A study on consumer preference for Tea in Ahmadabad city.A small market research to study the consumer preference.

1. “Consumer
Preference for Tea in
Ahmedabad City”

2. Industry Analysis
 Gujarat has the maximum tea consumption in India.
 While the national per capita tea consumption in the
country is 1.4 kg annually, it is 1.6 kg in Gujarat.
 The consumers have seldom change their brand loyalty
for packaged tea, its an entirely new ball game when it
comes to tea bags.
 The marketers are aiming to capture at least a 10 per
cent market share in the tea bag segment in Gujarat
over the next one year.
 The company are basically aiming to tap the urban youth
with its offering of exotic tea blends, with fruit and herbal
flavours.

4. Consumer behavior for
Preference of Tea
Taste
 Taste is the most important factor considered while
selecting tea brand. Based on the preference of strong
and mild tea brand is selected.
Quality
 Quality of tea was ranked very important by respondents.
Quality of tea in terms of long leaf and short leaf;
blending and mixture.

5. Flavor
 Fragrance is very important for half of the respondents
while selecting a tea brand and its usage. The aroma of
tea gives them an authentic pleasure.
Price and availability
 Consumers are very much concerned about the price
they pay for tea. Firstly Quality and taste influence
selection of tea brand and then comes the price.
Packaging size available
 Availability of tea in various sizes is very much important.
Because according to the need of consumer they buy tea
packets and also “larger the quantity; cheaper the rate”
formula applies here.

6. Habits of People of Gujarat for Tea
 People of Gujarat start their day with tea in their breakfast along with
snacks like gathiya, khakhra, chavano, thepla etc.
 Gujarati’s believe in hospitality; whether it is home or office. They
offer tea to the guests or clients along with some crispy snacks and
welcome them.
 People in Gujarat are very addicted towards tea. They can drink tea
at any time of the day; whether it is mid noon or late evening. Time
doesn’t matter to them, they only need a reason to drink tea.
 Most of the people in Gujarat drink tea twice a day and some of them
drink more than twice.
 Gujarati people also take tea in their dinner with items like “Handvo,
muthiya, thepla, bhakri”.
 For hanging out with friends they prefer to go to tea stall instead of
coffee shop and do their “Maja ni Vato” and fun together.
 When In stress the first thing which come to their mind is to drink tea
to get relaxed.

7. Research Methodology
 Objective of the Study
 To know the consumer preference of people for Tea in
Ahmedabad city.
 To know the consumers perception towards different Tea
Brands in the city.
 To study the factors affecting consumers buying decision
for Tea.
 To understand the current trend of Tea market in
Ahmedabad.
 To know the satisfaction level of consumers with their
respected tea brand.

8.  Research design
 At present research describe different characteristics or
phenomenon of present consumer behaviour and present
practices of marketers.
 It describes various aspects of consumer preferences,
impact of various marketing strategies adopted by
various market players.
 Data collection tool
 We have used structured questionnaire as data collection
tool, we have already done trial and error to know the
validity of questionnaire.
 Data collection techniques
 We have used survey method for data collection

9.  Sampling plan and sampling method
 We have adopted simple random convenient sampling
method for data collection
 Sampling plan
 We have collected data from ___ number of
respondents from various age group
 Following is the data collection plan (250 samples)
 Data analyses
 We have used percentage analysis and graphical
presentation for data analysis
 Hypothesis testing for examining various demographic
impact on consumer buying decision and preferences.
MALE 37%
FEMALE 63%

11. Brand Preferred
Wagh bakri is the most preferred
brand with highest market share
of 74%, Tata is competing to
wagh bakri with 9% of market
share. Taj and Lipton are close
competitors. Jivraj, Rajani,
Tetley C.Somabhai has the least
market share of 1% and these
companies don’t have much
potential to compete with the
leading brand i.e. wagh bakri.
As maximum numbers of
respondents prefer wagh bakri
as their brand. So we can say
that consumer find it cost
effective.
74
1
3
1
2
9
5
1
4 1
Wagh Bakri Jivraj Tea Brookbond Rajani
Girnar Tea Tata Taj Tetley
Lipton C.Somabhai

