A Research Project on

“Comparative Analysis of Tata Tea vs Broke Bond Tea”

Submitted in partial fulfilment of the award of a degree of

MASTER OF BUSINESS ADMINISTRATION

Uttar pardesh Technical University.

Mangalmay Institute Of Management & Technology

2010-2011

UNDER THE GUIDANCE OF: SUBMITTED BY:

PROF. RAJEEV JAIN AWADHESH KUMAR ROLL NO.0915270024 MBA VI SEM

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DECLARATION

I hereby declare that this research project report on “Comparative analysis

of Tata tea and brokebond tea” submitted to Utter pardesh technical

University for the partial fulfilment of the requirement for the Master of

Business Administration degree is an original and independent work carried out

by me.

Awadhesh Kumar Roll No. 091520024 MBA VI Sem

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ACKNOWLEDGEMENTS

This industrial review project on “Comparative analysis of Tata Tea and

Brokebond tea” which includes a study on Tata Tea has been prepared with

utmost care by me with all due consideration. I sincerely and honestly dedicate

my thanks to Mrs. Leena James, our guide for this project, for her kind

information and guidance.

I would also like to extent our gratitude and heartfelt thanks to Mr. Rajiv jain

Our marketing faculty and Mr Sandeep Sharma our Academic Coordinator for

giving me this opportunity to carry out the project.

My project would not have been a success without their continued support and

keen guidance.

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TABLE OF CONTENTS

S.No. Topic Page no.

1 Introduction

1.1 Tea abstracts

1.2 Objective of the project

2 Industry profile

2.1 History of Tea

2.2 Type of Tea

3 Company profile

3.1 Tata Tea

3.2 History of Tata Tea

3.3 BrokeBond Tea

4 Research Methodlogy

4.1 Scope of Study

4.2 Significance of study

4.3 Research Design

4.4 Market Situation

4.5 Market strategy

5 Data collection

6 Data analysis & Interpretation

7 Inding & conclusion

8 Limitation

9 Bibliography

10 Annexure

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Chapter 1

Introduction

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INTRODUCTION

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Title: "Comprative analysis of Tata Tea and Brokebond Tea”

Basic Scope: A study to identify and validate the effects of the ‘marketing

strategy of Tata tea as well as Brokebond Tea and whether or not it actually

made a difference in both the sales of Tata Tea and Broke bond tea and the

behaviour and feelings of the general public.

Industry: Indian Tea Industry

Company: Tata Tea Ltd.

Uniliver Ltd.

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TEA Abstracts

Today, tea is drunk by almost half of the world's population. Tea is undoubtedly

the national drink of India. Tea is an aromatic stimulant, containing various

polyphonic, essential oils and caffeine. The concentration of caffeine in tea

ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful

stimulant. Tea is the beverage made when the processed leaves of the tea plant

are infused with boiling water.

In India, tea is only blended and packed, but not produced. Three basic

categories of tea are marketed in India which are:

-Mixture

-Danedar

-Chura

Danedar is also known as leaf tea while Chura is known as dust tea. There are

around five hundred flavors available in tea.

The rural areas of Sindh are considered to be heavy consumers of dust tea.

Punjab has a high consumption of leaf tea.

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It has more consumption than any other type of drink available in the market

today. It is estimated that Indiais consume over 130 million kg of tea worth over

4 billion rupees every year. Despite the increasing emphasis on its hazardous

effects on health and the continuously rising prices, due to the low literacy rate

and unavailability of a better substitute, the demand and the consumption has

increased over the years and is growing at an annual rate of 6%.

Tea is an aromatic stimulant, containing various polyphenois, essential oils and

caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is

this caffeine content that makes tea a useful stimulant. Although second to

coffee in commercial value, tea ranks 1st as the most popular beverage in the

world.

Tea is the beverage made when the processed leaves of the tea plant are infused

with boiling water. Native to Southeast Asia, the tea plant, Camellia sinensis, is

a

small shrublike, evergreen tree. It's leaves have the chemicals, caffeine and

tannin.

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OBJECTIVES OF THE PROJECT

Taking into consideration the responses of the population;

1. To determine whether the ad-campaign made any difference in the psyche

of the populous.

2. To understand the change in sales after an ad campaign.

3. Understand the role of the Brand loyalty in the Tea Industry.

4. See the validity of the Advertising as well as promotion Strategy of Tea.

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Chapter 2

Industry Profile

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INDUSTRY PROFILE

HISTORY OF TEA

It is said that tea was discovered accidentally by Emperor Shen Nung back in

2700BC. After a large meal one day, he was relaxing in the garden with a cup of

boiling water. At that time some leaves from a nearby tree fell into the cup.

Unnoticed he consumed the drink. He enjoyed the taste of the tea and the pain

relief of the drink was so much. Like this the cup of tea was born.

The Indian legend tells how in the fifth year of a seven year sleepless

contemplation of Buddha he began to feel drowsy. He immediately plucked a

few leaves from a nearby bush and chewed them which dispelled his tiredness.

The bush was a wild tea tree.

The first tea used in England came from China, and it wasn't until the 19th

century that tea growing spread to other countries and indigenous tea was

discovered in Assam. The UK is the largest importer of tea.

The English quickly developed an almost unquenchable thirst for the drink and

began searching for a way to get tea without having to buy it solely from China.

In 1835 the English East India Company, upon discovery of an indigenous

variety of Camellia Sinensis in Assam, India, established their first experimental

tea plantation there. It was largely unsuccessful at the beginning. In 1856

varieties of tea from the Yunnan and Keemun provinces of China were

introduced in Darjeeling, India, and soon thrived. Some of the most prized and

expensive Indian black teas come from this high mountain region. One year

later tea was cultivated in Ceylon (Sri Lanka). Luckily, for tea growers and

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consumers, a fungus wiped out the coffee crop in Ceylon in 1869, then its' main

export. This opened the door to increased tea production and exportation.

By the early 1900's tea was being cultivated in Java, Sumatra, Indonesia, Kenya

and other parts of Africa. Presently, the United States has been added to the list

of tea producers as there is one plantation in North Carolina.

