A PROJECT REPORT

ON

“TO STUDY THE CONSUMERS PERCEPTION ABOUT WAGH

BAKRI LEAF TEA V/S SOCIETY LEAF TEA”

IN PUNE REGION

UNDERTAKEN AT

IN PARTIAL FULFILMENT OF POST GRADUATE DIPLOMA IN

MANAGEMENT (PGDM)

FROM

BALAJI INSTITUTE OF MANAGEMENT & HUMAN RESOURCE

DEVELOPMENT (BIMHRD), PUNE

SUBMITTED BY:

ANUJ BANG- HRD1714180

PGDM BATCH 2017-19

GUIDED BY:

MR. AKSHAY MURTARKAR

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 DECELERATION
I hereby declare that the project work entitled “To study the consumers
perception about Wagh Bakri leaf tea V/S Society leaf tea in Pune region”
submitted to Wagh Bakri Tea Group, Gujarat is a record of original work done
by me under the guidance of Mr.Akshay Murtarkar, Trade Marketing
Executive and this project work is submitted in the partial fulfilment of the
requirement for the reward of degree in Post Graduate Diploma In Management.
The results embodied in the project have not been submitted to any other
University or Institute for the award of any degree or diploma.

Anuj Bang

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 ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to

Mr.Akshay Murtarkar, Trade Marketing Executive, for his valuable
guidance, support and encouraging words which helped me in completing this
task through various stages. I owe my wholehearted thanks and appreciation to
and the entire staff of the company for their cooperation and assistance during
the course of my project. I would also thank my Institution and my faculty
members without whom this project would have been a distant reality. I also
acknowledge with a deep sense of reverence, my gratitude towards my parents
and member of my family, who has always supported me morally as well as
economically. At last but not the least, gratitude goes to all my friends who
directly or indirectly helped me to complete this project report.

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 TABLE OF CONTENT

CHAPTER CONTENT PAGE NO.

Executive Summary 5

Chapter 1 Contextual Background 6-18

Chapter 2 Objectives 19

Chapter 3 Review of Literature 20-21

Chapter 4 Research Methodology 22-23

Chapter 5 SWOT Analysis 24

Observation Limitations &

Chapter 6 Recommendation 25-27

Chapter 7 Conclusion 28

Chapter 8 Bibliography 29

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 EXECUTIVE SUMMARY

This research is being conducted for Wagh Bakri Tea Group, to determine the
gaps and come up with recommendations for the Wagh Bakri Leaf Tea in Pune
Region. The Project stated with market visit, visiting various off premises
outlets to understand Wagh Bakri Tea market and also competitors market,
followed by market survey to find out the reason behind Consumers perception
for Wagh Bakri Leaf Tea VS Society Leaf tea, by way of Retailers and also by
Consumer feedback. Further analysing data and doing in-depth survey outlet
wise resulted in the reason for Society tea’s momentum as well the Perception
about Wagh Bakri tea in Society tea’s Consumer’s mind.

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 CONTEXTUAL BACKGROUND

INTRODUCTION

INDUSTRY OVERVIEW-

TEA PRODUCTION WORLD WIDE-

Tea has entered an era of value creation. Tea has become a major opportunity in
both value as well as volume in the global beverage market, and this is because
of its omnipresence nature in the beverage sector and its versatility as a product-
whether it is consumed hot or cold, sweet or unsweetened and as traditional,
healthy or as easy going drink.

Global Tea Market was valued at USD 46.932 billion in 2016, where the black
tea market was valued as USD 20.14 billion in 2016. The global market of tea
at retail is expected to grow by USD 7.9 billion dollars between 2017 and 2022,
with an average rate of expansion of 4% annually in real terms (better than
either coffee or other hot drinks).

Tea is growing in all the world’s regions, but well over half of growth by 2022
will occur in Asia, with USD 2.9 billion in China alone. Rising incomes and
expanding populations are making countries like Pakistan and Vietnam some of
the keys to the future of the tea industry at a global level. Whereas Indonesia,
India, China, Sri Lanka and Kenya are rated as the world’s largest tea exporting
countries.

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TEA INDUSTRY IN INDIA:

Tea isn’t simply tea in India but it is like a staple beverage here and a day
without it is impossible and incomplete. Indians prefer their steaming cup of tea
because for them it acts as an energy booster and is simply indispensable. This
popular beverage has a lot of health benefits too as its antioxidants help to
eliminate toxins and free radicals from the above. Originally tea is indigenous to
the Eastern and Northern parts of India. Indian tea is among the finest in the
world owing to strong geographical indications, heavy investments in tea
processing units, continuous innovation, augmented product mix and strategic
market expansion. The main tea-growing regions are in Northeast India
(including Assam) and in north Bengal (Darjeeling district and the Dooars
region). Tea is also grown on a large scale in the Nilgiris in south India. India is
one of the world’s largest consumers of tea, with about three-fourths of the
country’s total produce consumed locally.

