PLANNING REPORT ON TAPAL
TABLE OF CONTENTS
Introducton of The Topic.................................................................................................... 9
Intorduction of the company.............................................................................................. 10
Company Mangement........................................................................................................ 11
Stretgetic Planning Process............................................................................................... 15
Swot Analysis
Buble tea............................................................................................................................29
ACKNOWLEDGEMENT
We would like to thank Proff. M.A Khan for giving us the opportunity of working on this report on Tapal. This report has enabled us to apply all that we studied in class and gave us the chance to enhance our knowledge.
We are also thankful to Mr.Rehman Afzal, (Brand Manager, Danedar, Tapal Tea Pvt Ltd, Pakistan ) and Ms.Hafsa Farooq, (Assistant Brand Manager, Ice tea, Tapal Tea Pvt. Ltd, Pakistan ) who provided us with priceless information required for the making of this report.
Introducton of The Topic
Planning
Ø Plans are the conscious, systematic process of decisions about goals and activities that an individual, work unit, or organization will pursue in the future.
Ø A decision process in which you decide what to do and how to do it.
Ø Various types of plans include single-use, standing, and contingency plans .
The Planning Process
Basic planning process
Step one: Situational analysis
Ø A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
Ø Study past and current conditions, and forecast future trends.
Ø Focuses on internal forces and influences from the external environment.
Step two: Alternative goals and plans
Ø Generate alternative future goals and plans to achieve them
Goals - targets or ends the manager wants to reach
Ø should be specific, challenging, and realistic
Plans - the actions or means intended to achieve goals
Ø Identify alternative actions, needed resources, and potential obstacles
Single use plans - designed to achieve goals that are unlikely to be repeated in the future
Standing plans - designed to achieve an enduring set of goals
Contingency plans - actions to be taken when initial plans fail
Step three: Goal and plan evaluation
Ø Evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan.
Ø Prioritize those goals.
Ø Consider the implications of alternative plans.
Step four: Goal and plan selection
Ø Identify the priorities and trade-offs among goals and plans.
Ø leads to a written set of goals and plans that are appropriate and feasible within a predicted set of circumstances.
Step five: Implementation
Ø Plans are useless unless they are implemented properly
Ø Managers must understand the plan, have the necessary resources, and be motivated to implement it
Step six: Monitor and control
Ø Must continually monitor the actual performance in relation to the goals and plans
Ø Develop control systems to take corrective action
Levels Of Planning
Strategic planning
Ø Decisions of senior executives about the organization’s long-term goals and strategies.
Ø Has an external orientation.
Ø Covers major portions of the organization.
Strategic goals - major targets that relate to the long-term survival, value, and growth of the organization
Strategy - pattern of actions and resource allocations designed to achieve the goals of the organization
Ø Matches the skills and resources of the organization to the opportunities found in the external environment
Ø Tactical planning
Ø Translates broad strategic goals and plans into specific goals and plans that are relevant to a definite portion of the organization
Ø Focuses on the major actions that a unit must take to fulfill its part of the strategic plan
Ø Operational planning
Ø Identifies the specific procedures and processes required at lower levels of the organization
Ø Plans intended for short periods of time and focus on routine tasks
Hierarchy of Goals and Plans
Example of a Strategy Map
Strategic Planning
Strategic management
Ø A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies
Ø Both large and small organizations benefit from the planning framework discussed next
The Strategic Management Process
Step 1: Establishment of mission, vision, and goals
Mission - basic purpose and values of the organization
Ø Defines the scope of operations
Ø States the organization’s reason to exist
Ø Written in terms of the general clients served by the organization
Strategic vision - provides a perspective on where the company is headed and what the organization can become
Ø Moves beyond the mission statement
Strategic goals - evolve from the mission and vision of the organization
Ø Need to be communicated to everyone who has contact with the organization
Step 2: Analysis of external opportunities and threats
Ø Successful strategic management depends on an accurate and thorough evaluation of the environment
Ø stakeholders - Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies
Ø Forecasting future trends is critical
