Tapal Tea's Strategic Marketing Plan

Research Report on Strategic Marketing & Planning
Tapal Tea Private Limited

Plot 40, Sector 15, Korangi Industrial Area, Karachi
Su mitted To!
Sir "#hla$ue Ahmed
Su mitted %&!
Imran Ali 8862 Muhammad Bilal 8698 Arsalan Yousuf 8677 Date: 17-0 -2010
T"STI'()IAL
INSTITUTE OF BUSINESS MANAGEMENT Page 1
!e "o# to#ards$ %he &reat Al- Mi'ht( A))A* for sho#in' us$ the stren'th and +oura'e for all the +hallen'es throu'h out our ,ourne( in e-.lorin' the #onders of this /isionar( and d(nami+ su",e+t of 01trate'i+ Mar2etin' 3lannin'45 Indeed$ #e are 'rateful to our mentor 1ir 62hla7ue Ahmed$ #hose dedi+ation$ 'uidan+e and enthusiasm for the su",e+t al#a(s .ersuaded a +hallen'e for us to "e+ome and .ro/e that$ ho# 'ood #e are "usiness mana'ers5 !e had at most o.timum$ .la+ed our sin+ere efforts and sheer hard #or2 to satisf( our mentor #ith this re.ort5 !e #ould al#a(s li2e to remem"er and honor #ith 'ratitude to#ard our famil( 8 friends$ in su..ortin' and moti/atin' us durin' da(s$ #e felted lo# and finall($ the %A3A) .eo.le s.e+iall($ Mr5 *aroon 9ashid #hose endless su..ort 'lim.sed a ra( of ho.e and su++ess to this .ro,e+t5 %han2 You
Imran Ali Muhammad Bilal Arsalan Yousuf
Ta le o* +ontents
6-e+uti/e 1ummar(555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 : 5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 : ;om.an(<s 3rofile5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555556 *istor( of %a.al5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555556 Business 1+o.e5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555557 INSTITUTE OF BUSINESS MANAGEMENT Page 2
Mar2et 1tru+ture of Industr(555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555510 Mar2et 1hare55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 11 Mar2et 1tru+ture of the ;om.an(555555555555555555555555555555555555555555555555555555555555555555555555555555555555512 Mar2et 1i=e - 3ast four (ears >t( ?%ons@555555555555555555555555555555555555555555555555555555555555555555555551A Mar2et 1i=e - 3ast four (ears Balue ?in C000@555555555555555555555555555555555555555555555555555555555555555551 Mar2et 1i=e - De-t four (ears Bolume ?%ons@555555555555555555555555555555555555555555555555555555555555555517 Assum.tions for &ro#th55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555517 Dust %ea 1e'ment5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555517 )eaf %ea 1e'ment5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555517 Mi-ture %ea 1e'ment555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555518 &reen tea 1e'ment55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555518 I+ed %ea 1e'ment5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555518 3rodu+t )ife ;(+le5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 19 ;om.etition &ro#th matri-55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555519 %hreat of De# 6ntrant55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555521 Bar'ainin' 3o#er of Bu(er5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555521 Bar'ainin' 3o#er of 1u..liers5555555555555555555555555555555555555555555555555555555555555555555555555555555555555521 9i/alr( "et#een ;om.etitors5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555521 %hreats from 1u"stitutes55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555521 6n/ironmental Ea+tors55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555522 %e+hnolo'i+al5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 22 3oliti+al5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 22 6+onomi+5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 22 1o+ial and ;ultural Eor+es55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555522 ;om.an( and ;om.etitor Anal(sis555555555555555555555555555555555555555555555555555555555555555555555555555555555552A Distri"ution 1tru+ture: 1hift from 2008 %o 201255555555555555555555555555555555555555555555555555555555555555552 Distri"ution 1hares And ;om.an(<s 3ositions ?2008@55555555555555555555555555555555555555555555555555555552: %o. 7 6-ternal %rends555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555526 In.ut:555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 27 1!F% Anal(sis55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 27 1tren'ths55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 27 !ea2nesses555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 28 F..ortunities55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 28 %hreats55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 28 ;ross Matri- Anal(sis5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555528 Balue ;hain Model555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A0 *uman 9esour+e Mana'ement5555555555555555555555555555555555555555555555555555555555555555555555555555555555555A0 %e+hnolo'( De/elo.ment5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555A0 3ro+urement555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A0 3rimar( A+ti/ities5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555A1 In"ound lo'isti+s555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A1 F.erations555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A1 Fut"ound )o'isti+s55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555A1 9elati/e Im.ortan+e of Ea+tors55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555A1 In.ut:555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A2 9atin' A'ainst ;ustomer Bu(in' ;riteria55555555555555555555555555555555555555555555555555555555555555555555555555A2 Im.a+t of Issues on 1trate'i+ 3rofile555555555555555555555555555555555555555555555555555555555555555555555555555555555A ;ustomers Bu(in' ;riteria: 3ri+e555G$ >ualit( Attri"utes555G555555555555555555555555555555555555555555555A: Better55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 A/aila"ilit(5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 INSTITUTE OF BUSINESS MANAGEMENT Page A
%aste555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 1ame55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 ;olor555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 >ualit(5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 !orse5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 ;ustomer ;om.lain 1er/i+e555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555A6 Aroma5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 10G55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 20G55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 A0G55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 In.ut:555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A6 Im.ro/e Aroma and +ustomer +om.lain ser/i+es55555555555555555555555555555555555555555555555555555555555555A6 %he Ei/e &eneri+ ;om.etiti/e 1trate'ies55555555555555555555555555555555555555555555555555555555555555555555555555A7 Bision 8 Mission5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A7 Business F",e+ti/es and %ar'ets55555555555555555555555555555555555555555555555555555555555555555555555555555555555555A8 In 1hort %erm5555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 A9 In )on' %erm55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 0 1e'mentation Baria"le of the ;onsumer Mar2et555555555555555555555555555555555555555555555555555555555555555 0 &eo'ra.hi+55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 0 ;limate55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1 Demo'ra.hi+s555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1 3s(+ho'ra.hi+555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1 Beha/ioral 55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1 1trate'i+ ;an/as - 3ast 8 Euture55555555555555555555555555555555555555555555555555555555555555555555555555555555555555 2 In.ut:555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 1ele+tion of 1u..lier on the "asis of .ri+e +om.etiti/eness +an redu+e the ma,or .art of the .rodu+tion ;ost55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 3ri+in' 1trate'(55555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 )e''in' Indi+ators and )eadin' Indi+ators555555555555555555555555555555555555555555555555555555555555555555555555 : A+tion 3lan555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555 6
INSTITUTE OF BUSINESS MANAGEMENT
Page
Executive Summary
!e the students of the ;olle'e of Business Mana'ement #ere re7uired to su"mit a re.ort on "Strategic Marketing & Planning. %here "( #e ha/e full filled our re7uirement and ha/e listed our findin's in the follo#in' .a'es5 !e #ere re7uired to +hoose a +om.an( and anal(=e all its a+ti/ities in detail so #e +hose %a.al5 %a.al had al#a(s ensured its landmar2 in 7ualit( standards and "e+ause of this fa+tor +ustomer /alue and standards had .ro/ed its ultimate 'oal of +ustomer satisfa+tion5 %oda( the mar2et share of %a.al ha/e rea+hed the to. e/en in this e+onomi+ +run+h$ "ut on to "e+omin' a leader the +om.an( should .ro/o2e to raise the "ar on a +ontinual "asis and to address 2e( su++ess fa+tors$ onl( throu'h miti'atin' the 2e( issues5 In order to a+hie/e the o",e+ti/e of this re.ort #e had to rel( on our o#n anal(ti+al s2ills as #ell the information #e re+ei/ed from the ma,or .la(ers in the Industr( i5e5 mainl( the three leadin' %ea manufa+turers in the Industr( as the li2es of %a.al$ Hnile/er$ ;lo/er 3a2istan and 6astern %ea5 !e e/en #ent further to +om.ile +onsumer /ie#s a"out different "rands and the distri"utors o.inions on the different "rands a/aila"le5 %o full fill the e-tensi/e re7uirements of this re.ort #e "ro2e ea+h and e/er( one of the +om.an(<s a+ti/ities in order to +ondu+t and .ro+ure a more in-de.th and more meanin'ful anal(sis5 Eor ea+h a+ti/it( anal(sis tools su+h as Internal Ea+tor 6/aluation Matri-$ 6-ternal Ea+tor 6/aluation Matri-$ In-De.th A+ti/it( ;ost Anal(sis and ;om.etiti/e 3rofile Matri- are ,ust some of the tools used in the follo#in' .a'es to "rin' a +onsistent and "etter anal(=ed ans#er5 !e ho.e the follo#in' .a'es #ill "e "etter a"le to ans#er and 'i/e thou'htful insi'ht into %a.al %ea$ its +om.etitors and the Industr( in #hi+h it o.erates es.e+iall( in the li'ht of 3a2istan<s e+onom(5
Page :
Com any!s Profile

