1

CONSUMER PERCEPTION TOWARDS TEA AND COFFEE

BARS IN THE DELHI-NCR

ABSTRACT

India consumes the largest quantity of tea in the world, accounting for nearly 14% of

global retail volume sales. Since tea is the most traditional and affordable beverage in

India, therefore, it is perceived as being old fashioned. Furthermore, in the south,

coffee is bigger as a proportion of total hot drinks than in the rest of the country. Local

preferences are different in the south, India's main coffee-producing region. However,

the scenario seems to be changing in India with the advent of “Tea-Bars” or “Cha-

Bars”, which are fashioned on similar lines as coffee-shops but offer tea as the main

beverage instead. These have been styled to appeal to the youth as a popular joint to

hang out with friends.

This research helps to analyze the branding process of coffee shops in India. This

report would give the overview of a brief description of the current scenario, customer

base and how these brands segment, target and position themselves in the market. Also

help doing a market survey of why one particular brand is more popular than the

others, market shares and branding tactics of the other players in this industry along

with a competitor analysis. The profiling of emerging tea bars across the country, their

customer base, segmenting, targeting and positioning and industry analysis. Finally,

this project would aim at comparing the market of these coffee shops with that of the

emerging tea bars across the country and also analyze the competition between the

branded and local tea/coffee shops.

World tea production in 2006 was 3523 million kilograms, 103.9 million kilograms more than

the previous year. India was the market leader at the international level with regard to

production and consumption till recently. However, the latest data (2006) depicted in Fig. 1

demonstrates that China, with 28.9 per cent share of the total world tea production, dominates

the market, followed by India with 27.1 percent.

2

India is the largest producer as well as consumer of black tea in the world. Though tea is

grown in 16 States of the country, but four States Assam, West Bengal, Tamil Nadu and

Kerala account for about 98% of the total tea production in India. The teas originating from

Darjeeling, Assam and Nilgiris are known for their distinctive quality world over. The tea

sector plays a significant role in the country’s economy and its exports constitute a significant

component of foreign exchange earnings. The tea industry also contributes revenue to the

state and national exchequers by way of sales tax, corporate, income tax, etc. Tea industry

provides direct employment to more than a million workers, about half of whom are women.

More than two million people derive their livelihood from ancillary activities associated with

the industry. However, the aging bush/plant profile is major constraint for further growth of

this sector. In view of this, the Government has identified replantation and rejuvenation of old

plantation tracts as an important ‘thrust area’.

Fig 1. Share of tea production-2006 (Source: Tea Board, Government of India)

Tea production in India during the year 2008-09 has been estimated at 972.77 million kg as

against 987.02 million kg achieved in 2007-08. Droughts like weather conditions were mainly

responsible for lower production of tea. During the period April-October, 2009-10, tea

production is estimated at 748.48 million kg against 742.61 million kg achieved during

corresponding period of last year showing an increase of 5.87 million kg.

3

Exports of tea from India, depicted in Fig. 1.2, during 2008-09 stood at 190.64 million kgs

valued at US$ 518.04 million with a unit price realization of US$ 2.72 per kg as against

185.32 million kgs valued at US$ 469.64 million with a unit price of US$ 2.53 per kg in 2007-

08. During the period April - October, 2009-10 exports of tea have been estimated at 111.52

million kgs valued at US$ 321.80 million with a unit price of US$ 2.89 per kg against 120.30

million kgs valued at US$ 334.61 million with a unit price of US$ 2.78 per kg during the

corresponding period of last year showing a decline of 8.78 million kgs in quantum and a

decline of US$ 12.81 million in value.

Fig. 2 Tea production & Exports (Source: Department of Commerce, Government of India)

Tea-Bars vis-a-vis coffee cafes

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. Since tea is the most

traditional and affordable beverage in India, therefore, it is perceived as being old fashioned.

4

For instance, malt-based beverages such as Horlicks (GlaxoSmithKline) and Bournvita

(Cadbury Schweppes), are the favorite type of hot drinks in the South, and are also the fastest

growing. This drink is consumed as a substitute for milk in this milk-deficient region, and is

favoured for its functional benefits. Furthermore, in the south, coffee is higer as a proportion

of total hot drinks than in the rest of the country. However, the scenario seems to be changing

in India with the advent of “Tea-Bars” or “Cha-Bars”, which are fashioned on similar lines as

coffee-shops but offer tea as the main beverage instead. These have been styled to appeal to

the youth as a popular joint to hang out with friends. Retail value sales of tea in India showed

positive growth of 2.5% during 2003-2008. Euromonitor anticipates that the future

development of the industry will be impacted by out-of-home consumption. A new

development is the emergence of the vending machine sector. The total number of vending

machines in the country was estimated at 45,000 in 2003, which included a large number of

unbranded machines. Vending machines sell coffee, tea and soft drinks, however, so for the

tea players it could be a double-edged sword.

