Lipton

SEMESTER REPORT

TOPIC:

ADVERTISING PLAN FOR A PRODUCT

PREPARED FOR

MR. EHTESHAM ALI
SENIOR LECTURER
ADVERTISING
PAF-KIET

PREPARED BY

RAIEEF QURESHI (3390)

19TH DECEMBER 2007

1

ACKNOWLEDGEMENT

I would like to thank MR. EHTESHAM ALI for his patience
and generosity about his arena of expertise, and for his
willingness and acceptability for her valuable input.

I would also like to thank the Department of Management
Sciences for providing us with the background that made it
possible for us to understand and appreciate the fast-paced
developments in management, marketing and advertising
plans and procedures.

I would also like to apologize for any deleterious effects and
unwanted information present in this research report.

2

CONTENTS

1. LETTER OF TRANSMITTAL……………………………….04

2. INTRODUCTION……………………………………………..05

3. SITUATIONAL ANALYSIS………………………………… 06
ADVERTISING PROBLEM…………………………………. 07
ADVERTSING OPPORTUNITES…………………………… 08

4. KEY PLANNING DECISIONS……………………………… 09

5. IMPLEMENTATION………………………………………… 10

6. EVALUATION………………………………………………… 11

7. BUDGET……………………………………………………….. 11

8. THE CREATIVE STRATEGY………………………………..12

9. THE MEDIA STRATEGY…………………………………….13

10.OTHER COMMUNICATION TOOLS……………………... 17

3

LETTER OF TRANSMITTAL

19th December 2007

MR EHTESHAM ALI
Senior Lecturer
College of Management Sciences
PAF KIET
Korangi Creek
Karachi, Pakistan

Respected Sir,

Here is the advertising report required as a component for assessment of our
group in the course “ADVERTISING”

This report provides an overview of how the advertising plan should be
made when a product is being launched in the market. What are the tactics
and strategies used in order to implement the overall campaign plan

Please do not hesitate to contact us if you have any questions regarding this
report.

Yours Sincerely

Raieef Qureshi

4

INTRODUCTION:

Lipton was created at the end of the 19th century by Sir Thomas Lipton.
Under the slogan “direct from the tea gardens to the tea pot,” this
entrepreneurial businessman wanted to make tea a popular and approachable
drink for everyone - with a high quality but reasonably priced product. The
Lipton 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.

Over the course of a century, Lipton has become a dominant tea brand in
many markets. The brand is well-represented in many countries across the
globe, including the USA, France, Japan, Saudi Arabia, Australia, and
Sweden.

Compared to other tea brands, Lipton has always had a strong focus on
innovation, given its continuous launch of both leaf tea and ready-to-drink
tea products. Products target the mass market and are generally positioned in
the middle of the price spectrum for tea. Due to its size, Lipton is also a
dominant player in tea expertise in the world. The company employs
professionals in tea growing, tasting, buying, blending as well as Research &
Development teams. Unilever/Lipton owns Tea estates in Kenya and
Tanzania, making it one of the few companies that is actively involved in the
whole value chain of tea, from growing it to marketing it.

Like most branded teas, Lipton teas are a blend selected from many different
plantations around the world, from well-known producing countries like Sri
Lanka, Indonesia, China, and Kenya. Lipton Yellow Label is blended from
as many as 20 different teas in specialized tasting rooms in seven regional
hubs scattered all over the world.

Beginning in 2006, Lipton has served as title sponsor to TEAM Lipton, an
elite women's professional road bicycle racing and triathlon team in the USA

5

LIPTON- THE KING OF TEA:
It was launched in 1890 and is the No. 1 tea brand owned and originating
from any tea growing country. Lipton Tea is now exported to almost 150
countries worldwide. Lipton is rated amongst the top 3 international tea
brands and is considered the No.1 for Quality.

This company generated turnover in excess of $ 4 billion, in 2003 with
employment in the Group’s production facilities and offices of 800 persons.
The Group excels in its commitment to manufacturing excellence; in its
commitment to quality, factories in matching the quality of Lipton Tea with
excellent manufacturing practice, the company has gained ISO 9001:2000
accreditation and was the first to receive HACCP accreditation in 2000. The
Group invests over $ 10 billion annually in ensuring that its manufacturing
capability remains state of the art.

The Company is world’s No. 1 manufacturer and exporter of teabags
accounting for over 57% of the country’s total exports of tea in bags. The
focus on branded, high quality tea has made Lipton a major player in the
premium segment of the global tea market, while re-establishing Yellow
label Tea as the world’s finest.

SITUATIONAL ANALYSIS:
The main objective of this advertisement plan is that Lipton is introducing a
new product in its brand name and is targeted at people who like strong tea
taste. Our new marketing focus, made explicit in this plan, renews our vision
and strategic focus on adding value to our target market segments, the upper
class and upper middle class.

