Term Paper on Marketing Plan Of Tea

Submitted to lovely professional university

In partial fulfillment of the

Requirements for the award of degree of

Master of business administration

Submitted by

Jitendra kaushik

Section-1809A07

University registration no.-10808434

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(2008-10)

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Acknowledgement

A hearty thanks to all those who support me………….

Acknowledging any one in mere word is a very difficult job. I would like to pay my sincere thanks to all

those people who helped me during this project work for their guidance and invaluable advice.

First and foremost, I express my sincere ineptness to the almighty for bestowing me with favorable

circumstances and keeping me in the high spirits. This project is the end of the product of valuable

contribution of the many persons to whom, I remain indebted.

This research would not have been possible without the support of my teacher ajay chandel Therefore it

is a great pleasure to acknowledge the support. She was there guide to me at every step.

I am highly thankful to all the people, related directly or indirectly and the respondents for being

cooperative and sparing a few moments from their busy schedule; without whose help this report

wouldn’t have proven meaningful.

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1. Executive Summary..............................................................................................................3

2. Product Description:.............................................................................................................4

3. Situation Analysis.................................................................................................................8

4. Market Trends & Growths..................................................................................................13

5. Market Needs:.....................................................................................................................17

6. SWOT Analysis..................................................................................................................18

7. Explanation of the 7 P’s......................................................................................................19

8. Competition........................................................................................................................20

9. Marketing Objective...........................................................................................................22

10. Issue Analysis.....................................................................................................................23

11. Assumptions.......................................................................................................................23

12. Marketing Strategy:............................................................................................................24

13. Product Policy.....................................................................................................................25

14. Marketing Mix of Royal Tea..............................................................................................27

15. Action Plan.........................................................................................................................30

16. Financial Projection:...........................................................................................................31

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1. Executive Summary

The marketing plan includes the fundamental for the introduction of newcomer in the Indian Tea

market known as Royal Tea. The Internal & External analysis of the organization, competitive

environment enables the team to propose dynamic & competitive strategy for Royal Tea. Royal

Tea is an innovative product which is close to herbal tea and black tea and this product can serve

as body cleanser. Product Description:

Intestinal wellbeing is essential to sustain a healthy body and should be preserved and

maintained daily.  This is the only product that does that safely and effectively. While not an

easy topic to address, Colon and Intestinal cleansing is a subject that needs to be dealt with in the

quest for weight management, vital health and longevity. Royal Tea is a safe, natural, and

powerful means of promoting the healthy elimination of potentially harmful toxins and waste

while opening the pathway to superior assimilation of important nutrients. It promotes the health

and longevity of many organs, systems, glands and metabolic processes that are dependent on the

condition of your digestive system.

The use of Royal Tea has many additional benefits: it improves overall digestion, strengthens the

immune system, reduces mucus congestion, makes the skin more emollient and flexible, clears

the eyes and provides an overall boost to the energy of your system. It aids in cleansing and

detoxifying the blood, kidneys, liver and lymph. As well, it helps to eliminate parasites, bad

bacteria, viruses and fungus on a daily basis by releasing heavy metals and increasing the pH of

the body.  Royal Tea is a safe and gentle cleanser that also helps reverse the aging process.

During the digestive process, moisture is extracted from consumed materials. As a result, the

matter becomes gluey and coats the walls and fills the pockets of the colon and intestines. This

waste becomes stagnant and is no longer able to pass through the digestive tract. Layer upon

layer of this rubbery substance begins to block the walls of the colon and small intestine,

preventing your body from absorbing the nutrients you need. These stagnant layers, usually

black in color, are potentially dangerous and are referred to by doctors as "mucoid plaque".

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The average individual is carrying between 7 and 25 pounds of old, hardened waste within his

digestive system. Worse still, this vile matter quickly begins to rot, creating foul odors, and

gases. This cesspool of decomposing material permits an immense number of bad bacteria and

deadly fungus to thrive within the human body. During the decaying process, these substances

can enter the bloodstream and affect every part of the body. Unfortunately, the average

individual does not commonly recognize the effects of the mucoid plaque because what is

abnormal has become normal to the majority of the population.

This waste (along with the overuse of antibiotics) disrupts the delicate ‘balance of power’ in our

bowels between the bacteria and fungus. The average person now has the ratio of “good

bacteria” to fungus reversed; 15% good bacteria, 85% fungus. When the small intestine fills with

fungus, the organs and glands are deprived of their building blocks and systems begin to fail.

Bad digestion and poor assimilation of vital nutrients is the result.

Any undigested food (no matter how healthy) left in the digestive track is poison to your body

and will cause numerous health issues. The easiest and safest way to remove the undigested food

from the digestive track and to clean off the plaque from the intestinal walls is to drink Royal

Tea each and every day with your meals. Good intestinal health is important and should be

preserved and maintained daily.

Royal Tea is a unique blend of all natural ingredients. Persons who suffer with Acid Reflux,

Constipation, Indigestion, Bloating, Excess Gas and Belching should use Royal Tea. People who

would like to take inches off their stomach, clean out Nicotine & second hand smoke and keep

the Liver, Lungs and Colon healthy and clean will benefit from this product. Royal Tea helps

detoxify chemicals created by a Spastic Colon, Parasites, Fungus, Bacteria and Toxins from the

entire digestive system. It may also be used as an element of a Weight Management Program.

