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Positioning Statement & Market Analysis
Prepared By:
Ariba Mehtab : 11059
Zainab Anwer Noorani : 11480
Report On :Lipton Yello Label Tea
Class M.B.A (Morning) 9:00 to 12:00
Submitted To : Mohammead Azam Khan
Announced date: Tuesday, 16thMarch, 2010
Due Date: Tuesday, 06thApril, 2010
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Table of Contents
Contents: Page#
1. 1 Positioning Statement Of Lipton Yellow Label 4
2. Introduction Of unilever 5
3.Product Category
y History of Tea 6 & 7
y Tea In Pakistan 84. Executive summary 9
5. Product Name Lipton Yellow Label 10, 11 & 12
6. Overview Of Pakistans Tea Indusrty 137. Target Marketing 14
8. Statement of need or opportunity 15
9. Core benefit proposition 15
10.
Market Segmentation of Lipton Yellow Label 16 & 1711.SWOT Analsis Of Lipton Yellow Label 18 & 19
12.Primary Competitive Alternative 20 & 21
13.Primary Point of difference of Lipton Yellow Label 22 & 2314.4Ps of Marketing Lipton Yellow Label 24 to 29
15.Positioning of Lipton Yellow Label 30
16.Brand Repositioning & its types 31
17.Brand Repositioning of Lipton Yellow Label 32 & 33
18.Questionnaire for consumers 34
19.Summary of findings 3520. Graphs 36, 37
21.Thank You 38
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Acknowledgement
The profound Thanks goes to ALLAH Almighty ,most gracious most merciful whom
alone we worship and ask for help.
This report was arguably one of the most painful yet thrilling experiences in this
semester. There were times when we were thankful, times when we werefrustrated, and times when we were filled with disbelief and at last we were
successful in fulfiling our task and we have an above average report for you all to
read.
Thanks to Allah for giving us the skill as well as the will to survive with our heads
held high throughout.We would also like to Thank our Teacher Dr.Mohamed Azam
Khan (Principles of Marketing) who have been providing guidance and suport during
the whole process of our report. To our parents and family who have supported us,our salutes!
Thanks to those anonymous angels at Lipton who helped us get information about
the industry.
Making this report has immensely helped us in understanding the skills of
Marketing. Thanks!
And finally thanks to those cups of tea weve l had during this report!!
Sup Assignment & Project POM for MBA Spring 2010
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1:- Name: Ariba Mehtab Reg. No. 11059 Sec/Day Tuesday 9:00-12:00
2:- Name: Zainab Anwer Noorani Reg. No. 11480 Sec/Day Tuesday 9:00-12:00
POSITIONING STATEMENT OF LIPTON YELLOW LABEL
For all age group people belonging to middle, upper middle & upper.
(Target customer)
Who want active and refreshing life style for themselves and their famalies.
(Statement of need or opportunity)
The LIPTON YELLOW LABEL is a tea
(Product name (Product category)
That has taste. Flavor,colour and aroma.
(Core benefit proposition)
Unlike TAPAL
(Primary competitive alternative)
Our product has high ethical value and has good taste.
(Primary point of difference)
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Introduction Of unilever
Unilever is one of the worlds greatest consumer goods company and lipton yellow
label is a product of Unilever.They sell around 150 million products a day,whichmakes them worlds largest food businesses and a leader in Home and Personal Care
markets.There brands meet people everyday needs for nutrituion, hygiene and
personal care and they are obsessed with developing new products that reflect theway that people likes and tastes are changing.
Location:
Unilever Pakistan Limited.
Avari Plaza,Fatima Jinnah Roas Karachi.
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Product Category:-
The product category of our product is tea.
