Wagh bakri milap patel

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Tea Market in India Page 1

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marketing strategy og wagh bakri tea

Transcript of Wagh bakri milap patel

Page 1: Wagh bakri milap patel

Tea Market in India

Hot drinks manufacturers in India are faced with a highly mature market with

long established traditions and product preferences among consumers. In

total volume sales terms, India was the largest market for tea in the world and

the fifth largest market for other hot drinks in 2010. As tea and coffee already

have a very high penetration in India, companies have sought to increase their

market share by developing innovative distribution strategies to reach new

consumers. For packaged hot drinks players, the consumers of unpackaged

tea and coffee in rural areas represent a potential new consumer base .While

conventional distribution channels such as kiranas (small grocery retailers)

and supermarkets account for over 90% of the sales of tea and coffee,

companies continue to experiment with new channels to expand their

consumer base into less accessible rural areas and consumer groups

consisting of affluent youth. With urban markets approaching saturation,

national companies increasingly seek to expand their distribution footprint to

rural regions while regional play ersare making an effort to enter neighboring

regions.

Waghbakri Tea Group

Waghbakri Company is a family owned tea business amongst conglomerates

and mega corps that tower the International business scenario all over the

world.  Waghbakri house is one of the largest tea producers and sellers in

India today. The group is making leading strides in tea exports and ships in

bulk and retail consumer packing to countries all over the world. Its

outstanding performance is credited to excellence in management and a spirit

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that results into a quantum jump in annual growth in face of stifling

competition and cut throat scenario that dominates the tea industry today.1

Waghbakri Tea House – Global Presence

With blessings from Mahatma Gandhi, Sir Narandas Desai set foot on Indian

soil in the year 1892 after gaining experience in tea business as an owner of

tea garden in South Africa which then was mired in racial misgivings that

made the continuity of his business a futile endeavor there. 

He started Waghbakri Tea Company in the yr 1892, which then was

represented by small company retail shop at kalupur Ahmadabad, Gujarat.

Since then the growth of the endeavor has been phenomenal and presently

Waghbakri Tea Company has an employee base of more than 400 professional

managers and skilled personals with ever increasing space for more, to tend

to the expanding group enterprise in India and abroad. 

Waghbakri tea house markets various tea brands in loose leaf cartons and tea

bags for tea lovers all over the globe – the finest certified black teas from

Darjeeling tea estates, Assam and Nilgiri. The company sells organic black and

green tea for the health conscious.

The production base is at Dholka ( Dist . Ahmedabad) in a impressive spread

of 14 acres with a modern manufacturing plant and state of art production

and packaging unit that conforms to International norms in producing,

blending and packaging of the finest tea leaf for worldwide consumption.

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Achievements

Year 1892, on call from Mahatma Gandhi, Sir Narandas Desai left India for

South Africa. He procured a tea estate in the year 1915. But facing racial

discrimination in South Africa he left that country and came back to India with

a certificate of merit from The Mahatma Gandhi and few belongings, and years

of experience as tea-estate owner to count on.

Year 1919, Sir Narandas established tea business in Ahmedabad. The firm

was named The Gujarat Tea Depot Co. with first retail outlet for wholesale

teas at Gandhi Road, Ahmedabad, India (erstwhile Richie Road).

Year 1925, Wagh Bakri brand was born now a favorite of millions of tea

lovers.

Year 1944, the Good Morning brand of premium blended tea leaf was

introduced for tea connoisseurs, a blend rich in full bodied taste and aroma.

The tea cuppers discovered it to be the right brand to begin their mornings

fresh with a cup that cheers.

Year 1976, encouraged by the success “Wagh Bakri” tea house enters into

large scale distribution of Good Morning.

Year 1980, the first to recognize the need for packaged teas, the group

established Gujarat Tea Processors & Packers Limited to meet a growing

demand for quality blends of branded teas and with the aim of selling quality

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tea products to the tea lovers in India and globally.

