STUDY OF TEA BRANDS IN INDIA

STUDY OF TEA BRANDS

IN INDIA

STUDY OF TEA BRANDS IN INDIA

UNIVERSITY OF MUMBAI

A PROJECT REPORT ON

STUDY OF TEA BRANDS IN INDIA

SUBMITTED BY
MR. SHAIKH ANWARUDDIN GHOUSUDDIN

TYBMS
SEMESTER V
ACADEMIC YEAR 2013-14

UNDER THE GUIDANCE OF

MR. MIHIR WADIWALA

CHETANAS
HAZARIMAL SOMANI COLLEGE OF COMMERCE AND
ECONOMICS
BANDRA EAST, MUMBAI 400051.

STUDY OF TEA BRANDS IN INDIA

DECLARATION
I, SHAIKH ANWARUDDIN OF THE CHETANAS H.S. COLLEGE OF COMMERCE
AND ECONOMICS, BANDRA (E), HEREBY DECLARE THAT I HAVE
COMPLETED THE PROJECT ENTITLED STUDY OF TEA BRANDS IN

INDIA IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE THIRD

YEAR OF THE BACHELOR OF MANAGEMENT STUDIES COURSE FOR THE
ACADEMIC YEAR 2013-2014

I FURTHER DECLARE THAT INFORMATION SUBMITTED BY ME IS TRUE AND

ORIGINAL TO THE BEST OF MY KNOWLEDGE.

DATED: ____________
PLACE: ____________

______________________
Signature of Student
(SHAIKH ANWARUDDIN GHOUSUDDIN)

STUDY OF TEA BRANDS IN INDIA

CERTIFICATE
THIS TO CERTIFY THAT MR. ANWARUDDIN G. SHAIKH OF
T.Y.B.M.S. (SEMESTER-V), HAS SUCCESSFULLY CARRIED OUT
THE PROJECT WORK ON THE TOPIC OF STUDY OF TEA BRANDS
IN INDIA IN PARTIAL FULFILMENT OF BACHELOR OF
COMMERCE MANAGEMENT STUDIES (BCMS) AS PER THE
CURRICULUM LAID DOWN BY THE UNIVERSITY OF MUMBAI
FOR THE ACADEMIC YEAR 2013-2014.
THIS IS A BONAFIDE PROJECT WORK AND TO THE BEST OF MY
KNOWLEDGE, THE INFORMATION PRESENTED IS TRUE AND
ORIGINAL.

Internal Examiner

Co-ordinator

External Examiner

Principal

Date: _________
Place: ___________

College Seal

STUDY OF TEA BRANDS IN INDIA

ACKNOWLEDEGEMENT
APART FROM THE EFFORTS OF ME, THE SUCCESS OF MY PROJECT DEPENDS
LARGELY ON THE ENCOURAGEMENT AND GUIDELINES OF MANY OTHERS. I
TAKE THIS OPPORTUNITY TO EXPRESS MY GRATITUDE TO THE PEOPLE
WHO HAVE BEEN INSTRUMENTAL IN THE SUCCESSFUL COMPLETION OF
THIS PROJECT. I WOULD LIKE TO SHOW MY GREATEST APPRECIATION TO
MR. MIHIR WADIWALA. I CANT SAY THANK YOU ENOUGH FOR THIS
TREMENDOUS SUPPORT AND HELP. WITHOUT HIS ENCOURAGEMENT AND
GUIDANCE THIS PROJECT WOULD NOT HAVE BEEN MATERIALIZED.
I ALSO WISH TO EXPRESS MY GRATITUDE TO CHIEF COORDINATOR PROF.
SHIVAPRASAD FOR PROVIDING ME AN OPPORTUNITY TO DO MY PROJECT
WORK. THE SPECIAL THANKS TO ALL THE PROFESSORS OF CHETANAS
HAZARIMAL SOMANI COLLEGE OF COM. AND ECO. FOR THEIR KIND
CO-OPERATION TO THE COMPLETION OF MY PROJECT WORK.
THE GUIDANCE AND SUPPORT RECEIVED FROM ALL THE PROFESSORS OF
CHETANAS WHO CONTRIBUTED TOWARDS THIS PROJECT IS VITAL FOR
THE SUCCESS OF THE PROJECT, I AM GRATEFUL FOR THESE CONSTANT
SUPPORT AND HELP. LAST BUT NOT LEAST I WISH TO AVAIL MYSELF OF
THIS TO THANK MY PARENT FOR THEIR MANUAL SUPPORT, STRENGTH AND
HELP FOR EVERYTHING.

_______________
(SHAIKH ANWARUDDIN GHOUSUDDIN.)

INDEX

STUDY OF TEA BRANDS IN INDIA

SR
NO.

CHAPTERS

PAGES

1.

INTRODUCTION

07-08

2.1

HISTORY TEA

09-10

2.2

HERITAGE OF INDIAN TEA

11

2.3

HISTORY OF PACKET TEA

12-16

3.1

OVERVIEW OF TEA INDUSTRY

17-19

3.2

TYPES OF TEA

20-23

3.3

MARKET PLAYER

24-30

4.1

SUSTAINABILITY OF TEA BRANDSPERSPECTIVE

31-39

5.1

RESEARCH METHODOLOGY

40-41

5.2

QUESTIONNAIRE

42-43

5.3

DATA ANALYSIS

44-63

6.1

CONCLUSION

64-65

6.2

BIBLOGRAPHY

66

STUDY OF TEA BRANDS IN INDIA

CHAPTER 1

1.1 EXECUTIVE SUMMARY

Tea is a part and parcel of Indian social, economic and cultural life. Indians cannot think of a
day without their favorite cup of tea. Tea is the most popular non-intoxicating beverage in the
world enjoyed by the rich and poor alike.
A drink popular with the intellectuals and the happy-go-lucky crowd. The Annual Book Fair of
Kolkata, India, is dotted with tea stalls. Indian literature and especially Bengali literature is
replete with incidents of steamy discussions over tea. In India, we have less of formal tea parties,

STUDY OF TEA BRANDS IN INDIA

in British style. "Adda" or an informal get-to-gather is what we usually associate with tea.
Roadside tea is immensely popular among the masses. It is quick, convenient and has a unique
taste.
The Indian Tea industry was founded in the first half of the 19 th century with the discovery of
wild tea plants in Assam. Gradually, tea was cultivated, local tea markets came up and tea
companies were formed.
Tea is finally packed into wooden chests or jute bags for delivery to warehouses before being
auctioned. Tea from the gardens is also packed into consumer packs and sent to distributors.
Being one of the world's largest producers of tea, India requires a large network of tea producers,
retailers, distributors, auctioneers, exporters and packers. The tea industry of India acts as one of
the largest workforces in the country.
Tea is one of the most refreshing and popular beverages of the world. India is one the largest Tea
producer in the world. Indian tea is the finest quality in the world. Tea is being cultivated in the
high ranges of Northern and Southern India.
This project of mine analyzes tea brands in India & customer preferred tea brands. I hope this
report of mine will be useful for future references

STUDY OF TEA BRANDS IN INDIA

CHAPTER 2

2.1 HISTORY OF TEA

Tea is often thought of as being a quintessentially British drink, and we have been drinking it for
over 350 years. But in fact the history of tea goes much further back.
In the world, tea is second only to water in being the beverage of choice. It has many uses, such
as to bring on sleep, restore good health, calm in times of stress, and simply add to the enjoyment
of a solitary afternoon by the fire or a good old chinwag with friends. It can be taken hot or iced,
plain or with lemon, milk or sugar, and drunk from a hefty mug.

