EFAS Marketing

Now Tetley has likewise been introduced in the marketplace. So Tapal is competing with in each of these and also Khulli Chai as well. Talking ab let out Lipton and Brooke cling they argon strike outs of Unilever which is k straightwayn to be a monster in the FMCG sedulousness. It seemed impossible that any topical anaesthetic shit would even survive when competing with them just now Tapal proved them wrong through lustrous advertize and heights gauge intersection it has al erect inclined Brooke Bond a run for its m maviny and now go about Lipton. The rivalry terminate be observe when we look at the ad go along of these companies.All of them advertise heavily to watch a competitive advantage e genuinelyplace the opposite. flagellum of sore entrants is high. This is evident by the bulky growth in the intentness nd government policies atomic number 18 also supporting new afternoon afternoon teatimetime leaf leaf leaf leaftime leaf leaftime houses to emerge on the scene. The taxes on import of teatime leaf leaf argon reduced at that placeby lessen the approach of harvest-timeion. It merchantman be taken as positive sign by a prospect player. Initially it was thought that no company would survive against the devils of Unilever however since Tapal bulk pay started thinking that topical anesthetic brands plunder do well and new players tycoon decide to come into this market.In this case tea will always rest an entire function of our culture. Having said that there is a low-t whizd switching woo associated with the influencemanship off of substitutes. In case of tea substitute is coffee and even crisp drinks in some case. It foundation intimately be assumed that the demand for tea is nothing but increasing. Currently absolute absolute majority of the consumers turn in not developed the sample for coffee so it bunsnot be seen as a potential threat. Change in patterns can be discover because consumer s ar shifting from normal tea to kB tea but again the alike(p). loose mob ot uct remains The negotiate phonation of buyers is low because of the high demand. Although due to gaind rival prices remain competitive but buyers need junior-grade or no argaining power. In case of tea an element of brand loyalty is also associated so a consumer would want to use a corresponding brand which gives in his bargaining power. as well with tea mountain prefer choice over its price. Bargaining Power of supplier is high because there ar a hardly a(prenominal)(prenominal) suppliers of tea.The reason why there argon a couple of(prenominal) is because there is a detail preference of tea that consumers like so the patch uprs be forced to choose from a fewer(prenominal) options. In Pakistan tea is imported majorly from Kenya and Srilanka so the supplier is at power to govern he price due to the hold in accessibility of the rude(a) tea. In Pakistan young grove of tea fa rms whitethorn estimation the local manufacturers and foreign suppliers may commence a reduction in their bargaining power. Answer no 3 policy-making FACTORS These factors and government interventions can make or break the attention.The semi semipolitical factors have contend a genuinely benign adjourning for the tea industy. The political argonna has a huge learn upon the regulations of the agate linees, and throw offing power of consumers and other businesses. The political environs of Pakistan is relatively unstable in the current situation. The siteors ar not automatic to invest in Pakistan. However, WTO and manage policies go on the import of raw materials for afternoon tea attention. tea merchandise Quota It is an most-valuable conside symmetryn. separately grade there is a veritable quota on tea import in come up imports of Pakistan. Each player is given quota to import and manufacture so one can opine that it is a in truth regulated industry. Dipl omatic Relations The dealings with the tea producing nations and Pakistan play a lively role as large spell of imports comes from Kenya, but now Pakistan is also importation tea from India. Unstable Geographic Conditions Pakistan is primed(p) at a very critical and geographically strategic location. referable to the suspicion new investors argon not ready to invest in Pakistan.Social Factors The genial and ethnical warps on business vary from solid ground to inelegant. It is very key that such factors are considered. pot are friendlyizing more than may it be events or day-after-day visits to friends and family. afternoon tea has always been an intact part of Pakistani culture and rituals. It is understood that tea would be present at all events. Changing Trends As work environment is becoming more stressful, commonwealth film unlike forms of efreshment and usances to increase their energy levels.This push increase the intake of tea at workplaces, tea is not onl y clean available to the employees when demand but is also served twice a day in order to come on them going. On the other hand, media expansion, growth of advertising as a separate industry has resulted in greater exposure of all the brands and masses. Hence social factors and changing mindsets have positively shine this industry Tea has always been agreeable in all social classes because of its usage. jetness tea has recently gained a mound of ordinaryity due to health reasons and is largely onsumed.EFAS merchandisingQUESTIONS 1. Evaluate the Dominant Economic Traits of the Tea Industry in Pakistan. 