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Introduction
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RURAL INDIA…a new dawn
India needs creative solutions to start a revolution which can
take its villages fast forward in time – converting them into
economically viable units and growth engines, harnessing
the power of the villagers, and opening up new horizons with
the promise of a better tomorrow.
2
OBJECTIVE & SCOPE OF STUDY
Primary Objective:-
strategies adopted by different companies for marketing of ‘Tea’ in rural areas of India.
Secondary Objective:-
3
SCOPE OF STUDY
This project gives a great exposure to rural market because it include the problems of
rural India with existing opportunities and different strategies adopted by companies to
take advantages of these opportunities by serving rural markets. The different scopes of
4
THEORETICAL BACKGROUND OF STUDY
Before gamboling into issues like where the Indian rural market stands and the
opportunities for corporate’s to explore there... let's look at the definition of urban and
rural India. The Census defined urban India as - "All the places that fall within the
have a population of at least 5,000 and have at least 75 per cent male working population
in outside the primary sector and have a population density of at least 400 per square
kilometer. Rural India, on the other hand, comprises all places that are not urban!"
Now for some facts and figures The Indian rural market today accounts for only about Rs
8.8 billion (57 per cent - FMCG sector, 59 per cent durables sale, 100 per cent
agricultural products) of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of
Time and again marketing practitioners have waxed eloquent about the potential of the
rural market. But when one zeroes in on the companies that focus on the rural market, a
mere handful names come to mind. Hindustan Lever Limited (HLL) is top of the mind
with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'.
The lynchpin of HLL's strategy has been to focus on penetrating the market down the line
and focusing on price point. Furthermore, activating the brand in the rural market through
activities, which are in line with the brand itself, is what sums up HLL's agenda as far as
Gowthaman. Amul is another case in point of aggressive rural marketing. Some of the
5
other corporates that are slowly making headway in this area are Coca Cola India,
We can safely say that until some years ago, the rural market was being given a step-
motherly treatment by many companies and advertising to rural consumers was usually a
hit and miss affair. More often than not, the agenda being to take a short-cut route by
pushing urban communication to the rural market by merely transliterating the ad copy.
Hence advertising that is rooted in urban sensitivities didn't touch the hearts and minds of
the rural consumer. While, this is definitely changing, the process is slow. The greatest
challenge for advertisers and marketers continues to be in finding the right mix that will
have a pan-Indian rural appeal. Coca Cola, with their Aamir Khan ad campaign
6
Corporates are still apprehensive to "Go Rural." A few agencies
that are trying to create awareness about the rural market and its
Lifebuoy's wall Outreach, Linterland and RC&M, to name a few. Also, the first
painting in rural four agencies mentioned above have come together to form The
Interestingly, the rural market is growing at a far greater speed than its urban counterpart.
"All the data provided by various agencies like NCAER, Francis Kanoi etc shows that
rural markets are growing faster than urban markets in certain product categories at least.
The share of FMCG products in rural markets is 53 per cent, durables boasts of 59 per
cent market share. Therefore one can claim that rural markets are growing faster than
urban markets," says Sampark Marketing and Advertising Solutions Pvt Ltd managing
director R A Patankar.
7
Coca-Cola India tapped the rural market in a
has realized the potential of the rural market is going strength to strength to tap the same.
Citing other challenges in rural marketing, Patankar says, "Campaigns have to be tailor
made for each product category and each of the regions where the campaign is to be
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executed. Therefore a thorough knowledge of the nuances of language, dialects and
familiarity with prevailing customs in the regions that you want to work for is essential.
The other challenge is the reach and the available means of reaching out to these markets,
hence the video van is one of the very effective means of reaching out physically to the
rural consumers."
The fact of the matter remains that when compared to the Indian urban society, which is
turning into a consumerism society; the rural consumer will always remain driven by his
needs first and will therefore be cost conscious and thrifty in his spending habits.
"Decision-making is still conscious and deliberated among the rural community. But
nevertheless, the future no doubt lies in the rural markets, since the size of the rural
market is growing at a good pace. There was a time when market predictions were made
on the basis of the state of the monsoon but this trend has changed over the years; there is
a large non farming sector, which generates almost 40 per cent of the rural wealth. Hence
the growth in the rural markets will be sustained to a large extent by this class in addition
to the farmer who will always be the mainstay of the rural economy," affirms Patankar.
