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Tea Market in India
Hot drinks manufacturers in India are faced with a highly mature market with
long established traditions and product preferences among consumers. In
total volume sales terms, India was the largest market for tea in the world and
the fifth largest market for other hot drinks in 2010. As tea and coffee already
have a very high penetration in India, companies have sought to increase their
market share by developing innovative distribution strategies to reach new
consumers. For packaged hot drinks players, the consumers of unpackaged
tea and coffee in rural areas represent a potential new consumer base .While
conventional distribution channels such as kiranas (small grocery retailers)
and supermarkets account for over 90% of the sales of tea and coffee,
companies continue to experiment with new channels to expand their
consumer base into less accessible rural areas and consumer groups
consisting of affluent youth. With urban markets approaching saturation,
national companies increasingly seek to expand their distribution footprint to
rural regions while regional play ersare making an effort to enter neighboring
regions.
Waghbakri Tea Group
Waghbakri Company is a family owned tea business amongst conglomerates
and mega corps that tower the International business scenario all over the
world. Waghbakri house is one of the largest tea producers and sellers in
India today. The group is making leading strides in tea exports and ships in
bulk and retail consumer packing to countries all over the world. Its
outstanding performance is credited to excellence in management and a spirit
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that results into a quantum jump in annual growth in face of stifling
competition and cut throat scenario that dominates the tea industry today.1
Waghbakri Tea House – Global Presence
With blessings from Mahatma Gandhi, Sir Narandas Desai set foot on Indian
soil in the year 1892 after gaining experience in tea business as an owner of
tea garden in South Africa which then was mired in racial misgivings that
made the continuity of his business a futile endeavor there.
He started Waghbakri Tea Company in the yr 1892, which then was
represented by small company retail shop at kalupur Ahmadabad, Gujarat.
Since then the growth of the endeavor has been phenomenal and presently
Waghbakri Tea Company has an employee base of more than 400 professional
managers and skilled personals with ever increasing space for more, to tend
to the expanding group enterprise in India and abroad.
Waghbakri tea house markets various tea brands in loose leaf cartons and tea
bags for tea lovers all over the globe – the finest certified black teas from
Darjeeling tea estates, Assam and Nilgiri. The company sells organic black and
green tea for the health conscious.
The production base is at Dholka ( Dist . Ahmedabad) in a impressive spread
of 14 acres with a modern manufacturing plant and state of art production
and packaging unit that conforms to International norms in producing,
blending and packaging of the finest tea leaf for worldwide consumption.
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Achievements
Year 1892, on call from Mahatma Gandhi, Sir Narandas Desai left India for
South Africa. He procured a tea estate in the year 1915. But facing racial
discrimination in South Africa he left that country and came back to India with
a certificate of merit from The Mahatma Gandhi and few belongings, and years
of experience as tea-estate owner to count on.
Year 1919, Sir Narandas established tea business in Ahmedabad. The firm
was named The Gujarat Tea Depot Co. with first retail outlet for wholesale
teas at Gandhi Road, Ahmedabad, India (erstwhile Richie Road).
Year 1925, Wagh Bakri brand was born now a favorite of millions of tea
lovers.
Year 1944, the Good Morning brand of premium blended tea leaf was
introduced for tea connoisseurs, a blend rich in full bodied taste and aroma.
The tea cuppers discovered it to be the right brand to begin their mornings
fresh with a cup that cheers.
Year 1976, encouraged by the success “Wagh Bakri” tea house enters into
large scale distribution of Good Morning.
Year 1980, the first to recognize the need for packaged teas, the group
established Gujarat Tea Processors & Packers Limited to meet a growing
demand for quality blends of branded teas and with the aim of selling quality
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tea products to the tea lovers in India and globally.
Year 1986, the Standard Tea Processing Co. Limited was established with a
view to avail the benefits of mechanized operations and meet with demands
for bulk teas. The Company also started an office in Kolkata to oversee and
check the purchase of tea at auction centres there.
Year 1989, D'ling Brand a pure certified premium Darjeeling Tea was
launched especially for tea connoisseurs. Darjeeling tea is popular for its
smooth mellow flavor and overpowering aroma.
Year 1991 the increased demand of packaged tea by professionals in the
corporate segment initiated the launch of "Tea Quik" tea bags. The utility of
tea bag is immense. It is travel, worthy, quick to make at home hygienically.
Year 1994, For the larger audience "MILI” tea" was launched. Being an
affordable quality tea in carton and jar, it finds place in the hearts of tea lovers
all over the world.
Year 1998, the Wagh Bakri brand launched in Rajasthan, India.
