Chennur company is a 300 crore Chennai based tea company

Characters involved in the case study are- Prem Warrier (Head of Corporate) Deepak Rai (Managing Director) Sumit Pandey (CFO) Anup Tandon (Marketing Head) Riaz (Management Consultant)

The tea industry in India is about 172 years old.

2nd largest tea producer and exporter in the world.

The total turnover of the tea industry is around Rs 10,000

crore and since independence tea production has grown

over 250%, while the land area has just grown by 40%.

http://www.stockmarketsreview.com/extras/tea_industry_in_india_is_finally_picking_up_after_a_tough_decade_20100618_15527

Tea production in India: 980 million Kg.

Tea export by India: 203 million Kg.

While majority of segment sales are from unorganized sector, estimated size of Indian packaged Tea market is approx `4,394cr

http://www.worldteanews.com/index.php/Features/The-State-of-the-Indian-Tea-Industry-an-Outside-Perspective.html

Total Tea brand in the market: 1000

90% of the brands are represented by regional players.

Tata tea with 12 various sub brands.

HUL with more than 9 various sub brands

http://www.naukrihub.com/india/fmcg/overview/tea/

Market share of leading player: Tata tea : 20.2% HUL : 18.8%

http://www.financialexpress.com/news/tata-tea-hul-war-brews-in-tea-mkt/496631/.

The unorganized tea market count almost 50% of the total market.

Option by implementing Ansoff Product Market Growth Matrix

Market Penetration Market Development Product Development Diversification

The major challenges faced by us are-

Changing consumer profiles Lower price realizations Distribution network: HUL-6.3 million outlets http://www.wikinvest.com/stock/Hindustan_Unilever_(BOM:500696)

Tata tea- 1.7 million retail outlets http://www.tatatea.com/comp_profile.htm

Range of products of competitors:

Tata products Unilever Products ◦ Tata Tea Gold Taj Mahal

◦ Tata Tea Agni Brooke Bond Taaza

◦ Tata Chakra Red label

◦ Tata Gemini Lipton.

◦ Tata Tetley 3 rose tea

Rural market

Overseas market

Exporting tea?????

Our competitors: Sri lanka, China, Kenya

Our market: UK, Russia, Middle east, Europe

Countries Consumption per capita

UK 2.3kgs

Ireland 1.5Kgs

New Zealand 1Kgs

Japan 0.9Kgs

Netherlands 0.8Kgs

Australia 0.8Kgs

Germany 0.7Kgs

Norway 0.4Kgs

Sweden 0.4Kgs

Austria 0.3Kgs

Finland 0.3Kgs

Italy 0.1Kgs

Weighted Average 0.7Kgs

Packaged Food market in India $10billion

Growth rate 9%

Branded Food market 7.5%

Share of the packaged food in the food and grocery market

Below 5%

The processed food consumption Lesser than 5%

To change the business and enter completely into

new market is not desirable.

As we already have skilled labour, production plant,

and people knowing about the tea industry so to come

in a new market is very costly affair which we cannot

afford.

Competition from well established brand.

Psychology of Indian house wives

Our STRATEGY??????

We will come out with T LOUNGE.

So what’s T LOUNGE???????

T LOUNGE is a place where customer will enjoy different flavors of tea with a great ambience.

What CCD and Barista did with coffee we will do that with tea.

As CCD and BARISTA is a big hit in Indian market so it’s a tested strategy which we can also try.

As per market survey the tea consumption in India is 10 times than coffee consumption.

(http://www.joonktolleetea.in/coffee.html)

(http://www.dilmah.biz/newforum/index.php?topic=197.0)

We can provide our customer the same ambience in the cost which is much less compared to them.

We have our own tea production house so we just have to do marketing of our new concept.

Assured quality of the products.

Having the first player advantage.

Market for tea shop can be divided according to various groups based on:

GEOGRAPHIC- City-Tier 1 cities (Metro cities), Tier 2 cities (Major

Capital cities)

DEMOGRAPHIC- Age-20 to 45 Occupation- College going crowd & Corporate world.

PSYCHOGRAPHIC-

Peoples interest in various products can be determined by their lifestyles, and indeed people can often express their lifestyles through the goods that they consume.

BEHAVIOR

Occasion- Regular Benefits- Quality, Service and Economy Consumption of tea -Medium to Heavy

MARKETING MIX

4 P’s of Marketing-

• Product• Price• Place• Promotion

PRODUCTPRODUCT

• Plain Tea• Black Tea• Flavored Tea - (Massala Tea, Ginger Tea,

Elaichi Tea, Chocolate tea)• Iced Tea –(with flavors)• Herbal Tea ( Weight Loss Tea, Green tea,

Diabetic Tea, Asthma Tea, Blood Pressure Tea)

CCD tea price (exclusive of tax)- Masala Garam- Rs.46 Assam Express- Rs.46 Darjelling Divine- Rs. 46 Lemon Demon- Rs. 46 Infinitea - Price Range: Rs. 100 – Rs 300 per person http://www.discoverbangalore.com/restreview18.htm

 

Our Price:

Lowest range from Rs. 20 to Rs. 150(inclusive of all taxes).

Initially low priced to capture market.

We will open our outlets near:

Colleges

Office going places

Places where target customers are usually present in large numbers

Advertising through billboards near colleges , corporate offices, multiplexes and malls.

Advertising through social networking sites.

Advertising through digital and print media. 

Name of our outlet T LOUNGE “Let the T begin”

Why T LOUNGE ??

Brand Ambassador:

Irfan Khan & Konkana Sen

Why we projected them as Brand Ambassador?

Thank you