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Consumer Behavior

Final Report

Introduction:

Vital group has been working in Pakistan since 1991. Previously they were famous for their
agricultural goods and other consumer market goods. Soon enough, Vital group started the Tea
industry and launched three brands over a periods of time. Vital, Surhan and Dawn. Vital Tea is
Vital Groups very first product which was launched at a small town in Punjab, ‘Haroonabad’.

Vital Tea’s export started since 2005. The tea is now available in different flavors. Vital Tea has
a complete range of mixed tea and teabags. Due to its reasonable prices, Vital Tea attracts many
customers across the country.
STP Analysis:

Like most BOP Products available in the Paki9stani market, Vital tea is segmented into rural,
and urban, regions both. The reason why this is possible is because mainly all the products are
now marketed through various media channels, may it be digital, print or social media. The
availability of the advertisement increases demand in all regions and with rising everyday
expenses, the lower and lower middle class always keeps an eye for cheaper alternatives of the
expensive brands available in the market.

Demographically, Vital tea has targeted both genders, people of various age groups and from all
walks of life in lower and lower middle class. The prices being the biggest leap in this
competitive environment have given Vital tea the edge It needed. Some might argue that the
prices of similar products like Tapal ‘Tez Dum’ and Brooke Bond Supreme might be similar, or
close to being almost the same, but Vital Tea definitely has better taste according to the
consumers who we have questioned and interviewed in this process thus our findings determine
that even consumers in the BOP market rate taste above the prices because tea has an important
value in our culture and our everyday lives.

Vital Group has focused on health as they have mentioned on their website and after having a
chat with the Brand manager, we found out that Vital Group pays a tremendous amount of
budget on filtering and processing of the tea because they want to serve their customers with the
best quality tea. They are positioned to fulfill the needs for nutrition and hygiene and Vital Tea
focuses on quality, more than any other attribute be it marketing or packaging.
Critical analysis:

According to our research, Vital tea has a very strong competition in urban and rural areas. With
competitors like Brooke Bond Supreme and Tapal ‘Tez Dum’. Both these brands have almost
equal or in certain regions, even more market value and presence and they have been in the tea
industry for a longer period of time than Vital. Tapal is a well known name in Pakistan. Making
a modest beginning over half a century back, today Tapal has become the largest, 100%
Pakistani owned Tea Company in the country. In December 1997, Tapal Tea became the first
Pakistani Tea Company to earn the ISO-9000 certification: a symbol of the highest international
quality standards. Tapal's success has left many astounded. With such an immense competition,
Vital tea has survived with providing its product in the rural and urban markets both.
The consumer segment that are participants of our study are lower and lower middle class, who
are mostly from rural areas of Punjab and Sindh and are in Karachi for jobs. Their culture is very
simple and family oriented.They like to wake up early in the morning and sleep early at
night.Most of the targeted consumers are working people and they need to be very active and
energetic.

Vital tea is used on daily basis in all the households of targeted consumers and twice or thrice a
day people use it. The value Vital is adding by meeting everyday needs for nutrition, hygiene
with and people feel good, look good and get more out of life. Vital tea is positioned as good and
strong quality and as per research results; people are consuming it because of quality and its
kharak taste.

Up to half of the total consumers are working people, they work for 6-7 hours like house
cleaners, and labors and other half are full time workers who are security guards and need to be
up whole night. All these come under the income group of Rs. 15,000 – Rs. 30,000. Consumers
were very satisfied with the brand and we know that in this segment word of mouth matters alot.
Many consumers were using after hearing from their neighbors and relatives.

Some purchase it on monthly basis, getting 1kg package per month and according to them Vital
is strong quality the quantity is used less. Price and quantity is satisfying consumers and it is very
convenient for them to buy Rs. 10 sachet that can be used twice a day.

This segment group is very brand conscious and know about every brand as using ladder
technique, we got know changes they need are mostly in prices because they have price elasticity
of demand as they work hard and try to save more.

Moreover, the consumers are willing to pay the originally demanded price but might shift to
competitor brands if price is increased compared to quantity with a larger margin. The basic
reason to consume the tea is for its stimulus effect and caffeine boost required in stressful day.
The consumption has now become addiction causing it to become staple good.

