LOVELY PROFESSIONAL UNIVERSITY

A REPORT
ON
CATEGORICAL MARKETING ANALYSIS OF BROOK
BOND RED LABEL

UNDER
DR. MURAMALLA VENKATA

SUBMITTED BY:
SHASHANK JHA
MBA BUSINESS ANALYTICS
12112502

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 Contents

S.N. Topics Page

1. Declaration 3

2. Acknowledgement 4
3. Introduction 5
4. Analysis of various marketing aspects of Brook Bond Red
Label
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4.1. Market Orientation

4.2. Environmental Analysis

4.3. Competition Analysis

4.4. Value addition activities

5. Conclusion
6. References

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Declaration

I, Shashank Jha, hereby declare that the project work entitled “ Categorical
Marketing Analysis of Brook Bond Red Label” is my individual work.

I have not copied it from any other student’s work or from any other source except
where due acknowledgement is made explicitly in the text, nor has any part been
written for me by any other person.

Name of Student: Shashank Jha

Signature:

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Acknowledgement
I would like to acknowledge my heartiest gratitude to everybody who helped me
through the successful completion of my project which is an enriching source of
learning for me.

I am profoundly grateful to my faculty guide Dr. Muramalla Venkata for his

scholarly guidance in all the matters during this project. I am thankful for his
valuable assistance and encouragement. His significant suggestions for the
improvement of all the aspects of this project made this study a great learning
experience. I also feel gratified to express my thankfulness to my teachers; my
guide and my friends, for adding their support in making this project an ingenious
blend.

Shashank Jha

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Introduction

Brooke Bond Red Label is one of the India's biggest selling tea brands. It is 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. It
was founded by Arthur Brooke of Lancashire, England in 1845. The brand name
Brooke Bond was chosen because it was his 'bond' to his customers to provide
quality teas. Brooke Bond launched red label in British India, in 1903. Brooke
Bond's most famous brand is PG Tips launched in 1930. By 1957, it was the
largest tea company in the world with a third of share of both British and Indian
Market.

Red label is the Indian blend of Brooke Bond and is made in tea- manufacturing
plants of Assam, Cooch Behar, Darjeeling and Meghalaya in some parts. The
manufacturing process of tea includes the stages of withering (Drying the leaves),
initiation of oxidation through rolling/ cutting, drying and grading into sizes.

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Marketing Orientation of Brooke Bond Red Label

1. Distribution Channel: Brooke Bond has an established supply chain network

and an intensive distribution channel that helps in a timely and efficient dispatch to
the retail market. Both direct and indirect channel of distribution for products are
adopted including the services of manufacturers, wholesalers and retailers to reach
its consumers.

2. Market Penetration: Brooke Bond has successfully marked its name and
penetrated both the urban as well as rural market. Because of this reason, its
product is easily available in every nook and corner of India.

3. Smart Play: Brooke Bond have tie ups with hotel and corporates who sell its
product through several tea junctions which makes Brooke Bond tea and directly
sell it to its customers. Some of those corporates are Spot on enterprises, Grace
enterprises, Omkar Logistics and Export.

4. Expansion: The continuous commitment of Brooke Bond Red Label tea has
created a positive impact on its consumers which has resulted in the expansion of
the brand. Brooke Bond's network in countries like India, United Kingdom, Japan,
West Indies and Pakistan shows how popular it is around the globe.

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Environmental Analysis of Brooke Bond Red Label

Various environmental factors based on which Brooke Bond Red Label makes
strategic decisions are given below:

1. Recycling: There is increasing focus on environmental sustainability and

recycling these days, given we are facing danger from global phenomena like
'Global Warming' and 'Green House Effect'. Consumers are becoming more aware
and demanding ways for recycling products to be disposed off and recycled
products for consumption.

Thus, Brooke Bond Red Label has introduced a novice product line of recycled
products for the benefit of consumers. Also, it has launched specific sites for
disposing off products to be recycled.

2. Waste Management: India has high regulations for waste management and
control. Brooke Bond Red Label has associated itself with waste management
authorities and institutions to be able to follow regulations, maintain checks about
any future discrepancies. In view of environmental sustainability, it already has
controlled and designated process of managing waste and disposing waste in an
environmentally friendly manner.

