1

CONTENTS

• Uni Lever’s Codes of Business

Principles 6
• Uni Lever Pakistan
9
• Market Analysis
11
• Lipton’s Targeting Strategies
13
• Market Segmentation
13
• Uni Lever’s Lipton Yellow Label
16
• Product
16
• Pricing
21
• Placement
22
2
 • Promotion
24
• Swat Analysis of Lipton Yellow
Label 26
• Recommendation
27

PREPARED BY

• Hafiz Umair Sultan

• Amin Chiraghuddin
• Mohammad Owais

3
“We dedicate this humble effort of ours to
the brave and courageous people of Iraq
who even after so much suffering are
standing strong”

4
 Acknowledgement

A million grateful thanks to Allah the almighty that gave us

the perseverance to complete this project, which was
indeed a difficult one.

We are very thankful to our teacher Miss Saima for

assigning us this report. This was a totally new experience
for us to get the information, as to how companies make
their marketing strategies like targeting strategies,
distribution, pricing strategies etc.

We would also like to acknowledge the invaluable

guidance; supervision and encouragement provided by
Miss. Benifer, Miss Tanzeen and Mr. Ali Sheikh without
whom it might not have been possible to complete the
report.

5
 Executive Summary

The report is an effort to identify different aspects of

Marketing Management in Lipton Yellow Label tea, which
is one of the major players in the branded tea market in
Pakistan; Lipton the only international tea brand in Pakistan
changed its initial elite based marketing and turned to
serving the masses of Pakistan with premium quality tea.

Towards the start of report figures regarding the Lipton

yellow label market share, total market, and contribution
from different tea brands are also given.

An integral part of the report is detailed analysis of the

marketing aspect including pricing, product, placement and
promotion areas.

Product Life Cycle and Big Matrix of Lipton yellow label

tea are also discussed. Challenges and Recommendations
are also given to the best of our knowledge.

6
 Preface

Attached is the report for the course of Introduction to

Marketing. The report is about relating our Marketing
knowledge to a real life product. The product, which
we chose, is Lipton yellow label tea. This report
consists of application of all the 4 P’s of Marketing i.e.
Price, Promotion, Placement and Product.
sa
Interviews, with the Uni lever’s officials, were conducted
prior to the beginning of this report. The marketing
information is based on the guidance provided by the Uni
lever officials during our visits.

The report is divided in four main sections. The first

section cover the details of what the Lipton yellow label is
i.e. the Product, then Pricing strategies of tea and then
Place and Promotion aspect discussed. Towards the end of
the report, Challenges and Recommendations are also given
to the best of our knowledge.

7
 Uni lever’s Mission Statement

Our purpose in Uni lever is to meet the everyday needs of

people everywhere – to anticipate the aspirations of our
consumers and customers and to respond creatively and
competitively with branded products and services, which
raise the quality of life.

Our deep roots in local cultures and markets around the

world are our unparalleled inheritance and the foundation
for our future growth. We will bring our wealth of
knowledge and international expertise to the service of
local consumers – a truly multi-local, multinational.

Our long-term success requires a total commitment to

exceptional standards of performance and productivity, to
working together effectively and to a willingness to
embrace new ideas and learn continuously.

We believe that to succeed requires the highest standards of

corporate behavior towards our employees, consumers and
the societies and world in which we live. This is Uni lever's
road to sustainable, profitable growth for our business and
long-term value creation for our shareholders and
employees.

8
 Uni Lever’s Code of Business Principles
Standard of Conduct:
We conduct our operations with honesty, integrity and openness, and with respect for the human
rights and interests of our employees. We shall similarly respect the legitimate interests of those
with whom we have relationships.

Obeying the Law:

Unilever companies and our employees are required to comply with the laws and regulations of
the countries in which we operate.

Employees:
Unilever is committed to diversity in a working environment where there is mutual trust and
respect and where everyone feels responsible for the performance and reputation of our company.
We will recruit, employ and promote employees on the sole basis of the qualifications and
abilities needed for the work to be performed. We are committed to safe and healthy working
conditions for all employees. We will not use any form of forced, compulsory or child labour. We
are committed to working with employees to develop and enhance each individual’s skills and
capabilities. We respect the dignity of the individual and the right of employees to freedom of
association. We will maintain good communications with employees through company based
information and consultation procedures.