Many participants believe they would shift towards locally produced,unbranded tea if price of
Vital tea is increased. Here it could be noticed that Vital tea’s customers are price sensitive and
expect whole ‘value for money’ from each purchase.

Tea in Pakistani culture is very special factor, especially for lower segments who do not have
wide range of choices in every day food/beverages. Vital tea should create as many variants
possible competing on price and new, attractive packaging to widen its market segment.
Vital group started its operations with Vital tea in 1991. Throughout time the Viral Group has
come a long way with its other successful products like Vital Beauty Soap. Vital is one of their
first product to introduce in the market. In 2005 it was started exporting into international
markets.
Analysis and research have been conducted which should some realistic problems like; people
tend to like the taste of competitive brands more than Vital Tea, on a large number of retail
stores, Vital Tea is not available easily, Vital Tea is weak in advertisement as well as in trade
channels or distribution channels, one respondent is of the view that Vital Tea would have more
attractive brand if they assign the slogan “VITAL FOR LIFE” to their brand.
By over viewing such problems and obstacles there are potential ways in which Vital can
enhance its reach and profitability in many ways. According to the research 87% respondents
were agreeing that Vital Tea can increase its market share by better taste and quality and frequent
and attractive advertisements. In this just a basic solution to counter back and build up a proper
brand image for Vital Tea to crater its mass reach. Even though Viral Tea has managed its 19
years of productivity with a very slow and constant pace.
Other than this, Vital Tea has good quality but as we know that it has strong competitors in the
market so, to be strong opposition, it should enhance level of quality. Nowadays almost no ones
compromises on quality. So in order to step up the game with other big competitors Vital Tea
should work on your quality department and start producing with efficiently and good quantity.
The nature of your product is FMCG(Fast-moving consumer good), distribution channel has very
importance. Vital Tea has weak in trade or distribution channel. So, they should emphasize on
distribution network. Vital Tea should get down in direct link with local distributors. This will
help increase the reach of Vital Tea with also simultaneously increase in sales. This will help
increase the profits figures of Vital Tea with increase in revenues.
They should increase their print as well as electronic advertisements and display them frequently
on local, national and international channels like GEO TV, ARY network etc. As one of major
problems like lacking in reach with their consumers. Vital Tea can work in this area and gain alot
of attention. Furthermore, this will lead consumers to atleast try the product or even get in a
potential consumer's mind. This might increase the expenses for the brand, but will surely impact
the profit ratios initially and may end up with an increase revenue and reach of their consumers.
Extension is also required at this point. They should offer T-bags. Today's world requires
different products and substitutions. T-bags is one of most used and reliable form of product that
one Tea company could ever offer. Vital Tea should introduce T-bags of tea, green-tea and even
coffee in different flavours. Today's consumers try new products. This will give a good hitch to
Viral Group in terms of profitability and even in terms of increasing its market share.
Feasibility Report
Vital Tea, the brand itself have made alot of progress throughout its years of operations. But due
to varies factors in Pakistan like, political inferences, different taste etc, the brand had some
cracks during its productivity. According to the brand manger of Vital Tea, Mr Muhammad
Zeshan, the brand has started to cope with the existing giants in the market. From past few years
Vital Tea has adopting aggressive marketing strategies. Which further lead them to acquire 2nd
position in sales just after Tapal on the top. Now Vital Tea is supplied overseas in 26 different
countries. And they are improving their quality with quantity to cater to their consumers more
efficiently. Going in direct contact with their consumers, they all suggest lowering of price, so
that it remains affordable for them with maintaining their loyalty towards it.
More branding and promotional activities are required so their its existences and fluctuation of
its prices are visible to its potential consumers. The brand is successful in making its place in
rural areas, but in urban areas it is stirred up with other brands due to heavy competition already
existing there.
The Packaging itself requires some more modification. This is very important for an brand like
Vital Tea, because it aims to target market and keeping it all same throughout might lead to
discontinuing its consumption or even forgetting the brand.
Appendix
Interview 1
Irfan (Driver from Thatta)

Q1: How did you find out about Vital Tea?

Irfan: I found out through my cousin who was previously working in Karachi and told me that
this is a cheap tea brand that we use here.

Q2: Are you satisfied with the prices?

Irfan: Not really, these big companies should do a bit more for the poor people, we are never
looked after.