Year 1986, the Standard Tea Processing Co. Limited was established with a

view to avail the benefits of mechanized operations and meet with demands

for bulk teas. The Company also started an office in Kolkata to oversee and

check the purchase of tea at auction centres there.

Year 1989,  D'ling Brand a pure certified premium Darjeeling Tea was

launched especially for tea connoisseurs. Darjeeling tea is popular for its

smooth mellow flavor and overpowering aroma.

Year 1991 the increased demand of packaged tea by professionals in the

corporate segment initiated the launch of "Tea Quik" tea bags. The utility of

tea bag is immense. It is travel, worthy, quick to make at home hygienically.

Year 1994, For the larger audience "MILI” tea" was launched. Being an

affordable quality tea in carton and jar, it finds place in the hearts of tea lovers

all over the world.

Year 1998, the Wagh Bakri brand launched in Rajasthan, India.

Wagh Bakri Ahmedabad Management Association’s [AMA] Centre for

Governance established.

Year 1999, the Wagh Bakri brand enters the central Indian state of Madhya

Pradesh, India.

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Year 2003, Premium brand of the Company “Wagh Bakri” secured its place

among top 100 popular brands in India as per survey undertaken by AC.

Nielsen’s in Brand Equity’s survey of India’s biggest FMCG Brands – 2002.

Year 2004, Company received ISO : 9001 : 2000 and HACCP Certification.

Year 2006, With a view to synergize efforts and operations Standard Tea

Processing Co. Ltd. merged into Gujarat Tea Processors & Packers Ltd.

Year 2007, Company started office at Mumbai (India) to expand its

operations. Company also shifted its Kolkata office with upgraded

infrastructure and facilities.

Company entered into Maharashtra (India) state by launching “Wagh Bakri”

Perfect Tea packets under different pack sizes.

Year 2008, Company imported Double Chamber Tea Bag Machine viz. IMA C

27 from Italy having capacity of manufacturing 250 bags per minute.

Company received EN ISO 22000:2005 Certification for Company’s Food

Safety Management System for Blending and Packaging of Tea.

Company acquired the land admeasuring 25,748 sq.meters adjoining to

existing Dholka factory and also 12,595 sq. meters at village Tundel, Taluka

Nadiad, Gujarat for the purpose of

expansion / setting up of Tea Blending factory and storage facilities.

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Opened a Wagh Bakri Tea Lounge at Ville Parle [East], Mumbai, which serves

Ice Tea and all premium varieties of Tea manufactured / marketed by Wagh

Bakri Tea Group along with snacks.

Year 2009, Company expanded its presence in the rural sections of

Maharasthra like Kolhapur and Sangli. The company also launched itself in

Delhi and NCR regions. The group also participate in Gulf Food held at World

Trade Centre, Dubai. 2

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PRODUCTS AND SERVICES

Products :

Delightful Varieties of Tea.

WaghBakri offers a basket full of brands for different need groups and price

segments. According to wagh bakri TG modify and develop a new product

range .let’s look at the journey of wagh bakri MILI TEA to DARJEELING.

Mili is an ideal brand for those who otherwise prefer loose tea.  Mili offers

good taste & strength with consistent quality and hygienic packaging

alongwith great pricing

value.  Mili is a blend of

good Assam teas and

comes in Leaf and Dust

form.  It comes in Leaf,

Dust & Fanning Varients.

It comes in an attractive

bandhani pack design. 

SKU : 1Kg Pack and Pet jars of 500 gms and 250 gms & small packs.

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WAGH BAKRI PREMIUM STAPLE FREE TEA BAGS

Wagh Bakri Premium Tea is an unmistakable

combination of artfully blended tea and break

through packaging. The Delicious flavour and

aroma of this Hand-Picked Premium Tea,

Which is rich in Antioxidants, is packed in

innovative double chamber Staple Free Tea

Bags. Thus, aprat from ensuring health

benefits, It also promises safety.

