INTRODUCTION OF THE COMPANY

An Ahmedabad-based , Waghbakri Company is a family owned tea business amongst conglomerates and mega corps that tower the International business scenario all over the world.

Wagh Bakri group was set up in 1892 by Narandas Desai.He began as a retail vendor of loose tea in 1920. He started

selling tea in packets under the brand name Waghbakri which he registered as a trademark in 1934.

In 1980, three of his grandsons Piyushbhai Desai, Pankajbhai Desai and Raseshbhai Desai entered into the tea business and established the Wagh Bakri brand in western India.

The group has 3 companies:• Gujarat Tea Depot Co Ltd. - set up in 1917, owns Wagh Bakri brand.• Standard Tea Processing Co Ltd. - focuses on tea buying & blending.• Gujarat Tea Processors & Packers Ltd - sells the teas.

The group has established five brands in the domestic market. They are D'ling (speciality Darjeeling tea), Good Morning (blend of Premium Assam and Orthodox), Wagh Bakri (blend of select Assam teas), Tea Quik (tea bags) and Mili ( a brand aimed at loose tea consumers).

They enjoy a 60%volume share in Gujarat. In Rajasthan and Madhya Pradesh ,the company enjoys 20% and 15% marketshare .

Chairman: Piyush Desai

Vice Chairman: Pankaj Desai

Parag Desai

Managing Director: Rasesh Desai

Paras Desai

ORGANIZATIONAL HEIRARCHY

Vision, Mission and Objectives and Strategic Choice

Vision:- Build long lasting relationships through trust by maintaining the Quality. Be result oriented. Be progressive and lead from the front. Change with the times. Be socially responsible. Return to the society a share of the gains from commercial enterprise.

Mission Statement:-Serving the Taste of trust

Objectives:- Main objective is to become a national player. Wagh Bakri Tea Lounge objective is to offer consumers tea in a style of their own and enjoy drinking with

their favorite choice of snacks.

SOME FACTS

Currently, the Wagh-Bakri brand is sold mainly in Gujarat, Rajasthan and

Madhya Pradesh , Maharashtra.

The brand has a global presence in more than 32 countries.

With an annual turnover of Rs 260 crore, the company has a production

capacity of six lakh packets per day.

While Hindustan Lever Limited’s array of tea brands sells around 90-100

million kg of tea annually across the country followed by Tata Tea which

sells around 60 million kg annually, Wagh Bakri with a sale of 16-17

million kg comes in third.

Wagh Bakri

Organic Tea

WB Perfect

D’lingGood

MorningTea

Bags

Mili

Tea Quik

Masala Chai Tea

Bags

PRODUCT PORTFOLIO

WB TEA PRODUCTS

• ORGANIC TEA ORGANIC DARJEELING TEA ORGANIC ASSAM TEAM

• WB PERFECT• D’LING• GOOD MORNING• WAGH BAKRI • MILI• TEA BAGS

• Wagh Bakri Masala Chai Bags• Good Morning Tea Bags (Assam)• Good Morning Tea Bags (Darjeeling)• Wagh Bakri Tea Quik Tea Bags

SOCIALISTIC EXPLANATION OF THE LOGO

• The trademark "symbolises the co-existence of the one and all - be it rich and the not-so-rich, the strong and the not-so-strong, the bold and the not-so-bold ..."

How WB became - a strong REGIONAL BRAND

The brand stands for quality. The products’ strengths are complemented by the Group’s

marketing reach. The Group has deep distribution reach as well. It sells in

India as well as abroad. The group's goodwill and acceptance among the

consumers have been built over the years by regular delivery of good quality tea.

They have constantly focused on selling good quality tea to their consumers. Today Wagh Bakri and its other brands stand for quality.

It has a state-of-the-art plant where the finest production and packaging processes are employed. That ensures that the colour, tastes, strength, aroma and flavour of the tea stays as good as it is in the fields.

Its processes have been accredited with international quality standards.

The group's "immaculate" distribution network had helped it stay ahead of competition.

They spend a lot of time and energy on their distribution network. Most of the brands focus on cities and to some extent the towns. They have extended this network to the villages. They have built relationships with the shop owners not just in the sophisticated urban localities but even in the rustic villages.

Wagh Bakri is a strong regional player. Its strength lies mostly in Gujarat where it has been very popular over the years. It has become more of a tradition in that region. Wagh Bakri has inherited it and nurtured it too. Though Wagh Bakri has spread its wings to Rajasthan and Madhya Pradesh, but its strength is "limited" to just one State.

It is present in the market with different variants of quality at different price points. Their products are available from Re 1 pouches to one kg packs. They have 49 different pack sizes.

Their products are available in cartoons, jars, pouches and tea bags. They sell a negligible amount of loose tea but only through their own branded outlets. They have six such outlets in Ahmedabad.

STRATEGY The punchline “ RISHTEY BANAYE WAGH BAKRI CHAI ”

reinforces the brand as one of warmth , hospitality and building relationships.

Wagh Bakri depends largely on “consumer loyalties and sensibilities,” in a market where local flavour rules the roost. The formula for company’s success is that “They’re not only familiar with local tastes and preferences but also provide consistent quality tea to consumers.”

Its marketing strategy is characterized by :High Quality OfferHigh Turnover

With the aim of expanding its market and increase its current turnover of Rs 260 crore to Rs 375 crore by 2010 and to become a national player.

It has entered the retail franchise format with the unveiling of ‘Wagh Bakri Tea Lounge’ in Mumbai.

