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3. India
30%
China
21%
Sri Lanka
9%
Kenya
10%
Indonesia
5% Others
25%
Top FiveTea Producing Countries:
India China Sri Lanka Kenya Indonesia Others
India
23%
China
16%
Russia
6%
U K
6%
Japan
5%
Others
44%
Top FiveTea Consuming Countires:
India China Russia U K Japan Others
India is the largest tea producing and consuming country in the world.
TEA MARKET OVERVIEW
4. Domestic Marketing ofTea :
This Chart explain distribution channel of loose tea in domestic
market from planter sells to institutional consumer which is done
through mini auction, ex-garden, forward contract and tea broker.
There is a long chain between planter and institutional consumer
for distribution of loose tea as wholesalers, retailers, commission
agent and brokers are involved.
Tea brokers do auction and pass loose tea to agents.
Channels of distribution of loose tea in domestic marketing
5. MAJORTEA BRANDS IN INDIAN MARKET:
NATIONAL PLAYERS:
• TATATEA
• SOCIETYTEA
• DUNCAN
• BROOKE BOND
• TAJ MAHALTEA
• LIPTON
• TETLEY
REGIONAL PLAYERS:
• GIRNAR
• WAGH BAKRI
• MARVEL
• PATAKA
• VIKRAM
• TODAYTEA
6. MOHANITEA LEAVES PVT. LTD.
TYPE : PRIVATE LIMITEDCOMPANY
INDUSTRY : NON-ALCOHOLIC BEVERAGES
FOUNDED : 1993 (UTTAR PRADESH)
FOUNDER : R.C. AGARWAL
CORPORATEOFFICE : B-8, NOIDA ONE, 5th FLOOR,TOWER-C, SECTOR-62, NOIDA-201309,
INDIA
PRODUCTS : TEA
PROMOTIONALTAG LINE
:
Mohani Piyo Khul Ke Jiyo
USP Excellent Quality AromaticTea
WEBSITE : www.mohanitea.com
MOHANITEA SWOT Analysis, USP, STP & COMPETITORS:
SWOT Analysis of MOHANI TEA with USP, Competition, STP (Segmentation, Targeting, Positioning)
- Marketing Analysis
MOHANITEA - STP
SEGMENT : Various segments(Based on price)
TARGETGROUP : Middle and Upper class People looking for high quality tea based
on their choice of price
POSITIONING : Mohani Piyo Khul Ke Jiyo
7. MOHANITEA - SWOT ANALYSIS
STRENGTHS :
Focus on quality: Mohani Tea has always been positioned as a high-quality tea and has been graded for quality.
State-of-art-Infrastructure including a warehouse with storage capacity of 5 million kg beating the seasonality factor.
India’s first tea company that provides integrated tea solutions right from procurement, processing, manufacturing up to export.
Mohani Tea caters to diverse tea manufacturing needs including private label, tea bags, flavored, herbal and value added teas
production.
In depth knowledge and understanding of tea with a determined and well experienced tea team. Mohani Tea’s expertise in
sourcing, tasting, blending and consumer understanding.
Brand presence in more than 12 States of North, West & East Region of India.
One of the Most Promoted & Recognized brand in North India. Known for excellent aroma of tea.
Has been in the business for over 25 Years now and so is well established.
Leadership in tea segment in UP.
8. WEAKNESSES :
Highly fragmented Market in India.
It is labour intensive industry and has associated Issues.
Concentration risk over single category.
Distribution channels: Mohani Tea is a Regional brand and very far away from reach of mass segment in India. Thus the
company need its best to push the brand in the distribution Channel, retailers are apprehensive to push it which in turn
affects the volumes and not getting space in most of the household’s kitchen.
Poor penetration in the Rural & Urban market: In comparison to Other Tea companies in India, Mohani Tea has very
poor penetration in the Rural & Urban markets. This is a very lucrative market since Rural & Urban India has a huge
untapped potential.
Low Margins : The prices of tea are fluctuating in the global economy and the cost of manufacturing, as well as packaging
is high. The competition is huge in most of the markets where the company operates and this means that the volumes are
low. This affects the margins adversely.
Inability to penetrate into the upmarket tea segment: Mohani tea is trying to penetrate into the up-market tea segment.
However, it is finding a lot of issues there especially in terms of the investment involved in promotion which is huge.
9. OPPORTUNITIES :
Good awareness level world over as to the health attributes of tea leading to growing demand for good quality TEAs and
Specialty TEAs.
Increase its presence in Rural & Urban Market.
Tea Launge/Café Chains: Many beverage companies are entering into the Launge/Café chains business where specialty
teas are served along with related snacks. In both emerging and developed economies. This is one domain where Mohani
Tea can focus on.
Increase in demand for organic and flavoured tea: There is a global surge in demand for specialty Tea specially in Urban
Areas. Moreover, the marketing of green tea as a weight reduction option has increased the demand for green tea.
Value Added Products: The company can look at value-added products like flavored teas, green teas or ayurvedic or
medicated teas each of which will have a lot of potential in the future.
10. THREATS :
Threat due to erratic climate and undistributed rains in India.
Substitutes like juices are becoming more popular.
Majority of Youth does not prefer Tea due to their health concern.
Competition: Some of the major competitors of Mohani Tea are TATA TEA, HUL, Brooke Bond, Marvel tea, Today Tea and
Many More. In addition to the Global and national brands, there is also a lot of local and regional players.
Increased concerns for health: The increased concerns of health have resulted in the increase in the sales of organic tea as
well as green tea and Mohani Tea needs to increase their focus on these areas failing which it will become a huge threat.
