HAMDARD INSTITUTE OF

MANAGEMENT SCIENCES

MARKETING MIX OF

TETLEY TEA

Submitted By: Mohammad Zohair Imtiaz

GR # 2201176

Syed Irfan Hasan

GR # 2201191

Submitted To: Mr. Faizullah Jawad

Course Name: Principles of Marketing

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Acknowledgement

If the words are considered as symbols of approval and tokens of

acknowledgment, then let the words play the heralding role of expressing my gratitude.

We would like to thank Mr.Omer Qadri, General Manager Marketing &

Operations, Clover Pakistan Limited, Lakson Square Building No. 2 Sarwar Shaheed Road

for permitting us with the required information for our project. We would also like to thank

Mr. Asghar Ali, Consultant Tetley Clover (Private) limited who helped us in editing and

supporting me in spite of all inconveniences and problems arising from time to time to

complete the project. They deserve all praise and we thank them for their help and endurance.

We would also like to thank my family and friends for their support as this project

could not be completed without their support and encouragement. We are very much thankful

to them.

Above all, I thank our respective Teacher Mr. Faizullah Jawad for his advices,

without which the successful completion of this project would not have been possible.

Muhammad Zohair Imtiaz

Syed Irfan Hasan

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Table of Contents

Acknowledgement ......................................................................................................................... 2

Four P’s Of Marketing Mix ........................................................................................................... 5

Product .................................................................................................................................. 5

Price ....................................................................................................................................... 5

Place ....................................................................................................................................... 5

Company Profile ............................................................................................................................ 6

Company Structure: ............................................................................................................ 6

Lakson Group of Companies............................................................................................. 6

Introduction ....................................................................................................................... 6

Mission Statement .............................................................................................................. 6

Lakson group of Companies ............................................................................................. 7

Foreign Affiliations ............................................................................................................ 10

Tetley Clover (Pvt.) Ltd. ............................................................................................................. 11

History of Tetley ................................................................................................................. 11

It all began in 1837 .......................................................................................................... 11

The Tea Bag hits Britain ................................................................................................. 11

More innovations followed .............................................................................................. 11

Tetley owners through the years ..................................................................................... 11

Tetley Group ................................................................................................................................. 12

Product ................................................................................................................................ 12

Dana Chai ........................................................................................................................ 12

Mixture Tea ...................................................................................................................... 12

Tetley Gold ....................................................................................................................... 12

Patti Chai ......................................................................................................................... 12

Packaging of Tetley Tea: ................................................................................................... 13

Sachet Packs .................................................................................................................... 13

Box Packs ......................................................................................................................... 14

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New Arrival .................................................................................................................................. 14

Price .............................................................................................................................................. 15

Place ............................................................................................................................................. 16

Place in supermarket: ........................................................................................................ 16

Promotion ..................................................................................................................................... 17

Their Promotional Plan ..................................................................................................... 17

Promoting in the supermarkets ....................................................................................... 17

Setting up stalls: ............................................................................................................... 17

Suggestions: ..................................................................................................................... 17

Promotional event for Tetley Tea launching:................................................................. 18

Advertisement ................................................................................................................... 18

TV Commercials .............................................................................................................. 18

Pakistani Tea Culture – Tea Consumption ..................................................................... 18

Issue of Tea in Pakistan: ................................................................................................. 18

SWOT Analysis ............................................................................................................................ 19

Strength ............................................................................................................................... 19

Weakness ............................................................................................................................. 19

Opportunities ...................................................................................................................... 19

Threats................................................................................................................................. 20

Suggestions .......................................................................................................................... 20

Health & Tea ................................................................................................................................ 20

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Four P’s Of Marketing Mix

Product - A tangible object or an intangible service that is mass produced or manufactured

on a large scale with a specific volume of units. Intangible products are service based like the

tourism industry & the hotel industry or codes-based products like cell phone load and

credits. Typical examples of a mass produced tangible object are the motor car and the

disposable razor. A less obvious but ubiquitous mass produced service is a computer

operating system. Packaging also needs to be taken into consideration.

