NUTRI-T

MARKETING PLAN
PROJECT TITLE : LAUNCHING A HYDROPONIC TEA

Under the guidence of

PROF. VIBHAVA SRIVASTAVA

GROUP-1, SEC-B- NMP29
29NMP53
29NMP57
29NMP63
29NMP79
16EM01

MUKUL MALIK
PRADEEP KUMAR SINGH
RAJAT SHARMA
SIDHARTH RAINA
KAUSTAV MOHAPATRA

Contents
Executive Summary .............................................................................................................................. 2
Product Description:.............................................................................................................................. 3
Situation Analysis ................................................................................................................................... 4
Indian Tea Market Demographics .................................................................................................... 5
Market Trends & Growths ................................................................................................................... 7
Market Needs: ....................................................................................................................................... 10
Pestle Analysis ....................................................................................................................................... 11
SWOT Analysis ...................................................................................................................................... 12
Competition ............................................................................................................................................ 13
Marketing Objective ............................................................................................................................ 15
Issue Analysis ........................................................................................................................................ 16
Assumptions ........................................................................................................................................... 16
Marketing Strategy: ............................................................................................................................ 17
Marketing Mix of Nutri-T.................................................................................................................... 19
Financial Projection: ............................................................................................................................ 22
Sample Survey Questionnaire ......................................................................................................... 23

1|Page

Executive Summary
The marketing plan includes the fundamental for the introduction of newcomer
in the Indian Tea market known as Nutri-T. It is an innovative product which
is close to herbal tea and black tea and this product can serve as body
cleanser. Since it is grown by hydroponic method it has high nutritional value
as compared with other products in market.
Using hydroponic cultivation means that products can be grown locally thus
reducing the cost of transportation. It can be grown year around thus ensuring
products are always freshly produced.
The Issue facing us
Today Indian farmers face the following challenges
1) Drought conditions and unpredictable weather
2) Rising temperatures
3) Polluted water systems
4) Lack of irrigation
5) Poor water management
6) Under-nourished or over nourished crops

India today needs food security which entails that all people at all times have
physical and economic access to safe and nutritious food to meet dietary
needs.
Lack of water for agriculture leads to production of lesser food which means
more hunger and malnutrition
We are going to highlight the need for technology in agriculture that can
contribute towards water savings and have a positive impact on food
production and availability.

2|Page

Advantage of hydroponics :
Some of the reasons why hydroponics is being adopted around the world for
food production are the following:

No soil is needed for hydroponics

The water stays in the system and can be reused

It is possible to control the nutrition levels accurately

It is stable and provides high yields hence economically viable

Pests and diseases are easier to get rid of

Ease of harvesting

It is better for consumption

Product Description:
Nutri-T is a unique blend of all natural ingredients. Persons who suffer with
Acid Reflux, Constipation, Indigestion, Bloating, Excess Gas and Belching
should use Nutri-T. People who would like to take inches off their stomach,
clean out Nicotine & second hand smoke and keep the Liver, Lungs and Colon
healthy and clean will benefit from this product. Nutri-T helps detoxify
chemicals created by a Spastic Colon, Parasites, Fungus, Bacteria and Toxins
from the entire digestive system. It may also be used as an element of a
Weight Management Program. With continued use of Nutri-T, you will
experience clearer, healthier, younger looking skin, increased energy and a
happier outlook.
The Royal Society of Medicine has stated that over 85% of chronic illnesses
stem from Digestive Disorders and are reversible and preventable. Digestive
Disorders and their related illnesses need not be experienced. Nutri-T not only
cleanses and rejuvenates the digestive tract but also supports the health and
wellbeing of the entire body; a formula with positive results that is safe to
take on a daily basis for a lifetime of protection. Live a full and healthy life.

