A STUDY ON CONSUMER PREFERENCE TOWARDS

RED LABEL TEA

A Project Report for the Partial fulfillment of the requirement for the Post Graduate Diploma
in Management.

At

Indus Business Academy, Bengaluru.

Under the supervision of

Dr.S. Ramesh, Indus Business Academy, Bengaluru

Submitted by:
Anu Upadhyay – FPB2022/035

PGDM 20-22
 DECLARATION

I, _Anu Upadhyay_, the undersigned, student of Indus Business Academy, Bangalore, declare that
this paper titled “A Study on Consumer Preference towards Red Label tea.” is submitted in partial
fulfillment of the requirement for the Post-Graduation Diploma Program in Management.

This is the original work and has not been previously submitted as a part of any other degree or
diploma of another Business school or University. The findings and conclusions of this report are
based on my study and experience. The information incorporated in this project is true to the best of
my knowledge.

Anu Upadhyay

FPBR2022-035

Indus Business Academy

 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude and deep regards to our mentor
Dr.S.Ramesh, for his guidance during the market research on “A Study On Consumer
Preference towards Red Label Tea ”, for his exemplary guidance, valuable feedback, and
constant encouragement throughout the project. His valuable suggestions were of immense
help throughout our project work. The perceptive criticism kept us working to make this
project in a much better way.
I would like to express my gratitude and thanks to my parents for helping me with immense
mental support whenever I needed it.

We would also like to give our sincere gratitude to all the respondents who had filled in the
survey, without which this research would have been incomplete.

Date: Anu Upadhyay

13/06/2021 Fpbr2022-035
 TABLE OF CONTENTS

1.ABSTRACT...........................................................................................................................................5
2.INTRODUCTION..................................................................................................................................6
2.1. Literature Review.......................................................................................................................7
2.2 Objectives of the Study:..............................................................................................................8
2.3 Hypothesis:.................................................................................................................................8
3.RESEARCH METHODOLOGY...............................................................................................................8
3.1 Type of Research.........................................................................................................................8
3.2 Sampling:.....................................................................................................................................8
3.3 No. of Sample Size:.....................................................................................................................8
3.4 Sources of Data:..........................................................................................................................8
3.4 Data Analytical Tools:.................................................................................................................8
4.DATA ANALYSIS AND INTERPRETATION............................................................................................9
5.HYPOTHESIS TESTING......................................................................................................................21
6. FINDINGS.........................................................................................................................................21
7. SUGGESTIONS AND CONCLUSION..................................................................................................22
8. REFERENCE......................................................................................................................................22
9. ANNEXURE......................................................................................................................................23
1.ABSTRACT

There isn't a single person on the planet who isn't addicted to something. Tea is one of these
vices. Call them tea addicts or tea lovers, but tea is essential to their survival. It is undeniable
that people's tastes change over time. It evolves with time. Tea is ingrained in the social,
economic, and cultural life of India. A day without their favorite cup of tea is unthinkable for
Indians. It is the world's most popular non-alcoholic beverage, enjoyed by both the rich and
the poor. Tea is the most widely consumed beverage, and it is consumed at high social
gatherings in many countries. Regardless of its widespread use, consumer behavioral patterns
change over time, and these changes are driven by a variety of elements such as brand
popularity, loyalty, aroma, color, price, and many more.

The focus of this paper is on consumer preference towards Red Label Tea Powder. The brand
name is an important factor to consider while purchasing things. In our market, we have a
variety of brands. However, the majority of individuals are unaware of this. Customers often
choose merchandise from well-known brands. Consumers today choose a variety of
beverages; among the brands, they select Brook Bond Red Label tea, which is one of the
oldest and most well-known tea brands since it is rich in antioxidants.

Keywords: Consumer preferences, consumer behavior, Preference, Tea

2.INTRODUCTION

It's a good idea to conduct a poll, regardless of the brand or product, to get a sense of which
brand or product consumers prefer. It's the first step toward figuring out where a product falls
short, what its strongest feature is, and how it compares to other businesses. Tea is necessary
for everyone's life, which makes it an important product to be evaluated among the other
things that require this analysis. It is no secret that tea is consumed by 80 percent of the
world's population. This aromatic beverage is thought to be a quick treatment for relieving
tension in the body, calming worry in the mind, and leaving individuals feeling rejuvenated.
Surveying Red Label Tea.