With continued use of Royal Tea, you will experience clearer, healthier, younger looking skin,

increased energy and a happier outlook.

The objective is to regulate your bowel movements to two or three each day in order to keep the

waste flowing and not sitting in your digestive system, which will cause numerous chronic health

conditions. You may adjust the amount of tea you consume daily to suit your body’s needs but

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make sure to drink enough vitalized water daily. (Take your body weight in pounds. Divide that

by 2. The number you come up with is the amount in ounces of vitalized water that you should

be consuming during the day. For example, if you weigh 150 pounds you should drink 75

ounces.) This is recommended for everyone.

Many people mistakenly believe that a two to four week cleanse is sufficient to restore their

health. They are wrong. Daily maintenance of the digestive tract is imperative and necessary to

re-establish and preserve your wellbeing.

Alternative two to four week colon cleanses that are available are simply band aids, resulting in a

short term solutions without addressing the underlying intestinal disorders.  The mechanism

behind these cleanses involve the removal of waste from the intestinal tract; however, they do

not work long or deep enough for cell rejuvenation to occur.  Results are short lived with a 3

week cleanse exhibiting only 3 weeks of relief.  One can look at the short term cleanses as a

holiday for the colon, but once the “holiday” is over, the colon returns to the recurrent mal-

absorbsion, bloating and gaseous problems.

The average colon needs only weeks to clean out waste products, but our objective, with the use

of Royal Tea, is change at the cellular level to restore the tone and vitality of the digestive tract.  

It takes one to two years to undergo cellular detoxification that results in proper peristaltic action

in the removal of waste and an increase in nutrient absorption.  Once the intestinal tract is

restored we suggest the use of a daily dosage of Royal Tea to maintain colon integrity throughout

your life. 

Royal Tea works on constipation to colitis. It not only cleanses and heals the intestines; it also

helps in the removal of parasites, viruses, fungus and bad bacteria. As well, it reduces acidity,

not only from the digestive tract but from other organs and tissues. Royal Tea tastes good and

continues to cleanse and rejuvenate, deeper and more effectively, the longer it is used. Overall it

is an incredible product that will continually protect your health and rejuvenate your body for

less than the cost of a cup of coffee a day.

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The Royal Society of Medicine has stated that over 85% of chronic illnesses stem from Digestive

Disorders and are reversible and preventable. Digestive Disorders and their related illnesses need

not be experienced. Royal Tea not only cleanses and rejuvenates the digestive tract but also

supports the health and wellbeing of the entire body; a formula with positive results that is safe

to take on a daily basis for a lifetime of protection.  Live a full and healthy life.

Ingredients are a special blend of: Persimmon leaves, Malva leaves, Holy Thistle, Marshmallow

leaves.  It is a special blend that allows for the gentle cleansing of the whole body with continued

use.

ROYAL TEA IS A TOTAL BODY CLEANSE FOR TOTAL HEALTH AND

WELLNESS.

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Royal Tea Ingredients

Holy (Blessed) Thistle

Holy (Blessed) Thistle has been used medicinally for over 2000 years,

most commonly for the treatment of liver problems by supporting it in

the release of toxins. It has been highly regarded for therapeutic uses

and was cultivated throughout Europe and some say gained its moniker through its reputation as

a 'heal-all', even credited with curing the Plague. It was in known cultivation as early as the mid-

1500's.

In "Much Ado About Nothing", Shakespeare praises its medicinal prowess: "Get you some of

this distilled Carduus Benedictus and lay it to your heart; it is the only thing for a qualm.... I

mean plain Holy Thistle... Therefore I counsell all that have Gardens to nourish it, that they may

have it always to their own use, and the use of their neighbours that lacke it."

Mattheolus and Fuschius wrote of Carduus benedictus, saying "It is a plant of great virtue; it

helpeth inwardly and outwardly; it strengthens all the principal members of the body, as the

brain, the heart, the stomach, the liver, the lungs and the kidney; it is also a preservative against

all disease, for it causes perspiration, by which the body is purged...therefore, give God thanks

for his goodness, Who hath given this herb and all others for the benefit of our health."

Holy thistle products are still popular in Europe and the United States for various types of liver

disease. Holy thistle is believed to have great power in the purification and circulation of the

blood. It is such a good blood purifier that drinking a cup of thistle tea twice a day will cure

chronic headaches. It is also used for stomach and digestive problems, gas in the intestines,

constipation, gallbladder disorders, lack of appetite (not feeling hungry) and on the skin for

treating infected wounds or ulcers. As well it is very effective for dropsy, strengthens the heart

and is good for the lungs and kidneys. Some claim that the warm tea, made from Holy Thistle,

given to mothers will produce a good supply of milk. That is why it is also called Milk Thistle. It

is also said to be good for girls entering womanhood as a tonic.

In herbal medicine today, Holy Thistle is used to treat cancer as well as infections, heart and

liver ailments, and fevers.

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Persimmon

Persimmon leaves are a good source of important dietary antioxidants,

such as vitamin A & C and flavonoids. It has been widely used as a

tea in oriental countries. In particular, several tannins and flavonoids

isolated from persimmon leaf were recently found to have

antihypertensive, anticarcinogenic and antimutagenic actions. It is highly possible, therefore, that

persimmon leaves may be developed into potential sources of natural antioxidants and

therapeutic drugs.