Ø Must develop a clear sense of market opportunities
Ø Identify potential threats as well
Ø Difference between an opportunity and threat may depend on how a company positions itself strategically
Step 3: Analysis of internal strengths and weaknesses
Ø Resources - Inputs to production that can be accumulated over time to enhance the performance of the firm
Ø May be tangible or intangible assets
Ø Provide a competitive advantage if:
Ø The resource is instrumental in creating customer value
Ø The resource is rare and not equally available from other sources
Ø Resource is difficult to imitate
Ø Resource is well organized
Ø Core competence - Something a company does especially well relative to its competitors
Ø Usually a set of skills or expertise in some activity
Benchmarking - Process of assessing how well one company’s basic functions and skills compare to those of other companies,goal is to thoroughly understand the “best practices” of other firmsonly permits imitating rather than surpassing competitors
Step 4: SWOT (comparison of strengths, weaknesses, opportunities, and threats)
Ø Helps summarize the major facts and forecasts derived from external and internal analyses
Ø Used as the basis for identifying primary and secondary strategic issues confronting the organization
Step 5: Strategy implementation
Ø Organizations adopting a comprehensive view of implementation
Ø Organizations applying a participative strategic management process to implementation
Step 6: Strategic control
Ø Designed to support managers in evaluating the organization’s progress with its strategy
Ø When discrepancies are identified, corrective action is taken
Ø Encourage efficient operations that are consistent with the plan
Ø Typically involve budgets to monitor and control financial expenditures
strategic budget - Used to create and maintain long-term effectiveness
operational budget - Tightly monitored to achieve short-term efficiency
“We have choice the Tapal as a company, how planning is done inTapal,considering planning topic which is given above”
INTRODUCTION
Tea is one of the most popular drinks in the entire world and the most widely consumed beverage in South Asia . The demand for tea in Pakistan
Tapal is a well known name in Pakistan
The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family. Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal. The company continued to grow under the management of the founder's son, Faizullah A. Tapal. . Currently it is managed by the founder’s grandson, Aftab F. Tapal who has continued giving further strength to the foundations 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 Aftab Tapal himself. He was the first to introduce soft packs in the country. He developed an entirely new brand and category- Tapal’s Family Mixture (the mixture of tea & dust). Mr. Aftab Tapal was the first to invent the highly successful brand Danedar Leaf Blend. In December 1997, Tapal Tea became the first Pakistani Tea Company to earn the ISO-9001 certification: a symbol of the highest international quality standards. Again in December 2000, Tapal acquired the ISO-9001: 2000 certification, making it one of the first few companies in the world to achieve this milestone. In addition to the standard requirements, the ISO-9001: 2000 certification system includes requirements for environment improvement, concepts of TQM (continuous improvement) with major emphasis on consumer requirements and satisfaction.
Tapal’s success has left many astounded. No magic formula however, lies behind its growth other than hard work, dedication and of course unique blends and better quality.
Company Management
Aftab Tapal
CEO, Tapal Tea (Pvt) Ltd.
CEO, Tapal Tea (Pvt) Ltd.
He introduced professional management and unique production ideas to the business. Being one of the few professional tea tasters in the country, and a tea connoisseur himself, his progressive outlook has given further strength to the foundation of quality laid by his family, and has bought the Tapal company to newer and higher levels of success.
Evolving and innovating its way through its near 60 years history, Tapal is presently the largest, 100% Pakistani owned Tea Company in the country. Its has set new standards for modern tea blending and packaging factories, warehouses equipped with state-of-the-art equipment and a team of highly dynamic professionals headed by Aftab Tapal himself. He has established three production facilities in Pakistan Karachi
Strategic Planning Process In Tapal
First Step :
Mission, Vision, Goals
MISSION
To provide a value added service to our customers with quality, reliable, and world-class service. Customer satisfaction is our number one priority.
VISION
- To provide value and quality to our consumers, our aim is constantly to provide world class service for our customers, deliver value for our products and make Tapal a great place to work for our employees. We aim to have a reputation for innovative thinking in the areas that matter to our customers
· To become a global brand.
· To be an innovative, marketing and research oriented company.
Goals
- To transform our competencies into the best advantage for our clients.