%he ,ourne( of %a.alIs remar2a"le su++ess is the +om"ined efforts of three 'enerations5 Adam Ali %a.al #as the founder of the %a.al ;om.an(5 %he sa'a of %a.al started #ith his formulation of a uni7ue tea "lend$ #hi+h #as later named famil( mi-ture that led to the %a.al "rand "e+omin' a hot fa/orite$ and e/entuall( the lar'est sellin' "rand5 %a2in' a ste. for#ard from this hum"le foundation$ %a.al mo/ed u. the ladder of su++ess "( inno/atin' and introdu+in' different tea "rands to suit e/er( taste and .o+2et$ #hi+h #ere sold from its retail outlet in Jara+hi<s Kodia Ba=aar5 3eo.le from all .arts of the +it( flo+2ed to the outlet to .ur+hase %a.al tea$ and soon$ the 7ualit( of %a.al teas "e+ame le'endar(5 %he +om.an( +ontinued to thri/e and 'ro# under the mana'ement of the founder<s son$ Eai=ullah A5 %a.al$ #ho initiated tea distri"ution to retail outlets around the +it( for the +on/enien+e of the .eo.le5
History of Tapal
%he sa'a +ontinued$ and ne# hori=ons #ere e-.lored "( the founder<s 'randson$ Afta" %a.al #ho 'a/e a #hole ne# meanin' to the +on+e.t of tea and de/elo.ed a #ide ran'e of tea "lends +aterin' s.e+ifi+all( to the tastes of .eo.le throu'hout 3a2istan5 *e introdu+ed .rofessional mana'ement and uni7ue .rodu+tion ideas to the "usiness5 Bein' one of the fe# .rofessional tea tasters in the +ountr($ and a tea +onnoisseur himself$ his .ro'ressi/e outloo2 has 'i/en further stren'th to the foundation of 7ualit( laid "( his famil($ and has "ou'ht the %a.al +om.an( to ne#er and hi'her le/els of su++ess5 6/ol/in' and inno/atin' its #a( throu'h its near-60 (ear histor($ %a.al is .resentl( the lar'est$ 100G 3a2istani o#ned tea +om.an( in the +ountr(5 Its has set ne# standards for modern tea "lendin' and .a+2a'in' fa+tories$ #arehouses e7ui..ed #ith state-of-the-art e7ui.ment and a team of hi'hl( d(nami+ .rofessionals headed "( Afta" %a.al himself5
Page 6
Business Sco e
Pakistan Tea Industry 2009
Pakistan Tea Market Estimated 2009
Branded Tea Segment 53%
Loose Tea Segment 47%
Urban 33% Rural 67%
In 3a2istan$ %ea is undou"tedl( the national drin2 and it has more +onsum.tion than an( other t(.e of drin2 a/aila"le in the mar2et toda(5 It is estimated that 3a2istanis +onsume o/er 160 million 2' of tea #orth o/er 5: "illion ru.ees e/er( (ear5 Des.ite the in+reasin' em.hasis on its ha=ardous effe+ts on health and the +ontinuousl( risin' .ri+es$ due to the lo# litera+( rate and una/aila"ilit( of a "etter su"stitute$ the demand and the +onsum.tion has in+reased o/er the (ears and is 'ro#in' at an annual rate o/er A5:G5 As a +onse7uen+e$ %a.al desires a hi'h le/el of +ustomer satisfa+tion and unflin+hin' "rand lo(alt( throu'h +ommitment to 7ualit( and +onstant inno/ation5 !hat deser/es to "e mentioned is %a.al<s .rodu+ts are /arious #ith .remium 7ualit( and ha/e .assed the I1F-9001: 2000 7ualit( s(stem +ertifi+ation5 A uni7ue +om"ination of hi'h- 'ro#n Jen(a tea lea/es and dust$ that 'i/es a refreshin' aroma of leaf and stron' taste of dust all to'ether in one +u.5 %a.al is a famil( name and +alls attention to tea as an inte'ral .art of our li/es #hether it is da( or ni'ht or an( time as a sour+e of refreshments and re/itali=e5 %a.al has a di/ersified +ustomer "ase ran'in' from ur"an to rural areas in+ludin' /arious institutions5 3eo.le 'o #ith %a.al to 'et the *en+eL %a.al<s tar'et mar2et mainl( +onsists of (oun' adults and adults
Page 7
"elon'in' to hi'h$ middle and lo#er in+ome 'rou.s #ho are .rimaril( li/in' indi/idual and in famil( 'atherin'5
Business 1+o.e des+ri"es 0%he Business #e are M #ant to "e in4 throu'h the e(es of the +ustomers5 It defines the areas of o.eration for the or'ani=ation5 It en+om.asses the follo#in' 7uestions:
Speci*ic Region
9e'ions N #hereO
%a.al %ea$ the +ountr(<s lar'est Dational %ea ;om.an($ has manufa+turin' +a.a"ilit( in the +ountr( at its three .lants lo+ated in #hi+h t#o are in Jara+hi and one in 9ai#ind5 %he mother fa+tor( in Jara+hi onl( .rodu+es 6:G of the total %ea +ate'ories li2e Danedar$ Me="an$ Eamil( Mi-ture$ 1hades of &reen$ ;hena2$ %e=dum and I+e %ea to fulfill its ma,or share +ontri"utin' south mar2et5 %he other manufa+turin' .lant in 9ai#ind mainl( .rodu+es t#o +ate'ories i5e5 %e=dum and Eamil( Mi-ture5 %he head offi+e for the o.erations is "ased in the +ities of Jara+hi and )ahore #ith #arehouses maintainin' the or'ani=ation<s .resen+e in the +ities of *(dera"ad$ 1u22ur$ Multan and Islama"ad5 %o meet +ustomer re7uirements e/er(#here$ %a.al %ea further e-.ands its net#or2 throu'h Htilit( 1tores$ Arm( 1tores and Modern %rade Det#or2 +ountr( #ide5 %he onl( +om.an( o#ned sho. lo+ated in Kodia Ba=aar$ Jara+hi to #hi+h it started his "usiness in 19 7 as "oth #hole seller and retailer5 It<s %ea Blendin' and mi-in' +enter is lo+ated in Jara+hi5 %a.al %ea has di/ided the +ountr( into t#o main and 1i- su" re'ions asL
South
Karachi Hyderabad Sukkur
)orth
Lahore Multan Islama"ad %hese 9e'ions further +lassified into PonesM%erritories and %o#ns to e-tensi/el( +o/er the mar2et5 %a.al %ea is +urrentl( e-.ortin' to Asian +ounties of Af'hanistan$ Middle 6ast$ H1A$ Australia and$ other 6uro.ean +ontinents #hi+h +onstitute around 1G 2G of their total sales5
Page 8
,unctions - applications
Eun+tions M a..li+ations N #hat needsO
%a.al %ea is +aterin' to the "asi+ need of 0%ea4 a++om.anied #ith 0>ualit( and Afforda"ilit(45 +ustomer see#ing needs .ould e! Primary Attri"utes# o 1tron' %aste o Aroma o ;olor o 3remium >ualit( Secondary Attri"utes# o o 3ri+e A/aila"ilit(
+ustomers
!hose needsO
09ural and Hr"an4 %he( are +aterin' to the needs of .eo.le li/in' in 9ural Areas of 3a2istan$ as the main mar2et for %a.al %ea ha..ens to "e the .eo.le from rural areas as its 68G of the total .o.ulation of 3a2istan5 Besides$ it is also +aterin' to the need of .eo.le from ur"an areas as the( also +onstitute a si'nifi+ant .er+enta'e of their total mar2et share5
Added value
$or %istri"utors#
o o o o o o o o ;om.etiti/e Mar'ins ;redit Ea+ilit( *i'h mar'ins >uantit( Dis+ounts %rade .romotions and in+enti/es 1ho. Brandin' Q mer+handisin' 9ent %imel( Fder Deli/er( 1helf 1.a+e 9ent
$or &raders & 'holesalers#
+onsiderations
Di/ersif( the "usiness in the +om.lementar( .rodu+ts5
%oundaries and ,uture Scope

- Mat+hin' .rodu+tion #ith in+reasin' demands in the future5 - Brin'in' ne# .rodu+ts ?ran'es@ for ne# se'ments and unta..ed mar2ets - %o "roaden e-.orts fun+tion in Middle 6ast and other international mar2etsL and .ro/e e-isten+e in international mar2ets5 - %o maintain the leadin' .osition in the lo+al mar2et5 - Moderni=in' o.erations and o.timal +a.a+it( utili=ation5 - 9estru+turin' strate'ies for the "ottom of .(ramid +ustomer "ase5 - ;ustomer oriented .ri+in' strate'(
Page 9
- %a+ti+al media strate'( for ea+h "rand - 1tren'then the "rands and +ommuni+ation to a/oid internal +anni"ali=ation5
Input!
%a.al al#a(s see2s out different arenas to "eat the +om.etition #hile stru''lin' to maintain the e-istin' share$ .lan trade dri/en .romotions to stren'then the lon' term relationshi.s5 %o "e an a''ressi/e .la(er in the mar2et it is tr(in' to e-.lorin' international mar2ets #here it +an not onl( .enetrate$ di/ersif( and ma2e lon'-term in/estment "ut also har/est its +urrent "usiness5
'ar#et Structure o* Industr&

+ategor& 0ust Lea* 'i1ture 2reen Tea Tapal
Me="an Dust ;hena2 Dust Danedar %e=dum DD-%ea"a's Eamil( Mi-ture Kasmine %Bs 6lai+hi %Bs )emon %Bs &ul"ahar %a.al I+e tea ?;an Q 3o#der@
/nilever
3earl Dust 9ed 9ose )i.ton Yello# )a"el )Y) %ea"a's 1u.reme -
+lover Pa#istan
9o(al Dust %etle( !orld %etle( %ea"a's -
"astern Tea
1urhan Dust Da#n Dust Bital ;hai
Loose -'ushroom Tea

A/aila"le
A/aila"le
Bital ;hai
A/aila"le
;lear &reen %Bs )i.ton I+ed %ea ?3o#der Q ;an@
A/aila"le
Iced Tea
Inputs!
%a.al is .resent in all the "rand se'ments of %ea industr( "ut there is a 'a. in the mi-ture and I+e %ea se'ments so %a.al must de/elo. strate'i+ .lans to enhan+e these t#o +ate'ories5
Page 10
'ar#et Share
Pa#istan %randed Tea 'ar#et 4005
Eastern Tea 9%
!o"er Pakistan 4%
#t$ers 4%
&ni!i"er 40%
Ta%a! 43%
3uantitative *indings
F/er all the "randed %ea mar2et has "een 'reatl( dominated "( %a.al$ stealin' mar2ets share$ follo#ed "( Hnile/er 0G AG of the
%he other %ea manufa+turers onl( hold G of the mar2ets share #hi+h refle+t that ho# diffi+ult is it to .enetrate the mar2et5 It also hi'hli'hts the fa+t that %a.al and Hnile/er mar2et shares re.resent the ma,or +hun2 of the +onsumer "ase5
Input!
INSTITUTE OF BUSINESS MANAGEMENT Page 11
%a.al %ea must sustain the mar2et share "ut e-.lore ne# mar2ets to a/oid internal +anni"ali=in' amon'st its e-istin' "rand5
'ar#et Structure o* the +ompan&

Masses Bul2 "u(er 3ri+e sensiti/e Masses Masses 1ho..ers 3ri+e sensiti/e ;on/enient "u( ;ontra+ted su..l( B2B Dis+ounted 3ri+e 6+onom( 3a+2s Mi-ture )eaf Dust BendorM+ontra+tor Einan+e De.t5 Administration De.t5 Eamil( Monthl( Bud'et ;ontra+tual 9estaurants$ *otelsM;afes$ Fffi+es su..lies 3ortion of %radersM#holesalers Eamil( 1ho..ers Arm for+es and their families Eorei'ner ;onsumers 1atisf( %ea drin2in' needs B2B B2; )eaf
"nd /sers
Product Application
Dis+ounted 3ri+e Mi-ture )eaf Dust I+ed %ea &o/t5 Fffi+ials Einan+e De.t5
B2B B2; 3rofit mar'in on "ul2 "u(in' Mi-ture )eaf Dust F#ner 3ro.rietor ;onsumer %raders 9etailers !hole sellers 9estaurants *otelsM;afes ;or.orate Fffi+es Ban2s 6du+ational Institutions
Product
In*luencer
&o/t5 Fffi+ials Einan+e De.t5
Purchaser
3ro+urement De.t5
3ro+urement De.t5 Eorei'n Distri"utions
H1;M;1D
Distri"utors
R&eneral %radeM!holesale Fut Ff *omeS
Modern %rades
RMAJ9FMM6%9FS
Armed for+es 8 6-.ort ;hannel
%he Manufa+turer S&nopsis!
Page 12
In the %ea Industr($ the 2e( .la(er in the distri"ution stru+ture is 0the Distri"utors45 %hese distri"utors are "asi+all( hired "( +om.anies5 %hese distri"utors are further +o/er #hole sellers and retailers$ as the( +ustodian of their res.e+ti/e areas defined "( the +om.an(5 International Modern %rades are the ne-t sales dri/ers in the EM;& industr( "ut ma( dama'e the distri"utor or attra+t the +om.an( dire+t distri"utions H1;M;1Ds are also .la(in' an im.ortant role in the mar2et "ut its de.enden+( on &o/t5 'rant #ould ha/e a su"stantial im.a+t on its o.erations5 Armed for+es is a ni+he se'ment "ut +ontri"utin' a .ortion of the +a2e5 9ate of 6-+han'e due to 6-.ort mar2et su..orts "usiness5
'ar#et Si6e 7 Past *our &ears 8 3t& 9Tons:
;All in Ton
Page 1A
'ar#et Si6e 7 Past *our &ears 8 <alue 9in =000:
Page 1
2005'0(
*ura! Loose Branded &r-an Loose Branded .rand Tota! Loose Total Branded Total +00,395 57,564 42,654 47,245 12,748 34,674 +47,(40 70,3+2 77,32)
200('07
+03,77+ 59,729 3.8% 44,101 3.4% 4),)33 12,956 1.6% 35,854 3.4% +52,(04 72,4)5 )0,++9
2007'0)
+07,397 61,155 2.4% 46,182 4.7% 50,540 13,186 1.8% 37,301 4.0% +57,93( 74,300 )3,(3(
200)'09
+++,+75 62,462 2.1% 48,744 5.5% 52,3+7 13,456 2.0% 38,825 4.1% +(3,492 7(,332 )7,+(0
;All in Ton
2005'0(
/ust Su- Tota! Rural Urban Su- Tota! Rural Urban Su- Tota! Rural Urban .rand Tota! Rural Urban 50,3)+ 34,007 16,374 )0,47( 54,321 26,155 +(,532 11,159 5,373 +47,(40 100,395 47,245
200('07
52,425 35,387 17,038 )3,05+ 56,059 26,991 +(,7+( 11,283 5,433 +52,(04 103,771 48,833
2007'0)
54,((7 36,900 17,767 )5,79( 57,912 27,884 +(,)5+ 11,374 5,477 +57,93( 107,397 50,540
200)'09
57,+23 38,558 18,565 )),54+ 59,765 28,776 +7,02+ 11,489 5,532 +(3,492 111,175 52,317
Lea0
Mi1ture
Tota! B!a2k Tea
;All in Ton
Tota! Tea Market
120,000 100,000 80,000 60,000 40,000 20,000 0 Branded Tea Loos e Tea
Urban Rural Urban Rural INSTITUTE OF BUSINESS MANAGEMENT 2005-06 2006-07
Urban
Rural
Urban
Rural
Page 1:
2007-08
2008-09
S&nopsis!
%he o/erall %ea industr( has "een 'ro#in' 'raduall( "oth in terms of sales and re/enue5 Branded %ea se'ment is sho#in' health( 'ro#th es.e+iall( in rural mar2ets #here as mar2et is 'raduall( saturatin' in ur"an area5 In the %ea Industr($ Dust and )eaf has a ma,or +hun2 of the %ea industr( in terms of Bla+2 %ea5 *o#e/er the dust +ate'or( is no# "e+ome 2nd most demandin' "rand and has "een +ontinuousl( in+reasin' amon' the +ore tea users es.e+iall( in rural areas "e+ause of t#o ma,or +on+erns as: 15 3er +a.ita in+ome has "een in+reased #hi+h +aused in in+rease of %ea +onsum.tion #ith the 'ro#th in the .o.ulation rate5 25 .eo.le are ser/in' %ea as an e+onomi+ .oint of /ie# and #ith dra# from the ser/in' of +old soft drin2s to their 'uests as an e-.ensi/e drin2 A5 Bottom of 3(ramid mar2et In Mi-ture +ate'or( #hi+h #as the le'endr( "rand of the time and initiall( "lended "( %a.al #hen first started its "usiness in 3a2istan is no# either "ein' matured or +anni"ali=ed "( other "rand5 &reen %ea has de/elo.in' "it-"(-"it as the health a#areness le/el 'raduall( "uild in the mind of the +onsumers5 %his se'ment is /er( ni+he as the +onsum.tion .attern has restri+ted +onsumer #ith the diet .lannin'$ health issues and e-.osure to .arti+ular so+ial +lass5 I+ed %ea .ortfolio has (et to "e #aited for the a++e.tan+e from +onsumers as the "rand is .remature for the industr( and need fe# more (ears to "e esta"lished5
Input!
F/erall the industr( has natural 'ro#th #ith res.e+t to the 3o.ulation 'ro#th rate5 %herefore$ 'ood .ri+in' strate'( related to "ottom of .(ramid mar2et i5e5 9ural Mar2et +ould +a.ture more returns for the +om.an( as #ell as mar2et share5 *o#e/er &reen %ea and I+e %ea needs to "e mil2in' to sustain their 'ro#th5
Page 16
'ar#et Si6e 7 )e1t *our &ears 8 <olume 9Tons:
Assumptions for Growth 0ust Tea Segment

