MARKET RESEARCH ON MAJOR TEA BRANDS IN INDIA

Siddhartha Lodha

PG-A

History of Packed Tea in India

The history of tea dates back to 750-500 BC. Researchers have found that the cultivation and

consumption of tea has been taking place since more than a thousand years. However,

commercial consumption of tea started with the British rule. It has now become a part of the

Indian culture.

Tea laid it’s foundation in India at the turn of the 20th century, when the major emphasis was

on the exports of Tea. Earliest reference to a domestic market came from MacKay of Brooke

Bond. Equipped with capital and premises, Mackay settled down to serious business. Mackay

clearly identified his objectives as to pick up teas suitable for Brooke Bond blends at home,

rather than getting them at London and to create and make profitable, a packet and blended

tea trade in India and generally in the East.

In the early 20th Century, much of India was orthodox

and all foreign habits were considered alien and against

Indian ethos and culture. In fact, later, when tea was

officially promoted by the Tea Market Expansion

Board, strong religious pressure groups launched anti-

tea campaigns against tea drinking.

The domestic market was very small and hardly able to

sustain. Packing material, mainly caddies and

cardboard cartons, were imported the UK and the tea

was floor-blended and hand-packed. Sales totalled

around 17,000 lbs. and the whole operation produced a

loss without inclusion of overheads and other costs. It therefore needed a great commitment

to persevere this kind of a venture.

Backed by the promotion and propaganda efforts of the Tea Market Expansion Board that

became the Indian Tea Board through the pioneering efforts of Brooke Bond (more about this

later), a strong demand was created for tea as a beverage and the Indian masses avidly took to

tea. However, much of the fallout of this phenomenon went to loose teas because of the price

factor, so we see a strange development in the packet teas trade in India. In the early years,

i.e. the first three decades of the century, the trade was predominantly in the hands of foreign

companies and the incipient demand was centered on a small segment, introduced to tea

through the Western industrial civilization.

The early brand names were based on colors — Red label, Violet label, Green label.

The first sale record in India was in April 1903 and the entry reads:

Red Label ... 720 lbs.

Violet Label ... 300 lbs.

Green Label …180 lbs.

The fact that Brooke Bond Red Label recorded 720 lbs. was a very auspicious augury for this

famous brand, which attained dizzy heights in later years to become the largest selling brand

in the world.

The early entrepreneurs of packet tea marketing realised that if the trade had to expand, the

purchase price of the tea had to be more affordable for their Indian consumer and the tea had

to be better presented.

In India however, the main consideration was price, one that the lower economic section of

the Indians could afford. When the brands were first launched in the first decade of the

century, the cost of the tea in the packet was roughly 60% of the total price. Despite this,

prices were considered high. But the demand had been created and was snowballing —

opening the floodgates to loose teas, which were at least 20% cheaper than the corresponding

tea in packets.

Opinions on the worth and prospects of the internal business seemed gloomy. One opinion

was that “Indians can never become tea-minded”. This was based on the English custom of

brewing tea in pots, using a long leaf — a leisurely and luxurious habit. It is interesting to

note that very early in the century, the marketers of packet tea recognised that if tea had to be

made popular among Indians, it had to be presented differently, keeping in mind the Indian

cooking habit of boiling. So dust tea was born. ‘Kora’ was the first brand to be introduced by

Brooke Bond in paper form packets.

The real expansion of the packet business in India came in the early l920s, with the

introduction of the direct selling system by Brooke Bond. As was said earlier, the distribution

was left in the hands of distributors and stockists who could do a maintenance job but could

not do anything to create demand.

The depot system or direct selling system helped in introducing tea to the vast population of

India but it meant a heavy investment in marketing in the earlier years. It helped in

establishing a two-way communication between the salesman and retailer and cemented a

personal relationship between them. For a product like tea, where freshness was an important

factor, it helped in ensuring stock rotation. Under this system, the companies like Brooke

Bond and Lipton, who followed suit through their own personnel, called on all retail outlets

on a regular basis and supplied tea on a cash-on-delivery basis. There was no need for the

retailer to carry any large inventory, as the calls were on a weekly basis.