- To offer quality services with integrity, expertise and professionalism to enhances our client's operation.
· To offer personalized services according to the clients need.
Second Step:
Analysis of external opportunities and threats
BUSINESS SCOPE
The Business We are in?
We are in the market of Hot Beverages and specialize in the area of Black Tea. We desire a high level of customer satisfaction and unflinching brand loyalty through commitment to quality and constant innovation.
Who are our Customers?
We have a diversified customer base ranging from urban to rural areas including various institutions. Hence, Tapal’s target market mainly consists of young adults and adults belonging to high, middle and lower income groups.
EXTERNAL ANALYSIS
A unique combination of high- grown Kenya tea leaves and dust, that gives a refreshing aroma of leaf and strong taste of dust all together in one cup. Tapal is a family name and calls attention to tea as an integral part of our lives whether it is day or night or any time as a source of refresh ness and rejoice ness.
Following are the products of Tapal:
Chenek 
Mezban Super Dust
Tapal Special Teabags 
Gulahar Green Tea 
Family Mixture 
Danedar Leaf Blend
Jasmine Green Tea 
Safari 
Special Round Teabags 
Tezdum
Tapal ice teaPRODUCT POSITION IN THEIR LIFE CYCLE
Introduction Growth Maturity Decline
Implications
The industry is in the maturity stage, so competing firms in order to gain market share, constantly innovate and frequently use price-cutting. They also increase communication channels like advertising and sales promotion to entice brand switch. Green tea has is in the growth stage and we believe that there is a potential for growth given that green tea provides health advantage. Thus this property will attract health conscious people. Ice tea is in its introductory stage, it was recently test marketed in Karachi which resulted in a successful response in future it will be coming up with new flavors and has a potential to gain a large market share as soon it is launched nationally
PRODUCT LIFE CYCLE STAGES
Tea | Introductory | Growth | Maturity | Decline |
Dust | X | |||
Leaf | X | |||
Mixture | X | |||
Green Tea | X | |||
Ice Tea | X |
COMPETITOR’S ANALYSIS
The tea industry is divided into two segments. They are:
Ø Branded Tea
Ø Unbranded Tea
Tapal is facing a tough competition from both the segments as the unbranded tea has almost half the share of the total tea industry. The current tea imports are 140,000 tons.
The major competitor for Tapal is Lipton especially as the sales competition from this brand in the tea industry is getting cut throat. Tapal is a clear market follower in all over Pakistan as it caters to all the areas rural and urban alike. Lipton Yellow Label is definitely a market leader claiming that it is a premium top of the line product with “a sign of good taste”. But Tapal is the market follower in branded tea.
However Tapal has countered this competition strategically by creating positioning and brand pull in customers mind so that they have a separate identity of their own. Catchy slogans like “JAISE CHAHO JEEO” for Tapal Danedar, focusing on the free and radiant spirits of the youth which has also been tagged along with “ZINDAGI MAIN BHARO NAYA RANG”. “MUKAMAL GHAR MUKAMAL CHAI” is the slogan for Family Mixture, which positions on the completeness and togetherness of the family and position Tapal as an integral part of the Family.
Step 4: SWOT (comparison of strengths, weaknesses, opportunities, and threats)
SWOT ANALYSIS OF TAPAL
Strengths
Ø Continuous innovation for increased customer value, for example:
o First to introduce soft pack in the country,
o The pioneers of introducing Jasmine Green Tea in Pakistan .
o The only company to introduce round-tea bags in Pakistan .
o The only company to develop an entirely new blend and category (the mixture of leaf & dust).
Ø Tapal is one company that is catering to the needs of all segments of the society.
Ø Export
Ø Tea cultivation
Ø Strong R&D team
Ø Brand sponsored shows such as musical concerts and cricket tournaments.
Ø Good brand awareness in the local target market.
Weaknesses
Ø It is a major hurdle for Tapal to position its tea abroad in the minds of the consumers and encourage them to indulge in brand switching.
Ø Have to import some of their products from other countries, which increase their costs.
Ø Most of the sales are on cash, problem for the distributor then they can switch to competitors.
Ø Tight quality control procedures lead to higher costs and its time consuming and often discontent the suppliers.