9ural .o.ulation is +ontinues 'ro#in' in 3a2istan and hen+e the mar2et si=e is in+reasin' .ro.ortionall( as the total area e-.endin' and re'ular %ea +onsum.tion of the .eo.le has also in+reased5 1in+e the Dust +ate'or( is the fla'shi. "rand of this mar2et hen+e the demand has "een in+reasin' at the a/era'e rate of A5AG ea+h (ear5
Lea* Tea Segment

%here is a .il'rim shift in the e+onom( of 3a2istan #hi+h has stret+hed the middle +lass u.#ard as a +onse7uen+e more and more +onsumer s#it+h to this .remium "rand5 In 3a2istan$ the 'ro#th rate of )eaf is around 25:G this (ear #hi+h is the hi'hest 'ro#th in last : (ears5 %ea"a's are the ma,or re/enue
Page 17
'enerators in the )eaf +ate'or( in the lo+al ur"an and international mar2ets .ro/idin' hi'h +ontri"ution mar'ins to "usiness5
'i1ture Tea Segment

%his +ate'or( is rea+hin' at its maturit( sta'e "ut in last de+ades it #as a .rimar( "rand of the mar2et5 Also one of the ma,or reasons of do#n this "rand is lo# .ri+e 'a.s "et#een the +ate'or( "rands #hi+h stimulate the +ustomers to s#it+h on other "rands
2reen tea Segment

3eo.le ha/e "e+ome health +ons+ious toda( and #ould #ant to .refer 'reen tea o/er the traditional "la+2 tea "ut this +ate'or( has a ni+he se'ment so #ould ta2e time to "uild in future5 As the litera+( rate is +ontinue to in+reasin' in 3a2istan therefore more 'ro#th is e-.e+ted in this +ate'or(5
Iced Tea Segment

Due to +limati+ +onditions$ #here the #eather of 3a2istan is mostl( hotL +onsumers #ould .refer soft drin2s o/er tea "ut due to lo# a#areness le/el this se'ment #ould ta2e +ou.le of (ears to "uild the mar2et as the (outh has "een mo/in' to#ards the health( lifest(le and trend lo/ers in ur"an areas5
Input!
%a.al must sustain its +urrent .osition in the industr( "ut stri/e to +a.ture the share from the +om.etitors and )oose %ea mar2et "( offerin' 'ood /alue for mone( to +onsumer at e/er( .ri+e .oint5 !omen are the 2e( .art of the o/erall %ea .ur+hasin' and ma2in' so tar'etin' this 'ender and re#ardin' #ould "e effe+ti/e for %a.al to 'ra" the mar2et share5
Page 18
Product Li*e +&cle

Product Segment
0/ST
Me="an Dust 3earl DustM9edrose 9o(al Dust
Introduction
2ro.th
'aturit&
0ecline
;;;
QQQ QQ Q
L"A,
Danedar Q%B %e=dum 1u.reme )Y) Q %B Bital ;hai %etle( !orld
TTT
QQQ QQ QQ QQQ Q Q
'I>T/R"
Eamil( Mi-ture Bital ;hai %etle( !orld Q %B
TTT
QQQ QQ Q
2R"") T"A
1hades of &reen )i.ton &reen %ea
TTT
QQ Q
I+"0 T"A
%a.al I+e %ea 3o#der )i.ton I+ed %ea Destea
TTT
Q Q Q
+ompetition 2ro.th matri1

+('P"TITI() S"2'")T Page 19 INSTITUTE OF BUSINESS MANAGEMENT
0/ST
Me="an Dust ;hena2 Dust 3earl Dust 9ed 9ose 9o(al Dust 1urhan Dust Da#n Dust
L"A,
Danedar DD %Bs %e=dum )Y) .a+2s )Y) %Bs 1u.reme %etle( !orld %etle( %Bs Bital ;hai
'I>T/R"
Eamil( Mi-ture
2R"") T"A
Kasmine %B )emon %B 6lai+hi %B &ul"ahar ;lear &reen
?Mint Q )emon@
I+"0 T"A
%a.al I+e %ea
(<"RALL
9in Ton: AA$000
%a.al %ea
Hnile/er ;lo/er 3a2istan 6astern %ea
%etle( !orld Bital ;hai
)i.ton I+ed %ea -
A2$000 A$000 $000
?istorical 2ro.th ProBected 2ro.th +ompan& Pro*ita ilit&
4@ AC4@ D@
A@ 4CD@ FC5@
1@ 1@ A@
4@ 4CE@ 10@
5@ 44@ 1A@
A@ A@ DCD@
S&nopsis!
After anal(=in' the mar2et for its +a.a+it( and its se'mentation$ #e ha/e +ome u. #ith the follo#in' findin's: %he %ea Industr( is dire+tl( influen+ed "( the +han'es in the e+onomi+ fa+tors and sta"ilit( 6a+h se'ment has its o#n stimuli or fun+tionalit( #hi+h affe+t the .rodu+t demand es.e+iall( Dust se'ment is .enetratin' in the ur"an areas of u..er 3un,a" and has a 'reater influen+e on the other /ariants5 %he +han'e in .ri+es and mar'ins has a dire+t im.a+t on the sales of the se'ments %ea +onsumers in mar2et 'reatl( rel( on stron' "rand name and re.utation +reated o/er the (ears5 I+ed %ea se'ment is still .remature +on+e.t in 3a2istan "ut the trend #ould "e more fa/ora"le in future for this +ate'or(5 6a+h +om.an( has a set tar'et mar2et in #hi+h it +a.itali=es "ut no# the( are doin' 'uerilla #arfare strate'ies to +a.ture more share in the mar2et5 Mi-ture +ate'or( must +larif( its .ositionin' to sustain in the mar2et5
Input!
&ro#th in Dust$ )eaf and &reen %ea 1e'ments Mi-ture is fa+in' +hallen'es as of "ein' a..roa+hin' maturit( so .reem.ti/e a+tion #ould "e ta2en to a/oid lose of .ositionin' and +anni"ali=in'5 &reen %ea has a hu'e .otential of lon'e/it( "ut more /ariants to "e laun+hed in order to sustain 'ro#th More and +ontinuous in/estment #ould re7uired to de/elo. the I+e %ea mar2et and o..ortunit( to laun+h ne# /ariants )o# +ost leadershi. #ould im.ro/e the .ri+in' strate'(
Page 20
Porters ,ive ,orces 'odel

Threat of New Entrant
6/er risin' num"er of Mushroom %ea .rodu+ts is ne# entrant in the 3a2istani %ea industr( and are threat for the other three 2e( .la(ers in the mar2et namel(: %a.al %ea 3ri/ate )imited Hnile/er )e/er 3a2istan )imited 6astern %ea 3ri/ate )imited %etle( ;lo/er 3a2istan )imited
3a2istan is trul( a rare land$ home to different +i/ili=ations and di/erse +ultures5 %he industr( is dominated mainl( "( four +om.anies$ %a.al$ Hnile/er$ 6astern %ea and ;lo/er 3a2istan in this /er( order5 As #e ha/e alread( dis+ussed$ Hnile/er +a.itali=es on its stron' hold as the Multinational &iant in the EM;& mar2et due to its multi.le .rodu+t lines in the se'ments and their lo# .ri+es5 %a.al %ea on the other hand does dire+tl( +om.ete #ith Hnile/er at the %ea "ase sin+e it has onl( %ea manufa+turer5 %he main +om.etitors of these +om.anies are )oose %ea ?smu''led@ mar2ets i5e5 Mushroom Brands$ #hi+h has "een su++essfull( o.eratin' in the rural mar2ets es.e+iall( on .ri+e .a+2s5 !e ha/e dis+o/ered that the +onsumer is not read( and #illin' to .a( .ri+e for a +u. of %ea that is onl( afforda"le5 %a.al %ea needs to +ome u. #ith a differentiation strate'( to .ut u. a fi'ht #ith )oose %ea #hi+h is .ro,e+tin' a lo# .ri+ed5 %a.al %ea needs to "rin' do#n its .ri+e in order to ma2e the +onsumers shift from )oose %ea or other "randed %ea #ithout +om.romisin' 7ualit(5
Bargaining Power of Buyer

In +ase of %a.al the "ar'ainin' .o#er of Bu(er is lo# "e+ause the there are so man( distri"utors in 3a2istan and %a.al has a #ide ran'e of o.tions to +hoose5
Bargaining Power of Suppliers

In +ase of %a.al$ 1u..lier<s "ar'ainin' .o#er is hi'h "e+ause there are man( distri"utors a/aila"le "ut the mar2et has limited num"er of su..liers5
Rivalry etween !ompetitors

%here is an intense ri/alr( amon' the +om.etitors$ as the mar2et has a lot .otential$ #hi+h +an "e o"ser/ed "( the entr( of t#o ne# +om.etitors in the tea mar2et in the last fi/e (ears i5e5 ;lo/er 3a2istan 8 6astern5 *o#e/er$ the main +om.etition and ri/alr( is amon' Hnile/er 8 %a.al5 Both are al#a(s tr(in' to +a.ture ea+h other<s mar2et share and in the re+ent retaliation strate'ies from %a.al ha/e "een fruitful5
Threats from Su stitutes