India is developing to be more like the Western coffeehouse culture. There’s not a huge in-

home consumption market there, but definitely the retail cafe lifestyle is something that is

taking hold, particularly with the younger generation. Capitalizing on this trend, chains like

Café Coffee Day, Starbucks, Gloria Jean’s and Barista have announced plans to expand and,

will add thousands of new shops to India’s marketplace. In the more cosmopolitan cities of

India, there’s a cocktail culture that has developed. You have these higher-end bars that are

up-and-coming, and the younger people like to be at and be seen at [them]. And [people in

India] really understand better quality in terms of food and beverages, which makes for a

much easier transition into specialty coffee. Even so, India is still very much a tea-drinking

nation. Now the cafe culture has become big in India. Espressos are hardly consumed. It’s

mainly lattes and cappuccinos and a lot of cold coffees and frappes.

Like the specialty coffee industry in China, India faces the challenge of finding ways to

educate a mostly tea-drinking population about the fine distinctions between different coffees.

Specialty coffee in India has not yet matured, where consumers are aware of the nuances of

varietals and origin. The political upheaval in some parts of the world makes India look like a

more attractive place to open a coffee business. There are some companies that would have

5

looked at developing businesses in the Middle East and also in Africa that are seeing India as

a really attractive, stable market economy where they can set up shop and be able to conduct

business and expect to get some new profits from a new market that wasn’t there before—and

probably much more so than even China ‘There’s definitely a very well-educated, hard-

working young force of high school and college-age kids, recently graduated, that perhaps for

the first time in the country’s history are leaving school and going directly into white-collar

jobs,” Hetzel says. “I see that as the real driving force in specialty coffee right now.”

Market share

Café Coffee Day is the biggest player in the market with the maximum number of outlets and

the biggest market share at 41%, followed by Barista at 34%. Café Mocha, even with only 13

outlets across the country, holds a respectable 16% of the market share. UK giant Costa coffee

currently holds only 5% market share. Other chains such as Java Green, Quicky’s, etc.

together hold about 4% of the market share.

Fig. 3 Market share of key playes of coffee

Emerging Tea-Bars in India

Infinitea: Gaurav Saria founded Infinitea - India’s first Tea bar. Armed with a rich legacy of

tea his ancestors (the Saria clan) bestowed upon him, Gaurav set up Infinitea on Bangalore’s

up market Cunnigham Road. This tea bar was set up 4 years back at a time when India was

6

witnessing the coffee culture boom with café coffee day and barista outlets mushrooming on

every street. Gaurav and his wife Richa Saria decided to make their debut in Bangalore.

Bangalore has always been a favourite destination for most restaurateurs due to its abundant

and affluent cosmopolitan crowd that the IT growth has brought in. Sarias have been in the tea

industry for over a hundred years, they own tea estates in Darjeeling and Bengal. The

expertise that the family has gained over the years is reflected on their menu.

There are over 50 different kinds of teas (both hot and cold; with and without milk) on the

menu, and each comes with a little descriptor that tells you about the brew. About 27 of these

entries are dedicated only to the iced tea variety where the flavours range from the usual

Lemon and Peach to the more exotic Blue Curacao and Butter Scotch.

Passion – My cup of tea: Passion Company is all about having a passion for their people and

product and making our people passionate about Passion. Passion buys the best quality teas

and brews them by creating the best Indian chai beverages and also the best Iced Teas along

with a range of toasts, snacks and pastries to choose from. We believe in giving the customer

what he wants, thus originates ‘my cup of tea’. We aim to make each customer to identify us

as ‘Passion is my cup of tea’. Passion also sells Assam tea in Tea cartons of various sizes. It

will be selling Kettles, Passion Mugs and Passion Art. Passion Tea strives to make its tea

available for each and everyone at an affordable price. Its competitive advantage lies in

making its tea and service one of the best in the world. The secrets of making the best tea will

be unleashed into creating a signature in the future of the tea history. Passion has outlets in

New Delhi in Basant Lok and Saket.

