TEA TIME

Increasing the
popularity of Tea

Group 8 [LC-07]
Anurag Gupta GMPELC07006
Hariyansh Aggarwal GMPELC07016
KVR Kishore Babu GMPELC07019
Prasanna Shetti GMPELC07028
Rahul Shukla GMPELC07030
Rajendra Vyawahare GMPELC07031
Samit Katiyar GMPELC07038
ABSTRACT
India has always been a tea-drinking nation, so it is surprising that no tea shop
chains exist in the country, compared to the coffee cafes. However, in a welcome
sign for those addicted to tea, some high-quality tea bars have begun to sprout in
various cities where they can enjoy a cup of tea in an air-conditioned cafe-like setup.
So what does the tea leave tell us about their future prospects?

“There are not many tea bars in the country at present. Many open up now and
then, but most of them do not have proper resources and shut down soon. The kind
of passion entrepreneurs should have towards running a tea bar is missing and that
is actually the reason why we don’t see a lot of them coming up in India.
There was a time when Indians used to think drinking coffee was cool and
sophisticated. People
may be tea-drinkers at home, but when they went out with others, they preferred
ordering coffee
instead because of the status attached to the beverage. However, now the trend is
changing
“The Indian youth is getting more confident and they don’t mind ordering the kind
of beverage they want to have. In fact, drinking green tea, organic tea or any other
brew of tea has become a lot more trendy nowadays,”

Our idea is to open a tea bar as if its such a place where you not only get tea but
also a nice sophisticated ambience in which to relax and spend some time. It usually
offers a good selection of snacks to go with the tea as well as concepts like the
hookah.

INTRODUCTION

<Rahul/Rajendra> Please try to fill in this part. I cannot able to figure out what to
write here. Everything is covered in Abstract and background.

BACKGROUND

Tea has been a part of Indian culture for nearly 200 years. It originates from East
Asia and according to legend tea was first consumed in China over 5000 years ago.
Tea was first introduced into India by the British, in an attempt to break the Chinese
monopoly on tea.
Nothing is more Indian than a nice cup of Tea, but in recent years the emergence of
high street coffee shops has meant declines in sales for tea. Customers have favored
less healthy beverages such as Coffee and carbonated sugar drinks. Market Trends
in Indian Lifestyles are suggesting consumers are becoming more health conscious
when choosing food and drink. Tea has neither the image nor brand awareness like
high street coffee shops or large soft drinks companies. The purpose of this project
is to look at how Tea could be made more popular again through applied design and
marketing theory. The final design could be a new brand of Tea or a Tea making
machine or even a device for improving or enhancing the method of making Tea.
India was the top producer of tea for nearly a century, but was displaced by China
as the top tea producer in the 21st century. Indian tea companies have acquired a
number of iconic foreign tea enterprises including British
brands Tetley and Typhoo. While India is the largest consumer of tea worldwide, the
per-capita consumption of tea in India remains a modest 750 grams per person
every year.

METHODOLOGY AND RESEARCH

Primary data was collected with the help of a survey among the individuals. One
questionnaire was designed apart from that the personal interview approach was
selected to ensure that respondents could be individually approached and data could
be collected speedily.
The questionnaire sought responses from individuals to determine their
 Existing consumption and purchase behavior for tea & coffee,
 The factors influencing their purchase.

Copy of the questionnaire and survey results are attached in appendix.

Sample selection
It was decided to include respondents from two different cosmopolitan cities i.e.
Delhi and Bangalore as respondents here were fairly educated and well to do. The
segments of industry and business chosen for the survey were those that were
expected to be consuming tea & coffee in large quantities such as public and private
procurement agencies (including finance/banking, IT/BPO, education and
hospitality). Individuals targeted through the survey were urban consumers
belonging to different age groups the survey was conducted over seven Days both in
Delhi and Bangalore.
Sample size is of 148.

Data Analysis

The data was tabulated and cleaned. The analysis focused only on obtaining
frequencies and descriptive statistics. Pivot tables were used to explore the
relationships between the observation variables. The sample was selected in a way
to represent different gender, age, education, occupation and family income
categories.

Gender: Out of a total of 148 individuals surveyed,

21 were females and 128 males.
Gender
21 Female

127 Male
Geographical Area: The respondents were almost
equally divided between Bangalore and Delhi.

Geographical Area
Bangalore
New Delhi

Consumption amongst age groups: The consumption of tea was found to vary
amongst different
age groups.
60
The largest 50
consumers of tea 40 19 - 25
30
and coffee were 20 26 - 35
found in the age 10
0 36 - 45
group of 26-45
years. Their More than Never Once or Once a day Once or Rarely 46 and above
once a day twice a twice a
consumption month week
varied from once
a day to a maximum of four cups per day. The survey also revealed that the
consumption of the beverages declined with age. More people in the age group of
45-55 years drank tea outside home.

Consumption and Occupation: The occupations were categorized into the

following—students, housewife,
private job, business. The findings 80
suggest that consumption of tea & 60 Pvt. Job
coffee was the highest amongst 40 Business
those who worked in the private 20
sector and students. Housewife
0
19 - 25 26 - 35 36 - 45 46 and Student
above

Where do people usually drink Tea.

Per the occupations, it has been 60 49 56

categorized where do people 40 24 Pvt. Job
usually drink tea. Most of the 20 4 4 Business
private sector employees drink tea
0 Housewife
at work as well as at home.
Student
 What maximum one can pay for a cup of Tea:

Most of the
customers are
Atmost one can pay for a cup of Tea
comfortable in paying 100
Rs10-20 for each cup 50
of coffee. But most of Total
the people are ready 0
Rs 10-20 Rs 20-40 Rs 40-60 Rs 60-80 Rs 80 and
to pay upto Rs50 for
above
their favorite drink,
so we are expecting if we provide good ambience and recreating experience to the
tea drinkers then we can attract customers with Tea upto Rs 40-50 as well.