;offee is a su"stitute for tea as "oth fulfillin' the +ore need of refreshment5 In the +ate'or( of +offee Des+afe has a lion<s share and it is an indire+t threat of su"stitute for %a.al "e+ause in the #inter season .eo.le usuall( .refer +offee o/er tea5
Page 21
Environmental "a#tors
Technological
%e+hnolo'( is also harnessed at %a.al to "enefit the +onsumer5 %a.al #as the .ioneer in soft .a+2a'in' and round tea "a'5 %he( im.orted this inno/ati/e te+hnolo'( and esta"lished a full( automati+ fa+ilit( under the 'uidan+e of their founder$ Adam %a.al$ #here soft .a+2s #ere .rodu+ed for the first time in 3a2istan5 Ee# (ears "a+2 %a.al has im.ro/ed the te+hnolo'( to hard .a+2a'in'5 At this fa+ilit( tea is "lended and .a+2ed in h('ieni+ +onditions$ untou+hed "( human hands #hilst the hard .a+2in' te+hnolo'( 2ee.s tea fresh and .a+2a'in' +osts e+onomi+al5 %he su++ess of these hard .a+2s has "een su+h that other tea +om.anies ha/e also follo#ed %a.alIs lead and laun+hed some of their "rands in hard .a+2a'in'5
Political
%he .oliti+al 8 le'al for+es that affe+t %a.al are the ta-es 8 e-+ise duties le/ied on %a.al<s .rodu+ts and its im.orts5 Also it has to fulfill all the rules and re'ulations as .er la#5 Elu+tuation in the im.ort duties "( federal 'o/ernment is an issue of 'reat +on+ern for all tea-mar2etin' +om.anies5 If #e loo2 "a+2 in .ast$ tea im.orts durin' 200 -0: in+reased "( o/er 10 .er+ent +om.ared to 200A-0 mainl( due to a +ut in the im.ort dut($ the federal 'o/ernment in the "ud'et 200 -0: +ut "( :0 .er+ent the im.ort dut( on tea$ "rin'in' it do#n from 20 .er+ent to 10 .er+ent to #hat it said .rote+t the lo+al industr( and +ur" the mena+e of smu''lin'5 %his de+line resulted in more .rodu+tion and %a.al dis+o/ered a ne# mar2et for herself and started e-.ortin' its "lend tea5 9i'ht no# %a.al is e-.ortin' tea to some of the +ountries a"road li2e ;anada$ 1audi Ara"ia$ and Du"ai5 Ille'al im.orts are su"stantial$ nearl( 1MA of domesti+ +onsum.tion and an 81 million H1D "usiness5 %ea smu''lin' is a matter of 'reat +on+ern5 %he 'o/ernment loses hu'e mone( in im.ort duties and domesti+ im.orters fa+e tou'h +om.etition from those #ho are instrumental in "rin'in' "a+2 tea meant for Af'hanistan5 Most is Indian lo#-'rade "ul2 tea trans.orted throu'h Af'hanistan and sold "ul2 in mar2ets in the to#ns near the !estern "order5 %he trade is 'ro#in'$ 8$000$000 2's$ #ere "rou'ht ille'all( into the +ountr( durin' EY06 and 0$000$000 2's$ in EY0:$ a 10 .er+ent in+rease5 )e'al im.orts de+lined 125: .er+ent in the same .eriod5
"conomic
Another ma,or fa+tor that affe+ts %a.al<s mar2etin' strate'( is the +onditions .re/alent in the e+onom(5 %he main e+onomi+ for+es affe+tin' the mar2et are:
Stage of Business (ife Cycle

!hether the e+onom( is in a re+ession or in a "oom$ it affe+ts the a+ti/ities of %a.al in a #a( that it influen+es the demand of their .rodu+t5 In a "oom the demand of the .rodu+t in+reases5 1imilarl($ in a re+ession the demand of a .rodu+t falls sin+e the "u(ers +onsume less of the .rodu+t due to fallin' in+omes5 %hou'h flu+tuations in the demand do o++ur$ these are not ma,or flu+tuations as demand for tea is inelasti+ in relation to .ri+e5
Inflation
Inflation .la(s a ma,or role on the mar2etin' strate'ies used "( a +om.an( due to t#o main reasons5 Eirstl($ inflation affe+ts the +onsumers< .s(+holo'( and the( "e+ome more sele+ti/e in their .ur+hases5 1e+ondl($ inflation results in risin' .ri+es for the ra# materials .ur+hased "( %a.al$ #hi+h in turn in+reases the +ost of .rodu+tion5 %his fa+tor .la(s a ma,or role es.e+iall( if the in+rease in +ost +annot "e transferred to the +onsumers in the form of raised .ri+es5
Social and Cultural $orces

1o+iet( and +ulture .la(s an im.ortant role in determinin' the mar2etin' .lan of %a.al5 ;onsumer ado.tion of a .rodu+t de.ends 'reatl( on the tar'et mar2ets "eliefs$ tastes and /alues of the .eo.le5 Eor
Page 22
instan+e$ Me="an tea #as de/elo.ed as a stron'er tea 2ee.in' in mind the taste of the +onsumers of interior 1ind
+ompan& and +ompetitor Anal&sis

Ma2in' a modest "e'innin' o/er half a +entur( "a+2$ toda( %a.al has "e+ome the lar'est$ 100G 3a2istani o#ned %ea ;om.an( in the +ountr(5 It has modern tea "lendin' and .a+2a'in' fa+tories$ #arehouses e7ui..ed #ith state-of-the-art e7ui.ment and a team of hi'hl( d(nami+ .rofessionals headed "( Afta" %a.al himself5 *e #as the first to introdu+e soft .a+2s in the +ountr(5 *e de/elo.ed an entirel( ne# "rand and +ate'or(- %a.al<s Eamil( Mi-ture ?the mi-ture of tea 8 dust@5 Mr5 Afta" %a.al #as the first to in/ent the hi'hl( su++essful "rand Danedar )eaf Blend5 In De+em"er 1997$ %a.al %ea "e+ame the first 3a2istani %ea ;om.an( to earn the I1F-9001 +ertifi+ation: a s(m"ol of the hi'hest international 7ualit( standards5 A'ain in De+em"er 2000$ %a.al a+7uired the I1F-9001: 2000 +ertifi+ation$ ma2in' it one of the first fe# +om.anies in the #orld to a+hie/e this milestone5 In addition to the standard re7uirements$ the I1F-9001: 2000 +ertifi+ation s(stem in+ludes re7uirements for en/ironment im.ro/ement$ +on+e.ts of %>M ?+ontinuous im.ro/ement@ #ith ma,or em.hasis on +onsumer re7uirements and satisfa+tion5 %a.al<s su++ess has left man( astounded5 Do ma'i+ formula ho#e/er$ lies "ehind its 'ro#th other than hard #or2$ dedi+ation and of +ourse uni7ue "lends and "etter 7ualit( C ;om.etition in an industr( is of four 2inds 3rodu+t form +om.etition 3rodu+t +ate'or( +om.etition &eneri+ +om.etition Bud'et +om.etition In the +ase of %a.al #e #ould "e +onsiderin' the follo#in' +om.etition that is:
Product ,orm +ompetition

In +ase of %a.al .rodu+t form +om.etitions are: Bro2e"ond 1u.reme %etle( tea )i.ton tea Bital ;hai 1urhan Dust Mushroom %ea
Product +ategor& +ompetition

In +ase of %a.al .rodu+t +ate'or( +om.etition #ould "e: Danedar Jen(a B3 Mi- 3atti 1u.er 3EI Bra=il &reen %ea Ban'ladesh &reen %ea )emon &rass B3I ?Indonesia@ Jen(a Mi- %ea Jen(a Dust E-1 Jen(a &reen %ea ?Indonesia@
Page 2A
2eneric +ompetition
In +ase of %a.al the &eneri+ +om.etition +om.rises of: Destle Instant ;offee Des+afe ;offee Mineral !ater ;ola ;ad"ur( ;offee )i.ton I+e %ea Kui+es and soft drin2s
%udget +ompetition
In+ase of %a.al the Bud'et ;om.etition is: 9estaurants *otels Fffi+es 6du+ational institutions International Modern %rades ;afes Airlines Arm for+es H1;M;1Ds
%istri"ution Structure# Shift from )**+ &o )*,)

G DI1%9IBH%F9
Tea 'ar#et
400E
6:
4014
:0
Page 2
MFD69D %9AD61 H1;M;1D FF*
7 10 18 100 G
20 7 2A 100G
S&nopsis!
Distri"utors #ill di/ert themsel/es to#ards the lar'e retail stores as the mar'ins are +ontinuousl( +uttin' off so the %a.al %ea outlets +o/era'e #ould "e tou'her than "efore5 Introdu+tion of the Modern %rades in 3a2istan #ould influen+e the distri"ution and other lo+al 'o/ernment su"sidiar( +hains as of more +on/enien+e fa+tors and /olume share "( offerin' mem"ershi.s and frei'ht +utoffs5 %a.al has "een im.ro/in' the FF* stru+ture to +a.ture the o..ortunit( in the future5 Htilit( 1tores has de.enden+( u.on the &o/ernment su"sid( if the .oli+( +han'es the( +ould "e ha/in' 'reat im.a+t on the mar2et5
Input!
%a.al should redu+e the +ost of o.eration and lo'isti+s to not onl( retain its +urrent distri"utions net#or2 "ut also minimi=e the mar'in 'a.s amon'st the sales sour+es5
%istri"ution Shares And Com any!s Positions -)**+.

ALL PAKISTA) 0ISTRI%/TI() 60 +('PA)GHS T/R)(<"R S?AR" 70 I1 +('P"TIT(RHS T/R)(<"R S?AR" 60 (/TL"T +(<"RA2" 6:
@ DI1%9IBH%F9 ?&%M!1@
Page 2:
MFD69D %9AD61 H1;M;1D FF* o
7 18 :
10 1: :
1: 1: 10
90 7: 2:
%he onl( +han'e in the last (ears is the introdu+tion of IM% ?International Modern %rade@ #ith their re'ional .la+ement and .resen+e at 2e( transa+tion +enters5 o %he distri"ution stru+ture of %a.al %ea and Hnile/er is +om.rised mainl( of 0distri"utors45 %he total num"er %a.al<s e-+lusi/e distri"utors are a..ro- A: distri"utors +o/erin' 11 $000 outlets a+ross 3a2istan5 *o#e/er$ %ea is also "ein' +hanneled throu'h /arious other +hannels in order to rea+h to end +onsumers5 o Distri"utors are the institution throu'h #hi+h a/aila"ilit( of .rodu+ts is .ossi"le a+ross the retail trade5 %a.al<s e-+lusi/e distri"utors ha/e a /er( 'ood relationshi. #ith them5 %he im.ortant thin' is that the( must inte'rate into total mar2etin' mi- "e+ause of time and mone( re7uired to setu. an effi+ient +hannel5 o !hole sellers are /er( d(nami+ in their demand as the( tr( to find the "etter o.tion and dire+t rea+h the Modern %rade +hannels5 o %he +om.an(<s turno/er share throu'h$ distri"utor 8 dire+t is 70G$ 8 A0G res.e+ti/el(5 o %he outlet +o/era'e is almost 8:-9:G in 1outh "ut 6:G in Dorth5 !here$ o o o o o 2TN &eneral %rade ?'eneral stores$ Jir(ana stores$ Medi+al and &eneral stores@ I'TN International Modern %rade ?de.artmental storesM*(.er Mar2et su+h as Ma2ro@ Jhole seller- is route to dire+t to the rural areas and offered 7uantit( dis+ounts /S+NHtilit( 1tores +or.oration &o/t5 su"sidi=ed sho.s +S0N;anteen 1tores De.artment ;antonment su"sidi=ed sho.s
Input!
Eurther e-.ansion in the distri"utions to in+rease +o/era'e and rea+h more +onsumers and mar2et share5 *ea/( in/estment in the mar2etin' .romotions in FF* se+tor +an "uild stron' and lon'-term relationshi.s #ith the +or.orate "usinesses and other +om.lementar( 'oods manufa+turers5
&o / External &rends

Ta#ing advantage Trend
&ro#th of rural mar2ets of 1ind and 3un,a"L fo+us of +om.anies on this area Manufa+turin' ;ost In+rease %ea"a' &ro#th Di'ital +ommuni+ation
Potential Impact
In+reasin' +om.etition$ .ri+e erosion$ mar2et share ;utoff 3rofit and mar'in F..ortunit($ hi'h .rofits Influen+e on sales and mar2etin'
Je
Yes Do Yes Yes
+1
Yes Do Yes Yes
+4
Yes Do Do Yes
+A
Yes Yes Do Do
Page 26
3romotions 3o.ulation 'ro#th *ealth( )ifest(le and a#areness ;ustomerM%rade ;redit 3oli+( Mar2et share in+reases More demand of &reen %ea as an *ealth "enefit indi+ator )o# 9FI$ "ud'et +onstraint $ More re+ei/a"les Yes Yes Do Yes Yes Do Yes Do Yes Yes Yes Yes
S&nopsis!