3|Page

Situation Analysis
Market Summary
History of Tea
It is said that tea was discovered accidentally by Emperor Shen Nung back in
2700BC. After a large meal one day, he was relaxing in the garden with a cup
of boiling water. At that time some leaves from a nearby tree fell into the cup.
Unnoticed he consumed the drink. He enjoyed the taste of the tea and the
pain relief of the drink was so much. Like this the cup of tea was born.
The Indian legend tells how in the fifth year of a seven year sleepless
contemplation of Buddha he began to feel drowsy. He immediately plucked a
few leaves from a nearby bush and chewed them which dispelled his
tiredness. The bush was a wild tea tree.
The first tea used in England came from China, and it wasn't until the 19th
century that tea growing spread to other countries and indigenous tea was
discovered in Assam. The UK is the largest importer of tea.
The English quickly developed an almost unquenchable thirst for the drink and
began searching for a way to get tea without having to buy it solely from China
. In 1835 the English East India Company, upon discovery of an indigenous
variety of Camellia Sinensis in Assam, India , established their first
experimental tea plantation there. It was largely unsuccessful at the
beginning. In 1856 varieties of tea from the Yunnan and Keemun provinces of
China were introduced in Darjeeling, India , and soon thrived. Some of the
most prized and expensive Indian black teas come from this high mountain
region. One year later tea was cultivated in Ceylon ( Sri Lanka ). Luckily, for
tea growers and consumers, a fungus wiped out the coffee crop in Ceylon in
1869, then its' main export. This opened the door to increased tea production
and
exportation.
By the early 1900's tea was being cultivated in Java, Sumatra, Indonesia,
Kenya and other parts of Africa . Presently, the United States has been added
to the list of tea producers as there is one plantation in North Carolina.
Types of Tea
There are several ways of classifying tea like the country or region of origin.
The tea is divided in three types:
Black tea

4|Page

Black teas are produced by withering, cutting, rolling, fermenting and drying
the tea leaves.
The infusion can be light or dark in appearance, varying in color from orange
to brown and
will usually have a strong taste.
Green tea
Green teas are teas that have been picked and rolled before firing. This stops
the veins on the leaves breaking, preventing the fermentation process, so that
the leaf does not turn brown. The brewed tea is pale yellow or green in color.
Oolong tea
Oolong teas are semi-green teas, produced by stopping the fermentation
process just as the
leaves start to turn brown. The leaves are then fired or dried and deliver a
yellowish infusion.
The different tastes of tea
There are nine main tastes of tea in the world:
Original tea (from specific countries or regions)
Standard teas
Medicinal teas
Organic teas
Hot or cold teas
Perfumed teas
Seasoning teas
Decaffeinated teas
Exotic teas.

Indian Tea Market Demographics

India: the largest tea consumer in the world
India consumes the largest quantity of tea in the world, accounting for nearly
14% of global retail volume sales. Geographically, tea is widely consumed in
the North, East and West of India, and is popular with a wide variety of social
classes and consumer age groups.
However, it ranks 7th in value terms, due to relatively low unit prices. Black
standard tea constitutes nearly 80% of value sales, although green tea has
seen its popularity rise

5|Page

Indian Tea Market

The tea industry in India is about 170 years old. It occupies an important place
and plays a very useful part in the national economy. Tea plantations in India
are mainly located in rural hills and backward areas of North-eastern and
Southern States. Major tea growing areas of the country are concentrated in
Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is
grown to a small extent are Karnataka, Tripura, Himachal Pradesh,
Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya,
Mizoram, Bihar and Orissa. Tea is an essential item of domestic consumption
and is the major beverage in India. Tea is also considered as the cheapest
beverage amongst the beverages available in India.
The major competitive countries in tea in the world are Sri Lanka, Kenya,
China and Indonesia. China is the major producer of green tea while Sri Lanka
and Indonesia are producing mainly orthodox varieties of tea. Kenya is
basically a CTC tea producing country. While India is facing competition from
Sri Lanka and Indonesia with regard to export of orthodox teas and from China
with regard to green tea export, it is facing competition from Kenya and from
other African countries in exporting CTC teas.

6|Page

Market Trends & Growths

India Team Market Share
1%
2%

6%
9%

82%

CTC Tea
Loose Tea
Tea Bags
Speciality Tea
Dust Tea

Above Pie-Chart clearly shows that it is CTC Tea which contributes the major
market share (82%) in Indian Tea Market.