Q3: Do you think they should bring any changes to the product?
Irfan: What can I say, they are a big company they should know better we only care about the
prices.

Q4: Do you go for better taste or cheaper prices?

Irfan: It’s best if we get both, but we when it comes to tea, we mainly care about the taste, we
can compromise on the prices.

Q5: How much is your consumption of the product per month?

Irfan: We don’t really go about calculating the monthly expenditure or consumption, but I know
for a fact that its more than 1Kg, because sometimes I have friends who come to meet me too.

Q6: Why do you use this product?

Irfan: I can use any product within the same price range, in fact there are cheaper products but I
like the taste of Vital tea that’s why.

Interview 2

Qulsoom (mother of 3 children- House Maid)

Q1: How did you find out about Vital tea?

Qulsoom: My husband once brought it home as it was on a ‘’bachat scheme’’ in our local store.

Q2: Are you satisfied with the prices?

Qulsoom: Prices are better than a lot of other brands in the market and the taste is similar.
Q3: Do you think they should bring any changes to the product?

Qulsoom: I don’t think they need to, they can make the taste better that’s all, and if they can
lower the prices that will be very nice.

Q4: Do you go for a better taste or cheaper prices?

Qulsoom: I go for taste as me and my husband we love tea, the kids are not such a big fan of tea.

Q5: How much is your consumption of the product?

Qulsoom: I use more than 1KG of tea, but at the end of the month we might use sachet packs at
times.

Q6: Why do you use this product?

Qulsoom: We use vital tea because of the prices it has to offer.

Interview3

Shahjee (Resident of Shireen Jinaah Colony)

Q1: How did you find out about Vital Tea?

Shahjee: I found out about Vital Tea through a friend

Q2: What is your consumption of the product?

Shahjee: We consume a packet of 100rs, and purchase it every week.

Q3: Do you think they should bring any changes to this product?

Shahjee: They can make the tea a bit stronger, taste wise.

Q4: Are you satisfied with the price of the product?

Shahjee: They can reduce the prices however 100rs per week is fine.

Q5: Is the product easily available to you?

Shahjee: Yes we can easily get the product here in Shireen Jinnah Colony.

Q6: Any other products that you would like to use instead of this?

Shahjee: No, I am fully satisfied with the product.

Interview 4

Basheer Khan
Ahad: How often do you consume this product?

Basheer: my consumption for tea is on daily basis. I use it 7 days a week and at least 3 times a
day.

Ahad: Since when did you start using it?

Basheer: in 2015, when I was assigned as driver at an officer’s house. Let me mention an
incident. I was very ill and I was craving for tea. One of my friend suggested Vital Tea to me.

Ahad: Why do you use this product?

Basheer: I like Vital Tea for its Kharak taste.

Ahad: Are you satisfied with the price?

Basheer: 80rs per box, what else we can ask for.

Ahad: How did you find out about the product?

Basheer: as I mentioned earlier, my friend suggested me.

Ahad: Do you like the taste or you are using it for the cheap price?

Basheer: I like the kharak taste of it. It makes me more active during my duty.

Ahad: Do you think they should bring changes?

Basheer: I think they should up with more different promotion like other brands do.

Interview 5

Muneeb Ali Nawaz

Ahad: How often do you consume this product?

Muneeb: On everyday basis. Usually in the morning before heading for working

Ahad: Since when did you start using it?

Muneeb: One month ago.

Ahad: Why do you use this product?

Muneeb: I use it as a revival. It makes more alive in the morning. Without it I cannot operate.

Ahad: Are you satisfied with the price?

Muneeb: 80rs per box. It’s more economical for me and my family with such good taste.
Ahad: Do you think they should bring changes?

Muneeb: Yes I want it quantity to be increased. That will sure give me good hitch maintaining
my loyalty towards Vital Tea.

Ahad: How did you find out about the product?

Muneeb: My wife once brought it to give it a try. Its price attracted us to make our consumptions
constant.

Interview 6

Shumaila

Ahad: How often do you consume this product?

Shumaila: I’m not really a big tea fan but I consume it with my breakfast. Sometimes twice a day
if I need a quick recovery from workload.

Ahad: Since when did you start using it?

Shumaila: I started using Viral Tea when I got married. My husband entire family uses Vital tea
and I’m quite satisfied with this change.

