Term REPORT

Group Members
Atoof Zahid Gr-262042
Hasan Zahid Taqvi Gr-262002
Hasan Zafar Khan Gr-271005
Adrash Wasim Azizi Gr-262052

Class
MBA-I

Course
Consumer Behavior

Instructor
Mr. Luqman Hakim
 SUMMARY

In this report we have studied the buying decision process

and the evaluation of the Tapal Ice Tea. What is the
motivation behind selecting ice tea as a drink to quench your
thirst. What are it Pros and Cons. We have compared it with
its competitors in the market NESTLE and LIPTON. We
prepared a questionnaire and got it filled out from 15
different Ice Tea users and asked them why they use ICE TEA
and why they prefer Tapal as a Brand for ICE TEA. After
brainstorming we sought out some attributes that a product
lying in this category must have, then we compared the
three major brand names producing ICE TEA on the basis of
each attribute. The comparison was weighted as per there
importance for the product.
 BACKGROUND
In 1947, Tapal started out as a family concern under the
personal supervision of its founder, Mr. Adam Ali Tapal. From
this auspicious beginning, Tapal moved from success to
success introducing tea brands to suit every taste and
pocket, sold from its retail outlet in Jodia Bazar, Karachi. For
convenience of customers, tea distribution was initiated to
retail outlets around the city.

The company continued to grow under the management of

the founder's son, Mr. Faizullah A. Tapal. Today Tapal Tea is
managed by the founder's grandson, Mr. Aftab F. Tapal. A
well trained tea taster and tea connoisseur himself, Mr. Aftab
Tapal introduced new tea concepts and developed a wide
range of tea blends catering specifically to the tastes of
people throughout Pakistan. His progressive outlook resulted
in giving further strength to the foundation of quality laid by
his family.

Making a modest beginning over half a century back, today

Tapal has become the largest, 100% Pakistani owned Tea
Company in the country. It has modern tea blending and
packaging factories, warehouses equipped with state-of-the-
art equipment and a team of highly dynamic professionals
headed by Mr. Aftab Tapal himself. The factory is operated by
about 250 professional employees, producing various
popular and high quality brands of tea that are distributed
across the length and breadth of the country through a
network of distribution/institutions.
 FROM CUSTOMER POINT OF VIEW

Since 1947 tapal has recognize among local market of Pakistan as well as in
international market. By introducing many variety of tea products tapal has
cover a large amount of market around the world. Local market customers
has to say about this company that every one from older to younger people
drink it because tapal has many variety of tea product e.g. tapal danadar,
tapal family mixture, family green tea, tapal instant tea and the most popular
ice tea which is being use a lot by customers and has given a tuff
competition to other well establish brands i.e. Lipton ice tea, nes tea ice tea
and cola cola cold drink and Pepsi drink as well.
 TABLE OF CONTENT

 Company background

 Consumer decision process

 Questionnaires(ask from costumers)

 Product analysis

 Conclusion
 Acknowledgment:

First of all we would like to thank Almighty Allah who gave us the
opportunity and Potential to make this report.

A heartfelt thanks to our friends, acquaintances and university fellows who

agreed to help us so that we could bring the entire information about the
topic in these pages.

We also feel it important to acknowledge, recognition and thanks to our

respected teacher Mr.Luqman Hakim, whose teaching abilities and ideas
about this course, able us to make this proposal in a manner able way.
 Consumer Decision Process (CDP)

NEED IDENTIFICATION:
The process of product evaluation starts with the need identification.
There is a need to drink something as you are stressed and tired. You
need something to drink that can make you relaxed and at peace. This
is your problem and you want a solution to it. The solution has to be
communicated for the perceived need.

SEARCHING FOR INFORMATION:

You have various options available based on their characteristics like
water can quench your thirst. On the other hand you have Sodas and
cold drinks, these help you being energized but don’t impact even a
little in context of mental relaxation. Besides cold drinks are “cold” so
that’s a limit in itself. You want to drink something like TEA that is
Warm, that can relax you mentally and more importantly that is a taste
you want to have at the moment.
People get two types of influences that shape their search process for
the solution of their problem.

External\Environmental influences:

You see banners, advertisements on TV and other media sources, you

consult your family, friends, consider their opinion. That impacts on
your investment decision.