Opportunities
Ø In the long run there is going to be a lucrative market for Ice-Tea and flavored tea.
Ø The market growth of the tea-bag market because of it being easy to use.
Ø Customers are more attracted towards strong taste and quality of tea offered by tea providers.
Ø There are markets in Punjab , N.W.F.P and Balochistan, which are not as yet explored by competition.
Ø Duty free tea import from Sri Lanka and Bangladesh and India .
Ø Green tea market is growing.
Threats
Ø Strong marketing campaigns of Unilever makes it extremely difficult for Tapal to counter-attack because of low budgets.
Ø Unilever as a more established brand name than Tapal world wide.
Ø High import duties encourage smugglers of tea to grow.
Ø The unstable rules and regulation of the government hinders the tea companies.
Ø Due to climatic conditions, when the weather of Pakistan is mostly hot; consumers would prefer soft drinks over tea.
Step 5 & 6: Strategy implementation & Strategic control
We will be using the Boston Consulting Group Approach, which is the BCG Growth-Share Matrix to analyze the situation at Tapal. This portfolio takes into account two important dimensions of the market:
Ø The Market Growth Rate
Ø The Market Share
MARKET SEGMENTATION STRATEGY
TAPAL | Age | Occupation | Lifestyle | End Users |
Tapal Danedar | 25-65 | House wives | Housewives | Households/offices |
Tapal family mixture | 25-50 | House wives | Female who pride themselves in family values & cohesiveness. | Households |
Tapal safari chai | 18-30 | Athletes | Young, adventurous & energetic individuals | Athletes |
Mezban premier dust | 13-75 | Housewives | Interior Sindhi families who pride in smooth house hold running, family bondage, hospitality, 'mehman nawazee' & quality servings | Dhabbas/ Households |
Tapal special teabags | 18-35 | Professionals | Active, busy & working consumers younger in age who seek convenience & in their busy lifestyles | Travelers/ workplace |
Jasmine green tea | 22+ | House wives | Health conscious, dieting females. | Households/ Offices |
Tezdum | 25+ | Farmers/Athletes | Vigorous/energetic | Dhabbas/ Households |
Chenak Dust | 25+ | Housewives/ Blue-collar workers | Strong | Households/ Offices |
Ice tea | 18-35 | Students | Outgoing, active | Restaurants/cafes |
MARKET POSITIONING STRATEGY
Brands | Positioning | |||
Tapal Danedar | 'Aur Kiya Chahiye' Fulfilling Unmatched Wholesome | |||
Tapal family mixture | 'Mukammal Chai, mukammal Ghar' Family bonding Traditional Expressive Totality | |||
Tapal safari chai | Energetic Adventurous | |||
Mezban premier dust | Rishtoon jee shaan, rishtoon jee maan Welcoming Homely Togetherness Hospitality | |||
Tapal special teabags | Conveneience Promptness Speediness | |||
Tapal jasmine green tea | Heatlth consciousness Style Cosistency | |||
Tezdum | Fast paced Energezing Refreshing | |||
Chenak dust | Availability Strength | |||
Ice tea | Chill karo Refreshing Bubble free | |||
PRICING STRATEGY
Tapal follows high-medium price strategy in which it offers high quality tea at reasonable prices. Tapal also follows a Going Rate Pricing strategy, in which it bases its price largely on competitors’ price that is Unilever. Unilever being the market leader always sets the price, and then Tapal accordingly allocates its prices, always lower than that of Unilever. Tea prices have fallen over the years which are because of reduced import duties and costs.Besides taking the competition into account, Tapal does cost plus pricing.
DISTRIBUTION STRATEGY
The distribution objective of Tapal is to maximize its market coverage. To accomplish this Tapal has a wide distribution network of 410 distributors across Pakistan . Tapal has a wider distribution coverage in the South where as Unilever has better distribution in the North. Therefore, Tapal’s main objective is to increase their sales in the North. It ensures that it places its tea in the same outlets as its competitors in order to maximize availability. The distribution coverage of Tapal is as follows:
1. Karachi 14%
2. Lahore 34%
3. Islamabad 18%
4. Sukkur 22%
5. Hyderabad 12%
Distributors:
Tapal deals only with distributors on contract basis with no other intermediaries involved. They do not extend credits to their primary customers and all their sales are mainly cash based.