According to the report of Economic Times 2016, Market share of Indian

companies in India-

Tata Global Beverages 29.59%

Hindustan Unilever 27.17%

Wagh Bakri 8.09%

Twinings 2.04%

Amar Tea 2%

Girnar Tea 1%

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INDIAN TEA MARKETS SCENARIO

 India ranks second largest tea producer worldwide.

 The country’s share of the world’s total tea output volume is estimated at
around 26%.
 In 2017, the country’s tea exports volume reached 240.7 million kgs
registering an 8.2% year-on-year increment.
 Besides, India boasts one of the most expensive domestic tea markets,
and only one-fourth of the country’s tea production goes for export.
 Still India holds a share of over 10% in the world’s total tea exports
 During 2016, major importers of Indian tea were Russia, United States,
United Kingdom, Egypt, Iran, Saudi Arabia, Germany, Morocco, Japan,
France, UAE, Canada, Vietnam, Netherlands, and Kazakhstan.
 The country is home to a wide variety of teas, including CTC tea,
orthodox tea, green tea and organic tea. Unlike many other
 Tea producing and exporting nations, India has a manufacturing base for
both CTC and orthodox tea, in addition to green tea.

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COMPANY PROFILE
Gujarat Tea Processors & Packers is engaged in the blending, packaging and
retail of tea in India. The company operates under four brands- Wagh Bakri,
Good Morning, Mili and Navchetan. It is also experimenting with tea lounges
and runs six tea lounges in the country. It is the third largest packages tea
company in India, by volume.

WAGH BAKRI TEA GROUP

Wagh Bakri Tea Group is a Premium Tea Company, having presence in tea
business since 1892. Shri Naradas Desai is the founder of this company. Today
it is the 3rd largest packaged tea company in India with a turnover of over Rs.
1100 Cr. and over 40 million Kgs of tea distribution. The group is a leading
stride in tea exports and retail consumer all over the world. With huge number
of Wagh Bakri tea lovers around the world, it has emerged as a truly global
brand.

The company enjoys undisputed market presence in Gujarat, Rajasthan,

Madhya Pradesh, Maharashtra, Delhi, Hyderabad, Chhattisgarh,Western Uttar
Pradesh & Goa and has recently forayed in to Punjab and Karnataka. Over the
years, a long-lasting relationship of love and trust has developed between Wagh
Bakri and its loyal consumers. Leaf from the best tea gardens is selected and the
group directors personally taste and evaluate the teas.

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HISTORY

It was in 1934 ‘Wagh Bakri’ brand was born. Before that it was known as
Gujarat Tea Depot Co. The company was renamed to Gujarat Tea Processors &
Packers Ltd.

During the year 1998 to 2003 Gujarat Tea Processors & Packers Ltd launched
‘Wagh Bakri’ Tea brand in Rajasthan, Madhya Pradesh, and other states in
India.

Between 2007 and 2009, ‘Wagh Bakri’ Tea brand was launched in the states of
Maharashtra, Delhi, Uttar Pradesh, and NCR (New Capital Region) India.

PRODUCT PROFILE

1) WAGH BAKRI

Wagh Bakri CTC Leaf Tea:

This tea is an undisputed leader in Gujarat, Madhya Pradesh and Rajasthan. The
tea is made of fine quality tea leaves specially handpicked from selected quality
gardens. The brand offers region specific blends for supreme consumer

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satisfaction.(Comes in a range of Rs5 & Rs10 sachets, 100gm, 250gm, 1/2kg,
1kg)

Wagh Bakri Spiced Tea:

A unique blend of seven authentic Indian spices and rich premium tea leaves.
Advanced process of blending ensures the goodness of seven spices absorbed in
every granule uniformly and gets released at the time of brewing.

Wagh Bakri Instant Tea Premix:

The instant tea premix comes with invigorating taste is a rich antioxidant with
multiple health benefits. The premix comes in a different flavors like Elaichi,
Ginger , Masala & Lemon Grass also comes in added and no added sugar packs.

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Wagh Bakri Green Tea:

Comes in different Flavour like:Green Tea Mint Tea Bags, Green Tea Tulsi Tea
Bags.

Wagh Bakri Ice Tea:

It's a no-fuss drink with a refreshing twist. Enriched with plenty of antioxidants
and pure flavour, it is sure to get you zippy in no time. Also comes in different
flavours like: Peach, Khus and Saunf, Aloe Vera & Litchi, Orange.

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2) Mili Tea:

Tea leaves handpicked from select quality gardens that give rich colour. The
right blend that gives strength and aroma that has been prepared by experienced
tea tasters, and also ensures more cuppage. Also comes in as-Mili Dust, Mili
Fanning.