Wagh Bakri Masala Chai Tea Bags

An Aromatic Delight With a Difference

Now get more out of your regular cup of tea,

with the WaghBakri Masala Chai. A fine

International blend of the rich Assam tea and

the spices, WaghBakri Masala Chai, in every

sip, is truly an enticing experience.

The hand plucked leaves are blended with

exotic spices, which enhances the flavour of

the tea, and the tea tastes deliciously different.

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No wondar then, the refreshing aroma of

WaghBakri Masala Chai fills up your senses

like never before, cup after cup.

Good Morning Tea Bags (Assam)

Good Morning Tea Bags make for the 'fast and

fashionable' way of drinking fine tea. The

Assam blend is available in a pack of 100 tea

bags. These tea bags have a double chamber

for faster infusion of tea, and come sealed in

an envelope to keep the tea fresh and

flavourful.

Good Morning Tea Bags (Darjeeling)

Good Morning Tea Bags make for the 'fast and

fashionable' way of drinking fine tea. The

Darjeeling blend is available in a pack of 100

tea bags. These tea bags have a double

chamber for faster infusion of tea, and come

sealed in an envelope to keep the tea fresh and

flavourful.

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Wagh Bakri Tea Quik Tea Bags

Tea bags are convenient and hygienic where

the normal elaborate preparation is not

feasible.  Tea Quik tea bags from WaghBakri

was one of the first ones to enter the Tea Bag

segment.  Tea Quik is especially favoured as it

creates a cuppa that is very close to the

normally brewed tea.  Moreover, the advanced

imported production facility of Tea Quik

produces tea bags free from staple pins. 

SKU: 25 & 100 tea bags.

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Wagh bakri

Our very raison detre.  A legendary brand with extraordinary brand loyalty

built and preserved painstakingly for more than 5 years.  It’s the best selling

brand in Western India.  Customers are known to carry along supplies on long

and overseas journeys! 

 

A blend of select Assam teas, WaghBakri is high on strength and instantly

refreshes a person.  Consistency of quality through the years is another

feather in our cap.  It is available in Leaf, Dust and Fanning varieties.

 

WaghBakri (Leaf) with large granules brews a

strong and sweet taste (earning it the

sobriquet of ‘Kadak Meethi’).  WaghBakri

(Dust) with very fine granules is the strongest

variety and is preferred by institutional

segment.  It produces largest number of cups

per kg of tea.  WaghBakri (Fanning) is a blend

cut between Leaf and Dust. It is strong in taste

and bright in colour.

Available in pack sizes of 25 grams, 50 grams,

100 grams, 250 grams, 500 gram poly pouches

and 1 kg PET jar.  Now also available in 500

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gms. lined cartons.

Special International Blend

WaghBakri is now available for export

markets in special packaging. 

Available in PET jars of 1/2 lb., 1 lb., 2 lbs. 

WaghBakri International tea bags are

available for those who prefer tea bags.

 

True to its name, Good Morning is a blend of premium Assam CTC tea and

traces of orthodox tea which is high on taste

and aroma.  Its fruity flavour tempts you to

reach for another cup. In keeping with the

Group’s high quality standards, the blend is

not offered in the market if good quality tea is

not available due to external factors.  No

wonder, Good Morning enjoys a strong

customer loyalty. Good Morning has been

rated by experts as one of the best blends in

the world.

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SKU: 250 gms. and 500 grams.

 

Wagh Bakri has ruled millions of hearts for over

a 100 years. Wagh Bakri group now brings a tea

that is specially blended for tea connoisseurs.

Wagh Bakri Perfect, this amazing tea is

handpicked from the best tea gardens and

blended by tea experts. Wagh Bakri Tea Perfect

ensures a strong taste, rich colour and a

stimulating aroma.

Organic Tea Gift Pack

Gift Pack of Organic Tea – naturally healthy!

The Organic Gift Pack contains 100% Organic CTC Leaf

Tea, 100% Organic Darjeeling Tea & 100% Organic

Darjeeling Green Tea(100gm each).

