Brand Management

Brooke Bond Supreme

Faizmeen Noorani (11496) Sana Khaleeq (12215)

LETTER OF ACKNOWLEDGEMENT:

We would like to express our whole hearted thanks to Almighty Allah by whose grace and blessings we

have the knowledge; insight and opportunity to this complete this report.

Most importantly, we are grateful to our instructor, Mr.Ejaz Wasy, whose continuous support, faith and

cooperation contributed significantly towards the completion of this report.

We would also like to thank Mr. ASAD SAEED, Assistant Brand Manager Brooke Bond Tea. Who gave up

his precious time to help us with this report by providing us all the relevant information regarding this

topic on 29th November,2013.

It’s been a pleasure to be students of Mr.Ejaz Wasey. His teaching has opened new portals for us in

terms of experience, knowledge and professionalism. We have gained a lot of valuable experience in this

course which will surely benefit us throughout our careers. As his students, we had an opportunity to

gain insight and exposure into real world. We are, of course, solely responsible for any errors, omissions.

Sincerely,

Faizmeen Noorani 11496

Sana Khaleeq 12215

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Executive Summary

Unilever (Pakistan) Limited Formerly known as Lever Brothers (Pakistan)Limited is by far the largest and most experienced fast moving consumer goods (FMCG) organization in Pakistan. Its beverages accounted for 40% of2 0 0 2 r e v e n u e s . T h e m a j o r t e a b r a n d s a r e B r o o k e B o n d S u p r e m e , l i p t o n yellow Label, Pearl Dust and A-1 Karak Chai (formerly A-1 Kenya mixture chai). Unilever has a dominant 35% market share in tea industry and is the leading player in the packaged tea market.

This report talks about the Unilever Brand Brooke Bond Supreme. Brooke Bond Supreme is a brand of tea which is sold throughout Pakistan. This report discusses the marketing strategies, marketing objectives and a lot more which will give a better understanding of the overall brand.

This report will help in understanding the Brooke Bond Supreme brand better and how it is being managed and marketed by the brand managers and the rest of the team. It also talks a little about the perceived value by its customers and how the brand communicates with its customers.

Overall, the report will provide a look at Brooke Bond Supreme as an overall brand.

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Table of ContentsAbout Unilever Pakistan..............................................................................................................................4

History.....................................................................................................................................................4

The Unilever Vision..................................................................................................................................4

Unilever Pakistan Ltd...........................................................................................................................5

Unilever Pakistan Foods Limited..........................................................................................................5

Brooke Bond Brands....................................................................................................................................6

Brooke Bond Supreme.................................................................................................................................6

Market Situation..........................................................................................................................................7

Trends..........................................................................................................................................................7

Market Share...............................................................................................................................................8

SWOT Analysis.............................................................................................................................................8

Strengths.................................................................................................................................................8

Weaknesses.............................................................................................................................................8

Opportunity.............................................................................................................................................9

Threats.....................................................................................................................................................9

Target Market..............................................................................................................................................9

Consumer Personality and Characteristics..............................................................................................9

Positioning...................................................................................................................................................9

Market Segmentation..................................................................................................................................9

Geographic..............................................................................................................................................9

Psychographic..........................................................................................................................................9

Brand Personality......................................................................................................................................10

Brand Differentiation.................................................................................................................................10

Benefits of Brooke Bond Supreme.............................................................................................................10

Functional Benefits................................................................................................................................10

Emotional Benefits................................................................................................................................10

Marketing Objectives................................................................................................................................11

Marketing Strategy....................................................................................................................................11

Overview...............................................................................................................................................11

Product..................................................................................................................................................11

Place......................................................................................................................................................12

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Price.......................................................................................................................................................12

Promotion..............................................................................................................................................12

Packaging...............................................................................................................................................13

Appendix...................................................................................................................................................15

Brooke Bond Promotion (Advertising Campaigns).............................................................................15

References.................................................................................................................................................17

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About Unilever Pakistan

HistoryUPL was established some fifty years ago in the then newly created Pakistan. The town of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility developed.

By far the largest consumer products company in Pakistan, UPL is a part of the consumer products giant Unilever.

Today, Unilever Pakistan is a force to reckon with. Its contribution to Pakistan's economic development cannot be overestimated. Now operating four factories at different locations around the country, the company contributes a significant proportion of the country's taxes. It employs a large number of local managers and workers. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country.

The UPL Head Office was shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this time the once dusty and sleepy village was the hub of activities for UPL. A residential estate situated near the factory is the home of UPL employees at Rahim Yar Khan.

Unilever is one of the largest FMCG companies of the world, represented in 150 countries with over 200,000 employees. In Pakistan, Unilever is one of the most prominent multinationals in the country operating though two affiliated companies’ viz. Unilever Pakistan and Unilever Pakistan Foods. The two public listed limited companies have 5 wholly owned and 7 third party manufacturing sites across Pakistan and employees around 1,500 people on their payroll and many thousands indirectly.