"Although the melting of the urban - rural divide will take a while, this is not for want of
the availability of the means but for want of the rural consumer's mindset to change;
which has its own logic, which is driven by tradition, custom and values that are difficult
anyways be cheaper to rural CPC and unless and until the volume - value equation turns
the other way round, you will not be able to spend disproportionate monies in the rural
market."
It's all about how one approaches the market, takes up the challenge of selling products
and concepts through innovative media design and more importantly interactivity.
Anugrah Madison's chairman and managing director RV Rajan sums up, "There is better
scope for language writers who understands the rural and regional pulse better. I also see
great scope for regional specialists in the areas of rural marketing - specialists like Event
Managers, Wall painters, folk artists, audio visual production houses. In fact all those
people who have specialised knowledge of a region are bound to do well, thanks to the
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So the fact remains that the rural market in India has great potential, which is just waiting
to be tapped. Progress has been made in this area by some, but there seems to be a long
way for marketers to go in order to derive and reap maximum benefits. Moreover, rural
India is not so poor as it used to be a decade or so back. Things are sure a changing!
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In recent years, rural markets have acquired significance, as the overall growth of the
economy has resulted into substantial increase in the purchasing power of the rural
communities. On account of green revolution, the rural areas are consuming a large
marketing strategy, namely, rural marketing has emerged. But often, rural marketing is
confused with agricultural marketing – the latter denotes marketing of produce of the
rural areas to the urban consumers or industrial consumers, whereas rural marketing
consumers.
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What makes Rural Market Attractive?
Rural market has following arrived and the following facts substantiate this:
Of the six lakh villages, 5.22 lakh have a Village Public Telephone (VPT)
HHs.
Investment in formal savings instruments: 6.6 million HHs in rural and 6.7
million in urban
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Rural India buys:
o Buys small packs, low unit price more important than economy
In rural India, brands rarely fight with each other; they just have to be present at
Many brands are building strong rural base without much advertising support
Fewer brand choices in rural: number of FMCG brand in rural is half that of urban
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Some Myths about Rural Markets
Reality: It’s a heterogeneous population. Various Tiers are present depending on the
incomes like Big Landlords; Traders, small farmers; Marginal farmers: Labors, artisans.
State wise variations in rural demographics are present viz. Literacy (Kerala 90%, Bihar
44%) and Population below poverty line (Orissa 48%, Punjab 6%)
Reality: Number of middle class HHs (annual income Rs 45,000- 2, 15,000) for rural
sector is 27.4 million as compared to the figure of 29.5 million for urban sector. Rural
incomes CAGR was 10.95% compared to 10.74% in urban between 1970-71 and 1993-
94.
buyer, one who pays can all be different. So marketers must address brand message at
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Why Different Strategies?
Rural markets, as part of any economy, have untapped potential. There are several
difficulties confronting the effort to fully explore rural markets. The concept of rural
markets in India is still in evolving shape, and the sector poses a variety of challenges.
Distribution costs and non availability of retail outlets are major problems faced by the
marketers. The success of a brand in the Indian rural market is as unpredictable as rain.
Many brands, which should have been successful, have failed miserably. This is because,
most firms try to extend marketing plans that they use in urban areas to the rural markets.
The unique consumption patterns, tastes, and needs of the rural consumers should be
analyzed at the product planning stage so that they match the needs of the rural people.
Therefore, marketers need to understand the social dynamics and attitude variations
within each village though nationally it follows a consistent pattern. The main problems
Poor infrastructure
Physical Distribution
Channel Management
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Dynamics of rural markets differ from other market types, and similarly rural marketing
strategies are also significantly different from the marketing strategies aimed at an urban
or industrial consumer.
17
Opportunities
30%
o More than 90 % villages electrified, though only 44% rural homes have
electric connections
o Rural telephone density has gone up by 300% in the last 10 years; every
27%
18
Durables Urban Rura Total (% of rural HH)
l
CTV 30.4 4.8 12.1
Refrigerator 33.5 3.5 12.0
FMCGs
Shampoo 66.3 35.2 44.2
Toothpaste 82.2 44.9 55.6
Proliferation of large format rural retail stores which have been successful also.
