Aaesha Salian

Dipti Bharwada

Jayesh Mankame

Jini varghese

Rani Pansare

Sagar Pitale

Vision:- Build long lasting relationships through trust by maintaining the Quality. Be result oriented. Be progressive and lead from the front.  Change with the times. Be socially responsible.  Return to the society a share of the gains from

commercial enterprise.

Mission Statement:-Serving the Taste of trust

Objectives:- Main objective is to become a national player. Wagh Bakri Tea Lounge objective is to offer consumers tea in a style of

their own and enjoy drinking with their favorite choice of snacks. 

Large Number of Buyers Buying the Product

Bargaining Power of Buyers is extremely High as many options available

Not Much product Differentiation in terms of taste and also Low switching Cost.

Buyers Purchase large Proportion of Industry Total Output

Bargaining Power of Buyers

Bargaining Power of Suppliers

Large Number of Producers of tea in India

Suppliers product create Low switching Cost.

Threat of Substitute ProductsSubstitutes Like coffee, juices, Cold Drinks, etc.

Existing Consumers are Loyal

Substitute Product price may be lower and price war is unavoidable

Substitute Product Quality and Performance may be better

Threat of New entrantsEncouraging Government Policies Like Food and Beverage Act.

Focus is now on the existing Markets but if Focus changes for tapping the international markets than this may affect high market share in Gujarat as national players like HCL and Tata focusing towards these markets.

Industry rivalryApprox 700 tea companies in India having intense rivalry among them

Market dominated by large unorganized players.

Low switching Costs.

Slow Industrial growth

StrengthsThe company has an advantage of its marketing research. The company has the quality consistency in their products and they are very keen about the quality of their product. The company has a variety of quality product according to the taste of consumers. The company has a great advantage of their goodwill in the market.

WeaknessThough the company has third position in the market, yet they have not captured the all over world market. One of the weaknesses of the company is ‘oolong tea’, it is mainly exported but it is not sold in domestic market even if may captured a good market share.It is tuff to sell tea in those regions were mainly people are non-tea drinkers.

OpportunitiesTo be a Market Leader nationally.Market Opportunity in Mumbai and to capture the Mumbai Local market.Launch of Exclusive tea bars ( Opened in Mumbai and now at other places.)Export Potential in some major Countries.To come up with New flavors of tea apart from the existing FlavorsNew Product DevelopmentExport Potential.Mergers and Acquisitions.

Rising inflation, which reduces disposable income of consumersThreat from loose tea Market Shares.Competition from MNCGlobal CompetitionLow Barriers.Globalization.The company faces competitions by HUL who has 10% growth in market. The company faces severe competition with regional players in some regions.

Threats

Tea Buying from the Tea plantations in Assam and Darjeeling.

Tea blending ( Mixing of Tea and making it in a powder form to make different blends of tea)

Tea tasting by the top management

Tea Packaging in Pet Jars, packets and Staple Free bags

Tea Marketing ( Advertisements, Print Ads, Radio, TV)

Tea Selling ( Online, Retail Stores, distributors, etc)

Retail Outlets and Tea Lounge.

LOW-COST LEADERSHIP:-As name symbolizes Chai for all segments,

Nav-chetan for lower segment people Mili tea for mass market Darjeeling tea for the Rich People.

BROAD DIFFERENTIATION:- Tea Bags- Staple Free bags ( Only company in india having staple

free machines) Consistent Quality and quality control for all the kinds of tea.

FOCUS STRATEGY BASED ON LOW COST:- Mili tea –Good Quality at reasonable price.

VERTICAL INTEGRATION STRATEGIES:- Backward- By purchasing Tea Plantations for increasing the

quality of products. Forward- Tea Lounge by giving wet sampling.

Entering new business:- Tea Lounge Tea Plantations

Related Diversification:- Introduction of Iced tea with different flavors. Introduction of Coffee in the Future

Tea Blending Retailing

Iced Tea Tetra PacksOrganic TeaIntroduction of Coffee

Own Tea Plantations for quality controlTea Lounge

Entering into new marketsin IndiaEnter into Global Markets

MARKETS

PRODUCTSN

EW

PR

ES

EN

T

PRESENT NEW

Wagh Bakri Tea

Mili Tea

Market Share

High Low

MARKET GROWTH

High

Low

D’ling TeaOrganic Tea

Tea Bags

BCG Matrix

Competitive Strength Measure Weight Strength Weighted

Relative market share 0.20 5 1

Technology and innovation capabilities 0.25 7 1.75

Brand name reputation/image 0.20 6 1.2

Quality Control 0.20 7 1.4

Price Competencies 0.10 4 0.4

Degree of profitability relative to competitors 0.05 3 0.15

Sum of assigned weights 1.00  

Competitive strength rating     5.9