12. 76
47
46
21
19 18
24
50
30
21
40
39
35
31
28 29
27
30
2
10 11
25
27
26
23
9
19
1 2
3
14
17
21
16
12
15
1
4
5 6
8
2
6
10
20
30
40
50
60
70
80
Importance of
taste
Importance of
Fragrance
Importance of
Colour
Importance of
time of
Preparation
Importance of
Long leaf
Importance of
Short leaf
Importance of
Packaging Size
Value of Money Importance of
Mixture
Very Important Important Ok Not so important Not important
Factors considered for purchasing
Decision

13. Factors considered for purchasing
Decision
 76% of respondents consider taste as a very important factor
while purchasing tea. However 50% of the respondents
consider value of money as very important factor. Only 21% of
respondents believe that time preparation is a very important
factor. Fragrance along with colour considered as an important
factor by 40% and 39% of respondents respectively.
 While 21% of respondents considers taste as an important
factor. Every respondents believe that fragrance is an
important factor for purchasing decision. 31% of respondents
consider long leaf as an important factor when only 5% believe
of respondents believe it is not important. 18% of respondents
consider short leaf as a very important for purchasing decision
while 21% of respondents believe it is not so important factor.
23% of respondents consider packaging size as a neutral
factor.

14. Use of Present Brand
 52% of the respondent has been
using the present brand for more
than 10 years, 21% of the
respondents has been using the
present brand for 2 to 5 years .20%
of the respondent has been using
present brand for 5 to 10 years, there
are only 7% of the respondent who
has been using the present brand for
less than 2 years.
 Highest no of respondents have not
even changed their brand which
shows the loyalty for their brand
maximum brand loyalty is
experienced by wagh bakri tea
group.
52
21
20
7
Use of present brand
More than 10 years 2-5 years 5-10years less than 2 years

15. Sales promotional tool enjoyed
 From all the sales promotional
tools “buy one get one free”
offer has been enjoyed by the
32% respondents. “Free gift”
has been enjoyed by 20% of
respondents, while 21% of
respondents enjoy “Other
offers” given by tea brands.
14% and 9% of respondents
have enjoyed “20% extra” and
“free sample” respectively. Only
4% of respondents have
enjoyed “Rs.5 off” as offer.
32
4
14
9
20
21
buy1get1 free Rs5/- off Twenty%grace
Free sample Free gift Others

16. Satisfaction level from Present
Brand
58
72
48
34
39
26
36
26
39
42
41
32
5
2
11
21
16
29
1 1 2
3
10
1 1
3
10
20
30
40
50
60
70
80
Satisfaction from
colour
Satisfaction from taste Satisfaction from
Fragrance
Satisfaction from
packaging size
Satisfaction from price
of
Satisfaction from
promotion of
Highly satisfied Satisfied Ok Not satisfied Highly not satisfied

17. Satisfaction level from Present
Brand
 72% of respondents are highly satisfied with taste of the
tea brand they consume. 58% respodnets are highly
satisfied by colors of respect brand of tea. Followed by
satisfaction level of colour with 58% of respondents that
consume tea. Less than 3% of respondents are not at all
satisfied with colour, taste, and packaging size of the tea
brand they consume. 42% of respondents are satisfied
with packaging size of their tea brand and 41% of
respondents are satisfied from price of their tea brand

18. Hypothesis
SUMMERY OF CHI-SUQARE TEST ANALYSIS
Different Aspects of Consumer
Behaviour
Influence of various demographic aspects
Age Gender Qualificatio
n
Professio
n
No. of
kids
No of
family
Selection of brands 0.49 0.62 0.50 0.49 0.40 0.27
Importance of Taste in selection of
Brand
0.50 0.21 0.94 0.20 0.04 0.88
Importance of colour in selection of
Brand
0.06 0.01 0.98 0.03 0.23 0.36
Importance of fragrance in selection
of Brand
0.32 0.06 0.89 0.37 0.02 0.18
Importance of size in selection of
Brand
0.89 0.05 0.03 0.15 1.00 0.24
Importance of money in selection of
Brand
0.20 0.56 0.04 0.38 0.19 0.15
Satisfaction for Colour of Tea Brand 0.37 0.04 0.08 0.50 0.14 0.95
Satisfaction for Taste of Tea Brand 0.07 0.00 0.93 0.28 0.23 0.24
Satisfaction for Smell of Tea Brand 0.31 0.01 0.77 0.03 0.07 0.69
Satisfaction for Package of Tea Brand 0.05 0.04 0.31 0.10 0.33 0.01
Satisfaction for Money of Tea Brand 0.69 0.78 0.96 0.02 0.48 0.02