Rationale of proposed study

This research helps to analyze the branding process of coffee shops in India. This report

would give the overview of a brief description of the current scenario, customer base and how

these brands segment, target and position them in the market. This research also help doing a

market survey of why one particular brand is more popular than the others, market shares and

branding tactics of the other players in this industry along with a competitor analysis. This

project would aim at comparing the market of these coffee shops with that of the emerging tea

7

bars across the Delhi NCR and also analyze the customer perception towards tea and coffee.

The objectives of the study were:

To analyze major players in the industry after studying all the key indicators like market share

and by their mapping.

To analyze the consumption behaviour of tea across the Delhi-NCR.

To understand the consumer behaviour in the Tea/Coffee bars.

To find out the difference in the branding activities of a multinational chain and that of local

players.

LITERATURE REVIEW

Shweta Jain (2011) identified the major factors as being responsible for India’s poor

performance are high input costs, the old age of the bushes, unskilled labor, and lack of

infrastructure, poor price realization, legal problems, outdated machinery, high fixed and labor

cost, inefficient Tea Board , inability to compete with other tea producing nations in terms of

price, quality, packaging, etc.; slow increase in world demand for tea as compared to the

subsequent increase in its supply, losing traditional international buyers and more inclination

towards domestic market in comparison to the international market. Analyzing all the aspects

in the study responsible for India’s poor performance, it is clearly evident that Indian Tea

prospects for bouncing back in the global tea market are very weak. Therefore, as of now, it

should focus on the domestic market; try to simulate the demand in this market to ensure that

it does not lose this portion to other players once the tea imports are open in India.

Subsequently, Indian practitioners should improve their export strategy by producing good

quality teas at competitive prices. To do the same, India needs to work in three directions

namely product development, marketing & promotion and institutionalization.

Basu Majumder and others (2011) observed that strategies must be adopted to meet up the

challenges in global demand for tea in the coming years. Besides, general consumption of tea,

health benefit effects of tea need to be promoted more vigorously to trap the nonconventional

areas of tea in the world for an expansion in the consumption. Value addition and

diversification for a wide range of tea products need to be developed for balancing the supply

demand chain.

8

GIA, (2011) The global economic slowdown marginally affected the consumption pattern of

tea and coffee, with both segments experiencing a small dent in sales both in volume and

value terms. In the year 2009, prices of tea increased as demand for tea increased in Russia,

East Europe and Middle Eastern nations. Falling tea production globally due to natural

calamities such as droughts and decreasing exports from Sri Lanka and Kenya resulted in

mismatch between global demand and supply for tea. This compelled consumers to either

purchase expensive tea or shift to other hot beverage alternatives, which in turn reduced the

average global consumption of tea in 2009. The economic crisis boosted the sales of low

priced varieties of green tea, which gained popularity with introduction of different flavours

such as Green Lemon, Green Decaf and Pure Green. The economic crisis also failed to affect

the sales growth of RTD (ready-to-drink) tea due to health benefits associated with the

product. RTD tea grew faster than soft drinks segment in 2008, as consumers grew more

health conscious, resulting from a slowdown in the purchase of carbonated drinks among

affluent consumers. By product segment, Coffee accounts for the lion’s share of the hot

beverages market, favoured by sustained demand from developed countries and specialty and

premium varieties. Conversely, despite its relative smaller market size and low consumption

levels, Tea, is slated to score over coffee in the long run in volume terms, on account of

factors such as economical pricing, new flavours and ‘healthy’ brand value, as new tea

drinkers join the brigade.

Dharwad (2008), observed that Tea is the most traditional and affordable beverage in India

and it is perceived as being old fashioned and less functional than some substitute products.

Malt-based beverages such as Horlicks (GlaxoSmithKline) and Bournvita (Cadbury

Schweppes), are the favourite type of hot drink in the South, and are also the fastest growing.

This drink is consumed as a substitute for milk in this milk-deficient region, and is favoured

for its functional benefits. Furthermore, in the south, coffee is bigger as a proportion of total

hot drinks than in the rest of the country. Local preferences are different in the south, India's

main coffee-producing region. Soft drinks such as carbonates also represent a significant

threat to the ongoing dominance of tea in the longer-term, with aggressive marketing

campaigns from leading multinationals successfully persuading many young consumers to

migrate from tea to soft drinks for various drink occasions.

9

RESEARCH METHODS AND PROCEDURE

The scope of this research is limited to the tea & coffee drinking population of the country. In

this research, the main focus is on the branding strategies of the Indian Branded Coffee-Shop

and Tea-Bar Industry, observed the growth pattern for last few years and tried to see the

potential of the industry in the forthcoming years.