Tea manufacture is the process of converting young fresh tea shoots into dry

black tea. This involves a number of processes from plucking to packing. At the

plucking stage, only the top leaf tips are picked every 6 to 7 days. The tip leaves

are younger and finer which produce a better quality tea. The fresh green leaves

now need to have the moisture removed from them. This is done by blowing air

through the leaves for up to 14 hours, leaving a soft and pliable leaf. There are

then two ways of treating the tea. Tea which is to be used as loose leaf, will

normally be rolled gently to create a twisted appearance.

In contrast, tea which is to be used for tea bags is shredded and crushed to

produce a small granular product. Rolling and crushing the leaves, results in the

rupturing of the leaf cells which allows oxidation to occur. This gives the tea its

distinctive black colour and flavour. The tea is then dried at high temperatures

to achieve the correct taste. When it has been dried, the leaf tea is of differing

sizes and will also contain pieces of fibre and stalk. At this point it is processed

to remove pieces of stalk which will then leave tea suitable to be sold as loose

tea. The tea is passed through varying sizes of meshes to sort it and has to be

passed through very fine ones in order to produce tea fine enough for tea bag

production. This process of sorting is a harsh one and it can cause the tea to lose

some of its flavour. That is why loose tea usually has a better flavour than the

tea in a tea bag.

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TYPES OF TEA

WHITE TEA

White tea is similar to green tea, in that it's undergone very little processing and

no fermentation. But there is a noticeable difference in taste. Most green teas

have a distinctive 'grassy' taste to them, but white tea does not. The flavour is

described as light, and sweet. You should steep white tea in water that is below

the boiling point. There is also considerably less caffeine in white tea than the

other varieties (15mg per serving, compared to 40mg for black tea, and 20mg

for green). Some studies have also shown that white tea contains more active

cancer-fighting antioxidants than green tea. As with all teas, there are many

varieties of white tea, with poetic names such as: white peony, golden moon,

silver needle and white cloud. White teas are produced mostly in China and

Japan, but the Darjeeling region of India also produces some fine white teas.

GREEN TEA

Green tea is nothing more than the leaves of the camellia sinensis that have been

processed a certain way. Green teas, like white teas, are closer to tasting like

fresh leaves or grass than the black or oolong. They are also lower in caffeine

and have higher antioxidant properties.

First, the green leaves are seen how much oxidation should take place before

drying them out. Tea leaves have enzymes in their veins. When the leaf is

broken, bruised, or crushed, the enzymes are exposed to oxygen resulting in

oxidation. The amount of oxidation depends upon how much of the enzymes are

exposed.

The processing of green tea is similar to that of white tea in that it does not

oxidize. After the leaves are plucked, they are (sometimes) laid out to wither for

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about 8 to 24 hours. This lets most of the water evaporate. Then, in order to

neutralize the enzymes thus preventing oxidation, the leaves are steamed or pan

fried. Next the leaves are rolled up in various ways and tightness. After that, a

final drying takes place. Since no oxidation took place, the tea has more of a

green appearance. From there, it goes off to be sorted, graded, and packaged.

OOLONG TEA

Oolong teas are the most difficult of the four types of teas to process. The best

way to describe oolong tea is that they are somewhere in between green and

black tea. This is because they are only partially oxidized during the processing.

Oolong tea is gently rolled after picking allowing the essential oils to react with

the air and slowly oxidize. This process turns the leaf darker with time and

produces distinctive fragrances. When the leaf has reached the desired oxidation

the leaf is heated, in a process called 'panning', to stop the process. It's then

rolled to form the tea into its final shape. The resulting tea can be anywhere

between a green and a black, depending on the processing method. This tea is

handcrafted, undergoing a labour intensive process. The tea maker must

carefully balance many elements in the critical few hours after the leaf is picked

including weather conditions, quality of the leaf, and the time the leaf oxidizes.

The finest Oolongs are often prepared and enjoyed Gung Fu style to savour

their complex tastes and fragrances.

The processing of oolong tea requires only a partial oxidation of the leaves.

After the leaves are plucked, they are laid out to wither for about 8 to 24 hours.

This lets most of the water evaporate. Then the leaves are tossed in baskets in

order to bruise the edges of the leaves. This bruising only causes the leaves to

partially oxidize because only a portion of the enzymes are exposed to air. Next,

the leaves steamed in order to neutralize the enzymes and stop any oxidation.

Oolong tea can have varying degrees of oxidation. Some are closer to black

teas, and some are closer to green.

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BLACK TEA

Black teas are the most consumed of the four types of teas. They are the highest

in caffeine. Black tea is the most popular tea in the world. It is the tea most

widely used in making iced tea and English tea. Since the process of making

black tea consists of three main stages, ‘cut’, ‘torn’ and ‘curled’, it is also

known as C.T.C tea. After cutting, the leaves are first spread on shelves called

withering racks. Air is blown over the leaves to remove excess moisture,

leaving them soft and flexible. These withered leaves are then crushed between

the rollers of a machine to release their flavoured juices. In the tearing process

the cells of the leaves are exposed and the oxidation process begins. They are

then taken to the fermenting room where under controlled temperature and

humidity, they change into copper colour. Finally they are dried in ovens, where

they are curled by heat and become brownish black.

It is made by steaming the leaves in large vats. The steaming prevents the leaves

from changing its green colour, hence the name. The leaves are then crushed in

a machine and dried in ovens. It is produced by using many of the same

techniques that were practiced centuries ago.

PU-ERH TEA

Pu-erh teas come from the Yunnan province in China and have a strong earthy

flavour. Pu-erh has been praised for generations for its flavour and health

benefits. It's processed according to an ancient technique (which used to be a

state secret) that involves aging the leaves. It is often formed into bricks and is

one of the few teas that age well.

Pu-erh tea is moderate in taste, not as strong as black tea. It can cut grease, help

digestion, warm stomach, help produce saliva and slake thirst, dispel the effects

of alcohol and refresh one’s mind. Pu-erh tea has functions of lowering the

triglyceride, cholesterol, hyperuricemia in the body.