Persimmon leaf is anti-allergic and anti-pruritic in composition; in other words, an allergy or

itching preventive food. No need for antihistamines again. Furthermore, research has proven the

therapeutic effect of persimmon leaf extract on those suffering from dermatitis. The preventive

effect of persimmon leaf extract on the dermatitis was dose-dependent and a continuous intake of

persimmon leaf extract significantly decreased its onset and development. There were no

significant adverse reactions observed.

As well, studies have shown that supplementation of persimmon leaf improves lipid profiles and

suppresses body weight gain in animals that were fed high-fat diets. It is also used topically in

some beauty products to help to clarify the skin and eliminate dull and dark areas.

Marshmallow Leaf

Marshmallow Leaf has been traditionally used to soothe and support

the intestines. Herbs high in mucilage (a natural gummy substance

that does not dissolve in water) such as Marshmallow, are often

helpful for symptomatic relief of coughs and irritated throats.

Marshmallow root and, to a lesser extent, marshmallow leaf both contain significant percentages

of mucilage; Like other mucilage-containing substances, marshmallow swells up and becomes

slick when it is exposed to fluids. The resulting slippery material coats the linings of the mouth,

throat and stomach to relieve irritation.

Marshmallow has expectorant and demulcent properties, which accounts for this herb’s historical

use as a remedy for the respiratory tract, particularly in cases of irritating coughs with bronchial

congestion and to alleviate heartburn. Marshmallow leaf relieves irritation by coating inflamed

surfaces. Its primary use in modern herbal medicine is to relieve sore throat, but it also relieves

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perianal inflammation (when taken orally) caused by severe diarrhea. It also has mild

antibacterial, anti-allergy and immune-boosting properties. Topically, marshmallow is used to

soothe and soften irritated skin. Marshmallow leaf is completely non-toxic.

Malva Leaf

This plant is one of the earliest cited in recorded literature and was

considered a perfect plant. Dioscorides extols it as a remedy, and in

ancient days it was not only valued as a medicine, but was used,

especially the Musk Mallow, to decorate the graves of friends. Pliny

said: 'Whosoever shall take a spoonful of the Mallows shall that day be free from all diseases that

may come to him.' All Mallows contain abundant mucilage, and the Arab physicians in early

times used the leaves as a poultice to suppress inflammation.

Many species are edible as leaf vegetables. As an herbal mixture, it is commonly used for its

colon cleansing properties and as a weight loss supplement. As well, this herb can help soothe

inflammation in the mouth and throat and is helpful for earaches.

The seed contains mucilage, polysaccharides and flavonoids. It is demulcent, (soothes and

softens irritated tissues, especially the mucus membranes) diuretic, emollient, (softens the skin)

galactogogue (increases milk flow in nursing mothers) and is a gentle stimulator of the bowels.

The seeds which have a sweet and astringent taste are used in Tibetan medicine. They are used in

the treatment of renal disorders, the retention of fluids, frequent thirst and diarrhea.

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2. Situation Analysis

Market Summary

History of Tea

It is said that tea was discovered accidentally by Emperor Shen Nung back in 2700BC. After a

large meal one day, he was relaxing in the garden with a cup of boiling water. At that time some

leaves from a nearby tree fell into the cup. Unnoticed he consumed the drink. He enjoyed the

taste of the tea and the pain relief of the drink was so much. Like this the cup of tea was born.

The Indian legend tells how in the fifth year of a seven year sleepless contemplation of Buddha

he began to feel drowsy. He immediately plucked a few leaves from a nearby bush and chewed

them which dispelled his tiredness. The bush was a wild tea tree.

The first tea used in England came from China, and it wasn't until the 19th century that tea

growing spread to other countries and indigenous tea was discovered in Assam. The UK is the

largest importer of tea.

The English quickly developed an almost unquenchable thirst for the drink and began searching

for a way to get tea without having to buy it solely from China . In 1835 the English East India

Company, upon discovery of an indigenous variety of Camellia Sinensis in Assam , India ,

established their first experimental tea plantation there. It was largely unsuccessful at the

beginning. In 1856 varieties of tea from the Yunnan and Keemun provinces of China were

introduced in Darjeeling , India , and soon thrived. Some of the most prized and expensive

Indian black teas come from this high mountain region. One year later tea was cultivated in

Ceylon ( Sri Lanka ). Luckily, for tea growers and consumers, a fungus wiped out the coffee crop

in Ceylon in 1869, then its' main export. This opened the door to increased tea production and

exportation. 

By the early 1900's tea was being cultivated in Java, Sumatra , Indonesia, Kenya and other parts

of Africa . Presently, the United States has been added to the list of tea producers as there is one

plantation in North Carolina.

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Manufacture

Tea manufacture is the process of converting young fresh tea shoots into dry black tea. This

involves a number of processes from plucking to packing. At the plucking stage, only the top leaf

tips are picked every 6 to 7 days. The tip leaves are younger and finer which produce a better

quality tea. The fresh green leaves now need to have the moisture removed from them. This is

done by blowing air through the leaves for up to 14 hours, leaving a soft and pliable leaf. There

are then two ways of treating the tea. Tea which is to be used as loose leaf, will normally be

rolled gently to create a twisted appearance.