New Market Reaction : Rural population is a big market but reaching them is a challenge. Distribution and reaching to far
flung areas in Rural Market is a huge challenge. Being a new brand, it would be very difficult to find distributors. Everyone
may ask for credit period. Off-take would be low so shopkeepers may not show much confidence in the product.
12. MARKETING MIX OF MOHANITEA:
PRODUCT in Marketing Mix of MohaniTea :
Rich taste, unique aroma and distinctive flavor make Mohani Tea one of the most Recognize tea brands in North Indian market.
It has a diversified product portfolio which has categorized in two category :
PREMIUM SEGMENT: T-CHAIGREENTEA
MOHANI - EVERGREEN
MOHANI - GOLD
MOHANI - GOLDGIFT PACK
REGULAR SEGMENT : MOHANI - FRESH
MOHANI - SUPERGOLD
MOHANI - GOODTIME SUPERIORTEA
MOHANI - GOODTIME PERFECTTEA
MOHANI - PREMIUMTEA
MOHANI - BIG CUP, REDTEA
MOHANI - DHABA HOTELTEA
13. PRICE in Marketing Mix of MohaniTea :
Mohani Tea caters to a mass market that includes People from every section of society (Majorly Tier II & III). It has tried to
penetrate in every segment whether rural or urban so that it can acquire a greater market share through its penetration
policy.
Moreover, the brand faces stiff competition from several rival brands and hence has to maintain competitive prices so that
it can retain its advantage over competitors. Intelligent packaging, great quality and comparatively low prices have made
Mohani Tea an accessible beverage in the consumer market.
COMPETITORS BRAND IN (250 gm) MRP (INR) OFFERS
TATATEA PREMIUM 90/- BIKANO NAMKEEN FREE (Rs.18/-)
TATATEA GOLD 110/- MAGGIE FREE (Rs. 11/-)
TATATEA AGNI 50/-
BROOK BONDTAJ MAHAL 115/- MASALA CHASKA FREE (Rs. 10/-)
WAGH BAKARI PREMIUM 100/- PLASTIK BOWL FREE
Price and Consumer Schemes offering by Brands Leaders:
14. PLACE in Marketing Mix of MohaniTea :
In order to create a market for its products Mohani Tea has decided to create and maintain a professional approach. The
company has made its distribution channel very organized so that products can be easily available to the customers. The
product is produced at the manufacturing plants of the company and from there they are dispatched to the C&F and
Distributor.
Mohani Tea is committed to gain better understanding of the market and hence they are always in the lookout for improving
any hiccups in the distribution channels. Brand presence in more than 12 States of North, West & East Region of India. Their
presence are in markets of Madhya Pradesh, northern states like Uttar Pradesh, Rajasthan, Bihar & Jharkhand, Punjab and
Jammu & Kashmir and many more.
Mohani Tea Leaves Pvt Ltd. also a regular supplier to the Defense Stores, Police Canteens, Railways and other Government
and Semi Government Organizations.
Mohani Tea Leaves Pvt. Ltd. are the principal private label suppliers of tea packs exclusively to the best retail chains in India
including Wal-Mart, Auchan, Big Bazaar, Cosmic, Spencers, etc.
15. PROMOTION in Marketing Mix of MohaniTea :
Mohani Tea has adopted an aggressive marketing strategy in year 2014-2015 and positioned its beverage as a Quality brand
through several promotional activities that highlight its main features quality, affordability and user friendliness.
Mohani Tea started its marketing with an advertising slogan “Mohani Piyo Khul Ke Jiyo”. Some other important taglines are “Ek
cup mohani to banati hai”. Its ad campaigns have been launched in television, radio, magazines, newspapers, billboards and
social media platforms. Mohani Tea participates in various trade shows and Outdoor activities. They promote their brand through
ATL & BTL activities.
16. During my Visit to Noida, Kondali (East Delhi), Bhogal/Ashram (South Delhi) market. I found no significant presence in any of
these areas.
Many retailers were aware of the Brand Mohani Tea but not keeping the product in his shop. This is due to improper supply
network and High demand of Established Brand ie., TATA, HUL, etc..
Many consumers were also aware of the brand Mohani Tea but not getting the product due to poor supply network. Majority
of consumer were also very prone to TATA TEA and expecting some motivational scheme for switching to new brand.
However, quality was their basic requirement.
Mohani Tea should aggressively focus on expanding their distribution network in vacant market. First few years is crucial till
people develop the habit of buying. Mohani Tea should target Tier2 and Tier3 market where customer is still not very taste
loyal. Small pouches of Rs. 5 and Rs. 10 must be promoted aggressively in Industrial and labour intensive zones.
BTL activity or roadshow must be followed in respective market to increase consumer base. Live demo and sample tea taste
activity should be done through BTL activity.
Mohani Tea need to focus on Rural followed by Urban Rural areas where Established brand’s presence are less. This will
help Mohani tea to Increase the Market penetration and Share.
CONCLUSION:
17. Mohani Tea should aggressively focus on expanding their distribution network in vacant market. First few years is crucial till
people develop the habit of buying. Mohani Tea should target Tier2 and Tier3 market where customer is still not very taste
loyal. Small pouches of Rs. 5 and Rs. 10 must be promoted aggressively in Industrial and labour intensive zones.
Mohani Tea should run lucrative dealer scheme in terms of margin for the placement of products. Currently Dealers are
offering 5-10% extra on MRP to the customers.
Customer must get a price difference initially similar to what patanjali did earlier, along with some freebies.
Channel Partner & Consumer engagement program i.e., Loyalty program or Gift voucher on purchase or lucky draw coupons
activity should be offered by brand to increase the Channel partners & Consumers trust and establishing relationships. This
will help in increasing consumer repeat buying habit.
Continual advertising through TV and Digital Media is required to counter the competitors and increase in consumer base.
CONCLUSION Cont….: