Position of Goodricke Group Limited’s Packet Tea products in Modern Trade

sector of Kolkata

By:Arnab GoswamiB.Tech (MAE) + MBA [2010-15]Enrollment No: A2325010014Roll No: D/10289

Under the guidance of:Ms. TavishiAsst. ProfessorDepartment Of EconomicsAmity Business School

Goodricke Group Limited• Goodricke Group, one of the major tea plantation companies

in India, was incorporated in West Bengal on 14 June 1977 as a Public Limited Company under the provisions of the Companies Act 1956 (Act).

• The company grows, cultivates, manufactures, treats, blends, processes, buys, sells and deals in tea in various forms.

• The Goodricke Group at present has 30 tea gardens. Of these, 18 estates are in Darjeeling and Dooarj in the state of West Bengal and 12 are in the state of Assam.

• Goodricke annually produces 30 Mn Kgs of tea.

Indian Tea Industry• Tea production for 2013 in the

country was pegged at 1,200 million kg.

• India's north-eastern Assam state produced 618 million kg tea in 2013, more-than half of the country's total production.

• India is the second largest producer of tea in the world and contributes to around 30% of the global tea production.

• The market size of tea is estimated to be approx. Rs.10,000 Crore with a penetration of more than 90% in the domestic market.

Current Packet Tea Market• Market size – 350 mn kg (approx)

growing @15% annually.• Highly proliferated, matured

market with more than 300 brands.

• Market leaders – Hindustan Liver Limited & Tata Tea (40% share among them).

• The next major players – Duncan’s, Eveready, Goodricke, etc. have strong regional presence.

• Categories – Premium (Rs.75+); Popular (Rs.65-75); Economy (below Rs.65).

Project Objectives• The initial objective of this project was to study the different

types of Packet Tea of Goodricke Group Limited found in Modern Trade Outlets in Kolkata.

• To study the competitors of Goodricke in the Packet Tea market.

• To know the customer response to the brand.• To know the customers perception and awareness of

Goodricke’s Packet tea.• To analyse the performance of Goodricke Group Limited’s

packet tea products with respect to competitors using the help of market survey and research in the city of Kolkata.

Field Work

Goodricke Group Limited has a few distributors for the market in Kolkata.

PS Enterprise is one such distributor enterprise which is responsible for the Modern Trade market in Kolkata. PS Enterprise employee, Mr Biplab Sarkar, with whom the research was carried out, is the Sales – In charge for Goodricke’s Packet Tea department.

The market research was done with him during the time he served the standalone departments stores across the city every day.

The Sales-In charge covered 4-5 different stores each day from Monday through Saturday.

Modern Trade Outlets Goodricke Group Limited’s packet tea products are found in the big three modern trade outlet chains in Kolkata. They are namely Spencer’s, Food Bazaar and Arambagh’s. A total of 56 supermarkets in Kolkata keep Goodricke products in their shelves out of which a total of 36 were visited.

Date Route Covered Number of Outlets

21st May 2014 Gariahat, Rash Behari Connector 4

22nd May 2014 Ajay Nagar, Hiland Park, 3

27th May 2014 EM Bypass, Baghajatin. 4

28th May 2014 Garia, Patuli 3

29th May 2014 Lee Road, Camac Street 4

2nd June 2014 Salt Lake, Lake Gardens 5

3rd June 2014 Jadavpur, Prince Anwar Shah Road 4

9th June 2014 Tollygunge, Alipore 4

10th June 2014 New Town, EM Bypass 2

12th June 2014 Lansdowne 3

Goodricke Packet Tea SKUBrand Packaging Type Weight(in gms) No. of tea bags Price (in Rs.)Roasted Darjeeling Plastic Jar 250 180

Plastic Jar 100 80Tea Bags 25 50Packet 250 155

Thurbo Darjeeling Packet 250 190100 90

Premium Darjeeling Packet 250 125Tea Bags 100 150

25 46

Castleton Vintage: Black Caddy Tin Box 250 500100 250

Castleton Premium: Blue Caddy Tea Bags 100 650Tin Box 100 525Tea Bags 25 175

Castleton: Exclusive Edition Packet 100 600

Exclusive Badamtam Leaf Wooden Box 250 500100 250

Barnesbeg Organic Green Tea Tea Bags 25 150Packet 100 125

Khaass Exclusive Assam CTC Tea Packet 250 95

Chai CTC Packet 250 70Zabardast CTC Packet 250 60

Products – Category

Products – Category

SalesThe following products sell best at the

modern retail outlets:• Roasted Darjeeling• Thurbo Darjeeling• Premium Darjeeling

The following products sell reasonably at the modern trade outlets:

• Khaass Exclusive Assam CTC• Barnesbeg Green Tea• Castleton (Exclusive, Blue, Black)

The following products sell slowest at the modern trade outlets:

• Chai• Zabardast

Promotional OffersBuy TWO Goodricke

Roasted Jars (250gm) and get a Roasted 25 Tea Bags Pack worth Rs.50 FREE.

Buy Goodricke Khaass CTC Tea (250gm) and get 250 gm Sugar FREE.

Buy Goodricke Khaass CTC Tea (250gm) and get Tupperware FREE.

SWOT Analysis

Observations• Darjeeling products, especially Roasted, Thurbo, and Premium sell

out quite fast.• The company faces stiff competition from HUL’s Brooke Bond and

Tata Tea in CTC products.• Customers are well aware about the availability of Goodricke in the

market. • Customers had pointed out that Goodricke tea is affordable.• Goodricke tea’s Darjeeling drinkers are not going to shift easily to

other brands and also urge friends and relatives to drink the same. • The same cannot be said about CTC tea (Khaass, Chai, Zabardast) as

it was seen that customers preferred Brooke Bond or Tata Tea products in the CTC category and do not want to shift towards the newly launched Khaass Exclusive Assam CTC Tea.

• Quality of the tea and the superior packaging styles of Goodricke’s Darjeeling Tea products in wooden boxes and tin cans are inspiring factors.

Recommendations• There is a strong need for television ads and other forms of

advertisements for Goodricke products, discounts and offers. • Goodricke must focus strongly on making sure that all their SKU’s are

present at least in the category primary non-paid visibility at all times in all the 3 Modern Trade chains (Spencer’s, Arambagh, Big Bazaar).

• Increase the use of secondary visibility (End caps, 4-way browser, 2-way browsers and Crocodile bins).

• The company employs 3 promoters or sales-person for Spencer’s who keep rotating between the 6 big Spencer’s hyper stores. The company may hire at least 2 more for Spencer’s hyper and 1 for Metro Cash N’ Carry.

• Point of sale material was nowhere to be seen and it was found that the company does not currently use that form of promotion. Point of sale promotion (next to check-out counters) is a step that could be used to draw the customer’s attention towards Goodricke products. Point of sale can also be used to attract customers towards special offers and discounts.

Recommendations• Distribute free samples to customers at the modern trade stores.• Develop alternate channels to reach the doorsteps of consumers like

Petrol Pumps, Army Canteens and Indian Railways by providing free cups of tea.

• Create exclusive brand imagery by promoting packet tea category with the help of advertisements in Newspapers, Local Magazines, Display inside and outside the stores, etc.

• Aim for the youth and generate their attention by promoting via social networking websites like Facebook, Twitter, etc.

• Goodricke has already tied up with IRCTC (Indian Railway Catering & Tourism Corporation) and CSD Army (Canteen Stores Department). The company can also tie up with :-

IOC (Indian Oil Corporation)BPCL (Bharat Petroleum Corporation Limited)HPCL (Hindustan Petroleum Corporation Limited)

Thank You !!!