Internal factors:
Can be personal factors, your personal likes \ dislikes , can be internal
family, culture, social ambience. Tea has always had a cultural
significance for our country. A tradition from the very past. Tea has
been a favorite drinking alternative for the majority. It gives the
internal motivation and feel of attachment, a sense of belongingness in
terms of perceptions views and preferences amongst all.
INFORMATION PROCESSING:

The consumer is exposed to information resulting from

external\internal factors for search then he has to process that
information which involves a series of steps like:
You 1st get exposed to the particular brand which gets your attention in
the 2nd stage. Then you will try to comprehend the message of the
product when you get attracted. Then if the product suits your need
you mentally accept it as a selection. You try to retain that selection to
buy it when the right time comes.

PRE PURCHASE EVALUATION:

When you try to search for alternatives you have various options
available in warm drinks like Hot milk, Yakhni, Hot chocolate milk,
Coffee, Green tea. There are uncountable items but a consumer sees
his convenience as in Teas, people do use Tea bags but don’t prefer it
but the process requires physical maneuvering. You some times need
to squeeze the T-bag with the spoon and that’s the point where
“Instant Tea” powder comes in. It takes convenience of making tea off
the rudimentary way, eliminates the tortuous process of making tea
with tea bags. It is Fast, has zero hassles, easily portable and preserves
the tea freshness in the packing. Instant Tea is one of the fast moving
consumer goods that is made in bulk and sold in instants.

Global Business of the Tea market:

Walk into a supermarket in the U.S. and the heaviest tea packages
are instants. Supermarket tea sections devote permanent shelf space
to the instant category, an indication of stable market success. Millions
of consumers loyally drink this type of tea, usually cold. Instant tea
covers a wide product range, yet the trade has no uniform terminology
for the sub-segments. Instant tea can be called many things
(unprintably negative if spoken by connoisseurs), but superior
economy-of-scale and high demand are a combination that fuels profit
for both wholesale suppliers and retailers.
Most instant tea sells as mixes in cylindrical containers, unlike retail
boxes of teabags or loose-leaf, with the marketing focus on
convenience. In mixes, the tea is routinely a minor component, with
sugar the standard primary ingredient, plus flavorings, coloring agents,
anti-caking agents, and so on. The consumer defines the product as
tea. The typical consumption experience is a happy imbiber of the cold
beverage, “ice tea.”
The term “instant tea” is key to the successful marketing of the
product. However, trade executives generally use terms like “soluble”
or “powder” when discussing business among themselves. Even the
phrase “ice tea” is not uniform across regions. Other areas call the
product “iced tea,” and ice is often added to the sweetened and
flavored beverage.

From a modern global marketing perspective, instant tea is simple to

manipulate into brands, yet tricky to sell across borders. In the U.K.
(where the term “ice tea” is often used), instant tea consumers tend to
be more discerning, and the relatively expensive freeze-dried type
attracts loyal customers. Unilever’s Brooke Bond renews a focus on its
freeze-dried instant, PG Tips Pure Tea Granules, recently discontinuing
the secondary brand, D Instant Tea. Freeze drying is a costly
manufacturing process, retaining more attributes of the leaf in the
finished product. This upscale market sub-segment usually packages in
glass, highly unusual packaging material for tea that is not Ready-to-
Drink.

Regular instant tea mix is often packaged in cardboard-sided cylinders

with thin metallic tops and bottoms. Extensive variations exist within
the instant category, exemplified by Lipton fielding “Diet Lemon” and
“Diet Decaffeinated Lemon.” Both of these Unilever teas are labeled
“sugar-free,” containing instead the famously trademarked NutraSweet
artificial sweetener. These two lemon instants list only 5 calories per
serving and display the world-wide recognized slogan, “The Brisk Tea.”
The front label reads in red ink, “Natural Flavor,” with the additional
statement on the side, “No Artificial Flavors, Colors, or Preservatives.”
Whatever the name of the instant tea, maximal profit potential is real,
because the ingredients are among the lowest-cost consumed
substances on the planet. While the tea itself is a low-cost type, the
other ingredients are relatively cheap, too, with sugar usually in global
glut. In fact, the primary current discussion among instant tea
executives is the cost of sugar (often their main component) and the
cost of mixing the sugar to the soluble tea.