In contrast, tea which is to be used for tea bags, is shredded and crushed to produce a small

granular product. Rolling and crushing the leaves, results in the rupturing of the leaf cells which

allows oxidation to occur. This gives the tea its distinctive black colour and flavour. The tea is

then dried at high temperatures to achieve the correct taste. When it has been dried, the leaf tea is

of differing sizes and will also contain pieces of fibre and stalk. At this point it is processed to

remove pieces of stalk which will then leave tea suitable to be sold as loose tea. The tea is passed

through varying sizes of meshes to sort it and has to be passed through very fine ones in order to

produce tea fine enough for tea bag production. This process of sorting is a harsh one and it can

cause the tea to lose some of its flavour. That is why loose tea usually has a better flavour than

the tea in a tea bag.

Types of Tea

There are several ways of classifying tea like the country or region of origin. The tea is divided

in three types:

Black tea

Black teas are produced by withering, cutting, rolling, fermenting and drying the tea leaves.

The infusion can be light or dark in appearance, varying in color from orange to brown and

will usually have a strong taste.

Green tea

Green teas are teas that have been picked and rolled before firing. This stops the veins on the

leaves breaking, preventing the fermentation process, so that the leaf does not turn brown. The

brewed tea is pale yellow or green in color.

Oolong tea

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Oolong teas are semi-green teas, produced by stopping the fermentation process just as the

leaves start to turn brown. The leaves are then fired or dried and deliver a yellowish infusion.

The different tastes of tea

There are nine main tastes of tea in the world:

Original tea (from specific countries or regions)

Standard teas

Medicinal teas

Organic teas

Hot or cold teas

Perfumed teas

Seasoning teas

Decaffeinated teas

Exotic teas.

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Indian Tea Market Demographics

India: the largest tea consumer in the world

India consumes the largest quantity of tea in the world, accounting for nearly 14% of global

retail volume sales. Geographically, tea is widely consumed in the North, East and West of India,

and is popular with a wide variety of social classes and consumer age groups.

However, it ranks 7th in value terms, due to relatively low unit prices. Black standard tea

constitutes nearly 80% of value sales, although green tea has seen its popularity rise

Indian Tea Market

The tea industry in India is about 170 years old. It occupies an important place and plays a very

useful part in the national economy. Tea plantations in India are mainly located in rural hills and

backward areas of North-eastern and Southern States. Major tea growing areas of the country are

concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is

grown to a small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal

Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar and Orissa. Tea is an essential

item of domestic consumption and is the major beverage in India. Tea is also considered as the

cheapest beverage amongst the beverages available in India.

The major competitive countries in tea in the world are Sri Lanka, Kenya,

China and Indonesia. China is the major producer of green tea while Sri Lanka and

Indonesia are producing mainly orthodox varieties of tea. Kenya is basically a

CTC tea producing country. While India is facing competition from Sri Lanka and

Indonesia with regard to export of orthodox teas and from China with regard to

green tea export, it is facing competition from Kenya and from other African

countries in exporting CTC teas.

Indian tea industry is having (as on 31.12.2006 )

• 1655 registered Tea Manufacturers

• 2008 registered Tea Exporters

• 5148 number of registered tea buyers

• Nine tea Auction centers

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Estimated internal consumption and per capita consumption of Tea in India

YEAR

Domestic

Consumption

(M.Kgs)

Per Capita

Consumption

(Grammes Per Head)

1951 73 202

1961 140 319

1971 221 403

1981 360 527

1991 511 600

1992 524 606

1993 537 606

1994 550 608

1995 562 610

1996 580 617

1997 597 625

1998 615 633

1999 633 642

2000 653 652

2001 673 654

2002 693 663

2003 714 672

2004 735 681

2005 757 691

2006 771 693

2007 786 696

2008 802 701

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1951

1961

1971

1981

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

0100200300400500600700800

Per Capita Consumption

Above Line graph clearly indicates that till 1991 Tea consumption grew at the phenomenon rate

of 32.2% where as in recent past few years the average rate of consumption growth is 0.7%. Tea

being the only beverage which is consumed at the largest following Water hence there is no

trouble to India tea market future in India with growing population.

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3. Market Trends & Growths

82%

2%9%

6%

1%India Team Market Share

CTC TeaLoose TeaTea BagsSpeciality TeaDust Tea

Above Pie-Chart clearly shows that it is CTC Tea which contributes the major market share

(82%) in Indian Tea Market.

CTC Tea Market Share

24.53%

17.61%7.50%7.21%

6.76%

6.40%5.44%

3.54%

2.19% 2.12% 2.03%

CTC Tea Market Share

TATARed LabelTaj mahalWaghBakriSOCIETYAGNIGodrejSuper CupGirnarRosesBrook Bond

Above CTC Market share pie-chart displays that Tata is having biggest market share of 24.53%

followed by Hindustan Unilever’s Red Label

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14.91%

9.20%

6.90%

5.89%5.30%

5.20%

4.04%

3.80%3.69%

3.35%

2.79%

2.60%2.44%

Top Tea Markets in IndiaMumbaiBangloreAhmedabadPuneGaziabadNew DelhiKolkataLucknowGurgaonHyderabadNagpurNavi MumbaiNoida

Above pie-chart of Top Markets and their share indicates that West India accounts to

approximately 30% plus of tea sales rest is distributed between North & East Markets according

to stores located in various parts of country.