STUDY OF TEA BRANDS IN INDIA

The word tea refers to the leaves or flower buds of the shrub Camellia sinensis and is known as
pure teas; however infusions can be made from steeping any leaves, berries, flowers, root, bark
or seeds in boiling water. The Chinese first brought to light the pleasures of tea drinking around
4,000 years ago, and called it the gift of heaven. It was first referred to in the writings of the
emperor Shen Nung in about 2737BC, and legend has it that he insisted that his drinking water
always be boiled, as he had noticed that those people who did so appeared healthier than those
who did not. One day as the water was boiling, some leaves from an overhead branch blew into
the pot; he was attracted by the fragrance, drank it and voila! The venerable cup was born.
After the advent of the East India Trading Company when England began doing business directly
with the East, the first commercial tea plantations in India were started. In the 1930s another fad
hit tea dances. These were held in hotels and local halls, and attracted hundreds of people
during weekend afternoons, where they would gather to eat, drink and dance to the sounds of the
big bands. During World War II, the government made sure that all factory workers were
provided with tea in spite of the rations, in order to maintain morale a ritual that was
unmovable by the hand of God or man!

2.2 HERITAGE OF INDIAN TEA

If we think only big corporate names need to think about things like brand names, think again.
Our brand says a lot about us and our business, and that's as true for a local gymnastics gym as it
is for a multi-national conglomerate. In this we look at how creating a strong brand for our
business can help us set ourselves apart and lay the right foundation for the growth of our
business.
Our brand is more than just our business name or the logo on the newspaper ad. It is our
corporate identity. An effective brand tells people who you are, what you do and how you do it,
while at the same time establishing your relevance to your customers.

STUDY OF TEA BRANDS IN INDIA

Your brand is how your business is perceived by customers. If your brand has a high perceived
value, you enjoy many advantages over your competition, especially when it comes to pricing.
Why do you think people are prepared to pay exorbitant money for brand items? Perceived
value; perceived value as a result of very effective brand promotion resulting in high recognition.
.
Your brand needs to say who you are, what you do and how you do it. It needs to do all these
things at the same time as establishing your relevance to your prospective customers. It is
absolutely essential as you build your own brand, that you have a firm grasp of who you are. A
good place to begin thinking about your mission is to put yourself in the shoes of your
customers.

2.3 HISTORY OF PACKET TEA

At the turn of the 20th century, the emphasis being mainly on tea production for export and the
need to keep the British consumers well supplied with their teas, not much attention was paid to
the internal market that was practically non-existent. It consisted mostly of special tea caddies
imported into India. Liptons caddies Green Label enjoyed a small presence.
The earliest reference to a domestic market is contained in a letter written by JRF Mackay of
Brooke Bond to Arthur Brooke, who was then the Chairman of the UK Company. Equipped with
capital and premises, Mackay settled down to serious business.

STUDY OF TEA BRANDS IN INDIA

While it has now become the accepted management style to think in terms of objectives and
strategies, it is interesting to note that even as early Mackay clearly identified his objectives:

To pick up teas suitable for Brooke Bond blends at home, rather than getting them at
Mincing Lane (London Auction Centre)

To create and make profitable, a packet and blended tea trade in India and generally in the
East.

In 1903 demand for tea as a beverage was not only

non-existent but the tea habit itself was considered a
vice imported by the Englishman along with
cigarettes and whisky. Much of India was extremely
orthodox and all foreign habits were considered
alien and against Indian ethos and culture. Shudh
ghee' (pure clarified butter) and Dhoodh Piyo
drink more milk were catchwords and slogans in
the Indian society. In fact, later, when tea was
officially promoted by the Tea Market Expansion
Board, strong religious pressure groups launched
anti-tea propaganda with vigorous campaigns against tea drinking.

STUDY OF TEA BRANDS IN INDIA

The domestic market was very small and hardly able to support a viable Lion. Almost all the tea
consumed in the country was in packet form and nose teas came into consideration only when
demand and consumption surged in the forties and fifties.
Packing material, mainly caddies and cardboard cartons, were imported the UK and the tea was
floor-blended and hand-packed. An interesting of costs and a profit and loss statement is made
available to us from the archives of Brooke Bond of India.
Someone called Skipworth who was in charge among other things, with his attention to the
Agency business, reported the results for the year 9a4. Sales totalled around 17,000 lbs and the
whole operation produced a loss of 5/8 of a pence/pound without inclusion of overheads and
other costs. It therefore needed a great commitment to
persevere this kind of a venture.
Around the 1920s, Liptons were firmly established
with their imported and Mackay, who was still in
overall charge of the Indian operation, refers to the
difficulty of dislodging them from their well
established onopo1y. From this we can deduce that
whatever packet tea business there was in India was
confined to the expatriate staff of the British
establishments, who had their favourite Lipton Tea
with imported Huntley & Palmer biscuits!
The details of distributing the tea were left in the
hands of wholesalers or agents who received
commissions varying from two to five percent on
standard retail prices.
One such agent was Baksh Ellalue & Co., whose main business seems to have been tobacco and
who had branches in Karachi, Bombay, Madras, Delhi, Rangoon and Cawnpore. They were also
agents for Imperial Tobacco Co.

STUDY OF TEA BRANDS IN INDIA

In the early decades of the last century, from 1900-1930, the Indian Tea Cess Committee, which
later became the Tea Market Expansion Board, sold packet tea at heavily subsidised prices and
remained a serious competitor to Lipton and Brooke Bond until this policy (perhaps through
budget constraint( was given up in the 1930s. This made it possible for the private companies to
sell their teas at more remunerative prices and also expand their sa1es.
Brooke Bond records show that they reached an average weekly sale of 1426 chests (1 chest 50
lbs) in 1930 (1.6 mg for the year), increasing to 24,000 chests per week in the early 1960s (28
mg per year).
Backed by the promotion and propaganda efforts of the Tea Market Expansion Board that
became the Indian Tea Board through the pioneering efforts of l3rooke Bond (more about this
later), a strong demand was created for tea as a beverage and the Indian masses avidly took to
tea. However, much of the fallout of this phenomenon went to loose teas because of the price
factor, so we see a strange development in the packet teas trade in India. In the early years, i.e.
the first three decades of the century, the trade was predominantly in the hands of foreign
companies and the incipient demand was centred on a small segment, introduced to tea through
the Western industrial civilization. There was nothing Indian about Indian packed tea. The names
were all foreign English names. The early brand names were based on colours Red label,
Violet label, Green label.
The fact that Brooke Bond Red Label recorded 720 lbs was a very auspicious augury for this
famous brand, which attained dizzy heights in later years to become the largest selling brand in
the world.
In India however, the main consideration was price, one that the lower economic section of the
Indians could afford. When the brands were first launched in the first decade of the century, they
were priced between nine annas per lb for Red Label the cost of the tea in the packet was
roughly 60% of the total price. Despite this, prices were considered high. But the demand had
been created and was snowballing opening the floodgates to loose teas, which were at least
20% cheaper than the corresponding tea in packets.