Ahad: Why do you use this product?

Shumaila: I use Vital Tea firstly because I was made to use, as I don’t had options back then.
Now I use it to sharpen up my mind for everyday work and as a revival from stress.

Ahad: Are you satisfied with the price?

Shumaila: one of the best options when you’re on budgeting on monthly basis.

Ahad: How did you find out about the product?

Shumaila: my mother-in-law introduced it to me. And they found out about it from a local store
nearby.

Ahad: Do you like the taste or you are using it for the cheap price?

Shumaila: I like the both factors. It’s like a win-win situation for us. This product comes in with
very good taste with an affordable price.

Ahad: Do you think they should bring changes?

Shumaila: no I don’t really want any change. So far I’m very much satisfied with Viral Tea.
What else we can ask for.
Interview no 7

Mumtaz( housewife and resident of neelam colony)

Q1 which tea brand you use?

Mumtaz: Vital tea

Q2 How much you consume tea?

Mumtaz: twice a day

Q3 how much you purchase the tea?

Mumtaz: 1Kg per month

Q4 Are you satisfied with price?

Mumtaz: yes

Q5 why you use this brand?

Mumtaz: because its good in taste and prices are also fine

Q6 what changes do you want in this brand?

Mumtaz: we have been using this for long time and we are okay with price, quality and quantity
so i dont think any changes are required.

Interview no 8

Liaquat ali (cook)

Q1 Which tea brand you use?

Liaquat: vital tea

Q2 from where did you got to know about the vital tea?

Liaquat: i went to chai dabba and there i ordered tea which was really good in taste and was
kharak so i asked that dabba guy which tea is used he said vital so after that i have been using
vital now.

Q3 are you satisfied with the price?


Liaquat: yes satisfied with price and its quantity.

Q4 what changes you noticed the brand you were using and in vital?

liaquat: the brand i use to drink was also good but vital refreshes me and i feel active.

Q5 how much you consume?

Liaquat: i drink tea thrice a day

Q6 how much you purchase and on what basis?

Liaquat: i purchase Rs 100 packet weekly becaue sometimes i go to chai dabba and drink tea
there so 100 rupee packet is enough for me for a week.

Q7 what changes you want to in this brand?

Liaquat: they dont show much advertising on tv as compare to other brands so they should
advertise more on television and for me as i watching cooking channel more so i havent seen in
add during cooking show.

Interview no 9

Mussarat( house maid)

Q1 Which tea brand you use?

Mussarat: Vital

Q2 From where did you got to know about vital tea?

Mussarat: As i'm from punjab and there vital is used most in our colony so i have been using
vital for very long time.

Q3 How do you find its pricing with quantity and quality?

Mussarat: yes as compare to quantity and quality prices are good and they are available in sachet
too which is for Rs 10 so it becomes easy for us to purchase that even.

Q4 Why you use this brand not any other brand?

Mussarat: due to its strong and kharak quality the tea used in less quantity and because of this we
use this sachet for whole day in just 10 rupees so what else we can ask for.

Q5 How much you comsume tea per day?


Mussarat: i'm a tea lover and drink thrice or sometimes 4 cups a day because i get tired and after
this i feel active. we are persons in a house so twice a day is fixed.

Q6 How much you purchase?

Mussarat: we purchase per month in our neccessity products because me and my husband both
work so there are some products that we purchase on monthly basis, so i buy 1Kg and if there is
any shortage we then purchase sachets till we buy our grocesory.

Q7 Any changes you want in this brand?

Mussarat: No, i'm satisfied.

interview no 10

Zulfiqar( security guard residents in neelam colony)

Q1 which tea brand you use?

Zulfiqar: vital tea

Q2 From where did you heard about vital tea?

Zulfiqar: from neighbourhood

Q3 Why you use this brand?

Zulfiqar: i changed my brand because vital tea is reasonable and my family likes the taste of it.

Q4 How much you consume per day?

Zulfiqar: two times in a day.

Q5 How much you purchase?

Zulfiqar: i purchase vital tea jar which is for Rs 390 and that is enough for our family for 20-25
days.

Q6 Are you satisfied with prices?

Zulfiqar: yes because other brands are bit expensive and have same quality.

Q7 What changes would you like to have in this brand?

Zulfiqar: I think they are doing well.