Historyof Tea
Originof Tea Legend Mythsand Facts
After water, tea is the most widely-consumed beverage in the worldIt has acooling, slightly bitter, astringent flavour which many enjoy. There are at
least six varieties of tea: white, yellow, green, oolong, black and pu-erh [6] of
which the most commonly found on the market are white, green, oolong andblack.[7] All teas are made from the same species of plant, though different
varieties may be used, and the leaves are processed differently, and, in thecase of fine white tea, grown differently. Pu-erh tea, a post-fermented tea,
is also often used medicinally.[6 ]
First Discovery
According to Chinese mythology, in 2737 BC the Chinese Emperor, Shen
Nung, scholar and herbalist, was sitting beneath a tree while his servant
boiled drinking water. A leaf from the tree dropped into the water and ShenNung decided to try the brew. The tree was a wild tea tree. There are many
authentic and supposed references to tea in the centuries before Christ,according to the Chinese dictionary dated circa 350 AD. The Chinese t'uwas often used to describe shrubs other than tea, hence the confusion when
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Confucius allegedly referred to tea or t'u when writing about the "sow
thistle" plant in the Book of Odes.
From the earliest times tea was renowned for its properties as a healthy,
refreshing drink. By the third century AD many stories were being told andsome written about tea and the benefits of tea drinking, but it was not until
the Tang Dynasty (6818 - 906 BC) that tea became China's national drink
and the word cha was used to describe tea.
The modern term "tea" derives from early Chinese dialect words - such as
Tchai, Cha and Tay - used both to describe the beverage and the leaf. Knownas Camellia sinensis, tea is an evergreen plant of the Camellia family. It has
smooth, shiny pointed leaves which look similar to the privet hedge leaf
found in British gardensTHE TEA PLANT
There are more than 1,500 teas to choose from more than 25 differentlisted countries around the world but the main producers are India, Sri
Lanka, Kenya, Malawi, Indonesia and China. It is cultivated as a plantation
crop, likes acidic soil and a warm climate with at least 50 inches of rain perannum.
Other factors affecting flavor characteristics are the methods of
processing and, of course, the blending together of teas from differentareas and regions OR the additions of flowers, fruit, oils, herbs or spices
from other plants.
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TeaInPakistan
Drinking tea defines our culture as well as history. Around 95% of the total worlds
population is relatively familiar with tea, its strong and sensational aroma and its
soothing, yet slightly bitter astringent flavour (taste). After water, tea is themost widely-consumed beverage in the world. In Pakistan, almost every 10th person
is a tea addict and undoubtedly feels proud of this addiction (and I am now one of
them too, and a proud one). May it be the light yet effective green tea, the slight
ting of lemon tea, the amazingly sab ki favourite doodh patti, the occational
Kashmiri Chai, or the delicacy of herbal tea, we all love and adore tea.
Doodh patti, is the widely used form of tea in Pakistan, then comes the rest. Now
when it comes to tea, which is a commodity (and now a days a basic one in every
household), we search for the one who has to offer the following:
- great flavour
- highly aromatic
- easily accessible
- affordable
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Executive Summary
Tea is considered to be an essential consumption item in many countries of the
world, including Pakistan. The history of tea drinking in the subcontinent can be
traced far back. Over a period of time, the colonials improved the quality and tasteof tea. At present there are two kinds of tea available in the market: branded and
unbranded (loose) tea, the ratio is (54:46) respectively. Bulk importers sell tea to
retailers in loose form, while the second category of bulk importers sell packaged
tea under brand names.
All tea in Pakistan is imported. Therefore, tea, a traditional hospitality itemin Pakistan, consumes a large amount of foreign exchange. Pakistan mainly
imports tea from Kenya and other African countries like Uganda, Burundi
and Tanzania, while multinational companies in Pakistan also import tea fromSri Lanka, Indonesia and Bangladesh. The current tea imports are
approximately 150,000 tons.
There are unlimited quantities of smuggled tea flooding the market. The
main problem at present is that smuggled tea has now taken over the
market, simply because of the high duty and taxes levied by the governmenton branded tea. Smuggled tea escapes all duties and levies, and therefore
can be sold cheaply, as loose tea. Now efforts are being made to grow tea
leaves locally.
