Prepared By1.

Md. Saiful Islam

ID-2009-1-10-136 2. 3. 4.
ID(Fall Semester2009) Prepared for-

T.M.Nafiul Islam
ID-2009-1-10-201

Mahbub Zaman
ID-2008-1-10-

Afreen Choudhury
Lecturer Department of Business Administration East West University

Date of Submission: 15th December2009

In writing this term paper, we are extremely indebted to almighty Allah who creates us in this transitory world along with all concerned with this Term Paper: It could not possibly thank all of those marvelous people who have contributed a lot of this assignment. There are, of course, some very special people who could not go without mention.

First of all, we would like to convey our heart felt gratitude and regards to Afreen Choudhury, Honble Lecturer, Department of Business Administration, East West University whose enthusiastic guidance and help during the entire study period made it possible for us to prepare this report. We are grateful to some prominent authors worldwide whose books I have consulted in the preparation of the assignments. We also thank to our course mates for their advice and comments to the success of the report. Thanks,

Md. Saiful Islam Id-2009-1-10-136 On Behalf of the Group

To Afreen Choudhury Lecturer Department of Business Administration East West University Subject: Submission of Assignment on Marketing plan of Green Tea of Lipton.

Dear Sir, With due respect, we are please to submit herewith the assignment on Marketing plan of Green Tea of Lipton that you are assigned us to prepare by 2009. Thank you for assigning us such interesting topics. This assignment has enabled us to apply our theoretical knowledge as enhanced my understanding of the subject. We look forward to carry out such studies in future also. Sincerely yours,

Md. Saiful Islam Id-2009-1-10-136

T.M.Nafiul Islam Id-200613533

SHORNA Id-200613390

Mahbub Zaman Id-200710623

BBA

Contents
Chapter-1
1.1 1.2 1.3 1.4

Introduction (The Company)

Aim... Goals Market Growth... Objective.... Capital issues Key of Success

Chapter-2
2.1

Situation Analysis
Market Description

2.2 2.3

Competitors Review..12 Market and Consumer Needs.12

Chapter-3
3.1 3.2 3.3 3.4 3.5

Market Segmentation
Cultural14 Demographic ..38 Economical ..42 Legal and Political Technological..43

Chapter-4 Target Marketing Chapter-5 Positioning Chapter-6 Marketing Mix

6.1.

Product

6.2. Price 6.3. Place 6.4. Promotion

Chapter-7 Advertising Strategy

7.1. Print Media 7.2. Advertising on TV

Chapter-8 Financials, Budgets and Forecasts

8.1. Breakeven point 8.2. Sales forecast

Chapter-9 Performance Monitoring Chapter-10 Conclusion

MARKETING PLAN FOR LIPTON GREEN TEA

IN BANGLADESH

1..Executive Summery :
Over the last few decades green tea has been subjected to many scientific and medical studies to determine the extent of its long-purported health benefits, with some evidence suggesting regular green tea drinkers may have lower chances of heart disease and developing certain types of

cancer. Green tea has also been claimed as useful for "weight loss management" a claim with no scientific support according to medical databases such as PubMed. Beside these, green-tea is useful for following factors. It is used to treat multiple sclerosis. It is used for treatment and prevention of cancer. It is used to stop Alzheimers and Parkinsons diseases. It is used to raise the metabolism and increase fat oxidation. It reduces the risk of heart diseases and heart attacks by reducing the risk of thrombosis. It reduces the risk of esophageal cancer. Drinking green tea inhibits the growth of certain cancer cells, reduces the level of cholesterol in blood, and improves the ratio of good cholesterol to bad cholesterol. It is used to treat rheumatoid arthritis and cardiovascular diseases It is used to treat impaired immune function. . Some researches show that, drinking green tea regularly may help prevent tooth decay by killing the bacteria which causes the dental plaque. Recent studies have shown that the demand of green-tea is on the rise day by day. For so many reasons the population over the world are attacked by cancers and so many diseases day after day. For the treatment of these diseases people are often taking herbal elements as medicine. The people of our country are going to be health conscious day by day. They are eager to take nutritious food, physical exercise and so many things to keep them healthy. Green tea contains some useful ingredients that can do a big deal in improving your health. Green tea is a not only a refreshing energy drink but also a health tonic in its own terms. The goodness of tea is well known around the world and Lipton has decided to sell its green-tea product in Bangladeshi market. Today Lipton is a popular brand in the global tea market.