Tea Producing States in India

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The East & Noth East Region of India

Assam valley and Cachar region in Assam parts if the states of Tripura, Arunachal Pradesh,

Sikkim, Meghalaya, Mizoram, Nagaland, Manipur, Orissa and Darjeeling, Dooars, Terai regions

of West Bengal.

The North Region of India

Kangra valley in Himachal Pradesh, Dehradoon region in Uttar Pradesh

The South Region of India

The hilly regions and plains (Annamalai) of Tamil Nadu, parts of the states of Kerala and

Karnataka.

8% 6%4%

4%

4%

4%

4%4%

3%3%

56%

Tea advertiser's Channel preferenceAaj TakSAB TVDD MumbaiStar GoldSahara UPStar PlusSaharaNDTV IndiaAlpha MarathiETC PunjabOthers

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2002

2003

2004

2005

2006

2007

2007

2008

2009

2010

2011

2012

050

100150200250300350400450

Black Standard TeaBlack Specialty TeaGreen TeaFruit/Herbal Tea

Year

Mill

ion

Kg

Trend of Tea Volumes sold in India

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

CAGR

0

10000

20000

30000

40000

50000

60000

70000

Black Standard TeaGreen TeaBlack Specialty TeaFruit/Herbal Tea

Year

INR

Mil-

lions

Tea Market in India in INR Millions

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4. Market Needs:

The India is the world’s second most populated country contributing 17.23% of world’s

population. The health related issues in India also increasing day by day due to the lifestyle and

inclination of the generation towards fast food or junk food which generally responsible for

health hazards. Being Inda as developing country the more and more people in India are getting

literate and educated. The education in turn brings awareness in the people and they understand

what do’s and don’ts. There is class of people who are health cautious most of them fall under

high class societies. India is predicated to be the number one in terms of diabetes and heart

disease in the world in coming decades. It is difficult to change the lifestyle of people all of

sudden and hence people look for better product which can keep them healthy and offer

resistance or meditate their health for long life and better health. Tea is hot beverage consumed

by people all over the world at highest after water. So it is a great idea if tea can prove as tea as

well as medicine and offer better health & immunization as it is consumed twice to thrice a day.

If tea can provide halth benefits it will be surely welcomed by the class of health conscious

people.

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5. SWOT Analysis

Strength

Local company that will be favored by the Indians.

Diminishment of Financial Risk (no exchange rates or import from other EU countries.

Insider knowledge of India

Uniqueness of the product - Benefits of product are outstanding and not offered by any other

product/company.

Weakness

New company - needs to establish its position in the market place

Brand name is little known

Opportunities

Shortage of tea supply unlikely

Supply should remain stable over next 3-5 years

Demand should remain in relative sync with supply

Mass market tea prices will stabilize

Consumers are living a more healthy lifestyle

Consumers prefer quality products that offer true value

Modern technology in the tea industry will be able to increase productivity

Growth in tea market due to promotional efforts of healthy attributes of tea

Threats

Limited number of raw materials

Unstable tea supply of high quality tea

High quality tea prices will increase moderately

Tea market is very competitive and relative elastic

Strong local competition like Hindustan Uniliver & Tata tea

Indian customers are loyal to their local brand

Hindustan Uniliver & Tata tea. control over more than 50% of tea market

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6. Explanation of the 7 P’s

The traditional marketing mix contains of four major elements, the "4-Ps of marketing". As

defined by Kotler et al. (1999):

Product: "Anything that can be offered to a market for attention, acquisition, use or

consumption that might satisfy a want or need. In includes physical ob-jects, services, persons,

places, organizations and ideas."

Price: "The amount of money charged for a product or service, or the sum of the values that

consumers exchange for the benefits of having or using the prod-uct or service."

Promotion: "Activities that communicate the product or service and its merits to target

customers and persuade them to buy."

Place: "All the company activities that make the product or service available to target

customers."

In the context of services marketing, Booms and Bitner (1981) have therefore suggested an

extended "7-Ps" approach that contains the following additional "Ps":

People: All people directly or indirectly involved in the consumption of a service, e.g.

employees or other consumers.

Process: Procedure, mechanisms and flow of activities by which services are consumed.

Physical Evidence: The environment in which the service is delivered. It also includes tangible

goods that help to communicate and perform the service.

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7. Competition

Top 10 Tea Companies in India

Hindustan Unilever Ltd.

Tata Tea Ltd.

Duncans Industries

Wagh Bakri Ltd.

Private Label

Goodricke Group Ltd.

Golden Tips Tea Pvt.

Hasmukhrai & Co

Girnar Food & Beverages P ltd

Sapat Packaging Industries

32.50%

22.50%6.60

%

2.90%

2.20%

1.70%

1.40%

30.20%

% Market Share of Tea Companies in India

Hindustan Unilever Ltd.Tata Tea Ltd.Duncans IndustriesWagh Bakri Ltd.Private LabelGoodricke Group Ltd.Golden Tips Tea Pvt.Others

Hindustan Uniliver (32.50%) & Tata Tea (22.50%) are two major competitors in India Tea

market and contributes around 55% of Indian Tea market share.

