Chennur company is a 300 crore Chennai based tea

company

Characters involved in the case study are-

 Prem Warrier (Head of Corporate)
 Deepak Rai (Managing Director)
 Sumit Pandey (CFO)
 Anup Tandon (Marketing Head)
 Riaz (Management Consultant)
 The tea industry in India is about 172 years old.
 2nd largest tea producer and exporter in the world.
 The total turnover of the tea industry is around Rs 10,000
crore and since independence tea production has grown
over 250%, while the land area has just grown by 40%.

http://www.stockmarketsreview.com/extras/tea_industry_in_india_is_finally_picki
ng_up_after_a_tough_decade_20100618_15527
 Tea production in India: 980 million Kg.

 Tea export by India: 203 million Kg.

 Whilemajority of segment sales are from

unorganized sector, estimated size of Indian
packaged Tea market is approx `4,394cr

http://www.worldteanews.com/index.php/Features/The-State-of-the-Indian-Tea-Industry-
an-Outside-Perspective.html
Total Tea brand in the market: 1000
90% of the brands are represented by regional players.
Tata tea with 12 various sub brands.
HUL with more than 9 various sub brands

http://www.naukrihub.com/india/fmcg/overview/tea/
 Market share of leading player:

Tata tea : 20.2%

HUL : 18.8%

http://www.financialexpress.com/news/tata-tea-hul-war-brews-in-tea-
mkt/496631/.

 The unorganized tea market count almost 50% of the

total market.
 Option by implementing Ansoff Product
Market Growth Matrix

 Market Penetration
 Market Development
 Product Development
 Diversification
The major challenges faced by us are-

 Changing consumer profiles

 Lower price realizations
 Distribution network:

HUL-6.3 million outlets

http://www.wikinvest.com/stock/Hindustan_Unilever_(BOM:500696)

Tata tea- 1.7 million retail outlets

http://www.tatatea.com/comp_profile.htm
Range of products of competitors:

Tata products Unilever Products

◦ Tata Tea Gold Taj Mahal

◦ Tata Tea Agni Brooke Bond Taaza

◦ Tata Chakra Red label

◦ Tata Gemini Lipton.

◦ Tata Tetley 3 rose tea

 Rural market

 Overseas market

Exporting tea?????

Our competitors: Sri lanka, China, Kenya

Our market: UK, Russia, Middle east, Europe

Countries Consumption per capita
UK 2.3kgs
Ireland 1.5Kgs
New Zealand 1Kgs
Japan 0.9Kgs
Netherlands 0.8Kgs
Australia 0.8Kgs
Germany 0.7Kgs
Norway 0.4Kgs
Sweden 0.4Kgs
Austria 0.3Kgs
Finland 0.3Kgs
Italy 0.1Kgs
Weighted Average 0.7Kgs
Packaged Food market in India $10billion

Growth rate 9%

Branded Food market 7.5%

Share of the packaged food in the food Below 5%

and grocery market

The processed food consumption Lesser than 5%

 To change the business and enter completely into new
market is not desirable.

 As we already have skilled labour, production plant,

and people knowing about the tea industry so to come
in a new market is very costly affair which we cannot
afford.
 Competition from well established brand.

 Psychology of Indian house wives

 Our STRATEGY??????

 We will come out with T LOUNGE.


So what’s T LOUNGE???????
T LOUNGE is a place where customer will
enjoy different flavors of tea with a great
ambience.

 What CCD and Barista did with coffee we will

do that with tea.
 As CCD and BARISTA is a big hit in Indian market
so it’s a tested strategy which we can also try.

 As per market survey the tea consumption in India is

10 times than coffee consumption.

(http://www.joonktolleetea.in/coffee.html)
(http://www.dilmah.biz/newforum/index.php?topic=197.0)
 We can provide our customer the same ambience in the cost
which is much less compared to them.

 We have our own tea production house so we just have to do

marketing of our new concept.

 Assured quality of the products.

 Having the first player advantage.

Market for tea shop can be divided according to various
groups based on:

GEOGRAPHIC-
 City-Tier 1 cities (Metro cities), Tier 2 cities (Major

Capital cities)

DEMOGRAPHIC-
 Age-20 to 45
 Occupation- College going crowd & Corporate world.
PSYCHOGRAPHIC-

 Peoplesinterest in various products can be

determined by their lifestyles, and indeed
people can often express their lifestyles
through the goods that they consume.
BEHAVIOR

 Occasion- Regular
 Benefits- Quality, Service and Economy
 Consumption of tea -Medium to Heavy
 MARKETING MIX

4 P’s of Marketing-

• Product
• Price
• Place
• Promotion
 PRODUCT
• Plain Tea
• Black Tea
• Flavored Tea - (Massala Tea, Ginger Tea,
Elaichi Tea, Chocolate tea)
• Iced Tea –(with flavors)
• Herbal Tea ( Weight Loss Tea, Green tea,
Diabetic Tea, Asthma Tea, Blood Pressure Tea)
CCD tea price (exclusive of tax)-
 Masala Garam- Rs.46

 Assam Express- Rs.46

 Darjelling Divine- Rs. 46

 Lemon Demon- Rs. 46

 
Infinitea -
 Price Range: Rs. 100 – Rs 300 per person

http://www.discoverbangalore.com/restreview18.htm

  
Our Price:

 Lowest range from Rs. 20 to Rs. 150

(inclusive of all taxes).

 Initially low priced to capture market.

We will open our outlets near:

 Colleges

 Office going places

 Places where target customers are usually present in

large numbers
 Advertising through billboards near colleges ,
corporate offices, multiplexes and malls.

 Advertising through social networking sites.

 Advertising through digital and print media.

 
 Name of our outlet

T LOUNGE “Let the T begin”

 Why T LOUNGE ??
Brand Ambassador:

 Irfan Khan & Konkana Sen

Why we projected them as Brand Ambassador?

Thank you