CTC Tea Market Share

CTC Tea Market Share

2.19%
5.44%

2.12%

2.03%

TATA

3.54%

Red Label
24.53%

6.40%

Taj mahal
WaghBakri

6.76%

SOCIETY

7.21%

17.61%
7.50%

AGNI
Godrej
Super Cup
Girnar

Above CTC Market share pie-chart displays that Tata is having biggest
market share of 24.53% followed by Hindustan Unilevers Red Label

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Top Tea Markets in India

2.79%

Mumbai

2.60% 2.44%

3.35%

Banglore

14.91%

3.69%

Ahmedabad

3.80%
9.20%

Pune
Gaziabad

4.04%
5.30%
5.20%

6.90%
5.89%

New Delhi
Kolkata
Lucknow
Gurgaon

Above pie-chart of Top Markets and their share indicates that West India
accounts to approximately 30% plus of tea sales rest is distributed between
North & East Markets according to stores located in various parts of country.
Tea Producing States in India

8|Page

The East & Noth East Region of India

Assam valley and Cachar region in Assam parts if the states of Tripura,
Arunachal Pradesh, Sikkim, Meghalaya, Mizoram, Nagaland, Manipur, Orissa
and Darjeeling, Dooars, Terai regions of West Bengal.
The North Region of India
Kangra valley in Himachal Pradesh, Dehradoon region in Uttar Pradesh
The South Region of India
The hilly regions and plains (Annamalai) of Tamil Nadu, parts of the states of
Kerala and Karnataka.

Tea advertiser's Channel preference

Aaj Tak
8%

6%

SAB TV

4%
4%
4%

56%
4%
4%
4%
3%

3%

DD Mumbai
Star Gold
Sahara UP
Star Plus
Sahara
NDTV India
Alpha Marathi

9|Page

Market Needs:
The India is the worlds second most populated country contributing 17.23%
of worlds population. The health related issues in India also increasing day
by day due to the lifestyle and inclination of the generation towards fast food
or junk food which generally responsible for health hazards. Being Inda as
developing country the more and more people in India are getting literate
and educated. The education in turn brings awareness in the people and
they understand what dos and donts. There is class of people who are
health cautious most of them fall under high class societies. India is
predicated to be the number one in terms of diabetes and heart disease in
the world in coming decades. It is difficult to change the lifestyle of people
all of sudden and hence people look for better product which can keep them
healthy and offer resistance or meditate their health for long life and better
health. Tea is hot beverage consumed by people all over the world at
highest after water. So it is a great idea if tea can prove as tea as well as
medicine and offer better health & immunization as it is consumed twice to
thrice a day. If tea can provide halth benefits it will be surely welcomed by
the class of health conscious people.

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Pestle Analysis
Political/Legal

Economical

Socio-Cultural

Technological

Environmental

Political Aspects
Political influence on Indian agriculture is very much widespread. It ranges
from incorporation of new policies for the farmers to the steps taken on their
welfare and development. Political factor is often related directly with the
central government that is in power.
Economical Aspects:
Hydro faces little exposure to economic cycles as the production is being
carried out in controlled environment and also the demand for the produce
will be continuous throughout the year
Socio-Cultural Aspects:
People may consider hydroponic products as unnatural as in the case of
genetically modified agro products. There may be a need to educate the
people about the same.
Technological Aspects:
It is an Israel based technology and is not readily available in India. It
would add to the initial setup cost. It is a promising technology and has very
promising yield and also help in optimum water utilization.
Environment:
It will have minimum impact as hydro is a form of indoor glasshouse
farming. Plants can be grown throughout the year. As it is a form of soil less
cultivation so it can be installed on any part of land irrespective of its soil
content.

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SWOT Analysis
Strength

High Yields from lesser spaces

Produce can get premium prices
Less labor means lesser costs
Uniqueness of the product - Benefits of product are outstanding
and not offered by any other product/company.

Weakness

No industry association or bodies in hydroponics yet

High Capex
New company - needs to establish its position in the market place

Opportunities

Brand, package and sell produce

as clean, healthy and unique
Consumers are living a more healthy lifestyle
Can be raised to sell niche markets which high returns

Threats

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Must not compete on price, but on quality.