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Puer tea (also called Pu-er or pu-erh) is an ancient and rare tea, much loved in

China and the only tea for some 'hardened' tea drinkers. The processes that go

into making the classic puers are closely guarded secrets. It is fermented,

sometimes twice, and is often pressed into cakes or bricks. This makes puer

especially easy to store and keep for long periods. Generally they are robust,

earthy teas with a dark red or brown colour and distinctive, mysterious aroma.

Puer is widely known in China to have major health benefits, especially in

reducing cholesterol and as an aid to digestion, which makes it the ideal after

dinner tea.

SCENTED TEA

Scented or Flower tea is either green or white tea that has been infused with

certain flowers, which impart a delicate and interesting taste, and of course a

wonderful aroma. As with black tea and milk or sugar, flowers were added to

green tea originally to disguise a less than favourable taste in the poorer

varieties. This is still the case with many commercially produced flower teas,

which hide the taste of very cheap tea behind a strong flowery presence. Flower

teas, in particular the delicious jasmine, have gained such a following both in

Asia and the Western world, that many people only drink this variety. The

Seven Cups jasmine teas combine really fine quality green and white teas with a

subtle but distinct jasmine flavour, and are a real treat, especially for dedicated

jasmine fans. They are the best jasmine teas we've ever taste

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Chapter 3

Company Profile

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COMPANY PROFILE

Tata Tea Limited, also known as Tata-Tetley, is the world's second largest

manufacturer and distributor of tea. Owned by India's Tata Group, the Tata Tea

Limited markets tea under the major brands Tata Tea, Tetley, Good Earth Teas

and JEMČA. While Tata Tea is the largest tea brand in India, Tetley is the

largest tea company in the United Kingdom and Canada and the second largest

in the United States by volume and JEMČA is Czech Republic's leading tea

company.

Via subsidiary companies, Tata Tea manufactures 70 million kilograms of tea in

India, controls 54 tea estates, ten tea blending and packaging factories and

employs around 59,000 people. The company owns 51 tea estates in India and

Sri Lanka, especially in Assam, West Bengal in eastern India and Kerala in the

south. The company is the largest manufacturer of Assam tea and Darjeeling tea

and the second-largest manufacturer of Ceylon tea.

Set up in 1964 as a joint venture with UK based James Finlay and Company to

develop value-added tea, the Tata Tea Group has now product and brand

presence in 40 countries. It is one of India's first multinational companies. The

operations of Tata Tea and its subsidiaries focus on branded product offerings in

tea, but with a significant presence in plantation activity in India and Sri Lanka.

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

is headquartered in Kolkata. With an area of approx 159 km² under tea

cultivation, Tata Tea produces around 30 million kg of black tea annually.

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Instant tea is used for light density 100% teas, iced tea mixes and in the

preparation of ready-to-drink (RTD) beverages.

Tata Tea owns five brands in India - Tata Tea, Tetley, Kannan Devan, Chakra

Gold and Gemini. The company has a 100% export-oriented unit (KOSHER

and HACCP certified) manufacturing instant tea in Munnar, Kerala, which is

the largest such facility outside the United States. Tata Tea has subsidiaries in

Australia, Great Britain, United States, Czech Republic and India.

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HISTORY OF TATA TEA

1980’S

In the early 1980s, the tea industry in India was experiencing rising input and

labour costs and dwindling margins as well as high taxes. India was facing

competition on the world market not just from China, but also from other

countries entering the business.

In 1983, Tata Tea bought the stake belonging to the James Finlay group to form

the individual entity Tata Tea. In the same year, the company decided to move

from the commodities business to consumer branding. The first brand Tata Tea

was introduced. This was followed by other brands like Kannan Devan, Agni,

Gemini and Chakra Gold. In spite of being the largest market in the world, the

concept of branded tea took time to be accepted.

In 1987, Tata Tea set up a fully owned subsidiary, Tata Tea Inc.

1990’S

In the 1990s, Tata Tea decided to take its brands into the global markets. It

formed an export joint venture with Britain's Tetley Tea in 1992. Other new

enterprises included a majority interest in Consolidated Coffee Ltd. (Tata

Coffee Ltd.) and a joint venture to manage agricultural estates in Sri Lanka.

Tata Tea Inc. in the United States processed and marketed instant tea from its

facility in Florida, based on sourcing of instant tea products out of Munnar and

Kerala. In 1993, they entered into a joint venture with Allied Lyons PLC in the

UK to form Estate Tata Tetley.22

In the mid-1990s, Tata Tea attempted to buy Tetley and the Lankan JVC

acquired 51% shareholding in Watawala Plantations Ltd.

In 1997 the company was embroiled in a major scandal known as the "Tata

Tapes controversy" which related to funds the company provided to the

outlawed United Liberation Front of Assam (ULFA), an armed-struggle group

operating in Assam.

By 1999, Tata Tea’s brands had a combined market share of 25% in India. The

company had 74 tea gardens and was producing 62 million kilograms of tea a

year, two-thirds of it packaged and branded. Towards the end of the year, the

tea business was hit by a drought in much of India. In addition, Russia, once the

largest buyer of Indian tea, temporarily withdrew from the market.

2000’S

An important step for Tata Tea was the acquisition of the Tetley Group (based

in the United Kingdom) in 2000. It was a £271 million ($432 million) leveraged

buyout. Tata Tea reportedly outbid the American conglomerate Sara Lee in

what was described as the largest takeover of a foreign company by an Indian

one to date. At the time, Tetley was the world's second largest tea company after

Unilever's Brooke Bond-Lipton and had an annual turnover of £300 million. It

was the market leader in Britain and Canada and a popular brand in the United

States, Australia and the Middle East.

Established in 1837, Tetley was the first British tea company to introduce the

tea bag to the UK in 1953. The tea bag was followed by the first round tea bag

in 1989 and the 'no drip, no mess' drawstring bag in 1997. Tetley now

contributes for around two thirds of the total turnover of Tata Tea.

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From 2005 Tata Tea began a restructuring exercise to divest direct ownership of

plantations in India, a process facilitated by subsidised loans from the World

Bank's International Finance Corporation.