Lipton tea focuses on providing its target audience a differentiated brand
keeping in mind the tastes and preferences of the market segment. Our
marketing challenge is to position our product and service offerings as the
high-quality.

For centuries problems of mankind have been solved over a cup of tea.
Whether they were problems between nations, between businesses, even in
families between husbands and wives, tea has been the soothing balm that
helped their solution.

6

The simple act of pouring a cup of tea is, in itself, an ice breaker providing
pleasurable anticipation of the goodness that is to follow. Lipton has
dedicated its expertise and knowledge to providing that cup of tea; not only
to solve problems but to add sunshine to your day with the first sip of
goodness'.

So in order to keep on rolling the tradition, Lipton is introducing this new
BUSHELLS TEA as one of the major boom in the tea business. The
situational market that leads to the study will include the basic SWOT
ANALYSIS. This SWOT analysis will provide with the back grounding,
researching and reviewing the current state of the business that is relevant to
the brand’s advertisement.

• THE ADVERTISEMENT PROBLEM:

SWOT analysis includes studying the Strengths, Weaknesses, Opportunities
and Threats that are being faced by the company in promoting the product in
the market. Let us look into the following in detail:

WEAKNESSES:

The main weakness that appears to be is the communication problem that
might act as the barrier because the brand name Yellow label is absorbed so
much in the mind of the consumers that they will not be interested in the
new product BUSHELLS by Lipton. Most of the loyal customers of Lipton
will still prefer using the Yellow label because it has a sense of trust and
commitment in terms of taste.

THREATS:

The tea business flourishes a lot in the world, thus there are so many
competitors of Lipton in the market such as Tapal, Brooke Bond, Tetley and
many more in the list. Sporting the products leads to capturing the same idea
by its competitors and then advertising the concept to the people, that leads
to the division of the advantage in the market.

7

• ADVERTISING OPPORTUNITIES:

STRENGTHS:

Lipton itself is a strong brand that promotes the product. Since the name is
on the top of the list, it has a strong dominance in the market and gains the
maximum share holding overall. The brand name plays an important role in
attracting and promoting the product and places a sense of commitment and
trust on which the consumers rely upon. Lipton also has gained great amount
of money and profits throughout its run and still continues to grab. So, it
does not need to worry about the income stability and revenues from the
sales.

OPPORTUNITIES:

Targeting all level of people allows Lipton to increase its market share by
more than 55% as compared to the current 52%. It has opportunities such as
capturing the people of country side who are addicted to drinking tea.
Having specialized staff and technical expertise grooms the opportunities to
be explored in the field of tea business.

KEY PLANNING DECISIONS:

• ADVERTISING OBJECTIVES:

The guidelines and clear objectives will effectively improve the sales of the
new product. The main aim of launching this new product is to gain greater
market share than all the current competitors present to the Lipton company.
The BUSHELLS tea redefines the image of Lipton along with its traditional
taste, but the new transformation of the product gives a kick-of-fantasy to
the consumers.

The AIDA model is the basis of developing the advertising objective, but in
this case when we are launching the new product, the HIERARCHY OF
EFFECTS model suits the best in the advertising plan.

8

The target audience is the main object to be captured for promoting the
BUSHELL TEA. It may range from low class people to one of the elite
class. Then next matter is creating the awareness of the product. Launching
the tea in the name of Lipton is itself a backing because it attracts the current
as well as the potential customers towards the name. Advertising the product
is to develop the interest in the audience so that they feel a sense of
attraction to the product. It may depend upon the perception of each
consumer and may be leading on the need. When interest is created, then the
next step in the model is develop the kind of preference liking amongst
different brands and products available in the market. Most of the consumers
glue themselves to the same brand and product since start because of its
already performance and exotic taste that they will always find. After the
preference, trial has to be implemented in order to give a try to the new
launched product. And finally after the trial, there will be some of the loyal
customers that will stay on with the tried product because in short they were
moved by its taste and were satisfied along positively.

• TARGETING THE AUDIENCE:

Targeting the audience includes the study of demographics, personality
descriptors, and lifestyle traits. The target audience for the advertisement is
the tea lovers who consume tea in reasonable amount and like to try different
varieties in it. So with the introduction of BUSHELL TEA, it has to be
targeted towards these people who will like to give it a try. In general terms,
the target audiences are all family members especially the upper class to be
specific.

• PRODUCT COMPETITIVE ADVANTAGE:

The feature analysis helps the marketer analyze its product to its competitors
product. Creating the list of BUSHELL to other products of competitors
will help in comparing its features in terms of price, quality; style,
availability and etc. price is a bit higher than its competitors because of its
unique blend of taste, quality is genuine with an added style for value and
will be available at larger scale.

