This document discusses the tea market in India. It provides background on tea production and consumption in India. India is the world's largest producer and consumer of tea. The document then describes the different types of tea, specifically green tea and black tea. It discusses how black tea dominates the global tea market. The rest of the document focuses on the packaged tea market in India, prominent tea companies in India, and insights from market research on tea consumption preferences across social classes in India.

1. BIPIN KUMAR BAITHA
12007512
MKT CA2
FACULTY : DR ARUN KAUSHAL
[Pick the date]

2. CASE OF TEA CLASS
Tea is the most t popular beverage in India. A cup of steaming
tea is indispensible for most Indians and their day starts with a
cup as an energy booster.
Tea production in India was 9,79,000 tonnes in 2009. In terms
of consumption, export and production of tea, India is the
world leader. It accounts for 31 per cent of the global
production of tea. India has retained its leadership of the tea
industry for the last 150 years. The total turnover of this
industry is approximately 10,000 crore in the year 2012.
Since 1947, tea production in India has increased by 250 per
cent and the land that is used for production has increased by
40 per cent. It is apparent that the te market is a profitable
market. Marketing of tea deos not require rocket science, only
marketing finesse because of different types of tea that are

3. available. Marketing of tea is difficult and requires marketing
avy as the tea market is complex. The complexity is because of
the different types of tea that are available.
TEA AS A PRODUCT CATEGORY
At the basic level, tea is of two types-green tea and black tea.
Both types of tea are produced from the same plant but are
differently processed. Black tea is more oxidized (or fermented)
than green tea. Green ta is a niche product and mainly
produced in China and consumed there and in Japan. The
leaves of green tea are picked when still young and are dried
for a short time before packaging and selling.
Black tea is a popular tea, and today, 90 per cent of the
consumption in the world is of black ta Black tea is stronger in
aroma and taste than green tea. There are two methods of
manufacturing black tea .

5. First is by hand, which is the traditional or orthodox
method,and the second is the modern method in which
machines are used. The modern method is also called CTC
(crush, tear, and curl). CTC processing results in various grades
(according to their size) of tea leaves that are sorted by using
sieves. The best tea leaves are whole leaves that are largest in
size followed by brokens and fannings
Dust is considered to be the lowest quality of tea and is the
cheapest in terms of cost. A cup of tea made from dust results
in dark and strong tea that does not have the natural
sweetness of the tea leaf. As a result, less tea dust is required to
make one cup of tea than fannings and whole or broken leaves.
As a result, it is most favoured by the poor class.

6. Market Scenario of TEA
India is a big market for tea. India and China are the top two
countries in terms of its production and consumption. In India,
tea is sold in two ways loose, as a commodity, and packaged as
different tea brands. The packaged tea market in India is worth
76,000 crore according to Euro-monitor Report of April 2009.
Out of 6,000 crore the share of 'black tea' was 5,700 crore.
Therefore, the Indian ter market predominantly a 'black tea'
market.
The packaged tea market has two types o players-national and
regional. According to th Euro-monitor report Hindustan
Unilever and Ta Tea are the two most prominent national
players they share 55 per cent of the market between them
However, 34 per cent of the market is with regional players

7. These companies are basically blenders and packagers. They
purchase or procure tea either from their own gardens or from
auctions. They add value by blending different types of teas
(i.c., dust, fannings, and leaves) to suit the consumers
requirement. Another important function of these companies
lies in standardization and branding.
It is interesting and relevant to note two facts: Wagh Bakri,
which is a Gujarat-based company and dominates the local
market, has the aspiration to become a national player. For this
purpose, they have re-energised their old brand called Good

8. Morning Tea and have launched it in Mumbai and the nearby
markets of Rajasthan and Madhya Pradesh.
• All the companies have multiple brands to address the needs
of different classes. This is important because tea preference
varies from one social class to another.

9. Aravali Tea Company
Aravalli Tea Company is a regional brand of Gujarat and is
headquartered in Surat. Although it has consumers all over
Gujarat, the company is mainly popular in south Gujarat. It has
two brands Aravalli CTC and Aravalli Dust. Aravalli Dust is very
popular in the rural areas of south Gujarat whereas Aravalli CTC
basically sells in the urban areas. Aravalli CTC is patronized by
the urban middle class and customers from this class swear
unflinching loyalty to it.
From the company's point of view, the problem lies at the top
of the hierarchy. middle of the market pyramid is covered by
Aravall Dust and Aravalli CTC respectively. The c has no brand
to address the top of the pyramid that is, consumers from the
upper class. It has become urgent for the company to address
this segment of consumers because: company

10. 1. The spurt of economic growth in Gujarati general and Surat
in particular has increased the number of consumers in this
segment manifold.
2. Wagh Bakri has recently re-launched its brand Good Morning
Tea to address the needs of this segment of consumers and
with the help of this is trying to get a larger portion of the Surat
market.
3. National companies are trying to capture a much of the
market as possible with the help of national brands such as
Tata Tea Premium, Tata Tea Gold, and Taj Mahal.

11. Challenges
The company is present in the mid-level market and
understands it completely. However, if it has to design a brand
for the upper class, it needs to understand the meaning that
tea has for upper class consumers. To understand the
consumers and their preferred tea, the company conducted a
market research among tea consumers of upper, middle, and
lower class consumers to understand the differences among
them.

12. Findings from Market Research
1. It was found out that for a tea drinker their day does not
start until they had their morning cup, whether they
belong to the upper, middle, or lower classes, with their
family. During the day, tea is consumed with different
people at different places (office, home, with friends, etc.).
This tea however, was not equated with the tea made at
home, which was considered to be superior.
2. Another interesting finding was that tea was used as a
transition marker, that is, it was used to mark the end of
one task and the start another task.
3. Interestingly, it was found that children belonging to
lower and sometimes, from the middle class, start drinking
tea at an early age, sometimes even at the age of 10 or11.

13. On the other hand, children belonging to the upper and
upper middle class families do not start on tea till they
reached the stage of late teenage.
4. Respondents from all the classes stated that tez has
become a habit. They liked to drink 12 because of its
flavour, aroma, and taste. However, the way they
expressed the meaning of these words and their
importance varied from one class to the other.

14. SOME RESPONSES
1.Tea for me is nature and the smell of the n. The early
morning tea and then a walk in the nearby park is my way of
being in touch with nature. It provides me with the mental
ergy which stays with me throughout the DAY.
Vice President (Finance) and drinker of a premium brand of
tea
2. a full day of work-it just kills me. There is just no energy
left in me when I reach home, my whole body is aching, What
energizes me is a cup of tea strong tea, a sip of which
refreshes my body and I feel ready.
-A factory supervisor and drinker of mid-level tea brand

15. 3. "Tea is like engine oil for me without which my body refuses
to work. It is like all the different parts of me are in friction with
each other. When I drink tea my body starts working smoothly
just like an engine with which is properly oiled.'
-A scooter/motorcycle garage owner and drinker of tea
dust

16. THANK YOU