In 2007, Tata Tea launched the campaign Jaago Re! to awaken youth to social

issues. The campaign was extended into 2008. In 2009, their campaign revolves

around the issue of corruption with a new adline 'Ab Se Khilana Bandh, Pilana

Shuru'.

The international trade union IUF criticised the company in 2009 for not

allowing statutory maternity leave to pregnant tea pluckers, and for locking out

1,000 workers on the Nowera Nuddy Tea Estate in West Bengal for so long that

the local government began distributing food coupons for emergency rations to

workers and their families.

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COMPANY PEOFILE OF BROKEBOND

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Unilever Ltd. was created in 1930 when the British soap maker Lever Brothers

merged with the Dutch margarine producer, Margarine Unie. At the time, an

international merger was an unusual move. But the owners of the two

companies could see that bringing together complimentary businesses with

strong global networks would create new opportunities.

Unilever (India) Limited Formerly known as Lever Brothers (India) Limited is

by far the largest and most experienced fast moving consumer goods (FMCG)

firm in India. It enjoys a very large market share in consumer goods, the lions

share even, and is particularly dominant in tea and ice-cream. The largest

competitor of Unilever in India is Procter & Gamble which also is a house hold

name in consumer goods all over the world.

Unilever’s principal activities are to manufacture and sell spreads and cooking

products, ice cream, beverages and home and personal care products. Some of

the products in the unilever line are Brooke Bond, Lipton, Lux, Rexona,

Sunsilk, Surf, Blue Band and Planta.

RELAUNCH OF BROOKE BOND SUPREME

The recent failure of Brooke Bond supreme is the prime reason for re launching

Brooke Bond supreme in Mumbai. The major reasons for the failure of Brooke

Bond supreme is credited to the taste preferences of People of Mumbai and to

the major competitions that Brooke Bond is facing from Tapal Danedar, Tapal

Family Mixture and from Lipton Yellow Label which is the family brand of

Unilever along with Brooke Bond supreme.

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REASONS OF FAILURE:

Brooke Bond supreme is one of the leading tea brands all over India but the

sales in Mumbai have been very poor since its introduction. The major reason of

it is :

The major concern which prevails in the tea industry is the blend itself,

and because of the preferences variation of people of different parts of

India, one single tea can not be introduced country wide without any

alterations. After being successful in Punjab, when Brooke Bond

Supreme was launched in Mumbai it was not altered, which resulted in

the failure of the product

People of Mumbai prefer Danedar tea more then any other tea because of

the aromatic smell. This is the prime reason of the success of Tapal

Danedar in Mumbai.

Another reason that can be cited for the failure of Brooke Bond is the

fierce competition it is facing from Tapal and Lipton Yellow Label. Tapal

have the upper edge over Brooke Bond is because of the quality of the tea

and with different assortments it has covered the shelf space. On the other

hand Brooke Bond supreme just have 2 different pack sizes.

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Chapter 4

Research Methodology

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SCOPE OF STUDY

1. To understand the ‘Reach of Tata Tea’s Jaago Re Campaign’ through the

eyes of the young customer.

2. To understand the ‘Reach of Brokrbond tea’ through the eyes of the

customer.

3. Some basic factors that customer believe affect or do not affect them.

4. Understand the role of the Brand loyalty in the Indian tea industry.

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SIGNIFICANCE OF STUDY

1. Firstly, we need a study the products and pricing of the products of tata

tea and brokebond tea.Next, this study helps us to understand the

populous a bit better in terms of some of their basic beliefs about the

products they buy.

2. It also gives us an insight into what the consumers believe affects them

and what does not.

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RESEARCH DESIGN

Data Type: Primary Data

Research Tool: Questionnaire, Internet, Peoples Interactions

Population: The urban educated youth of the nation.

Sample Units: Individual Consumers, Similar background

Sampling Method: Random Sampling under similar conditions

Sampling Size: Restricted to 50 people

Method of data collection: Survey Method.

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Research instrument: The instrument used for gathering data was a

questionnaire. To get further insight in to the research problem, interview

regarding their buying practices too was made. This was done to crosscheck the

authenticity of the data provided.

Tools and techniques of analysis: The data so collected will be analyzed

through the application of statistical techniques, such as bar graphs and pie

charts.

Assumptions:

Samples collected are representative of the entire population.

Modern consumer is conscious and awareness is high.

They are more curious about the product, quality, price and features

offered.

Try to obtain maximum information before actual decision making

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CURRENT MARKETING SITUATION

Market Situation

The tea industry of India constitutes the target market of nearly half of the population and yearly consumption is 130,000 tons. And the consumption rate is still accelerating at a fast pace, accumulates to be 6% annually.

The populations of tea Consumers represent the income level and area of residence which constitute of upper middle class in volume of 1,950,000, middle class in volume of 5,200,000, lower middle class in volume of 3,900,000, lower class 1,300,000, calculated in percentage as 15%, 40%, 30%, and 10% respectively.

The preference of buyers shows the concern in quality, aroma, strong ness and the nature of tea type. Normally the buying decision of tea is taken by household women aged between 30 to 60. This category belongs to the dissonance reducing buying behavior where there are not many varieties or differences are there however the involvement in the product is high.

Due to the humid weather and the hectic lifestyle, tea works as an effective stimulant. Another reason for tea being a popular stimulant is that coffee, a close substitute of tea is comparatively expensive which most people cannot afford.

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Competitive Situation

Unilever owns two of the most widely recognized product lines Lipton and Brooke Bond. The major competition facing Lever at present is from Tapal Danedar Tea, who is truly a market challenger.

Lipton comprises of Yellow Label which is designed for upper middle, upper lower and upper middle class, which is a market leader in the industry, it comes in all the packages including hard packs, jars, and teabags. Lipton yellow label although the direct competitor of Brooke Bond Supreme comes in the family of Unilever so it is prone to its competing attacks. Lipton follows a massive promotion scheme to hold its share. Richbru is designed for middle and lower

upper classes, and Pearl dust is designed for rural areas, mostly districts of Sindh where consumption of dust is extensive. They both are not stated as direct competitors of Supreme because they are targeting to different audience. Lipton has a market share of 25%.