Perception that Hydroponics is unnatural.
Strong competition like Hindustan Uniliver & Tata tea
Indian customers are loyal to their local brand

Competition
Top 10 Tea Companies in India
Hindustan Unilever Ltd.
Tata Tea Ltd.
Duncans Industries
Wagh Bakri Ltd.
Private Label
Goodricke Group Ltd.
Golden Tips Tea Pvt.
Hasmukhrai & Co
Girnar Food & Beverages P ltd
Sapat Packaging Industries
% Market Share of Tea Companies in India
Hindustan Unilever Ltd.
30.20%

Tata Tea Ltd.

32.50%

Duncans Industries
Wagh Bakri Ltd.

1.40%
1.70%
2.20%
2.90%

22.50%
6.60%

Private Label
Goodricke Group Ltd.
Golden Tips Tea Pvt.
Others

Hindustan Uniliver (32.50%) & Tata Tea (22.50%) are two major competitors
in India Tea market and contributes around 55% of Indian Tea market share.
Unilever: the clear market leader
The packaged tea market is highly consolidated in India, with Unilever and
Tata Tea accounting for almost half of retail value sales. Unilever (Brooke
Bond and Lipton) is the clear leader, holding over 30% of the market share,
while Tata Tea (Tata) trails it with almost 20%. The remainder of the market
is far more fragmented and shared between numerous small players
Both Unilever and Tata Tea saw a fall in retail sales as a direct result of the
drop in the price of tea between 2000 and 2003. These mainstream players
also saw their margin squeezed in the face of increased advertising spends
and competition from unpackaged tea.

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Tata Tea: ambitions in international markets

(Worlds second largest branded tea company)
Tata Tea is the largest vertically integrated tea firm in the world, from its
plantation activity through to its packaging and marketing initiatives. Although
Tata Tea is overshadowed by Unilever in its domestic market, the company
has been the star performer in the global tea industry in recent years.
Its high profile acquisition of the global Tetley brand in 2000 effectively
consolidated its position in the international tea market. The company is now
seeking to leverage the brand as a springboard to new markets. In 2003, Tata
Tea started retailing its flagship brand Tata Tea in the US.
The company closed a factory in Australia in the same year in order to increase
the capacity of its Sri Lankan joint venture packaging company, which serves
the Australian, Polish and Russian tea markets. It is currently looking into
marketing Tetley in the Chinese market.

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Marketing Objective

To
To
To
To

offer consumer best health advantage through Nutri-T.

establish as market leader in hydroponic tea industry
enable Nutri-T to satisfy, fulfill the consumers personality & lifestyle
increase Nutri-Ts popularity as an icon in hydroponic Tea product.

The different managers should know the sales and marketing objectives of
the firm in order to achieve these objectives.
We are going to use the method SMART:

Specific: The objectives have to be clear. For example, in each shop, the
company of Nutri-T must achieve the selling objectives. The turnover to
reach will not be the same in the different shop because we make the
selling objectives according to size of the shop, the frequentation, the
type of the clients.
Measurable: The company has to follow the different targets in the sales
outlets and if each shop allowed to reach the objectives. To measure the
sales we can calculate the sales by day in order to understand how the
client bought the product. With these data we can improve the strategy
and the sales. The commercials can ask to the supermarket to put the
product in a different way or to make more promotion.
Achievable: The targets have to be realist. At the beginning the turnover
would grow slowly and after the promotion, it would have a faster
expansion. If we reach to win clients from our main competitor (in a first
time) and from the others tea brand (in a second time), the sales would
grow increasingly. The firm should have a long terms vision and should
be reactive in front of decisions or problems which can occur.
Relevant: the objectives have to be founded on fact and not on
suppositions. The firm has to respect its general strategy and its image.
The firm should take into consideration the sales of its competitors in
order to be based on relevant objectives.
Timed targeted: each objective should have a deadline. It can allow
measuring the different sales of the day, of the week, of the month,
according to these data, the firm can change the objectives or makes
promotion to reach these objectives.
The objectives for the first year:

Break into the herbal tea market with our hydroponic produce which is
marked by high nutritional value

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Issue Analysis
Main issues that should be addressed in the Action Plan:
Company needs to gain experience in the market place
Aggressive promotion efforts to establish brand name and gain market
share
Create effective marketing mix
Establish company image of high quality, great value for money
Find distribution deal with main tea shops, supermarkets in India
Start aggressive promotion (e.g. free gifts included in purchase) to win
customers of Lion Brand
Try to gain market share of Hindustan Unilever & Tata Tea by converting
their loyal customers.