Branded VS Unbranded
Branded
54%
Unbranded46%
Branded
Unbranded
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Product Name:-
In product category the product name is Lipton Yellow Label.
Lipton Yellow Label
Lipton teaclearsyourmindsoyoucansee things thatothersdont.
Lipton was created in the end of 19th century by Sir Thomas Lipton in
Glasgow,Scotland. Under the slogan Direct from the tea gardens to the Tea pot,this entrepreneurial businessman wanted to make tea a popular and approachable
drink to every one_with a high quality and a reasonable price product.
Sir Thomas Lipton
In 1929, the Lipton grocery retail business was one of the companies that merged
with Home and Colonial Stores to form a food group with over 3,000 stores. Thegroup traded as Home and Colonial Stores until 1961 when it took the name of
Allied Stores.[1]
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Lipton's became a supermarket chain focused on small towns, before Allied's 1982
acquisition by Argyll Group: the supermarket business was rebranded as Presto
during the 1980s.
Meanwhile, the Lipton tea business was acquired by consumer goods company
Unilever in a number of separate transactions, starting with the purchase of the
US and Canadian Lipton business in 1938 and completed in 1972 when Unilever
bought the remainder of the global Lipton business.
Sir Thomas Lipton's vision to provide the best quality tea has made Lipton the
number one tea in the world today. Lipton offers an option to tea lovers to enjoy
their favorite drink in an exciting and refreshing way.
Lipton is the tea brand for Unilever, one of the biggest multinationals around the
globe. According to a source,
1649 cups of Lipton Tea are enjoyed every second
8245 cups of Lipton Tea are enjoyed every time you blink
1252 cups of Lipton Tea are drunk every time your heart beats
52 billion cups of Lipton Tea are drunk each year
Makinga bigsplash
Lipton is one of the world's great refreshment brands, making a big splash in the
global beverages market; it is the epitome of international quality. Lipton Yellow
Label's assurance of quality has helped it become the world's largest selling tea
brand. Specially plucked from the best tea gardens of Kenya and blended to
perfection - it is truly the gold standard in tea. The 100% International Blend -
made with one of the best technologies available in the world, has been brought to
you to provide the finest tea drinking experience.
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Be the bestyoucan be
Drinking Lipton is a way for the consumers to feel great in mind and body - to feel
good about themselves and the world around them. Lipton allows its consumers to
be the best that they can beto stay engaged and connected.
Goals
To satisfy our customers and achieve success worldwide.
Focus
Our main focus is on trust.We believe that trust is the foundation of ourbusiness actions.We believe honesty is absouletly necessary and its integrity
cannot be compromised.All our actions and decisions are guided by fairness and
sinserity of commitment.
Outstanding Quality
We believe in dedicating ourselves to achieve ourselves to achieve an
outstanding quality in all our activities.Excellence is a journey and not a
destination.Quality is a way of life to us.
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Unityandcreativity
We believe in unity of purpose and value the benefit of co-ordinated efforts &
we are open to new ideas at every aspect of our business.
Overview of tea industry in Pakistan
Product LifecycleMatrix
Time
Sales
Introduction Growth Maturity Decline
Lipton
Tapal
Supreme
Tetley
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TargetMarketing
Targeting a segment means the company is making a selection and targeting a
certain group of consumers or buyers for its product or services. Evaluation of
different segments that companies make is most critical before targeting anysegment, every company have its own criteria of selecting a segment such as size,
potentiality of growth, profitability, economies of scale, or low risk in the segment.
Lipton Yellow Label has target different market segments .