3. Green Consumption: Consumers in the country across all markets are

increasingly preferring green products and services i.e. produced and marketed
using environmentally friendly and sustainable ways and methods. Brooke Bond

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Red Label has also introduced a green product line which is a variation of its
existing products.

Brooke Bond Red Label plans on an added weightage for green product line in
gradual fashion. Brooke Bond Red Label also contracts with suppliers and
distributors in its integrated back chain who are following strong principles with
regards to environmental sustainability.

4. Renewable energy investments: Emphasis on use of renewable energy is

needed to reduce the environmental footprint by the market as well as reduction of
carbon effects. Brooke Bond Red Label is increasingly making use of solar energy
and hydroplanes for business processes and operation management. Also, for its
manufacturing operations, it has company-controlled hydropower plants on a small
scale.

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Competitive Analysis of Brooke Bond Red Label

The major competitors of Brooke Bond Red Label in India are:

1. Tata Tea: A fast moving consumer tea company. It is world's second largest
manufacturer and distributor of tea.

2. Godrej Tea: Part of Godrej Consumer products limited managed and largely
owned by Godrej family

3. Lipton: A British brand of tea owned by Unilever. The Lipton ready to drink
beverages are sold by 'Pepsi Lipton International', a company jointly owned by
Unilever and Pepsico.

4. Darjeeling tea express: Producer of world-famous Darjeeling tea earlier known

as Bara Ring tong. Tea plants were first planted in Darjeeling region in mid 1800s
and came as an alternative to Chinese tea.

As mentioned in the earlier part of the report, Brooke Bond Red Label occupies
one-third of Indian market share so the above mentioned brands occupy the other
two-third. A graph showing market shares of various tea brands in India in 2010 is
shown below.

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Figure 1: A Graph Showing Tea Sales of India in 2010

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Value Addition Activities of Brooke Bond Red Label

1. Brand Visibility: Brooke Bond Red Label has a very strong brand Portfolio.
They use creative advertisements for rise of their brand visibility. They put
emphasis on ad campaigns that acknowledges women empowerment and their
need to drink Brooke Bond Red Label tea. Its catchy commercials can be found all
over television, radio, newspaper and magazines. Taglines like 'Chuskiyaan
Zindagi ki', 'Ras Pyaar ka' and 'Waah taaj' comes handy to lodge themselves in the
minds of the consumers.

2. Flavor and Taste: The unique taste and flavor of the brand makes the customer
fall in love with it. The customer loyalty base has increased due to this unique
blend. A good brand recall and equity has been established in the market because
of this. Brand uniqueness has also been established due to a very distinct aroma of
the tea.

3. Packaging: Each product comes with a catchy packing which would look very
appealing and attractive and easy on the eyes so that the consumers easily choose
them from shelves. The packaging has helped the brand to increase the volume of
sales and attract the existing as well as first time consumers.

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Figure 2: A Standard
200 gm package of Brook Bond Red Label Tea

4. Pricing: Brooke Bond Red Label does a thorough competition analysis through
its marketing team and then consultation on this basis is done by the analytical
team. Then it decides to enforce a value addition pricing policy suitable for both
the consumers and company. Product availability in various sizes also makes it
easier for customer to buy them as per their needs.

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Conclusions

1. Brooke Bond Red Label is the largest and oldest tea manufacturer in India. It
leads the tea market in India as well as Great Britain.
2. Its special features and unique quality distinguish it from other tea brand.
E.g. Its strong aroma and pioneering of innovative products help attracting
the customers.
3. Due to its popularity, it is also known as 'Tea-cup of the nation'.
4. Its emphasis on production maintaining the environmental sustainability
makes it an ideal brand.

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References
 Brand Yuva: https://brandyuva.in/2019/03/brooke-bond-marketing-
strategies.html

 Slide Share: https://www.slideshare.net/jontiroads/brooke-bond

 247 Case analysis: https://www.247caseanalysis.com/case/Hindustan-

Unilever-Brooke-Bond-Red-Label-s-6-Pack-Band-22034-Pestel-Analysis
 Pricemandu: https://pricemandu.com/products/brooke-bond-red-label-
tea-200g-a26350544d37a9f48f3fbbd5ebeb3577/

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