Wagh Bakri Ahmedabad Management Association’s [AMA] Centre for
Governance established.
Year 1999, the Wagh Bakri brand enters the central Indian state of Madhya
Pradesh, India.
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Year 2003, Premium brand of the Company “Wagh Bakri” secured its place
among top 100 popular brands in India as per survey undertaken by AC.
Nielsen’s in Brand Equity’s survey of India’s biggest FMCG Brands – 2002.
Year 2004, Company received ISO : 9001 : 2000 and HACCP Certification.
Year 2006, With a view to synergize efforts and operations Standard Tea
Processing Co. Ltd. merged into Gujarat Tea Processors & Packers Ltd.
Year 2007, Company started office at Mumbai (India) to expand its
operations. Company also shifted its Kolkata office with upgraded
infrastructure and facilities.
Company entered into Maharashtra (India) state by launching “Wagh Bakri”
Perfect Tea packets under different pack sizes.
Year 2008, Company imported Double Chamber Tea Bag Machine viz. IMA C
27 from Italy having capacity of manufacturing 250 bags per minute.
Company received EN ISO 22000:2005 Certification for Company’s Food
Safety Management System for Blending and Packaging of Tea.
Company acquired the land admeasuring 25,748 sq.meters adjoining to
existing Dholka factory and also 12,595 sq. meters at village Tundel, Taluka
Nadiad, Gujarat for the purpose of
expansion / setting up of Tea Blending factory and storage facilities.
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Opened a Wagh Bakri Tea Lounge at Ville Parle [East], Mumbai, which serves
Ice Tea and all premium varieties of Tea manufactured / marketed by Wagh
Bakri Tea Group along with snacks.
Year 2009, Company expanded its presence in the rural sections of
Maharasthra like Kolhapur and Sangli. The company also launched itself in
Delhi and NCR regions. The group also participate in Gulf Food held at World
Trade Centre, Dubai. 2
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PRODUCTS AND SERVICES
Products :
Delightful Varieties of Tea.
WaghBakri offers a basket full of brands for different need groups and price
segments. According to wagh bakri TG modify and develop a new product
range .let’s look at the journey of wagh bakri MILI TEA to DARJEELING.
Mili is an ideal brand for those who otherwise prefer loose tea. Mili offers
good taste & strength with consistent quality and hygienic packaging
alongwith great pricing
value. Mili is a blend of
good Assam teas and
comes in Leaf and Dust
form. It comes in Leaf,
Dust & Fanning Varients.
It comes in an attractive
bandhani pack design.
SKU : 1Kg Pack and Pet jars of 500 gms and 250 gms & small packs.
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WAGH BAKRI PREMIUM STAPLE FREE TEA BAGS
Wagh Bakri Premium Tea is an unmistakable
combination of artfully blended tea and break
through packaging. The Delicious flavour and
aroma of this Hand-Picked Premium Tea,
Which is rich in Antioxidants, is packed in
innovative double chamber Staple Free Tea
Bags. Thus, aprat from ensuring health
benefits, It also promises safety.
Wagh Bakri Masala Chai Tea Bags
An Aromatic Delight With a Difference
Now get more out of your regular cup of tea,
with the WaghBakri Masala Chai. A fine
International blend of the rich Assam tea and
the spices, WaghBakri Masala Chai, in every
sip, is truly an enticing experience.
The hand plucked leaves are blended with
exotic spices, which enhances the flavour of
the tea, and the tea tastes deliciously different.
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No wondar then, the refreshing aroma of
WaghBakri Masala Chai fills up your senses
like never before, cup after cup.
Good Morning Tea Bags (Assam)
Good Morning Tea Bags make for the 'fast and
fashionable' way of drinking fine tea. The
Assam blend is available in a pack of 100 tea
bags. These tea bags have a double chamber
for faster infusion of tea, and come sealed in
an envelope to keep the tea fresh and
flavourful.
Good Morning Tea Bags (Darjeeling)
Good Morning Tea Bags make for the 'fast and
fashionable' way of drinking fine tea. The
Darjeeling blend is available in a pack of 100
tea bags. These tea bags have a double
chamber for faster infusion of tea, and come
sealed in an envelope to keep the tea fresh and
flavourful.
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Wagh Bakri Tea Quik Tea Bags
Tea bags are convenient and hygienic where
the normal elaborate preparation is not
feasible. Tea Quik tea bags from WaghBakri
was one of the first ones to enter the Tea Bag
segment. Tea Quik is especially favoured as it
creates a cuppa that is very close to the
normally brewed tea. Moreover, the advanced
imported production facility of Tea Quik
produces tea bags free from staple pins.