Brooke Bond comprises of Supreme and A1 karak Tea which is designed for lower classes, originally known as Kenya mixture and then A1 Kenya mixture. Brooke Bond has a market share of 9%.

Tapal with the assortments like Danedar and Family mixture collectively has a market share of 22% overall and in Mumbai it has 24%. Tapal is not only a direct competitor but can be stated as a only competitor because all the major market share holders belong to the family of Unilever except Tapal. Tapal also comes in various packages and consumes much of the shelf space in super markets and convenient stores. Tapal has the biggest advantage of its assortments as is served not only by mixture but also Danedar which is getting very popular day by day. Tapal has a good image in consumer’s mind and its price is also reasonably attractive.

A sizable portion of the market is dominated by loose tea or unbranded tea. However, these brands are currently threatened by smuggled tea from Afghanistan which is available in the open market duty free. This has posed a lot of problems for genuine importers of tea who cannot compete with this tea because of its low price. These unbranded teas have the biggest market share of 40% because of its low price.

The other brands including Sohni, Kohinoor, and Ispahani etc constitute the market share of 2% in Mumbai.

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Distribution Situation

This is the perfect example of two-level channel distribution which would be from the manufacturer to the distributor to the retailer. Normally the margin of distributor ranges from 8 to 10 percent per pack and the margin associated for retailer is 6 to 7 percent per pack. Although it differs from company to company and brand to brand because of the variation of the sizes and quantity disparity.

Although established brands like Tapal,Tata tea and Lipton do intensive distribution which has a major draw back of price wars and image of the product sacrifices as it can be found in lower class geographical localities.

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Macro Environment Situation

Due to the natural environment, Tea is not produced in India, but only blended and packed. It is imported from Kenya, Indonesia, Sri Lanka, China, Bangladesh, India and other countries. Agents in these countries purchase it from auction and export it to India. They work on commission basis, usually ten cents per kg.

Unilever (Lipton) in order to get backward integration is experimenting in Swat and Mansera to produce tea. Although no significant results have been achieved, they are still trying. If they get successful all the products lie in the family of Unilever will enjoy the lowered prices of tea without having to pay the import duty which will win a competitive edge in terms of cost leadership.

The legal environment posses some of the problems like Tea sales have continued to suffer from rampant smuggling of tea. Lever presently pays more than 80% as taxes on imported tea. This has made tea smuggling attractive. Not only unbranded tea but also established brands are also threatened by smuggled tea from Afghanistan which is available in the open market duty free. This has posed a lot of problems for genuine importers of tea who cannot compete with this tea because of its low price.

The Socio-cultural environment plays a very massive role in tea industry because the choices and preferences of people in different provinces are varied to a great extent. In interior Sindh and Balochistan, there are heavy consumers of Dust tea, Punjab likes mixture and in Mumbai Danedar is exceedingly popular.

OPPORTUNITY AND ISSUE ANALYSIS

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SWOT ANALYSIS

Strengths

The recent alteration results in Strong blend backed up by even stronger brand image.

The packaging is very attractive, first time tea has been introduced in brown packaging

Unique sizes have been introduced for various segments including teabags, stir ready.

To compete with Tapal Brooke Bond has also launched its assortments in mixture and Danedar.

IBL distribution company, although charges high commission charges, offers efficient service in which it is made sure that product will be widely distributed, retailers will not experience shortage of products and the name IBL increases more value of the product.

Weakness

It is a product being introduced in an already existing tea market with established brands.

No competitive advantage can be brought in this industry. Only massive advertising and promotional activities may entice consumer for trial.

Opportunities

The consumption of tea increases with the growth in population. At the moment, the population of the country is growing at a rate of 2.9% annually, and tea at a rate of

6%. This means that presently there is a considerable opportunity for the growth of tea in India.

37

The initial re-launch of Brooke Bond Supreme is limited to Mumbai only, however, other principle cities will be taken into account in the future. Specially in Punjab mixture blend can be introduced under the brand name of Supreme. Slowly, Supreme will penetrate the market in other cities and expand its future market share.

Unilever is trying to produce tea in India. If this is successful, then much lower prices will be offered to consumers and competitive advantage can be gained in terms of cost leadership.

Threats

A rigorous threat is the increasing number of branded and unbranded tea in the market with ample price difference. For that, established companies need to increase their advertising and promotional budget. There is a need to get a better shelf space and more retailer patronization for the company's brand.

Unilever presently pays 80% as taxes on imported tea. This rise in import duty on tea by government is intended to discourage it's consumption, which possess to be a threat as it has resulted in higher prices for the consumers.

38

ISSUES ANALYSIS

The market share of Brooke Bond Supreme in Mumbai is decreasing day by day, would it be more suitable for the company to divest Supreme in Mumbai and continue with Brooke Bond A1 tea.

If the decision has been made to re-launch Supreme, would it be reasonable to re-launch it countrywide.

Because of expensive shelf spaces in popular stores, would it be advisable for Brooke bond to introduce new Packages and bear additional costs or would it be more profitable for long term to introduce more packages and increase choice for end consumer.

Is it possible that the market share of Lipton (which comes in the family of Unilever) will be cannibalized by Brooke Bond Supreme which operates in almost the same target market as of Lipton, instead of gaining the share of Tapal.

The Brooke Bond that is being launched only in Mumbai will differ from the rest, so would it create any discrepancies in consumers mind and disrupt the positioning or image of the product.

Should price be set on the basis of competitor’s prices, premium on quality, or desired margin schemes.

Advertising and promotional vehicles should be different than before as there is an integration of upper segments have been included (super segments).

39

MARKETING OBJECTIVES

Achieve target sales of 4000 kg/day. The strategy used to accomplish this objective would be to advertise by using all media vehicles selected, which will position Brooke Bond supreme to be the best quality beverage among target market.

After six months strategy of supreme will shift from selective distribution to intensive distribution slowly, there by maximizing the number of retailers.

Once the awareness has been created, the main objective will be to increase the market share. The aim will be to achieve an increase in the market share of approximately 15% in the first year.

Producing a positive cash flow hence increasing the growth rate of Brooke Bond will be another objective.