Lipton Yellow Label basically has targeted the urban areas and has concentrated on
the upper and middle classes.Therefore despite the fact that it uses a mass
marketing approach it can easily be denoted that this product is catered to a
particular segment. Even in its marketing approach for Lipton Yellow Label, the
product is presented in a different way for instance the teabags are targeted
toward the upper high class, while soft packs and jar packs are targeted for middle
and middle lower class. Today as both men and women consume equal amounts of
tea the age group segment selected for Lipton is for all age group for they want to
target those people who are young, trendy, cosmopolitan.
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Statementof needoropportunity
Lipton yellow label is for themselves who want active & refreshing lifesyle for
themselves and there families
Core benefitproposition
The core benefit proposition of Lipton yellow label is that it has :
y taste.
y flavory colour
y aroma.
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MarketSegmentation Of Lipton Yellow Label
MarketSegmentation
Distinct needs - regular tea/ green tea
Characteristics taste, aroma, strength
Behavior in terms of 4 Ps Segmentation of consumer market
CURRENTSTATUS OF SEGMENTATION
There are two clear segments of consumers in the market, branded tea consumers
and un-branded tea consumers. In Sindh, branded tea is consumed by most of the
cities, whereas in the rural areas both branded and unbranded are equally popular.
In Punjab, the city dwellers as well as a majority of rural areas are absolutely
brand loyal while unbranded tea is only popular in teashops and hotels. In NWFP
and Balochistan, 90% of the population still prefer the unbranded form as it gives
them the chance of see and smell what they buy before paying for it. In addition,
the mindset is such that now no other tea brand can compete because consumersare strongly brand loyal.
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Segmentation Variables Data
GeographicSegmentation:-
y World region Asia
y Country Pakistany Cities All major cities of Pakistan
y Density Urban-Rural
y Climate Hot & dry
DemographicSegmentation:-
y Age All age groupy Gender Male,Female
y Family size 1-2,3-4,5 abovey Family life cycle Married & Unmarriedy Income 12000 above
y Occupation White collar & service workers
y Education School,colleges & Universitiesy Religion All
y Race Asian
y Nationality Pakistani
Psychographic
Segmentation:-
y Social Class Middle class n upper class
y Lifestyle Fulfilled,believers,experience makers and
y Strugglers
BehaviouralSegmentation:-
y Occassion Any occassion
y Benefits Quality,taste,flavour and brand status
y Loyality Status Significantly highy Readiness Stage Awake & interested
y Attitude towards brand Positive & entusistic
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SWOTAnalysisof Lipton Yellow Label
All organizations should understand their operating enviournment as it allows
them to take advantage of the opportunities and minimize threats.The followinganalysis illustrates the enviournment of Pakistan in which Lipton Yellow Label
will be operating:-
Strengths
y Experienced and quality management.
y Strong Ethical value (culture and heritage)
y Strong supply liney Highly innovative
y Strong financial position
y Strong company imagey Success of the slogan
y Quality & varietyy Effective & attractive packagingy High quality man power
y Help people getting more out of life
y Brand recognition
y Accessbility
Weakness
y High prices of the producty Substitute products
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Opportunities
y Brand is the part if traditional drinking habits
y Research & development
y Makes people active
y Expansion in other areas of country
Threats
y Strong competion in rural and urban areas
y Internationally increasing tea prices
y Political conditions in the country may be obstacle to exports
y High infaltion in the country can negatively effect the brand
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Primarycompetitivealternative
The primary competive alternative of Lipton Yellow Label is Tapal Danedar Tea.
Tapal Danedar
Tapal is a well known name in Pakistan. In 1947, it started business and now
are a Tea leader and so celebrated its 55th anniversary in 2002. Their firstshop was in Jodia Bazaar.