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These are high quality certified "100% Organic" teas with

remarkable flavor and refreshing taste.

Pure sips of nature, full of good health and lingering

freshness! It is the gift of choice for those you care for.

Note: Organic cultivation helps promote a sustainable

environment

Certified Organic Darjeeling Green Tea

Created specifically for those who are looking for more in a

tea. Wagh Bakri Organic Darjeeling Green Tea responds to

the passion of ardent tea lovers. Its delicate aroma,

superiative flavour and golden allure, with a distinctive

muscatel taste surrounds the senses. The Organic growing

method applied in cultivating this tea ensures a balanced,

fertile, sustainable environment and a tea that's completely

free from any artificial chemicals.

So come together with your loved ones and scale the

heights of enjoyment with every sip of Wagh Bakri Organic

Darjeeling Green Tea.

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Certified D'ling Organic Darjeeling Tea

An exquisite tea blend for those passionate about taste,

aroma and flavor. WaghBakri Organic Darjeeling Tea

comes to your cup from the highest tea growing slopes of

the Himalayas. Considered as the finest aromatic tea in the

World. Darjeeling tea has smooth muscatel flavor, light

golden hue and exotic aroma. The organic growing method

applied in cultivating this tea ensures a balanced, fertile,

sustainable environment and a tea of health benefit free

from any artificial chemicals.

So buy hot tea beverage that cheers a gift for loved ones

and scale the heights of enjoyment with every sip of

WaghBakri Organic Darjeeling Tea.

 

Certified Organic Assam Tea

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Wagh Bakri Organic Assam Tea is a full-bodied tea that has a

warm reddish brown color and an invigorating taste that

refreshes the body & spirit. Highly regarded by the

connoisseurs for its distinctive fresh though subtle malty

flavor, Assam tea is rich, robust and exceptionally aromatic,

The Organic growing method applied in cultivating this tea

ensures a balanced, fertile, sustainable environment and a

tea that's completely free from any artificial chemicals.

Buy the hot tea beverage

 

The Jewel in the WaghBakri crown. 

An offering of Pure Darjeeling Tea for connoisseurs of

flavour.  D’ling consists of teas grown at heights between

6,000 ft. and 10,000 ft.  Its special aroma and flavour have

won it preference from patrons all over the world.  Its

mild taste needs little milk and sugar.  It also goes

famously into delicious recipes like lemon tea, honey tea, etc.  SKU :100 grams

and 250 grams.  3

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SALES AND DISTRIBUTION NETWORK

A need was felt in the last 70’s by ‘Wagh Bakri group’ to make available fresh

tea in convenient packs to the discerning consumers of Gujarat, as a

result,GTPPL as a part of wagh bakri group was founded in 1980 with a

objective to market sealed packet tea in Gujarat. Since then GTPPL has

satisfied the need of more and more customers over a period of years due to

its unmatched consistency in quality and strong distribution system. Total

average sale of GTPPL is approx 19.5 lack kgs per month. Turnover is likely to

exceed 350 crs this yr. The company is operating in four states across India ie

Gujarat, Rajasthan, Madhya Pradesh and Maharashtra .

RAJASTHAN AND MADHYA PRADESH:

In Rajasthan, the company launches product first in Udaipur section and it

was launched subsequently in jodhpur / jaipur sections. Distribution section

was much similar to Gujarat. And in Madhya Pradesh the company has super

stockiest one at Indore and another at Jabalpur.

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FUTURE PLANS FOR GROWTH IN KEY MARKET

AND EXPANSION

It’s a familiar but audacious picture that is slowly emerging. Familiar because

it is an oft-told battle of a domestic corporate David taking on the might of

multinational Goliaths Hindustan Unilever Ltd (HUL) and Tata Tea Ltd.

