CONCETTO

5.0
S27 | MICA, Ahmedabad

ADITYA BASU | PARVATHY GIREESH | PRABHUTI VAIDYA

 Problem Statement
We have analyzed the market and presented the strategy for retail
market for the following categories of tea:

To size the packaged retail tea market in India and CTC - Crush, Tear and Curl Tea
present an entry strategy for the retail tea market
considering the consumer behaviour and target Green Tea
market.
Orthodox Tea and Darjeeling Tea

45-54 years
By AGE 6.5%
USD 9162. 8 Million 18-24 years
27.7%
Total Market size of Tea and Coffee in FY
2020, as per Euromonitor 35-44 years Consumption
26.7%
Statistics
4.85% Expected annual growth in CAGR
from 2022-2025
Year 2021, (%)

By GENDER

2.4%
25-34 years
Expected volume growth in 2023 38.2% 41.2% 58.8%

Lower Income
Per Person Revenue for 2022, in
875.40 Rs. relation to total population

Middle Income
Consumption of tea in India in FY
1145 Mn KG 2021

Higher Income
By INCOME
0% 10 % 20 % 30 % 40 %
Data Source: Statista and Euromonitor

HUL has the second-highest market share in INDIA
Brooke Bond has better brand salience.
Both Brooke Bond and Brooke Bond Red Label have a high
brand share of 11.2% and 9.2% respectively.
With 70% of the market share, Tata Tea with its sub-
brands is the largest player in the CTC tea industry.
The brand has used its consumer affinity to drive social
awakening through a wide range of impactful initiatives.
COMPETITION
GTPPL leads the market share in Gujarat at 70%, where
its flagship brand ‘Wagh Bakri’ and ranks 7th in the
national market
Including the states of Gujarat, Rajasthan, Madhya
Pradesh, Maharashtra, Delhi & Hyderabad and it has
recently entered in states of Chhattisgarh and Goa

CULTURAL ADMINISTRATIVE GEOGRAPHICAL

C A G

Tea, the world’s most popular and cheapest beverage, also
known as ‘chai’ in many languages has a long history of about
5000 years.
Different Cultural ethnicities have their own variations of tea.
Consumption of tea varies as per cultural practices in different regions
such as food practices and lifestyle patterns.
A survey conducted by the Indian Tea Board reveals that 89 per cent
of people take tea as their habit, 8 per cent for refreshing their mind
and 3 per cent for appeasing hunger
ENVIRONMENT
Production of tea has lessened due to financial problems, Consumption of tea has no geographical
power problems, labour issues, poor labour schemes, restraint within the Indian subcontinent.
inadequate communication systems, increased pollution fees, Consumption of tea in India transcends climatic
less subsidy for transport. These issues have to be monitored differences of the states
for efficient production.
However, production wise, West Bengal and Assam
Labour temporization results in low cost labourers opting out of are regions with high production of tea.
the entire production process hampering the supply chain.
Pest hampers tea production in north India and this again derails
the entire process.

60 per cent of the consumers are indifferent to price, which signifies that they prefer quality (taste and colour) even at a higher price. It was observed that 50 per cent of the consumers

E
take tea as a habit. The habit of consumers refers to a preference for a particular type of brand and quality.
ECONOMICAL According to a consumer behaviour study, the price of a product has a very negligible impact on consumers, human beings are creatures of habit; hence, the habit has a strong role in
purchasing a product, rather than its price.
 A ACCEPTABILITY A AFFORDABILITY

FUNCTIONAL The affordability varies as per the income

class hierarchy of consumers.

Tea is associated with every aspect of the

The majority of consumers are indifferent
Indian culture from taking a sip in the evening
to price and give value to quality and taste
to a bride making some on her first day at in-
when it comes to the purchase of tea.
laws.

However, the average price range per KG

PSYCHOLOGICAL across different categories of tea on Fy
2021 can be seen as:

Tea is a form of sustenance and it drives

CTC: 193.98 Rs.
discussions and conversations across the

whole country.
Green Tea: 366.2 Rs

EMOTIONAL

Indians are used to considering 'tea' as a

A AWARENESS
fancy word. The emotional acceptability of
tea goes with the word 'chai'
Tea is one of the most consumed drinks in
Indian households.

A ACCESSIBILITY
Tea is accessible across the country from
loose to packaged to bags. 88% prefer
packet teas as they are of better quality.
West Bengal, Assam and Tamil Nadu are
the top 3 tea producing states in the
country.
While category wise, CTC is the highest
produced category of tea.
Consumers frequently change their preferences for a particular tea, influenced by:
Friends, Experience and Health benefits. Awareness should be increased through
the following techniques:
1. Free trials in grocery stores and hypermarkets to create an experience around the brand
2. An attractive shop display can influence the buying decision of the consumers. Shop
displays about the health benefits of a tea or gift offer with a tea can motivate the
consumers.
3. An apt referral system can be developed so that Word of Mouth increases around the
brand
4. Consumers are more aware of the immediate future. Hence if the tea gives such promises
(reduce heart disease, increase immunity etc.) to protect the future, consumers will
purchase it.