Assumptions
With respect to the tea market climate it is assumed that:
Nutri-T will be able to differ from its competitors by introducing the
product with high nutritional value along with aggressive promotion
tactics for their innovative product.
Tea supply will remain relatively stable
Demand should remain in sync with supply
Prices for high quality tea will increase moderately
Prices for mass market tea will stabilize

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Marketing Strategy:
A. Market Gap
Regarding our research in Indian supermarkets and pharmacies we have come
to the result that there is no market gap in the tea market. It is important to
point out that once the Maltese customer decides to consume a certain brand
he or she will be very loyal to the product and it
will therefore be hard to convince him or her to buy another brand. This is
why the local tea brand Lion Brand has a Market Share of 60 %. Customers
like it because it is cheap and they receive great value for their money.
With the brand Nutri-T we are going to introduce innovative products in an
existing market and focus on Market Development.

Existing Market

New Market

Existing
products

Market
Penetration

Product
Development

New
Products

Market
Development

Diversification

Nutri-T need to spread awareness about the health betterment by consuming

the Nutri-T and capture the educated and health conscious class of people
(usually from High Class society & educated). Lifestyle of customer is changing
who emphasize on health, Nutri-T can capture this new rising market.
Producing product in India is less expensive as India is second largest producer
of tea in world tea market and also labor is cheap here. Since the Nutri-T
market will be limited for Indian territory only hence company do not have
threat from exports & changes in Exchange rates.

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Perceptual map:

SALARY

Nutri - T

Brook Bond

Tata Tea

6
Lipton

NUTRIENT
6

TASTE
Nutri - T

Tata Tea
0

AWARENESS
Brook Bond

Lipton

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Points of difference:
Nutri-T
less water consumption
High nutritional value
high in flavor
Higher yield

Others
High water consumption
Less nutritional value
Low in flavor
Lower yield

Points of parity:
Both are commodity.

Marketing Mix of Nutri-T

Product
Nutri-T will be a high quality product offered as herbals tea.
Contents of the Nutri-T are:
40 bags, 80 bags, 150 bags, 250 bags (Family pack)
The amount of bags refers to different target groups. 40 bags for singles, 80
bags for couples,
150 bags and 250 bags are Family Packs. (250 bags is the most famous).
Also available in 50g, 100g, 250g, 500g and 1 kg.
Packaging:
Customer perception of a package creates brand equity and purchaser loyalty.
The image presented by the package largely determines success or failure of
a tea line. Appearance stimulates memories and emotions inside the
purchaser, who oftentimes is female, often buying for an entire family. Colour,
image and slogan all combine to facilitate customer allegiance.

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Target:
We want to touch the target group in a progressive way. At the beginning, it
is important to convert the loyal consumers of black tea & touch fruit tea and
health tea consumers. In second time, we should attract the consumers of the
main competitor Hindustan Unilever & Tata Tea. The next step will be to touch
the tea drinkers in general and at the end, the consumers of coffee. We can
argue for the coffee drinkers that the Nutri-T is as strong as the coffee and
good for the health.
Place
High quality for a reasonable price as transportation cost will be reduced
because hydroponic crops can be gown locally. The final product will be
distributed to Retailers such as Supermarkets and main tea shops so the end
consumer has easy access to it.
Place in supermarket:
On the middle and lower levels the Nutri-T should be placed according to the
content of tea bags
Price
Price for the tea would be kept as Rs. 850 per kg.
Promotion
The promotion is the most important point to launch our products because we
want to be able to compete with our biggest competitor Hindustan Unilever &
Tata Tea. We want to focus on this point because the Indians like to purchase
bargains or buy products that offer free gifts. Other brands do not offer as
many promotion and free gifts. This is why it is important to focus especially
on the Promotion activities of the marketing mix. We are going to set up
original events in order to attract new customers and consumers of other tea
brands.
Our objectives:
Promotion in the supermarkets:
Set up a stand: we want to set up a stand in the supermarket in order to
make tasting to the supermarkets clients. The stand should be placed
between the fresh food and the food with the aim to attract all the consumers.
The stand should represent the brand.