Audacious, because the Indian company Wagh Bakri Group is now chalking

out fresh plans to gain a competitive edge in the Rs 5,000 crore Indian

branded tea industry. For starters, Wagh Bakri is extending its presence,

manufacturing facility and distribution network to pump up volumes.

The group’s game plan includes, retail initiatives, high-voltage mass media

advertisings campaigns and export initiatives. The vital question is: Will Wagh

Bakri’s growth strategy change the market dynamics of the branded tea sector

in India? On the group’s strategy, Piyush Desai, chairman & managing director

of Wagh Bakri Tea Group says, “Our main objective is to become a national

player by the end of this year. We are setting up a new facility at Nadiad soon.

We are now the third largest tea brand in India.” At present, Wagh Bakri has

presence in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra.

According to Desai, the group is planning to foray into southern states as part

of its growth strategy. To start with, the group is planning to introduce its

flagship brand Wagh Bakri in Karnataka. In the Rs 5,000 crore Indian branded

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industry, Tata Tea currently enjoys volume leadership while Hindustan

Unilever has value leadership.

With its national brand strategy, Wagh Bakri can pose a major threat to HUL

and Tata Tea. Very soon, the branded tea sector will witness a major tussle

between national and regional players. As a result, this sector is expected to

register a 15 % growth this year,said an analyst based in Mumbai.

‘Seeing is believing’ seems to be the mantra for Wagh Bakri.To gain visibility

for its brands, the group is hiking its advertising budget by 50 % this year,

according to Desai. To woo consumers, the company is in the process of

rolling out an aggressive print campaign with the tag line ‘Perfect Rishtey

Banaye.

“To support our print ads, we are also beaming television commercials on

leading channels. Also, we are strengthening our pan-India distribution

network, this year.4

EXPORTS :-

Waghbakri wants to grow their export division by catering all Indians and

Asian community wherever they are residing’ using this as a launching pad,

the company would like to cater to all the tea connoisseurs of the main stream

market all over the globe. Recently we have entered UK, Australia, New

Zealand and also having strong dialogues with some of the European buyers

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and hoping to get good business from them · Currently focusing in USA as a

strong hold in New York, Chicago, Atlanta, etc. 5

BRAND EVOLUTION

Waghbakri has categorized the organic teas, all other form of double and

single chamber tea bags, Darjeeling teas and Nilgri teas as “Specialty Teas”

and have started various forms of sales promotion. Which has operationalised

our vision for catering to newer generation which traditionally was never our

customers. Going ahead in this segment we have launched last year wagh

bakri organic combo pack which has all the variable of the organic format with

recipe booklet, which has helped our customer to understand the teas better.

Tea Lounge:-

Wagh Bakri to go one step forward and entered in the service arena of serving

all forms of teas from single platform which we have discovered as “Tea

Lounge”. They have opened one tea lounge in Mumbai in November 07 and

have received an over whelming response and hence we are looking forward

to go ahead with this idea on pan India basis.

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Vending Operations:-

Vending operation is also a newer version of having hot tea. There are lots of

opportunities and the company desires to cater to this business on pan India

basis.

Institutional Business:-

The company is expanding wings, by tapping huge potential i.e. institution

business. In this process the company is appointing distributors and setting

up distribution networks. The company has already started business with

railways , authorized vendors in IRCTC, organized segments (i.e. corporate )

and also tapped HTS ( Hot Tea Shops ) Highway Restaurants with organized

efforts & now we are in process of streamlining it. 6

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MARKETING INITIATIVES

Wagh Bakri has gone to each and every customer be it an upper end customer

or the middle or lower level of customer in terms of socio economic class with

different forms & mediums of communication.

Advertising & Publishing Agency:-

The company has hired nationally renowned agency for their different brands.

“Triton Communication”, “Hanmer MS & L” & “Percept Advertising” are

workingon creative part to help them communicate to their “TG” i.e their

target group. A publishing agency is hired ‘Publicity Parlour’ for publishing

creative’s made bythe agencies in print as well as in electronic medium.