3) Navchetan Tea:

It is an ideal tea in the economy tea segment and is considered a good blend in
comparison to local tea brands. It is hygienically packed to ensure safety. Also
comes in as Navchetan Dust.

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4) Good Morning Premium Tea:

Good Morning Premium Tea is preferred by connoisseurs as one of the finest

blends of tea. The blend had been prepared by Wagh Bakri's expert tea tasters
and promises a rich combination of aroma, taste, colour, flavour and strength.
Also comes in tea begs types like-Good Morning Early Grey Tea Bags, Good
Morning Premium Assam Tea Bags, Good Morning English Breakfast Tea
Bags.

Good Morning Green Tea:

Good Morning Green Tea Bags, Good Morning Lemon Tea Bags, Good
Morning Darjeeling Tea Bags, Good Morning Green Tea Tulsi Tea Bags, Good
Morning Green Tea Mint Tea Bags.

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Darjeeling Tea:

These prime Darjeeling teas are famous for its "muscatel" character, they are
orthodox tea which are unparalleled in the world. A wonderful appearing tea
gives rounded, fruity, mellow flavors and reddish infusion. The freshly hand-
picked 'two leaves and a bud' renders a flavour bursting with the summer sun
and refreshing warm summer rains. This tea will rejuvenate your body and its
earthy taste rekindles delicious memories in you. These come in different type’s
like-Moonshine Tea, Darjeeling Second Flush Tea, Darjeeling Oolong Green
Tea, Hand-rolled Autumn Darjeeling tea, Pure Darjeeling Tea.

COMPETITORS ANALYSIS
Main competitors of Wagh Bakri Leaf tea in Pune & PCMC:

Society Leaf Tea:

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From the doorsteps of Hasmukhrai & Co, established and acknowledged
master tea blenders in India since 1933, its long tea journey has taken Society
Tea from the initial tea bush to the tea cup. Today, Society Tea has become
more than just a household name known in the country and internationally for
its impeccable sense of taste. Society Tea has continually combined quality with
innovation to produce teas that retain both their fragrant aroma and exceptional
taste.

Red label Tea:

In 1903 Brooke Bond launched Red Label Tea it is one of the India’s most
preferred tea brand today. In earlier time, tea was consumed for refreshment or
just as a habit. Brooke Bond Red Label worked to create one of India’s most
favourite beverages ‘chai.’ Brooke Bond Red Label Tea is a blend CTC tea with
best quality leaves, processed in the unique Brooke Bond Tea Excellence
Centre.

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Tata Tea:

In 1983 Tata Tea was launched, it is India’s largest packaged tea brand. Tata
Tea keeps the diverse preferences of its consumers in mind, offering an eclectic
range of flavours and tastes in its portfolio of tea products.

Girnar Tea:

The journey began back in the year 1978 when the company started off as
exporters of Tea - in bulk and branded consumer packs. Having provided the
promised quality of tea year after year is now export tea to over 48 countries.

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Vikram Tea:

Vikram Tea, from the house of Vikram Tea Processor Pvt. Ltd. began its
journey in 1975 with the goal to bring the best tea into every household.

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 OBJECTIVES
Primary:

 To analyse the consumers perception about Wagh Bakri Leaf Tea V/S
Society Leaf Tea.

Secondary:

 To identify the reason behind the momentum of Society Tea.

 To identify the volume of market share of Wagh Bakri in Pune Region.

BENEFITS OF THE STUDY

• It has helped in understanding of tea market of Pune Region.

• It has given good insights about the channel distribution.

• Along with channel distribution, lot of things related to channels been

learnt, such as how to deal with the Retailers.

• Interaction with consumer has resulted in consumer preferences and reason

for choice.

• Sales and Trade Marketing goes hand in hand, mutual understanding and
communication leads to a good relationship with the retailers and consumers.

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 LITERATURE REVIEW

Consumer perception is more complex and even more important for retailers
today than in past. Individual customer has a set of preferences and values
whose determination is outside the realm of economics. They are no doubt
dependent upon cultures, education, and individuals tastes, among the plethora
of other factors. Preference indicates choices among neutral or more valued
options available. Consumer perception is measured in terms of the level of
satisfaction the consumer obtains from consuming various combinations of
bundles of goods.

Sharma M. (2015) Consumer perception is measured in terms of the level of

satisfaction the consumer obtains from consuming various combinations of
bundles of goods, consumer rank these bundles of goods according to the price
levels of utility company give to the consumer. Ability to purchase goods does
not determine a consumer's like or dislikes.

Vakhariya S., (2016) Private labels in India are on the growth path. With the
emerging private players, national brand manufacturers will have to compete
with the competition within the sales promotion and distribution channel, which
needed to change in marketing strategy, locally.