STUDY OF TEA BRANDS IN INDIA

The depot system or direct selling system helped in introducing tea to the vast population of
India but it meant a heavy investment in marketing in the earlier years. It helped in establishing a
two-way communication between the salesman and retailer and cemented a personal relationship
between them. For a product like tea, where freshness was an important factor, it helped in
ensuring stock rotation. Under this system, the companies like Brooke Bond and Liptons, who
followed suit through their own personnel, called on all retail outlets on a regular basis and
supplied tea on a cash-on-delivery basis. There was no need for the retailer to carry any large
inventory, as the calls were on a weekly basis.
The system backed by the effective propaganda by the Tea Board really sparked off a
consumption explosion, taking India to the position of the largest tea-drinking nation in the
world. Today tea has become established as a food habit in all socio-economic sections.

STUDY OF TEA BRANDS IN INDIA

CHAPTER 3

STUDY OF TEA BRANDS IN INDIA

3.1 OVERVIEW OF TEA INDUSTRY

The tea industry in India was created to satisfy England's desire for high quality black teas
without dependency on trade with China. First, the British East India Company's monopoly of
the tea trade and its dominance over India where the Company maintained the largest private
army in history had to be broken. At the same time growers and tea experts were experimenting
with seeds, plants and cuttings secured from China which they believed would grow in India's
climate. Notably, an indigenous strain of tea plant growing wild in India had been discovered
years earlier. The year 1838 marked the first Indian tea harvest, a mere 350 lbs., to be auctioned
in London. It was greeted with much excitement and high reviews from tea experts.
In 1858 the British East India Company turned its rule over India to Britain. The stage was set
for the rapid expansion of tea product. As it turned out the indigenous plants produced tea far
superior in quality to the Chinese transplants. And so the Indian tea industry was born. Now
India produces more tea than any other country.
The tea industry is also denied the benefit of deductions under section 80 HHC of the Income
Tax Act, 1961. Under section 33AB of this Act, assesses engaged in growing and manufacturing
tea are allowed a deduction limited to only 20 per cent of their profits. Other industries are
allowed 100 per cent deduction on profits from export production.
The tea industry is also denied the benefit of deductions under section 80 HHC of the Income
Tax Act, 1961. Under section 33AB of this Act, assesses engaged in growing and manufacturing
tea are allowed a deduction limited to only 20 per cent of their profits.

STUDY OF TEA BRANDS IN INDIA

The tea industry in India was earlier suffering from stagnant production and low price
realizations. 1996-97 was a year of turnaround and 1997-98, a year for consolidation for the tea
industry. In these years almost all the tea companies in the country have witnessed increase in
sales and profits.

Indian Tea Industry at a glance:

Total turnover is approximately $2.25 billion.

Total Net Foreign Exchange earned is approximately is $413 million p.a.

Tea production, since independence has grown over 250%.

Generates income and livelihood for nearly 20 million people in the country.

Women constitute 50% of the workforce.

India is the largest producer and consumer of tea in the world.

Notable Progress:

Assistance is also being extended for establishment of a small Tea Research Field Laboratory
in Uttaranchal in order to develop a scientific package of practices suitable for cultivation of
tea in Kumaon region.

The project on application of Bio-technological tools in tea breeding which has been
coordinated by the Department of Bio Technology and partly funded by Tea Board is in the
final stages of completion.

A pilot plant has been set up at TRA Jorhat under the project on application of electronic
devices in tea manufacturing and automation which has been coordinated by the Ministry of
Information Technology.

With the establishment of pesticide residue testing laboratories in the North East and South
India, scientific data on residue in tea have been generated for developing a national protocol
which is now being considered by the Prevention of Food Adulteration Authorities (PFA) and
also Inter Governmental Group on tea of FAO (Food and Agriculture Organization) towards

STUDY OF TEA BRANDS IN INDIA

harmonization of MRL. The standards as stipulated in the European Commission and other
countries are also being circulated to the tea industry from time to time.

The National standard on quality of tea were revised and harmonized with the International
standards. Similarly the quality parameters of the International standard ISO 3720 were also
revised. The drafts for revised specifications for green tea have been finalized for publication.

3.2 TYPES OF TEA

Black tea
Formed by withering, rolling, oxidizing, and drying the fresh leaves, black tea today hails largely
from the mountainous areas of India, Sri Lanka, and Kenya. Enjoy the touch of honey flavor in
Mighty Leaf Teas Organic Darjeeling Estate.

STUDY OF TEA BRANDS IN INDIA

Green Tea

Green tea is made solely with the leaves of Camellia sinensis that have undergone minimal
oxidation during processing. Green tea originates from China and has become associated with
many cultures throughout Asia. It has recently become more widespread in the West, where black
tea is traditionally consumed. Many varieties of green tea have been created in countries where
they are grown. These varieties can differ substantially due to variable growing conditions,
horticulture, production processing, and harvesting time. Over the last few decades green tea has
been subjected to many scientific and medical studies to determine the extent of its longpurported health benefits, with some evidence suggesting that regular green tea drinkers may
have a lower risk of developing heart disease and certain types of cancer.

STUDY OF TEA BRANDS IN INDIA

White tea
White tea is a lightly oxidized tea grown and harvested almost exclusively in China, primarily in
the Fujian province.
White tea comes from the delicate buds and younger leaves of the Chinese Camellia sinensis
plant. These buds and leaves are allowed to wither in natural sunlight before they are lightly
processed to prevent oxidation or further tea processing. This preserves the characteristic flavour
of the white tea. The name "white tea" derives from the fine silvery-white hairs on the unopened
buds of the tea plant, which gives the plant a whitish appearance

STUDY OF TEA BRANDS IN INDIA

Herbal Tea
Herbal tea, tisane, or ptisan is a herbal or plant infusion and usually not made from the leaves of
the tea bush (Camellia sinensis). Typically, herbal tea is simply the combination of boiling water
and dried fruits, flowers or herbs. Herbal tea has been imbibed for nearly as long as written
history extends. Documents have been recovered dating back to as early as Ancient Egypt and
Ancient China that discuss the enjoyment and uses of herbal tea. Among Chinese, herbal tea is
commonly known as liong cha (Cantonese) or liang cha (Mandarin).