Consumers:
Unilever is committed to providing branded products and services which consistently offer value
in terms of price and quality, and which are safe for their intended use. Products and services will
be accurately and properly labelled, advertised and communicated.

Shareholders:
Unilever will conduct its operations in accordance with internationally accepted principles of
good corporate governance. We will provide timely, regular and reliable information on our
activities, structure, financial situation and performance to all shareholders.

Business Partners:
Unilever is committed to establishing mutually beneficial relations with our suppliers, customers
and business partners. In our business dealings we expect our partners to adhere to business
principles consistent with our own.

Community Involvement:
Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfill our
responsibilities to the societies and communities in which we operate.

9
Public Activities:
Unilever companies are encouraged to promote and defend their legitimate business interests.
Unilever will co-operate with governments and other organizations, both directly and through
bodies such as trade associations, in the development of proposed legislation and other
regulations, which may affect legitimate business interests. Unilever neither supports political
parties nor contributes to the funds of groups whose activities are calculated to promote party
interests.

The Environment:
Unilever is committed to making continuous improvements in the management of our
environmental impact and to the longer-term goal of developing a sustainable business. Unilever
will work in partnership with others to promote environmental care, increase understanding of
environmental issues and disseminate good practice.

Innovation:
In our scientific innovation to meet consumer needs we will respect the concerns of our
consumers and of society. We will work on the basis of sound science, applying rigorous
standards of product safety.

Competition:
Uni lever believes in vigorous yet fair competition and supports the development of appropriate
competition laws. Uni lever companies and employees will conduct their operations in
accordance with the principles of fair competition and all applicable regulations.

Business Integrity:
Unilever does not give or receive, whether directly or indirectly, bribes or other improper
advantages for business or financial gain. No employee may offer, give or receive any gift or
payment, which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe
must be rejected immediately and reported to management. Unilever accounting records and
supporting documents must accurately describe and reflect the nature of the underlying
transactions. No undisclosed or unrecorded account, fund or asset will be established or
maintained.

Conflicts of Interests:
All Unilever employees are expected to avoid personal activities and financial interests, which
could conflict with their responsibilities to the company. Unilever employees must not seek gain
for themselves or others through misuse of their positions.

Compliance - Monitoring - Reporting:

Compliance with these principles is an essential element in our business success. The Unilever
Board is responsible for ensuring these principles are communicated to, and understood and
observed by, all employees. Day-to-day responsibility is delegated to the senior management of
the regions and operating companies. They are responsible for implementing these principles, if

10
necessary through more detailed guidance tailored to local needs. Assurance of compliance is
given and monitored each year. Compliance with the Code is subject to review by the Board
supported by the Audit Committee of the Board and the Corporate Risk Committee. Any
breaches of the Code must be reported in accordance with the procedures specified by the Joint
Secretaries. The Board of Unilever will not criticise management for any loss of business
resulting from adherence to these principles and other mandatory policies and instructions. The
Board of Unilever expects employees to bring to their attention, or to that of senior management,
any breach or suspected breach of these principles. Provision has been made for employees to be
able to report in confidence and no employee will suffer as a consequence of doing so.

UNI LEVER PAKISTAN

“Touching hearts, Changing lives”

Uni Lever (Pakistan) Limited Formerly known as Lever Brothers (Pakistan) Limited. The
Company's principal activities are to manufacture and distribute Tea (Brooke Bond, Lipton);
Wall's Ice Cream; Edible Oils and Fats (cooking oils, margarine, specialized fats/oils for the
bakery/food industry under the Dalda, Blue Band and Planta brand names); Detergents and
personal products (Lux, Rexona and Lifebuoy soaps, Sunsilk shampoo); Fabric Wash & Home
Care (Power Surf, Wheel Washing Powder, Vim). Beverages accounted for 41% of 2001
revenues; Detergents and personal products, 32% and Food, 27%.

Uni lever is one of the biggest consumer goods company in the world. UNI LEVER’S core
business is the production of fast moving consumer goods or “FMCG.

