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TABLE OF CONTENT

Serial No. Topic Page No.


1. Front Page 1

2. Declaration Certificate 2

3. Certificate of Approval 3

4. Acknowledgement 4

5. Introduction 6-7

6. Current Market Scenario 8

7. Industry Overview 9-14

8. Company overview 15-18

9. Research Methodology 19-22

10. Data Analysis & Findings 23-30

11. Conclusion 31

12. Annexure 32-36

13. References 37
INTRODUCTION

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.
It has more consumption than any other type of drink available in the
market today. It is estimated that Indians 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 polyphenols, 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. Its leaves have the
chemicals, caffeine and tannin.
CURRENT MARKET SCENARIO

The target market of the tea industry in India is nearly 50% of the
population and yearly consumption is 130,000 tons. And the consumption
rate is still accelerating at a fast pace, which accumulates to be 6%
annually.
The distribution of consumers based on their income and purchasing
power profile is 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.
INDUSTRY OVERVIEW

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 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 manufacturing 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 color and flavor. 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 fiber 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 flavor. That is why
loose tea usually has a better flavor than the tea in a tea bag.
Types of Tea
The various types of Tea are as follows:

 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 flavor 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 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 labor-
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 savor 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.

 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 flavored
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
color. 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 color, 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 flavor. Pu-erh has been praised for generations for its flavor 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.
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 color 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 favorable 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 flavor, and are a real treat, especially for dedicated jasmine fans.
COMPANY OVERVIEW

 Tata Tea

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
approximately 159 km² under tea cultivation, Tata Tea produces around 30
million kg of black tea annually. 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.
 Brooke Bond Tea

Brooke Bond is a brand of tea owned by Unilever, formerly an


independent tea-trading and manufacturing company in the United
Kingdom, known for its PG Tips brand and its Brooke Bond tea
cards.

Brooke Bond & Company was founded by Arthur Brooke in 1854. In


1869 he opened his first tea shop at 23 Market Street, Manchester.
Brooke chose the business name because it was his 'bond' to his
customers to provide quality teas, hence Brooke Bond. The firm
expanded into wholesale tea sales in the 1870s.

In 1903, Brooke Bond launched Red Label in British India.

The company merged with Liebig in 1968, becoming Brooke Bond


Liebig, which was acquired by Unilever in 1984. The Brooke Bond
name was significantly decreased by Unilever; however, the Brooke
Bond tea brand was reintroduced on sale in 2019 in the UK after a
20-year absence.
The brands of the company along with their origin are as follows:

 Brooke Bond Taj Mahal tea leaves are grown in estates of Upper
Assam, Darjeeling and Tripura. It grows on the northern banks of the
great Brahmaputra, which floods its banks every monsoon, creating a
rich, humid soil. There is plentiful rain in the monsoon and humidity
lasts through the year. The soil and weather together give Assam Tea
its 'terroir' – a dark red brew, a strong malty flavor and deep body.

 Brooke Bond Red Label, the Indian blend, is made in tea


manufacturing units of Assam, Coochbehar, Darjeeling and some
parts of Meghalaya. The manufacturing process of tea includes the
stages of withering (leaving tea leaves to dry), rolling/cutting
(through which complex series of chemical changes known as
oxidation are initiated), drying and then grading into sizes.

 Brooke Bond Taaza is made of High Quality fresh Green Tea


Leaves.

 Brooke Bond Supreme is imported to Pakistan, made from Kenyan


tea leaves.
RESEARCH METHODOLOGY

 Introduction

This Survey is a Comparative Analysis between TATA TEA &


BROOKE BOND RED LABEL. This survey is carried out to
ascertain the competitive position of the two brands in the market
and the attitudinal profile of the consumers. Also, the preference of
the consumers towards a particular brand and the underlying reasons
for the preference will also be underlined. The Target Area of this
study is Ranchi City and Target Population is urban households. A
representative sample of 100 people is selected for the purpose of the
study. The study was carried out for a period of 15 days.

 Problem Statement
To ascertain the competitive position of the aforementioned brands
and trace the attitudinal profile and preference of the consumers
towards a particular brand and the reasons for their choice.
 Research Objectives
The Objectives of the Research are as follows:

 To understand the attitudinal profile of consumers towards both the


brands and thus know their preference.
 To understand the competitive position of Tata Tea & HUL’s Brooke
Bond Red Label in the consumer market of Ranchi.
 To understand the various aspects of the Marketing Mix of both the
Brands.
 To get an insight into what the consumer believes affects them and
what does not.