STUDY OF TEA BRANDS IN INDIA

3.3 MARKET PLAYER

Tea has an enormous market. The world consumes approximately 3.5 billion cups of tea daily.
At an average of two cups a day per consumer, that is 1.75 billion consumers per day. It is
unlikely that any other beverage, other than water, is consumed to such an extent all over the
world.
The packaged tea market is highly consolidated in India, with Unilever and Tata Tea accounting
for almost half of retail value sales. Unilever (Brooke Bond and Lipton) is the clear leader,
holding over 30% of the market share, while Tata Tea (Tata) trails it with almost 20%. The
remainder of the market is far more fragmented and shared between numerous small players
Both Unilever and Tata Tea saw a fall in retail sales as a direct result of the drop in the price of
tea between 2000 and 2003. These mainstream players also saw their margin squeezed in the
face of increased advertising spends and competition from unpackaged tea.
Of the total Indian tea market, branded packaged teas account for 33-35% by volume. Hindustan
Unilever leads with around 43-45% market share of the packaged tea market, while Tata Tea is
the No. 2 with around 17-18% market share. Apart from these two players and Duncans, the
market is extremely fragmented with many smaller /regional players. There is other market
player who gave tough competition to the leading player. Though other players are not very
popular they have their limited market for their product. Some brand has regional market for
their product and gain profit out of it. The main market leaders are TATA TEA LTD and HUL
subsidies Unilever which has dominate the tea market. Following are the some important market
player in tea industry. They areas follow:
Assam Tea Company
TATA TEA LTD
HLL (Hindustan Lever Ltd) Unilever
Brook Bond Tea
Goodricke Group Ltd

COMPANY PROFILE

STUDY OF TEA BRANDS IN INDIA

Assam Tea Company:The Assam Tea Company is the first tea company
in India established 150 years ago. A part of the UK
based Duncan MacNeill Group; ASSA owns 28 tea
estates in the North Eastern part of the country.
Besides bulk tea, the company sells packed tea under
brands like Regular, Jumbo, Premium and tea bags
under the umbrella Assam Gold. The company also
has a large export market in Europe and is looking at
expanding its presence in other countries.

TATA TEA LTD:Tata tea ltd set up in 1964 as a joint venture with UK-based James Finlay and Company to
develop valued-added tea, the Tata
Tea Group of Companies, which
includes Tata Tea and the UK-based
Tetley Group, today represent the
world's

second

largest

global

branded tea operation with product

and brand presence in 40 countries.
Among India's first multinational
companies, the operations of Tata
Tea and its subsidiaries focus on
branded product offerings in tea but
with

significant

presence

in

plantation activity in India and Sri Lanka.

STUDY OF TEA BRANDS IN INDIA

The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86
per cent of its consolidated turnover with the remaining 14 per cent coming from bulk tea,
coffee, and investment income. The company has its headquarters in Kolkata, and 51 tea estates
in the states of Assam, West Bengal, Tamil Nadu and Kerala and one coffee estate in Tamil Nadu.

Products and brands:The company has five major brands in the Indian market Tata Tea, Tetley, Kanan Devan,
Chakra Gold and Gemini catering to all major consumer segments for tea. The Tata Tea brand
leads market share in terms of value and volume in India and has been accorded "Super Brand"
recognition in the country. Tata Tea's distribution network in the country with 38 C&F agents and
2,350 stockiest caters to over 1.7 million retail outlet in India.
The company has a 100 per cent export-oriented unit (KOSHER & HACCP certified)
manufacturing instant tea in Munnar, Kerala, which is the largest such facility outside the United
States. The unit's product is made from a unique process, developed in-house, of extraction from
tea leaves, giving it a distinctive liquoring and taste profile. Instant tea is used for light density
100 per cent teas, iced tea mixes and in the preparation of ready-to-drink (RTD) beverages.
With an area of 26,500 hectares under tea cultivation, Tata Tea produces around 60 million kg of
black tea annually.

Exports:Tata Teas export volumes have risen through these years but realizations are at lower side. There
has been growth in exports of Sri Lankan high value teas in traditional Indian market. This
provides us an opportunity to recapture market share through quality up gradation particularly
from South India. South Indian teas are very similar to Sri Lankan teas.

Marketing Initiatives: Tata Teas top brand commands market share of 7.4%, whereas HLLs top brand market
share is 6.9%.

STUDY OF TEA BRANDS IN INDIA

Agni brand from Tata Tea stable launched two years ago has garnered a market share of
3.5%.

Tetley Group Ltd: It is Subsidiary of Tata Tea Limited.

A global player in tea: the world's Number 2 tea bag company, with a presence in over 35
countries worldwide.
Market leader in United Kingdom and Canada, a vibrant player in other major tea
markets such as USA, Australia, Poland and France.
Pioneer in the tea industry, with an enviable record of developing some of the most
innovative concepts in the world of tea: soft packaging, perforated tea bags, round tea
bags and the Drawstring tea bags.
Unmatched global tea buying and blending skills: among the most respected name in the
industry for its expertise in buying and blending, with nearly 100 years of experience
between senior tea tasters.
Unmatched global tea buying and blending skills: among the most respected name in the
industry for its expertise in buying and blending, with nearly 100 years of experience
between senior tea tasters.

HUL:HUL, 51.6% subsidiary of Unilever Plc, is the largest

FMCG company in the country, with a turnover of

STUDY OF TEA BRANDS IN INDIA

Rs118bn. The companys business sprawls from personal and household care products to foods,
beverages and specialty chemicals. The company has a dominating market share in most
categories that it operates in such as toilet soaps, detergents, skincare, hair care, color cosmetics,
etc. It is also the leading player in food products such as packaged tea, coffee, ice cream and
other culinary products.
HUL enters in Japan with tea bags. Its fast moving consumer goods major, has added Japan as
its new market for tea exports and some orders have already been dispatched. HUL has also
added to its customer base the US, Australia, China, Hong Kong, the Philippines, Singapore,
Vietnam and Thailand markets. HUL established a dedicated global sourcing base comprising
factories at Pune, Kochi, Etah and Kolkata. The brands exported are Lipton, Lipton Yellow
Label, Lipton Brisk, Brooke Bond, Brooke Bond Red Label, and Taj Mahal. All of them are in
the tea bag format, apart from the West Asia business where the format is packet tea. In addition,
HUL also exports instant Tea and Lipton 3-in-1 pre-mix (tea, milk and sugar) to some of these
countries.

Brook Bond Tea:Brooke Bond cheers senses. Brooke Bond's heritage

dates back to 1869. With its 130-year experience in
understanding tea and Indian consumers, Brooke Bond
has been synonymous with tea in India. At Rs.1000

STUDY OF TEA BRANDS IN INDIA

crores, Brooke Bond will emerge as the largest brand of Unilever in India, It will touch the
homes and hearth of over 500 million consumers -- one of every two Indians -- with the largest
footprint in the country.
Brooke Bond's logo shows green tea gardens transforming to the red liquor of tea, and a multicolored sun that stands for specific moments of tea consumption.
Brooke Bond Red Label Tea was launched in the year 1903, which makes it one of the oldest
brands of tea in the country. It also has the distinction of being the largest brand of tea in India
and has a truly national presence. For years, Red Label has stood for good quality tea and it can
be easily called as one of India's favorite tea brands.
The brand was re-launched in the year 2000 with a new product formulation, wherein long
Assam orthodox tea leaves were added to the base CTC (crush tear and curl) tea to deliver
enhanced taste.
The brand is backed by the Brooke Bond Tea Excellence Centre. Selecting the best teas from the
best gardens, Brooke Bonds specialists work hard to scientifically process green leaf to cheer
consumers. In the unique Tea Excellence Centre of Brooke Bond, tea is expertly graded, blended
and tasted to get the perfect blend.

