Client Name

Lipton Teas and Infusions

Faculty Advisor

Ms. Kiran Khan Ali

SBS Thought Leadership Areas

Entrepreneurship and Innovation

SBS Thought Leadership Area Justification

The project relates with Entrepreneurship and Innovation, through the push for non-traditional, opportunity-driven approaches within Lipton’s business model, including hybrid GTM solutions, partnership-driven marketing, and product innovation. It involves identifying a market gap, developing a unique value proposition, and creating strategic solutions to address unmet consumer needs. By applying entrepreneurial thinking, the project fosters creativity, resourcefulness, and a problem-solving mindset essential for launching or improving a product or service. It also emphasizes innovation through the exploration of new ideas, business models, or processes that can offer competitive advantages and drive growth. Ultimately, the project reflects the core principles of entrepreneurship by turning ideas into actionable outcomes with real-world impact.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

The project aligns with multiple UN Sustainable Development Goals (SDGs). However, It directly relates to Goal 9 & 12. The project supports UN SDG 9 by promoting innovation within Lipton’s out-of-home (OOH) market strategy. By redesigning its go-to-market (GTM) channels, engaging under tapped segments like co-working spaces and leisure hubs, and introducing product innovations such as pyramid tea bags. Simultaneously, the project supports UN SDG 12 by encouraging more efficient and responsible consumption patterns. It identifies retail leakage, proposes direct engagement with smaller clients to improve supply chain transparency, and explores opportunities for more sustainable packaging formats

NDA

Yes

Abstract

Lipton Teas and Infusions has experienced a sharp decline in its teabag market share within the Out of Home (OOH) consumption channel in Karachi, despite its long-standing dominance. This Experiential Learning Project (ELP) explored the causes behind this downturn and proposed actionable solutions. Research revealed that Lipton’s premium pricing, while supported by global brand equity, fails to resonate with cost-sensitive procurement managers who prioritize affordability, reliability, and convenience over brand image. Competitors like Tapal and Vital have gained ground by offering lower-cost alternatives. Interviews with distributors, sales staff, and OOH clients across key industries further indicated that tea is largely perceived as a commodity, with minimal brand loyalty. The study also identified a significant issue of retail leakage, where smaller buyers acquire Lipton products through informal channels, undermining sales tracking and customer engagement. To counter these trends, the report recommends direct engagement with small and informal buyers, outreach to under-served segments like co-working spaces, and partnerships with lifestyle venues. Additionally, enhancing product quality, such as through pyramid tea bags, could help reinforce Lipton’s value proposition. These strategies aim to rebuild market share, improve visibility and sales data accuracy, and better align Lipton’s offerings with the practical priorities of OOH clients.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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Available for download on Friday, June 11, 2027

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