1in+e the industr( is on the 'ro#th as .o.ulation e-.ansion in 3a2istan es.e+iall( in rural areas so the arri/al of ne# entrants has ma,or im.a+t on the industr(5 %ea .ri+es in international mar2et are randoml( in+reasin' in a fis+al (ear #hi+h +aused +uts n .rofita"ilit( in ma,or "rands5 1in+e the 16; +lasses ha/e "een stret+hin' to#ards the u..er middle le/el therefore the demand of the .remium .rodu+t has in+reased as #ell as .ri+e .rodu+ts in lo#er middle5 %his industr( is still follo#in' the +on/entional rules of +ommuni+ation therefore no +om.an( (et entered in this strate'(5 %ea has "e+ome a national drin2 of 3a2istan and has more .referen+e o/er other "e/era'es es.e+iall( in rural mar2et #hi+h is +ontri"utin' 66G of the total .o.ulation of the +ountr(5 As a +onse7uen+e$ the mar2et si=e is +ontinuousl( in+reasin' so far +aused more +onsum.tion of tea5
Input!
Eo+us on the +ost redu+tion$ mana'in' health( "rands$ +om.ellin' "rand +ommuni+ation and .rodu+t inno/ation5
S'0& Analysis
Strengths
15 25 A5 5 :5 65 ;om.an( name ima'e 1st Dational %ea ;om.an( *i'hl( e-.erien+e 1ales staff Q e-+lusi/e sole distri"ution net#or2 6ffi+ient .rodu+tion +a.a+it( 6-.ertise %ea Blendin'5 6+onomi+al .ri+in' strate'( 1hort term +redit .oli+( i5e5 effi+ient 9FI
Page 27
$ea%nesses
15 25 A5 5 :5 65 Do +ustomer +om.lain +enter #ithin the +om.an(5 )imited "ud'et and in/estment in the "usiness !ea2 +o/era'e in u..er northern areas of 3a2istan hi'h 3ri+e 'a.s "et#een .rodu+t line 1in'le .rodu+t manufa+turin' +om.an( i5e5 ,ust %ea Do s.e+ified 98D de.artment
&pportunities
15 25 A5 5 :5 65 75 &ro#in' rural mar2et and e-.ort Initiati/es in .ri+e .a+2 +ate'or( as to +a.ture /alue from .ri+e sensiti/e +ustomers De#er se'ments introdu+ed #ith entr( of ne# "rands #hi+h still ha/e hu'e .otential for 'ro#th ;entral and u..er 3un,a" has tremendous .otential for 'ro#th and .rofita"ilit( ;om.etition is still #ea2 in south +oastal areas %ea .ri+es are "e+ome hi'h in 'ra(Mloose tea mar2et &reen %ea mar2et is 'ro#in' "e+ause of health a#areness .ro'rams
Threats
15 A"olishment of 1u"sid( 'i/en "( &o/t5 on %ea Im.ort 25 !%F ?!orld trade Frder@ o.enin' lo+al mar2ets for 'lo"al +om.etition5 A5 ;om.etitors laun+hin' ne#er "rands #ith hi'h mar'ins at redu+ed .ri+e for our .ri+e-sensiti/e e+onom( .ro/in' serious threat in near future 5 In+rease +ounterfeit and I3 issues :5 Attra+tion for ne# entrants in the industr( 65 ;om.lementar( 'oods are 'oin' more and more e-.ensi/e then "efore i5e5 Mil2$ 1u'ar et+5
Cross Matrix Analysis

(pportunities
15 &ro#in' rural mar2et and e-.ort 25 Initiati/es in .ri+e .a+2 +ate'or( as to +a.ture /alue from .ri+e sensiti/e +ustomers A5 De#er se'ments introdu+ed #ith entr( of ne# "rands #hi+h still ha/e hu'e .otential for 'ro#th 5 ;entral and u..er 3un,a" has tremendous .otential for 'ro#th and .rofita"ilit( :5 ;om.etition is still #ea2 in south +oastal areas 65 %ea .ri+es are "e+ome hi'h in 'ra(Mloose tea mar2et 75 &reen %ea mar2et is 'ro#in'
Threats
15 A"olishment of 1u"sid( 'i/en "( &o/t5 on %ea Im.ort 25 !%F ?!orld trade Frder@ o.enin' lo+al mar2ets for 'lo"al +om.etition5 A5 ;om.etitors laun+hin' ne#er "rands #ith hi'h mar'ins at redu+ed .ri+e for our .ri+esensiti/e e+onom( .ro/in' serious threat in near future 5 In+rease +ounterfeit and I3 issues :5 Attra+tion for ne# entrants in the industr( 65 ;om.lementar( 'oods are 'oin' more and more e-.ensi/e then "efore i5e5 Mil2$ 1u'ar et+5
Page 28
"e+ause of health a#areness le/el
Strengths
15 ;om.an( name ima'e 1st Dational %ea ;om.an( #ith re+o'ni=ed "rands 25 *i'hl( e-.erien+e 1ales staff Q e-+lusi/e sole distri"ution net#or2 A5 6ffi+ient .rodu+tion +a.a+it( 5 6-.ertise %ea Blendin'5 :5 6+onomi+al .ri+in' strate'( 65 1hort term +redit .oli+( i5e5 effi+ient 9FI
(1,4, 4 K 5! S4, A, 4 K5 *i'h 3otential (D!S1K5 In+rease Mar2et 1hare (F!S4 1e'ment &ro#th
T1,4!S1,5 K D A"ilit( to resist T4,A K 5! S1,A,4 K 5 A"ilit( to resist
Jea#nesses
15 Do +ustomer +om.lain +enter #ithin the +om.an(5 25 )imited "ud'et and in/estment in the "usiness A5 !ea2 +o/era'e in u..er northern areas of 3a2istan 5 *i'h 3ri+e 'a.s "et#een .rodu+t line :5 1in'le .rodu+t manufa+turin' +om.an( i5e5 ,ust %ea 65 Do s.e+ified 98D de.artment5
(4!JA
TD!J5 *i'h 9is2 T5!JA Mar2et 1aturation TA!J4 3ri+e #ars
*ire ne# distri"utors

(4!J4 More +ustomer s#it+hin'
Page 29
1alue Chain Model

2uman 3esource Management
%a.alIs mana'ement .hiloso.h( is "ased on the traditional /alues of the %a.al famil(L /alues that #ere "ased on 'ood "usiness sense su+h as esta"lishin' a tea-sho. in the "usiness area of Kodia Ba=aar5 %his mi- of tradition and inno/ation has "e+ome the hallmar2 of the #innin' %a.al strate'(5 %he +om.an( is mana'ed "( a dedi+ated team of hi'hl( 7ualified and e-.erien+ed .rofessionals #ith di/erse e-.erien+e5 1ome of the 2e( features of the mana'ement .hiloso.h( are: A++essi"ilit(-F.en Door 3oli+( Fn-&oin' %rainin' 8 De/elo.ment Dis+i.line 8 9es.e+t at e/er( le/el 3arti+i.ati/e Mana'ement 1t(le 3erforman+e A..raisal 1(stem 6-+ellent 6m.lo(ee ;om.ensation
&echnology %evelo ment

%a.al is al#a(s stri/in' to install the most inno/ati/e te+hnolo'( in their firm5 In the .rodu+tion$ %a.al has 2esser 8 Sohra" ma+hines re7uire less human re7uirement and #hole #or2 is automated onl( the finished .rodu+t are .a+2ed in +artons "( the #or2ers5 Althou'h %a.al +an automate this .ro+ess too "ut in this +ase #or2ers #or2in' their mi'ht loose their ,o"s5 %o re+ord the attendan+e of em.lo(ee and to enfor+e the .un+tualit( there<s a ma+hine on the entran+e of the fa+tor( #here e/er( em.lo(ee has to .ut hisMher fin'er and enter ID +ard num"er and their arri/al time #ill "e re+orded5 *uman 9esour+e de.artment has soft#are throu'h #hi+h the( maintain the lea/es en+ashment re+ord alon' #ith full information a"out e/er( em.lo(ee is maintained5 If an em.lo(ee #ants a lea/e on so and so date heMshe must a++ess the ser/er and send an email to the *9 e-e+uti/e and the +onfirmation #ill "e deli/ered to the em.lo(ee5 %he soft#are #e reall( im.ressed #ith is the Fra+le soft#are used in the sales de.artment to dis.at+h orders to distri"utors5 In this ora+le soft#are the( ha/e re+ord of e/er( distri"utor and its =one$ to#n$ territor(5 !e sear+h the +ustomer name and then "oo2 ne# order5 In the ne# order-"oo2in' format there is a ta"le$ #hi+h is di/ided in to follo#in' +olumns: In this .ro+ess the( +all the num"er of sto+2 re7uested "( distri"utors in the +olumn of 7uantit( reser/ed5 If the sto+2 is not a/aila"le an alert messa'e #ill .rom.t on the s+reen and then the sales e-e+uti/e on his o#n dis+retion allo+ate the items to distri"utors5 %his s(stem is +entrali=ed "( the #arehouse data"ase so (ou 'et the u.dated information a"out the sto+2s5
Procurement
%he .ro+urement of tea is dealt "( %ea and Blend de.artment5 %he .ur+hase of tea ta2es .la+e in t#o #a(s: on an au+tion and on a .ri/ate offer "asis5 In a .ri/ate offer the tea 'ardens send sam.les to different tea industries5 %here are no "ids and no au+tions5 %he same .ro+edure is +arried out in +he+2in' the tea sam.les5 *o#e/er in a .ri/ate offer the .ur+hase is made on the 1A1 "asis i5e5 su",e+t of a..ro/al of sam.le5 If the sam.le is a..ro/ed "( the tea tester then the .ur+hase is made5 In+ase of a re,e+ted sam.le a re.la+ement is made of another 2ind of tea5 In "oth +ases that are the au+tion and .ri/ate "u(in'$ after the .ur+hase is made a .ur+hased sam.le is sent #hi+h is a'ain +he+2ed to +onfirm the authenti+it( of the tea and #hen the tea "at+h that a+tuall( +omes in after shi.ment is also tested to +onfirm it is the same tea #ithout an(thin' #ron' in it5
Page A0
Primary Activities In"ound logistics

%he ra# material for tea is .ro/ided mostl( "( Jen(a5 %he %ea and Blend de.artment initiates the #hole .ro+ess$ "e in tou+h #ith the su..liers in Jen(a5 %he .ur+hase of tea ta2es .la+e in t#o #a(s5 Fn a au+tion and on a .ri/ate offer "asis5 In an au+tion #hat ha..ens is that all ma,or tea .rodu+in' and e-.ortin' +ountries send +atalo'ues and sam.les of tea to ma,or tea industries around the #orld5 %hese sam.les are tested on /arious as.e+ts of taste$ +olor$ aroma and man( other as.e+ts5 %he sam.les that are a..ro/ed "( the tea testin' .eo.le are "ou'ht in the au+tion5 %he au+tion ta2es .la+e e/er( #ee2 in a ma,or +it( of the tea e-.ortin' +ountr( e5'5 in Jen(a it ta2es .la+e in Mom"assa$ in 1rilan2a it ta2es .la+e in ;olom"o5 %a.al has re.resentati/es in all these ma,or tea e-.ortin' +ountries #ho "u( tea in the au+tion on "ehalf of %a.al5
0 erations
%he testin' .ro+edure is as su+h that the sam.les are dis.la(ed first5 In front of the sam.les is a +u. #hi+h has that s.e+ifi+ tea in it5 All teas are "re#ed in the same manner #ith the same amount of +ontents for the "est result5 %ea tastin' team tastes all the tea and +omes to a ,oint +on+lusion5 %he tea #hi+h is sele+ted is then "ou'ht in an au+tion or a .ri/ate offer5 %here is o"/iousl( a lot of sam.les +omin' in e/er( #ee2 and lot of .ur+hases "ein' made5 %hus to 2ee. a re+ord of all su+h .ur+hases and sam.les %a.al has .re.ared a soft#are +alled the 9a# %ea In/entor(5 %his soft#are 2ee.s re+ord of all .ur+hases$ sam.les$ tea 'ardens$ +ountr( and the .erson sellin' tea5 !e #ere astonished to 2no# that the tea de.artment tastes a"out :00 +u.s a da(5
&ut ound Logisti#s

%he out"ound lo'isti+s in the south re'ion is .ro/ided "( the Al Mohammadi 6nter.rises$ a renowned and old customer of a!al.
3elative Im ortance of $actors
Page A1
,actor )um er
3ri+e ;om.etiti/eness 3rodu+t Inno/ation 3rodu+t >ualit( Einan+ial 3erforman+e Mar2et 1hare A/aila"ilit( of sto+2s and Futlet ;o/era'e ;ustomer ser/i+eMsu..ort Mar2etin' ;ommuni+ation Manufa+turin' ;ost
A solutel & +ritical 5