40

MARKETING STRATEGY

Overview

According to our research target market in Mumbai prefer Danedar and that is the reason why Tapal Danedar is so popular. So Supreme will be launched in both mixture and Danedar.

The pricing of our product gives us an advantage in the market compared to our competitors, as most brands are priced at Rs.46.

Introductory pricing will be offered for three months for Rs.36 (no profit basis).

There will be heavy advertisements done on supreme along with sales promotional schemes both for the consumers and the retailers. The aim will be to create awareness in the people and to induce them in trials of Supreme Black Brew.

Many assortments of Supreme will be taken out to cover the shelf space and hence creating awareness which will increase the choice and chance at the part of consumers.

41

Product

Tea is an aromatic stimulant, containing various polyphenois, essential oils and caffeine. The concentration of caffeine in tea ranges from 2.5% to 4.5% and it is this caffeine content that makes tea a useful stimulant. Tea is the beverage made when the processed leaves of the tea plant are infused with boiling water.

In India, tea is only blended and packed, but not produced. Three basic categories of tea are marketed in India, namely

MixtureDanedarChura

Danedar is also known as leaf tea while Chura is known as dust tea. There are around five hundred flavors available in tea. Fine (Dust) tea grains are distinguished by D, D1, D2. The codes assigned to these grains constitute the major categories of tea -

Danedar - BP1 + BP

The rural areas of Sind are considered to be heavy consumers of dust tea. Punjab has a high consumption of leaf tea. According to our research target market in Mumbai prefer danedar and that is the reason why tapal danedar is so popular. So Supreme will be launched in both mixture and Danedar.

Because of the high brand awareness of Brooke Bond Supreme, It can not be changed during relaunch but if major alterations. However two different product mixes for same brand in different cities may lead to confusionand discrepancy, so concept of multi brands has been executed. The new name will be Supreme Black Brew which communicates the benefits of the product such that the product is strong in its blend and comes with two assortments demanded by the target market.

42

Price

The pricing strategy put to work is Markup Pricing Technique which states that after calculating the cost, required margin in percent should be included to determine the price, Moreover competition pricing is also considered. Therefore the price is marginally high than that of competitors to educate the consumers that the quality of the product is improved and of high quality. For an instance price of 100g is calculated as follows.

Cost for 100 grams Rs 16.0 Packaging cost per box Rs 0.5Distributors profit margin Rs 3.6Retailers profit margin Rs 3.0Total Rs 23.3Gross Margin Rs 2.8 Total Price Rs 26.0

Pricing of other packages are 200gms for the price of Rs. 56/-, teabags 50 pcs are priced at 65, teabags are priced at Rs 125/- jar is priced at Rs 100Rs.

Place

The company is using a two-level channel, where Company will hire a distributor who will work on commission basis and further more the distributor will sell the product to customer which will ultimately be sold to end-consumers. That is the channel of distribution would be from the manufacturer to the distributor to the retailer. The distributor that we have decided upon is International Brands Limited (IBL).

43

In first six months the Brooke Bond will use selective distribution technique where retailers will only be selected for distribution according to the geographical regions, where the existence of target market is at large

Reward power will be excercised with retailes that is the the margin per pack will increase for different range of sales volume.

Lajawaab employees the push strategy as it offers the distributor a margin of Rs 4 on each box of 250 grams. Similarly, the retailers are offered Rs 3 on each box of 250 grams. This margin is comparatively high as compared to our competitors.

Within Mumbai some of the major areas that will be covered are as follows:

Clifton, Defence, Tariq Road, PECHS, Bahadurabad, KDA Scheme1, Saddar, Gulshan-e-Iqbal, Nazimabad and Garden.

Promotion

44

In initial six months price will be slightly higher than other brands so to increase the prestige of the product, but after that schemes will be introduced like 10% free which enhances the affordability and does not instigate a price decrease which may result in the change of perception in consumer’s mind. N that can happen either in form of loss of quality or loss of sales.

Supreme employes the push strategy as it offers the distributor (IBL) a margin of Rs 3.5/- to Rs 4/- on each Pack. Similarly, the retailers are offered Rs 2.5/- to Rs 3/- on each Pack. This margin is comparatively high as compared to our competitors. The objective is to increase the sales , increase the awareness, and sustain preferences through the distribution network.

At the same time, the pull strategy is also being employed. The consumers are being directly reached through the effective media planning Following are some of the schemes included in the plan

Samples in form of sachets will be distributed to retail stores on the basis of customers buying items more than 100Rs will be given 2 Sachets to induce people to try the new product

If customers bring 10 packs of supreme they will be getting 200 Rs card worth of balance

Dispensers will be placed in 10 different localities of Mumbai, where the existence of our target market is at max.

Top Retailers will be given 100 Packs per month for three months 300 Packs

Packaging

In fast moving consumer goods packaging and labeling plays an important part. However there are very sensitive decisions have to be made for instance color scheme, types of packages, distribution and retailer margin on different packs, communication criteria and etc.

Different Packages of Supreme Black Brew

1. Hard Packs ( Small ) of 100g

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2. Hard Packs ( Family ) of 200g

3. Jars of 450g

4. Economy packs of 500g

5. Teabags of 50

6. Teabags of 100

7. Stir ready packing.

The color scheme has been chosen with careful consideration of red and black gradients. Originally Brooke bond Supreme served only lower and middle classes. Now that upward stretch has been done and upper classes has also been targeted, so its necessary to communicate high prestige through labeling. Moreover red and black scheme is chosen to show the strong nature of its blend.

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Chapter 5

Data Collection

47

TABULATION OF ANSWERS

1 A 30 60%

B 15 30%

C 03 06%

D 02 04%

2 A 35 70%

B 15 30%

3 A 45 90%

B 05 10%

4 A 42 84%

B 08 16%

5 A 17 34%

B 33 66%

6 A 22 44%

B 23 46%

7 A 19 38%

B 41 82%

8 A 39 78%

B 11 22%

48

9 A 48 96%

B 2 04%

10 A 44 88%

B 06 12%

11 A 19 38%

B 08 16%

C 23 46%

12 A 08 16%

B 42 84%

13 A 26 52%

B 04 08%

C 20 40%

14 A 08 16%

B 12 24%

C 24 48%

D 06 12%

15 A 13 26%

B 37 74%

16 A 38 76%

B 12 24%

49

17 A 16 32%

B 27 54%

C 07 14%

18 A 43 86%

B 07 14%

19 A 41 82%

B 09 18%

20 A 44 88%

B 06 12%

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Chapter 6

Data Analysis & Interpretation

51

QUESTION 1

Which age group do you belong to?

a. 18-25

b. 26-35

c. 36-45

d. 46 and older.