Price – The price is the amount a customer pays for the product. It is determined by a number

of factors including market share, competition, material costs, product identity and the

customer's perceived value of the product. The business may increase or decrease the price of

product if other stores have the same product.

Place – Place represents the location where a product can be purchased. It is often referred to

as the distribution channel. It can include any physical store as well as virtual stores on the

Internet.

Promotion - Represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements: advertising, public relations, word of

mouth and point of sale. A certain amount of crossover occurs when promotion uses the four

principal elements together, which is common in film promotion. Advertising covers any

communication that is paid for, from cinema commercials, radio and Internet adverts through

print media and billboards. Public relations are where the communication is not directly paid

for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade

fairs and events. Word of mouth is any apparently informal communication about the product

by ordinary individuals, satisfied customers or people specifically engaged to create word of

mouth momentum. Sales staff often plays an important role in word of mouth and Public

Relations (see Product above).

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Company Profile

Company Structure:

Lakson Group of Companies

Lakson Square, Building # 2, Sarwar Shaheed Road, Karachi -74200 Pakistan.

Phone: 92 21 568 5867 – 569 8000

Fax: 92 21 568 4712 - 568 3410

Introduction

The Lakson Group with its core businesses centering on consumer package goods generates

sales revenues of around Rupees 29 Billion (approx. US$ 500 Million) annually, through its

manufacturing, marketing and service companies in Pakistan. The Group provides direct

employment to around 11,500 persons.

Here is the brief building map of Lakson square

1st Floor: Group office, administration office, Reception & meeting rooms.

2nd Floor: Tetley Tea, Payroll group, Titan Watches.

3rd Floor: Colgate Palmolive, Clover Pakistan.

4th Floor: Colgate Palmolive Purchase, Marketing & Sales, Research, Quality

Assurance, HR.

5th Floor: Clover Pakistan

6th Floor: Lakson Investment, Tritex Cotton.

7th Floor: Cyber net, Siza Group, Merit Packaging.

8th Floor: Siza Foods (McDonald), Accuracy Surgical Limited, Singaporean

Conciliate.

9th Floor: Century Paper & Board Mills.

10th Floor: Lakson Business Solutions, Cafeteria where employees can go for

hygienic food for their lunch.

11th Floor: Masjid for men and separate praying Room for women.

Mission Statement

“To Build a Successful Business model that encompasses the

Needs of our customers, our shareholders and our Employees”

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Lakson group of Companies

Accuracy is a non-listed public limited company with two factories located at Sialkot

in Punjab. It has fully integrated facilities for complete manufacture of stainless steel

surgical, dental and veterinary instruments of highest standards and specifications. Accuray

also manufactures a wide range of manicure implements (such as scissors, tweezers and

nippers), electronic pliers and forceps and hobby tools. Accuracy‟s entire production is

exported overseas and is FDA (of USA) certified.

Century Paper and Board Mill Limited is one of the largest integrated Pulp and

Paperboard Mills of Pakistan. The company‟s current installed capacity is 85,000 tons of

Paper & Board, 30,000 tons of Straw Pulp and a Box Making Plant of 15,000 tons. It holds

approx. 23% share of total market of paper and paperboard production in Pakistan major

CPBM sales are to the Industrial Consumers while Duplex Board (coated and uncoated) is the

prime product.

In order to provide un-interrupted power supply for continuous process Century Paper

and Board Mills (CPBM) Plant a 12.3 MW Power Plant was set up in 1996 as a wholly

owned subsidiary of Century Paper and Board Mills. It consist of three 4.1 MW each

Wartsila Engines using Furnace Oil as fuel. We are now planning to convert these engines to

gas fired engines to improve efficiencies and environmental standards. CPGL has been

providing stream of dividends to CPBM improving financial returns besides being a ceaseless

power supply for operations.