The journey of Tapal's remarkable success is the combined efforts of threedynamic 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 founders 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
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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 inthe country. He developed an entirely new brand and category- Tapals
Family Mixture (the mixture of tea & dust). Mr. Aftab Tapal was the first
to invent the highly successful brand Danedar Leaf Blend. In December1997, 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 Danedar and Lipton Yellow Label are primary competitive of eachother .They are they competitive because they target the same consumers
ane are for same type of people there Target market is same. They also have
slightly difference in there prices,
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Primarypointof differenceOf Lipton Yellow Label
The primary point of difference of Lipton Yellow Label is
Logo
Lipton Yellow Label is painting the world yellow with a marketing campaign
that represents all that Lipton stands for brightness, vitality and fun with
natural goodness and the red represents the enerfy it gives.
Slogan
Lipton tea can do that
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All thegoodnessof Tea
The all the goodness of tea makes Lipton Yellow Lbel makes it different
from other products.The point of difference are as follows
Quality
Hand picked close to the bud for best quality tea and finest taste.The
quality of Lipton Yellow Label makes it different it offer best quality tea to
its consumers.
Vitality
Lipton tea helps you to revitalizes your mind and body.
Natural
Litopn Yellow Label tea is a natural source of antioxidants and thearine.
BrandImage
y 100% naturaly Accessible
y Consistent quality
y Versatile
High Ethical Value
Lipton yellow label has high ethical value in the minds of consumers because
it is used since ages so people are well aware of the brand.
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FourPsOf Marketing Lipton Yellow Label
The four of marketing Lipton Yellow Label are as follows.
Product
The product Lipton Yellow Label has a brand image in the mind of
consumers.Hand picked close to the bud for best quality tea and finesttaste.The quality of Lipton Yellow Label makes it different it offer best quality
tea to its consumers. We believe in dedicating ourselves to achieve ourselves to
achieve an outstanding quality in all our activities.Excellence is a journey and nota destination.Quality is a way of life to us.The consistent quality makes the
product successful in the market.
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Price
Lipton Yellow Label has never wanted to compromise on quality so they adoptedvalue based pricing.
Lipton Yellow Label:
100gm: Rs.57
200gm: Rs 114
500gm: Rs 250
1000gm: Rs 499
Placement (Distribution)
Lipton Yellow Label has a distribution network spread across Pakistan.The
popularity of the brand is so much making it the No.1 National Tea company in
Pakistan.
Lipton Yellow Label caters to its customers by providing Lipton Yellow Label to
more than 150000 outlets in Pakistan,which includes super stores, general stores,
grocery stores and discount stores and all departmental stores.
Lipton has its headquarter in Karaci and 650 distribution offices all over Pakistan.
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Distribution plays an integral role in any company whether its a FMCG or utility
good. The role of distribution in the marketing mix is to deliver a product to its
target market or final consumer. Between the manufacturer and the final consumer
stands a set of intermediaries performing a variety of functions. These
intermediaries constitute a marketing channel also known as trade channel or
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distribution channel. The marketing channels are set of interdependent
organizations involved in the process of making a product or service available for
use or consumption. Marketing channels overcomes the time, place and possession
gaps that separate goods and services from those who need or want them.
Liton Yellow Label Danedar is known for its wide distribution network. The Lipton
Yelow Label distribution channel is:
Promotion
Manufacturer
Wholesalers
Retailers
Consumers
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Promotion:
The Lipton Yellow Label does it promotion in following ways.
The company uses different promotion techniques they povide different items to
people such as :
y Caps
y Tea bags
y Cupsy Printed T-shirts
y Discounts
y Basant festivalsy Vans
y Watches
The company is different sales promotion techniques at different time of theyear depending on the sales of the product.
ElectronicMedia:
The company is spendind a lot on electronic media.In there advertisment they hire
renowned celebrities.
Advertisment:
The Lipton Yellow Label uses different types of advertisment as follows
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Television:
Lipton yellow label spends a lot on television advertisment.Commercial during cable
network movies, TV shows such as special drama, news ,talk shows and Sitcom
Product placement is also done in many of the shows.
Magazines:
Full page advertisment including Akhbar-e-Jahan, Mag, Family Magazine, Fashion &
Business Magazine.