SKU: 25 & 100 tea bags.
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Wagh bakri
Our very raison detre. A legendary brand with extraordinary brand loyalty
built and preserved painstakingly for more than 5 years. It’s the best selling
brand in Western India. Customers are known to carry along supplies on long
and overseas journeys!
A blend of select Assam teas, WaghBakri is high on strength and instantly
refreshes a person. Consistency of quality through the years is another
feather in our cap. It is available in Leaf, Dust and Fanning varieties.
WaghBakri (Leaf) with large granules brews a
strong and sweet taste (earning it the
sobriquet of ‘Kadak Meethi’). WaghBakri
(Dust) with very fine granules is the strongest
variety and is preferred by institutional
segment. It produces largest number of cups
per kg of tea. WaghBakri (Fanning) is a blend
cut between Leaf and Dust. It is strong in taste
and bright in colour.
Available in pack sizes of 25 grams, 50 grams,
100 grams, 250 grams, 500 gram poly pouches
and 1 kg PET jar. Now also available in 500
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gms. lined cartons.
Special International Blend
WaghBakri is now available for export
markets in special packaging.
Available in PET jars of 1/2 lb., 1 lb., 2 lbs.
WaghBakri International tea bags are
available for those who prefer tea bags.
True to its name, Good Morning is a blend of premium Assam CTC tea and
traces of orthodox tea which is high on taste
and aroma. Its fruity flavour tempts you to
reach for another cup. In keeping with the
Group’s high quality standards, the blend is
not offered in the market if good quality tea is
not available due to external factors. No
wonder, Good Morning enjoys a strong
customer loyalty. Good Morning has been
rated by experts as one of the best blends in
the world.
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SKU: 250 gms. and 500 grams.
Wagh Bakri has ruled millions of hearts for over
a 100 years. Wagh Bakri group now brings a tea
that is specially blended for tea connoisseurs.
Wagh Bakri Perfect, this amazing tea is
handpicked from the best tea gardens and
blended by tea experts. Wagh Bakri Tea Perfect
ensures a strong taste, rich colour and a
stimulating aroma.
Organic Tea Gift Pack
Gift Pack of Organic Tea – naturally healthy!
The Organic Gift Pack contains 100% Organic CTC Leaf
Tea, 100% Organic Darjeeling Tea & 100% Organic
Darjeeling Green Tea(100gm each).
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These are high quality certified "100% Organic" teas with
remarkable flavor and refreshing taste.
Pure sips of nature, full of good health and lingering
freshness! It is the gift of choice for those you care for.
Note: Organic cultivation helps promote a sustainable
environment
Certified Organic Darjeeling Green Tea
Created specifically for those who are looking for more in a
tea. Wagh Bakri Organic Darjeeling Green Tea responds to
the passion of ardent tea lovers. Its delicate aroma,
superiative flavour and golden allure, with a distinctive
muscatel taste surrounds the senses. The Organic growing
method applied in cultivating this tea ensures a balanced,
fertile, sustainable environment and a tea that's completely
free from any artificial chemicals.
So come together with your loved ones and scale the
heights of enjoyment with every sip of Wagh Bakri Organic
Darjeeling Green Tea.
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Certified D'ling Organic Darjeeling Tea
An exquisite tea blend for those passionate about taste,
aroma and flavor. WaghBakri Organic Darjeeling Tea
comes to your cup from the highest tea growing slopes of
the Himalayas. Considered as the finest aromatic tea in the
World. Darjeeling tea has smooth muscatel flavor, light
golden hue and exotic aroma. The organic growing method
applied in cultivating this tea ensures a balanced, fertile,
sustainable environment and a tea of health benefit free
from any artificial chemicals.
So buy hot tea beverage that cheers a gift for loved ones
and scale the heights of enjoyment with every sip of
WaghBakri Organic Darjeeling Tea.
Certified Organic Assam Tea
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Wagh Bakri Organic Assam Tea is a full-bodied tea that has a
warm reddish brown color and an invigorating taste that
refreshes the body & spirit. Highly regarded by the
connoisseurs for its distinctive fresh though subtle malty
flavor, Assam tea is rich, robust and exceptionally aromatic,
The Organic growing method applied in cultivating this tea
ensures a balanced, fertile, sustainable environment and a
tea that's completely free from any artificial chemicals.
Buy the hot tea beverage
The Jewel in the WaghBakri crown.