Yes
<er& Important 4
3uite Important A
)ice to ?ave 4
)ot signi*ica nt 1
0onHt Jant it 0
Yes Yes Yes Yes Yes Yes Yes Yes
Suggested 0e*initions!
A"solutely Crucial# "#errides most other considerations$ wouldn%t consider su!!lier who doesn%t 1ery Im ortant# 4uite Im ortant# 5ice to 2ave# 5ot Significant# %on!t 6ant it#
!erform on this factor. "ne of the first things we ask for$ but we may be !re!ared to negotiate on it. & negotiable item$ but one when we attach considerable weight to. 't could make the difference in a di#ision$ but is normally taken into account last. (ot normally taken into account at all. )ould !refer a !roduct without this feature
S&nopsis!
%he 2e( issues identified #ere the Manufa+turin' ;ost$ 3ri+e and >ualit(5 !e are alread( a#are that the %ea .ri+es are tou+hin' s2( hi'h and +onsumers are "e+omin' /er( .ri+e sensiti/e in .ur+hasin' %ea for either further sellin' or .ersonal +onsum.tion5 %a.al is alread( #or2in' on hori=ontal inte'ration$ im.ro/e the te+hnolo'($ +ost minimi=in' and o.timal .rodu+tion +a.a+it( utili=ation5 Another 2e( fa+tor is the mar2et share #hi+h +an "e a+hie/ed throu'h e-tensi/e +o/era'e5 %he "oo2in' time and deli/er( is a ma,or +ause and +on+ern of the +ustomer #hi+h ma( shift the +ustomer to other "rands5 %he +urrent deli/er( .eriod of %a.al is e/er( alternate da( #hen "oo2ed an order #hi+h is a 'reat +on+ern of .rodu+t a/aila"ilit(5 %he +ustomer ser/i+e is not a 2e( re7uirement for the +om.an( as it has +ontrolled "( the field for+e5 1in+e %a.al has a di/erse net#or2 of distri"utors the 'eneral +onsumer "ase does not 'o too dee. do#n into the +om.lain re7uirements5
Input!
3ri+e is the heart of all fa+tors for the +onsumer to +hoose an( "rand5 *o#e/er$ 'ood 7ualit($ .a+2a'in' and .erforman+e also .la( as a +atal(st for .ur+hasin' de+ision5
3ating Against Customer Buying Criteria
Page A2
3/ALITG K PRI+"
5on Price Attri"utes affecting Customer Choice PR(0/+T R"LAT"0
*. +uality ,. -olor ..&roma /.0rand 'mage 1. aste
J"I2?TA2"
This %usiness
+omp A
+omp %
@ +*7
A0 10 20 10 10 9 8 7 8 9 9 8 9 8 9 8 8 6 6 : : 8 A 2
S"R<I+" R"LAT"0
*.-ustomer -om!lain Ser#ice ,.&#ailability
40@
10 10 8
&0&A(
Has 2uality gone u!3down 45367'n !ast / years 8elati#e Price today 48s.7 8elati#e Price / years ago Rating Scale! 1 8 10
1 L <er& Jea#
100@
5A
H. 60- 99MJ' 260-A70M2'
55
1ame 90-::0MJ' 280-A8:MJ'
A5
Do#n 00- 70MJ' 2 0-A70MJ'
10 L <er& Strong
3/ALITG K PRI+"
5on Price Attri"utes affecting Customer Choice PR(0/+T R"LAT"0
*. +uality ,. -olor ..&roma /.0rand 'mage 1. aste
J"I2?TA2"
This %usiness
+omp A
+omp %
@ +*7
A0 10 20 10 10
DCD
257 058 15 058 059
F
257 058 158 058 059
4CF
158 056 1 05: 058
S"R<I+" R"LAT"0
*.-ustomer -om!lain Ser#ice ,.&#ailability
40@
10 10
1C4
05 058
1CD
058 058
0C5
05A 052
&0&A( In*erence!
100@
FCE
ECD
5C4
After anal(=in' the +ustomer .referen+e and "u(in' re7uirement #e +an safel( +on+lude that:
%he .rodu+t +onstitutes 80G of the +ustomer re7uirement i5e5 +ustomer is more +on+erned a"out the non-.ri+e fa+tors #hi+h in+lude the "rand Ima'e$ >ualit($ Aroma$ %aste and ;olor5
Page AA
%a.al .la(s a 'ood role in 7ualit( attri"ute and ha/e "rands to satisf( /aried +onsumer needs5 In the 1er/i+e +riteria the +ustomers is more interested in the a/aila"ilit( and +om.lain ser/i+e5 %a.al is #ea2en in +ustomer +om.lain area #here the Hnile/er has a se.arate unit for that so if %a.al +o/ers u. this area then surel( #ould ha/e an ed'e o/er the ri/als5 %he main issue #hi+h needs to dis+uss is ra.idl( in+reasin' .rodu+t<s .ri+e that has alread( in+reased o/er 100G in last four (ears5
Input!
Im.ro/e the Aroma$ 7ualit( and +ustomer +om.laint ser/i+es to "rea2 the +lutter5
Im act of Issues on Strategic Profile

Product Innovatio n
NNN
Issue )ame
;ustomers
+ompan & +redit Polic&
M Price
NN
+onsume r Purchasin g Po.er

NNN
?igh 'anu*acturin g +ost

N
Page A
Mar2et se'ments 3rodu+tsM1er/i+es 1trate'i+ Mana'ement F.erations ?3rodu+tionM)o'isti+s@ %e+hnolo'( Distri"ution ;hannels 9a# Materials$ 6ner'( Fr'ani=ation 1tru+ture
NN NN NNN N NNN
NN NNN
NNN NNN NNN
N NNN NNN NNN NNN
NN
NNN NN NNN
NNN N NNN NNN
NN NNN N
NNN +ritical
NN <er& ?igh Impact
N ?igh Impact
S&nopsis!
Anal(=in' ea+h issue #e +on+lude that the +om.an( must fo+us on +riti+al issues and re'enerate their o.eratin' strate'ies a++ordin' to the +han'in' .ur+hasin' .o#er of the +ustomer5
Input!
;ontinues im.ro/in' o.eration .lannin' and o.timi=e .rodu+tion +ost at minimum le/el5 9emo/e +redit .oli+( to im.ro/e 9FI and hire self suffi+ient distri"utors #ho +an easil( in/est5 )o# +ost strate'( #ould .ass ma-imum "enefits to +onsumers that im.ro/e their .ur+hasin' .o#er 3ro.er fore+astin' of demand and in/entor( mana'ement +an redu+e the im.a+t of un+ertain U .ri+e 1tron' relations #ith su..lier +an redu+e the U .ri+e Balue inno/ation #ould 'i/e +om.etiti/e ed'e o/er ri/als
Relative Per*ormance Rating
Customers Buying Criteria9 Price88879 4uality Attri"utes8887
3uestion its +ost
Keep it up Page A:
%etter Same Jorse
A/aila"ilit( ;olor 3a+2a'in' ;ustomer ;om.lain 1er/i+e
%aste
>ualit(
Aroma
,*7
)*7
:*7
Improve ,ast 0o not S.eat
Attri utes Important to +ustomer
Input!
Im.ro/e Aroma and +ustomer +om.lain ser/i+es
Im.ro/e the 7ualit( to "eat +om.etition 6-.and +o/era'e to .ro/ide +on/enien+e to +onsumers Build stron' "rand ima'e throu'h attra+ti/e .a+2a'in' and #in to. of the mind of the +onsumer
Page A6
&he $ive ;eneric Com etitive Strategies

Ty%e o0 3d"antage Soug$t
Lo4er Broad *ange o0 Buyers 5arro4 Buyer Segment or 5i2$e ost /i00erentiation
%e=dum 22'm &ul"ahar 1F& 1ele+tion 3a+2 Me ban !us" 125#$
;hena2 Dust Me="an 1a+het Eamil( Mi-ture Danedar %#in 3a+2
%a.al 1.e+ial %ea"a' %a.al I+e %ea
Danedar 9ound %ea"a'
In*erence!
(verall Lo. +ost Provider Strateg&
%his +ate'or( +om.rises of %ea "rands fallin' in the Dust and Mi-ture se'ments5 %hese se'ments ha/e "een dominated in Jara+hi$ interior 1indh$ +oastal and thar "elt "( %a.al<s Eamil( Mi-ture$ Me="an 1a+hetM3a+2s$ ;hena2 dust and Denedar %#in 3a+2s5 %he %ea manufa+turers +om.ete #ith ea+h other on the 'rounds of .ri+e and e+onom( .a+2s5
%road 0i**erentiation Strateg&

%his area has "een +om.etin' on differentiation strate'( #ith man( +ustomers +hoosin' on the "asis of 'ettin' less for more5 %e=dum +om.etes in this se'ment on the 'rounds of 22'm and "etter "rand ima'e and 1tron' %aste5 &ul"ahar is the onl( +hoi+e for ma2in' traditional Kashmiri -hai for +onsumers #hi+h has differentiation H135 1F& sele+tion .a+2 offers all three %a.al famous &reen %ea fla/ors i5e5 )emon$ Kasmine and 6lai+hi to +onsumers #ho see2 multi offers on "rands5
,ocused 0i**erentiation Strateg&

%his strate'( has "een onl( ado.ted "( %a.al on Danedar 9ound %ea"a' #hi+h +om.etes in the hi'h end se'ment of )i.ton %ea"a's5
%est +ost Provider Strateg&

%he sole runner in this +ate'or( is the Me="an Dust 12:'m #hi+h .ro/ides /alue for mone( that has .ro/ed its su++ess in the .rodu+t line in the sindhi +ultural lifest(le5
Input!
)ess for more$ distin+ti/e "rands #ith sustaina"l( 'ro#th and /alue to a..eal lar'er "u(er
1ision & Mission

INSTITUTE OF BUSINESS MANAGEMENT Page A7
%he mana'ement and the em.lo(ees of %a.al %ea ?3ri/ate@ )imited is +ommitted to: 1atisf( sta2eholders and "e a "en+hmar2 for >ualit($ ;reati/it( and 6thi+al /alues in "usiness A+hie/e leadershi. in all the +ate'ories of +ore "usiness and di/ersif( in areas #hi+h +om.liment the +ore "usiness5 3ro/ide .rodu+ts and ser/i+es that meet +ustomers< re7uirements$ e-.e+tation and a'reements relatin' to all as.e+ts of %a.al Inte'rated Mana'ement 1(stem5 Define and u.date measura"le o",e+ti/es and +ontinuall( im.ro/e the effe+ti/eness and .erforman+e of the >ualit($ *ealth$ 1afet($ 6n/ironment$ food 1afet( and I1 Mana'ement s(stem5 3re/ention of in,ur( and ill health "( +ontinuousl( identif(in' ha=ards and redu+in' ris2s to .eo.le$ fa+ilit( and "usiness5 6nsurin' that the %a.al .ro+esses and .rodu+ts are en/ironment friendl( and do not +ontri"ute to .ollutin' the en/ironments in an( manner5 Adhere to all a..li+a"le le'al$ statutor( and other re7uirements that relate to %a.al .rodu+ts$ ser/i+es$ health and safet(5 6sta"lish effe+ti/e arran'ements for +ommuni+atin' #ith all sta2eholders throu'hout the food su..l( +hain re'ardin' all a..li+a"le as.e+ts of %a.al Inte'rated Mana'ement 1(stem5
Strategic 1ision
%o "e a "en+hmar2 of >ualit($ ;reati/it( and Balue Inno/ation$ a+hie/e leadershi. in the "e/era'e manufa+turin' industr( #hi+h +om.liment the +ore "usiness
Strategic Intent
Ma2in' %a.al the .remium +hoi+e of +onsumers not onl( in hot "e/era'e se'ment "ut also in other +orrelated se'ments5
Com etitive Innovation

Brin' do#n the +ost throu'h hori=ontal and /erti+al "usiness .artnersL o.timi=e the .rodu+tion +a.a+it( to meet the future demand A..l( si- si'ma in +om.lete "usiness .ro+esses in order to attain +ost leadershi.
Business 0"<ectives and &argets