“Swad Apnepan ka” (Taste of Togetherness)

Brooke Bond founded Red Label, which is now one of India's most popular tea brands.
Brooke Bond Red Label has revolutionized the way people consume tea since then.

Red Label is a 107-year-old brand with a strong brand equity and tradition in India. It is the
country's second-largest tea brand. The Brooke Bond portfolio's the oldest and largest brand
in India.

Tea was once consumed for refreshment or just as a habit. Brooke Bond Red Label
collaborated on the creation of one of India's most popular beverages, chai. Brooke Bond Red
Label Tea is a combination of CTC teas prepared in the Brooke Bond Tea Excellence Centre
with the highest grade leaves.

Brooke Bond Red Label is an Indian blend created in tea processing plants in Assam,
Coochbehar, Darjeeling, and sections of Meghalaya. Withering (allowing tea leaves to dry),
rolling/cutting (which initiates a complicated series of chemical changes known as oxidation),
drying, and finally grading into sizes are all part of the tea manufacturing process.

Red Label has a mix of 5 ayurvedic ingredients – Tulsi, Ashwagandha, Mulethi, Ginger,
Cardamom, which provide refreshment and relieves headache, and is affordable with good
Smell and it has a cheaper pack for rural areas. Kanam Devan Tea, Taj Mahal, Three Roses,
Agni, and Tata Tea are some of Red Label's main competitors.
2.1. Literature Review

R.Mohana and DR.K.Kamalakannan (2018), The purpose of the study is to determine the
consumer's brand preference for tea brands in Thoothukudi. The research is based on a survey
with 65 participants. The research relies on both primary and secondary data sources.
According to the findings, the majority of respondents choose Tajmahal Tea and agree that
they prefer green tea for diet assistance, however, green tea is expensive.

Satnam Kour Ubeja and Dhara Jain (2013), The study is limited to the city of Indore to
determine if Branded or lose tea is preferred by consumers. According to the study, the tea
sector has been rising at a rate of up to 30% every year. The questionnaire-based study is the
foundation of the research found that out of 110 consumers, 90 chose branded products.
According to the findings of the study, marketers might offer a larger amount for the same
price.

Satnam Ubeja and Sopanmayee Acharya (2018), The research compared Lipton Green tea
to organic India tea. Data is gathered through the use of a questionnaire. According to the
findings of the study, customers prefer Lipton Green tea to Indian Organic tea. This could be
attributed to the fact that the natural food business in India is still in its early stages, and
people are often hesitant to try something new.

Thiyagaraj. V (2015), This research is limited to the city of Tiruppur. The study's goal is to
determine which brand of tea is most popular in Tiruppur. Percentage analysis and chi-square
are used to analyze the data. The study demonstrated that there is a difference between age
and tea brand choice. According to the survey, tea brands could provide higher quantities for
the same or lower price. The study concludes that marketers should focus more on quality.

Sharma.M (2013), Consumer preferences are defined as subjective (individual) tastes of

various bundles of products as assessed by the utility. They allow the user to rank these
bundles of commodities based on the levels of utility they provide. It is worth noting that
preferences are unaffected by wealth or prices. A consumer's likes and dislikes are not
determined by his or her ability to purchase items. This term is generally used to refer to the
option with the highest expected value among a set of options.

Mahavir Singh and Dr.Anita (2012), The study's burden is to discover tea consumers'
purchasing habits. According to the survey, tea penetration is up to 77.2 percent on average.
The study also revealed that price, presents, consumption hours, appealing facilities, brand,
quality standard, and packaging are all elements that influence tea purchasing behavior. The
study derives the conclusion by recommending that businesses implement tactics to compete
with their rivals.
2.2 Objectives of the Study:
1. To study the consumer loyalty for Red label tea powder.
2. To study the competitors to this tea powder in the market.