The system backed by the effective propaganda by the Tea Board really sparked off a

consumption explosion, taking India to the position of the largest tea-drinking nation in the

world. Today tea has become established as a food habit in all socio-economic sections.

In India, tea is an essential item of domestic consumption and is the mostly consumed

beverage. Further, tea is the cheapest beverage amongst all the beverages that are available in

India and it is very popular amongst all sections of India society. The Indian tea industry

engages around 20 lakh of workers, directly and they mainly represents the under privileged

sections of the India society. The Tea Business in India registered a total turnover of

Rs.10,000 crore in the previous year.

Top Tea Brands in India

Brooke Bond has touched millions of consumers with a range of tea offerings appealing to

the diversity of their tastes. It has the strongest foothold amongst any of the tea brands in

India and touches the homes of over 500 million consumers. The values and personality of

the master brand Brooke Bond reflect a warm, sociable, approachable, perceptive and

dependable entity. Brooke Bond is the tea expert that selects the best at every stage - from

the garden to the cup. The brand, therefore, is seen to offer the appropriate teas for all tea

moments in the consumers' lives. Brooke Bond offers a strong portfolio of four sub-brands

namely, Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond Taaza & Brooke

Bond 3 Roses. The range offers a full variety of benefits as well as price points to cater to

diverse sections of society.

For over 4 decades, Taj Mahal has been the gold standard of tea in India. It has been a

pioneer of innovations in the Indian tea market

First Premium Tea Brand

First to introduce tea bags

First to usher in new formats and concept, like instant tea - Dessert Tea

Brand ambassadors personify the true essence of Taj Mahal (Ustaad Zakir Hussain, Saif

Ali Khan)

Red Label contains natural flavonoids that helps improve blood circulation and keeps

you healthy.

Red Label Natural Care has a mix of 5 Ayurvedic ingredients like Tulsi, Ashwagandha,

Mulethi, Ginger and Cardamom.

Red Label Dust has strength, taste and comes with the Red Label promise of great

quality.

Red Label Special has extra-long leaves to give you great taste, colour and

superior aroma.

Entered the lives of the contemporary Indian housewife in the 1990s.

Unique and refreshing blend of tea that's sprinkled with fresh green tea leaves. It's her

daily cup of joy that helps her to refresh and connect with her inner self and aspirations.

The advertising communication for Taaza is a reflection of this relationship.

Chronicle of the aspirations of a housewife over the past two decades.

4th largest tea brand in India with a portfolio spanning in both leaf and dust segments.

3 Roses which was synonymous to the trinity of perfect colour, perfect strength and

perfect taste

3 Roses stood as the bedrock for strengthening a married couple's relationship with

each other

3 Roses has redefined the nature of relationship shared between married couples in

India

Brooke Bond Sehatmand (Arogya) was launched in early 2010.

Brooke Bond Sehatmand with Vitamin Power, helps to keep families healthier through

their favourite daily beverage

3 cups of Brooke Bond Sehatmand helps to satisfy 50% of the Recommended Dietary

Allowance (RDA) of Vitamins B2, B6, B9 and B12

Brooke Bond Sehatmand successfully runs the ‘Sehatmand Parivaar, Sehatmand

Bharat’ movement - an initiative to reach and make a difference to 500 million families

across villages in India through education on health and nutrition.

2nd most trusted beverage brand in India

Market leader measured by volume and value branded packet tea

Has transformed the way beverages are marketed by positioning tea as a catalyst for

social change

Promotes social awakening and action through its landmark 'Jaago Re' marketing

campaigns

References:

1. History of Packet Tea :

http://www.contemporarybrokers.com/item.aspx?id=100

2. Brooke Bond Brands :

http://www.brookebondhealth.com/our-brands.asp

3.