Atmost one can pay for his/her favorite drink

80
60
40
20
0 Total
Between Rs 101 to 150 Between Rs 50 to 100 Depends on the ambiance Upto Rs 50
and place where I am
drinking it.

The Financial Plan for Tea Store

The financial plan section includes start-up costs, cash flow projections, sales and expenses
estimates, and financial needs. In this section we will try to list our start-up needs, including
investments required and bank loans.

We will have a cash flow projections with sales and expense projections for 1-3 years. Also,
we will have a cash flow projection by the month for the first year.

Building

Initially there is no need to go in for buying a piece of land. Instead we will take a readymade shop of around
500 sq.mtrs. may be bought.

Item Price
Monthly budget for rent Rs 50,000/-
Lease for 1 year Rs 6,00,000/-
Machinery

Item Qty. Price

Induction Plates. 4 Rs 50,000/-
Required Licenses 1 Rs 50,000/-
Others Rs 20,000/-

Miscellaneous Assets

Item Price
Furniture Rs 1,00,000/-
Creating a Menu Rs 10,000/-
Magazines Rs 1,000/-(PM)
Advertizement Rs 50,000/-

Utilities
Item Price(Per month)
Electricity Rs 10,000/-
Internet Rs 2,500/-

Raw Materials
Item Price(Per month)
Tea items Rs 20,000/-
Other expenses(Teacups, Rs 5,000/-
Napkins, Stirrers, cleaning
supplies, tasting cups)

Manpower Requirements

Perticulars Nos. Salary (Per month) Total Monthly Salary

Manager 1 Rs 10,000/- Rs 10,000/-
Staff 4 Rs 5,000/- Rs 20,000/-
Cleaner 1 Rs 4,000/- Rs 4,000/-
Total Rs 34,000/-
Summary

Long term assets Price

Machines cost Rs 50,000/-
Furniture Cost Rs 1,00,000/-
Creating a menu Rs 10,000/-
Required licenses Rs 50,000/-
Short Term Assets
Tea items Rs 20,000/-
Electricity Rs 10,000/-
Internet Rs 2,500/-
Magazines Rs 1,000/-(PM)

<Samit/Anurag/Prasanna> please try to complete this.

GOALS

The goal of this project is to create a healthier option beverage for the consumer.
This goal is aimed to be achieved by:
 Recreating the experience of tea and embrace cultural differences of
consuming it.
 Opening this tea store at the appropriate location in order to increase the
foot fall.
COMPETITORS
There are no obvious direct competitors of Tea Time; but there are substitutes that
consumers can alternatively purchase.

 Indirect

Café Coffee Day is the leading brand in the hot beverages

market. Brand image and recognition is high amongst
consumers.

Costa is a UK brand which operates under Whitbread PLC, this

gives them lots of outlets as a subsidiary.

McDonalds are the cheap alternative on the high street when it

comes to hot Beverages.

 Direct

Wagh Bakri Tea Group is a Premium Tea Company, having

presence in tea business since 1892. Today it is the 3rd largest
packaged tea company in India with a turnover of over Rs. 700
Cr. and over 30 million Kgs of tea distribution

Tetley is the most popular tea brand in and out of the home in
the UK. Recently lost their supplying to McDonalds to PG Tips.
Discussion
As per the personal interview during the survey with the people we have come up
with few observations.

If we observe our family patters of drinking tea and coffee, it looks like in most of the
families frequency of drinking tea is far ahead then that of drinking coffee.
Almost everyone in India has developed the real coffee taste by drinking coffee at
CCD, Barista and at many such cafés. So when we compare the quality of coffee,
we do it between the different cafés available in the market.

But on the other hand in the case of Tea, everybody has developed there taste buds
with the kind of tea one is drinking at his/ her home since childhood. So when we
compare the quality of Tea available in the Tea stores, we tend to compare it with
the kind of Tea one has been drinking at home instead of between the Tea stores.

Moreover, if we look from the Tea store’s perspective every second person has
developed his/her taste buds differently as per the kind of Tea they are preparing at
their home i.e. the kind of equation(combination of Milk+ Water+ Tea+ Sugar) one is
using while preparing the tea.
So, to come up to the expectation of so many different people with different taste is
not an easy task.
May be this is one of the reason that most of the Tea stores could not able to sustain
for long and forced to shut down.

Suggestions

We have two options to cope up with the problem we have discussed above.

1) Somehow with the use of some technology or some great idea allow
customers to prepare tea on their own on their table in the Tea store.

2) Give too many options of Tea to the customers so that every customer should
land up with at least one kind of a tea, which suits to his/her taste.
Conclusion
The survey revealed that most consumers drank both tea & coffee but men
consumed more tea as compared to women. The largest consumers of tea were
found in the age group of 26-45 years, but the consumption of both the beverages
declined with age. Consumption of tea & coffee was the highest amongst those who
worked in the private sector and students. The consumption of tea was higher as
compared to consumption of coffee even amongst consumers reporting high family
incomes.

The five most important factors influencing the purchase of a brand for tea were
taste, quality, flavour, and impact on health. The survey revealed that family was the
most important source of information on brands of tea & coffee, followed by
television and print media. After these, came the advertisements and the more
technical and reliable sources like comparative test reports, and research and
development reports.

As per the survey result Tea store will going to open suburb area where most of the
pvt. Organizations are located at one single place.

<Kishore babu> Please try to modify the conclusion and review the whole doc.
Please let us know if something needs to be amended in this.

References and Appendix

1) Cover story – Tea by Food service India Edition(March- April 2013)

2) Survey Result.

Survey_TeaTime.xls
x