Incorporated in 1986, the company entered into a Licensing Agreement with Kraft

Foods In 1988 to manufacture Tang in Pakistan. Clover distributes other Kraft Food products

like Toblerone chocolate, Philadelphia cheese and Maxwell House Coffee and in Pakistan. In

addition it also distributes Lacnor fruit juices manufactured in the UAE by Al-Buheira, a

Sharjah based company.

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Initially incorporated as National Detergents Limited, a 100% local Company in

1977. Colgate-Palmolive Company, USA granted license to manufacture and market their

products in Pakistan in 1985. In 1990 Colgate-Palmolive Company, joined as equity partner

in the company and the name was changed to Colgate-Palmolive (Pakistan) Limited.

Cyber Internet Services (Private) Limited incorporated as Private Limited Company

in April 1996 and commenced its commercial operations in March 1997. Since its inception,

the company achieved a considerable customer base both in individual and corporate sector

with its efficient, reliable, dynamic and professional services. Cyber is the first ever ISP in

Pakistan to acquire ISO Certification, which reflects its objectives of providing high quality

services, improving customer satisfaction, maintaining effective Quality Management

Services and improving the e-awareness among customers. Cyber Internet Services (Private)

Limited has become the first Co-location and Application Service Provider in the country by

providing turnkey solutions to the consumers and enterprises for connectivity, networking,

messaging and collaboration and application hosting.

Lakson Business Solutions (LBS) is a crucial name in the Lakson Group of

Companies, Pakistan. It is a promising IT solution provider of Pakistan with strong emphasis

on customer needs, providing them with IT solutions that not only cater to their current needs

but are also designed to handle future enhancements. Over the years, LBS resources have

successfully completed software projects with a number of companies in the local as well as

foreign markets. LBS is proud to be ISO 9001:2000 certified which indicates it's streamlined

and mature internal processes and quality standards. In addition, LBS is on its way to

achieving a CMMI level 3 (Capability Maturity Model Integration) certification.

HASAN ALI KARABHAI Foundation was established to undertake various

financial aid programs and charitable contributions. The Foundation owns and operates a

multi-storied office building in the center of Karachi and the entire rental income from this

property is being utilized for philanthropic purposes.

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Merit Packaging is situated in Karachi and is engaged in printing and converting

paper and board into quality packaging material. It is the second largest printing and

packaging company in Pakistan. The plant is equipped with modern offset printing machines

and sophisticated packaging equipment of various capabilities. Merit has also developed an

in-house art department, which enables it to provide better service to its clients.

Princeton Travels (Pvt) Limited is a Government Licensed IATA Travel Agency of the

Group, established to expand activities in Air Travel/Air Freight businesses in Pakistan.

Siza Foods (PVT) Limited has entered into a joint venture with Development

License (DL) Agreement with M/s McDonald Corporation USA and have set up eight

restaurants in Karachi and Hyderabad. To further expand the business another company

GAM Corporation (Pvt.) Ltd. has been formed under Development Licensee (DL) Agreement

with M/s. McDonald Corporation USA and has set up ten restaurants in Lahore and

Faisalabad.

TRITEX COTTON MILLS LIMITED, a public limited company, is the first venture

of the Group into the textile sector. It started production in August, 1990.The project is a state

of the art cotton spinning unit and is equipped with 25,920 spindles. The entire equipment has

been imported from Japan and China. The company has its own power generation of 4.4 MW

for its in house consumption. Currently Tritex is in process of expansion to further increase of

6,800 spindles, which will reach a total of 32,720 spindles by December 2004.

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Incorporated in 2003, Tetley Clover Pvt Ltd is the new venture of Lakson Group of

Companies. A joint collaboration between the Tetley Group of UK and Lakson Group of

Companies, Tetley Clover promises to bring its customers the complete cup of Tea. Keeping

in mind the varying needs and distinct culture of both urban and rural Pakistan, a purpose-

built factory in Hub, Baluchistan manufactures three different blends; Tetley Dana, Tetley

Patti and Tetley Mixture to suits the varying taste buds of its consumers.

