Pakola Tea Milk

Executive Summary:

This report is made to discuss the flaws in past advertising and communication strategies of Pakola Te
milk. We have researched about this brand and found many problems with its overall marketing
strategies. Our group has analyzed overall industry, the competition and SWOT of Pakola Te milk along
with many important key factors which can help this brand to revamp successfully.

Our main mission was to give proper advertising plan using broadcast and print media to optimum level.
This report also includes our proposed advertising campaign for the brand.

We have focused on housewives rather than the youth as our primary target audience, and used family
bonding as the platform for our brands communication.

The report contains a detailed analysis on the above mentioned aspects as well as a brief overview of the
company itself.
Contents
Executive Summary:....................................................................................................................................1
History of the Company...........................................................................................................................3
History of the Brand................................................................................................................................4
Porter Diamond Model:...........................................................................................................................4
Threat of new entrants:...........................................................................................................................5
Swot Analysis:..........................................................................................................................................9
Buyer Analysis:.......................................................................................................................................11
Critical Ad analysis of Past Advertisements:..........................................................................................12
Competitive environment analysis:.......................................................................................................13
Companys snapshot:

Pakola The Brand

Pakola is one of the most popular brands in Pakistan. The brand was created on 14th August, 1950. As
per their slogan, DIL BOLA . Pakola, they believe that Pakola is the heart beat of the nation and with
its amazing taste holds the potential to ride the taste buds of the consumers at home and abroad.
Although the green drink Pakola Ice Cream Soda is synonym with the name Pakola, but thats not all,
Pakola gives sensation by bottling other fruity flavors namely Pakola Orange, Pakola Lychee, Pakola
Raspberry, Pakola Fresh Lime and Pakola Vino.

History of the Company

Pakola was the brain child of Mehran Bottlers and Gul Bottlers. The brand was introduced into Pakistan
in 1950 by Haji Ali Muhammad. The company remains the first bottling plant in South Asia, certified
quality manufacturers as per the standards of ISO 9001:2000, ISO 14001:1996 and RVA HACCP.

The name was coined Pakola in the perspective that it would be associated with The Cola of Pakistan
symbolizing patriotic emotional bonds with the target market.

With an aggregate man power of 300 people at the Karachi office, the operations of the company are not
only limited to Pakistan but other countries as well it is the only national drink easily available in
America, Africa, Australia, Aghanistan, Canada, Middle East, New Zealand and The United Kingdom.
Karachi alone is the primary responsibility of Mehran Bottlers, whereas the rest of Pakistan is taken care
of by, Gul Bottlers.

The company does not restrict themselves to the beverage sector only, but now also the dairy industry.
Primarily they were the owners of Pakola, Bubble up, Fresh Lime, Pakola Orange Apple Sidra, and brands
like Vital Water, other than these, recent members of the clan are Fruiter and Juicina. And, now also
Pakola Milk, Pakola Flavoured Milk and Pakola Te Milk.
History of the Brand

Pakola Te Milk is a sub-brand of the brand Pakola well-known for decades for its revolutionary ice-cream
soda as their introductory product was a green fizzy drink. Pakola, the brand was created on 14 th August
1950 with their slogan, Dil Bola..Pakola for the primary focus over the spirit of nationalism and
patriotism.

Although the brand is home to many other sub-brands, however the association with the parent brand is
still very strong. Pakola still remains as the top-of-the-mind for ice-cream soda drinks.

Pakola Te Milk is a new addition to the dairy line of products, launched into the metro cities of Pakistan
where their distribution is more dense. It is a liquid tea whitener, a category in its development stage.

We tried to get this brand from many stores, but unfortunately the distribution of this product has
stopped(atleast in Karachi) as it was not available anywhere.

INDUSTRY ANALYSIS
The Tea whitener industry is a niche which was first explored by Nestle with its product Everyday which
has a 27% market share in Karachi. The whitener industrys leader is undoubtedly Open milk which is
widely used throughout the country including Karachi and has a 41% market share. Pakola tea whitener,
which was launched in 2011, is the strongest branded competitor of Tarang which holds 13% share. The
rest 19% comprises of other branded milk products which are used for the purpose of whitening tea
(including Pakola in it with condensed milk).