Unilever: the clear market leader

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The packaged tea market is highly consolidated in India, with Unilever and Tata Tea accounting

for almost half of retail value sales. Unilever (Brooke Bond and Lipton) is the clear leader,

holding over 30% of the market share, while Tata Tea (Tata) trails it with almost 20%. The

remainder of the market is far more fragmented and shared between numerous small players

Both Unilever and Tata Tea saw a fall in retail sales as a direct result of the drop in the price of

tea between 2000 and 2003. These mainstream players also saw their margin squeezed in the

face of increased advertising spends and competition from unpackaged tea.

Tata Tea: ambitions in international markets

(World’s second largest branded tea company)

Tata Tea is the largest vertically integrated tea firm in the world, from its plantation activity

through to its packaging and marketing initiatives. Although Tata Tea is overshadowed by

Unilever in its domestic market, the company has been the star performer in the global tea

industry in recent years.

Its high profile acquisition of the global Tetley brand in 2000 effectively consolidated its position

in the international tea market. The company is now seeking to leverage the brand as a

springboard to new markets. In 2003, Tata Tea started retailing its flagship brand Tata Tea in the

US.

The company closed a factory in Australia in the same year in order to increase the capacity of

its Sri Lankan joint venture packaging company, which serves the Australian, Polish and Russian

tea markets. It is currently looking into marketing Tetley in the Chinese market.

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In above BCG Matrix

1. Hindustan unilever

2. Tata Tea

& Others

Hindustan Unilever is main player in Indian tea market with market share of approximately 33%.

Tata Tea is right behind Hindustan Unilever experiencing good market share as well as good

market growth as of it is leading the world tea market. Other tea brands are at relative small

market share as well as slow growth rate.

Under No 5 we need to project Royal Tea. We need to develop it as Star Developing to Cash

Cow.

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8. Marketing Objective

To offer consumer best health advantage through Royal Tea.

To establish as market leader in herbal tea industry

To enable Royal Tea to satisfy, fulfill the consumer’s personality & lifestyle

To increase Royal Tea’s popularity as an icon in Herbal Tea product.

The different managers should know the sales and marketing objectives of the firm in

order to achieve these objectives.

We are going to use the method SMART:

Specific: The objectives have to be clear. For example, in each shop, the company of “Royal

Tea” must achieve the selling objectives. The turnover to reach will not be the same in the

different shop because we make the selling objectives according to size of the shop, the

frequentation, the type of the clients.

Measurable: The company has to follow the different targets in the sales outlets and if each

shop allowed to reach the objectives. To measure the sales we can calculate the sales by day

in order to understand how the client bought the product. With these data we can improve the

strategy and the sales. The commercials can ask to the supermarket to put the product in a

different way or to make more promotion.

Achievable: The targets have to be realist. At the beginning the turnover would grow slowly

and after the promotion, it would have a faster expansion. If we reach to win clients from our

main competitor (in a first time) and from the others tea brand (in a second time), the sales

would grow increasingly. The firm should have a long term’s vision and should be reactive in

front of decisions or problems which can occur.

Relevant: the objectives have to be founded on fact and not on suppositions. The firm has to

respect its general strategy and its image. The firm should take into consideration the sales of

its competitors in order to be based on relevant objectives.

Timed targeted: each objective should have a deadline. It can allow measuring the different

sales of the day, of the week, of the month, according to these data, the firm can change the

objectives or makes promotion to reach these objectives.

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The objectives for the first year:

4 % of the market share of Hindustan Unilever & Tata Tea, the main competitor.

2 % of the others tea’s competitors.

1 % of the coffee drinkers

Introduce company into the market, strengthen and improve its position

Penetrate the black tea market and achieve revenue of 3 million INR p.a.

Penetrate health market with fruit and herbal teas achieve revenue of 1.5 INR p.a.

We expect to hit 25% of Hindustan Unilever & Tata tea because it is our main competitor by

converting their royal customers. With the strategy, the promotion 7 novelty of our brand we can

expect to attain lots of customers.

We look forward to hit 8% of other competitors To reach this objective we will make a lot of

promotion in order to attract new clients, because we know that the population like and expect

the promotional events to buy food and drink.

We also expect to hit 2% market share of coffee and convert royal customers.

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9. Issue Analysis

Main issues that should be addressed in the Action Plan:

Company needs to gain experience in the market place

Aggressive promotion efforts to establish brand name and gain market share

Create effective marketing mix

Establish company image of high quality, great value for money

Find distribution deal with main tea shops, supermarkets in India

Start aggressive promotion (e.g. free gifts included in purchase) to win customers of Lion

Brand

Try to gain market share of Hindustan Unilever & Tata Tea by converting their royal

customers.

10. Assumptions

With respect to the tea market climate it is assumed that:

Strong competition in the market place will force price levels of products down

Royal Tea will only be able to differ from its competitors by introducing aggressive

promotion tactics for their innovative product.

