tea trading

8/11/2019 Tea Trading

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Tea

Marketing Plan

Korak K Majumder


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Green Tea Tea Market in India Competitors Analysis TG Mapping SWOT Analysis Product Price

Promotion Place ( Distribution Model and core working for Tea,Sanitary Napkin, Smoke free filter &* Non NicotineCigarette will be same as the distributor need to same)

INDEX


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Green tea is made solely from the leaves of Camellia sinensis that have undergone minimaloxidation during processing. Green tea had originated from China and has associated with manycultures throughout Asia. It has recently become more widespread in the West, where black tea istraditionally consumed. Many varieties of green tea have been created in countries where they aregrown. These varieties can differ substantially due to variable growing conditions, horticulture,production processing, and harvesting time.

Over the last few decades green tea has been subjected to many scientific and medical studies to

determine the extent of its long-purported health benefits, with some evidence suggesting thatregular green tea drinkers may have a lower risk of developing heart disease and certain types ofcancer. Green tea does raise the metabolic rate to produce weight loss, a green teaextract containing polyphenols and caffeine has been shown to induce thermogenesis andstimulate fat oxidation, boosting the metabolic rate, without increasing the heart rate.

According to a survey released by the United States Department of Agriculture, the main contentof flavonoids in a cup of green tea is higher than that in the same volume of other food and drinkitems that are traditionally considered of health contributing nature, including fresh fruits,vegetable juices or wine. Flavonoids are a group of phytochemicals in most plant products that areresponsible for such health effects as anti-oxidative and anticarcinogenic functions. However, basedon the same USDA survey, the content of flavanoids may vary dramatically amongst different teaproducts.

Green Tea


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Domestic Market Share

CTC

Black Orthodox

Green Tea

Flavoured Tea

*above figures as per the annual report of Tea Board.

Market of Green Tea


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To look at the market play, the totalbranded or the packaged tea (in variousforms) market in India is ~9500 croresgrowing at a CAGR of 5 percent. Thebranded tea in India can be classified intothe packed, tea bag, and flavoured teasegments whereas the unbranded segmentis usually the loose tea both in unpacked ortea bag form. As per industry estimates,unpackaged tea accounts for over 45% ofvalue sales of total tea sold in India and hasa dominance presence in the rural market.

With the aggressive marketing andpromotional schemes along with widedistribution system, the rural market isopening wings to the branded or thepacked tea brands national or regionalalike. In terms of packaged or branded teadistribution, almost the entire urban Indiais deeply penetrated by various brands. Asa typical FMCG product, the kiranas orindependent smaller merchants account forthe major channel accounting for as high as65-70 percent of the sales followed bysupermarkets and hypermarkets. The otherslow emerging segment is the on-tradesales of tea through food service formatssuch as tea lounges or tea cafes along withhundreds of chai shops. Most of theseformats use packaged or branded tea eitherof the manufacturer (Wagh Bakri Tea

Lounges, Goodricke Tea Caf) or smaller

packs of established brands. Anotherchannel of on-trade sales for packaged teais the tea vending machines increasinglybeen installed in large office complexes andhospitals etc, but this channel shall witnesscrawling growth due to the smaller streetchai shops that appeals more to the Indianpalate. Packet tea market is extremelypenetrated with multiple brands with morethan 300 brands in the country, dominatedby HUL and Tata tea which have a deeppresence in both urban and rural market,

across pack and variants and hencetogether account for 30-40 percent of thetotal market in the packaged tea segment.The other regional / national players areWaghbakri, Duncan's, Eveready, Goodricke,GPI, Girnar,Sapat, Dhunseri, Mohini,Society, Marvel etc. Among the brands,Brooke Bond, Taj Mahal, Red Rose, A1, TataTea Premium, Tata Tea Gold, Tata Tea AgniDust, Waghbakri, Duncans, Tata Tea ChakraGold etc are among the key brands sold inthe branded, packaged segment thoughUnilever was the only prominentmultinational player present in the Indiantea category and continued to be themarket leader in the industryNew introductions are being increasinglywitnesses amongst various brands andnotably by Twinnings green tea variants,

such as Green Tea and Mint, Green Tea and

Lemon, Elaichi, and Green Tea Jasmine.Also, A. J. Tea House launched new flavoursunder its GAIA brand such as Green Teaand Ginger and Green Tea and Lemon. Thetrend is expected to catch up with otherbrands and one shall witness more variantsand flavours being launched in green aswell as standard tea. Apart from the newproducts, the packaged tea brands are alsoexperimenting with pack sizes fromHORECA large packing to 5-10 rupeesachets, swiftly targeted at various

consumer segments. This is coupled withnew innovations being made in packaging,from thin standard packs, tea bags, pet jars,and tetrapaks to wooden and ceramicexotic gift packing for some of the premiumvariants offered by players such as ofDilmah, Infinitea etc.