2.. The Company :

Lipton Tea, the world's leading tea brand, is available in more than 180 countries worldwide. With more than 100 years of tasting, buying, and blending expertise, Lipton Tea provides today's health-conscious consumer with a variety of convenient, great-tasting tea products -- from hot tea to ready to drink to ice tea mixes. Lipton(R) Tea is owned by Unilever (NYSE: UL, UN), one of the world's largest consumer products companies.

2.1.. AIM :
The aim of manufacturing Lipton Green-tea in Bangladeshi market will be earning maximum profit at minimum cost and capture the maximum share of the tea market of Bangladesh.

2.2.. Goals :
Lipton will capture at least 80% of tea-market of Bangladesh within a shortest time and give 100% quality to the customers by selling its Greentea product. Lipton will charge affordable price to the customers by which a customer will easily take the product to use.

2.3.. Market Growth :

Green tea has been the fastest growing segment of the RTD Tea category, with an average annual growth rate of 16.5 percent (IRI, GDMx, 20062008). Lipton will give some free offers to the consumers with Lipton Green-tea beside these offers they will give some extra facilities to the retailers and wholesalers by which the buyers will be eager to buy the product and the consumer will be interested to adopt the product without any hesitation. By giving such types of offers Lipton will be able to increase its market

growth rate. But after passing a certain time when the demand will be high, if the company close to give any offers with its Lipton Green-tea product, the consumers and the buyers will take the product for its quality and high level of demand. In this procedure Lipton will be able to establish its market growth rate in a good position at all the time.

2.4.. Objective and Issues :

Lipton will achieve the maximum profit at a minimum cost within a shortest time by selling its Lipton Green-tea. They will convert the taste of the people from tea/coffee to green-tea. Lipton will capture the maximum part of the market on the basis the quality of product.

2.4.1..Capital issues :
To produce Lipton Green-tea, Lipton will take loans from the bank and their own fund and make investment on this product. In this case, bank loan will be the outer source and companys fund will be the inner source of finance of Lipton Green-tea.

2.4.2.. Key of Success :

The quality, low price charging and marketing strategy will be the reasons of working behind to achieve success of Lipton Green-tea product. Lipton has to focus on the mind of buyers and consumers by which their selling rate of Lipton Green-tea will increase and they will be able to achieve maximum profit. Besides taking some extra strategies the company will be able to reduce its cost of the product.

3.. Situation Analysis:

First of all our company want to know about the market situation. So the company collects information from the market.

3.1..Market Description:
About 93% of all tea consumed is black tea and 7% is green tea (Tea Association, 2007). Our target market is the all local people, College students, young and all class people who prefer to drink tea for their pleasure. In market another green tea is Tetly Green Tea, as a Bangladeshi company we are offering our country people to enjoy the new flavor which will give them the pleasure what they will expect. Again green tea is very good for health so the consumers who are conscious about their health are also our target customers.

3.2.. Competitor Review :

The most likely substitute product for tea is coffee. Our new generation is rapidly switching to coffee from tea. Again other tea companies who are already experienced enough and old in market they can pressure market participants to continually add features and cut prices, well in that case its a big risk for our new product. Key competitors include:

Tetley TeaA fully owned subsidiary of Tata Tea Limited owned by Indias Tata Group. It is the second largest tea brand in the world. Tetley Orange Pekoe, Tetley premium black tea, Green tea for their varieties Tetley enjoys excellent distribution.

Nescafe- it is a brand of Nestle.

As a substitute of tea Nescafe or coffee is also very attractive to the young generation. Nestles continuous innovation and solid customer service support clearly strengthen its competitive position.

Ispahani Mirjapur Tea-

The slow gun of Ispahani Mirjapur Tea is, Ispahani Mirjapur cha Bangladesher shera cha. Its a Bangladeshi product for this it took a special place among Bangladeshi people.

Despite this strong competition, Lipton Green Tea can carve out a definite image and gain recognition among the targeted segments. The flavor what we are serving to our consumers is the critical point of differentiation for competitive advantage. Especially for the young generation we are offering a new flavor which will give them a peace mind and a healthy life at a reasonable price.

