MARKETING PLAN OF

ROYAL TEA

By:-Debabrata Mukherjee
ABOUT THE PRODUCT
Introducing a product in the Indian Tea market known as Royal Tea.
Royal Tea is an innovative product which is herbal tea and serve as body cleanser.
Royal Tea is a natural, powerful, and safe method for the disposal of toxic and waste
from the body.
It promotes the longevity of many organs, systems and metabolic processes
which are dependent on your digestive system.
USES OF ROYAL TEA AND ITS BENIFITS
Improves overall digestion
Strengthens the immune system
Reduces mucus congestion
Makes the skin more soothing and flexible
Provides an overall boost to your body system.
Helps in cleansing and detoxifying the blood, liver ,kidneys and lymph.
Helps to eliminate parasites, viruses and fungus on a daily basis
INGREDIENTS OF ROYAL TEA
Persimmon leaves
Malva leaves
Holy thistle
Marshmallow leaves.
PERSIMMON LEAVES
It has been extensively used as a tea in
oriental countries.
Good source of vitamin A & C
Several flavonoids from this leaf is having
antihypertensive and anti-carcinogenic
actions.
Malva Leaf
Colon cleansing properties
Weight loss supplement
Treatment for the preservation of fluids in the body, avoiding frequent thirst
and diarrhea
HOLY (BLESSED) THISTLE
Commonly used for the treatment of liver
problems
Holy thistle is has the properties to purify
and circulate the blood effectively.
MARSHMALLOW LEAF
Often helpful for relief of coughs and
irritated throats.
Topically, marshmallow is used to soothe
and soften irritated skin.
Marshmallow leaf is totally non-toxic.
SITUATION ANALYSIS
Market summary
History of tea
The tea was discovered back in 2700BC ,accidentally by Emperor Shen Nung.
In England the first tea used was imported from China in the 19th century
Today, UK is the largest importer of tea.
TEA MANUFACTURING PROCESS
The tea is divided in three types:
Black tea
It looks light or dark in appearance, color varying from orange to brown and usually have a
strong taste.
Green tea
Green teas are teas which have been picked and firstly rolled before firing. This process stops the
veins on the leaves from breaking and preventing the fermentation process by which the leaf does
not turn brown.
Oolong tea
Oolong teas are semi-green teas, produced by partial fermenting process by stopping the
fermentation process just when the leaves start to turn brown.
Types of Tea
The different tastes of tea
Original tea
Medicinal teas
Organic teas (Herbal teas)
Hot or cold teas
Perfumed teas
Seasoning teas
Decaffeinated teas
Exotic teas.
INDIAN TEA MARKET DEMOGRAPHICS
India drinks the largest amount of tea in the world, which is 14% of global retail
volume sales.
Geographically, tea is mainly consumed in the east, west and north of India
Common with a broad consumer age groups.
Black standard tea creates nearly 80% of value sales, although green tea is seeing
its popularity rise
It ranks 7th in value terms, due to low unit prices.
India: the largest tea consumer in the world
INDIAN TEA MARKET
In India the tea industry is about 170 years old.

Tea plantations are mainly located in the areas of North-eastern and southern states.

Major tea growing areas are in Assam, west Bengal, Tamil Nadu and Kerala.

Tea (chai) is reflected as the cheapest beverage amongst the beverages
available in India.

YEAR Domestic Consumption (M.Kgs) Per Capita Consumption (Grammes Per Head)
1951 73 202
1961 140 319
1971 221 403
1981 360 527
1991 511 600
1992 524 606
1993 537 606
1994 550 608
1995 562 610
1996 580 617
1997 597 625
1998 615 633
1999 633 642
2000 653 652
2001 673 654
2002 693 663
2003 714 672
2004 735 681
2005 757 691
2006 771 693
2007 786 696
2008 802 701
ESTIMATED INTERNAL CONSUMPTION AND PER CAPITA CONSUMPTION OF TEA IN INDIA
Domestic consumption
0
500
1000
DOMESTIC CONSUMPTION
Domestic consumption
We can see a gradual increase in consumption of tea year over year which is a
good indication for the growth of our company.
0
200
400
600
800
1000
1200
2009-10 2010-11 2011-12
Production(M.
Kgs.)
Consumption
Export
Year
Production(
M. Kgs.) Consumption Export
2009-10 991.18 812.38 178.8
2010-11 966.73 715.63 251.1
2011-12 1095.46 789.46 306
PRODUCTION, CUNSUMPTION & EXPORT
High consumption rate in India
Almost 75% of tea produced is consumed in India.
Demand of tea is high.
0
20
40
60
80
100
120
140
2010
2011
2010 2011
January 94.83 75.43
March 78.24 97.29
June 102.52 110.16
September 113.84 110.08
November 115.13 104.82
COMPARISON OF TEA PRICES IN INDIA
Prices differ from month to month.
The price of tea fluctuates a lot irrelative of the month or the year of
purchase of raw materials
Should put more emphasis on buying the raw material between January to
March when there is a high possibility of getting the raw materials in a cheaper rate.
MARKET TRENDS AND GROWTHS
82
2
9
6
1

