34,785,200
36,708,000
37,756,800
29,000,000
30,000,000
31,000,000
32,000,000
33,000,000
34,000,000
35,000,000
36,000,000
37,000,000
38,000,000
39,000,000
2013 2014 2015 2016 2017
Yearly Sales
Yearly Sales
Revival of Ice Tea 82

13.3 Projected income statement
13.3.1. Revenue
We will get the quarterly revenue of year 2013 by multiply the per unit price of product
with the units sold in the quarter i.e.
For 1
st
quarter:
For 2
nd
quarter:
For 3
rd
quarter:
For 4
th
quarter:
We will get the yearly revenue for year 2013-2017 by multiply the per unit price of
product with the units sold per year i.e.
For the year 2013:
For the year 2014:
For the year 2015:
For the year 2016:
For the year 2017:



Revival of Ice Tea 83

13.3.2 Cost of goods sold
13.3.2.1. Direct material
We will get the direct material by multiply the estimated cost of raw material with the
units sold.
So the quarterly direct material for year 2013 will be calculated as:
For the 1
st
quarter:
For the 2
nd
quarter:
For the 3
rd
quarter:
For the 4
th
quarter:

The direct material for year 2013-2017 will be calculated as:
For the year 2013: 13,950,000
For the year 2014: 14,550,000
For the year 2015:
For the year 2016:
For the year 2017:


Revival of Ice Tea 84

13.3.2.2. Direct labor
The labor which is directly involved in the production will come under this head. So the
cost of direct labor on quarterly basis of year 2013 will be Rs.270,000 and the total cost of direct
labor from year 2013 to 2017 will be increased by 2% each year. So the yearly direct labor will
be:
Year Direct Labor
Year 2013 Rs.1,080,000
Year 2014 Rs.1,101,600
Year 2015 Rs.1,123,632
Year 2016 Rs.1,146,185
Year 2017 Rs.1,169,110

13.3.2.3. Factory overhead
The 10% of revenue will be our factory head. So the quarterly FOH for year 2013 will be:
Quarter Revenue FOH
FOH For 1
st
Quarter 10% Of Rs.7,341,600 Rs.734,160
FOH For 2
nd
Quarter 10% Of Rs.7,691,200 Rs.769,120
FOH For 3
rd
Quarter 10% Of Rs.10,488,000 Rs.1,048,800
FOH For 4
th
Quarter 10% Of Rs.6,992,000 Rs.699,200


Revival of Ice Tea 85

The cost of yearly FOH for year 2103-2107 will be calculate as:
Year Revenue FOH
FOH For The Year 2013 10% Of Rs.32512800 Rs.3251280
FOH For The Year 2014 10% Of Rs.33911200 Rs.3391120
FOH For The Year 2015 10% Of Rs.34785200 Rs.3478520
FOH For The Year 2016 10% Of Rs.36708000 Rs.3670800
FOH For The Year 2017 10% Of Rs.37756800 Rs.3775680

13.3.2.4. Operating expenses
Marketing expense
Marketing expense will be change on the yearly and quarterly basis. For the year 2013
marketing expenses will be change on the quarterly basis because of fluctuation in demand as
well as in order to create the awareness. So the marketing expense for the four quarters of year
2013 will be:
Quarter Marketing Expense
For The 1
st
Quarter Rs.2,500,000
For The 2
nd
Quarter Rs.2,200,000
For The 3
rd
Quarter Rs.2,500,000
For The 4
th
Quarter Rs.2,300,000


Revival of Ice Tea 86

Marketing expense for the year 2013-2017 will be:
Year Marketing Expense
Year 2013 Rs.9,500,000
Year 2014 Rs.7,500,000
Year 2015 Rs.6,500,000
Year 2016 Rs.5,000,000
Year 2017 Rs.5,000,000

Transportation expense
We will distribute our product in Karachi, Lahore and Islamabad and production of
Tapal ice tea will be done in Karachi plant.so the product will be move from Karachi to Lahore
and Islamabad and for this we will use tapal transportation service . The distance from Karachi to
Islamabad is 1700km and the price of 1 liter diesel is Rs. 107 so the cost of one trip is Rs.75,
000, in this amount the salaries of driver and facilitators is also included. On the yearly basis the
transportation cost will increase by 5% in each year.
Transportation cost of four quarters of year 2013 will be:
Quarter Transportation Expense
For The 1
st
Quarter Rs.75,000
For The 2
nd
Quarter Rs.75,000
For The 3
rd
Quarter Rs.75,000
For The 4
th
Quarter Rs.75,000
Revival of Ice Tea 87

The cost of yearly transportation for year 2103-2107 will be calculated as:
Year Transportation Expense
For The Year 2013 Rs.300,000
For The Year 2014 Rs.315,000
For The Year 2015 Rs.330,750
For The Year 2016 Rs.347,288
For The Year 2017 Rs.364,653