3.3.. SWOT ANALYSIS :

The strengths, opportunities, weaknesses and treats for our product:

Strengths: Strong reputation, recognized brand, growing market share.

Great financial backing as a subsidiary of Lipton Co.

Strong commitment to follow new customer trends.

 Premium quality image associated with products. Weaknesses: Lack of brand awareness and image. One supplier and limited experience. Consumer trends change quickly and are often difficult to track. Large distribution network can cause misplaced and wasted products. Opportunities: Increase publics awareness of making healthy choices. Consumers have an increasing need for functional products in their busy life. Many industry leaves large amount of entrapped potential. Treats: Nescafe coffee.

Tetley Green Tea and tea.

3.4 ..Market and Consumer Need:

By using marketing analysis or SWOT analysis we can understand the strength, weaknesses, opportunities and treats for our product. So in that way we can recognize the market need. At the basis consumer need our main target will be

the 18-35 years old people and different class young professionals. After analyzing we came to know that these age people basically want to fulfill their tree needa) Health b) Social Network c) Novelty. So to the 18-35 year old active and busy consumer, Lipton green tea is a healthy, refreshing tea because it helps you relax, relieve stress, clear your mind and give you the sleep needed to continue to excel in your busy lifestyle. Lipton green tea will not only deliver these highly desired effects, but will also package them in a delicious, refreshing beverage.

4.. Market Segmentation:

4.1..Geographical Segmentation:
Geographically we can segment our market into smaller group like region, country size, density of area and climate. Firstly our main target is positioning in the minds of our target consumer. We are planning to bottle our product for Bangladeshi market so they can save time by this ready to drink system.

4.2.. Demographical Segmentation :

Demographically our main target is the 18-35 age old people. There is no gender based specification but we decide to classified it age and class based; our green tea is healthy for all gender people. At a reasonable price any income people can buy our product.

4.3..Psychographic Segmentation:
Our product Lipton Green Tea is a product which can be easily consumed by all social class people. People from different life style and

personality characteristics our green tea will give them relaxed and pleased mind with a healthy life.

4.4.. Behavioral Variables:

We will assure to our target customer about our products benefit sought, brand loyalty, product usage rate and readiness-to-buy stage. By this consumers attitude towards our product will become positive and they will try our product.

5.. MARKET TARGETING:

Market segmentation reveals our firms market segment opportunity. Our firm now must evaluate the various segments and decide how many and which segment it can serve best. We now look at how our company evaluate and select target segments.

EVALUATING MARKET SEGMANTS:

Here we evaluate the best segments for our new green tea marketing. Now we want to start a new product so evaluate the segmentation is very important for us. In here our firm looks at these three factors:

segment size and growth:

Our company must first collect and analyze data on current segment like size, growth rate and expected profitability for various segments. It is known that our company is very big but now we offer a new product green tea. So our segment size is also large. Mainly we focus on demographic segmentation here because our main target is various types of local people.

Segment structural attractiveness:

Our company also needs to examine major structural factors that long run segmentation attractiveness. Our segment is more and more attractive because there have only one competitors and the competitor is not so strong. Green tea is not available in our country and there have much demand about this product so power of buyers and power of suppliers all is favorable for us. Substitute product may be available but we think this not make a bad affect for us.

TARGET MARKET SEGMANTS:

After evaluating different segment our company must now decide which and how many segment it will target. Because buyers have unique need and wants, a seller could potentially view buyer as a separate target market. For our green tea we divided our product for different class.

Fig : Target marketing segmentation

We want to use a differentiated marketing strategy and our company decides to target several market and designs separate offers for each. Our company decide to produce separate types of green tea based on age , family

life cycle , social class and lifestyle. Our company tries to know what kind or types of people want what kind of product. We want to evaluate the best or some of best types and then produce our different types of product. First time we produce the product for examine our segment and then if it is want we can change our product types. In this time we want to offer some types of green tea mainly based on demographic segmentation. No 1 2 3 4 Different consumer Age 45-65 older Age 18-35 Young single Lower lowers Upper lowers Working class Middle class Upper class Lower class Product & product name Green tea Light Power Green Tea Classic Green Tea Gold Green Tea

This is our different types of product. First time we offer this product because there are different types and demand in our market.