Tea supply will remain relatively stable

Demand should remain in sync with supply

Prices for high quality tea will increase moderately

Prices for mass market tea will stabilize

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11. Marketing Strategy:

A. Market Gap

Regarding our research in Indian supermarkets and pharmacies we have come to the result that

there is no market gap in the tea market. It is important to point out that once the Maltese

customer decides to consume a certain brand he or she will be very loyal to the product and it

will therefore be hard to convince him or her to buy another brand. This is why the local tea

brand Lion Brand has a Market Share of 60 %. Customers like it because it is cheap and they

receive great value for their money.

With the brand Royal Tea we are going to introduce innovative products in an existing market

and focus on Market Development.

Existing Market New Market

Existing

products

Market

Penetration

Product

Development

New

Products

Market

DevelopmentDiverification

Royal Tea need to spread awareness about the health betterment by consuming the Royal Tea

and capture the educated and health conscious class of people (usually from High Class society

& educated). Lifestyle of customer is changing who emphasize on health, Royal Tea can capture

this new rising market.

Producing product in India is less expensive as India is second largest producer of tea in world

tea market and also labor is cheap here. Since the Royal tea market will be limited for Indian

territory only hence company do not have threat from exports & changes in Exchange rates.

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12. Product Policy

Name of the local brand that is to be introduced in Indian Market

Royal Tea

Reasons for choosing Brand Name

Royal Tea is strong name, easy to remember and refers good brand because the associations with

royalty are “master”, “the best”, “the strongest”, “luxury”.

The crown represents the power because we want to be the no 1 on the market

It can be associated with quality, a luxury brand that is available & customers are receiving a

good value for their money.

There is also a “name-game” the brand name “Royal Tea” resembles the word “Royalty” giving

associations that our tea is made for the nobility.

Slogan

It is more than a tea…

…Rejuvenating Body Cleanse

Reason for choosing slogan:

The slogan It is more than a tea… indicates that the Royal Tea is mere a tea but is something

more than that giving more values and benefits than any other tea in the market.

In the next line …Rejuvenating Body Cleanse here we exactly try to explain in one line what it

is other than just a tea. Rejuvenating tells that its develop youthfulness upon regular

consumption by slowing down the aging process of body. Body Cleanse clearly tells that it helps

to revive the body and clean the body from inside with help of its medicinal properties extracted

from various herbs which are ingredients of this tea.

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The Logo

Explanation for different choices

Golden Crown: It is a common symbol that refers to the royal Kings and Queens; it is easy to

remember and catches the eye of the customer. The modernity represents a new birth for the tea

because the young people believe that the tea is a beverage for old people. With this modernity it

will attract a new

Segment (youth).

Golden Background: Golden color proves purity, wealth of the ingredients, the recipe, and the

taste & power. The power is linked with the crown which represents the status and the

sovereignty of the king.

Our focus is on converting black tea market and focusing on new immerging health market.

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13. Marketing Mix of Royal Tea

1. Product

Royal Tea will be a high quality product offered as specially blended black herbs tea.

Contents of the Royal Tea are:

40 bags, 80 bags, 150 bags, 250 bags (Family pack)

The amount of bags refers to different target groups. 40 bags for singles, 80 bags for couples,

150 bags and 250 bags are Family Packs. (250 bags is the most famous)

Packaging:

Customer perception of a package creates brand equity and purchaser loyalty. The image

presented by the package largely determines success or failure of a tea line. Appearance

stimulates memories and emotions inside the purchaser, who oftentimes is female, often buying

for an entire family. Colour, image and slogan all combine to facilitate customer allegiance.

Top Left

Right

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Left Half Right Half

Target:

We want to touch the target group in a progressive way. At the beginning, it is important to

convert the royal consumers of black tea & touch fruit tea and health tea consumers. In second

time, we should attract the consumers of the main competitor Hindustan Unilever & Tata Tea.

The next step will be to touch the tea drinkers in general and at the end, the consumers of coffee.

We can argue for the coffee drinkers that the Royal Tea is as strong as the coffee and good for

the health.

2. Place

High quality for a reasonable price can be bought from Assam & Darjeeling and will then be

blended and packed. The final product will be distributed to Retailers such as Supermarkets and

main tea shops so the end consumer has easy access to it.

Place in supermarket:

On the middle and lower levels the Royal Tea should be placed according to the content of tea

bags. 40 bags should be placed higher than the ones containing more bags.

3. Price

Prices for the tea should be as the following:

Reasons for pricing policy: Royal Tea is competing against the main player on the Indian Tea

Market Hindustan Unilever & Tata Tea by setting a higher price but offering more value for it.

Various promotion activities, giveaways and advertising on radio and television will help to

establish the brand and gain market shares.

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4. Promotion

The promotion is the most important point to launch our products because we want to be able to

compete with our biggest competitor Hindustan Unilever & Tata Tea. We want to focus on this

point because the Indians like to purchase bargains or buy products that offer free gifts. Other

brands do not offer as many promotion and free gifts. This is why it is important to focus

especially on the Promotion activities of the marketing mix. We are going to set up original

events in order to attract new customers and consumers of other tea brands.

Our objectives:

Promotion in the supermarkets:

Set up a stand: we want to set up a stand in the supermarket in order to make tasting to the

supermarket’s clients. The stand should be placed between the fresh food and the food with the

aim to attract all the consumers. The stand should represent the brand with the color of the

company, the logo, the environment of royalty. For example, the stand could be shaped like a

crown. Moreover, the hostesses can give some presents to the children like plastic crowns,

balloons with the logo of the brand and pens with the logo.