As we can see from the chart, 60% of the correspondents are from the age group

of 18 to 25. This question is to reaffirm that the target population comprises

mainly of the youth.

A further 30% of the respondents are from the age group 26 to 30.

Hence 90% of the sample is of the targeted youth population.

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QUESTION 2

Are you an ardent tea drinker?

a. Yes

b. No

This question was another one to support the background of the research. It is to

check how many of the sample population are tea drinkers. This question is

important as it helps us in seeing that the Jaago re campaign did not affect only

those who are interested in drinking tea. It also affects those who do not drink

tea.

As we can see though, 70%, a majority of the respondents drink tea and hence

will answer the rest of the questionnaire through a just view.

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QUESTION 3

How many cups of tea do you have daily?

a. 1-3

b. 4-6

A filler question to make the respondents more comfortable with the

questionnaire.

Shows us that a majority of the respondents are just normal tea drinkers and not

tea addicts.

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QUESTION 4

What kind of tea do you use?

a. Tea Leaves

b. Tea Bags

This question becomes important as it shows us how many of the respondents

prefer tea leaves; a majority with 84% preferring tea leaves.

This becomes important because Tata Tea is a major player in the Tea Leaves

market as we can see from the company profile. Only Tetley, its subsidiary is a

Tea Bag Major. The Jaago Re campaign focuses mainly on Tata Tea. So it is

good to know that a majority of the populous prefers the leaves.

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QUESTION 5

Which tea drink do you prefer?

a. Ice Tea

b. Hot Milk Tea

Similar to the previous question, this question as well helps us to understand the

respondents better. We know through the question that a majority of the

respondents are followers of the Hot Milk Tea that the company we are

following uses.

56

QUESTION 6

Do you like experimenting with different brands?

a. Yes

b. No

This question is one of the first which brings us to the questionnaire’s purpose.

It helps us in seeing whether the target population is ready for change

depending on any of the variables we are using.

Though a majority is ready for change; it is a small majority. This goes to show

that the market is very stringent and will need a very powerful campaign (like

the Jaago Re campaign) to make a difference in the market preference.57

QUESTION 7

Do you believe that ad campaigns influence people’s behavior? (i.e. – acting

responsibly after seeing an inspiring ad-campaign)

a. Yes

b. No

This question helps us in showing whether the target sample is ready to listen to

the social voices in the requisite campaign. The Jaago Re campaign speaks

about, first voting, and second, corruption and bribes. This question shows us

that 82% of the sample believes in the need for social change and hence will be

well receptive to the ideas thrown at them through socially responsible

campaigns.

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QUESTION 8

Do you think television advertisements can influence your choice of

brand?

a. Yes

b. No

This question is in line with one of the basic objectives of the research project.

We ask the correspondents whether or not, they are ready to change their point

of view based on what they see in television advertisements. This is helpful as it

shows us that those people who prefer other brands of tea leaves before the ad

campaign in question; can be influenced to change their brand choice.

59

This also has a negative aspect; as it can also mean that the people may be

influenced by the ad campaign of rival brands into choosing their brand of tea

over ours.

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QUESTION 9

Do you drink Tata Tea?

a. Yes

b. No

We can see through this response that Tata Tea is definitely the forerunner in

the Indian Tea Industry. As for the market brands are concerned. Tata Tea has

almost a monopoly over the entire market in terms of people buying their

products.

Through this; we can see that the ad-campaigns are probably more a campaign

to retain customers than make new customers.61

QUESTION 10

Are you aware of Tata Tea’s “JAAGORE” campaign?

a. Yes

b. No

Again, 88% of the sample population has seen the TV Advertisements or the

Billboards that advertise the Jaago Re campaign. This is a good figure as it

shows that the reach of the campaign is very far and deep.

62

QUESTION 11

What brand did you buy before the campaign?

a. Tata Tea

b. Brooke Bond

c. Taj Mahal

Though we saw that almost the whole market had bought and tasted Tata Tea at

sometime or the other. The true sales features can be seen in this chart. At

present; Taj Mahal tea is what sells the most. Almost half the respondents, i.e-

46% buy Taj Mahal Tea. In terms of sales, Tata Tea comes in at second with

38% of the total sales.

63

QUESTION 12

Does the packaging of the tea packet affect you?

a. Yes

b. No

Only 16% of the respondents believe that the packaging of the Tea Leaves

affects their choice of purchase. This is an important figure as it makes sure that

the company does not have to spend that much more in trying to boost their

sales through packaging efforts.

64

QUESTION 13

What brand did you buy after the campaign?

a. Tata Tea

b. Brooke Bond

c. Taj Mahal

This is a very important figure to look at; It shows us that the campaign was

very successful. As can be seen in many other studies that have been published

since the campaigns inception. We can see again here that the sales for Tata Tea

have been boosted by almost 20%. That is a huge chunk of the market. Taj

Mahal tea was affected by only 6%. Brooke Bond being the lesser of the market

brands took a major blow and fell to only 8% of the market.

65

QUESTION 14

How deeply has the Jaago Re campaign influenced you?

a. Not affected

b. Slightly Affected

c. Moderately affected

d. Highly affected

This shows us that the campaign as a social drive managed to affect the

respondents in various degrees. Most stayed in the central trimester of the total

populous. The percentage not affected at all by the campaign corresponds with

the previous result where 12% of the respondents had not even heard of the

campaign.