Insight of Tea Market in India


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Consumer

Brands Retailer

National / International Buyers

Auction

Registered Broker Registered Buyers

Bought Leaf Factory Estate Factory

Estates Small Growers

Different Stake owners in Tea Marketing in India


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B2C Market- Green Tea majorly a favoritewithin health orientated youth. Age of 25-47.It is widely gaining customer day by day due to

health friendliness of the product. B2B Market- Through HORECA Sales, Hotels,

Resorts, Spas GYM and other healthy livingpromoting agencies demands are high forgreen tea and also Herbal and Fruit Infusionand Medicinal Tea.

TG MAPPING


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SWOT ANALYSIS

STRENGTH Strong Financial Support. Widespread presence in India. Tea Quality and Packaging is par industrytrend. Strong Inventory Management Strength. Quality Tea Sourcing capacity. Source from Origin. Direct from garden.

Opportunity Entry is open B2C and B2B both. Can create tea profile in CTC, HERBAL andMedicinal Tea and other new trendy tea line. Open tea packaging line as per sales projectionas industrial machinery are economical and wayof profit maximization. New Tea profiling can be created as it isemerging market.

Weaknesses Market is slow growth potential. CAGRof 5% annually.

Not a gardener. New entrant in the FMCG domain.

Threats Sourcing through known sourceotherwise difference of blend might

change taste, may occur to loosecustomer. Shortage of tea in market. Price fluctuation due to auction.


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PRODUCT

Green tea in tea bag form. Packaging is a par to market competitions. Organic Tea

Green attractive look to which easily signify theproduct quality. Loose CTC, Herbal Tea & Medical Tea, Other

Flavoured Tea, Vanilla Tea, Earl Grey, English

Breakfast, Kashmiri Kahwa etc. will increasebasket size which will also give perceived trustamong the customer about the product.


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POSITIONING

Dear TEAtizens,My purpose of existence is to enrich peoples lives

through the experience of finest handcrafted tea and the sip oflifestyle a life of health, delicacy and fun. Tea has been a drink thatis shared and enjoyed with others. Around the world, at high tea in

Devonshire or age-old ceremonies in Japan or on the rocks ofKolkata, tea is steeped and taken together with friends and familyas a ritual of warmth and nourishment. With each sip, the mind iscalmed, the spirit refreshed, and the soul is enchanted. And still,many have never experienced the flavor of a true cup of TEA. Myreason for existence is to handhold each TEAtizen on the road

leading to this rich experience of bliss. Our finest teas are madefrom hand-picked young shoots, the two leaves and bud that sproutfrom the very tip of the evergreen Camellia sinensis bush, from thefamous tea growing regions of the world.


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PROMOTION B2C SEGMENT

Tea Marketing depends on product profiling asgreen tea is niche in approach its steadily rising.

Newspaper advertisements along with TVC will

the preferred mode of media vehicle. It wouldused once the distribution line and geographicallocation of distribution are well defined.

Media have to regional specific. Brandendorsement can be useful, but wont beconsidered till we have widespread distributionchain.


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HORECA marketing will required high amountof marketing collateral and innovative productpresentation which will help position brand in

high end customer base with correct productextensions or modifications. Similarly Sponsoring Hi tea party to different

socialite of town will give the productshowcasing opportunity to high end customerof regionally brand will gain trustworthiness.

PROMOTION B2B


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COMMUNICATION MIX

TVC Brand Positioning main vehicle to be considered through TVC

PR &EVENTS

SPONSORSHIP

NEWSPAPER& Magazine

OUTDOOR

TRADEMARKETING

HITEA Party, Joggers Park Activity, Bringing smile to those faces who bring smile to face with eachsip of natures cup and activity with tea garden kids and promote same in Viral advertising.

SPONSORING BPL people to set UP Tea Corner named as Health Buddy

Corner. Can be done through help of Microfinance Institution.

Newspaper advertisement for high potential product while advertorial and product presentationthrough Magazine which help to communicate the range of basket of health buddy

This generally for capturing as much space and attention of buyer at GT.

Basically dealer Boards & Signage's, Wall Paintings etc.Trade marketing will consist sampling activity in weekends at hyper markets. Rack Merchandising

in MT. Shelf space in GT. Participating in Trade Fair like food & Hospitality this will gunner moreB2B clients

Digital platform is to share all things day to day basis the fun and updating people fun of having tea new offerseverything which we miss in Other media vehicle. SEO optimization for e commerce, face book, twitter,

advertisement through Google AD Space.DIGITAL


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I would suggest Kolkata to be area of rolldown model. But target must be the SouthIndia market.

Maket have lot of scope and still developing Focus Urban cities like Bangalore, Chennai,

Coimbatore, Trivandrum, Hyderabad,

Secunderabad, Vizag, Cochin, Mangalore etc. Distribution model kindly refer to FMCG

Distribution Basic Model.

PLACE


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tea trading

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