Mathur M. K., (2014) explained that most of the companies have tea in all
pack size - 2kg, 1kg, 500gm, 250gm, 100gm, 50gm and 25gm packaging. There
are also sachets, which are priced as low as Re.1. Various regions have
distinctive packaging preference for poly pack and box pack (mono cartons).
250 gm size is the most preferred size. Branded tea penetration is quite high in
cities like Delhi and Ahmadabad when compared to other major cities in India.

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Gracia and Magistris (2010) there are numerous factors which contribute and
affect the consumer’s awareness levels regarding the hot beverages. It has also
been investigated by many researchers that socio-demographic profiles of the
consumer, buying behaviour and knowledge about the nutritional content of the
beverages are few of the main points which affect the awareness levels and
impact the purchase decision.

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 RESEARCH METHODOLOGY

Preparation of the Procedure of Research is known as the Research

methodology. A Research Methodology is the arrangement of conditions for the
collection and analysis of data in manner that aims to combine relevance to the
Research purpose with economy in procedure.

 Research Type
Descriptive Research method for collecting data.This research involved a
study, which was descriptive in nature. It basically aims at gathering the
data about the respondent’s perception and preference. During the survey,
I have used Questionnaire and observation methods to gather information.

 Sample Size
The Sample Size for this research is 103

 Sampling Method
Convenient Sampling

 Sampling unit
Outlets, Consumers, Distributors

 Research Instrument
Questionnaires and interview method

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 Data Collection Method
Data has been collected through the questionnaire and interview method

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 SWOT ANALYSIS

STRENGTH:

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

WEAKNESS

 Though the company has third position in the market, yet they have not
captured the all over India.
 Brand should use different media for promotion.
 Less Brand Visibility on Social Media.

Opportunity

 The company has good opportunity to grow in the market by introducing

more variety of products according to preferred tastes of consumers.
 Should tie up with Hotels/Corporates.

Threats:

 The company faces severe competitions with regional players in some

region, like in Maharashtra its competitor is Society Tea.
 As now-a-days people are prefer other Beverages more

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 OBSERVATION

 On the basis of observation done in retailer’s outlets it is observed that

in some areas customers prefer those brands who give attractive offers
with the products.
 As my project was regarding to the comparative analysis, so I observed
that packaging of the product also play an important role on buying
behaviour of customer.
 While interacting with the retailers mostly where complaining about the
margins provided to them and also about the schemes.
 While visiting to Modern Trade, it’s been observed that in most of the
Dmart Wagh Bakri Tea product is placed in the lower facing not in the
front facing.
 In mostly area during interaction I came to know that consumers who
were using Society tea, they were using it since very long and where not
willing to change also, so it’s tough to convert that consumer to Wagh
Bakri tea.

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 LIMITATIONS

 Consumer’s unwillingness for response leads to low turnout ratio for

interactions.
 Retailers were non co-operative in giving any actual feedback or for
giving any past data or information about competitor’s brand.
 Retailer’s interaction was done in between the ISR working time from
10AM to 1PM, therefore 35-40 outlet per day could be covered.
 Due to hot weather interaction time of consumer and retailers was
different therefore retailers cannot interact in their business hours.
 Consumers perception is vary according to the time.

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 RECOMMENDATION
 Promotional offers should continue for minimum 4 months so that mass
percentage of audience will try the Wagh Bakri tea and eventually will
increase the sales.

 Promotional activities will help in increase the awareness of our product. As

per the above analysis its been clear that most of the consumers use social
media. So we can promote out product there by promoting advertisement
between the video on YouTube/Facebook/Instagram, also attractive offers on
e-market.

 In product packaging there should be more visibility of the product, as

customers can see what they are getting inside the packet. This will help to
assure that customer are getting the high quality product in particular price,
also this will building the trust with the customers.

 Different type of brandings like on Shop Board, Counter Branding, Product

display Hangers, Banners etc. to be done & to be focus more on the big
shops which eventually will attract the customers, and also will make the
appearance of our brand strong.

 To boost the sales, events to be conducted like wet sampling in more

frequent way in different areas.

 Attractive schemes to the retailers should be given so that they will push the
brand and help in increasing the Wagh Bakri market share.

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 CONCLUSION
Tea is a popular beverage and due to its extensive consumption worldwide
consumer becomes very fussy or particular about the brand and quality of the
tea. The consciousness about the beverage quality adds to many factors like
popularity of the tea brand, colour, price, packaging etc. This two month survey
is made to find out whether all these factors like popularity of particular tea
brand, colour, aroma, price and brand packaging really influences a consumer or
not. The extensive study is done in different regions of Pune city and a clear
conclusion can be drawn from the survey that consumer’s perception is different
for different brands, also product appearance and media plays an important role
in consumers buying behavior.

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 BIBLIOGRAPHY

 www.waghbakritea.com
 www.ibef.org
 www.statista.com
 www.scribd.com
 www.financialexpress.com
 www.economictimes.com

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