The contract comprises of a specification of a complete volume of the market, Tapal’s share in the market, the profit margin of the distributor, the sales that will be made by the distributor, as well as the complete route plan of the distribution network.
Tapal chooses their distributors after analyzing their complete financial background and Public Relations. They provide the distributors with a detailed description of the distribution network; all the costs and expenses involved and when the distributor agrees the contract is signed. This contract involves the condition that the distributor has to be brand loyal, pro-active and cannot deal with other tea companies otherwise the contract will be terminated. The contract includes a clause that describes its termination process. Either of the two parties: Tapal and the distributor, can terminate the contract on one month basis.
DISTRIBUTION STRUCTURE
END USERS /APPLICATIONS
OF PRODUCTS
Interpretation:
Ø The manufacturers sell from their warehouses to their major distributors, which sell directly to wholesalers, who either pass it on to the retailers and then to the end user or to the end users directly.
Ø Distributors also sell directly to large retailers and then the product is passed onto the consumers.
Ø This distribution trend of the industry is very similar to what Tapal follows. Tapal also sells directly to OOH (Out of House), which comprise of educational institutions, companies, travel & hot teashops.
Tapal’s outlet coverage (2005) was 75% and its market reach(2005) was 30%.
Supply Chain
PROMOTIONAL STRATEGIES
Communication of the value created by the company is very important; this stage in our view is the trickiest stage of the entire value creation process. The entire effort of creating the value will go down the drain if the communication is not done properly. There are cases when a company fails to communicate the value to the selected target customers or even worse when the target customers get the wrong message. There are many ways to communicate the value created; Tapal has used the following tools and techniques to communicate the value they have created for their target customers.
Advertising; As far as Advertising is concerned, the company has shifted away from television advertising to “MASS ADVERTISING”. The basic reason for the shift is that the organization realizes that television advertising is not the same as it used to be around 12-13 years ago. With a wide range of television channels available it is very difficult to convince the viewer to not to change his/her channel. But this does not means that they do not indulge in television advertising at all. The new brand “Tapal Mezban Dust” is targeted for the customers of interior Sindh. This brand extension needs both
TV as well as mass marketing as it is struggling with in the awareness stage. The TV adds show the culture of Sindh and tries to correlate the sindhi heritage of hospitality with the image of the brand. Ads are shown on KTN as it is believed that sindhi viewers do not change the channel during commercial breaks as it is the only sindhi channel.
Mass Advertising in the form of billboards are the most common form of advertising. The expenditure ratio of mass adverting to television advertising is 1.5 to 1. Big billboards with high color resolution for ‘Gulbahar’ (their new green tea) are good at tempting the customer to try the crystal clear green tea. The portrayal of men wearing formal suits and having tea at restaurants has persuaded people of the corporate sector to try the slightly expensive green tea.
Advertising on the new Fm radio channels like City Radio or FM 107, FM 96 is also extensively done for the young urban crowd for family mixture.
Public Relations; As far as publications such as catalogues and brochures are concerned the company does not have any such publications. They have not yet focused on the possibility of issuing any sort of publications for improving upon public relations.
Personal Selling; The company has a B2B (business to business) approach as far as personal selling is concerned. Sales rep visit hotels like Marriott and Sheraton to offer bulk amounts at a discount rate. Through this process they are able to sell more and this
serves as an easy method for further communication of the value which was promised primarily in ads and billboards. Face to face communication of value is much more effective than advertising as immediate feedback can be received which helps in ameliorating the communication process.
Direct Marketing; Again no form of this communication is taking place at a formal level. The company does not have a separate department. The only form of direct marketing is done by the brand managers who readily receive any complaints and comments about their brand through emails but do not respond to those emails. They only look after certain complaints which have been reported consistently.