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 Every day, around the world, people reach for Uni Lever products. Their brands are trusted
everywhere and, by listening to the people that buy them; Uni Lever has grown into one of the
world’s most successful consumer goods companies. In fact, 150 million times a day, someone
somewhere chooses a Uni Lever product.

Look in your fridge, or on the bathroom shelf and you’re bound to see one of Uni Lever’s well-
known brands. They create market and distribute the products that people choose to feed their
families and keep themselves and their homes fresh.

People’s lives are changing fast. As way we all live and work evolves, our needs and tastes
change too. Uni Lever aim’s to help people in their daily lives. So they keep developing new
products, improving tried and tested brands and promoting better, more efficient ways of
working.

Uni Lever was created in 1930 when the British soap maker Lever Brothers merged with the
Dutch margarine producer, Margarine Unie. At the time, an international merger was an unusual
move. But the owners of the two companies could see that bringing together complimentary
businesses with strong global networks would create new opportunities. The companies were
competing for the same raw materials, both were involved in large-scale marketing of household
products and both used similar distribution channels. Margarine Unie grew through mergers with
other margarine companies in the 1920s. William Hesketh Lever founded lever Brothers in 1885.
Lever established soap factories around the world. In 1917, he began to diversify into foods,
acquiring fish, ice cream and canned foods businesses. In the Thirties, Uni Lever introduced
improved technology to the business. The business grew and new ventures were launched in
Latin America. The entrepreneurial spirit of the founders and their caring approach to their
employees and their communities remain at the heart of Uni Lever's business today.
Employing 265,000 people, Uni Lever has two parent companies – Uni Lever NV and Uni Lever
PLC – which, despite being separate businesses, operate as a single unit with the same board of
directors. Uni Lever's corporate centers are London and Rotterdam.

Today UNILEVER is a multinational in the literal sense, which has inspired the corporate world
with its innovation, professionalism and competitive spirit. Its operations are spread over fifty-
two countries and millions of people worldwide use its products every day to fulfill and satisfy
their needs. Uni Lever has a portfolio of brands that are popular across the globe – as well as
regional products and local varieties of famous name goods. This diversity comes from two of
Uni Lever’s key strengths:

 Strong roots in local markets and first-hand knowledge of the local culture.

 World-class business expertise applied internationally to serve consumers

everywhere.

Focusing on performance and productivity, Uni Lever encourages its people to develop new ideas
and put fresh approaches into practice. Hand in hand with this is a strong sense of responsibility
to the communities it serves. Uni Lever doesn’t only measure success in financial terms; how
they achieve results is important too. Uni Lever works hard to conduct business with integrity –
respecting their employees, their consumers and the environment around them.

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 MARKET ANALYSIS
Tea consumption in Pakistan is very high and Pakistan alone consumes around 4% of the world’s
tea production, which also makes it a very good market for tea brand such as Lipton yellow label.

Market situation:
Pakistan’s tea market has a total market size of Rupees 20 billion, or 120000 tons of tea, out of
which the share of open tea is 60% which accounts to 12 billion rupees or 72 thousand
tons of tea, the packaged tea sector holds only 40% of the market which is worth around
8 billion rupees or 48 thousand tons of tea.

BRANDED
OPEN TEA
TEA OPEN TEA SELLERS
40% SELLERS
60% BRANDED TEA

Demand:
Pakistan’s total tea demand is around 150000 to120000 tons of tea annually, demand and supply
are equal, and no company can produce more than the demand as tea leaves go stale after a period
3-4 months.

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Industry Growth Rate:
The industry growth rate is 4%; we think that most of the people in Pakistan are regular users of
tea so the market will continue to grow at a steady rate.

Market competition:
The tea market in Pakistan is very well saturated because of the high consumption of open tea
which accounts for over 60% of tea sold but if we look at the branded tea market there
Brooke bond leads the market in branded tea, while Tapal being second and Lipton
being third in terms of sales with other small brand of Uni lever and Tapal also laying
claim to the market.

23% 4%
BROOK BOND SUPREEM
LIPTON

29% A-1 KARAK CHAP

TAPAL
OTHERS
34%
Slice 6
10%
0%

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 Lipton’s Targeting Strategies
Lipton uses the concentrated marketing strategy, it basically segments the upper class due to its
high price and premium quality but it also caters the need of the middle upper middle and lower
class by offer different product line such as the Lipton sashes which are relatively cheap and
other small packs that Lipton has introduced to cater these market segments as well.