 Scope of the Research

 This research is done to understand the preference of the customers


among the 2 major players of the branded tea market namely Tata
Tea & HUL’s broke Bond Red Label. Also, the reasons behind their
preference will also be underlined.
 The population studied for the research is urban people and
households of Ranchi City.
 The research was carried out for a period of 15 days.
 A representative sample of 100 people were drawn from the
population and the results were projected to the entire population and
generalized.
 Research Design

1. Data Type - Primary Data


2. Research Tools - Questionnaire
Internet
Interaction with People
3. Population - Urban Households of Ranchi City
4. Sample Units - Individual Consumers
5. Sampling Method - Random Sampling under similar
conditions.
6. Sample Size - 100
7. Method of Data Collection- Survey Method
8. 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.
9. Analysis Tools - The data so collected will be
analyzed through the application of
statistical techniques, such as bar
graphs and pie charts.
 Assumptions taken during the Survey
The following assumptions were taken during the survey:

 Samples collected are representative of the entire population.


 Modern consumer is conscious about their purchase and their
awareness level is high.
 Consumers are more curious about the product, quality, price and
features offered

 Limitations of the Survey


The probable limitations of the survey are as follows:

 Limited amount of Time was available to carry out the research.


 Cost Constraint was there to carry out the survey.
 Due to time and cost constraint, the sample size selected was small.
DATA ANALYSIS & FINDINGS

To find out the preference among the buyers between the two brands, a
survey was rolled out to 100 people of the Urban Households of Ranchi.
The survey was carried out for a period of 15 days.
The questions asked and their responses in the form of a pie chart are
displayed below:

Question 1: Age Group of the Respondent.

According to the above pie chart , 87.1% of the respondents were between
the age of 18-25 years and were either students or working.
Question 2: Are you an ardent Tea Drinker?

58.1 % of our respondents were Ardent Tea Drinkers and liked to consume
tea.

Question 3: How many cups of Tea do you drink in a Day?


According to the Survey, 74.2% of our respondents consumed 1-3 cups of
tea on a daily basis, 22.6% consumed 4-6 cups of tea daily and 3.2%
consumed more than 6 cups of tea daily.
This proves that a substantial chunk of the population likes Tea.

Question 4: Which one of the following brands do you prefer?

According to our survey, 74.2% of the respondents preferred to purchase


and consume Tata Tea over Brooke Bond Red Label.
Question 5: Which Brand do you prefer on the parameter of Pricing?

According to our survey, 77.4% of the people preferred Tata Tea over
Brooke Bond Red Label on the parameter of pricing strategy. The price of
a 250 gms packet of Tata Tea is around Rs. 135 whereas the price of
Brooke Bond Red Label of the same pack size is around Rs 140-145.

Question 6: Which brand would you prefer on the parameter of


product quality?
According to our survey, 77.4% of the respondents preferred Tata Tea
over Red Label Brooke Bond on the parameter of Product Quality.

Question 7: Which brand do you prefer on the parameter of product


packaging?

According to our survey, 71% of the respondents preferred Tata Tea over
Brooke Bond Red Label on the parameter of product packaging.
Question 8: Which Brand do you prefer on the parameter of
Promotion Mix (Quality Advertisements, Offers etc.)?

According to our survey, 54.8% of the respondents preferred Tata Tea


over Brooke Bond Red Label on the parameter of Promotional Activities.

Question 9: Which brand do you prefer on the parameter of easy


availability and better distribution of products?

According to our Survey, 61.3% of the respondents preferred Tata Tea


over Brooke Bond Red Label on the parameter of Easy Availability.
Question 10: Which brand do you prefer on the basis of product
innovation?

According to our survey, 77.4% of the people preferred Tata Tea over
Brooke Bond Red on the parameter of Product innovation.

Question 11: Do you like experimenting with new brands?

According to our Survey, 61.3% of the people wanted to stick to their


preference and did not wanted to switch over to some other products. This
is the evidence of the brand loyalty of the customers towards their
preferred brand.
The above results portray that there is an inclination of the customers
towards Tata Tea in all the parameters and also, they do not want to switch
their preference.
Thus, projecting the results of the Sample on the entire population we get
that around 70% of the Population are inclined towards purchasing and
consuming Tata Tea. This is a clear indication of the positioning of the
brand and the perceived brand equity of Tata Tea in the minds of the
consumers.
CONCLUSION

The prime conclusion that can be arrived at after this project is there is
substantial inclination of the consumers towards Tata Tea over Brooke
Bond Red Label Tea. This inclination is proved by the survey which was
conducted to comprehend the attitudinal profile of the consumers and their
preference between the two aforementioned brands.

Tata Tea was preferred over Brooke Bond Red Label on the following
parameters:

 Product pricing
 Product Quality
 Product Packaging
 Promotional Mix of the Brand
 Easy Availability and Distribution of the Brand
 Product Innovation

Thus, we can say with much affirmation that Tata Tea is a better option
than Brooke Bond Red Label and the perceived Brand Equity of Tata Tea
in the minds of the consumers is much more than that of Brooke Bond Red
Label.
ANNEXURE

The Questionnaire used for the survey is attached below:


REFERENCES

The Books and Websites referred to complete the project are as follows:

 Marketing Management by Philip Kotler


 Project Management by P. Chandra
 www.tatatea.com
 www.brookebondtea.com
 www.unileverindia.com

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