Syed Muhammad Hassan Ali 17831

Abdullah Saleem 15223

Sahir Suleman 17033
Unilever’s Vision is to create a better future by
helping people to feel and look good every day. To
meet the everyday needs of all the consumers for
nutrition hygiene and personal care through value
capturing branded products and services.

Lipton Tea Established in 1893 as Thomas J Lipton

Co which was later acquired by Unilever in the year
1972, then launched in Pakistan in 1948. The
leading tea brand in the world carters more than
11 major varieties of Lipton in Pakistan.

Lipton provides consumers with a wide range of

options, including black tea, green tea, large leaf
tea, ice tea, herbal infusions, and chai tea, so as to
cater for their different tastes and preferences.
Lipton is only doing its job with consumers and that
is it. They are giving consumers the benefit of an
opportunity of tasting the best tea and see what
they have been missing. We are a tea loving nation
and we deserve the best. At times we are
complacent and we keep on drinking the same old
brand, unless someone comes and shakes us out of
our complacency and tells us that there is
something even better and tastier that we should
try.

LIPTON’S PRODUCT LINE:

  Lipton Yellow label
 Lipton mega danne
 Lipton green tea
 Lipton flavored tea
 Lipton iced tea
 Lipton tea bags

These all are few of the major Lipton products that

carters the major tea market in Pakistan. Different
strategies and different policies are required to
cater such a big chunk of the market. Those
strategies applied correctly to the targeted
audience results in success of the product hence
success of the brand.

MARKETING STARTEGY

Marketing strategy is a process that can allow an

organization to concentrate its limited resources on
the greatest opportunities to increase sales and
achieve a sustainable competitive advantage. A
marketing strategy should be centered around the
key concept that customer satisfaction is the main
goal.
Lipton is communicating their product superiority
to consumers through the “taste challenge”
format; one that is best suited to landing such a
message. Lipton is simply making a claim that it
can now make. And they are doing this in a
creative and truly Lipton way. They are asking us to
try their new blend once and judge for ourselves
whether or not it is the best tasting Lipton tea ever
– and not simply that it is even better than
Danedar. Lipton is so confident that its new blend
will surprise consumers that they are also backing
it up with a money back guarantee.

Lipton is only doing its job with consumers and that

is it. They are giving consumers the benefit of an
opportunity of tasting the best tea and see what
they have been missing. We are a tea loving nation
and we deserve the best. At times we are
complacent and we keep on drinking the same old
brand, unless someone comes and shakes us out of
our complacency and tells us that there is
something even better and tastier that we should
try.

Consumer satisfaction and commitment is indeed

the most important thing. It has been often said
that ‘Customer is God’. Lipton emphasizes on
consumer satisfaction for survival and
development so that consumers make repeated
purchase. Major reason for Lipton’s success is that
they have rapidly penetrated to so many markets
along with the fact that they have a wide product
category which consequently earned them high
consumer satisfaction and high customer
commitment.

In addition to this nature, quality, function and

culture lead to consumer satisfaction. Price is not
an important factor that causes customer
commitment to Lipton brand. Product
differentiation, high- quality service and sales
philosophy are factors enabling to lead to
consumer brand loyalty. In addition, the
formulation and implementation of all strategies
including market segmentation, positioning,
pricing, promotion and pricing strategy is for the
sake of better satisfying customer needs to reach
the aim of enhancing consumer satisfaction and
commitment.

Marketing Mix 4 P’s

Products:
Lipton’s yellow label tea is the most popular
product of its product line contributing major chunk
for Lipton’s sales. Yellow label tea is mostly
preferred by upper class while middle and lower
class prefer Tapal (Competitor) over Lipton. To cater
different segments of the market Lipton is offering
different SKU’s of its famous yellow label tea in
form of jar packets, bars and tea bags consisting of
50g , 90g , 380g , 475g , 950g and 1.9kg while
sachets made specifically for the upper class, and
large and economical SKU’s made for middle and
the lower class. Also yellow label tea is offered in 3
different versions of the taste in sachets packs
based on the density of the tea content. For other
products such as the green tea offers green tea in
various SKU’s of the same weight age mentioned
above, in different flavours. Green Tea is
specifically targeted to millennial who are young
and energetic, who want to maintain a healthy life
while having the flavours of life. While products
other than Yellow label tea and Green Tea , are
being targeted to niche markets to cover them fully
such as the lipton iced tea is not widely available
but only on selected stores and facility where this
products seems to fit in the context.