2.3 Hypothesis:
H0: Customers do not prefer Red Label Tea more than any other tea brand
H1: Customers do prefer Red Label Tea more than any other tea brand.

3.RESEARCH METHODOLOGY
Research Methodology solves the research problem. It can be thought of as a form of
scientific inquiry. The data is collected in Bangalore, India. This includes primary data
collection by surveying analysis and interpretation of data.

3.1 Type of Research

It is a descriptive type of research. This means that this research is to undergo research
question, analysis of data. The data must be appropriate and accurate to analyze. There are
two types of data collection methods used:

1. Primary Data: The study used data collected from handing out a questionnaire through
a google form.
2. Secondary Data: The study collected secondary data by referring to some specimen of
the company and by referring to some books and websites of the company from the
internet

3.2 Sampling: Simple Random Sampling is being used to choose samples with the
procedure that ensured that each possible sample had an equal probability of being included
in the sample.

3.3 No. of Sample Size: 55

3.4 Sources of Data: In and around Bangalore

3.4 Data Analytical Tools:

 Ms. Excel
 Descriptive analysis and ANOVA Analysis
4.DATA ANALYSIS AND INTERPRETATION

1. Gender

Table No.1

Particulars No.of Respondents %

Male 27 49

Female 28 51

Total 55 100

Gender
30 28 27
25
20 Total
15
10
5
0
Female Male

Interpretation: From the above Chart we can interpret that 51% of the respondents are
female and 49% are male. It is inferred from the above table that their Female respondents
are 51%.
 2. Age of the Respondents
Table No.2
In
No of Percentag
Particulars respondents e
<15 4 7%
15-20 5 9%
21-25 34 62%
26-30 7 13%
>30 5 9%
Total 55 100%

Age
40 34
35
30
25
20
15
10 5 7 5
4
5
0
<15 15-20 21-25 26-30 >30

Interpretation: From the survey, it can be observed that 62% of the respondents were
between 21-25, 13% of the respondents were between 26-30, rest 9% and 7% were between
15-20 and less than 15 years respectively.
 3. Occupation

Table No.3

Particulars No.of
Respondents

Business 4

Homemaker 3

Retired 3

Service 8

Social worker 1

Student 36

Total 55

Occupation
7%
5% Business
5% Home maker
Retired
Service
Social worker
15% Student

65%
2%

Interpretation: According to the data, 65% of respondents are students, 15% of the
respondents are doing services, 6% are housewives and 5% are retired persons.
 4. Region

Table No.4

Particulars No.of
Respondents

North 7

South 16

Central 23

East 9

West 0

Total 55

Region

Central
East
29%
North
42% South

13%
16%

Interpretation: According to the data, 42% of the respondents are from Central, 29% are
from South, 16% are from East India and 13% are from North. It is inferred from the above
table 42% are from central Bangalore.
 5. Which tea do you prefer? 

Table no.5

Particulars No.of Percentage

Respondents

Regular 43 78

Herbal 3 5

Green 5 9

Black 4 7

Total 55 100

Preference
Regular 43

Herbal 3

Green 5

Black 4

0 5 10 15 20 25 30 35 40 45 50

Interpretation: According to the data, 78% of the respondents prefer Regular Tea, 9%
consume Green tea,5% consume only black tea and only 3% prefer Herbal Tea. It is inferred
from the above table that 78% consume Regular tea.
 6. Which brand of tea powder are you using?

Table no.6

Particulars No.of Percentage

Respondents

Red Label 51 93

Wagh Bakri 1 2

Taaza 2 3

Taj Mahal 1 2

Total 55 100

Brand

Wagh Bakri 1

Taj Mahal 1

Taaza 2

Red Label 51

0 10 20 30 40 50 60

Interpretation: According to the data, 93% of the respondents buy Red Label tea as
compared to other tea brands which are less than 5%.It is inferred from the above table that
Red label tea powder is preferred more in number.
 7. Do you think the price of Red Label tea powder is affordable?