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CHAPTER-2
20
RESEARCH METHODOLOGY
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
Descriptive and Analytical type of study was adopted while conducting the project.. The
major purpose of the study is to describe the state of affairs as it exists at present. The
study was based on the facts or information already available, & analysis of this available
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DEFINING THE PROBLEM
RESEARCH DESIGN
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
study buyer’s behaviour, consumption pattern, brand loyalty, and focus market changes.
A research design specifies the methods and procedures for conducting a particular study.
variance.
Research design specifies methods and procedures for study. In this study Causal
Research Design has been used because this study was done by me to know the
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strategies of different companies penetrating rural market and the effects of those
SAMPLING METHOD
SAMPLE SIZE
RESEARCH TOOLS
Websites of companies
Newspapers
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COLLECTION OF DATA:
This report is based on secondary data and this data was arranged from the various
studies conducted in last few years and various other records of company & their
websites.
Primary Data:
The primary data used in this report was taken from other research reports and data
Secondary Data:
Since the project is based on secondary data.. These data were collected from various past
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CHAPTER-3
25
COMPANY PROFILE
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Set up in 1964 as a joint venture with UK-based James Finlay and Company to develop
value-added tea, the Tata Tea Group of Companies, which includes Tata Tea and the UK-
based Tetley Group, today represent the world's second largest global branded tea
operation with product and brand presence in 40 countries. Among India's first
multinational companies, the operations of Tata Tea and its subsidiaries focus on branded
product offerings in tea but with a significant presence in plantation activity in India and
Sri Lanka.
The consolidated worldwide branded tea business of the Tata Tea Group contributes to
around 86 per cent of its consolidated turnover with the remaining 14 per cent coming
from Bulk Tea, Coffee, and Investment Income. The Company is headquartered in
Kolkata and owns 27 tea estates in the states of Assam and West Bengal in eastern India,
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The company has five major brands in the Indian market - Tata Tea, Tetley & Agni with
three regional brands Kanan Devan, Chakra Gold and Gemini -- catering to all major
consumer segments for tea. The Tata Tea brand leads market share in terms of value and
volume in India and the Tata Tea brand is accorded "Super Brand" recognition in the
country. Tata Tea's distribution network in the country with 38 C&F agents and 2500
stockists caters to over 1.7 million retail outlets (ORG Marg Retail Audit) in India.
The company has a 100% export-oriented unit (KOSHER & HACCP certified)
manufacturing Instant Tea in Munnar, Kerala, which is the largest such facility outside
the United States. The unit's product is made from a unique process, developed in-house,
of extraction from tea leaves, giving it a distinctive liquoring and taste profile. Instant Tea
is used for light density 100% Teas, Iced Tea Mixes and in the preparation of Ready-to-
With an area of approx 15,900 hectares under tea cultivation, Tata Tea produces around
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4P’s of Marketing of
Tata Tea
1#
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Product:
Bulk Tea
are supplied in packaging as per ISO norms as well as customer requirements viz. 4-ply
Kraft Paper Sacks, Multiwall Paper Sacks, Rigid T--Sacks, Polywoven Sacks, Currugated
Instant Tea
Instant Tea Division caters to customer specific product and are used for light density
100% Teas, Iced Tea Mixes and in the preparation of Ready to Drink (RTD) beverages.
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Intant tea powder - heavy density
Instant tea powder - institutional density
Instant tea powder - grocery density
Micro milled instant tea powder
2#
Price:
Marketers need to understand the psyche of the rural consumers and then act accordingly.
Rural marketing involves more intensive personal selling efforts compared to urban
marketing. Firms should refrain from designing goods for the urban markets and
subsequently pushing them in the rural areas. To effectively tap the rural market a brand
must associate it with the same things the rural folks do. This can be done by utilizing the
various rural folk media to reach them in their own language and in large numbers so that
the brand can be associated with the myriad rituals, celebrations, festivals, “melas” and
All the prices of the products depend upon the package ie 50gms or 100gms.