Pricing
Most of the Lipton’s products have been priced
accordingly to its marketing strategy to target
upper and middle class with the upper lower class.
Most of the products prices are quite in line with
the competitor’s products with non-significant
differences with Tapal’s product. Lipton has been
using premium pricing strategy to encourage
favorable perception among consumers. Through
their premium pricing Lipton is able to charge
slightly higher prices for all of the variants of its
products. With superior promotional mixes and
perfect IMC, Lipton is able to create a brand image
which signifies modern lifestyle with casual
offerings perfect to fit in with the feelings of the
upper class and the middle class. With such
offerings the consumers are able to relate and
match it with their lifestyles. Starting from the
price of Rs 200 of a normal 50 sachet pack to big
institutional bags having a price tag of Rs 2000,
Lipton offers solution for all of its users not only
through its products but also from its value in
terms of money.

PROMOTION:
• Advertisement
TV ads, Newspaper, Magazines, Bill boards, POS
etc.
 • Sales promotion
Discount vouchers, Lucky draws etc.

• Internet Marketing

• Sponsorships

• Co-Branding 4ps

PLACES THE BRAND CARTERS.

Across Pakistan. All areas, HKB, Hyper star, Small
retail stores everywhere.

MARKETING ENVIRONMENT:
There is immense competition in the tea industry
as Lipton directly competes with Tapal Danedar,
Tetley, Tarang etc. Furthermore, Lipton faces
indirect competition through soft drinks and
beverages like, Coca-Cola and Pepsi who has
captured a huge market share through their
unprecedented, proficient and elastic
promotional/advertising campaigns and wide
distribution network.
Lipton through its marketing strategy aims to
target the upper lower, middle and higher class,
most commonly SEC A, B and C . Among which are
the urban areas including offices, hotels,
restaurants, cafes, and other metropolitan areas.
Its yellow label tea which is the most popular
product of Lipton targets the market through mass
marketing with the expectation to mainly target
people who are young, trendy and cosmopolitan.
With its unmatchable taste and brand’s marketing
strategy, Lipton is able to become a market leader.
For its green tea it targets millennial who are
considered to be the best fit for consumption. Tea
bags are specifically made for the upper class while
its soft and jar packs are targeted to middle and
upper lower class. With this targeting strategy it is
a perfect spectrum for a specific marketing plan
catering to the needs according to the needs of the
segment. Lipton is involved in investing heavily in
research and development which ensures that
innovation is implemented at every level ranging
from its production to its new product. This process
leads to new product development and product line
extension with the expectation to increase sales
and this market share.

CHARACTERSTICS AFFECTING
CONSUMER BEHAVIOUR:
CLOSE SUBSTITUTES: There are a lot of
similar products in the market as Lipton.

CONSUMER PREFERENCES: Consumer

might prefer characterstics of a product
that Lipton does not carter.

FLUCTUATING ECONOMY: Lipton is a

market leader and have a good brand
image. Economy in recession might affect
its sale overall.

CONSUMER BUYING BEHAVIOR:

Primarily there are two interveners in the decision-
making process. Firstly, women or housewives who
are concurrently initiators, analyzers, deciders,
buyers and users because women initiates or
discovers the need, brand considerations and
comparison, decision on which product to buy,
realize the purchase and use it for their own
consumption and continue it. However, men tend
to be initiators and users, leaving the other roles to
their wives. Moreover, the need for tea emerges
quite possibly at home, which means that Lipton
should start its marketing activities at home. Since
tea is a habitual purchase majority of the
consumers have already in their mind their
respective tea preferences as their purchase does
not require an extensive search for detailed
information. Consumer usually buys tea once or
twice a month so the need for arousal or for
building brand preference is small. Considering
these factors Lipton should focus on its
promotional mix on the basis of internal and
external stimuli; home and word of mouth,
television etc.
DECISION PROCESS OF CONSUMERS:
The users of Lipton daily consume this brand’s
products as they are much loyal to its product line
than to its competitors. Usage of Lipton’s products
are not dependent on any occasion as they are
used irrespective of any event due to its perceived
benefit of staying healthy, attachment to its brand
and overall taste and flavor. The users of Lipton are
well informed to the differentiated campaign of its
products and are awake and interested on the
readiness degree. They are quite positive and feel
enthusiastic towards brand talking. Also, mainly
the users of Lipton are regular users having
medium usage in daily levels.