66

QUESTION 15

Did you register to vote through Jaago Re?

a. Yes

b. No

This is one of the questions which directly validates the success of the

campaign. We can see that 26% of the respondents directly registered to vote

through the Jaago Re campaign. Apart from that, the 74% who did not are

further divided (found out through the interviews which were conducted) into

those who followed the campaign and hence registered to vote and those who

either did not cast a vote at all or registered to vote separately due to their own

intentions to vote.

67

QUESTION 16

Do you appreciate the Jaago Re concept?

a. Yes

b. No

Most of the respondents were highly appreciative of the Jaago Re concept. On

further interviewing we were able to figure out that those respondents who were

not appreciative were so for a lot of other reasons.

68

QUESTION 17

How frequently have you come across the Jaago Re advertisements?

a. Very often

b. Often

c. Rarely

This is a response which is neither beneficial nor harmful for the organisation.

As is normal, the campaign is not over-crowding the market; neither is it to non-

existent. It is there for a good amount of time. It is just enough to make people

notice it properly.

69

QUESTION 18

Should Tata Tea continue with the Jaago Re campaign?

a. Yes

b. No

Very similar to the response of appreciation of the campaign; most respondents

believe that the company should continue with the campaign.

70

QUESTION 19

Do you feel that the Jaago Re campaign should broaden its scope to

encompass more of the problems being faced by our nation?

a. Yes

b. No

Again, most of the correspondents believe that Tata Tea should increase the

scope of the campaign. They have already started this venture by roping in the

problem of corruption and bribery.

71

QUESTION 20

Do you think that other companies should also follow suit and work on

campaigns similar to this one for the overall betterment of the nation?

a. Yes

b. No

Reviewing the previous questions and the responses recorded in them. This

question as well has a similar response. Most of the respondents really

appreciate the effort being taken by Tata Tea through the Jaago Re initiative and

hence are all for other companies as well trying to take initiatives similar to this

one.

72

Chapter 7

Findings & Conclusions

73

FINDINGS

Through the questionnaire and the resulting data collection and analysis; we can

bring down the findings to the following points.

1) Most of the respondents though having tried Tata Tea; still preferred

Taj Mahal Tea. This shows us that Taj Mahal gives the people what

they want in terms of quality and taste.

2) Most of the respondents were ready for change either for taste or by

being influenced by ad campaigns.

3) The Jaago Re campaign was well appreciated by most of the

respondents. Moreover, the campaign helped Tata Tea in increasing

their sales by almost 20% of the market share.

4) Also, the campaign helped in making the Tata Tea brand a much more

socially appreciated brand.

5) It also opened up the market for other companies to follow suit and

become socially responsible.

74

CONCLUSION

Hence, the conclusions that can be derived through the research study are that;

Tata Tea was a decently respected company before the inception of the Jaago

Re campaign back in 2009. After the campaign; they have become much more

respected as a socially responsible brand which is working for the betterment of

India. This has helped the company in terms of both sales and brand image.

Therefore, we can say without any doubt that the Jaago Re campaign was a very

successful campaign as it helped in increasing sales, brand image and also met

its objective of being a social catalyst of change and strife.

The topic --- “Comparative analysis of Tata Tea vs Brokebond Tea “hence

can be easily summarised through the findings of this project.

The objects of the study have hence been met...

75

Chapter 8

Limitation

76

LIMITATIONS

1. Study holds true for only the target populous; hence is not a very accurate

representation of the complete state.

2. Not many journals and articles have been reviewed. In short, the literature

review pertains to only literature in the background. The main research

part of the project does not use any secondary data whatsoever.

3. Some of the answers in the survey mode may have been biased and/or not

given with full cooperation/seriousness. This will cause a slight

discrepancy in the results so obtained.

77

Chapter 9

Bibliography

78

BIBLIOGRAPHY

SITES VISITED

1) http://www.teaindustry.com/

2) http://www.tatatea.com/

3) http://www.jaagore.com/

4) http://www.brokebindtea.com

5) http://uniliverindia.com

6) http://brandsbiverage .com

ARTICLES REFFERED

1) Article on Tata Tea Ltd. On Wikipedia Encyclopaedia

2) Article on the Indian Tea Industry on Wikipedia Encyclopaedia

3) Articleon the brokebond tea on Wikipedia.

79

Chapter 10

Annexure

80

QUESTIONNAIRE

81

2) Which age group do you belong to?

a. 18-25

b. 26-35

c. 36-45

d. 46 and older.

3) Are you an ardent tea drinker?

a. Yes

b. No

4) How many cups of tea do you have daily?

a. 1-3

b. 4-6

5) What kind of tea do you use?

a. Tea Leaves

b. Tea Bags

82

6) Which tea drink do you prefer?

a. Ice Tea

b. Hot Milk Tea

7) Do you like experimenting with different brands?

a. Yes

b. No

8) Do you believe that ad campaigns influence people’s behavior? (i.e. –

acting responsibly after seeing an inspiring ad-campaign)

a. Yes

b. No

9) Do you think television advertisements can influence your choice of

brand?

a. Yes

b. No83

10) Do you drink Tata Tea or Brokebond Tea or Other?

a. Tata tea

b. B.Bond Tea

c. Other

11) Are you aware of Tata Tea’s “JAAGORE” campaign?

a. Yes

b. No

12) What brand did you buy before the campaign?

a. Tata Tea

b. Brooke Bond

c. Taj Mahal

13) Does the packaging of the tea packet affect you?

a. Yes

b. No84

14) What brand did you buy after the campaign?

a. Tata Tea

b. Brooke Bond

c. Taj Mahal

15) How deeply has the Jaago Re campaign influenced you?

a. Not affected

b. Slightly Affected

c. Moderately affected

d. Highly affected

16) Did you register to vote through Jaago Re?

a. Yes

b. No

17) Do you appreciate the product test and packaging?

a. Yes

b. No

85

18) How frequently have you come across an advertisements of which

products tata or brokebnd and when?

a. Very often

b. Often

c. Rarely

19) Do you feel that the Jaago Re campaign should broaden its scope to

encompass more of the problems being faced by our nation?

a. Yes

b. No

20) Do you think that other companies should also follow suit and work on

campaigns similar to this one for the overall betterment of the nation?

a. Yes

b. No

86