Table No.7

Particular No.of Percentage

s Respondents

Yes 51 93

No 4 7

Total 55 100

Aff ordable

60
50 Total
40 51
30
20
4
10
0
No Yes

Interpretation: According to the Survey, 93% of the respondents say that the price of this
tea is affordable, and the rest 3% says No.
 8. How long are you consuming Red Label tea?

Table No.8
No. of
Particulars Percentage
respondents
1 year 17 31
2 year 15 27
3 year 6 11
More than
17 31
3 year
Total 55 100%
Source Survey

17 15 17
20
15 6
10
5
0
1 2 3 More than 3 years

Interpretation: According to the given data, 31% of the respondents are consuming Red
label for more than 3 years and 27% are consuming it for 2 years.
 9. Purchasing portion of the Red Label Tea.

Table No.9
No. of
respondent In
Particulars s percentage

100 grams 13 24

250 grams 13 24

500 grams 10 18

1 kg 19 34

Total 55 100.00%

Source Survey

500 gm

250 gm

Total
100 gm

1 kg

0 2 4 6 8 10 12 14 16 18 20

Interpretation: According to the data, 34% buy 1 kg pack, 24% buy 100 and 250 gm pack
and rest 18% buy 500 gm pack.
10. Factors influencing Red Label Tea

Table No.10
Strong
Stron ly
 Particul gly Agr Neut Disag disagr Tot
ars agree ee ral ree ee al
Brand 24 10 10 3 8 55
Fragranc
e 25 13 12 3 2 55
Price 17 13 11 10 4 55
Taste 26 14 6 6 3 55
Quality
of tea 25 11 9 5 5 55
Total

Strongl Agre Disagr Strongly

 Particula y agree e Neutr ee disagree
rs % % al % % %
Brand 44% 18 18 5 14
Fragrance 45 24 22 5 4
Price 31 24 20 18 7
Taste 47 25 11 11 5
Quality 45 20 16 9 9
Source Survey
 30

25

20

15

10

0
Agree Disagree Neutral Strongly Agree Strongly Disagree

Brand Price Quality Taste Fragrance

Interpretation: According to the data, the No.of respondents who strongly agreed with the
brand is 44%, and strongly disagreed is 14%. For Price No.of Respondents strongly agreed
31%, For Quality its 45%, For taste, it's 47% and For Fragrance, it's 45%. It means that the
Factors are in favor of Red Label Tea.

11. Recommendation for Red Label Tea.

Table No.11

Particular No.of %
s Respondents
Yes 42 76
No 3 5
Maybe 10 18
Total 55 100
 Recommendation

Yes 42

No 3

Maybe 10

0 5 10 15 20 25 30 35 40 45

Data 11: According to the data, 76% of the respondents will Recommend further.

12. What changes you would like to see in this brand?

Table No.12

Particulars No.of %
Respondent
s
Better 12 22
packaging
Improved 12 22
quality
More 31 56
quantity
Total 55 100
 31

12 12

Better Packaging Improved Quality More Quantity

Interpretation: From the Survey, 56% of the consumers are expecting more Quantity in the
pack of Red Label as compared to better packaging and improved quality.

5.HYPOTHESIS TESTING

Table No.1

SUMMARY
Averag Varianc
Groups Count Sum e e
Agree 5 61 12.2 2.7
Disagree 5 27 5.4 8.3
Neutral 5 48 9.6 5.3
Strongly Agree 5 117 23.4 13.3
Strongly Disagree 5 22 4.4 5.3

Table No. 2

ANOVA
Source of Variation SS df MS F P-value F crit
2.02E- 2.86608
Between Groups 1160.4 4 290.1 41.5616 09 1
Within Groups 139.6 20 6.98

Total 1300 24        
Interpretation:

The ANOVA result shows that the calculated F value is 38.74884, which is more than the
table value of F critical is 2.866081 at 5% level of significance and the P value is 2.02e-09
which is less than 0.05(level of significance) that means Customers do prefer Red Label tea
more than any other tea brand. Hence the null hypothesis is rejected and the alternate
hypothesis is accepted.

