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Aaesha Salian

Dipti Bharwada
Jayesh Mankame Jini varghese Rani Pansare Sagar Pitale

Vision:

Build long lasting relationships through trust by maintaining the Quality. Be result oriented. Be progressive and lead from the front. Change with the times. Be socially responsible. Return to the society a share of the gains from commercial enterprise.

Mission Statement:Serving the Taste of trust

Objectives:

Main objective is to become a national player. Wagh Bakri Tea Lounge objective is to offer consumers tea in a style of their own and enjoy drinking with their favorite choice of snacks.

Threat of New entrants


Encouraging Government Policies Like Food and Beverage Act. Focus is now on the existing Markets but if Focus changes for tapping the international markets than this may affect high market share in Gujarat as national players like HCL and Tata focusing towards these markets.

Bargaining Power of Suppliers


Large Number of Producers of tea in India
Suppliers product create Low switching Cost.

Industry rivalry
Approx 700 tea companies in India having intense rivalry among them Market dominated by large unorganized players. Low switching Costs. Slow Industrial growth

Bargaining Power of Buyers


Large Number of Buyers Buying the Product Bargaining Power of Buyers is extremely High as many options available Not Much product Differentiation in terms of taste and also Low switching Cost. Buyers Purchase large Proportion of Industry Total Output

Threat of Substitute Products


Substitutes Like coffee, juices, Cold Drinks, etc. Existing Consumers are Loyal Substitute Product price may be lower and price war is unavoidable Substitute Product Quality and Performance may be better

Strengths
The company has an advantage of its marketing research. The company has the quality consistency in their products and they are very keen about the quality of their product. The company has a variety of quality product according to the taste of consumers. The company has a great advantage of their goodwill in the market.

Weakness
Though the company has third position in the market, yet they have not captured the all over world market. One of the weaknesses of the company is oolong tea, it is mainly exported but it is not sold in domestic market even if may captured a good market share. It is tuff to sell tea in those regions were mainly people are non-tea drinkers.

Opportunities
To be a Market Leader nationally. Market Opportunity in Mumbai and to capture the Mumbai Local market. Launch of Exclusive tea bars ( Opened in Mumbai and now at other places.) Export Potential in some major Countries. To come up with New flavors of tea apart from the existing Flavors New Product Development Export Potential. Mergers and Acquisitions.

Threats
Rising inflation, which reduces disposable income of consumers Threat from loose tea Market Shares. Competition from MNC Global Competition Low Barriers. Globalization. The company faces competitions by HUL who has 10% growth in market. The company faces severe competition with regional players in some regions.

Tea Buying from the Tea plantations in Assam and Darjeeling.


Tea blending ( Mixing of Tea and making it in a powder form to make different blends of tea) Tea tasting by the top management

Tea Packaging in Pet Jars, packets and Staple Free bags


Tea Marketing ( Advertisements, Print Ads, Radio, TV)

Tea Selling ( Online, Retail Stores, distributors, etc)


Retail Outlets and Tea Lounge.

LOW-COST LEADERSHIP:-As name symbolizes Chai for all segments,


Nav-chetan for lower segment people Mili tea for mass market

Darjeeling tea for the Rich People.

BROAD DIFFERENTIATION:

Tea Bags- Staple Free bags ( Only company in india having staple free machines)

Consistent Quality and quality control for all the kinds of tea.

FOCUS STRATEGY BASED ON LOW COST:

Mili tea Good Quality at reasonable price.

VERTICAL INTEGRATION STRATEGIES:

Backward- By purchasing Tea Plantations for increasing the quality of products. Forward- Tea Lounge by giving wet sampling.

Entering new business: Tea Lounge Tea Plantations Related Diversification: Introduction of Iced tea with different flavors. Introduction of Coffee in the Future

PRODUCTS M A R K E T S
PRESENT NEW PRESENT Tea Blending Retailing Iced Tea Tetra Packs Organic Tea Introduction of Coffee

Entering into new markets in India Enter into Global Markets

Own Tea Plantations for quality control Tea Lounge

NEW

BCG Matrix
Market Share High Low

Wagh Bakri Tea


M A R K E T G R O W T H H i g h

Dling Tea Organic Tea

L o w

Mili Tea

Tea Bags

Competitive Strength Measure Relative market share Technology and innovation capabilities Brand name reputation/image Quality Control Price Competencies

Weight Strength 0.20 0.25 0.20 0.20 0.10 5 7 6 7 4

Weighted 1 1.75 1.2 1.4 0.4

Degree of profitability relative to competitors Sum of assigned weights Competitive strength rating

0.05
1.00

0.15

5.9