MARKET SEGMENTATION

Geographic:

World region South Asia

Country Pakistan

Target market Pakistan

Market size 80-100 million

Density Urban, suburban

Climate Southern

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Demographic:

Age 12 and above

Gender Male, female

Family size 1 to 4 or above

Lifecycle Young, single young, married, married with children

Income 5000 and above

Occupation Students, Teachers, Skilled laborers, unskilled

laborers, managers, clerks etc

Education Illiterate, Metric, Intermediate, Graduation.

Religion Muslims, Christians, Hindus

Race South Asian

Nationality Pakistani

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Hypsographic:

Social class All

Lifestyle Any

Personality Any

Behavioral:

Occasion Regular occasion

Benefits Quality, economy, convenience, speed

User status Potential user, first time user, regular user.

Usage rate Light user, medium user, heavy user

Loyalty status Strong

Product Attitude Energy, Fun, Youth

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 UNI LEVER’S
LIPTON YELLOW LABEL

“SIGN OF GOOD TASTE”

Uni lever is the largest seller of packet tea in the world through their two biggest brands Lipton
and Brooke Bond tea.

Lipton is the flag product of Uni lever by which the company likes to be identified; it is one of
Uni lever’s largest brands and the world's most popular tea brand, enjoyed by consumers
everywhere. It is available in more than 100 countries and has a global turnover of euros 1.9
billion. The brand grew 5% in 2000. Top markets are the US, Italy, Japan, Egypt, France, Turkey,
S. Arabia, Pakistan, Belgium and Poland.

In Pakistan Lipton is a less popular as compared to brook bond, which is also a Uni lever brand
and the local Tapal brand but in a market where 60% consumers prefer lose tea as compared to
packaged it is still a major player.

Lipton’s annual sales are around 8 to 15 thousand tons of tea which might not be significant in
the over all tea market in Pakistan but if we look at only the branded tea market this represents a
major chuck is a of the packaged tea market.

• PRODUCT:
Lipton yellow label tea has always been considered a premium brand with premium quality it is
one of the most high quality tea in Pakistan.

Lipton offers tea, which is of the highest quality imported from mostly African and Subcontinent
countries, which provide high quality tealeaves and are according to the taste of the Pakistani
consumers.

Lipton is aiming to supply customers with a product that shows that Lipton genuinely
understands their tastes and preferences.

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 Suppliers:
Uni lever Pakistan limited mostly buys tea from African countries because of the great taste,
smell and quality of the tea leaves but during 1990 to1992 Uni lever Pakistan limited also started
buying tea from subcontinent tea producing countries like India, Srilanka, and Bangladesh to
fulfill shortages because importing tea from African countries namely Kenya, Zambia, Zimbabwe
and South Africa takes 8 to 9 months.

Product quality:
Lipton yellow label prides its self on having the best blend in the market; Lipton officials stated
that their blending techniques were unique and sophisticated so as to ensure high quality taste and
smell; checks are conducted at every level of blending to make sure that the product is of the
highest quality.

Lipton also uses professional tea tasters who taste the tea and give their recommendations about
it, all in an effort to come up with the best blend.

Product style and design:

Lipton’s style and design has always been one of its strongest features. Lipton’s logo style has
always been a part of its appeal to its consumers right from the very start the yellow and red color
the design of its different quantity packs and boxes, the white stripes on its teabags box are all
internationally recognized.

Packaging:
To ensure quality of the manufactured tea packaging is effectively done to restore the customer’s
confidence at the other end of consumption.

• Shrink Wrapping
• Aluminum sealing

These methods of packaging are used to ensure the quality, taste and smell of the tea. Packaging
material is mostly obtained from outside sources. These packaging materials include plastic jars,
aluminum, cartons, shrink-wraps and boxes for teabags etc.

Labeling

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Lipton Super graphics is a background device that is used to add impact and to enliven and
enhance the branding of applications. Lipton is Yellow and Red brand. When used in balanced
way these colors are all needed to understand 'Lipton'. This yellow and red color is the trademark
of Lipton in the minds of its consumers and competitors alike and is an integral part of Lipton’s
success.