The group is planning to foray into southern states as part of its growth strategy. To start with, the group is planning to introduce its flagship brand Wagh Bakri in Karnataka.

Wagh Bakri is entering Maharashtra with its premium leaf teas. Targeting a 15 per cent volume share in its first year of launch, Wagh Bakri is adopting a 360-degree marketing strategy to tap into this market.

To gain visibility for its brands, the group is planning to hike its advertising budget by 50 % .

To woo consumers, the company is in the process of rolling out an aggressive print campaign with the tag line ‘Perfect Rishtey Banaye’

In the Rs 5,000 crore Indian branded industry , where Tata Tea currently enjoys volume leadership while Hindustan Unilever has value leadership , Wagh Bakri with its national brand strategy can pose a major threat to HUL and Tata Tea.

• Tea Lounge– Wagh Bakri has moved one step forward and entered in the service area of

serving all forms of teas from single platform which we have discovered as “Tea Lounge”. They have opened one tea lounge in Mumbai in November 07 and have received an over whelming response and hence are looking forward to go ahead with this idea on pan India basis.

CURRENT IMC PLAN

• Vending operation is also a newer version of having hot tea. There are lots of opportunities and the company desires to cater to this business on pan India basis.

• They have started the activity of gondola displays, floors stack displays and also used promoters at the select outlets where they can interact with the end customers.

CURRENT IMC PLAN

SWOT ANALYSIS of wagh bakri

StrengthsThe company has an advantage of its marketing research. The company has the quality consistency in their products and they are very keen about the quality of their product. The company has a variety of quality product according to the taste of consumers. The company has a great advantage of their goodwill in the market.

WeaknessThough the company has third position in the market, yet they have not captured the all over world market. One of the weaknesses of the company is ‘oolong tea’, it is mainly exported but it is not sold in domestic market even if may captured a good market share.It is tuff to sell tea in those regions were mainly people are non-tea drinkers.

OpportunitiesTo be a Market Leader nationally.Market Opportunity in Mumbai and to capture the Mumbai Local market.Launch of Exclusive tea bars ( Opened in Mumbai and now at other places.)Export Potential in some major Countries.To come up with New flavors of tea apart from the existing FlavorsNew Product DevelopmentExport Potential.Mergers and Acquisitions.

Rising inflation, which reduces disposable income of consumersThreat from loose tea Market Shares.Competition from MNCGlobal CompetitionLow Barriers.Globalization.The company faces competitions by HUL who has 10% growth in market. The company faces severe competition with regional players in some regions.

Threats

Value CHAIN ANALYSIS Tea Buying from the Tea plantations in Assam and Darjeeling.

Tea blending ( Mixing of Tea and making it in a powder form to make different blends of tea)

Tea tasting by the top management

Tea Packaging in Pet Jars, packets and Staple Free bags

Tea Marketing ( Advertisements, Print Ads, Radio, TV)

Tea Selling ( Online, Retail Stores, distributors, etc)

Retail Outlets and Tea Lounge.

5 generic competitive strategies

LOW-COST LEADERSHIP:-As name symbolizes Chai for all segments, Nav-chetan for lower segment people Mili tea for mass market Darjeeling tea for the Rich People.

BROAD DIFFERENTIATION:- Tea Bags- Staple Free bags ( Only company in india having staple free machines) Consistent Quality and quality control for all the kinds of tea.

FOCUS STRATEGY BASED ON LOW COST:- Mili tea –Good Quality at reasonable price.

VERTICAL INTEGRATION STRATEGIES:- Backward- By purchasing Tea Plantations for increasing the quality of products. Forward- Tea Lounge by giving wet sampling.

Corporate Diversification strategies

Entering new business:- Tea Lounge Tea PlantationsRelated Diversification:- Introduction of Iced tea with different flavors. Introduction of Coffee in the Future

• The brand message is extremely traditional and deep rooted in nature

• Lack of presence in major cities and primarily tea drinking states like UP, Bihar, Delhi, Jharkhand

• Insufficient use of new social media and other contemporary formats for marketing

• The number of tea lounges that they have are very limited and only in select cities like Mumbai. Even Ahmedabad, which is the origin city of the brand does not have Tea Lounge

• An obscure presence in all the media vehicles

CRITIQUING

• Not a top of the mind recall brand

• Foreign operations and exports are not known to most of the TG

• They have only recently diversified the menu at their Tea Lounges, initially catered only the standard tea ranges

• Brand Advocates in the form of testimonials and other word of mouth strategies are underutilized

CRITIQUING

• Positioning of the brand should be more youthful and engaging– It will only garner more loyalty among newer customers

• Brand Promotion one is to motivate a customer to change and second is appreciating customers choice to continue using the particular product.

• Online Selling Portal selling portal should have all the enmities required for the online selling portal. This initiative will definitely keep them as frontrunner on global platform and enhancing there exports.

Suggestive Measures

• Since, they will be new entrants in most of the states they have to carve a niche for themselves and cater to it

• Expansion of their Tea Lounges in all major cities in India

• Tie up with major export sites and other tea buying sites in the country– www.premiumtea.com– www.buytea.com

• Heavy use of print media, because beverage category attracts a lot of consumer base through print

Suggestive Measures

• Testimonials and Recommendations from the connoisseurs' in the field of tea tasting– This will reinstate the belief of quality assurance and authenticity of the brand

• Associate themselves with a nation wide social or health (since they state it extensively in their brand message) drive, something like ‘TATA TEA JAGO RE Campaign’

• Get a known and popular face as a Brand Ambassador, someone who is credible and can motivate people to buy the brand.

Suggestive Measures