CTC Tea
Loose Tea
Tea Bags
Speciality Tea
Dust Tea
High demand for CTC tea
Decent demand for Tea bags and specialty tea for which the company also needs
to concentrate.
24.53
6.76
5.44
17.61
7.5
7.21
8.43
3.54
2.19 2.12
CTC Tea Market Share
Tata Tea
Society Tea
Duncans Double Diamond
Tea
Brooke Bond Red Label Tea
Taj Mahal Tea
Wagh Bakri Tea
Lipton Tea
Tetley Tea
Marvel Tea
Pataka Tea
Tata tea and Red label tea covers around
45% of the tea market share.
Strength
Local company will be favored by the Indians.
Benefits of product are different and not offered by any other product/company.
Insider knowledge of India.
Uniqueness of the product (usp.)
SWOT ANALYSIS
The product is not an established product in the market place
Brand name is not famous in the market.
Totally dependent on the supply of the high quality tea.
WEAKNESS

Supply should remain constant over next 2-4 years.
Demand should be there with the supply of the product.
Auction tea prices will stabilize.
Consumers will live a more healthy lifestyle.
Consumers will prefer good quality products which offers true value.
New modern technology in the tea industry will be able to increase
productivity and quality.
Growth in market share due to the promotional activities of the product as a healthy
attributes of tea.
OPPORTUNITIES
Limited amount of raw materials
Unstable high quality tea supply
Increase in price of high quality tea
Tea market is very competitive and elastic
Strong local competition
Loyal customers to their brand
Hindustan Uniliver & Tata tea is having more than 50% of tea market
THREATS
THE LOGO
MARKET NEEDS
The India is the worlds second most populated country contributing 17.23% of worlds
population
Health related issues in India (fast food or junk food )
Awareness in the people
To offer consumer best health advantage through royal tea.
To establish as market leader in herbal tea industry
To enable royal tea to satisfy, fulfill the consumers personality & lifestyle
To increase royal teas popularity as an icon in herbal tea product.
MARKETING OBJECTIVE
Marketing
Action Responsibility
Control
Timing
Costs
Strategy System INR
Marketing Advertisement on TV, Marketing Monthly
Whole year 500,000
communication internet, radio, Managers sales
campaign newspapers, figures

campaign ad on the

street
Marketing Set up special stand Marketing Count Nov 2014
20,000
promotion for personal selling Managers, Sales customers Feb-15
campaign

managers, and


Counter staff monitor


Supervisors sales per

moth

organize promotional Marketing Count
Feb-15 50,000

event in Mumbai Managers, Participants

Supervisors,


Hostesses


Promotional offers e.g. Marketing Produced Nov 2014
10,000

free gifts with Managers, output Mar-15

purchase Production figures


Managers


Organize sweepstake Marketing

Jan 2015
5,000
Weekend trip to Managers Feb-15
London

Loyalty scheme Point Marketing Customers
Whole year 5,000

system Managers, taking use

Customer Service of point
system

Distribution of free Marketing Count First week
5,000

samples to customers Managers, Customers of Nov 2014
at cash point Cashiers,

Supervisors

PLAN OF ACTION
8
6 4
4
4
4
4
4
3
3
56
Tea advertiser's Channel preference
Aaj Tak
Sab TV
DD Mumbai
star Gold
Sahara UP
Star Plus
Sahara UP
NDTV India
Alpha Marathi
ETC Punjabi
Others
Aaj Tak which is a news channel and Sab TV which is a family entertainer channel receives
the highest number of tea advertisements.4

The Brand Positioning Bull`s Eye
HQ

Launch
Distributors ASM
Mumbai
Nov-14
6 1
Delhi
Nov-14
6 1
Pune
Jan-15
2
Bangalore
Jan-15
4 1
Hyderabad
Jan-15
4
Ahmedabad
Jan-15
2
Jaipur
Apr-15
2
Jodhpur
Apr-15
1
Chandigarh
Apr-15
2
Ludhiana
Apr-15
1
Jalandhar
Apr-15
1
Amritsar
Apr-15
1
Rajkot
May-15
1
Chennai
Aug-15
6
Total 39 3
FINANCIAL PRJECTIONS
Cost price 1000
Selling Price 1500
Cost Price=Price of raw materials+Salary+Marketing Cost
=Rs 150+Rs 150+Rs 700
=Rs 1000
Salary for 3 ASM/Month=3(24,554)=Rs 73662
Salary for 3 ASM/Year =Rs 73662*12
= Rs 880350
Cost incurred for 1 unit = 880350/5869
= Rs 150

Total marketing expense= Rs 41,07,950
Marketing cost for 1 unit=41,07,950/5869
= Rs 700

CALCULATIONS
MARKETING VARIABLE EXPENSES RATE QUANTITY AMOUNT (in Rs)
DANGLERS 3.5 5700 19,950
POSTERS 2.5 3800 9,500
TV ADS 10000 200 20,00,000
PRESS ADS 10000 200 20,00,000
GIFTS 15 1900 28,500
T SHIRTS+Caps 100 50 5,000
Promotion (Mall, Multiplex) 7500 6 Days 45,000
TOTAL MARKETING EXPENSE 41,07,950
COST OF GOODS (UNIT PRICE= RS 300) 17,60,550
TOTAL EXPENSE FOR BREAKEVEN 58,68,500
UNITS TO BE SOLD FOR BREAK EVEN 5869
BREAK EVEN POINT ANALYSIS

Healthy, Cleansing
Tea
Locally available
Good taste
Moderate price
Healthy product
Unique taste
Herbal Product Best quality tea
Available In
different packs
Quality
product
Reasonable
price
Royal
logo
Greenish Yellow
in color
Healthy
Strong rich
taste
Pleasant smell