15 %o maintain mar2et leadin' .osition and in+rease the sales in Dorth 9e'ion "( :G in 20105 25 %o stren'then the re'ional "rands "( "rand "uildin' strate'(
Page A8
A5 1ee2 out the areas #here ne# .rodu+ts +an "e introdu+e to di/ersif( the +ore "usiness 5 In/estin' to in+rease .rodu+tion +a.a+it($ in order to meet e-.e+ted demand in +omin' : (ears5 :5 %o in+rease lo+ali=ation "( the end of 2011 in order to maintain and im.ro/e +ost effe+ti/eness5 65 %o o.timi=e the introdu+tion of ne# .rodu+ts "( de/elo.in' .rodu+ts #ith ne# desi'ns and features for (oun'sters se'ment5 75 %o "roaden e-.ort fun+tions and .ro/e and maintain .rodu+t e-isten+e in International mar2ets5 85 Moderni=e the +om.an(<s o.erations "( a+7uirin' 'reater te+hni+al e-.ertise5 95 In+reasin' field for+e and distri"ution net#or25
2o6= 'n Short Term
%hrou'h strate'i+ .artnershi. "et#een /endorsMsu..liers deli/erin' 9a# %ea$ .a+2a'in' materials$ and ma+hiner( re7uired to im.ro/e the effi+ien+( of .rodu+tion assem"l( and simultaneousl( throu'h lead time mana'ement te+hni7ues su+h as ma-imi=in' sto+2 deli/er( turno/er5 %hrou'h +ontinuousl( train and de/elo.ment of the front line #or2ers and su.er/isors to ensure to meet the deadline and .rodu+ti/it(5 Im.li+ation of %otal >ualit( Mana'ement %e+hni7ues su+h as +onstant +he+2s in throu'h e/er( sta'e of assem"l( line and final test .asses throu'h the .rofessional test ins.e+tors$ 'enerall( meetin' the .res+ri"ed re7uirement standard set .refera"l( "( I1F- 9000 or other 7ualit( standard maintainin' "odies5 %he .hiloso.h( of doin' it ri'ht the first time #ould "e a+hie/ed throu'h this method5 %his +an "e a+hie/ed throu'h effe+ti/e .rodu+tion .ro+esses and a stron' lin2 "et#een the )o'isti+s and distri"ution s.read in the mar2et5 An inte'rated s(stem to "e de/ised #here "( the /endorMsu..lier and distri"utor #ould lo' in the details of the ordered .rodu+t on the +om.uter s+reen and the same #ould "e a/aila"le to the +om.an( .lant offi+e5 %he .lant offi+e #ill start .rodu+tionL ea+h le/el of +om.letion +an "e monitored throu'h the intelli'ent s(stem5 %his #ould ensure that the deli/er( .ro+ess "ottle ne+2s are redu+ed and also an MI1 +an "e 'enerated to o"ser/e the dela(s$ reasons and e/en the fre7uen+( of orders and .referen+e5 1u"se7uentl( a se.arate 01F3<s 1tandard F.eration 3ro+edures4 to "e de/ised #hi+h #ould +ontain the details and timin' of .rodu+tion at different sta'es of .rodu+tion 1ee2 out for a/enues su+h as %ea +ould "e manufa+tured +hea.l( on the lo+al 'rounds rather than de.endin' on dollar .ri+e5 %he follo#in' measure #ould hel. slash the manufa+turin' +ost on t#o 2e( ris2s$ de/aluation of lo+al +urren+( and unrealisti+ demand5 %hrou'h or'ani=in' e/ents su+h as road sho#s$ atta+2 .lans$ e/ents or'ani=in' or more +onsumer en'a'ement .ro'rams to "e +arried out throu'h "rand "uildin' and .romotional a+ti/ities to a..re+iate the "rand hard +ore lo(al5 Inte'rated ;om.laint Mana'ement 1(stem #ith 2 hours ;all ;enter fa+ilit( for %a.al ;ustomers fa+in' an( +om.lain to a+ti/e resol/in' trou"le li2e +ounterfeit$ fa2e a+ti/ities et+5 9e'ular audit 1+hedule of sur.rise ins.e+tion team to test the measures$ ser/i+e and standards set u. at %a.al e-+lusi/e distri"utions +enters5
Page A9
;onstant 1o+ial ;ontri"ution and 6n/ironmental 9e.ortin' at Ea+tor( 1ite for the residents and #or2ers health and safet( and follo#in' and o"tainin' the 6thi+al Modules re7uires "( the authorities 4 he abo#e ob:ecti#es !ertain to the day to day business acti#ity and need to be addresses on real time basis. &ny delay or slackness in the abo#e would lead to business losses in terms of re#enue and re!ute7
'n Long Term
A+hie/e further +a.itali=ation and in/estment outla( .rodu+tion of more .rofita"le se'ment and di/est non .rofita"le "usiness units5 %his #ill "enefit the %a.al %ea "( mil2in' to more demandin' se'ments and .rodu+tion5 1imultaneousl( %a.al #ill ha/e to #or2 out a strate'( to redu+e the .ri+es of its a"o/e .ri+e .rodu+ts as the( ha/e ma,or share "ut also fo+us on the e+onom( .a+2s as /olume dri/ers "( +onsistent in their su..l($ #hile enterin' into a ne# unta..ed mar2ets5 %he .ositionin' of the ea+h se'ment #ould "e su+h that it #ould +om.ete #ith the Hnile/er and 6astern %ea "ut #ould +reate an im.ression of "etter 7ualit( and /alue inno/ation #ithout fa+in' the internal +anali=ation5 !e e-.e+t that the +ustomer +an "e dra#n to#ards ea+h se'ment e/en if there #ere .ri+e #ar5 A stru+tured 9esour+e .ro'ram to "e de/ised em.hasi=in' on intelle+tual and te+hni+al s2ills that +an "e made a/aila"le in o"tainin' te+hnolo'( of s.e+iali=ed in manufa+turin'5 %his entit( #ould a+hie/e t#o fa+tors$ firstl( redu+in' +onsidera"le .rodu+tion +ost and se+ondl( e-.osin' the +om.an( to an additional mar2et #hi+h +an "e su..lied #ith desired .rofit mar'ins5 !ith the added stress to#ards en/ironmental .rote+tion$ ;19 initiati/es and 1ustaina"ilit( +or.orations need 2ee. themsel/es a#are of the 'lo"al de/elo.ments5 Fne su+h de/elo.ment is the dis+oura'ement and dis+ontinuan+e of #asta'es from the 'lo"al im.a+t s+enario5
Segmentation 1aria"le of the Consumer Market

Geographi#
%a.al has di/ided its o.erations in to t#o re'ions namel(:
South Region!
1outh side loo2s after the Jara+hi$ *(dera"ad and 1u22ur5
)orth Region!
Dorth side in+ludes Multan$ )ahore$ and Islama"ad5
Si6e o* Southern Region

Jara+hi .o.ulation si=e is 19$A1:$8 A till 2010$ area $227 2mV ?1$A:6 s7 mi@ *(dera"ad .o.ulation si=e is 1$8 7$27:5 1u22ur .o.ulation si=e is o/er 1 million :$16: 2mV ?1$99 s7 mi@
Si6e o* )orthern Region

Multan .o.ulation si=e is million ?a..ro-@$ area is A$721 2mV ?1$ A7 s7 mi@ )ahore .o.ulation si=e is 8$896$000$ area +om.rises to 1$772 2mV ?68 s7 mi@ Islama"ad .o.ulation si=e is 80:$000 ?1998@$ area 90650 2mV ?A:0 s7 mi@
Page 0
0ensit& o* Southern Region

Jara+hi A$ 9159M2mV ?9$0825:Ms7 mi@ 1u22ur 17:59 .ersonsM2mVM2mV
0ensit& o* )orthern Region

Multan 8A8M2mV ?2$170Ms7 mi@ )ahore A$660M2mV ?9$ 79Ms7 mi@ Islama"ad 880M2mV ?2$279Ms7 mi@
!limate
%he +limate /aries as mu+h as the s+ener($ #ith +old #inters and hots summers in the north and a mild +limate in the south$ moderated "( the influen+e of the o+ean5 %he +entral .arts ha/e e-tremel( hot summers #ith tem.eratures risin' to : W; ?11A WE@$ follo#ed "( /er( +old #inters$ often fallin' "elo# free=in'5 Fffi+iall( the hi'hest tem.erature re+orded in 3a2istan is :258 W; at Ka+o"a"ad5 %here is /er( little rainfall ran'in' from less than 2:0 millimeters to more than 1$2:0 millimeters ?958 952 in@$ mostl( "rin' "( the unrelia"le south-#esterl( monsoon #inds durin' the late summer5
(emographi#s
Age! 2ender! ,amil&! (ccupation! Religion! )ationalit&! 20 60 Male and Eemale "oth ;ohesion families )a"or$ Business man$ entre.reneurs 8 self em.lo(ed$ student$ farmer Muslims$ *indus and ;hristians et+ 3a2istani
Psy#hographi#
Social +lass! Li*e st&le! Personalit&! lo#er$ middle$ middle-u..er and u..er-u..er %rend($ 7ualit( +ons+ious$ tr(in' to differentiate themsel/es from others$ famil( "elon'in's$ ;ultural and *erita'e /alues$ 3ride$ 3atriotism 6le'ant$ sim.le$ e-tro/ert
Behavioral
(ccasions! /ser status! /sage rate! Readiness stage! Attitude to.ards product! 9itual$ meetin's$ e/enin' 'et to 'ather$ Brea2fast or an( so+ial meetin' 3otential users$ non users and hard +ore users de.end u.on need and +onsum.tion intendin' to "u( 3ositi/e attitude
Page 1
'here customers "uy#

%ea is sold throu'h t#o different .la+es$ one is the #here +ustomers dire+tl( "u( the .rodu+t from 'eneral retailers$ H1;sM;1Ds$ Modern %rades and the se+ond is the institution sales #here +ustomers ?institutions@ dire+tl( "u( the .rodu+t from %a.al<s Fut of *ome 1ales de.artment ?FF*@ #ho dire+tl( maintains lin2s #ith different institutions5
Jhen customers u&!

%he +onsumers usuall( "u( %ea at the start of the month in "ul2 amount for famil( usa'e or #hen the %ea desire stri2es that +an suffi+e them for that .arti+ular month or the +ommen+in' one too5
?o. +ustomers choose!

;ustomers +hoose %a.al throu'h ad/ertisin'$ .rint ads$ .romotional s+hemes 8 #ord of mouth5 1in+e it .roudl( +aters to the different tastes and .referen+es of .eo.le "elon'in' to di/erse lifest(les$ %a.al %ea is the .rimar( +hoi+e of tea lo/ers nation#ide5
Jh& the& pre*er a product!

As tea fulfills a +ore need of refreshment5 %a.al<s "rands remains fa/orite around the +ountr( #ith its 'ra.e-nutt( a..earan+e$ ri+h 'olden +olor and stron' refreshin' taste5 In fa+t its .o.ularit( is su+h that other +om.anies ha/e laun+hed their o#n /ersions of these "lends$ "ut %a.alIs remains the ori'inal and ultimate5
Strategic Canvas > Past & $uture
Page 2
*i'h
T$e Strategy an"as o0 t$e Pakistan6s Branded Tea Industry 2005'2009
)o#
%r&'e
%re$&u$ (ual&")
*+"ens&,e -o,era#e
!el&,er) T&$e
*..&'&en" R/0
%rodu'"&on -a1a'&") Re'o#n& ed Brands
Ta1al
Un&le,er
*as"ern Tea
-lo,er %a2&s"an
Loose Tea
*i'h
T$e Strategy an"as o0 t$e Pakistan6s Branded Tea Industry 20+0'20+5
)o#
%r&'e
%re$&u$ (ual&")
*+"ens&,e -o,era#e
!el&,er) T&$e
*..&'&en" R/0
%rodu'"&on -a1a'&")
*..&'&en" 3-M
-3R 0n&"&a"&,es
Ta1al
Un&le,er
*as"ern Tea
-lo,er %a2&s"an
Loose Tea
Input!
6-+lusi/e distri"ution #ho ha/e e-tensi/e mar2et +o/era'e and #illin' to in/est more in the "usiness #ould in+rease the mar2et .enetration "ut the lon' term relationshi. must "e maintain #ith /alue in return5 100G +a.a+it( utili=ation +an redu+e +ost of .rodu+tion and thus offer +om.etiti/e .ri+e in the mar2et 1o+ial issues and ;19 initiati/es +an stren'then the +om.an( ima'e$ +ustomer .referen+e$ "rand .ositionin'$ attra+t more in/estors #hi+h #ould ultimatel( affe+t the "usiness +(+le5 ;om.an( o#ned 0;hai 1hai ;afX4 #ould 'i/e .reem.ti/e mo/er ad/anta'e in this "usiness5
Cost Structure
INSTITUTE OF BUSINESS MANAGEMENT Page A
SC )oC
1 2 A : 6 7 8 9 10 11 12 1A 1 1: 16 17 18 19 20 21 22
+ontents
9a# Materials and +om.onents +onsumed Dire+t )a"or %e+hni+al dire+tor<s remuneration 1alaries$ #a'es and "enefits 6m.lo(ees< se/eran+e +ost 1tores +onsumed )i'ht$ heat and #ater Insuran+e 9ent$ rates and ta-es 9e.air and maintenan+e 9o(alt( %e+hni+al assistan+e %ra/elin'5 ;on/e(an+e and entertainment 3osta'e and tele.hone 3rintin' and stationar( Behi+le runnin' De.re+iation ;anteen De#s.a.ers$ ma'a=ines and su"s+ri.tion 1taff trainin' Intan'i"le assets amorti=ed Fther manufa+turin' e-.enses
@ contri ution
86 152 0501 156 157 058 052 050: 05A 508 057 052 0507 050A 050A A 0517 0501 050 05011 0500A
%otal Manufa+turin' ;ost