3#
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Place: (Distribution):-
One of the ways could be using company delivery vans which can serve two purposes- it
can take the products to the customers in every nook and corner of the market and it also
enables the firm to establish direct contact with them and thereby facilitate sales
promotion.
However, only the bigwigs can adopt this channel. The companies with relatively fewer
marketers can be established to facilitate distribution. Annual “melas” organized are quite
popular and provide a very good platform for distribution because people visit them to
make several purchases. According to the India n Market Research Bureau, around 8000
Rural markets have the practice of fixing specific days in a week as Market Days (often
called “Haats’) when exchange of goods and services are carried out. This is another
potential low cost distribution channel available to the marketers. Also, every region
If marketing managers use these feeder towns they will easily be able to cover a large
4#
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Promotion:-
Firms must be very careful in choosing the vehicle to be used for communication. Only
16% of the rural population has access to a vernacular newspaper. So, the audio visuals
must be planned to convey a right message to the rural folk. The rich, traditional media
forms like folk dances, puppet shows, etc with which the rural consumers are familiar and
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COMPANY PROFILE
34
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956
Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an
over 52,000 people. The company was renamed in June 2007 as “Hindustan Unilever
Limited”.
Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the
country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired
Brooke Bond through an international acquisition. Similarly, Lipton's link with India date
back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited
was incorporated. Pond's (India) had been in Indian market since 1947. It joined the
In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant
interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group
and the Dollops Ice-cream business from Cadbury India. In one of the most talked about
events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO)
merged with HLL, effective from April 1, 1993. In July 1993, Brooke Bond India and
Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Brooke Bond
35
Lipton India Limited launched Wall's range of Frozen Desserts in 1994 and by the end of
the year, HLL entered into a strategic alliance with the Kwality Icecream Group families.
36
HUL have two brands in tea-
Lipton Tea:-
Lipton's main pillar brands are Lipton Yellow Label and Lipton Iced Tea. Other product
lines exist as well, like the Lipton pyramid range in Europe and North America, and
Lipton Milk Tea in East Asia. In 2008, the brand launched Lipton Linea in Western
Europe.
Lipton Clear was also launched in 4 variants –Green Tea Jasmine, Green Tea Mint,
Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond Taaza and Brooke Bond
3 Roses are the most popular products under this brand. Brooke Bond 3 Roses which is
the leading tea brand of South India, launched ‘Brooke Bond 3 Roses Natural Care'. All
the products that have been launched by Brooke Bond have been the result of carefully
conducted research and experiments between the Brooke Bond Tea Excellence Centre
This brand is intimately associated with the life of Indians. With the aim of adding color
to the different Indian festivals, Brooke Bond announces exciting offers such as Diwali
37
Offer and Olimayamaana Vaazhkaimake Festival Offer. Brook Bond remains the best
38
4P’s of Marketing of
Brooke Bond Tea
1#
Product:-
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Lipton is not present in Indian Rural Market.
• Brooke Bond 3 Roses- Present in three variants- 3 roses regular,3 roses natural
2#
Price:-
Different products of Brooke Bond are available in 22gms to 900gms packages with a
reasonable price at each retail store which are suitable for rural consumers, since they use
3#
Place: (Distribution):-
40
Hindustan Unilever's distribution covers over 1 million retail outlets across India directly
and its products are available in over 6.3 million outlets in the country, nearly 80% of all
retail outlets in India. It estimates that two out of three Indians use its many home and
Hindustan Unilever Ltd. Has also a strong direct selling network with provides advantage
in rural areas.
4#
Promotion:-
Hindustan Unilever Ltd. relies heavily on its own company-organised media network for
41
MOHANI TEA
COMPANY PROFILE
Mohani Tea Leaves Pvt. Ltd. (MTL) is synonymous with the finest tea company in the
industry. The company was established with the resolution that its reputation must be
42
based on the quality of its products. We maintain commitment to quality. It manifests
itself in the imaging, branding and packaging of its entire product range and has helped
us achieve sales target across several states in India and reach out to millions of satisfied
customers.