Foreign Affiliations

1. COLGATE-PALMOLIVE COMPANY INC. (USA).

1.1.1. Equity holding in Colgate-Palmolive (Pakistan) Limited.

2. KRAFT GENERAL FOODS INC. (USA).

2.1.1. Licensing arrangement with Clover Pakistan Limited, with equity participation option.

3. McDonald’s CORPORATION, (USA).

3.1.1. Equity in Siza Foods (Pvt) Ltd.

4. TELTEY OVERSEAS HOLDINGS LIMITED 4.1.1. 50:50 Joint Venture with Tetley Clover (Private) Limited.

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Tetley Clover (Pvt.) Ltd.

History of Tetley

It all began in 1837

In 1837, two brothers, Joseph and Edward Tetley started to sell tea and became such a

success that they set up as tea merchants. In 1856, in partnership with Joseph Auckland, they

set up "Joseph Tetley & Company, Wholesale Tea Dealers".

Joseph Tetley and Co tastes success. Business was good and the company grew. As well as

selling tea, Joseph Tetley & Co also began to blend and package it. In the 1880s they began

to sell tea to the United States of America, and started to bring ideas back; one of these was

the tea bag.

The Tea Bag hits Britain

Tea was rationed during World War II, it was not until 1953, just after rationing finished, that

Tetley launched the tea bag to the UK and it was an immediate success. The rest, as they say,

is history. The tea bag had captured the public‟s imagination and desire for convenience.

Within 10 years it revolutionized how Britons drank their tea and the old fashioned tea pot

had given way to making tea in a cup using a tea bag.

More innovations followed

Since the 60s, Tetley has continued to develop people‟s love of tea drinking by introducing

innovative and exciting ideas in many different countries. In 1989 we launched the round

tea bag, latching on to the fashion to drink tea in a mug, rather than a cup. Next came the

Drawstring „No drip, no mess‟ tea bag.

Tetley owners through the years

1974 Tetley Tea Company was bought by J Lyons who merged it with the Lyons tea business

to form Lyons Tetley. 1978 Allied Breweries acquired J Lyons‟ Businesses then as Allied

Domecq sold them in the 1990s. The Tetley Group was created in July 1995, when a group

of investors bought what was then the world-wide beverage business from Allied Domecq.

On 10th March 2000, The Tetley Group was sold to Tetley Tea Limited, one of the world‟s

largest integrated tea businesses.

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Tetley Group

It is a Joint Venture between Tetley UK & Lakson Group which was formed in 2004, the

Tetley tea caters to the Black Tea drinking masses of Pakistan and the tea segments include

Leaf, Dust & Teabags.

Product

Tetley is not diversifying in products but only deals in tea.

The Products of Tetley tea are;

Dana Chai

Blend Characteristics:

Smoothest blend available

Bolder grains

Dark red color

Alluring aroma

Rich taste

Mixture Tea

Blend Characteristics:

Mix of different type of tea

Dark red color

Karak taste

Alluring aroma

Tetley Gold

T-BAGS Blend Characteristics:

Tetley T-Bags have a higher number of perforations

For faster infusion & maximum flavor delivery

Smooth aromatic blend

Rich color & taste

Patti Chai

Blend Characteristics:

Small leaves

Quick liquoring

Dark red color

Alluring aroma

Karak taste

Though Most of the above mentioned varieties have not been launched in Pakistan.

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Packaging of Tetley Tea:

Customer perception of a package creates brand equity and purchaser loyalty. The image

presented by the package largely determines success or failure of a tea line. Appearance

stimulates memories and emotions inside the purchaser, who Most of the times are female,

and often buying for her entire family. Color, image and slogan all combine to facilitate

customer allegiance. Tetley tea is available in market on the basis of size of its packaging.

Tea Bags Pack

Tetley Gold 100 Tea Bags

Front View Back View

Side View

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Economy Pack

Tetley Gold 1KG Economy Pack

Box Packs

Tetley World 100g, 200g &400g Box

New Arrival

Tetley World 10g Sachet

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Price

Tetley Company Price

Retailer Price

Consumer Price

Tetley World 10g Sachet

( New Arrival ) 4.06 Rs. 4.31 Rs. 5.00 Rs.

Tetley World 32g SACHET 19.50 Rs. 20.60 23.20 Rs.

Tetley World 100g Box 38.69 Rs. 41.38 Rs. 48 Rs.

Tetley World 200g Box 81.48 Rs. 85.34 Rs. 99 Rs.

Tetley World 400g Box 155 Rs. 162 Rs. 188 Rs.

Tetley Gold 100 Tea Bags 159.72 Rs. 176.72 Rs. 205 Rs.

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Place High quality for a reasonable price can be bought from shankiyari & Mangora and will then

be blended and packed. The final product will be distributed to Retailers such as

Supermarkets and main tea shops so the end consumer has easy access to it.

Place in supermarket:

On the middle and lower levels the Tetley Tea should be placed according to the content of

tea bags. 40 bags should be placed higher than the ones containing more bags Nearly 1,000

people worldwide work for Tetley, at its headquarters in Greenford, UK and in Australia,

Canada, Poland, Russia, the USA, Pakistan, Bangladesh, India and South Africa. Tetley is

part of Lakson group of companies, one of Pakistan‟s biggest business corporations.

Tetley is available in 67 countries around the world some of them are listed below;

Australia

Canada

Estonia

France

Great Britain

Latvia

Lithuania

Malta

Poland

Spain

Sweden

USA

Pakistan

India

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Promotion The promotion is the most important point

to launch/promote a product because it

helps in competing with other competitors.

Tetley Clover (Pvt) ltd is focusing on the

point that the Pakistanis like to bargain and

buy a product that offers free gifts.

Tetley is planning to launch a couple of

promotional activities that would help them

in capturing a better market share that they

currently have in their possession.

Their Promotional Plan

Promoting in the supermarkets

Setting up stalls: Tetley plans to set up a

stall in different supermarket in order to

provide free tasting to the clients.

The stall will be placed in the area close to

the eatables section, so that customers have a better access to the stall.

The stall will represent the brand with the color of the company, the logo & the environment

with proper seating facility for customers to relax and have hot tea. Moreover, the Tetley stall

workers should provide some presents to the children like toys, balloons, Pen‟s, Key chains,

with the logo of the Tetley. Hence enticing kids to force their parents to sit and relax while

the kids can have free goodies.

Suggestions:

Providing Free Sachet‟s of Tetley Tea to all of the customers at the checkout point of

super market, also a voucher for a chance to win a trip to some resort to the customers

who have bought Tetley‟s product.

Promotional offers during the year: If a client buys a box of 150 tea bags, he will get

a free tea cup, a spoon or some souvenir with logo of Tetley.

Hosting a carnival type event providing entry to only customers presenting the bottom

portion of Tetley‟s 400Gram box or Tea Bag box‟s top leaf,

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Promotional event for Tetley Tea launching:

During one weekend in a big city in Pakistan (preferably Karachi) they will organize a big

event. In the street, there will be hosts with special clothes (Tetley uniform) who will

distribute samples and cups with tea to offer the product to passer-by.the children while the

parents take part in the competition, in the street there will be a lot of decoration of the brand

image.

Advertisement

At the beginning, the strategy is to focus on the Internet, the radio and on daily newspapers to

reach a lot of customers. These media are noticed by a large target group which will help the

firm to be known. After six months or one year, they will begin a campaign on television, in

magazines and on airports.

Every day, Tetley focus is on developing new, exciting and different ways of making tea.

Recently in the UK, Canada and Australia, they‟ve launched new blends of green teas and

fruit and herbal infusions, some delicious new ready to drink iced teas and spicy chai latte

teas. In Pakistan;

The new promotional activity of Tetley is the new pack of 32 grams sachet having the same

strong taste and the second promotion that Tetley has introduced in the market is the packet

of 25 grams with buy one get one free scheme.

During Ramadan Tetley offers by product Schemes in which they offer Tetley tea with Tang

with the new slogan “Tetley Badal Day Sooch!!!”