Tea Mar ket in India:

Tata of India claims the largest instant tea factory in Asia, at Munnar, in
the southern state of Kerala. In north India, Goodricke’s instant tea
factory operates with the largest customized modern components, as
the accompanying graphics depict. Goodricke, under managing
director K. David, is the largest source of medical charity in this
factory’s district. Goodricke has a history of donating expensive
medical equipment, such as one poor Darjeeling facility’s only X-ray
machine.
The traditional leading per-capita tea consuming regions, like Asia,
remain less likely to drink instant, so the product is oriented to export
globalization. The U.S. alone receives approximately 70% of India’s
exported instant, with the remaining 30% going to 22 other nations.
The global situation is more complex than this analysis first indicates.
Asia is the most populous region on earth, and as more Asians attain
an upper-middle-class hectic lifestyle, the need for convenience in
beverage preparation increases. Hindustan Lever Limited (HLL) already
reaches for greater instant tea market share in India via their 1
kilogram foodservice packs, in the Red Label line under the Brooke
Bond brand, owned by Unilever Bestfoods.
HLL packaging aims to upgrade the giant nation’s approach to instant-
tea foodservice, helping to compete against coffee and sodas. The HLL
kilopacks’ “best before” time-frames range from three to six months. It
maintains laudable goals for the quality of instant-tea consumption
within a subcontinent with severe infrastructure obstacles.
HLL carries a huge range of goods, remaining a Unilever Bestfoods top
profit center. Globally, the only rival of Unilever Bestfoods is Nestlé.
The trademarked name “Nestea” represents a powerful brand known
to many millions of consumers. In the entire beverage sector, Nestlé is
historically the world’s leader at innovating instant products, spanning
milk, coffee and tea.
Nestlé markets one of the heaviest U.S. retail tea packages, a 95.4
ounce container of instant. Another tea company, 4C, vouches “more
tea taste” for its instant, a nicely subjective claim. For objective
quantity at retail, Nestlé remains the heavyweight.
UNILEVER and LIPTON:

Unilever is the largest, most vertically integrated tea company

involved in the global instant category, operating or owning, under
different corporate names, expansive lands, factories and complexes.
Instant tea is a highly international type, as defined by percent
exported and re-exported. Lipton’s basic sugared variety states on the
label, “distributed by © Lipton, Englewood Cliffs, NJ 07632 Made in
Canada.” No tea grows in either Englewood or Canada. The label is
printed correctly.
he first listed ingredient of Lipton’s instant product is sugar. The
complete label listing states: “sugar, citric acid (provides tartness),
instant tea, silicon dioxide (prevents caking), natural lemon flavor,
artificial color (red #40).” Millions of consumers want their instant
drink sweetened, lemon-flavored, a bit tart and looking somewhat like
tea. Joe Simrany, long-time president of the Tea Association and Tea
Council of the USA, superbly sums up instant tea’s appeal as a “total
product.” The simple purchase of a low-cost canister leads to
consumption of a beverage that provides a satisfying, quick, integral
experience. This perception of conveniently speedy fulfillment is
promoted by millions and millions of advertising dollars.
Lipton’s list of ingredients may seem long, but the product components are standard
for the instant tea category. In fact, other companies may add caramel coloring,
malts, high fructose corn syrup (HFCS) and so on. Behind all these constituent
industries, from sugar companies to trucking enterprises, the tea plantations and
exporting nations can also reap benefits. New data from Sri Lankan officials shows a
record-breaking 28% increase in instant tea export tonnage over the previous year.

Nestle:

Current developments in the instant trade emphasize advances in

convenience. Instant tea is evolving into a temporal realm where
“instant” occurs at an even faster rate, following the speed of society.
Nestlé introduces a new product called Nestea Iced Tea Liquid
Concentrate with the slogan, “great-tasting tea, in seconds.” This new
tea type should not be confused with ready-to-drink (RTD) tea,
although the concentrate is sold retail and can be carried outside the
home or office for consumption anywhere. Previous tea concentrates or
extracts were basically for institutional or foodservice use. An
advantage of the retail-oriented concentrate is avoidance of the
burdensome distribution logistics of RTD tea, the most expensive type
to transport, because the water component is bulky and heavy. RTD,
which almost always is manufactured from types of instant tea, is sold
to consumers with water already in the bottle at consumption strength.
Instant tea is a paradox, a counterpoint to elite premium teas, such as
organic. Instant tea generally sells in the U.S. tasting sweet, looking
brown and containing caffeine. The product does get millions of
consumers to notice the word “tea” who otherwise would never
consider the beverage. (Outside the U.S., instant tea mixes often sell
as a different color, white rather than brown, the result of added “dairy
whitener.”)