6.. POSITIONING :
Positioning is very important for our company because its a new product and this is not common in our country. So positioning is very much

important here if we can make a better position here we can achieve our goal as soon as possible.

IDENTIFING POSSIBLE VALUE COMPETITIVE ADVENTAGE:

DIFFERENCR

AND

Service :
We want to make sure that our service is better than other competitors. We provide a page inside the packet for inform us about our product. There are available contact numbers, mail addresses etc. are here for inform us about the problem or advantage about the product.

Product : We will provide the best product and our confident is too much high. We know that there have a few competitors for us and for this it is easy for us to grab the market.

Image : We know that a company cannot develop an image in publics mind overnight using only a few advertisements. A good product wants a brand name and we establish. People : Our target people is so much because we find that there have much demand for green tea and tea users are many.

Our target graph are here :

our target user other user non user

Fig : Our target users

POSITIONING STRATRGY :
This is our new product and it is not familiar in our country so firstly we decide to use MORE FOR LESS positioning strategy. We give more benefit than the other competitors but our price is low because we want to attract the consumer about our product. It is first time for this product for this it offer this strategy but after establishing it can change its strategy. We can not continue this strategy because it can make a loss for the company for this we will charge more price or give less benefit after 1 or 2 years.

Fig : Positioning Strategy

Developing a Positioning Statement : To young, old, active, all class people who have to use tea regularly; LIPTON GREEN TEA is the tea that gives you more energy, strong ness, power than any other brand because it has high level of quality.

7..

Advertising:

We are planning to give our advertisement in radio, billboard, poster & internet.

Radio advertisement:
We will select Radio Today & Radio Fruit for our advertising. Because these FM Radio channel are vary much popular for young generation. We will telecast our add for 10 times in a day in these channels.

Billbord:

We will give add for our product in different location in DHAKA CITY. Such as UTTARA, BANANI, BASUNDHARA, MOTIJHIL, SAHABAG etc.

Poster:
We will use poster for our product advertisement .

Liflet:

We will use liflet in some selected area for our product advertisement.

News paper:

We will select THE DAILY PROTHOM ALO for our product advertisement. Because this newspaper is vary much popular newspaper in our country.

8.MARKETING MIX of lipton green tea

Product: Lipton has a variety of brands each catering to different market segments. After Finleys green tea became popular in Bangladesh, our company was encouraged to innovate further. As a result our company has created four new flavors of green tea and launched. These are- green tea light, power green tea, classic green tea, gold green tea. Lipton Taza became the countries largest selling tea brand with a loyal following, which shows that it has created a high brand image toward the customers. PRICE: Lipton people never wanted to compromise on quality so they adopted value based pricing. As Lipton specifically catering to different segments of the market so its prices based on its effective value to customers relative to our products. Also the pricing is different for different types of customers.

Lipton Green 100gm Tea Green tea light 45 Power Green 45 Tea

200gm 75 72

500gm 155 150

1000gm 310 305

Classic Green Tea Gold Green Tea Competitors Price Finley Green Tea

35 40 100gm 54

70 75 200gm 95

145 145 500gm 170

290 285 1000gm 320

PLACE: In the beginning of the company in our country is to establish and capture a strong position in the market of tea, but now its popularity is in so high that now it wants to capture the whole green tea market.

Manufacturer RETAILERS

CUSTOMERS

Our company will place these products at where they can capture the mind of customers. First of all we will use our distribution network across all over the country. Extensive training programs are provided for the devoted sales

personnel. The popularity of its fine brand is unabated to making it no-1 national green tea company in our country. Lipton caters to its customers by providing the most attractive four flavours to more than 14000 outlets in Bangladesh, which include superstores, department stores, general stores, medical stores, grocery stores, and merchants etc. Grocery stores and Merchants will provide more than 75% volume of the green tea sales.

PROMOTION:
Electronic Media

Initially, the company relied heavily upon print media but this trend has been changes so far, because of the life style of the customers. Right now the company is doing intensive advertising through networks. In their advertisement they hire services of the renowned celebraties.