The Unilever Vision“We help people around the world meet everyday needs for nutrition, hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.”

Unilever Pakistan Brands

Unilever Pakistan Ltd.1. Badami

2. Blue Band

3. Brooke Bond

a) Brooke Bond A1b) Brooke Bond Supremec) Brooke Bond Pearl Dust

4. Clear

5. Close Up

6. Comfort

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7. Cornetto

8. Surf Excel

9. Fair & Lovely

10. Flora

11. Rin

12. Lifebuoy shampoo

13. Lifebuoy soap

14. Lux

15. Magnum

16. Pearl Dust

17. Pond’s

18. Rexona

19. Sunsilk

20. Lipton

21. Wall’s Desserts

22. Wall’s Heartbrand

23. Wall’s Kid’s Range

Unilever Pakistan Foods Limited1. Energile

2. Knorr

3. Rafhan

4. Unilever Food solutions

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Brooke Bond Brands1. Brooke Bond Supreme (explained below)2. Brooke Bond Pearl Dust:

Sindh is a land renowned for its strong traditions and culture; passion and hospitality is Pearl Dust’s citadel - an experience in the making from where the Pearl logo acquired its iconic status ever since its launch in 1984.Tea in Sindh, like other cultures in Pakistan, is taken very seriously; it is the cornerstone of hospitality and can make or break relationships. In a society where traditions run supreme, Pearl Dust gives the family a chance to share a personal moment together. Pearl Dust is a testament to a strong bond that brews.Pearl Dust is currently advocating a health message emphasizing the goodness of tea.

3. Brooke Bond A1

Brooke Bond A1 is the strong cup of tea that gives the strength to face challenges and stand up for what you believe in. Launched in 1996 the brand has a unique standing thanks to its strong blend which translates into the strength of the common man.Brooke Bond A1 reaches the consumer in quality packing which retains the freshness of tea. A1 is free from adulteration and this is one reason why consumers prefer A1 over low quality tea.

Brooke Bond SupremeIn a land where tea is far more than just a drink of a specific season or region, Brooke Bond Supreme has always held its head high. For decades now, Supreme has been the Pakistani consumer’s choice for taste and quality and now, for health as well.

The Supreme tea blend is rich in Flavonoids which is associated with an array of favorable effects on human physiology, in particular on cardiovascular health. Flavonoids help improve blood circulation which leads to a great deal of benefits to the overall body, making Supreme a healthy beverage. With the consumer’s health at the heart of the brand, Supreme offers a blend that is not only tasty but also healthy.

Tea is harmful for your health? Darkens the skin? Dehydrates? Causes acidity?Misconceptions of these sorts, still prevalent in the society, not only inhibit the consumption of tea but also prevent its full health benefits from being obtained. Brooke Bond Supreme is the face of vitality, refreshment, quality and health in the Pakistani tea circle. Providing and serving the best to you and your family time and beyond, Supreme is “brewing goodness.”

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Market SituationThe tea industry in Pakistan constitutes the target market of nearly half of the population and the yearly consumption is 130,000 tons. The consumption rate is still accelerating at a fast pace, accumulates to be 6% annually.

Approximately 140 million kg of tea is marketed annually in the country of which 110 m kg is met by the imports while the rest of the 30 million kg demand is fed by the smuggled counterpart.

Of the 110 million kg regular imports, 70 million kg is branded while the loose market makes up the rest of the 40 million kg. Tapal and its multinational rival Unilever togther enjoy the biggest share of the branded market — 60 million kg leaving the remaining 10 million kg for a number of other smaller companies

The preference of buyers shows the concern in quality, aroma, strongness and the nature of tea type. Normally the buying decision of tea is taken by women aged 30 to 60. This category belongs to the dissonance reducing buying behavior where there are not many varieties or differences are there. However the involvement in the product is high. Due to the humid weather and the hectic lifestyle, tea works as an effective stimulant. Another reason for tea being a popular stimulant is that coffee, a close substitute of tea is comparatively expensive which most people cannot afford.

TrendsBrooke Bond Supreme is one of the largest selling tea brands of the country. At one point in time it held the position of being the market leader. Looking at its position now, however it was not able to retain this position. There are a few reasons due to which Supreme lost its market leader position:

1) Supreme abandoned the unprofitable part of its portfolio. Although it was unprofitable it still got them customers. By getting rid of these elements Supreme let go of its customers. One aspect of the portfolio they let go was their sachets. Although unprofitable this helped it target the population of the rural areas who could have been Supreme’s potential customers

2) Supreme also reduced the frequency of its promotions. This affected their sales highly because there was no force pushing them to buy their product. Because there is a large competition in this sector and lack of differentiation, customers are driven to buy a product due to its promotions. Supreme failed in this aspect.