THE FUTURE: T
The future for instant looks stable. Combining total-product marketing
with convenience does fit the youth demographic, feared by the trade
as increasingly preferring colas. Instant tea is unusually flexible, easy
to flavor or sweeten for specific market segments, using the same tea
base. Good minds are planning now. In the U.S., Lipton wisely
promoted Christine Durkin to manager of product innovation. The tea
trade would do well to create more such posts. For nations-of-origin,
the diversification in instant tea represents progress. Sri Lanka now
seems generally the quickest to respond to market changes in the
West. India’s export trends for instant are ambiguous, but remain
outweighing Ceylon. Tea Board of India, under Chairman N. K. Das, is
pushing value-added exports. Instant tea is a value-added type of tea,
in terms of retail packaging and certain manufacturing infrastructure.
India’s new Special Economic Zone system is building efficient, high-
tech, low-labor-cost ports, needed to compete in export globalization
as China enters the WTO and Vietnam’s harvest redoubles as planned.
In yet another paradox, the category “instant” conveys Western values
that producer nations’ politicians decry when seeking nationalistic,
ideological voter support. These same producer-nation leaders sing a
separate song when on tour in the West, seeking infrastructure
development, foreign exchange stability, foreign investment and
overseas markets. Asian leaders hold meetings on export globalization
more often outside Asia than within.

PURCHASE DECISION:
Now considering tea, there are many brands like Tapal, Tetley, Lipton,
Brook Bond etc. but in Pakistan instant tea is available in Tapal and
Lipton, the product didn’t get much marketed in Pakistan for various
reasons but now it’s growing in consumer following gradually through
out the various regions in Pakistan. We chose this product to extract
the significance of time balanced quality taste, convenience and purity.
CONSUMPTION:

In today’s society we move much faster and during the winter we still
want to have our iced tea. Sure you could brew ten to twelve bags in
water and place it in a jug and add sugar, we do that every once in a
while when you feel like you have extra time. But most of the time
people one may use the Instant Lemon Flavored Tea to make their Ice
tea.
People see their convenience, and factually instant tea is very easy to
make, All you do is take the same jug that you would use, add the
powdered pre concentrated tea mix, stir the contents together and
what do you know you have iced tea within a few minutes. Easy as it
can be and in reality it tastes the same as the brewed tea just very
easy to make and enjoy. Some people like the lemon added flavor to
the tea. You don’t have to add sugar to sweeten it up. Instant tea helps
you when you have guests at odd timings or when you don’t have
enough milk or sugar, this product saves the hassle of boiling water or
milk for tea it has pre concentrated milk and sugar which eases up the
process a lot. It’s more like you don’t have to do any thing at all!

POST PURCHASE EVALUATION:

After the consumer has used the product he will evaluate it’s benefits
based on the experiences he had with it so the benefits and costs are
as follows:

The Pros:
Convenient: Very easy to make whether day or night, no hassles in
making like heating milk or Tea grains (patti) .
Something new and trendy: Something totally out of the box,
catering to modern needs like uniqueness, out of the conventional tea
making ways, flavored, fresh and appealing.

Time saving: You literally don’t have to do any thing at all just stir the
powder mix in water and there you have it ! instant tea Instantly !
Effective, Tasty, Quick.

Different Presentibility: This plays a prominent role when you have

guests you can only put water in cups with the Tea powder in a
separate bowl. That will give it an innovative cool look for the tea
lovers.

The Cons:
Lightness: The tea made from instant powder is not strong compared
to the tea bags or tea grains.

Price: The sachet for instant tea is sold for around 15Rs. So it’s a bit
expensive for people who want to make 10-15 cups at a time.

Linear Approach: People here are dogmatic, they have a very linear
way of living. Many can’t easily grasp the concept because it is
something new, something different. In Pakistan people are tea lovers
because it has an intimate desi feel to it with the cultural heritage and
also due to our social influences but even after that people prefer the
conventional ways of doing things. Instant tea is something that does
not appeal to many causes of the internal factors, their motivation
stays with those conventional options.

DISINVESTMENT:
Even the disinvestment process is very handy. You just have to easily
dispose the dry wrapper. You don’t have to pester about disposing the
tea bags or tea grains therefore the cleaning process is very easy and
very environment friendly.
 Tapal brings you the alleviation of
drinking tea preserving the strength and essence of emotional
attachment to the tea with the enhancements of modern tweaks that
adds up to the refreshing experience. Some thing new , yet something
original.
 Conclusion:

These were the various steps a consumer takes before and after
consuming the product. If we can study, appropriately, the consumer
needs we can influence them effectively with the right kind of product
that will prove a better solution for their needs. We can not initiatively
create a problem, infact we can only give awareness to them about the
problem and a solution that will ease up their lives with satisfaction
that is only possible after proper study of consumer’s behavior his
problems with the identification of needs, wants and their respective
solution.