Sales promotion strategy:

The company is running different sales promotion schemes at different time of the year depending on the sales of the company.

Lipton brand is backed by planed strategy implementation and followed up with affective communication. Its advertising and promotions are the meaningful and it represents that they are the best in providing the best green tea.

9.FINANCIALS, BUDGETS AND FORECAST

BREAK EVEN ANALYSIS: For every product or version the break even analysis is not so different, because the cost of the product will be more or less same. For that reason manufacturers usually charge their product with a minimum of comparison that will generate the high profit and the low cost. Our total fixed cost will be 10,00,0000 Tk. The total variable cost is 4.5taka per unit. We will sale 2million unit at 6.5taka per unit at the beginning of the year. So for that our break even point will beVariable cost will be= 20000000 multiplied by 4.5 taka per unit = 90000000 taka Selling price will be= 20000000 multiplied by 6 taka per unit

=120000000 taka Break even point =10000000 divided by 2 =50000000 units Break even point in taka=50000000 multiplied by 6.5 =325000000 taka. SALES FORECAST: The sales forecast will be predetermined. As we are going to launch four types of product the sales forecast will also include some other costs.

sales forecast Units sales Green tea light Power Greet tea Classic Greet tea Gold Green tea Others TOTAL UNIT SALES UNIT PRICE Green tia light Power Greet tea Classic Greet tea Gold Green tea Others

JAN 7200 12400 53700 32300 6800 112400 JAN

FEB 9000 16000 70000 50000 4000 149000 FEB Tk.25L SF R C S S E O E A Tk.27 A T 19 20 71 70 56 49 12 12

MAR 15000 25000 82500 60000 5000 187500 MAR Tk.27 20 70 98 12

4000 0000 3000 5000

SALES
Green tia light Power Greet tea Classic Greet tea Gold Green tea Others TOTAL

3000 0000 2000 5000 180000

100 800

TK 409876 2000 0000 3567890 1 0 0 0 2098760 5000 569087 1000 0000 6645613
5000 000 0 0 2

234500 TK 320000 4987960 7800578 7053367 20161905

TK 467880 TK 240 5000003 5 0 TK 5687907 . 346567896 8 0 478 TK 457970 . 41302666

PR D CT N M O U A E

10.PERFORMANCE MONITORING:

1. In another country green tea has resulted a little provide some that it protects from cancer. A massive Cochrane Review analysis of studies that have looked for associations between green tea consumption and various forms of cancer has concluded that there is little strong evidence of such links. German researchers poked around 51 studies that have had 1.6 million participants. While noting that green tea is perfectly safe at 3 to 5 cups a day, the investigators were forced to conclude: "There is insufficient and conflicting evidence to give any firm recommendations regarding green tea consumption for cancer prevention. 2. For monitoring performance we can take SEVERAL STRATEGIES BUT WE HAVE TO AWARE OF IMPLIMENTING ALL THESE STRATEGIES NOT IN A GROUP BUT IN A CHRONOLOGICAL ORDER. 3.WE can hire some agents to check whether the product has any problem or not if have then let us know immediately.

11.CONCLUSION:

Lipton

GREEN TEA is a perfect example of a local green tea becoming a market leader through consistently improving themselves by implementing different strategies and creates value addition. This company is owned by the world famous Unilever Company. Lipton is one of the world's best-known and best-selling brands of both hot leaf and ready-to-drink tea. It was originated at United Kingdom(UK) and introduced in 1890. Under the slogan direct from the tea gardens to the tea pot, make tea a popular and approachable drink for everyone with a high quality but reasonably priced product. Lipton has experienced marketing team has contributed over the years to the phenomenal growth of the brands and the company. In recent years , Lipton has become a dominant tea brand in many markets. The brand is well-represented in many countries across the globe, including the US, Russia, Saudi Arabia, France, Japan, Australia, and Sweden. In May 2007, Unilever became the first company to commit to sourcing all its tea in a sustainable manner. On 6 May 2009, Lipton received a Corporate Green Globe Award for its work with the Rainforest Alliance. In recent years, memorable advertising campaigns on the electronics and print media via using the TV and film celebrities have made LIPTON as

a household name. All the flavors of Lipton green tea will popular among all the generations and it will be tasted throughout the whole countries.