100G
Eor %a.al %ea$ hi'hest /alue addin' +om.onent in the total manufa+turin' +ost is 9a# material$ i5e5 86G #hi+h the +om.an( im.ort from 1ri )an2a$ Jen(a and Ban'ladesh %a.al %ea has redu+ed it +osts$ as +om.ared to its +om.etitors$ "u( +han'in' it 9a# material 1u..lier sour+e and au+tion5 It .ur+hases 0.remium 7ualit(4 %ea from 1ri )an2a$ Jen(a and Ban'ladesh5 %hese +ountries are relati/el( hi'h annual %ea .rodu+er in the #orld5 ;ost effe+ti/eness a+hie/ed "( in+reased lo+ali=ation5 %ea ;om.anies are im.ortin' %ea full( from 1ri )an2a$ Jen(a and Ban'ladesh #hi+h in a+tual in+rease there +osts tremendousl( as %a-5 %he end result for them is in+reased .ri+es5
Input!
1ele+tion of 1u..lier on the "asis of .ri+e +om.etiti/eness +an redu+e the ma,or .art of the .rodu+tion ;ost5 F.timal +a.a+it( utili=ation of .lant +an redu+e e-.enses Im.lementation of %>M +an im.ro/e the "usiness infrastru+ture and lead to +ost leadershi. in all 'rounds
Pricing Strategy
Hnile/er ha..ens to "e the trend and .ri+e setter for the #hole industr(5 %he other ma,or .la(er in the industr($ i5e5 %a.al$ 6astern %ea$ ;lo/er 3a2istan and )oose %ea its follo#ers5 %hese .la(ers 'enerall( follo# the ;ost 3lus and /aria"le methods for .ri+in'5 Ei-ed mar'in A5A6G and :-8G .ass on Distri"utors and %raders res.e+ti/el(5
Page
)oose %ea has "een smu''lin' throu'h "orders so mushroom .la(ers offer hi'h mar'ins to trade and +reate tou'h +om.etition in the mar2et5
Input!
Both )o# +ost and differentiation strate'ies +an 'i/e "etter .ri+in' o.tions to the +om.an( as #ell as to the +ustomers to +reate +om.etiti/e ad/anta'e 5
(egging Indicators and (eading Indicators

Leading K Lagging Indicators O+ompan& is *ocusingP
Introdu+in' ne# "rands
ProBects-Activities done
3rodu+t de/elo.ment$ Blind %est and .reresear+h has "een done
Impact on Results
In+rease .rofit and mar2et share De# mar2et de/elo.ment
Area o* ,ocusing *or tomorro.

De# "rands for +hildren and (outh %ea "a' mar2ets Di/ersifi+ation in ;ore "usiness
Page :
6uro.ean Mar2et
De# fla/ors in &reen %ea
3rodu+t is in testin' .hase
In+rease sales and mar2et .enetration %a2in' first mo/er ad/anta'e in the +ate'or( More re/enues Manufa+turin' ;ost #ould "e o.timi=ed 9edu+e the #asta'es Dro. do#n %ime dela( in .ro+esses 6n/ironment friendl( +om.an( In/estment to "e utili=ed in mil2in' .rofita"le "rands !arehousin' ;a.a+it( im.ro/e
De# /ariants in I+e %ea 3o#der
)a" test has done Ela/ors ha/e de+ided and tested
*ealth +ons+ious .eo.le Diet .lans ;hildren and (outh #ho are trend( and #ant so+ial +han'e Instant .o#derMener'( 9ead( %o drin2s
Im.lementation of %>M
%IM1 unit has esta"lished #ho #ill ensure the im.lementation of all areas
Jai=en and 1i- si'ma im.lementation
3hase out 1BHs ha/in' no .rofita"ilit(
Dis.osed off I+e %ea ;AD and 1afari 3E1
De# ma+hiner( #ould "e .ur+hased to +ater 2e( demandin' "rands
Action Plan
S I Input
;ustomer ;om.lain ;enter
Re*
PgI
Strateg& K Action Plan

6sta"lish ;ustomer ;are De.artment
Jhen K Jhere
1 >%9 20112012 Jara+hi
st
Results
%o handle +ustomer +om.lains Build trust of +ustomers 9e'enerate the .rodu+t strate'(
1!F% 1trate'( ;an/as
29 A2
Page 6
2 A
*irin' of ne# Distri"utors in Dorth Di/ersif( Business
1!F% Distri"utor 1tru+ture Business 1+o.e 1!F% Assum.tions of 'ro#th 1!F% %o. 7 6-ternal %rends 1!F% ;om.etition &ro#th Matri-
29 26 09 29
1ee2 effi+ient and e-.erien+e distri"utors 9esear+h ne# mar2ets and o..ortunities 6sta"lish de.artment or outsour+e the +onsultan+( to see2 out #omen +oo2in' "eha/iors Mar2et sur/e( ;om.etition Anal(sis Bisit International Mar2ets and %ea 6-hi"itions to see2 out the demand and .otential in/estors De/elo. "rands for rural mar2et #ith hi'h le/era'e of +ost 9ound Dust %ea"a's laun+h Introdu+e ne# uni7ue /ariants in &reen %ea "( stret+hin' health "enefits of ha/in' it Build lon' term relationshi.s #ith num"er of su..liers to 'ra" the demand of %ea and ma2e diffi+ult to rea+h for +om.etitors
>%9 20102011 Dorth 9e'ion 1st >%9 2011 Dationall(
th
;a.ture more mar2et share Business 'ro#th and 'enerate re/enues to mil2 the other "usiness units Mar2et health indi+ators and o..ortunities identifi+ation %o +a.ture those +ustomers #ho are #illin' to .a( at different .ri+es In+rease the sales /olume and +om.an( 'ood #ill In+rease 1ales re/enues as differen+e in rate of e-+han'e 6n,o( the ma,or +hun2$ first mo/er ad/anta'e and leadershi.
98D De.artment De# fillers in the e-istin' .rodu+t line 6-.ort Mar2et e-.loration
18 29 27
2011 Jara+hi
29 20
>%9 2010 Dationall( 2010-2012 Mid 6ast 6uro.ean +ountries 1st >%9 20112012 1outh 9e'ion Ard >%9 2011-2012 Dationall(
th
Business 1+o.e 1!F%
09 29
9ural Mar2et .enetration &reen %ea /ariants
1!F% ;om.etition &ro#th MatriMar2et 1hare 1!F% %o. 7 6-ternal %rends
11 18 29 29 27
Eirst mo/er ad/anta'e
%ea 1u..liers relationshi.
1!F% Im.a+t of Issues on 1trate'i+ .rofile 1!F% 1trate'( ;an/as Mar2et 1i=e %o. 7 6-ternal %rends 9elati/e im.ortan+e Ea+tor 1trate'( ;an/as ;ustomer Bu(in' ;riteria %o. 7 6-ternal %rends Mar2et 1tru+ture of Industr( ;om.etition &ro#th MatriMar2et 1hare %o. 7 6-ternal %rends
th
29 A:
>%9 20112012 1rilan2a Jen(a
9es.ond the un+ertain demand of the mar2et In+rease mar2et share ;har'e 3remium
10
3ri+in' 1trate'(
16 29 27 A2
Im.lement Eull .ri+in' strate'(
th
>%9 20102011 Dationall(
9edu+e +ost of manufa+turin' and enhan+e mar'ins 1helf share #ill "e im.ro/ed In+rease sales and re/enues ;a.ture +om.etition Brands share
11
A/aila"ilit( of 3rodu+ts %ea Aroma and >ualit( Im.ro/e Mi-ture Blend and +larif( its 3ositionin' Brand ;ommuni+ation 1trate'(
29
%rain the 1ale for+e and s+hedule to res.ond .rodu+ti/e +alls on dail( "asis Im.ro/e the "lend of )eaf to enri+h the aroma %hrou'h 9esear+h$ multi.le "lendin' tests to im.ro/e the "lend !or2 on +ommuni+ation .latform to re.osition the "rand Distin+ti/e "rand +ommuni+ation to a/oid +anni"ali=ation
!ee2l( 20112012 Dationall( 1st >%9 2011-2012 Metro ;ities 1st >%9 2011-2012 Jara+hi Rinitial .haseS 2nd >%9 2012-201A All 9e'ions
12
A: 27
1A
10 20
%o ta2e out form maturit( sta'e and sustain 'ro#th Build "rand .ositionin' and s.e+if( se'mentation
11 27
Page 7
#ithin %a.al "rands 1.e+ifi+ mar2etin' mi.lannin' for ea+h "rand
1:
)o# +ost 1trate'(
;om.etition &ro#th MatriDistri"utor 1tru+ture %o. 7 6-ternal %rends ;ost 1tru+ture
20 2: AA
Im.lement %>M and KI% to attain the lo# +ost leadershi.
1st >%9 2012-201A F.eration 8 3rodu+tion .lant
In+rease ;M and .ri+e +om.eti/eness In+rease ;onsumer /alue In+rease firm 'ood#ill and "rand .ositionin' Mar2et share &ro#th Attra+t more finan+ial in/estors and D&Fs 3u"li+i=in' the +om.an( ;19
16
;hoose ;ause and ;19 initiati/es
1trate'( ;an/as
Eind issue that "est fit to the "usiness /ision$ mission and 'oals5 1ele+t ;19 initiati/es that full( su..ort the +ause and "rands
Ard >%9 2011-2012 9ural Areas
Page 8

Tapal Tea's Strategic Marketing Plan

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Tapal Tea's Strategic Marketing Plan

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Research Report on Strategic Marketing & Planning

Tapal Tea Private Limited

Imran Ali Muhammad Bilal Arsalan Yousuf

INSTITUTE OF BUSINESS MANAGEMENT

INSTITUTE OF BUSINESS MANAGEMENT

Com any!s Profile

INSTITUTE OF BUSINESS MANAGEMENT

Pakistan Tea Market Estimated 2009

Branded Tea Segment 53%

Loose Tea Segment 47%

Urban 33% Rural 67%

INSTITUTE OF BUSINESS MANAGEMENT

INSTITUTE OF BUSINESS MANAGEMENT

$or &raders & 'holesalers#

Di/ersif( the "usiness in the +om.lementar( .rodu+ts5

%oundaries and ,uture Scope

INSTITUTE OF BUSINESS MANAGEMENT

'ar#et Structure o* Industr&

Loose -'ushroom Tea

;lear &reen %Bs )i.ton I+ed %ea ?3o#der Q ;an@

INSTITUTE OF BUSINESS MANAGEMENT

'ar#et Structure o* the +ompan&

&o/t5 Fffi+ials Einan+e De.t5

3ro+urement De.t5 Eorei'n Distri"utions

Armed for+es 8 6-.ort ;hannel

%he Manufa+turer S&nopsis!

INSTITUTE OF BUSINESS MANAGEMENT

'ar#et Si6e 7 Past *our &ears 8 3t& 9Tons:

INSTITUTE OF BUSINESS MANAGEMENT

'ar#et Si6e 7 Past *our &ears 8 <alue 9in =000:

INSTITUTE OF BUSINESS MANAGEMENT

Tota! B!a2k Tea

Urban Rural Urban Rural INSTITUTE OF BUSINESS MANAGEMENT 2005-06 2006-07

INSTITUTE OF BUSINESS MANAGEMENT

'ar#et Si6e 7 )e1t *our &ears 8 <olume 9Tons:

Assumptions for Growth 0ust Tea Segment

Lea* Tea Segment

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'i1ture Tea Segment

2reen tea Segment

Iced Tea Segment

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Product Li*e +&cle

+ompetition 2ro.th matri1

Hnile/er ;lo/er 3a2istan 6astern %ea

%etle( !orld Bital ;hai

)i.ton I+ed %ea -

A2$000 A$000 $000

?istorical 2ro.th ProBected 2ro.th +ompan& Pro*ita ilit&

INSTITUTE OF BUSINESS MANAGEMENT

Porters ,ive ,orces 'odel

Bargaining Power of Buyer

Bargaining Power of Suppliers

Rivalry etween !ompetitors

Threats from Su stitutes

INSTITUTE OF BUSINESS MANAGEMENT

Stage of Business (ife Cycle

Social and Cultural $orces

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+ompan& and +ompetitor Anal&sis

Product ,orm +ompetition

Product +ategor& +ompetition

INSTITUTE OF BUSINESS MANAGEMENT