The company provides excellent value added quality tea to its esteemed customers. With
a combination of outstanding service to our business associates and value for money
products to our customers, Mohani Tea Leaves Pvt. Ltd. has rapidly gained faith of a
chain of highly supportive business channel partners and satisfied customers, enabling
flavoured tea. Passionate about what we do, and how we do it, we have acquired the sort
Mohani Tea Leaves Pvt. Ltd. (MTL) is one of the India’s leading tea processing,
marketing and branding companies. Tea buying, blending, producing tea extracts and
packaged tea in various value added forms, bulk packaging, marketing, creating market
reports and forecasting trends - Mohani Tea Leaves Pvt. Ltd., prides in its ability to meet
its customer's needs to their utmost satisfaction, however diverse they may be.
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Today there are 6 major Tea Brands of Mohani Tea along with their variants in the Indian
marketplace and it is our responsibility to ensure that the requirements across all
• Mohani Blue
• Mohani Green
• Mohani Gold
• Mohani Royal
• Mohani Fresh
• Mohani Red
Available in Packing of 1 Kg., 500 gm., 250 gm., 200 gm., 100 gm., 50 gm. & 25 gm.
44
4P’s of Marketing of
Mohani Tea
1#
Product:-
45
Following products of Mohani Tea are available-
• Mohani Blue
• Mohani Green
• Mohani Gold
• Mohani Royal
• Mohani Fresh
• Mohani Red
Available in Packing of 1 Kg., 500 gm., 250 gm., 200 gm., 100 gm., 50 gm. & 25 gm.
2#
Price:-
Tea sachets of Mohani Tea are available at competitive price following other companies.
These are available in 25g sachet pricing Rs.5 onwards which is suitable for rural
markets.
3#
Place: (Distribution):-
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In today's hyper-competitive and highly global business environment, manufacturing and
trading companies must lower their operating costs and increase productivity to be
competitive. In order to achieve this, they must focus on their core competencies and
outsource the non-core activities in the supply chain. Logistics is also one such activity.
At logistics plan, we are fully geared to offer our customers a complete Supply Chain
Management Solutions.
Mohani Tea has a good network of stockiest and retailers with direct selling/marketing
team.
4#
Promotion:-
Swadeshi Mela,Kanpur
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GODREJ TEA
COMPANY PROFILE
48
Godrej Tea is product of Godrej Hershey Ltd. (GHL) operates in Food and Beverages
space. Formed in 2007, a Joint Venture (JV) between The Hershey Company (USA) and
Godrej Group, GHL operates in multiple categories such as confectionery, beverages, and
grocery items.
With GHL has four Regional Sales Offices based at Mumbai, Delhi, Chennai and
Kolkata. The organization has a strong sale force of 500 people reaching to more than a
million retail outlets through 1500 distributors spread across expanse of India.
GHL has an aggressive growth plan to evolve as the market leader in Food & Beverage
space in India. Strong product innovations, brand building, and investments in improving
people and process capabilities would form critical aspects of future growth strategy for
the organization.
Godrej Packaged Tea is made with unmatched blend of hand-picked tea leaves from
selected tea gardens. Rich in colour aroma, strength and flavour, Godrej Tea is full of
Even so, the Godrej Group recently entered the tea business with the launch
of two new tea products, Godrej Noble House and Godrej Chai House. Godrej
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Chai House is targeted at the popular and mid-premium segments, while
Nobel House is priced at Rs 55 for a 250 gm pack for its leaf varient and Rs
48 for the dust. Chai House similarly, is priced at Rs 40 for a 250 gm pack of
leaf and Rs 37 for dust. The firm is selling the tea in 2kg, 1kg, 500gm,
represents a 13% discount to the Tata Tea and Hindustan Lever Ltd.
counterparts.
tea market constitutes 44% of the total tea market in the country, up from
32.5% in 1999, and is growing at a faster pace as compared to the loose tea
market due to conversions. The Rs 9,000 crore total tea market is said to be
50
4P’s of Marketing of
Godrej Tea
1#
Product:
51
Godrej Tea has two products-
• 100gms, 250gms, 1 kg
• Standup pouches
2#
Price:
Nobel House is priced at Rs 55 for a 250 gm pack for its leaf varient and Rs 48 for the
dust. Chai House similarly, is priced at Rs 40 for a 250 gm pack of leaf and Rs 37 for
dust. The firm is selling the tea in 2kg, 1kg, 500gm, 250gm, 100gm, 50gm and 25gm
packaging at prices as low as Rs 3. Goodrej Tea also plans to introduce Re 1 packs. The
pricing on both products represents a 13% discount to the Tata Tea and Hindustan Lever
Ltd. counterparts.
