1. Evaluate the Dominant Economic Traits of the Tea Industry in Pakistan.
2. Apply the Five Forces Model of Competition to analyze the overall 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 affect the Industry in the future?
4. Create an EFAS for Tapal.
ANSWER NO 1
Introduction:
In Pakistan, tea is popular all over the country and holds an integral significance in local culture. It is one of the most consumed beverages in Pakistani cuisine 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 SUMMARY
Tea 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 item of common man and is an integral part of our culture and heritage. Due to these causes Pakistan consumes an substantial quantity of tea. Tea is Pakistan's favorite hot beverage. Although efforts have been made to cultivate tea in the mountainous areas, the projects could not achieve the desired results.
At present there are two kinds of tea available in the market: branded and unbranded (loose) tea, the ratio is (55:45) respectively. Therefore, the importers are also of two types, though both import tea from the same countries. Bulk importers sell tea to retailers in loose form, while the second category of bulk importers sell packaged tea under brand names.
MARKET SHARE PICTURE
Unilever enjoys leadership with approximately 54% of Pakistan's tea market. Tapal stands out as the major competitor for Unilever with 28% share. Tetley tea, a joint venture b/w Lakson Group and Tata tea of India, was