3) Tapal came into competition. Tapal was successfully able to take over Supreme’s customers while it was hibernating and not advertising.

Supreme, realizing the mess it had created re-launched itself as a healthy and tasty tea. This helped it differentiate itself as no tea had ever positioned itself as a healthy beverage. Supreme once again started to take its place in the market and was successful. According to the Unilever Annual report of 2012, the beverages category of the company had registered a growth of 13%. Brooke Bond itself

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registered a double digit growth during 2012. The brand continues to build its image by establishing its credentials on the health platform through sustained investments in promotions.

However, Supreme is yet to take over the Karachi market. Tapal introduced Danedar tea and now the population of Karachi prefers Danedar tea. Supreme has to take steps to make its place back again in the Karachi market.

Market ShareProduct Market Share

Direct competitionLipton 25%Brooke Bond 17%Tapal 22%Tetley 8%Unbranded Tea 40%

Indirect CompetitionBrooke Bond A1

Brooke Bond Pearl DustSohni

Kohinoor

SWOT Analysis

Strengths1. Even with its typical red color, the packaging of Brooke Bond Supreme is liked by its consumers

and is seen as being distinct from other competitors.2. The most well distributed Tea Brand in Pakistan. Can be found in big retail stores as well as small

area stores.3. To compete with Tapal Danedar, Brooke Bond has launched its assortment mixture and

Danedar.4. Tapped into an untapped market by promoting Supreme as a healthy tea. After being

scientifically proven that tea is healthy Brooke Bond turned an opportunity into a strength by positioning its tea as “Healthy and Tasty”

5. Pioneers of soft packing6. Consistent quality

Weaknesses1. No competitive advantage can be brought in this industry. Only massive advertising and

promotional activities can entice consumer for trial.2. Lack of research and development

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Opportunity1. The consumption of tea increases with the growth in population. At the moment, the population

of the country is growing at 2.9% annually and tea at a rate of 6%. This means that there is a considerable opportunity for the growth of tea in Pakistan.

2. Unilever is trying to produce tea in Pakistan. If this is successful, then much lower prices will be offered to consumers and competitive advantage can be gained in terms of cost leadership.

Threats1. There are increasing number of branded and unbranded tea in Pakistan with ample price

difference2. Unilever pays 80% as taxes on imported tea. This has resulted in a higher price for consumers.3. Tougher business climate

Target MarketBrooke Bond targets housewives of the age 22-45 across Pakistan belonging to the LSM 3-7.

Consumer Personality and CharacteristicsThe Brooke Bond Supreme Consumer is a housewife who wants to overcome the challenges in her life. She always finds a solution. She manages the budget and wants to be known as an efficient woman. She wants to have a good time with her family and cares about her family’s health.

PositioningBrooke Bond Supreme positions itself as a natural beverage that not only tastes great but is also healthy. It is a cup of tea which strengthens family ties.

Market Segmentation

GeographicSupreme segments its target market geographically. It targets the women of the Urban areas like Karachi, Multan, Hyderabad, Quetta, Peshawar, Lahore and Islamabad.

Psychographic1. Semi educated and beyond, and want to live their life to the fullest.2. Highly influenced by other females 3. Run household and take the decisions related to grocery4. Responsible5. Concerned about their own and their families health6. High on loyalty of brands if convinced on benefits

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Brand PersonalityMr. Saeed (Assistant Brand Manager) explained the brand personality of Brooke Bond Supreme in one word “Caring Harmonizer”. This explains the brand personality to be warm, health oriented and friendly.

The brand personality is conveyed by the brand through its campaigns and advertisements. They show the importance of togetherness, family and love.

This personality is perceived by Brooke Bond Supreme consumers. The consumers of this brand of tea are usually housewives who care about the health of their families and want to retain that love and togetherness in the family.

An emotional appeal is used to attract potential customers. The brand conveys the message of time moving forward and lives getting busier but Brooke Bond Supreme being there to keep families happy and together thus, exhibiting its personality of Caring Harmonizer.

Brand DifferentiationTea is taken to be a commodity in Pakistan. It is very difficult to differentiate between it. There are a few characteristics by which tea is being differentiated in Pakistan:

1. Taste2. Color3. Strength of the tea4. Type of tea (danedar, dust tea, leaf tea)

Brooke Bond Supreme found a unique differentiating factor for itself “Healthy”. After conducting research they found out that tea is actually healthy. They then positioned Brooke Bond Supreme as healthy and tasty.

This factor of differentiation also conveyed to the consumer the benefit that the tea was providing to its consumers.

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Benefits of Brooke Bond Supreme

Functional BenefitsBrooke Bond Supreme provides two functional benefits based on its positioning

1. Good Quality2. The tea is refreshing and healthy

Emotional BenefitsThe emotional benefit of Brooke Bond Supreme which is portrayed through its advertisements and promotional campaigns is:

“Brings families together with its rich tastes and traditions”

Marketing ObjectivesThe marketing objectives of Brooke Bond Supreme are:

1. Improve Market Share2. Improve equity Matrix3. Become the market leader4. Create differentiation5. Excellent Distribution

According to Mr. Asad Saeed (Assistant Brand Manager) the company cannot afford to differentiate their brand at the cost of equity. Gaining equity and market share are the brand’s most important objectives.

Marketing Strategy

OverviewBrooke Bond Supreme was the market leader in the tea category 10 years ago. It lost this position due to the decision of letting go of the unprofitable part of the portfolio. This decision cost Brooke Bond Supreme its sales and hence, the position of market leader.

Another reason that Brooke Bond faced its downfall was that it reduced its advertising around 4 years ago which let competitors like Tapal take the lead. It came back with the proposition of Safe and Healthy tea and made its way back into the market. Brooke Bond Supreme started conveying the benefits of its tea which won a lot of consumers over.

According to Mr. Saeed (Assistant Brand Manager of Supreme), marketing strategy aims at making the brand more relevant to its customers. Consumers always want relevance. It is necessary that the brand

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talks about the right things with the consumers. The brand manager must always identify the important drivers that work on the target market.

ProductThere are three types of teas available in Pakistan:

1. Danedar2. Leaf Tea3. Dust Tea

Geographically, different consumers prefer different types of teas. In Karachi, Tapal Danedar is the brand leader because the people of Karachi prefer Danedar tea. When we move towards the interior areas of Sindh, Brooke Bond Dust Tea takes over the market because the people of Sindh prefer a stronger taste and that taste is provided to them by dust tea. In the areas of Punjab, the consumers prefer leaf tea so Brooke Bond Supreme is found in large quantities in the various areas of Punjab.

PlaceThey have distribution offices in different cities from where product is distributed to whole sellers. They have divided areas into regions and then made distribution channels according to the demand of different regions and in this way their distribution network is working successfully all over the Pakistan.

Brooke Bond Supreme has a very strong distribution. It can be found all over Pakistan from big retail outlets to small area stores. However, Brooke Bond will be found in a larger quantity in areas of Punjab due to their liking of leaf tea but this does not implicate that their distribution is restricted to only Punjab. Even in Karachi, Brooke Bond Supreme can be found in many retail outlets.

PriceThe pricing strategy of Brooke Bond Supreme is competitive pricing. When compared to its competitors Brooke Bond Supreme will mostly be priced lower.

Packaging Size Price95 Grams Rs. 60

190 Grams Rs. 114475 Grams Rs. 225

1 KG Rs. 595Jar (450 Grams) Rs 275

PromotionBrooke Bond Supreme uses ATL methods as well as BTL methods to promote the product. Brooke Bond Supreme started advertising with its new proposition of “Healthy and Tasty”, they casted Shaan because he is an actor who is known nationally in every household.

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The latest advertisement they ran stared Akshay Kumar and Sonakshi Sinah. Mr. Asad Saeed the Assistant Brand Manager of Brooke Bond Supreme said “Pakistan is a Bollywood driven country”. This advertising campaign was a huge success throughout the country. It got a fantastic response and it is, now the most successful digital campaign in the history of Pakistan. Through this campaign all the targets were met and the equity matrix of Brooke Bond Supreme sky rocketed. The reason for launching this advertisement campaign that Mr. Saeed told me was that “health” was becoming boring. They needed to add excitement and through this campaign they were able to put forward all three components of the tea:

1. Health2. Taste3. Excitement

With the help of this campaign, users were starting to shift to the brand.

After this successful campaign, they came back with the message of togetherness in family. They conveyed the message that although time was moving fast there is always time for family and health. Through this they showed their brand personality.

Brooke Bond Supreme uses media campaigns, radio stations, print advertisements and outdoor campaigns for its promotion.

PackagingIn FMCGs, packaging and labeling plays an important part.

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The color of the packaging for Brooke Bond Supreme is red. Even though Brooke Bond Supreme uses the traditional red color, its consumers find the packaging attractive and distinctive from other tea brands on a shelf.

All Brooke Bond Supreme packages have “Healthy and Tasty” written on them.

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Appendix

Brooke Bond Promotion (Advertising Campaigns)

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References1. http://www.unilever.pk/our-brands/detail/Brooke-Bond-Supreme/328041/ 2. http://www.euromonitor.com/tea-in-pakistan/report 3. http://www.unilever.pk/Images/UPL%20Annual%20Report%202012_tcm96-350653.pdf

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