Marketing Research:-

Wagh Bakri always had belief in marketing research, which had been carried

forward by purchasing syndicated marketing research report ( lastly

purchased this type of report from A C Nielson) & conduct market research by

marketing companies.

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Electronic Medium:-

Last year they had presence on number of channels like colors, star Gold, Aaj

Tak, Star One, Star News, NDTV Imagine, Set Max, Sahara One, Zee etc. The

plan behind broadcasting on these channel is to communicate the brand value

to a

particular customer, who will recall their already known brand like “ Wagh

Bakri Wagh bakri Perfect” or “Milli”. The company wants to break periphery

of four states i.e MP, Rajasthan, Gujarat, & Maharashtra to communicate to

their future customers across India. In short they want to spread in PAN India

where where their distribution has still not reached and this is the best

possible way to reach their prospective customers and make them aware

about the brand.

Print Medium:-

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THIS CREATIVE USE IN ONLY INSIDE MALL

COME OUT WITH NEW

CONCEPT .NOW WAGH

BAKRI AVAILABLE IN

GIFT PACK

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TEA LOUNGE AT MUBMAI

ADVERTISEMENT

Others

:-

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This are the medium which they think is the second most effective medium

after broadcasting as they can communicate to their “TG”. This medium is

being used for two main agendas i.e to communicate for the ongoing

consumer promotion schemes & for brand building activity. They have good

presence in this medium be it local newspaper or national newspapers.

Internet Selling:-

Wagh bakri is now catering to customers seeking tea online. Their online

selling portal have all the enmities required for the online selling portal. This

initiative has kept them on global platform. www.premiumtea.com and

www.buytea.com are the two websites which are catering to tea lovers

seeking packed tea over the net

Organized Retail Network:-

WaghBakri have accepted the importance new form of retailing i.e organized

retail network. This retail network is growing up rapidly and would start

catering many customers who are used to go to next door retailing. They have

started the activity of gondola displays, floors stack displays and also used

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promoters at the select outlets where they can interact with the end

customers.

Customer & Trade Promotion (CP & TP):-

Customer promotion is given for two reasons; one is to motivate a customer

to change and second is appreciating customers choice to continue using the

particular product. They are also providing CP on their selected SKU for the

same reason. 7

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New launching :-

The Wagh Bakri Group has launched its

premium tea brand, Good Morning tea in

Mumbai. Vidya Balan unveiled the tea, which

promises to be a delight for all tea

connoisseurs.

Mumbai is the first launch market in

Maharashtra. Subsequently, the brand will be available in key cities like Pune,

Nagpur and Nasik. Good Morning tea is primarily targeted towards quality

conscious consumers who appreciate a judicious blend of taste, strength and

aroma.8

CMD of Wagh Bakri Piyush Desai

(R), Director Parag Desai and TV

actress Smriti9

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1

References :-

http://www.waghbakritea.com/about_us.html Accessed on 1.01.11

2 http://www.waghbakritea.com/achievements.html Accessed on 4.01.11

3 http://www.waghbakritea.com/product.php Accessed on 3.01.11

4 http://www.thehindubusinessline.com/2007/11/29/stories/2007112952070500.htm Accessed on 4.01.11

5 www. waghbakri tea.com/ Export %20House Accessed on 1.01.11

6 http://www.afaqs.com/news/story.html?sid=24771_Percept/H+wins+creative+duties+for+Good+Morning Accessed on 3.01.11

7 http://www.afaqs.com/search/index.html?k=wagh%20bakri&sbs=Media%20Brief Accessed on 4.01.11 s

http://www.waghbakritea.com/tea_recipes.htmlAccessed on 1.01.11

http://www.waghbakritea.com/archives.htmlAccessed on 4.01.11

8 news.maxabout.net/.../wagh-bakri-launches-premium-tea-brand Accessed on 4.01.11

9 news.in.msn.com/business/article.aspx?cp-documentid Accessed on 3.01.11