An offering of Pure Darjeeling Tea for connoisseurs of
flavour. D’ling consists of teas grown at heights between
6,000 ft. and 10,000 ft. Its special aroma and flavour have
won it preference from patrons all over the world. Its
mild taste needs little milk and sugar. It also goes
famously into delicious recipes like lemon tea, honey tea, etc. SKU :100 grams
and 250 grams. 3
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SALES AND DISTRIBUTION NETWORK
A need was felt in the last 70’s by ‘Wagh Bakri group’ to make available fresh
tea in convenient packs to the discerning consumers of Gujarat, as a
result,GTPPL as a part of wagh bakri group was founded in 1980 with a
objective to market sealed packet tea in Gujarat. Since then GTPPL has
satisfied the need of more and more customers over a period of years due to
its unmatched consistency in quality and strong distribution system. Total
average sale of GTPPL is approx 19.5 lack kgs per month. Turnover is likely to
exceed 350 crs this yr. The company is operating in four states across India ie
Gujarat, Rajasthan, Madhya Pradesh and Maharashtra .
RAJASTHAN AND MADHYA PRADESH:
In Rajasthan, the company launches product first in Udaipur section and it
was launched subsequently in jodhpur / jaipur sections. Distribution section
was much similar to Gujarat. And in Madhya Pradesh the company has super
stockiest one at Indore and another at Jabalpur.
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FUTURE PLANS FOR GROWTH IN KEY MARKET
AND EXPANSION
It’s a familiar but audacious picture that is slowly emerging. Familiar because
it is an oft-told battle of a domestic corporate David taking on the might of
multinational Goliaths Hindustan Unilever Ltd (HUL) and Tata Tea Ltd.
Audacious, because the Indian company Wagh Bakri Group is now chalking
out fresh plans to gain a competitive edge in the Rs 5,000 crore Indian
branded tea industry. For starters, Wagh Bakri is extending its presence,
manufacturing facility and distribution network to pump up volumes.
The group’s game plan includes, retail initiatives, high-voltage mass media
advertisings campaigns and export initiatives. The vital question is: Will Wagh
Bakri’s growth strategy change the market dynamics of the branded tea sector
in India? On the group’s strategy, Piyush Desai, chairman & managing director
of Wagh Bakri Tea Group says, “Our main objective is to become a national
player by the end of this year. We are setting up a new facility at Nadiad soon.
We are now the third largest tea brand in India.” At present, Wagh Bakri has
presence in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra.
According to Desai, 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. In the Rs 5,000 crore Indian branded
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industry, Tata Tea currently enjoys volume leadership while Hindustan
Unilever has value leadership.
With its national brand strategy, Wagh Bakri can pose a major threat to HUL
and Tata Tea. Very soon, the branded tea sector will witness a major tussle
between national and regional players. As a result, this sector is expected to
register a 15 % growth this year,said an analyst based in Mumbai.
‘Seeing is believing’ seems to be the mantra for Wagh Bakri.To gain visibility
for its brands, the group is hiking its advertising budget by 50 % this year,
according to Desai. To woo consumers, the company is in the process of
rolling out an aggressive print campaign with the tag line ‘Perfect Rishtey
Banaye.
“To support our print ads, we are also beaming television commercials on
leading channels. Also, we are strengthening our pan-India distribution
network, this year.4
EXPORTS :-
Waghbakri wants to grow their export division by catering all Indians and
Asian community wherever they are residing’ using this as a launching pad,
the company would like to cater to all the tea connoisseurs of the main stream
market all over the globe. Recently we have entered UK, Australia, New
Zealand and also having strong dialogues with some of the European buyers
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and hoping to get good business from them · Currently focusing in USA as a
strong hold in New York, Chicago, Atlanta, etc. 5
BRAND EVOLUTION
Waghbakri has categorized the organic teas, all other form of double and
single chamber tea bags, Darjeeling teas and Nilgri teas as “Specialty Teas”
and have started various forms of sales promotion. Which has operationalised
our vision for catering to newer generation which traditionally was never our
customers. Going ahead in this segment we have launched last year wagh
bakri organic combo pack which has all the variable of the organic format with
recipe booklet, which has helped our customer to understand the teas better.
Tea Lounge:-
Wagh Bakri to go one step forward and entered in the service arena 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 we are looking forward
to go ahead with this idea on pan India basis.
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Vending Operations:-
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.
Institutional Business:-
The company is expanding wings, by tapping huge potential i.e. institution
business. In this process the company is appointing distributors and setting
up distribution networks. The company has already started business with
railways , authorized vendors in IRCTC, organized segments (i.e. corporate )
and also tapped HTS ( Hot Tea Shops ) Highway Restaurants with organized
efforts & now we are in process of streamlining it. 6
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MARKETING INITIATIVES
Wagh Bakri has gone to each and every customer be it an upper end customer
or the middle or lower level of customer in terms of socio economic class with
different forms & mediums of communication.
