PRESENTATION

ON
WAGH BAKRI CHAI
 INTRODUCTION OF THE
COMPANY
 An Ahmedabad-based , Waghbakri Company is a family owned
tea business amongst conglomerates and mega corps that tower
the International business scenario all over the world.
  Wagh Bakri group was set up in S Africa in 1892 by Narandas
Desai . Sir Narandas Desai set foot on Indian soil in the year 1910
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 began as a retail vendor of loose tea in 1920. He started
selling tea in packets under the brand name Waghbakri which he
registered as a trademark in 1934.
 In 1980, three of his grandsons Piyushbhai Desai, Pankajbhai
Desai and Raseshbhai Desai entered into the tea business and
established the Wagh Bakri brand in western India.
The group has 3 companies:
• Gujarat Tea Depot Co Ltd. - set up in 1917, owns Wagh
Bakri brand.
• Standard Tea Processing Co Ltd. - focuses on tea buying &
blending.
• Gujarat Tea Processors & Packers Ltd - sells the teas.

 The group has established five brands in the domestic

market. They are D'ling (speciality Darjeeling tea), Good
Morning (blend of Premium Assam and Orthodox), Wagh
Bakri (blend of select Assam teas), Tea Quik (tea bags) and
Mili ( a brand aimed at loose tea consumers).

 They enjoy a 60%volume share in Gujarat. In Rajasthan

and Madhya Pradesh ,the company enjoys 20% and 15%
marketshare .
 SOME FACTS
 Currently, the Wagh-Bakri brand is sold mainly in Gujarat,
Rajasthan and Madhya Pradesh , Maharashtra.
 The brand has a global presence in more than 32 countries.

 With an annual turnover of Rs 260 crore, the company has a

production capacity of six lakh packets per day.
 While Hindustan Lever Limited’s array of tea brands sells
around 90-100 million kg of tea annually across the country
followed by Tata Tea which sells around 60 million kg annually,
Wagh Bakri with a sale of 16-17 million kg comes in third.
 Tea Market Shares:

 Tata Tea - 21%

 HUL - 18%

 Wagh Bakri - 5%

 Others - 57%
WB TEA PRODUCTS
ORGANIC TEA
ORGANIC DARJEELING TEA
ORGANIC ASSAM TEAM
WB PERFECT
D’LING
GOOD MORNING
WAGH BAKRI
MILI
TEA BAGS
Wagh Bakri Masala Chai Bags
Good Morning Tea Bags (Assam)
Good Morning Tea Bags (Darjeeling)
Wagh Bakri Tea Quik Tea Bags
SOCIALISTIC EXPLANATION OF
THE LOGO
The trademark "symbolises the co-existence of the one
and all - be it rich and the not-so-rich, the strong and
the not-so-strong, the bold and the not-so-bold ..."
How WB became - a strong
REGIONAL BRAND
 The brand stands for quality.
The products’ strengths are complemented by the
Group’s marketing reach.
The Group has deep distribution reach as well. It sells
in India as well as abroad.
 The group's goodwill and acceptance among the
consumers have been built over the years by regular
delivery of good quality tea.
They have constantly focused on selling good quality
tea to their consumers. Today Wagh Bakri and its
other brands stand for quality.
 It has a state-of-the-art plant where the finest production and
packaging processes are employed. That ensures that the
colour, tastes, strength, aroma and flavour of the tea stays as
good as it is in the fields.
 Its processes have been accredited with international quality
standards.
 The group's "immaculate" distribution network had helped it
stay ahead of competition.
 They spend a lot of time and energy on their distribution
network. Most of the brands focus on cities and to some
extent the towns. They have extended this network to the
villages. They have built relationships with the shop owners
not just in the sophisticated urban localities but even in the
rustic villages.
 Wagh Bakri is a strong regional player. Its strength lies
mostly in Gujarat where it has been very popular over the
years. It has become more of a tradition in that region. Wagh
Bakri has inherited it and nurtured it too. Though Wagh
Bakri has spread its wings to Rajasthan and Madhya Pradesh,
but its strength is "limited" to just one State.
 It is present in the market with different variants of quality at
different price points. Their products are available from Re 1
pouches to one kg packs. They have 49 different pack sizes.
 Their products are available in cartoons, jars, pouches and
tea bags. They sell a negligible amount of loose tea but only
through their own branded outlets. They have six such outlets
in Ahmedabad.
 STRATEGY
 The punchline “ RISHTEY BANAYE WAGH BAKRI
CHAI ” reinforces the brand as one of warmth , hospitality
and building relationships.
 Wagh Bakri depends largely on “consumer loyalties and
sensibilities,” in a market where local flavour rules the
roost. The formula for company’s success is that “They’re
not only familiar with local tastes and preferences but also
provide consistent quality tea to consumers.”

 Its marketing strategy is characterized by :

 High Quality Offer
 High Turnover
 With the aim of expanding its market and increase its
current turnover of Rs 260 crore to Rs 375 crore by 2010
and to become a national player.
 It has entered the retail franchise format with the unveiling
of ‘Wagh Bakri Tea Lounge’ in Mumbai.
 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.
 Wagh Bakri is entering Maharashtra with its premium leaf
teas. Targeting a 15 per cent volume share in its first year
of launch, Wagh Bakri is adopting a 360-degree marketing
strategy to tap into this market.
 To gain visibility for its brands, the group is planning to
hike its advertising budget by 50 % .

 To woo consumers, the company is in the process of

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

 In the Rs 5,000 crore Indian branded industry , where Tata

Tea currently enjoys volume leadership while Hindustan
Unilever has value leadership , Wagh Bakri with its
national brand strategy can pose a major threat to HUL and
Tata Tea.