52
3#
Place: (Distribution):-
Godrej Tea is utilizing 50% to 60% the existing Godrej Group distributors, while it has
Godrej is strengthening its distribution by tapping new channels like new retail outlets
partners and direct selling to push its tea and advertising its low-price units both
4#
Promotion:
The company has an introductory offer for its teas, giving away fair glow soaps and
53
SOCIETY TEA
54
An aromatic story
55
COMPANY PROFILE
Tea is a tradition in our country. As, no doubt, it is in yours as well. But slowly, surely,
people all over are being a little more conscious about the tea that they drink. Slowly but
surely, tea is being referred to as SOCIETY TEA. Surely, one more delightful indication
of the world growing smaller. And in a way, of people coming closer. Now let's raise our
cups, to this cheerful tradition and to our little world of big-tasting teas.
Mission Statement
To extend its reach, cross geographical and cultural boundaries and reaching the hearts of
the people.
56
Benefits of Society Tea
Health Benefits
Want the least expensive answer to memory problem? Drink tea, every few hours a day,
say recent findings by Unilever Research Laboratories. After much experiment with
combinations of various kinds of drugs that supposedly enhanced memory power, the
findings seek to subtly suggest that the most affordable remedy, without medical
Findings by Unilever point to a strong link between tea and an increase in mental
alertness and other mental and physical attributes. Drinking tea every few hours can help
Tea is a rich source of flavonoids. The flavonoids in tea are found to be effective in
improving blood circulation and skin health. Research in Japan and Netherlands also
indicate that tea prevents strokes and heart attacks, certain cancers, check cholesterol
Studies have shown that black tea consumption reduces the risk of heart disease and
Today researchers are finding that a steaming cup of tea can relieve more than just the
stress of a harried day. Drinking the brew has been linked with a lowered risk of
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In a study of more than 1000 Japanese men, the more green tea they drank, the lower
researchers found a link between tea consumption and a decreased risk for cancers of
digestive and urinary tract organs in women. Study on humans on tea and heart health,
revealed that drinking more than five cups of black tea had the lowest risk of severe
atherosclerosis.
58
4P’s of Marketing of
Society Tea
59
1#
Product:
2#
60
Price:
The Pricing strategy used by Society Tea is somewhere in between penetrating and
3#
Place: (Distribution)
Rural markets have the practice of fixing specific days in a week as Market Days (often
called “Haats’) when exchange of goods and services are carried out. This is another
potential low cost distribution channel available to the marketers. Also, every region
If marketing managers use these feeder towns they will easily be able to cover a large
The Manufacturer gives it to the wholesaler, wholesaler in turn gives it to the retailer and
61
4#
Promotion:
They arrested the eyes. There was something different about them. Something fresh.
Something elegant. Little wonder then, that tea-lovers felt persuaded to pick them up and
As a matter of fact, everything was designed to appeal to the senses. From the packaging
to the point-of-sales attractions. From the press advertisements to the posters. From radio
jingles to TV commercials. The jingle "Tea. Tea. Tea…………." caught on so much that
people we heard humming it, while walking into stores, waiting for trains, watching a
Even children were heard singing it. One felt a freshness, a newness, a sense of
contentment similar to the feeling one gets after each sip of Hasmukhrai & Co.'s teas.
You couldn't expect any less from them. After all, they take so much trouble to create
such exquisite blends of tea. Each of these pieces of communication was an invitation in
every sense of the word. In fact, the first ad for SOCIETY Tea said "Welcome to the
Society….". It was an invitation well accepted, for the society of tea lovers is growing
larger, day by day. We're tempted to say " Tea cheers for the design."