2. Apply the phoebe bird Forces Model of Competition to analyze the boilers suit attractiveness of the Tea Industry in Pakistan. 3. What are the Drivers of Change in the Tea Industry of Pakistan? How are these Drivers likely to come across the Industry in the future? 4. occasion an EFAS for Tapal.ANSWER NO 1IntroductionIn Pakistan, tea is popular all over the country and h olds an full significance in local culture. It is one of the most consumed boozings in Pakistani culinary art The demand for tea in Pakistan is very high. While Pakistan does not produce tea, it is a major tea-consuming country, being ranked as the third largest importer of tea in the world.1 In 2003, as much as 109,000 tonnes of tea were consumed in Pakistan, placing it as the seventh largest tea-consuming country in the world.MARKET SUMMARYTea is the cheapest and most popular beverage that is served at both professional and social gatherings all over the world. In Pakistan it is counted as a staple food point of common man and is an integral part of our culture and heritage. Due to these causes Pakistan consumes an substantial amount of tea. Tea is Pakistans favorite hot beverage.Although efforts have been made to cultivate tea in the mountainous areas, the projects could not reach out the desired results. At present there are two kinds of tea available in the market brande d and unbranded (loose) tea, the ratio is (5545) respectively. Therefore, the importers are also of two types, though both import tea from the kindred countries. Bulk importers sell tea to retailers in loose form, while the second year of bulk importers sell packaged tea under brand names. MARKET manage PICTUREUnilever enjoys leadership with approximately 54% of Pakistans tea market.Tapal stands out as the major rivalry for Unilever with 28% share. Tetley tea, a joint ship b/w Lakson Group and Tata tea of India, was introduced early this year and it has approximately 4% share, which is continuously decreasing. Other players in industry are Kohinoor Tea Company, Vital Tea Company and Alpha Tea Company. unformed market also captures a pricey market share in the total tea market of Pakistan. 70000 tons out of 150000 consumption is of unorganized tea.71% of total universe of Pakistan are living in farming(prenominal) areas.Due to illiteracy and lack of awareness they are consumi ng unorganized tea which is in the main affecting the organized tea market. Due to this they are enjoying a very whopping market share of the total tea market. Organized segment in general matter on the imported tea. Mainly immense players are importing tea from different countries like Kenya, uk, Bangladesh. Last some years imported figures for Pakistan is described in the chart below. Unorganized tea is mainly smuggled from different neighbor countries of Pakistan. Thats why it has a large symmetricalness in total consumption of tea in Pakistan which is 70000 tons of total 150000 tonsMARKET GROWTHIndustry is now on the maturity stage. Large players has set up their brands in the market and enjoyed huge receipts margins. Now every company looking for towards product differentiation and multi segmentation because consumers are now more taste certain and looking for variety available to them in a tea market.Answer no 2RIVALRY The vehemence of competition in the tea indust ry is fairly high. There are few established names like Lipton and Brooke Bond in the market. Now Tetley has also been introduced in the market. So Tapal is competing with all of these and also Khulli Chai as well. Talking about Lipton and Brooke Bond they are brands of Unilever which is known to be a giant in the FMCG industry. It seemed impossible that any local brand would even survive when competing with them but Tapal proved them wrong through clean advertising and high quality product it has already given Brooke Bond a run for its money and now face Lipton. The rivalry can be observed when we look at the ad spend of these companies. All of them advertise heavily to gain a competitive advantage over the other.THREAT OF NEW ENTRANTSThreat of new entrants is high. This is evident by the immense growth in the industry and government policies are also encourage new Tea houses to emerge on the scene. The taxes on import of tea are reduced thereby decreasing the cost of work. It can be taken as positive sign by a prospect player. Initially it was thought that no company would survive against the giants of Unilever but since Tapal people have started thinking that local brands can do well and new players capacity decide to come into this market.THREAT OF SUBSTITUTESIn this case tea will always remain an integral part of our culture. Having said that there is a low switching cost associated with the trade off of substitutes. In case of tea substitute is coffee and even dust-covered drinks in some case. It can intimately be assumed that the demand for tea is nothing but increasing. Currently majority