9

• BRAND PERSONALITY AND POSITIONING:

Lipton has created a brand personality for BUSHELL TEA as the finest tea
collected from the gardens of Yorkshire and has the quality no other tea has.
The place Yorkshire sports the uniqueness of the brand.

The positioning of the product is also very much in contrast. When one hears
the name BUSHELL, it will remind them of freshness and purity. The
flavor melts down smoothly in the mouth that it takes you in the indulgence
theme and makes you feel very much airy.

IMPLEMENTATION:
Here, the tactics and strategies are identified and the persons responsible for
carrying out these responsibilities and implementing tactics. All the above
strategies and tactics are revised and the best suitable option is selected and
used for implementation.

Here, the advertiser has to be real cautious because even a slight mistake
will scrap the whole campaign. Everything has to be up to the mark and full
concentration is focused on how to implement the campaign successfully.
Hundreds and thousands of decisions need to be taken by the board of
directors before the implementation eventually takes place.

The key decisions that were taken in the implementation of BUSHELL
TEA advertisement were outstanding and technical. The advertising budget,
target vehicle, locations and boundaries, geographical boundaries and etc.
the entire decision laid the foundation of its success or failure in the market.

10

EVALUATION:

The basic aim of Evaluation is to see that has advertisement achieved its
objective or not? There are variety of researches and techniques available to
evaluate the effectiveness. This can be before, during and after the execution
of the advertising plan.

First with the use of Survey Research, we were able to find out that the sale
of BUSHELL TEA has grown gradually within a month. It means that the
product has been liked by most of the people who gave it a try and were
impressed by it. Questionnaires were filled by the respondents in order to
attract their views and thoughts.

Pantry checks were also done. This check provides much of the information
as the diary method but requires little from the consumer. We sent
researchers to homes and asked the families of the tea brand they use. It was
to amaze that almost 60% of the homes were using LIPTON brand.

BUDGET:

Determining the total appropriation allocated to advertising is not an easy
task, nor it is done in the end of an advertising plan. The amount could be
arbitrary bases on the market.

Although the appropriation and budgeting process relies on numerical
information, the process is more art than science. It is often based on
educated guesses, tradition, or the financial condition of the company.

The following advertising budget comes to a total of approximately 15
Billion Rupees. This budget requirement is necessary as hoardings would be
set up at locations costing up to approximately 2 billion. We believe that
LIPTON would need to advertise heavily on this new product if it is to
create awareness about its new brand in the minds of the target audience.

We used the OBJECTIVE TASK METHOD for creation of the budget.
Objectives of each activity were studied, and this determined the cost of
accomplishing each objective. The results are only as good as the stated
objectives and the amount assigned to each objective.

11

Summary Report
Parameter:
Advertisement Budget 2007-08 Rs 150,000,000

S.no Description per Amount
1 Air Media 15% Rs 22,500,000
2 Print Media 30% Rs 45,000,000
3 Outdoor Media 20% Rs 30,000,000
4 POS Material 10% Rs 15,000,000
5 BTL 15% Rs 22,500,000
6 Event Sponsorship 10% Rs 15,000,000
TOTAL Rs150,000,000

Around 30% of the budget was utilized on Print media. This is because print
media has advantages such as greater range of market coverage as we can
reach local or regional markets, especially the interest groups, etc. secondly
print media offers geographic flexibility. We can choose some markets and
not the others. It means that we can choose what our preference is all about.

Using the 20% of the budget on out door media is also into account that
through this, we can reach mass audience at the same time all over. The
frequency of the ad been viewed is large as compared to ads shown in the
TV.

THE CREATIVE STRATEGY:

The creative platform is a guide to those developing the advertisement. It
ensures that everyone working with the same understanding of the message
strategy. Most of the creative platforms combine the basic advertising
decisions- problems, objectives and target markets- with the critical
elements of the sales strategy including selling premise and detail about how
the idea will be executed.

Creating the new name BUSHELL was one of the tasks of the creative
group. Creating a name that has a kind of brand attracting power that goes
along with the image of the product.

Providing facts about the product is also very much necessary. Nutrients
values and ingredients are identified and displayed on the box of the tea.

12

Creative experts are hired by the company in order to make such kind of
work possible. This doesn’t seem as easy as it looks to us. It requires great
form of technical skills, bright mind and processing techniques. These
expertises have the ability to visualize imagination as well as excellent
writing skills. They are open to new experiences and probably work on
conceptual thinking.

THE MEDIA STRATEGY:

We have numerous options to give substantial awareness about our brand

• Newspaper
• Direct Mail
• Brochures
• Coupons
• Handouts or Flyers
• Radio
• Magazines
• TV
• Outdoor, such as billboards
• Special promotions or packages
• Partnering with a mobile service provider for example Mobilink Indigo.
• Internet Marketing
• Bus branding
• Merchandising

The media choices available us were as follows:

Newspaper:

Dawn, The News, Jang and Financial Post are the prominent newspapers to
advertise in. they are reached at each place of the country ranging from all
classes. Advertising Financial Post was done in order to capture the people
working in the office and they need to be attracted to this new tea.