62
Parivar Tea Limited
Company Profile:
Why go Rural?
Little has changed in the villages of India in the past decades. Schools have been built,
but many still lack teachers and appropriate teaching methods. There are phone lines in
many villages, but getting a dial tone is still a challenge. Electricity supply is at best
India’s villages are dependent on agriculture for much of their sustenance. Drought is a
common occurrence across much of India. As a result, villagers, for the most part, remain
63
a poor lot - the per capita income of India’s villages is perhaps no more than Rs 12-
18,000 (USD 240-360, USD1 = INR50) per annum, as compared to the national average
Perhaps, most importantly, the opportunities available to villagers are not dramatically
different from what they were many years ago. Villages in India are where you live if you
And yet, India is in its villages. 70% of Indians live there. Even as one India races ahead
with optimism towards the future, there is another India which seems to be stuck in the
past. If India as a nation has to progress, there is little doubt that India’s villages too have
to progress.
64
4P’s of Marketing of
Parivar Tea
65
1#
Product:
• General Tea
• Herbal Tea
2#
Price:
Prices are set according to the rural market / village. Prices are set after considering
whether it is a general tea or a herbal tea. Prices will be a bit high for herbal tea, as It
contains herbs which are costlier. Also as per the packages of tea.
3#
Place:
The distribution pattern of our product will be different form the usual pattern. The first
this is that the company will have a company outlet in each and every village which will
eliminate the problem releting with middlemen. Along with this tea pouches will be
66
4#
Promotion:
Initially we will be giving free sampling for the first user, thereby promoting the brand
Free tea at festivals and other occasion and also at our outlets.
67
S T P of Parivar Tea Limited
All variables are in some way or the other related to buyers behavior, which vary often
there geographic, demographics and psychographic profiles, and there buying behavior.
Buyer behavior involves many elements like purchasing occasion benefits, user status,
rate of product usage, loyalty rate, and attitude towards the product.
2. Targeting: -
The company targets the whole family ie anyone in the family can drink the tea. Also
special for farmers as it also contains herbs which will refresh farmers.
3. Positioning:-
A Marketer can position his product in various ways to develop or enhance it’s value to
• Price Quality
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• Use or Application
• Product User
• Product Class
• Culture Symbols
• Competitors
Your company positions its products as a Quality product at fare prices and consumer
1. One very fine example can be quoted of Escorts where they focused on
deeper penetration. They did not rely on T.V or press advertisements rather
like fares, melas etc. Looking at the ‘kuchha’ roads of village they positioned their
bike as tough vehicle. Their advertisements showed Dharmendra riding Escort with
the punch line ‘Jandar Sawari, Shandar Sawari’. Thus, they achieved whopping sales
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2. HLL started ‘Operation Bharat’ to tap the rural markets. Under this
operation it passed out low–priced sample packets of its toothpaste, fairness cream,
3. ITC is setting up e-Choupals which offers the farmers all the information,
products and services they need to enhance farm productivity, improve farm-gate
price realization and cut transaction costs. Farmers can access latest local and global
village itself through this web portal - all in Hindi. It also facilitates supply of high
rural marketing. It moves from village to village and fills cylinders on the spot for the
introduced a smaller size cylinder to reduce both the initial deposit cost as well as the
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CHAPTER 4
FINDINGS &
RECOMMENDATIONS
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FINDINGS
2. Tata Tea which has a brand called Agni in the popular economy
segment.
Sehatmand.
going rural.
5. The main target group is all family members (who drinks tea) of
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8. Companies are following the traditional methods of promotion like
11. Companies are also promoting and selling their Tea products through
Direct Selling/Marketing.
12. Some companies have their own distribution network.e.g. HUL has its
13. Different rural consumer groups of same area have different tests so
companies are targeting them with good product line and variants.
14. Companies sale their different variants tea products in unique packets
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Conclusion
Thus looking at the challenges and the opportunities which rural markets offer to the
marketers it can be said that the future is very promising for those who can understand
the dynamics of rural markets and exploit them to their best advantage. A radical change
in attitudes of marketers towards the vibrant and burgeoning rural markets is called for,
so they can successfully impress on the 230 million rural consumers spread over
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