Goodricke Group Ltd:Goodricke

Group

Ltd

(GGL) is a part of the UKbased Lawrie Group. GGL

has a joint venture tea
company in Nepal named Himalaya Goodricke and a subsidiary, Tiru Tea. The Goodricke Group
is the leading producer of Darjeeling Tea and the third largest tea producer in the country. The
company manages 36 tea gardens spread all over India. Incorporating the highest technological

STUDY OF TEA BRANDS IN INDIA

standards in its production of tea, the company is a symbol of excellence giving a perfect blend
of quality and care in every cup of tea. Today, with worldwide acclaim, Goodricke group
manufactures and markets a wide range of tea. Primarily a seller in the auction market,
Goodricke now has an equal proportion of sales in the bulk and packet tea segments, besides a
significant presence in the export market.
Tea major Goodricke Group Ltd, which is part of the UK-based Camellia Plc, has begun relaunching all its packet tea brands. It also plans a new, exclusive brand for south India. To start
with, the company recently re-launched Goodricke Perfect packet teas across India. This is a
blend of 40 per cent Darjeeling and 60 per cent Assam CTC (crush tear and curl) teas. Goodricke
3-in-1 would follow next and, later, the Zabardast brand. While Goodricke 3-in-1 is the main
brand, Zabardast targets the mass segment. The company also had a soft launch for Goodricke
Premium late last year in Gujarat. This brand would soon be launched all over India. Goodricke,
which is mostly a bulk tea player, has been in the packet tea business for over 17 years now.
However, most of its packet tea sales are in the country's northern half. It enjoys good market
share in Madhya Pradesh, Punjab, Haryana, West Bengal, Rajasthan, Jharkhand and Uttar
Pradesh. Goodricke's presence in south India, which is predominantly a branded packet tea
sector, is almost negligible.

STUDY OF TEA BRANDS IN INDIA

CHAPTER 4

4.1 SUSTAINABILITY OF TEA BRANDS - PERSPECTIVE

The tea Industry in India has a 170 years old history. The credit for creating Indias vast tea
empire goes to the British, who discovered tea in India. The East India Company after losing its
monopoly in China in 1832 has taken up cultivation of Tea in India (Assam) in 1834. The first
commercial batch of Tea ever produced outside of China came from Assam in 1839.
Since then, tea continues to be the most popular drink in India. From official conferences to
railway station, tea (chai) remains the favorite hot beverage among Indians (almost 85% of the
total households in the country consume about 81% of the total tea produced). This sector is
critical to Indian economy. The Tea Industry is one of the oldest organized firm sectors with a
large network of tea producers, retailers, distributors, auctioneers, exporters and employees.
India is one of the worlds largest producer and consumer of tea, which accounting for 27 percent
of the world production and around 1213 percent of the world tea export. Tea export from India,

STUDY OF TEA BRANDS IN INDIA

estimated at Rs 17.31 billion during FY 2012, accounting for 0.4 percent of countrys export in
value terms, tea ranks as the fourth-largest agro export item from India. The industry employs
around 1.27 million at the plantation work and 2 million people indirectly of which 50 percent
are women workers (second largest employer in the organized sector after Indian Railway). In,
India, there are about 1700 processing units engaged in tea production; while around 1671 big
(more than 100 hectares) planters with an output of 700-725 mkg. The estimated 0.141 million
small growers have an annual output of only around 237 mkg. Indias large tea plantations are
mostly concentrated in Assam and North-Bengal. Assam alone produces 51 percent of the
national production. Tea production in India during 2012, declined by 1.2 percent to 944 mkg, in
comparison with an increase of 1.1 percent in 2011; but it is expected to increase to around 960
mkg in 2013. Besides, as an agro-based industry, the development of plantation industry has
contributed greatly towards rural development and urbanization of remote hilly areas by
optimum use of land, opening up road and other communication network in those areas.

Recent developments
Inspite of its importance, tea industry of India is going through a crisis phase since 1990s. The
industry has witnessed many structural changes during recent years, which include emergence
of small tea growers in place of large plantation and introduction of bought leaf factories (BLF).
The present crisis has led to the closure of many tea estates (e.g., 20 estates in Kerala, 30 in West
Bengal, about 70 in Assam have close down since the late 1990s). It is estimated that more than
60,000 plantation workers have lost their jobs since 2002 and livelihood of another tens of
thousands are threatened. Workers of the running estates are facing wage cut, tougher picking
demand, job insecurity and the actualization of work, appalling living and working condition etc.
In early 2005 the tea industry witnessed major companies withdrawing from production and
concentrating on the packaging/retailing sector (e.g. Tata. Tea, HLL etc in India). They intend to
focus on brand building business and on exploring the market substantially, rather than on the
plantation business, which is a low margin segment.
In the market, the rising competition at domestic as well as international front has deepened the
crisis of tea industry of India. The changing world order of last decade has left its own impact on
the industry. The coming down of the Berlin wall and the disintegration of the former USSR

STUDY OF TEA BRANDS IN INDIA

have led to many changes in industrys export market. The first, second and the third world are
moving towards free globalized economy, where free trade and free flow of investment funds are
the order of the day. Consumers in the developed world are moving towards healthier products
and quality assurance, which put pressure on the export of tea from India.
Although, per capita consumption of tea in India is amongst the lowest (64 grams), but in volume
terms India is the largest consumer. Since 1970, India has become the largest absolute consumer
of tea after UK (Table 2). Larger domestic demand has given a new direction to the tea industry
in the recent years.