Magazine:

Magazines such as Time, Newsweek, Readers Digest, Synergizer, Sunday
are a few where advertisement could be printed.

13

Television:

Television is a powerful medium because it communicates with both sight
and sound. Network television, the most costly purchase, can reach up to 95
percent of the homes of the target audience. By scheduling spots to air
during certain times of the day or programs. Advertisement should be shown
during morning and evening when people are more prone to drinking tea.

Channels that were used in advertisements are:

• ARY Digital
• HUM TV
• INDUS VISION
• BUSINESS PLUS

Radio:

Radio advertises should also be aired during morning and evening when
business people are heading toward and returning from their offices. Also
time sponsors could also be bought.

Direct Mail:

Direct mail allows the greatest degree of audience selectivity. By selecting
names from your own database of interested people and past visitors or buy
purchasing a qualified list from a direct mail company, you can reach an
audience who is already interested in your offering. This is an excellent
reason to start your own database if you don’t already have one. Later in this
booklet, we’ll discuss the benefits, as well as how to develop and work with
a database.

Another advantage of direct mail is that you can provide complete
information on your destination or attraction, compared with that in a
newspaper ad or a 30-second radio spot.
One disadvantage of direct mail is raising postal costs. Another limitation is
that people view direct mail as "junk," and the challenge is to get them to
open a letter.

14

Outdoor:

Outdoor advertising could be done in malls, plaza-pillar branding, and walls
of major shopping galleries, Bus branding, billboards, streamers, greenbelts
of the city.

Internet:

Business websites would be aimed at. Also cellular GPRS is also a place to
advertise on.

TIMINGS USED:

Timing is an important aspect when placing advertising. So we place our ad
in the morning in between 7:00 A.M to 9:00 A.M and in the first half of
evening in between 4:30 P.M to 6:00 P.M, because these are the time when
people are having or preparing cup of tea. If we place an ad too late, people
may already have plans or purchased another product. This is one of the
most critical decisions to be made by the expertise.

Continuous schedule - Advertising of this product will run throughout the
year, when demand and seasonal factors are unimportant.

The reach and frequency are needed to be determined carefully. Reaching
large audience through the advertisement is very important as it covers much
of your time and budget. If the frequency rate if the advertisement is good,
then more and more people are interacted to the ad, thus creating a place in
their mind.

15

THE AD TO BE PLACED IN THE PRINT MEDIA

“the break that reminds…….”

TRY THE NEW BLEND FROM THE HOUSE OF LIPTON YELLOW
LABEL THAT WILL TAKE THE TASTE OF TEA TO THE NEW
LEVEL OF EXTASY, INDULGENCE AND FRESHNESS.
BUSHELLS TEA IS BROUGHT CRISP FRESH FROM THE
HEAVENLY GARDENS OF YORKSHIRE.

16

OTHER COMMUNICATION TOOLS:

• SALES PROMOTION:

As the new product is being launched, so in order to capture more people,
sales promotions need to be done. Places such as AGHA’S, NAHEED
supermarket, MAKRO, and D-Mart can be used as the locations were sales
promotions can take place. E.g. buy one pack, get another one free.

• SPONSORSHIPS:

With so much of the budget, this product can be promoted in the
sponsorships. Such as drama awards, conferences, exhibitions and stuff. It
provides a platform where we can nominate our new product and create its
awareness to the people.

• COUPONS:

Along with the current Lipton yellow label, coupons of BUSHELLS tea can
be attached which allows the buyers to be fascinated for a trial of the
product, may it be a free sample or a discount card and other sort of stuff.

• PERSONAL SELLING:

Promoting the product directly at family marts and shopping places provides
personal selling advantage. You come in contact with the customer and
interaction takes pace right on. Here, you can make a customer get attached
to the product if the aperture hits at the right place.

• POINT-OF-PURCHASE:

Placing your new product on the point-of-purchase counter helps in greater
frequency of the time the customers will have a look at this new product and
would entice them for it. It is one of the major attracting powers of this
strategy.

17

FINAL THOUGHT:

Looking at the overall plan, one thing is clear that no matter what it takes,
the audience need to be targeted very smartly and in a way that make them
feel that the product has something in it that others do not. This acts as a
competitive advantage for the company.

Capturing the maximum share in the market leads to more and more
identifications of opportunities and these profitable opportunities need to be
grasped eventually at all levels of competition.

The firm may operate with an annual advertising plan and the campaign
must be so strong that it delivers the message straight forwardly and hitting
the aperture at the right place with maximum media share.

THE END

18

Lipton

More Related Content

What's hot (20)

Similar to Lipton (20)

Recently uploaded (20)

Lipton