Staff salaries
The monthly staff salaries are given below:
Description No Salary Total Monthly Salary
Brand Manager 1 120,000 120,000
Operators for processing machine 3 10,000 30,000
Operators for filling of cartons 2 6,000 12,000
Operators for weight checking 2 6,000 12,000
Operators for seal packing 2 8,000 16,000
Operators for quality assurance 2 10,000 20,000
Operators for warehouse 1 6,000 6,000
Total 13 Rs. 216,000

Revival of Ice Tea 88

The staff salaries for one year in Rs.216, 000 and the quarterly salaries is Rs.648, 000 for
the year 2013. Staff salaries will increase by 2% each year so the staff salaries for year 2013-
2017 are calculated as:
Year Staff Salaries
For The Year 2013 Rs.2,592,000
For The Year 2014 Rs.2,643,840
For The Year 2015 Rs.2,696,716
For The Year 2016 Rs.2,750,650
For The Year 2017 Rs.2,805,663

Utilities
The per month cost of utilities will be Rs.83, 000 and per quarter it will be Rs.249, 000
which is the 4% of the revenue which will be generated in each year. So we will calculate
utilities by taking the 4% amount of revenue.
Utilities of four quarters of year 2013 will be:
Quarter Transportation Expense
For The 1
st
Quarter Rs.243,664
For The 2
nd
Quarter Rs.307,648
For The 3
rd
Quarter Rs.419,520
For The 4
th
Quarter Rs.279,680

Revival of Ice Tea 89

The cost of yearly utilities for year 2103-2107 will be calculated as:
Year Revenue Transportation Expense
For The Year 2013 4% Of Rs.32,512,800 Rs.1300512
For The Year 2014 4% Of Rs. 33911200 Rs. 1356448
For The Year 2015 4% Of Rs. 34785200 Rs. 1391408
For The Year 2016 4% Of Rs. 36708000 Rs. 1468320
For The Year 2017 4% Of Rs. 37756800 Rs. 1510272

Miscellaneous
We will take the estimated amount for miscellaneous expenses. So for one month the
amount is Rs.10, 000 and for one quarter the amount of miscellaneous will be Rs.30, 000. It will
be increased by 5% for each year, so the miscellaneous for year 2013-2017 will be calculated as:

Year Miscellaneous
For The Year 2013 Rs.120,000
For The Year 2014 Rs.126,000
For The Year 2015 Rs.132,300
For The Year 2016 Rs.138,915
For The Year 2017 Rs.145,860


Revival of Ice Tea 90

Projected income statement for year 2013
On the quarterly basis
1
st
quarter 2
nd
quarter 3
rd
quarter 4
th
quarter Total
Revenue 7,341,600 7,691,200 10,488,000 6,992,000 32512800
Less COGS:
Direct material 3,150,000 3,300,000 4,500,000 3,000,000 13950000
Direct labor 270,000 270,000 270,000 270,000 1080000
FOH 734,160 769,120 1,048,800 699,200 3251280
Total COGS (4,154,160) (4,339,120) (5,818,800) (3,969,200) 18281280
Gross profit 3,187,440 3,352,080 4,669,200 3,022,800 14231520
Less: operation expenses
Marketing expense 2,500,000 2,200,000 2,500,000 2,300,000 9500000
Transportation expense 75,000 75,000 75,000 75,000 300,000
Staff salaries 648,000 648,000 648,000 648,000 2,592,000
Utilities 293,664 307,648 419,520 279,680 1300512
Depreciation 45,000 45,000 45,000 45,000 180,000
Miscellaneous 30,000 30,000 30,000 30,000 120000
Total operating expense (3,591,664) (3,305,648) (3,717,520) (3,377,680) 13992512
Net operating income (404,224) 46,432 951,680 (354,880) 239008
Add: depreciation 45,000 45,000 45,000 45,000 180,000
Net cash flow (359,224) 91,432 996,680 (309,880) 419,008

Revival of Ice Tea 91












Quarter 1 Quarter 2 Quarter 3 Quarter 4
Quarterly Net Income -404,224 -464,320 951,680 -354,880
-404,224
-464,320
951,680
-354,880
-600,000
-400,000
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
A
x
i
s

T
i
t
l
e

Quarterly Net Income
Revival of Ice Tea 92

Projected income statement for year 2013-2017
Year 2013 Year 2014 Year 2015 Year 2016 Year 2017
Revenue 32512800 33911200 34785200 36708000 37756800
Less COGS:
Direct material 13950000 14550000 14925000 15750000 16200000
Direct labor 1080000 1101600 1123632 1146105 1169027
FOH 3251280 3391120 3478520 3670800 3775680
Total COGS 18281280 19042720 19527152 20566905 21144707
Gross profit 14231520 14868480 15258048 16141095 16612093
Less: operation expenses
Marketing expense 9500000 7500000 6500000 6000000 5500000
Transportation expense 300,000 315,000 330750 347288 364652
Staff salaries 2,592,000 2,643,840 2,696,717 2,750,651 2,805,664
Utilities 1300512 1356448 1391408 1468320 1510272
Depreciation 180,000 180,000 180,000 180,000 180,000
Miscellaneous 120000 126000 132300 138915 145860.75
Total operating expense 13992512 12121288 11231175 10885174 10506449
Net operating income 239008 2747192 4026873 5255922 6105644
Add: depreciation 180,000 180,000 180,000 180,000 180,000
Net cash flow 419,008 2,927,192 4,206,873 5,435,922 6,285,644