Major causes of the crisis

Despite Indias historical success with the tea industry, in recent years, the industry has faced
serious competition in the international and national market, which has lead to the present crisis.
Many factors have been cited as causing the crisis in the Indian tea sectorsince the late 1990s.
Analysts agree that the dramatic fall in prices is one of the most significant causes of the crisis.
The worst affected are plantation workers and small growers; many estates failed to withstand
the downward slide of price and hence moved out of business leading to the closure of tea estates
that employ thousands of workers and of factories (BLF) to which small growers might sell their
products. Tea prices in India are being driven down by many factors:
a) Decline in demand for Indian tea in the global market
b) Defects in auction system
c) Poor price realization
d) Defective market structure
e) Increase in cost of production
Defects in auction system
Indias tea market is facing yet another paradox which could be explained in terms of glaring
gulf between the price charged by dealers and retailers. A 2012 report for the International

STUDY OF TEA BRANDS IN INDIA

Labour Organization (ILO) notes that the large tea companies are benefiting from fall in auction
prices and rise in retail prices for tea. This widening gap between consumer and auction prices
is cutting into the margins realized by the tea producers but is not being passed on to the
consumer in the form of lowered tea prices. Similarly a report by the Government of Assam
published in 2012, found it unfathomable that the retail price of tea has not come down with the
fall of auction price. Certainly, the margins of intermediaries are far too high. Price paid to
plantation and small tea growers has fallen since 1998; retail prices for tea have increased.
Average price for medium quality tea sold in Indian market increased from Rs.85-90 per kg in
1999 to Rs.120-150 per kg in 2012 and it continues to rise.
In India, nearly 55 percent of total tea produce is sold through auction houses, with the rest sold
through private sales. Even after the abolition of compulsory auction in 2012, the auction houses
are very important constituent of tea marketing structure. The important feature of tea auction
sale is that the producers/growers do not take part in the selling process directly. The brokers in
the market (few in number who are registered brokers in specific auction center) sell tea on
behalf of producers. Brokers generally do not accept bid from unknown buyers.

Many industry

insiders also believe that the large buyers have co-operated on the auction floor to keep tea price
low. An independent report commissioned by the Indian Government in 2012 also suggested a
merging of interest between broker and buyers, as well as co-operation between buyers at auction
houses, both of which prevented tea growers from fetching a fair price at auction.
The large buying companies use their market power (as they have their own network of sales and
marketing all over the country and export tea after blending) to push down price and take the
advantage of depressed market to pay low prices; they are clearly benefiting from the current
situation. Hindustan Lever, Tata Tea, Williamson Magor, etc. are such powerful buyers having
enormous influence on the market and price of tea in India in general and Assam tea in particular.
These big tea companies, which are in monopolistic competition in consuming countries, always
try to stabilize prices.

STUDY OF TEA BRANDS IN INDIA

The longer transaction time and higher transaction cost (like warehousing charges, transportation
cost, brokerage charges etc.) Are some other problems with the auction system? It takes about
35 days for the entire transaction processes to complete.

Poor Price realizations

The price of tea has been on long term decline while production costs have been rising, putting
pressure on tea growers and working condition of labourers. The decline in prices has been
primarily due to growth in production in the face of sluggish demand. Low prices for tea are
generally passed on to the plantation workers in the form of low wages and withdrawal of basic
facilities like food, health, education, etc. given that it is easier to cut cost by reducing labour
cost (as the labour has weak bargaining power) than raising the price of tea (difficult in the
competitive market economy) and in most of the cases producers have to remain competitive by
lowering wages. Major causes of poor price realization are due to following reason:

Competition between producing countries for a share of the world market was one of the
major causes of falling price of Indian tea. World production of tea is fairly diversified and
not concentrated in a particular area. Presently 36 countries of the world produce tea and
many of them are big producers. They prevent the establishment of a monopolistic leader in
the world tea market to ultimately allow fair and free competition in the market.

Demand for tea is rising very slowly (1.5-2 per cent), therefore the only way to increase
market share of export by a country is at the expense of the competitors.

Because of the dominance of auction system as a daytoday intermediary between

producers and buyers, the actual producers have been unable to maintain direct contact with
the ultimate customer of tea and thereby creating a long term relationship.

STUDY OF TEA BRANDS IN INDIA

Tea is a perishable product. Its quality and flavour deteriorates very quickly. Therefore it is
frequently necessary to cut prices to clear stocks.

Tea producers have to stay in market despite cut in prices of their produces as they have
invested a huge sum of money; many people are dependent on it and lack of alternatives for
them.

Defective market structure

The tea supply chain comprises all the stages from green leaf production from the bushes to
finished product and sale to the customers. Value is added to the tealeaves at each stages of the
supply chain, each with associated cost. This includes the cost of plucking and sorting, factory
packing, internal transportation, ware housing, sales changes (auction or direct sale), freight,
insurance, interest, blending, packaging and retailers sales cost etc. In general most of the
agricultural produces, value addition is done at the downstream in the higher processing and
retail stages of supply chainthis is also true with tea. While tea is ready to drink item, the
downstream stages such as blending, packing and ultimate marketing are the most profitable one.
This part of the value chain is controlled by handful multinational tea packers and brokers.
Concentration is extremely high in the downstream of tea supply chain where 90 percent of
western tea trade is controlled by 7 (seven) MNCs, 85 percent of world production is sold by
these MNCs. (HUL, TATA). As a result, these MNCs can considerably influence world retail
price. These are the indications that big companies have been influential in keeping world market
price low, which affect the sustainability of tea industry.

STUDY OF TEA BRANDS IN INDIA

Increase in cost of production

While market prices for tea have been falling, the cost of production has been on the rise in
India, putting downward pressure on profitability and income. One factor which is closely
related to the cost of production is, of course, productivity in terms of volume per hector which is
affected by change in climate, soil fertility, age of the tea bush, high over-head cost, poor
agricultural practices etc. The stagnation in productivity in many big estates is compounded by
high land labour ratio. Productivity declined in India from 1996 to 2009 in the large garden.
Labour cost accounts for around half of the unit cost of production and approximately 55 to 75
percent of that labour cost is on plucking. High fuel cost, dilapidated infrastructure including
transportation and unstable law and order situation in and around garden area etc. result in high
cost of production. Field and factory workers productivity is also considered low in India. The
impact of social cost (health, food, housing, water etc.) in the large estates in percentage terms
works out to about 5-8 percent of the total costs. Therefore it is assumed that around 80 percent
of the cost of production goes towards fixed expenses like fuel, power and labour. Inflationary
pressures are now pushing up these fixed costs further. Labour unrest is another major problem
faced by planter/estates. Looking into the profitability of the industry at the current price does
not provide the way to meet these costs. Rising costs and low productivity can have negative
consequences on social and environmental aspects of production (sustainability problem), if
these costs cannot be passed on to the ultimate buyer. (Source: Indian Tea Scenario 2010)

STUDY OF TEA BRANDS IN INDIA

Recommendations for improvement

Despite being the largest producer and consumer of tea, the Indian plantation sector lacks
appropriate mapping of production and consumption levels. Due to absence of accurate
estimates the formulation of long term industry wide action plans have been affected.

The fact which emerges from the present crisis is that Indian tea has not been globally
competitive. It has concentrated more on building up its large estates and has given less
attention to processing and improving the quality by proper blending and marketingfor
higher price realization of their products.

Unlike its key competitors, India does not have any powerful brand to support its promotion
drive in the international market. To win back the confidence of lost foreign markets,
Accenture (a global consultancy firm) has identified the need to revitalize the image of
Indian tea in that international market. A vigorous campaign which include Indian tea logos
and making Indian brands acceptable in those markets. Further, an inspection agency should
be appointed to keep a quality check on the tea that is exported, as the study also
recommended that a major thrust should be made to improve quality for the long term
sustainability of tea industry of India.