TV Commercials

TV is a most entertaining medium for promoting the product, Tetley used informative

Advertising for their product taking TV Actors in their advertisement and build a brand name

as other Lakson products are i.e. Palmolive.

Pakistani Tea Culture – Tea Consumption

Pakistan averages approx. 1 Kg per person per annum

On average a tea drinking House Hold consumes 4.85 kg of tea/year.

Nationally, 5.4 kg in urban & 4.63 kg in rural areas

This translates into a daily consumption of 2-4 cups per day

Issue of Tea in Pakistan:

The government is annually losing Rs 152 million in revenue due to tea smuggling through

Afghanistan, sources in the tea trade said.

Pakistan has a 170 million kg tea market. About 40 million kg of tea is smuggled into the

country through Afghanistan under the garb of Afghan Transit Trade.

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Sources said price of one kg bag of the imported tea is $2 while same quantity of smuggled

tea is sold at a price of $1. The reason of this 100 percent difference is that the legal importers

have to pay 15 percent sales tax, six percent income tax and 10 percent customs duty, while

illegal tea traders pay nothing to the government, they added. Pakistan Tea Association

chairman Hamid Saeed said that the business of tea importers was badly hurt due to

smuggling of tea. For the last couple of years PTA had been complaining to the authorities by

writing letters and reminders to the Central Board of Revenue (CBR) and Anti Corruption

Department. Every time it had been told that the authorities would consider this issue and

inform PTA of the new government policies.

Secretary Pakistan Tea Association, Khusro N A Farooqi said that PTA had approached

Director Anti Corruption Department and informed him that smugglers were getting small

quantities, which made it difficult for the authorities to check smuggling.

PTA urged him to take prompt action against them, to which he replied that for only 20 to 30

bags they could not afford to create any law and order situation.

To curb the problem of smuggling, Pakistan Tea Association and major tea blenders,

Unilever, Tapal and Tetley, are demanding that government should abolish all duties and

taxes levied on tea imports. The quantum of tea smuggling is rising every year and now it has

reached 40.

SWOT Analysis

Strength

Local company that will be favored by the

Pakistanis.

Diminishment of Financial Risk (no exchange rates

or import from other EU countries.

Insider knowledge of Pakistan

Uniqueness of the product - Benefits of product are

outstanding and not offered by any other

product/company.

Weakness

Since Tetley is relatively new brand – it needs to establish its position in the market.

Brand name is still little known in Pakistan.

Opportunities

Shortage of tea supply unlikely

Supply should remain stable over next 3-5 years

Demand should remain in relative sync with supply

Mass market tea prices will stabilize

Consumers are living a healthier lifestyle

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Consumers prefer quality products that offer true value

Modern technology in the tea industry will be able to increase productivity

Growth in tea market due to promotional efforts of healthy attributes of tea

Threats

Limited number of raw materials

Unstable tea supply of high quality tea

High quality tea prices will increase moderately

Tea market is very competitive and relative elastic

Strong local competition like Unilever.

Unilever owns 50% Of the Market Share in the TEA Segment.

Suggestions

Train the sales work force

Free testing and sampling of the tea

Reward or lottery system to attract the customers

motivate employees with the incentives

Make the availability of the tea at every outlet.

Health & Tea For over five thousand years a cup of tea has had its own special magic. The earliest stories

of the health benefits of tea come from ancient As the first cup of tea using a leaf that fell

from a wild tea plant. The resulting drink was both healthy and refreshing. All over the world

there is a growing body of evidence to suggest that Camellia sinensis, the tea plant, does

indeed have health benefits.

World Health Organization has advised an intake of 400mg (five portions) of fruit and

vegetables every day is to make sure our diet is rich in antioxidants. Antioxidants may

counteract the effects of free radicals. Free radicals are compounds that can occur naturally in

our bodies and also as a result of pollution radiation and sunlight.

There are compounds found in tea called flavonoids and these are very effective antioxidants.

One study looking at the relative power of antioxidants found that tea was considerably

stronger than the twenty vegetables they examined.

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