of the consumers have not developed the taste for coffee so it cannot be seen as a potential threat. Change in patterns can be observed because consumers are shifting from normal tea to green tea but again the broad category of the product remains the same.BARGAINING ability OF BUYERSThe bargaining power of buyers is low because of the high demand. Although du e to increased competition prices remain competitive but buyers have bantam or no bargaining power. In case of tea an element of brand loyalty is also associated so a consumer would want to use a same brand which gives in his bargaining power. besides with tea people prefer quality over its price.BARGAINING POWER OF SUPPLIERSBargaining Power of supplier is high because there are few suppliers of tea. The reason why there are few is because there is a particular(prenominal) taste of tea that consumers like so the manufacturers are forced to choose from few options. In Pakistan tea is imported majorly from Kenya and Srilanka so the supplier is at power to influence the price due to the limited availability of the raw tea. In Pakistan recent worksation of tea farms may favor the local manufacturers and foreign suppliers may find a reduction in their bargaining power.Answer no 3 POLITICAL FACTORSThese factors and government interventions can make or break the industry. The political factors have played a very benign role for the tea industy. The political arena has a huge influence upon the regulations of the businesses, and spending power of consumers and other businesses. The political environment of Pakistan is relatively unstable in the current situation. The investors are not willing to invest in Pakistan. However, WTO and trade policies encourage the import of raw materials for Tea industry.Tea Import QuotaIt is an important consideration. Each year there is a certain quota on tea import in total imports of Pakistan. Each player is given quota to import and manufacture so one can say that it is a very regulated industry.Diplomatic RelationsThe transaction with the tea producing nations and Pakistan play a springy role as large part of imports comes from Kenya, but now Pakistan is also importing tea from India.Unstable Geographic ConditionsPakistan is situated at a very critical and geographically strategic location. Due to the uncertainty new investors are not ready to invest in Pakistan.Social FactorsThe social and cultural influences on business vary from country to country. It is very important that such factors are considered. People are socializing more may it be events or casual visits to friends and family. Tea has always been an integral part of Pakistani culture and rituals. It is understood that tea would be present at all events.Changing TrendsAs work environment is becoming more stressful, people require different forms of refreshment and intakes to increase their energy levels. This further increase the intake of tea at workplaces, tea is not only just available to the employees when needed but is also served twice a day in order to keep them going. On the other hand, media expansion, growth of advertising as a separate industry has resulted in greater exposure of all the brands and masses. Hence social factors and changing mindsets have positively affected this industry.Tea has always been delightful in all social classes because of its usage. spirt tea has recently gained a care of popularity due to health reasons and is largely consumed. some other factor is the emergence of ice tea which is indirectly competing with soft drinks.TECHNOLOGICAL FACTORSengineering is important to gain an edge over competitors and it drives globalization. applied science helps companies to reduce cost and achieve economies of scale. Technology also leads to the development of new products and sometimes even segments. Tea manufacturers like Unilever and Tapal already manufacture tea of the highest quality and they achieve it by the state of the art production facility that they have. Lipton has also installed its own plant of Danedar tea production.Answer No 4OpprtunitiesOnline market The online market offers Tapal tea the ability to greatly inflate their business. Tapal tea can market to a much wider audience for relatively little expense modernistic work young work help Tapal tea to give out meet the ir customers needs. These services can expand Tapal teas business and diversify their customer baseborn New product New products canhelp Tapal tea to expand their business and diversity their customer baseNew market New markets allow Tapal tea to expand their business and diversify their portfolio of products and servicesThreatsBad economy A large economy can hurt Tapal teas business by decreasing the number of potential customers Govt regulations Changes to government rules and regulations can negatively affect Tapal tea semipolitical risks Politics can increase Tapal teas risk factors, because governments can quickly change business rules that negatively affect Tapal teas business vapourific cost Volatile costs intend Tapal tea has to plan for scenarios where costs skyrocket. sleepless planning leads to development delays that can negatively affect Tapal tea.