Market Segmentation

for Green Tea

Case C Study
Global Green Tea Market

Market Overview
 Green Tea is manufactured from leaves of camellia sinensis which does not go
through with withering and oxidation process like black tea. Green Tea
contains antioxidants such as flavonoids and catechins which helps in
preventing damaging of cells and molecules and improves health conditions.
Regular consumption of green tea lowers risk of developing breast cancer by
25%, 50% reduction of developing prostate cancer and risk of developing
colorectal cancer is estimated to be lower by 60%. Green tea also helps in fat
burning and weight reduction while increasing the fat oxidation rate by 17%.
These are some of the key factors which are driving the growth of global
green tea market. Moreover, ready to drink green tea is gaining traction
among the consumer due to the increasing urbanization and busy schedule.
Thus manufacturers of green tea are now focusing to enhance packaging
solution of green tea in order to attract new customers. In 2017, Tata Global
Beverages (TGBL) entered into the ready-to-drink (RTD) green tea business,
which is spearheaded by Tetley in Canada and Tata Tea in India.
Market Size and Forecast

 The global green tea market is anticipated to reach USD 50 billion at a CAGR
of 7.5% over the forecast period i.e. 2016-2024. In 2016, nearly 1.7 million
metric tons of green tea was produced and the value is expected to reach
over 3.5 million metric tons by the end of 2024.
 Asia-Pacific is the dominating region for green tea market and accounted for
nearly 62% revenue share of global green tea market in 2016. China is world’s
leading producers and exporters of green tea followed by Vietnam, Indonesia
and Japan. Growing health awareness about consumption of green tea is
expected to strengthen the dominance of Asia-Pacific region in green tea
market. Europe is expected to witness healthy growth for green tea market,
owing to the increasing health awareness among consumers and shifting
towards healthy life style.
 Mounting health concerns such as high cholesterol and overweight in North
America is boosting the demand of green tea in this region. North America is
expected to grow at a CAGR of 3% during the time period of 2016 to 2024.
Latin America and Middle East & Africa region is also expected to witness
Product

The global green tea market is categorized on the following basis:

Product Type
 Flavored
 Lemon
 Cinnamon
 Basil
 Others (Jasmine, Vanilla)

 Unflavored

Packaging
 Loose Leaf
 Tea Bags
Market Segmentation
Geography Segmentation
 North America (U.S. & Canada) {Market Size (USD Billion), Growth Analysis (%)
and Adoption Rate (%)}
 Latin America (Brazil , Mexico & Rest of Latin America) {Market Size (USD
Billion), Growth Analysis (%) and Adoption Rate (%)}
 Europe (The U.K., Germany, France, Italy, Spain, Poland, Sweden & RoE)
{Market Size (USD Billion), Growth Analysis (%) and Adoption Rate (%)}
 Asia-Pacific (China, India, Japan, Singapore, South Korea, Australia, New
Zealand, Rest of Asia) {Market Size (USD Billion), Growth Analysis (%) and
Adoption Rate (%)}
 Middle East & Africa (GCC, South Africa, North Africa, RoMEA) {Market Size
(USD Billion), Growth Analysis (%) and Adoption Rate (%)}
 Rest of World {Market Size (USD Billion), Growth Analysis (%) and Adoption
Rate (%)}
Convenience driven consumers
 Online
 Offline (Super market, Tea Shops)
Benefit Seekers
Benefits
• Loaded with antioxidants and polyphenols.
• Said to be helpful in boosting metabolism and weight loss.
• Helpful in lowering cholesterol.

• NUTRITIONAL INFORMATION PER 100G

• Energy • 345.83 Kcal • Carbohydrate • 65.47 g
• Fat • 0.99 g • Sugar • 11.11 g
• Protein • 18.76 g
Market Drivers and Challenges