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Advertisement
At the beginning, the strategy is to focus on the Internet, the radio and on
daily newspaper (Times of India etc) to reach a lot of customers. These media
are noticed by a large target group which will help the firm to be known.
After six months or one year, we will begin a campaign on television, in
magazines and on airports.
People
The employees and the consumers are very important for the products
development. They represent the image of the brand; it is for that the services
have to be optimum. The employees and more particularly the commercial
people and the hostesses should be trained in order to know the product and
to can sell it properly. Moreover, in the other hand, the clients are important
because they passed a message to the potential clients. To allow this, the
hostesses at the beginning and the employees after have to explain the
quality, the taste of the product.
Process
We have seen that the selling process is vital in the decision making process.
In the shops, the selling is making by the advice. The clients like to feel
reassured in front of making process. So we conclude that one time per three
months, commercials and hostesses will give advices to the consumers in
order to make him more confident the product.
Physical evidence
The environment should be very clear, clean and attractive because the
decision making process takes into account these elements. Moreover, in the
shelves, the products should be stored correctly in order to attract the
consumers. We have to ask to the staff that we need light in order to bring
out the colors of the product.

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Financial Projection:
Year-1
Revenue
COGS
Gross Margin
Fixed Expenses
Marketing &
Advertisement
Expenses
Other Expenses
EBIT
Tax @35%
Net Income

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Year-2

Year-3

Year-4

63,75,000.00

65,02,500.00

66,32,550.00

67,65,201.00

13,55,000.00

13,82,100.00

14,09,742.00

14,37,936.84

50,20,000.00

51,20,400.00

52,22,808.00

53,27,264.16

27,80,000.00

1,75,000.00

1,75,000.00

1,75,000.00

11,62,950.00

11,62,950.00

11,62,950.00

11,62,950.00

5,00,000.00

5,25,000.00

5,51,250.00

5,78,812.50

5,77,050.00

32,57,450.00

33,33,608.00

34,10,501.66

2,01,967.50

11,40,107.50

11,66,762.80

11,93,675.58

3,75,082.50

21,17,342.50

21,66,845.20

22,16,826.08

Sample Survey Questionnaire

Instructions
Answer questions as they relate to you. For most answers, check the box (s) most
applicable to you or fill in the blanks.

Demographic
1. Your Age (Select One)

18 or less
41-50

18-30
51 or more

31-40

2. Your Gender

(Select only one.)

Female

Male

3. Your Occupation

(Select all that apply.)

Student
Service

Business

Other

4. Your Annual Income

(Select all that apply.)

< 2,00,000
2,00,000 4,00,000
4,00,000
8,00,000
8,00,000 12,00,000
12,00,000 15,00,000
>
15,00,000
Geographic Segmentation
5. Which area of India do you belong?

(Select only one.)

Northern
Eastern

Western
Central

Southern
North East

Psychographic Segmentation
6. Which type of lifestyle do you prefer? (Select One)

Business Class

Working Class Executive

Student

7. Which type of personality do you prefer? (Select One)

Ambitious

Open to Experience

Neutral

8. Which type of beverages do you like to have more? (Select One)

Tea
Chocolate

Coffee

Milk

Hot

Ongoing Market Research

9. How often do you buy tea from the grocery store? (Select One)

Once in a week

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Twice in week

Daily

10. What do you see more desirable in a tea? (Select One)

Taste

Ingredient

Flavor

Process
11. How frequently you consume organic produce? (Select One)

Once in a week

Twice in week

Daily

12. Would you be more likely to buy produce labeled organic? (Select One)

Yes

Cant Say

No

13. Do you have a garden at home? (Select One)

Yes

May be in future

No

14. Are you familiar with hydroponics? (Select One)

Yes

Want to know

No

15. How often you consume Tea as a beverage? (One or more)

Once in a Day
More than once in a day

Once in a week
Not Really

16. Please tell us about your affection with Tea? (Select One)

Must be needed
Light/not necessarily

Cant resist
Doesnt like much

17. Would you prefer Tea with high nutrient content ? (Select One)

Yes

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No

May be