Product development and research:

Product development and research is an important factor in the long-term success of a product.
Uni lever Pakistan limited with its huge research and development infrastructure has always tried
to make sure that new innovations are introduced to the Lipton brand to make it better then it was
to ensure its success.

Product lines:
Lipton was first introduced in medium and large size tin boxes as open tea but now there is
Lipton danedar, Lipton family pack and Lipton tea bags available in
50g,
100g,
200g packs,
400g Plastic jars
100g and 500-gram boxes for tea bags,
7g Sachet
These different quantity packs are in line with the product line extension strategy that Lipton
yellow label is following.

Product life cycle:

Lipton yellow label has been doing very well for many years. Two years back Lipton yellow
label’s sales had gone down as this product had reached its maturity stage so Uni lever Pakistan
took steps to was rejuvenate its flag product in Pakistan, modifications were made to its
packaging and labeling giving it a more pronounced 'Lipton' look. Aggressive marketing was
started to re claim the lost market. Lipton yellow label was in its maturity stage when it was
rejuvenated which extended its maturity stage in its life cycle.

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 Sales

Profit

Time
0
Product
Introduction Growth Maturity Decline
Developme
nt Stage

BCG matrix
Uni lever considers Lipton yellow label as a Star where as Lipton’s tea bags, which are
considered stars internationally in Pakistan Uni, lever defines them as question marks.

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 STAR QUESTION MARK

?
High

MARKET GROWTH

CASH COW
DOG
RATE
Low

HIGH LOW

MARKET SHARE RATE

Lipton yellow label tea Tea bags

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• PRICING:
Uni levers Pakistan follows a product based pricing techniques for all its products which is the
pricing policy of Uni lever in all the countries it is operating in it never gets involved in price
wars with its competitors.

Pricing Approaches:
In conformity with company policy Lipton yellow label tea also follows a product based pricing
system in which they charge a particular profit over cost of the product.

Prices of different packs of Lipton yellow label tea in

Pakistan:
50 tea bag box Rs. 64

100 tea bag box Rs. 125

200gm pack Rs. 60

100gm pack Rs. 30

400gm pack Rs. 115

450gm jar Rs. 125

7gm Sachet Rs. 7

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 AMIN BHAI YAHAN PAY
PRICES SAHI KAR K
LIKH DENA JO AAJ KAL
KI HOON WOH
• PLACEMENT:
Lipton yellow label being a consumer good follows an intensive and selected distribution policy
in the placement of its products it tries to reach its consumers any where and every where.

Intensive distribution:
Lipton follows a n intensive distribution policy with its 50gm, 100gm, 200gm packs, 400gm
Plastic jars and its 7gm Sachet because these packs are used by the masses and have a higher
demand so by following this strategy it is made sure that Lipton is with in the reach of its
consumers.

Selected distribution:
Lipton yellow label follows an selective distribution policy with its 100gm and 500-gm tea bags
boxes because they are only used by a particular section of the society namely the upper and
upper middle class so these tea bags are only placed in big utility stores, big hotels and posh areas
where consumers of tea bags are concentrated.

Lipton yellow label distribution network:

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Lipton possess a very large distribution network it has 3 depots to store its product, 550
distributors to distribute the tea around Pakistan 3 factories to process the imported tea leaves and
produce the final product, Lipton also has 2500 recognized Lipton retailers in Karachi, Lahore,
and Rawalpindi to sell its tea.

Lipton Tea Depots

Distributors

Super stores Big hotels

Wholesaler

Retailer

Consumers

Out of home department:

Lipton yellow label tries to place its product at all the major events in the country Lipton’s out of
home department team goes to great lengths to secure exclusive rights to supply their tea to all
major events e.g.
Recently during the 2002 ITCN exhibition at the expo center in Karachi Lipton secured exclusive
rights to provide tea to this international event this kind of distribution is all in line with the
intensive distribution policy that Lipton is following.

Lipton tea vending machines:

In an effort to provide instant Lipton tea to consumer Lipton carried out a small experimental
distribution campaign. Lipton placed tea vending machines in several key areas in Karachi this
concept although a well established one in the west is relatively new to the Pakistani market so
far the results have been mixed.