Study done by the United Nations Food and Agriculture Organization has suggested the need
for reducing the unit cost of production through productivity gains, capacity building of small
growers, streamlining marketing channels, improving infrastructure, tailoring marketing
activities to individual countrys demand, propagating health benefits of tea and promotion of
organic tea using the tea mark. This is exactly what the domestic tea companies should do
for their long term survival.

STUDY OF TEA BRANDS IN INDIA

Improvement of supply chain management inside the country and global tea marketing
network.

CHAPTER 5

STUDY OF TEA BRANDS IN INDIA

5.1 RESEARCH METHODOLOGY

Marketing Research is the systematic design collection, analysis, reporting of the data and
findings relevant to a specific marketing the industry. Marketing research has proved an essential
tool to meet all the needs of marketing management. These needs include information regarding
products, prices, market conditions of demand and supply, consumer needs and desires, selling
methods, physical flow of goods, competitive decisions, external marketing environment and
other factors of Marketing Management. Marketing Research process involves the identification
of problems, research design, collection of the data, and interpretation of the data for reporting
the conclusion to solve the specific problems.
RESEARCH OBJECTIVE
Determining the research objectives is the most important step in marketing research. It is
essential to frame the ultimate and operational objectives of the marketing research which is
decided considering costs and techniques of research. The more important objectives are those
that describe the required data for the decision needs. The group has defined its objective as to
study the preferred tea brand, wherein the group has surveyed the consumers as well as the
potential consumers of TEA sector.

SAMPLE SIZE:
100 samples

SAMPLE DATA COLLECTION SOURCE:

By mail (Surveymonkey.com)

STUDY OF TEA BRANDS IN INDIA

LIMITATION:

We have done only convenience sampling for our research due to less availability of time
We stick only to the convenience sampling because, we can easily get the relevant and proper

data for our research.

We have covered only a limited area of Mumbai as it was not possible for us to cover whole

Mumbai.
There is limitation in resources used due to limited studies as we cant go depth of it.

5.2 QUESTIONNAIRE
FROM CUSTOMER POINT OF VIEW
1) How many Tea Brands do you know according to the age?
2) How many people used branded tea / unbranded tea?
3) How many people heard the various tea brand?
4) Which brand has most attractive advertisement?
5) Which tea is most regularly used?
6) How people become to know about their tea?
7) Bases on which people buy tea?
8) How much tea people buy in a month?
9) People satisfy with the prices?

STUDY OF TEA BRANDS IN INDIA

10) People who think quality as well as quantity good with respect to price?

FROM THE RETAILER POINT OF VIEW

1) How many retailer keep branded tea, unbranded tea or both?
2) Retailers keep the following brands in their store most?
3) On what basis Retailer selects particular tea for their stores?
4)

Bases on which customer buy tea?

5)

How many retailer seen advertisements on television?

6)

Which Brand Advertisement attracts the most?

7)

Which Tea has more demand in the market?

8)

Whether retailer gets feedback from customer or not and what kind of feedback they
get?

STUDY OF TEA BRANDS IN INDIA

5.2 DATA ANALYSIS

Market research is normally done by conducting market survey. Survey is done on two bases; i.e.
from customer point of view and retailer point of view.

From Customer Point of View: AGE GROUP:-

As per the above pie chart it is said that 33% of people from age group 36-45 are know the most
different type of tea available in the market. So any tea company needs to concentrate their
marketing strategy to get their customer to know about their tea. They need to develop a good
marketing skill so that they can concentrate on other segment also.

STUDY OF TEA BRANDS IN INDIA

OCCUPATION:-

As per the above diagram it is seen that most of the house wife know the various brands of teas
even though they are not working. Companies who are want to enter into the tea market they
should concentrate on the factor that how can they convert the other segment of occupation to
used or to know about the tea.

STUDY OF TEA BRANDS IN INDIA

HOW MANY PEOPLE USED BRANDED TEA / UNBRANDED TEA:-

According to survey, it is found that most of the people used branded tea i.e.76%. Those who are
not used branded tea they prefer to use loosed tea which gave them a good taste, quality as per
their views taken. Therefore companies who want to enter into tea market or who are already
there they should keep in mind that they should touch feelings of other people i.e.24% who are
prefer to use unbranded tea and convert them in to use branded tea.

STUDY OF TEA BRANDS IN INDIA

HOW MANY PEOPLE HEARD THE VARIOUS TEA BRAND:-

As per the above graph, it is seen that most of the people heard the brands like society tea, Brook
bond Red Label Tea, Tata tea, Taj Tea, Girnar Tea, Tata Gold Tea, Sapat Parivar Chai. But in
actual sense they use something else. Some companies like Tata, HLL (Unilever) brand Brook
Bond Red Label are concentrating on their major product and ignoring the other product in the
same field i.e. tea. Therefore every company should adopt such promotion strategy that they can
get the people who at least know their products of tea.

WHICH BRAND HAS MOST ATTRACTIVE ADVERTISEMENT:-

STUDY OF TEA BRANDS IN INDIA

As per the above chart, it is seen that most people like Brook Bond Red Label i.e.24% after that
Society Tea and Taj Tea i.e. 17% and 15% respectively. Other companies should concentrate on
their advertisement because most of the people get the information about the tea through the
television advertisement and they influenced to buy that tea. Companies also should use some
catching and attractive slogan or punch line because of which people can like their advertisement
and think to buy at least once.

WHICH TEA IS MOST REGULARLY USE:-

STUDY OF TEA BRANDS IN INDIA

According to survey, it is found that Society Tea is used by more people i.e. 32%. After that
loose tea is more used i.e.22% and then Brook Bond Red Label i.e.20%.Therefore other
companies should published or telecast their teas advertisement and influenced people to buy tea.
While using the advertisement they should adopt AIDA model i.e. (Attention, Interest, Desire,
and Action). Because most attractive advertisement is not enough to captured the market. For
example Brook Bond Red Label Tea has good advertisement and people like their advertisement
also but less people prefer to use this tea. So all company should concentrate on the AIDA model
and can earn more market.

HOW PEOPLE BECOME TO KNOW ABOUT THEIR TEA:-

STUDY OF TEA BRANDS IN INDIA

From the above diagram, it is seen that most people come to about their tea through television
i.e. 57% people know from it and then word of mouth publicity i.e.42% Other media such as
radio, print does not have that much popularity. Therefore company can introduced their product
through these media. As it required cheap cost. Company also put their hoardings in the retail
store as a print media. Because retailer can play a role to promote the tea which create a good
awareness about the tea and can increased the publicity of the tea.

BASES ON WHICH PEOPLE BUY TEA:-

STUDY OF TEA BRANDS IN INDIA

As per the survey conducted it is found that most of the people buy the tea on the quality bases
irrespective of prices. 82% people want their tea should be qualitative instead of quantitative.
People want quality in the tea it should contain good taste and flavored. Therefore while
processing; companies should concentrate on the quality of tea. There are also some people looks
into the prices, quantity but it because of they cannot afford to pay high prices. Some people also
think other factors such as attractive, safe and durable packaging.