Revival of Ice Tea 93



13.4 Net Present Value
In order to calculate the Net Present Value of a project we will proceed as follow:
1. Find the present value of each cash flow, including all inflows and outflows,
discounted at the projects cost of capital.
2. Sum these discounted cash flows; this sum is defined as the projects NPV.
The equation for the NPV is as follows:

()

()

()

()

()


()

()

()

()

()

()





2013 2014 2015 2016 2017
Yearly Net Income 239,008 2,747,192 4,026,873 5,255,922 6,105,644
239,008
2,747,192
4,026,873
5,255,922
6,105,644
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
N
e
t

I
n
c
o
m
e

Yearly Net Income
Revival of Ice Tea 94




Our projects NPV is positive i.e. RS.1, 192,068 which indicates the acceptance of project,
therefore; we will go for the revitalization Tapal Ice Tea.

14. Conclusion
The context of this report concludes that only through efficient & effective strategies Tapal Iced
Tea can be brought back to life with a boom. The segment has a great potential of growth as it
targets the younger generation & for those who are fun loving & thrill seekers; those who likes to
change & for those who wants to stay healthy.
There were some advantages of conducting this report:
We went through a very different phase of the product life cycle i.e. Revitalization, which
was very informative & interesting to learn.
We came across different insights of the business world while we were working on this
report which helped us in learning.
While working on this report we got a good picture of how business is started & how to
rescue it if it is drowning.
While working on this report we met Professionals in Tapal Tea Pvt Ltd who shared a
great deal of information, they showed us their production & quality department which
helped us to understand how manufacturing & testing is done in the real world.

Revival of Ice Tea 95

Apart from advantages there were few drawbacks too:
Time constraint was a major drawback in this report. There was lot to do in a very little
time available.
While conducting Consumer Market Research many of respondents didnt took the
questionnaire seriously so it was really hard for us to gather useful & authentic
information.










Revival of Ice Tea 96

Bibliography

(n.d.). Retrieved 2012, from Tapal Tea Pvt. Ltd.: http://www.tapaltea.com/tapal_icetea.html
(n.d.). Retrieved 2012, from Tapal Tea Pvt. Ltd.: http://www.tapaltea.com/welcome.html
(n.d.). Retrieved from AdvanceEssays:
http://www.advanceessays.com/samples/Marketing_Plan.pdf
New Blend of Tapal Tea. (2007). Retrieved from Tapal Tea Pvt. Ltd.:
www.tapaltea.com/pdfs/NewsBlend%20Jan07-June07.pdf
News Blend of Tapal Tea. (2007). Retrieved from Tapal Tea Pvt. Ltd:
www.tapaltea.com/pdfs/NewsBlend%20July07-dec07.pdf
NewsBlend of Tapal Tea. (2008). Retrieved from Tapal Tea Pvt. Ltd.:
www.tapaltea.com/pdfs/NewsBlend%20Jan08-June08.pdf
Adresh Akhtar, M. (n.d.). Food Industry.
Alibaba. (n.d.). Retrieved from Alibaba website: http://www.alibaba.com/ice tea processing
machine
Automatic Carton Packing Machine. (n.d.). Retrieved from alibaba.com:
http://www.alibaba.com/automatic carton packing machine
Digital Weigh Electronic Weighbridge. (n.d.). Retrieved from alibaba:
alibaba.com/digital.weigh-telectronic weighbridge
Revival of Ice Tea 97

Ead, M. (n.d.). Supply Chain Activities of Tapal Tea Ltd. Retrieved from Slide Share:
http://www.slideshare.net/MohammedEmad1987/supply-chain-activities-at-tapal-tea
Emad, M. (2012). Supply Chain Activities of Tapal Tea Pvt. Ltd. Retrieved from SlideShare:
http://www.slideshare.net/MohammedEmad1987/supply-chain-activities-at-tapal-tea
Imran, M. (2012). (S. S. Anum Khan, Interviewer)
Shaikh, M. I. (2012). (O. N. Anum Khan, Interviewer)
SMEDA Tea Company. (n.d.). Retrieved from Scribd :
http://www.scribd.com/doc/56519783/SMEDA-Tea-Company-1
(n.d.). Tapal Ice tea.










Revival of Ice Tea 98







Annexes

Potrebbero piacerti anche