Degree

Master of Business Administration

Faculty / School

School of Business Studies (SBS)

Advisor

Syed Atif Murtaza Qaiser, Lecturer, Department of Marketing, Institute of Business Administration (IBA), Karachi

Client

Lipton Teas & Infusions

Committee Member 1

Dr. Shahid R. Mir

Committee Member 2

Dr Muhammad Shafique

Project Type

MBA Research Project

Keywords

Premiumization, Consumer behavior, Intrinsic attributes, Extrinsic attributes, Willingness to pay, Tea market in Pakistan, Brand positioning, Lipton tea, Tea Industry

Abstract / Summary

This report aims to understand how Lipton tea products are premiumized in Pakistan’s market while simultaneously interpreting consumer behavior, market dynamics and brand positioning. Product taste, aroma and shelf life do play a significant role in determining customer preferences for premium tea however, the main factors influencing customer preferences for premium tea are high-quality ingredients, health advantaged and a positive brand image. Alternatively, exclusivity and certifications are not very important for impacting the consumers’ decision to buy. Lipton Pakistan has a decent level of customer brand awareness and buying intent, according to our primary and secondary research. However, there is still more potential in the brand in terms of development especially in the sphere of product innovation, packaging and marketing efforts. One of their closest competitors, Tapal, has a higher share and presence in the market, which makes it even more important for Lipton to proactively take strategic initiatives. The results from our study show that there is a strong relationship between customers' willingness to pay a premium price and intrinsic qualities like flavor and quality. On the other hand, extrinsic elements like packaging and brand reputation have an effect on purchasing behavior but not a very significant relationship was identified. In our recommendations, we would suggest Lipton to plan on launching new premium blends, develop their packaging and step up its marketing so that it resonates with the perception of its high-end brand. Working with well-known personalities in the food and leisure industries could improve its premium status even more. To sum up, this report's insights give Lipton a strategic framework to improve its market position and better meet customer expectations. By addressing identified gaps and leveraging emerging market trends, Lipton can differentiate itself and capture a greater share of the premium tea segment, contributing to a more dynamic and competitive market landscape.

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Available for download on Monday, October 26, 2026

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