6. FINDINGS

The data collected and analyzed and general observations have proven that the Brooke bond
Red Label Tea Powder has done a remarkable job in the market. Customers trust this brand.
 It is observed that people are aware of this brand, they are well aware of the
availability of this brand in the market.
 It is found that 93% of the respondents say that the price of this tea brand is affordable
and it is affordable to everyone.
 It is found that 31% of the people are consuming Red Label for more than 3 years.
This shows that Red label has done a great job in the market.
 It is observed that 34% of the consumer buys a pack of 1kg. People are using more in
quantity.
 Quality is the important factor which inspires almost 45% of the people to prefer it.
Later taste and brand are also an inspiring factor having 47% and 45% of the people
preferring it respectively and Fragrance of the tea is also an inspiring factor too as
Red label tea powder contains Natural herbals for good taste and health.

7. SUGGESTIONS AND CONCLUSION

 From the survey, the researchers come to know that the Red Label should make
Discount coupons, a promotional strategy to reach a large number of customers and to
increase the sales in the market.
 More promotion of this tea powder is expected, according to the respondents. As a
result, there is a considerable requirement for this tea powder to be advertised to
compete with its larger competitors.
 The most motivating factor is quality. It has prompted 45% of people to purchase this
tea powder. As a result, there is a great need to deliver better tea quality than what the
 company now offers with existing tea powder, the quantity should be increased as
well.
 Customers also expect an increase in quality and quantity, thus the brand must meet
these expectations to maintain customer Brand Loyalty.

8. REFERENCE

 D M Arvind Mallik and Pradeep – 2018. A Study on consumer preferences for Health
Drink. IOSR Journal of Business and Management - IOSR-JBM.
 Diganta, Kr. Mudoi and Dr.Subit Dutta – 2018.Organic Tea products: A Study on
perceptions of Consumers in Golaghat district of Assam. IOSR Journal of Business
and Management.
 Harsh V. Verma, Research Gate.
 Kiran and Pradeep Kumar. (2018). Study of antioxidant properties in black tea and
green tea. International journal of current microbiology and applied sciences.
 R. Mohana and Dr.K. Kamalakannan. (2018). A study on consumer brand preference
towards green tea in Thoothukudi city. International journal of commerce
 K. Uma Ambikai and Dr.R. Selvaraj. (2017). A study on consumer behavior with
special reference to the consumption of tea in Ariyalur town. International journal of
commerce
 Amit Malhotra and Aditya Gautam. (2016). Hrm practices and employee attrition: A
gender centric analysis of Indian Tea Industry. International journal of recent
technology and engineering
 M.Chandrakumar et al. (2016). Buying and consumption behavior of tea in
Coimbatore district. Tamil Nadu. International journal of research on business
management.
9. ANNEXURE

Name:

Gender:
1) Male
2) Female
3) Others

Age 
1) <15
2) 15-20
3) 21-25
4) 26-30
5) >30

Occupation 
1) Student
2) Service
3) Business
4) Homemaker
5) Retired
6) others
Region
1) North
2) South
3) Central
4) East
5) West
Which tea do you prefer? 
1) Herbal
2) Black
3) Green
4) Regular

Which brand of tea powder are you using? 

1) Red Label
2) Taj Mahal
3) Taaza
4) Wagh Bakri

Do you think that price of Red Label tea powder is affordable? 

1) Yes
2) No

How long are you consuming Red Label tea? 

1) 1
2) 2
3) 3
4) More than 3 years

How much portion of Red Label tea powder do you buy? 

1) 100 gm
2) 250 gm
3) 500 gm
4) 1 kg

How will the following factors influence you to buy Red Label Tea? (Brand, Price, Quality,
Taste, Fragrance)

1) Strongly Disagree
2) Disagree
3) Neutral
4) Agree
5) Strongly Agree
Describe your experience of taste on having this tea? 

Would you recommend this tea powder to others also? 

1) Yes
2) No
3) Maybe

What changes you would like to see in this brand? 

1) Better Packaging
2) Improved Quality
3) More Quantity

Give your valuable suggestion to improve Red Label tea.