Sales Promotion; Sales are promoted by encouraging the market segments through free sampling. The target segments are given free samples of the tea brand which is targeted for them. For instance in Lyari and Malir there are quite a few colleges where people of lower middle class income segment come to study. They like tea which is high in caffeine and strong in taste so that they can nourish their minds. Free sampling of such a brand (Tez Dam) was carried out for almost 2 weeks. After 2 weeks a lot of students bought the product although the product was no more for free and had no market before the free sampling was done.
Sales Force; Tapal at present has hard any notable sales force. When asked why? The company manager responded that since Tapal makes tea. Tea is a convenience product, such products are widely available, and customers have frequent purchase with little shopping effort. Such products have little customer involvement; hence a well equipped sales force is not essentially required. According to the manager of Tapal, making sure that the product is available all the time is more important.
EXECUTIVE SUMMARY
TAPAL intends to launch BUBBLE TEA, which is a fruit flavored instant tea drink intended to be available in strawberry flavor and served chilled. The name BUBBLE should not be confused with the air bubbles that are formed on the top when the tea is shaken. Bubble tea refers to the small pulpy balls made up of cassava (a nutritious starch) also called “tapioca balls”. We have developed the perfect can of the tea, without the bitterness found in other flavored teas. Every BUBBLE TEA we offer contains pure Ceylon Ceylon
INTRODUCTION
The product that we plan to launch is a relatively new product in the tea industry in Pakistan . The product is actually far from the plain-looking tea that you are generally familiar with and it is hard to explain to the uninitiated. It is non-alcoholic and non-carbonated fruit flavored tea with tapioca balls, namely BUBBLE TEA that tastes best when chilled. This product has been launched by TAPAL TEA (Pvt) Ltd.
“TAPAL is dedicated to provide customers value for their money”. TAPAL follows segmentation for BUBBLE TEA in which children, teenagers and young adults are the most targeted because cold fruit flavored tea is demanded more by this market.After offering a wide range of brands TAPAL wants to be known for its ultimate market dominance. TAPAL wants to make sure that they give a tough edge to the other competing brands. At TAPAL customers have full confidence when interacting due to the powerful brand and the employees are proud to be part of this successful company. BUBBLE TEA is launched by TAPAL by identifying the following required need and product characteristics:
Basic planning For New Product Of Tapal
Situational analysis
Need:
The need of Bubble Tea is to satisfy the nutritional values, which are currently lacking in the products offered by our competitors. BUBBLE TEA is an instant tea drink, which caters to a variety of taste preferences. Initially it is available in straw berry flavor. The uniqueness of our product is the tapioca pearls or small marbles; they have a consistency like gummy candy (soft and chewy). Being heavier than the drink they tend to always stay near the bottom of the can.
Evaluation
Product:
BUBBLE TEA is an instant tea drink, consisting of various nutrients and fruit extracts. The tea is sweet, though it has less sugar than a typical soft drink. The drink is a mix of tea, milk, creamer, sugar and strawberry flavor and the unique tapioca balls. The tea is in pastel color ‘pink’ and giant black tapioca balls. But the fun part of bubble tea isn’t the color or the flavor; it’s the ‘bubbles’.
The various product attributes are considered below
Ø Features:
Flavor: currently the flavor available is strawberry.
Ingredients: derived from natural fruits, including milk creamer, traces of tea and compositions from herbal extracts. .
Form: fine instant tea drink in the shape of plastic see-through can.
Taste: creamy rich strawberry flavor.
Packaging: enhanced, appealing and attractive see-through cans served with extra wide straws
Ø Benefits:
Convenience: BUBBLE TEA is taken in can to enjoy the look and the taste. Convenience can be taken as the plastic can is easy to dispose off without creating any fuss. BUBBLE TEA can be taken as a substitute of tea or fruit drinks and can replace your meal at the same time.
Nutritional values: Our drink provides extra nutritional contents
Like; iron, protein, fiber, vitamin C, Calcium, Sodium and Carbohydrates.
.
Ø Levels of product:
Core Benefit: Refresher and Stimulant.
Basic Product: Tea with tapioca ready to chew
Expected product: Can be taken hot/cold
Augmented Product: A tea that’s ready to drink and chew at the same time
and high in nutritional value
Potential Product: Straw berry flavor.
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