HOW MUCH TEA PEOPLE BUY IN A MONTH:-

STUDY OF TEA BRANDS IN INDIA

Quantity of tea to buy from shop is mainly depending on the number of family member drink the
tea. Normally people having family member not more than 6 they buy tea of 500 grams. How
much to buy is totally depends on the number of family member drink tea. But if a company
wants to launch a new product or renew the existing product then they should make available in
a small sachet. It is also useful to those who consider price as a main factor while purchasing tea.
People are also buy tea more than 1 Kg.

PEOPLE SATISFY WITH THE PRICES:-

STUDY OF TEA BRANDS IN INDIA

According to survey taken it is found that 91% people satisfy with the prices of the tea. They
dont find prices are too high. But those think prices are not satisfying it because of their income
level and they think that quantity is not as per the price.

STUDY OF TEA BRANDS IN INDIA

PEOPLE WHO THINK QUALITY AS WELL AS QUANTITY GOOD

WITH RESPECT TO PRICE:-

As per the survey conducted, it is seen that most of the people say that whatever they pay, they
get in return in terms of quality and quantity. Around 97% people are satisfied and get a positive
reply for paying on their own favorite tea. They said that while buying they did not take price
into consideration because tastes, flavor, good feeling after drinking tea are important. But 3%
people say, they need not received the quality and quantity as per the prices they paid, therefore
these people are mostly use loose tea.

VARIOUS OTHERS SECOND PREFERENCES GIVEN BY THE

PEOPLE:-

STUDY OF TEA BRANDS IN INDIA

It is found while doing survey, when people are given a chance to change their tea they are not
willing to change their preference because they are too used to their favorite tea that they are not
want to switch on to other tea. These are basically including 25% of people. There are also some
people who are ready to change their own tea and used other tea. In this around 21% people are
ready to change their own tea to Society Tea. After that they give preference to Brook Bond Red
Label Tea which has 14% of customer.

From Retailer Point of View:

HOW MANY RETAILER KEEP BRANDED TEA, UNBRANDED TEA OR BOTH:-

STUDY OF TEA BRANDS IN INDIA

Some retailer keeps both kind of tea in their store which is branded and un-branded tea in their
shops. Un-branded tea includes basically loose tea and this is preferred by most of customers for
that retailer has to keep it. In un-branded tea there are number of tea which is very famous as this
tea carrying some special feature and for that customer like to buy it and again retailer have to
keep it. Some retailer likes to keep branded tea only.

RETAILERS KEEP THE FOLLOWING BRANDS IN THEIR STORE

MOST:-

STUDY OF TEA BRANDS IN INDIA

According to the survey, it is seen that number of retailer keeps society tea in their retail shops. It
is around 80% of retailer keep society tea. After that Tata tea is also available quickly in the retail
shops and this is around 65%. In third position we have Brook Bond Red Label, loose tea and
Girnar tea etc these tea are mostly every retailer has in major quantity and also as per the
customer requirements. A retailer normally keeps the product in store which has demand in the
market by the customers.

WHAT BASES RETAILER SELECTS THEIR PARTICULAR TEA FOR

THEIR STORE:-

STUDY OF TEA BRANDS IN INDIA

While keeping any tea in the shop a retailer must take one thing into consideration that is
customer demand for the particular tea and quality of that tea. It is the view of most of retailer
that they like to keep those teas which normally demanded by most of customers as it is the
customers who are going to buy that tea and this is beneficial for both customer as well as
retailer. The companies also take one thing into consideration that quality of product is an
important selling factor in any tea instead of prices of tea.

BASES ON WHICH CUSTOMER BUY TEA:-

STUDY OF TEA BRANDS IN INDIA

In survey it is also found that when customer feel to buy a particular tea that time he first think
about the quality and test of that tea and after that customer decides to buy or not. And then
customer concern about quantity, price, and brand image and company reputation. The company
with a good reputation in the market should concentrate on the quality of tea and hence they can
earn various market shares in the market.

HOW MANY RETAILER SEEN ADVERTISEMENTS ON TELEVISION:-

STUDY OF TEA BRANDS IN INDIA

A retailer mostly sees advertisements on the television when they are free from their own work
because most of their time is spend in their shops. 75% retailer who watches television likes
advertisement and 25% retailer said that they are not watching television

RETAILER LIKE THE MOST ATTRACTIVE ADVERTISEMENT IS:-

STUDY OF TEA BRANDS IN INDIA

As per the above graph 75% retailer who watch television like most attractive advertisement of
Society Tea i.e.59% . After that, retailers like Brook Bond Red Label advertisement very much
i.e. 27%.

TEA WHICH HAS MORE DEMAND:-

STUDY OF TEA BRANDS IN INDIA

According to the survey it is seen from the retailer that society tea has more demand by the
customer. Society has a demand of 57%. Customer likes the society tea very much even after a
price of this tea is very high this feedback normally gets from the retailer. After society retailer
have demand for the Tata tea in the customer market which is around 31%.

WHETHER RETAILER GETS FEEDBACK FROM CUSTOMER OR

NOT AND WHAT KIND OF FEEDBACK THEY GET:-

STUDY OF TEA BRANDS IN INDIA

From the above chart it is seen that around 85% retailer get feedback from customers. These
feedbacks is basically about the taste of the tea, quality, and brand image and also get extra
information like some extra benefit received from the tea relating to health. And very less
i.e.15% people are not used to give feedback. But most of the customers prefer to give feedback
to their respective retailers.

STUDY OF TEA BRANDS IN INDIA

CHAPTER 6

6.1 CONCLUSION

As per the survey taken, it is found that most of the consumer likes the advertisement of tea
but they in actual sense use some other brand.

It is also found that people are not interested in switching on the other brand. They give more
preference to the brand which is use from beginning.

STUDY OF TEA BRANDS IN INDIA

Consumer heard about the brand but not use the same brand.

In a survey it also found that consumer seen the advertisement and some time they like the
advertisement also but not ready to buy the tea. Therefore company which is into the tea
industry, they should concentrate on the advertisement which turned the consumer mind set
and induced them to buy the tea.

They should come up with the small sachet because of which consumer can buy their brand
at least once.

Companies should come with the new ideas which give the information about the how tea is
useful to our health and should concentrate on the quality of the tea.

Companies should published their advertisement through other media also i.e. print media,
radio as it required less cost and nowadays people are turning to this media also.

6.2 BIBLIOGRAPHY

Sustainable livelihoods for Indian Tea Workers: The International Dimension, Department
of International Development, Tradecraft Exchange (May).

Tea consumption data stirs up a storm, Business Line, Friday. August 29.
www.thehindubusinessline.com/2003/08/29/stories/20030829

STUDY OF TEA BRANDS IN INDIA

Sharma, Ashok B. (2012) Tea Industry in crisis: Has corporate farming failed? The
Financial Express, Oct 18.

Tea Board, Tea Statistics, Kolkata

Marketing Management by RamaSwami

www.google.com

www.indiainfoline.com

www.altavista.com

www.HUL.com

www.tatatea.com