Lipton case study
Brand fatigue
The Tea market in Pakistan is showing a consistent decline for last several years. The trend seems universal as the sub-continent is facing a similar situation. Consequently the tea cartel in India has been visible on mass media through a category campaign in an effort to stymie the persistent fall.
With a national market of 200,000 plus tons in 2012, the following broad break- up unveils the market dynamics.
Branded Tea
Un- branded Tea
115,000
90,000
Total
205,000 tons
Unilever and Tapal are the leading companies in this market with major shares of 37 &
39% respectively. Key brands dominate the market as follows:
Tapal -premium
Lipton
Supreme
Vital
27 %
18 %
17 %
9%
Unilever markets A-1 Karak- another brand in its tea portfolio- to attract the lower tier of the market. It makes the company the second largest in the tea category. However, increasing growth of Tapal and incessant fall of Lipton is being a matter of grave concern for the congomolarate. Despite repositioning several times – from Chai cha hi yai kaun see janaab to “Clear the mind” and “Regular Medium and strong”, they have yet to hit the right strings so far. The brand has the highest TOM and recall. Yet it’s no.2 in the list.
Lipton is a premium priced brand with over 20 % high retail price than Tapal and 8 % more than Supreme. It is the best quality tea in the market.
In 2007, Lipton experienced the first growth in 14 years after running a CP for full year offering a pack of sugar, Everyday tea whitener sachet, mug and Gerry’s 10 free hours of internet on a quarterly basis. The same however couldn’t invoke a similar response next year. Globally it’s positioned as a light, sophisticated tea for the young and upper segment of
SEC A and B+ (LSM 7+). Unilever Int’l insists on marketing it as a light tea while strong tea liking is dominant in this part of the world. They argue that Supreme and A-1 karak
are already catering to this segment and does not make any sense in following
The Tea market in Pakistan is showing a consistent decline for last several years. The trend seems universal as the sub-continent is facing a similar situation. Consequently the tea cartel in India has been visible on mass media through a category campaign in an effort to stymie the persistent fall.
With a national market of 200,000 plus tons in 2012, the following broad break- up unveils the market dynamics.
Branded Tea
Un- branded Tea
115,000
90,000
Total
205,000 tons
Unilever and Tapal are the leading companies in this market with major shares of 37 &
39% respectively. Key brands dominate the market as follows:
Tapal -premium
Lipton
Supreme
Vital
27 %
18 %
17 %
9%
Unilever markets A-1 Karak- another brand in its tea portfolio- to attract the lower tier of the market. It makes the company the second largest in the tea category. However, increasing growth of Tapal and incessant fall of Lipton is being a matter of grave concern for the congomolarate. Despite repositioning several times – from Chai cha hi yai kaun see janaab to “Clear the mind” and “Regular Medium and strong”, they have yet to hit the right strings so far. The brand has the highest TOM and recall. Yet it’s no.2 in the list.
Lipton is a premium priced brand with over 20 % high retail price than Tapal and 8 % more than Supreme. It is the best quality tea in the market.
In 2007, Lipton experienced the first growth in 14 years after running a CP for full year offering a pack of sugar, Everyday tea whitener sachet, mug and Gerry’s 10 free hours of internet on a quarterly basis. The same however couldn’t invoke a similar response next year. Globally it’s positioned as a light, sophisticated tea for the young and upper segment of
SEC A and B+ (LSM 7+). Unilever Int’l insists on marketing it as a light tea while strong tea liking is dominant in this part of the world. They argue that Supreme and A-1 karak
are already catering to this segment and does not make any sense in following