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DR.R.CHANDRAN
If
If you are cold, tea will warm you, If you are heated ,it will cool you, If you are depressed, it will cheer you. If you are excited, it will calm you
William E Gladstone
Origin of Tea
5000 yrs Ago-Emperor of China. During 793 AD Tea widespread. 1610 The first consignment of tea reached Holland from where the first import came to England.
Composition of Tea
Tea is composed of many nutrients which are claimed to have extremely strong health benefits. Anti Oxidants Caffeine Minerals Fluoride, Magnesium, Potassium and Zinc Vitamins - A, B-1, B-2, B6, B12, C and E Amino-Acids Theo bromine Theo plline
Black Tea- normally what we drink, it has been oxidized longer, tends to have more caffeine and a stronger flavor Green Tea- least amount of oxidation, can be found in the local grocery store Oolong Tea- the in-between tea, it is brewed strong and bitter but leaves a sweet aftertaste
Processing
Mechanical holling
Planting
Ready to harvest
Plucking
Leaf weighment
Fermentation
Processing
Drying
Grading
The tea tasting takes place around a tasting table which is laden with bowls of dry tea leaves. In the next stage an amount of tea leaves weighing about 2.8 grams is put into an kettle with a capacity of 150 ml. for brewing. Boling water is poured onto the tea leaves and the kettle is covered to allow brewing which takes about six minutes. The tea liqueur is poured into the tasting cups and the infused leaves are taken out and displayed for inspection . The expert tea tasters taste one tea sample after another After tasting each tea the tasters spit the tea liqueur into spittoons.
Grading of Tea
Grading of Tea
The Two main factors which affect the grading of tea are:
.1 The size of the tea leaves: Whole, large tea leaves gain a higher grading 2. The method of production of the tea: There are 2 methods of manufacturing tea
TEA IN INDIA
Largest producer consumer in the world
Second largest area in the world with
5,21,500 hectares.
In south 1,16,000 hectares. Major tea growing regions are located in:-
Assam 53%,WB 23.9%,TN 11.30%, Kerala , 8.44%, Karnataka 0.48 & Tripura 1.40%.
Fourth largest exporter in the world
INDIAN TEA
SOURCING :
Sourcing of tea
Assam 53%
SOURCING LOCATIONS
COMPETITION
CONSUMER PSYCHOLOGY
FACTORS
TECHNOLOGY SERVIVE
QUALITY
DEMAND
MARKET ANALYSIS
WITH PORTERS 5 FORCES
MARKET ANALYSIS
Inter firm Rivalry Over Supply in International markets Intense competition among exporting Countries Low auction Prices Many Regional Players Two major players control 50% of market Bargaining Power of Suppliers No bargaining power with Integrated players Higher bargaining power with Non Integrated players
Bargaining Power Consumers India is the largest consumer of tea Unorganized sector-64% Organized Sector-36% Existence of nearly 300 brands Unorganized tea market is priced lower compared to Organized market High Bargaining power
Threat of Substitutes Faces competition from other beverages like fruit juice and cold drinks Traditional coffee drinking belt Threat of New Entrants High Capital required ROI expected is only after 5-7 years Non availability of fresh cultivable area Attractive retail market Threat of new entrant in suppliers is low but in case of retailers is high
India
U.K
U.A.E New market focus Export target 200 million kg. India-28% China 26 % Brazil 9%
Pakistan
Iran
Egypt
MARKETING STRATEGIES
FAIRS/EXHIBITIONS
INVITE BUYERS
MEETS
PROMOTIONAL STRATEGIES
Go for value addition
Branding and packing essential Regulatory formalities and technical
DISTRIBUTION CHANNEL
Three main distribution channels
Bulk market Loose tea Packaged tea
To semi wholesaler or Retailer for sales To domestic consumer In the form of Loose tea
OPPORTUNITIES
Growth in per capita consumption of tea. (growing at a
CAGR of 1.8%) Potential to capture market in low consumption areas like Bihar, Uttar Pradesh and Orissa. Only 36% is branded. Market potential in iced tea, flavored teas, green teas and organic teas segment. Growing awareness about the medicinal value of tea.
CHALLENGES
Production growth to be limited in future Increasing popularity of soft drinks Competition from Sri Lanka, Kenya and China.
domestic consumption and export as well. Certification of the tea estates. Set up tea cafes ( A lot more can happen over a cup of tea). Capture the theme of medicinal value of tea. Apply land rejuvenation and replanting activities so as to increase productivity.
Advertise Indias tea specialty in world market. Open retail outlets of Indian tea in foreign markets. Mechanize and automate operations so as to take advantage
of large area and increase productivity. Advertise value added products of tea such as iced tea, organic tea etc. Better irrigation facilities made available to the growers. Fixing the minimum wages so as to gain international acceptance. Research and Development Investment needs to be stepped up.
development Enhance the productivity of farm labour force Product Differentiation with brand name Acquisitions & Distribution tie ups
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