Porter Diamond Model:

The analysis of porters five competitive forces helps to determine the profitability of an average player
within an industry. It also helps to understand both the strength of a firms current competitive position,
and the strength of a position a company is looking to move into. it will enable a company to take fair
advantage of its strengths, improve weaknesses, and avoid taking wrong steps. Therefore, it is important
to understand the situation and to look at each of the forces individually.
Threat of new entrants:

Both potential and existing competitors influence average industry profitability. The threat of new
entrants is usually based on the market entry barriers. They can take diverse forms and are used to
prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above
zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider
to replicate the incumbents position.

Threat of new entrants in this particular industry is low because there are number of established brands
in the market. A huge amount of capital is required to enter the market. The existing firms enjoy
economies of scale because they purchase raw materials and produce finished goods in huge quantity.
The companies also invest millions of dollars for marketing purposes and most of them have got good
market share. It is difficult for a new company to enter such an industry where competition and risk for a
new entrant is too high. The existing companies also have good linkages with suppliers and distributors
which also work as a barrier for a new entrant. The only threat is from the existing companies like Engro
group entered dairy industry. Moreover the law and order situation makes an investor think twice before
investing such a huge amount, therefore overall threat of new entrant is low in this industry.

Threat of substitutes:
The threat that substitute products pose to an industry's profitability depends on the relative price-to-
performance ratios of the different types of products or services to which customers can turn to satisfy
the same basic need. The threat of substitution is also affected by switching costs

When the threat of substitutes is high, industry profitability suffers. Substitute products or services limit
an industrys profit potential by placing a ceiling on prices. If an industry does not distance itself from
substitutes through product performance, marketing, or other means, it will suffer in terms of
profitabilityand often growth potential. The threat of substitutes is high if It offers an attractive price-
performance trade-off to the industrys product

Almost all the companies offer same services and relatively similar prices. The only big substitute is loose
milk which holds about 47% market share. The threat of substitutes is medium to low.

Rivalry among existing firms:

High rivalry limits the profitability of an industry. The degree to which rivalry drives down an industrys
profit potential depends, first, on the INTENSITY with which companies compete and, second, on the
BASIS on which they compete. The intensity of rivalry is greatest if competitors are numerous or are
roughly equal in size and power. In such situations, rivals find it hard to avoid poaching business. Industry
growth is slow, Exit barriers are high, and Rivals are highly committed to the business and have
aspirations for leadership.

The rivalry among the existing firms is very high. All the firms try to exceed their market share from
competitors. The companies try to offer better quality than competitors. Exit barriers are high because if
a company tries to exit it has to incur a huge amount of loss; fixed and variable. Moreover all the brands
are me too brands as they have not much to differ. All they play is on the differentiation through
emotional appeal (or position themselves differently). Soall the firms spend huge amounts in advertising
and marketing to attain such different position in the minds of customer, therefore we can notice the
high amount of rivalry among competitors.
Bargaining power of buyers:
The bargaining power of consumers is an important force to be considered as it affects the competitive
advantage. The buyers can force prices down, demand higher quality products or services, and, play
competitors against one another, which can in turn result in potential loss.

The bargaining power of the buyers is high because the costs of switching to competing brands or
substitutes are comparatively low. Plus, the more information the buyers have the better bargaining
position they are in.

The established brands offer almost the same product and switching cost is too low. There are number
of suppliers including loose milk suppliers. Buyers also dont have much information about milks because
its of low involvement product in nature.

The huge number of customers and established brand names bring the bargaining power of buyers to
low scale. Overall the bargaining power of buyer is medium to high.

Bargaining power of suppliers:

The bargaining power of suppliers affects the intensity of competition in an industry specially when there
are a large number of suppliers or the cost of switching raw material or suppliers is high therefore an
industry with lower supplier power is more attractive.

Suppliers have a weak bargaining position whenever there are good substitutes for the items they
provide. Plus, the suppliers cannot bargain much over price and other terms of sale when the company
they are supplying is a major customer.

Bargaining power of suppliers in this industry is medium to low. Companies have contracts with the
suppliers and they fix the price of raw materials for a specific period of time. Since raw materials are
purchase on regular basis and in huge quantity it proves to be beneficial for both suppliers and Customer
Company. The Possibility of forward integration of suppliers is also very low.

Overall the industry is attractive as discussed above. As the industry is growing and all the companies
are getting a good percentage of market share.
SWOT Analysis:

Strengths

Umbrella (Heritage) brand name

Close affiliation with Pakistan (patriotism), obvious green representation
Relevancy in terms of publics, people relate to the brand, traditional history of Pakola relates it

to the traditional custom of Chai.

Being an FMCG, and being financially this stable at it, Pakola can afford to squat profits, playing

on enomies-of-scale
Always targeted to lower end customer segment of Pakistan, catering C-, up to B-, Pakola can

diverse into tea whitener category

Huge Budget allocations for marketing and promotion can help them introduce any other brand-

extension.

Weaknesses

Irrelevant extension into tea whitener category WITH THE SAME PARENT NAME PAKOLA
Pakola name closely associated with green carbonated drink with a particular taste
Brand-confusion with Pakola Milk launched in 2005-2006, a flavored milk range for children.
Advertisement and Availability disparity, available only to a few main-stream cities, flawed focus.
Advertisement Blasphemy, confused target audience identification.
Blemished brand image already, along with low and confused awareness of the rationalality of

Pakola Te Milk.

Opportunities

The tea whitener industry is still in its growing stages, and if marketed properly, product can do

wonders.
Market Gap for a low priced tea whitener for lower end consumer households, businesses and

Dhabas (if positioned accordingly)

 Brand History Pakola is actually the oldest of all direct competition in Pakistan, it can cash on

its heritage and National image.

As far as the surveys tell, Pakola Te milk is higher in quality than Tarang and tastes better than

Everyday and Tea Max with a new name, clear positioning and resolution of availability issues,

it can do wonders.
General psyche of Pakistani nation craves for a national company to do well, PAKOLA for obvious

reason holds a stronger hand.

Threats

Rigidity in people does not allow them (mostly) to shift from existing brands, per say NIDO,

EVERYDAY etc. accustomed to the taste, people generally stick to what they have, over the years.
Tarang (Direct Competitor), positioned immaculately, is getting a strong foot in the market with

each passing day, in existence of the giants like Everyday and NIDO.
Losing Market credibility with feeble advertisement and repulsive brand image, Pakola Tea Milk

is becoming the-weird-brand-to-avoid in the market, with each passing day.

The ever prevailing Doodh wale ka doodh holds a share of more than 40% of the Tea Market

complimentary.
People might not want their kids to drink it daily, cause of the particular strong smell and taste,

which kids dislike however with tea, khula doodh is readily acceptable.
Buyer Analysis:

Existing Targeted Market for Pakola Tea Milk

Social; C-, C, C+ and B-

People concerns with milk for tea, are mostly household women. Married, that puts them around 25+,
also since tea is consumed in our culture regularly, therefore this immediately puts the brand in price
efficient Criterion - People who plan on buying grocery, and do it at month end with limited budget.

Quality and taste of the milk, which would consequently determine the taste of the Tea, is highly
imperative therefore influencers are pretty much all of the family members hooked up on tea, the Tea-
holics.

Functionality of the tea whitener again is of up most significance, consumers regardless of social
class- are going to consider this aspect above all else - The taste, price and usage of Pakola Te Milk.

Demographics:

Age: 18-40 years

Gender: M/F

Mostly rural areas and low income areas of metro cities, as the brand is available at only rs.15.

Psychographics:

: People use un packaged milk as their preferred choice for tea whitener.

Consumer insight: people are resistant to change from their old habits (using their old way of making
tea).Specific habits
Critical Ad analysis of Past Advertisements:
Big idea:

Bonding to the homeland(which this advertisement not following)

Campaign idea:

Unclear(The main idea of this campaign should have been related with the launch of the product, but
the ad doesnt depict that.it is bit confused, not supporting the big idea rather blend with some Indian
bollywood styles)

Target audience:

Primary: sec C to B,youth,working class, students(sits on local dhabbas for the tea)

Secondary: Anyone who drinks tea(regular tea drinker),sec B+(who doesnt prefer going out for having
tea),housewives, sophisticated cafes

Consumer insight:

Gives you a spark in your mood(its the essence of the tea which changes your mood)

Brand positioning:

Pakola tea milk gives tea the right colour and taste

Brand personality:

Young, energetic, funloving

Appeals:

Rational:

Pakola tea milk packs shown in the advertisement at the regular interval, the posters and the pakola
standees at the back.

Emotional:

Not any in particular except for the song, making the audience to remember and associate with the
Indian movie. This is a negative aspect.