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• PROMOTION:
Uni lever spend heavily on the promotion and advertising of its products according to Uni lever
Pakistan officials the company spends around 10 to 15 % of its gross sales on advertising and
promotional schemes to support their products.

85%
TOTAL COMPANY
REVENUES

TOTAL PROMOTIONAL
BUDGET
15%
0%

Promotion of Lipton yellow label tea:

Lipton has always been very innovative in its promotional activities; Lipton uses almost all the
medias of information to promote its self they spend heavily on print and electronic
advertisements, they undertake massive advertisement campaigns, Co branding there product
with another related product they even organize media events, sponsor shows, hire musicians,

26
actors and other stars all in an effort to promote them selves and achieve an edge over the
competition.

Promotional advertisements:
From the very beginning Lipton has associated its self with youth, fun & energy so to portray its
self in that way it has always hired stars, which can relate Lipton to this concept e.g.
Nazia Hasan and Zohaib Hasan were hired to represent Lipton in an advertisement campaign and
Lipton sponsored their concerts all in an effort to position its self as a fun and energy product.

Lipton hired Ali Haider and Hadiqa Kiani for their marketing but the concept of drinking tea on a
rainy day did not work well for Lipton.
Lipton recently another advertisement campaign was undertaken with out hiring any major
cricket, music or film star to represent their product this was a major shift from the star related
advertisement policy that Lipton had in Pakistan but they succeeded in promoting there product
with the same concept of fun and energy while also relating to the lower and lower middle classes
in this advertisement campaign.

Co Branding:
Lipton has been very successful in using co branding to promote its self it used various schemes
of co branding its self with another related product e.g.

Offering free sugar with Lipton tea.

Offering free candy biscuits with Lipton tea.

Offering free milk with Lipton tea.

All co branding promotional schemes are for a period of 4 to 6 weeks only.

Internet advertisement:
Lipton also setup its own website “planet lipton.com” in order to use the Internet to promote itself
this website is also used to support different promotional schemes that Lipton undertake from
time to time

Promotional schemes, programs & events:

Lipton undertakes various promotional schemes and organizes events by its self or participates or
sponsors other events e.g.

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Recently Lipton made the world largest tea bags, which got it in to the Gennies book of world
records.

They sponsored the Basant mela in Lahore and Karachi.

They sponsor shows like Lipton time.

Lipton also sponsors concerts of different musician.

Swat Analysis of Lipton Yellow Label

tea
Strengths:

Strong brand name

• Premium taste
• Strong distribution structure
• Foreign trained staff
• Highly effective marketing team
• Quality control staff
• International brand name

Weaknesses:

• High price
• Stiff competition
• Large advertising budget

Opportunities:

• Huge market to exploit

• Strong brand loyalty

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 Threats:
• Political situation
• High consumption of open tea
• Tapal’s recent marketing campaign
• High tariffs on tea imports
• Smuggling
Challenges:
Lipton yellow label tea like any other international brand in Pakistan is facing a slow down in
sales because of the economic conditions, dealing with the low cost unbranded open tea and
increasing use of mushroom tea brands is also a major challenge even for a well established tea
brand like Lipton yellow label the aggressive marketing techniques employed by Tapal are also
proving to be a major source of concern the marginally low sales of Lipton yellow label tea in the
years 2000 and 2001 the proof of the importance of tackling with these challenges apart from this
bringing down the price of Lipton is also proving much harder then initially estimated by the
Lipton team, the high rate of import tariffs continues to be a major barrier in the growth of Lipton
yellow label tea.

RECOMMENDATIONS
 Lipton yellow label should reduce its prices in order to become a more affordable brand.

 Lipton yellow label should increase the use of tea vending machines to all the major cities in
Pakistan.

 Lipton should introduce its internationally recognized ice tea in Pakistan first on an experimental
basis and if this taste clicks with the consumers of Pakistan Lipton stand to be the only tea brand
providing the consumers with this product.

 Lipton should market its tea bags in small quantity boxes as it has done with it’s lose tea.

 Lipton ‘s out of home department is one of its major strengths it should be expanded

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