Advertising & Publishing Agency:-
The company has hired nationally renowned agency for their different brands.
“Triton Communication”, “Hanmer MS & L” & “Percept Advertising” are
workingon creative part to help them communicate to their “TG” i.e their
target group. A publishing agency is hired ‘Publicity Parlour’ for publishing
creative’s made bythe agencies in print as well as in electronic medium.
Marketing Research:-
Wagh Bakri always had belief in marketing research, which had been carried
forward by purchasing syndicated marketing research report ( lastly
purchased this type of report from A C Nielson) & conduct market research by
marketing companies.
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Electronic Medium:-
Last year they had presence on number of channels like colors, star Gold, Aaj
Tak, Star One, Star News, NDTV Imagine, Set Max, Sahara One, Zee etc. The
plan behind broadcasting on these channel is to communicate the brand value
to a
particular customer, who will recall their already known brand like “ Wagh
Bakri Wagh bakri Perfect” or “Milli”. The company wants to break periphery
of four states i.e MP, Rajasthan, Gujarat, & Maharashtra to communicate to
their future customers across India. In short they want to spread in PAN India
where where their distribution has still not reached and this is the best
possible way to reach their prospective customers and make them aware
about the brand.
Print Medium:-
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THIS CREATIVE USE IN ONLY INSIDE MALL
COME OUT WITH NEW
CONCEPT .NOW WAGH
BAKRI AVAILABLE IN
GIFT PACK
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TEA LOUNGE AT MUBMAI
ADVERTISEMENT
Others
:-
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This are the medium which they think is the second most effective medium
after broadcasting as they can communicate to their “TG”. This medium is
being used for two main agendas i.e to communicate for the ongoing
consumer promotion schemes & for brand building activity. They have good
presence in this medium be it local newspaper or national newspapers.
Internet Selling:-
Wagh bakri is now catering to customers seeking tea online. Their online
selling portal have all the enmities required for the online selling portal. This
initiative has kept them on global platform. www.premiumtea.com and
www.buytea.com are the two websites which are catering to tea lovers
seeking packed tea over the net
Organized Retail Network:-
WaghBakri have accepted the importance new form of retailing i.e organized
retail network. This retail network is growing up rapidly and would start
catering many customers who are used to go to next door retailing. They have
started the activity of gondola displays, floors stack displays and also used
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promoters at the select outlets where they can interact with the end
customers.
Customer & Trade Promotion (CP & TP):-
Customer promotion is given for two reasons; one is to motivate a customer
to change and second is appreciating customers choice to continue using the
particular product. They are also providing CP on their selected SKU for the
same reason. 7
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New launching :-
The Wagh Bakri Group has launched its
premium tea brand, Good Morning tea in
Mumbai. Vidya Balan unveiled the tea, which
promises to be a delight for all tea
connoisseurs.
Mumbai is the first launch market in
Maharashtra. Subsequently, the brand will be available in key cities like Pune,
Nagpur and Nasik. Good Morning tea is primarily targeted towards quality
conscious consumers who appreciate a judicious blend of taste, strength and
aroma.8
CMD of Wagh Bakri Piyush Desai
(R), Director Parag Desai and TV
actress Smriti9
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1
References :-
http://www.waghbakritea.com/about_us.html Accessed on 1.01.11
2 http://www.waghbakritea.com/achievements.html Accessed on 4.01.11
3 http://www.waghbakritea.com/product.php Accessed on 3.01.11
4 http://www.thehindubusinessline.com/2007/11/29/stories/2007112952070500.htm Accessed on 4.01.11
5 www. waghbakri tea.com/ Export %20House Accessed on 1.01.11
6 http://www.afaqs.com/news/story.html?sid=24771_Percept/H+wins+creative+duties+for+Good+Morning Accessed on 3.01.11
7 http://www.afaqs.com/search/index.html?k=wagh%20bakri&sbs=Media%20Brief Accessed on 4.01.11 s
http://www.waghbakritea.com/tea_recipes.htmlAccessed on 1.01.11
http://www.waghbakritea.com/archives.htmlAccessed on 4.01.11
8 news.maxabout.net/.../wagh-bakri-launches-premium-tea-brand Accessed on 4.01.11
9 news.in.msn.com/business/article.aspx?cp-documentid Accessed on 3.01.11