Positives and negatives:

The brand which is based upon the perfect bonding for the homeland, using Indian song
depicting the wrong image of the brand. which makes the audience to be fraught with
negative feelings towards the brand.
 Big idea is somewhere lost
Campaign idea not supporting the big idea
The realistic situation is not shown in the ad completely going against our cultural values,
as people sitting at the dhabba late night with the opposite sex
Advertisement is showing the idea of having the tea on the special occasions by dealing
with the situation so myopically, where as tea is the daily consumable item.
No such situation is shown in the advertisement with which the consumers could
associate their selves
Bad execution

Suggestions:

Big idea of being (dil say Pakistani) should be presented in the ad

It was a launch advertisement, it would be more towards letting the people know about
your product rather than just starting with developing the associations
Situation should be realistic enough so that audience could relate their selves with it,
something which is related with our culture

Competitive environment analysis:

In marketing competitive environmental analysis plays a role of a very handy tool in the identification of
the c companys competitor strength and weaknesses which ultimately steers the companys attention
towards the opportunities which one can opt for and the threat which can be transformed into the
opportunites.In a nut shell it describes the gap holes in the market, which is left to be tabbed by your
competitiors.This can be done with effective strategy formulation, implementation and monitoring.

Direct competitors:

Tarang
Tea max(haleeb)
Everyday milk(both powder and liquid)

Indirect competitors:

Open milk which is sold at the shops

Tarang:
Tarang the product of engro food corporation is positioned in the mind of the consumer as the best
combination for the tea(chai ka sai jor).its advertisements clearly present their big idea and campaign
idea. it was initially launched as the product to be targeted to the people living in the rural areas as their
primary target audience which make the corporation to earn lot of revenue for them. Its whole message
strategy is based upon that tarang is the only thing which is best combination for the tea in order to
make it a great experience for the consumers. The advertisements thet have made in order to
communicate their messages have a greater effect on the consumers in emotion terms. They portray
such situations in their advertisements with which consumers could really theriselve with. Everything is
almost in line with their big idea.

Haleeeb tea max:

Haleeb is positioned in he mind of the consumer as being the thickest milk amongst all milk products.
This attribute of haleeb makes it to be perceived by the consumers as being the brand with super quality.
Over the years it has been promoted as the best choice for the(chai bnai doodh haleeb sub say garha
doodh haleeb).This communication message really gives haleeb a competitive egde over the
competitotrs.Because mostly tea consumers dont consider the tea best until unless some sort of
thickness doest come in their tea.with that similar concept Haleeb came up with Haleeb tea max.Again
communication was based upon the similar message aas being the best choice for the tea because this
product gives falovour and colour to the tea.

Nestle Everyday:

Nestle the formidable brand which is known for its premium quality came up with Eveyday a tea
whitener. From their advertisements It can be concluded that they majorly emphasized on building and
creating relationships.firstjy came in the powder category of milk then Liquid milk also started coming in
the packs as the tea whitener.Unlike Haleeb tea max,tarang and pakola tea whitener,it has little
diversified target market.which starts with sec B and goes onward.eing the brand of nestle it doesnt face
any hurdles in term of promotional budgets ,spend a lot in promting the brand.

Analysis:

Upon analyzing the competitive environment of the pakola tea whitener, the conclusion can be drawn
that tarang came into the market with the positioning statement of being the best combination for
tea(chai ka sai jor),and targeted the rural areas of Pakistan first and now gradually spending .Haleeb tea
max came with the same promotional messages and played on the same ground of being garha and
best choice for the tea with almost same with targeting the sec of C to B+.Those consumers who
regularly go to dhabbas for the tea.Then the Nestle every day, coming up with its powder form didnt
really boost their brand as being the tea whitener.As it is a consumer insght that most of the tea
consumers believe that powder milk is not an appropriate choice for the tea.Because it doesnt give that
thickness to the tea and flavour.Then they came up with everyday in liquid form,which is doing good.But
its has little diversified target market targettin the sec of B and onwards.Advertisiements depict that its
more emphasize is on creating family bonds and relationship.pakola tea can fairly play its game on the
basis of perfect bonding to the homeland.which none of the competitors doing.
Market share:

Tarang(15%)
Every day(27%)
Open milk (41%)
Others(13%)

Open milk is consumed more.be it the matter of making kheer,sweet dish,or tea.and specifically in
villages people doesnt really use the milk available in packs.the reason being Taranga and haleeb tea
mix is behind from gaining the amrjket share is that.they are not catering the upper marke t as well.Tea is
largely consumed by the working class in Pakistan,who are usually out of gtheri homes so they the
traditional dhabbas for that,and in dhabbas open milk is largely consumed for the tea not the packet
milk.so here is another opportunity for the pakola tea whitener to target thses areas as well.