Internet:
Lipton Yellow Label advertises on websites such as Facebook & Yahoo.
Co-Branding:
Avaiable at big shopping malls such as Dolmen Mall, Park Towers & Millenium Mall.
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PositioningOf Lipton Yellow Label
Positioning involves designing the product and image that will occupy a distinctiveplace in the minds of the target market. As can be seen, Lipton yellow label have
the largest profit margins and market share in the automobile industry. Thus the
marketers at Lipton have decided to create its own unique image and then
strengthen the position in the customers minds.
The Lipton Yellow Label has positioned its product in the minds of the consumer as
y Activey Refreshing
y Colour
y Aromay Taste
y Flavour
y Outstanding Qualityy Slogan
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BRANDREPOSITIONINGAND TYPESOF BRANDREPOSITIONING
BrandRepositioningis changing the positioning of a brand. A particular positioning
statementmay not work with a brand.
For instance, Dettol toilet soap was positioned as a beauty soap initially. This was
not in line with its core values. Dettol, the parent brand (anti-septic liquid) was
known for its ability to heal cuts and gashes. The extension's 'beauty' positioning
was not in tune with the parents germ-kill positioning.
The soap, therefore, had to be repositioned as a germ-kill soap (bath for grimy
occasions'') and it fared extremely well after repositioning.H
ere, the soap had tobe repositioned for image mismatch. There are several other reasons for
repositioning. Often falling or stagnant sales is responsible for repositioning
exercises.
Productrepositioning key tosuccessfulmarketing
AFTER EXAMININGREPOSITIONINGOF SEVERALBRANDS FROM
PAKISTANIMARKET THE FOLLOWING TYPESOF REPOSITIONINGARE
IDENTIFIED, THESE ARE
1. Increasing relevance to the consumer
2. Increasing occasions for use
3. Making the brand serious
4. Falling sales
5. Bringing in new customers
6. Making the brand contemporary
7. Differentiate from other brands
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8. Changed market conditions.
It is not always that these nine categories are mutually exclusive. Often one
reason leads to the other and a brand is repositioned sometimes for a
multiplicity of reasons.
REPOSITIONINGOF LIPTON YELLOW LABEL TEA
LIPTON YELLOW LABEL was initially positioned as delicious, sophisticated and
premium tea for the global citizen. The advertisement also echoed this theme. The
repositioning specifically addressed the local customer by the old melody chai
chahie......
CHANGINGSLOGAN
LIPTON TEACANDO THAT..
This slogan and advertisement campaign attracts the youngsters..Lipton people
placed the bill boards on roads, bus stops with simple questionsand their answerswere given few steps forward.
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Launchingof lipton ice tea
Lipton also launched ice tea to take the competition head on so the youngsters also
enjoy their product.
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Questionnaire forConsumers
Name: ________________________________
Age: ________________________________
Area: _______________________________
Profession: ____________________________
1) Gender ?
a) Male
b) Female
2)
Age group ?
a) 1- 15b) 15-30
c) 30-45
d) 45-60e) 60 above
3) Marital status ?
a) Unmarried
b) Married
4) How many cups of tea you consume every day ?
a) 1-2b) 2-3
c) 3 above
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5) Which tea do you drink ?
a) Lipton Yellow Label
b) Tapal
From the questionnairewe foundsomestatisticsrelated toourproduct.
SUMMARYOF FINDINGS:
Our respondents of 100 sample size.
0
10
20
30
40
50
60
Gender
Male
Female
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0
5
10
15
20
25
30
35
Age Group
1 to 15
15 to 30
30 to 45
45 to 60
60 above
0
10
20
30
40
50
60
Marital Status
Unmarried
Married
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0
5
10
15
20
25
30
35
40
45
50
Tea Consumed
1 to 2
2 to 3
3 above
44
45
46
47
48
49
50
51
52
53
54
Tea Brand
Liton Yellow Label
Tapal
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