During the launch of our product (one week), all the customers at the supermarket will

receive a sample of “Royal Tea” for free at the cashiers including a voucher which explains

the game to win a trip to London.

Promotional offers during the year: If a client buys a box of 150 bags, he will get a free cup

or a spoon or a little kettle.

During two months, we can organize a game: when you buy Royalty, you win some points

and with certain numerous of points, you can get a present which represents the brand image.

Promotional event for Royal Tea launching:

During one weekend in a big city in India (preferably Mumbai) we will organize a big event.

- In the street, there will be hostesses with special clothes (king and queen clothes) who will

distribute samples and cups with tea to offer the product to passer-by. They will distribute flyers

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- There will be a show about the theme of British Royalty with flags of our brand. The artists will

be dressed in royal clothes and hold a speech about royalty. After the show, they will hand out

flyers the people can fill in so as to win the weekend trip to London.

At the end of the event, it will have a drawing of lots. The winner will receive the present (tea

boxes) via post way

- For the child, there will be inflatable game in castle shape to jump. The staff will keep an eye

on the children while the parents take part in the competition

- In the street there will be a lot of decoration of the brand image

Advertisement

At the beginning, the strategy is to focus on the Internet, the radio and on daily newspaper

(Times of India etc) to reach a lot of customers. These media are noticed by a large target group

which will help the firm to be known.

After six months or one year, we will begin a campaign on television, in magazines and on

airports.

5. People

The employees and the consumers are very important for the product’s development. They

represent the image of the brand; it is for that the services have to be optimum. The employees

and more particularly the commercial people and the hostesses should be trained in order to

know the product and to can sell it properly. Moreover, in the other hand, the clients are

important because they passed a message to the potential clients. To allow this, the hostesses at

the beginning and the employees after have to explain the quality, the taste of the product.

6. Process

We have seen that the selling process is vital in the decision making process. In the shops, the

selling is making by the advice. The clients like to feel reassured in front of making process. So

we conclude that one time per three months, commercials and hostesses will give advices to the

consumers in order to make him more confident the product.

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7. Physical evidence

The environment should be very clear, clean and attractive because the decision making process

takes into account these elements. Moreover, in the shelves, the products should be stored

correctly in order to attract the consumers. We have to ask to the staff that we need light in order

to bring out the colors of the product.

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14. Action Plan

Marketing

Strategy

Action Responsibility Control

System

Timing Costs

INR

Marketing

communication

campaign

Advertisement

on TV,

internet, radio,

newspapers,

campaign ad on

the

street

Marketing

Managers

Monthly

sales

figures

Whole year 500,000

Marketing

promotion

campaign

Set up special

stand

for personal

selling

Marketing

Managers, Sales

managers,

Counter staff

Supervisors

Count

customers

and

monitor

sales per

moth

Nov 2009 –

Feb 2010

20,000

organize

promotional

event in

Mumbai

Marketing

Managers,

Supervisors,

Hostesses

Count

Participants

Feb 2010 50,000

Promotional

offers e.g.

free gifts with

purchase

Marketing

Managers,

Production

Managers

Produced

output

figures

Nov 2010 –

Mar 2010

10,000

Organize

sweepstake

“Weekend trip

to

London”

Marketing

Managers

Jan 2010 –

Feb 2010

5,000

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Loyalty scheme

“Point

system”

Marketing

Managers,

Customer Service

Customers

taking use

of point

system

Whole year 5,000

Distribution of

free

samples to

customers

at cash point

Marketing

Managers,

Cashiers,

Supervisors

Count

Customers

First week

of Nov 2010

5,000

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15. Financial Projection:

Excel Sheet attached with Financial Plan

HQ

Launch

SE

Distributor

s ISR ASM

Mumbai Nov-10 3 6 12 1

Delhi Nov-10 3 6 12 1

Pune Jan-11 2 2 4  

Bangalore May-11 2 4 4 1

Hyderabad Jan-11 2 4 4  

Ahmedabad Jan-11 1 2 2  

Jaipur Apr-11 1 2 2  

Jodhpur Apr-11 0 1 1  

Panjim Jun-11 0 1 1  

Mysore Apr-11 0 1 1  

Baroda May-11 1 1 1  

Surat May-11 0 1 1  

Rajkot May-11 0 1 1  

Chandigarh Apr-11 1 1 1  

Ludhiana Apr-11 0 1 1  

Jalandhar Apr-11 0 1 1  

Amritsar Apr-11 0 1 1  

Chennai Aug-11 3 6 6  

Total   19 42 56 3

Products MRP PTR NRV

Royal Tea 1500

1200.0

0

1080.0

0

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B] MARKETING VARIABLE

EXP.

RAT

E

Units / SE /

Qtr

QUANTIT

Y

AMOUN

T

Danglers 3.5 1500 5700 19950

Posters 2.5 1000 3800 9500

TV SPOT 10000 200 200 2000000

Press Add 10000 200 200 2000000

Gifts 15 500 1900 28500

T Shirts 100 1 50 5000

Gondola End caps 7500 1 6 45000

TOTAL Marketting Expense       4107950

Cost of Goods       1760550

TOTAL EXPENSE for

BreakEven       5868500

Units to be sold for Break Even       5434

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