19. Hypothesis Summary
 Various demographic aspects are influencing consumer
behaviour. However chi square analysis shows that
selection of brand has no significant influence of any
demographic factor like age, gender, qualifications,
professions and family size.
 Consumers emphasise taste, colour, fragrance while
selecting tea brand. Chi square analysis shows that
consumer’s importance for taste while selecting brands is
influence by number of kids in the family. Similarly
importance of selection of brands is influence by gender
again numbers of kids in family influences important
given to fragrance of respective tea brands.

20.  Preferred size for tea brand determines convenience of
consumers as well as it determine purchasing power.
Importance given by consumers about size of packing of
tea is influenced by gender as well as qualification and
consumer attitude towards value of money in selection of
brand is influence by qualification.
 Similarly satisfaction for colour smell and package of tea
is influenced by gender. Age of respondents has direct
influence on satisfaction for packing size. Number of
family members in family have influence on satisfaction
for preferred packing size and value for money.

21. Findings
 Waghbakri has the highest market share in Ahmedabad.
 The five most important factors influencing the purchase
of a brand for tea is taste, quality, flavor, certification, and
impact on health.
 Promotions and discounts, samples, prices and mixture
are the least important factors in the purchase decision.
 36% of the respondents prefer to drink tea once in a day.
 According to the changing seasons people preferred to
drink different types of tea like herbal tea, ginger tea
& ice tea etc.

22.  The most preferable place for purchasing tea is nearby
retailer or by special retailer.
 72 % of the respondents highly satisfied with taste of tea
brand preferred by them.
 41% of the respondents are satisfied from the price of
the tea brand which they prefer.
 The largest consumers of tea are found in the age group
of 18-36 years.
 52% of the respondent has been using the present brand
for more than 10 years.
 Respondents change their tea brands for better quality
and for cheaper optional brand.

23. Conclusion
 Tea is one of the most favourite and easily available
beverages in Gujarat. Consumer’s selection for tea brand is
highly affected by various demographic factors. Tea market in
India is highly dominated by multinational companies; even
though power of local brand is very significant. Consumer
selection for tea brand is highly based on past experience,
friends reference and overall on family’s choice.
 Even though product is of daily use the level of involvement of
consumer in selection of brand is significantly higher. Almost
every market player has made changes in marketing mix to
attract more number of customers. However waghbakri is
consider to be most preferred across the city. Looking to the
consumer’s preference and brand loyalty waghbakri has
extended their product lines and increase. Here we can
conclude that consumers are very brand loyal and seeking
taste and value for money for their brand.

24. Suggestions
 Availability of the tea should be improved and company
should concentrate on variety of the tea products
 Company should improve the packing quality of the tea
and try to improve the overall service of the tea.
 Different promotional methods should be used for
improvement of sales and promotion mix should carefully
select.
 Salesmen should be motivated by providing incentives,
commission, travelling allowances, recognition and
reward.

25. Good relations should be maintained with the
customers and proper information about
promotional schemes should be given.
Price off and discounts are the main sales
promotion techniques which can be used.
Improvement of supply chain management inside
the country and the global tea marketing network
has to be made.

26. Submitted to:
Dr.Belur Baxi. Submitted by:
Date: 3/04/17
Name Roll No.
1 Mruga Bhatt 004
2 Sakshi Agrawal 080
3 Rudrakshi Joshi 089
4 Juhi Bhandari 126
5 Mayuri Bhansari 127
6 Taslim Bode 130
7 Brij Maniar 167
8 Nafis Mansuri 169
9 Naren Soni 211