PRESENTATION ON WAGH BAKRI CHAI

INTRODUCTION OF THE COMPANY

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

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.

countries.

With an annual turnover of Rs 260 crore, the company has a production capacity of six lakh packets per day.

While Hindustan Lever Limiteds array of tea brands sells

around 90-100 million kg of tea annually across the

 Tea Market Shares:

Tata Tea - 21%

WB TEA PRODUCTS
ORGANIC TEA
ORGANIC DARJEELING TEA
ORGANIC ASSAM TEAM

WB PERFECT DLING 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 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 Groups 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 companys success is that Theyre 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 360degree marketing strategy to tap into this market.

 To gain visibility for its brands, the group is

planning to hike its advertising budget by 50 % .

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.