 Green tea contains bioactive compounds which improves brain functionality

and physical performance. Consumption of green tea lowers the risk of
developing diabetes, cardiovascular diseases and cancer. Green tea also
reduces the risk of neurodegenerative disorders such as Parkinson’s and
Alzheimer. This is the key factor which increases the adoption of green tea
among ageing population. Medicinal aspects of green tea are fuelling the
demand of green tea throughout the world. Moreover, introduction of
innovative flavored products is likely to increase the consumption rate of
green tea in near future.
 However, lack of awareness about the medicinal benefits of green tea and
high price is projected to restrict the growth of global green tea market
primarily in developing economies.
Conclusions
 Rising awareness of the consumers about health benefits associated with
organic foods, increasing average household annual spending, expanding
distribution channel, greater accessibility through retail outlets, surging
environmental concerns, aggressive marketing strategies being adopted by
companies and online retailers are expected to influence organic food and
beverage sales across the globe. In addition, a number of organic food
manufacturers are also complying with international standards and are
labelling their products accordingly in order to increase global acceptability
of these products.
 Short-term spikes and troughs have been the story of organic tea, highlighting
just how difficult a market it is to operate effectively in. Careful selection
and development of target markets and distribution channels focus on the
right customers, improvement in customer service skills and conversion of
occasional buyers into regular organic buyers through large retail outlets are
of the utmost importance for the growth of the organic tea. Proper packaging
is crucial to the success of any product, with tea being no exception. Although
packaging has no influence on the quality of the product within but it can
certainly be grab the attention of the consumer, which can be just as
important as the product itself. Based on the packaging type, organic tea
 DISTRIBUTION STRATEGY

1. Every company’s motive is to have wide distribution channel.

2. Every company aims to provide its product at a right time at a right place.
3. Distribution channel in marketing are one of the 4p’s.

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 MISSION

To serve each other by promoting good health, well being and opportunity for
abundant quality of life

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 P.E.S.T. ANALYSIS

P->POLITICAL E->ECONOMIC S-> Social T->Technological

1. Tax policy 1. Economic growth 1. Population Growth Rate 1. Automation

2. Labor law 2. Interest Rate 2. Age 2. Technological

3. Political stability 3. Exchange Rate 3. Religion Changes

4. Trade restriction 4. Inflation Rate 4. Education 3. Innovation

4. Modification

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 SWOT ANALYSIS

1. Widest known tea brands

2. Good adaptation rate
3. Distribution
4. Taste
5. Good marketing

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 WEAKNESS IN SWOT ANALYSIS

1. Low market share in high tea drinking countries

2. Substitutes

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 THREATS IN SWOT ANALYSIS

1. Competition
2. Government regulations on import and export

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 S.T.P.

Segmentation
1. Demographic segmentation: Young working peoples(25-40 years), college
students (18-25 years) and health conscious people (above 40 years)
2. Geographic segmentation: All major cities.
3. Psychographic segmentation: upper class, middle class
4. Behavioral segmentation: Health conscious people, brand loyal or not

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 S.T.P.

TARGET
1. The product targets mainly the audience that is health conscious, energetic
and self driven towards their physical and emotional well being
2. The main target audience at present is from middle class and upper middle
class, resulting to pricing strategies being made accordingly.

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 S.T.P.

POSITIONING
1. Highest tea quality benefits as leaves are selected from the finest tea plants
globally.
2. Healthy product
3. The product which will give you peace of mind
4. Best tea drinking experience

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 4P’s

PRODUCT
Green tea is one of the famous tea product in world. In addition to its
established superiority this product is highly classical and highly beneficial such
as
Boost energy
lower cholesterol
strength in bones
protect liver
prevents cancer

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 4P’s

PLACE
1. The marketing channel has been affected by business users, consumers, large
scale/small scale orders, geographically concentrated or diverse, product
factors such as expensive/inexpensive, product line and importance of
product control.
2. They are manufacturers, wholesalers and retailers for product distribution to
consumers in the market. Initially, the product has focused over India and
they expanding over the world through distributors.

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 4P’s

PRICING
1. Green tea caters mass market that includes people from every sections of
society.
2. They are many companies who manufactures the product and they face
competition from various companies so each one has to maintain competitive
prices to retain its advantage over competitors
3. Competitive pricing, quantity discount pricing and cash discount pricing are
extensively used by many companies
4. Intelligent packaging, great quality and comparatively low prices have made
the beverage accessible in the global market

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 4P’s

PROMOTION
Different companies have extensive marketing strategy
1. Television-advertisement with different tag lines
2. Social media out reach by marketing on Facebook, twitter and you tube
3. Sponsoring different events
4. Brand realize the positive impacts of celebrity endorsement on common
masses has roped in many Indian as well as international actors for the
product

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