It is an exploratory research and an organized and systematic way of finding answers to questions. In

this research for studying the branding of coffee shops and tea-bars in India, Exploratory Research is

designed to generate basic knowledge, uncover variables associated with the problem, uncover

information needs, and analyze the consumer behavior towards the coffee and tea-bars. It was a very

flexible, open-ended and structured process. Sample was small but representative. For the research

purpose certain prior information was required, which is collected through secondary sources.

Population: The sampling frame is the coffee-drinking and tea-drinking population,

consisting mainly of youth, in Delhi NCR.

Sample: The size of the sample taken was 100 which are apt to represent the complete

population.

Sampling design: The procedure of sampling is the simple random sampling, because all the

people visiting these shops belong to a group which is, majorly, of the same category, and

have been selected on a random basis. Hence, the complete population is a homogeneous

group of respondents who may differ on geographical front and income levels, but the

demands of the population will not vary to a great extent amongst each other.

Tools used for data analysis

The instrument that was chosen for this project would be a structured questionnaire containing

majorly of close ended questions. This instrument is chosen because it would cover all the

aspects of the project objectives chosen by the researcher.

The questionnaire consisted of the questions regarding-

Only Double Barrelled questions.

10

The responses to the questions did not require respondents to estimate facts, instead

specific examples were provided as and when required along with the respective

questions.

Questions were straight and not biased i.e. question themselves leading to a particular

answer were avoided.

Questions requiring implicit assumptions were also avoided. Respondents were not

required to articulate certain type of responses and the questions requiring respondent

remembering any fact, were removed.

Scales employed

Since, the study is related to analyzing the attitude of the respondents towards branded coffee-

shops and tea-bars; the attitude scale known as Likert scale is applied. Likert Scale used in

questionnaire was for close ended questions in which responses were ranked on the scale of 1

to 5. Response marked near to 1 indicated low preference for that particular factor whereas

response near to 5 indicated high preference.

Limitations of Study

a) The study was based on the assumption that the respondents will always be truthful and

correct. But this assumption might not be true always.

b) The study depends upon responses of the respondents, who are believed to be giving the

right information. Thus the accuracy of the survey and its findings depends a lot on the

respondents and their responses.

c) This sample size cannot represent the features and characteristics of the universe to its

entirety.

DATA ANALYSIS AND FINDINGS

The Fig. 4 shows the percentage of coffee and tea respondents. The 67% of the respondents

drink tea and 33% of the consumers drink coffee. With this it is easy to evaluate the liking of

consumer towards tea among coffee.

11

Fig. 4. Preference among Tea and Coffee

The graph (Fig. 5) shows the consumption of tea by the respondents in a year. The 34% of the

respondents are tea addicted and 32% of respondents are frequent /regular tea drinkers and

24% are occasional tea drinker, and 10% are herbal tea drinker. This helps to know the

frequency of consumers who drink tea or herbal tea.

Fig. 5 Tea consumption

The graph (Fig. 6) shows the consumption of tea by the respondents in a day. The 37% of the

respondents take 3-4 cups of tea in a day and 29% of respondents take 2cups or less cups of

tea in a day and 22% take 5-6 cups of tea, and 12% take 7-8 cups of tea in a day. This helps to

know the number of cup of tea consumed by the respondents.

12

Fig. 6. Tea consumption in a day

The graph (Fig. 7) shows the liking of tea brands by the respondents. The 31% of the

respondents take like TATA tea and 27% of respondents like Lipton and 22% of the

respondent like Taj Mahal, and 12% of the respondents like other brands. This helps to know

the most likable brand in the market.

Fig. 7. Liking towards tea brands

The graph (Fig. 8) indicates how often the respondents visited a coffee shop. Out of those

surveyed, 51% said they visited a coffee shop 2-3 times a week, and 19% visited a coffee shop

2-3 times a month. This is great opportunity for Barista and Café Coffee Day to attract

regulars with loyalty programs.

13

Fig. 8. Frequency of Visits

Fig 9. Preference of coffee shop

The Fig. 9 shows which coffee shop the respondents usually preferred to visit indicating that

31% of the respondents chose Barista and 38% chose Café Coffee Day and 22% chose Costa

Coffee, and only about 9% chose other coffee shops. This helps us to identify which areas the

coffee chains are doing well in, where they need to improve and where the opportunity for

growth exists.

The values of the graph (Fig. 10) illustrate how much money the respondents usually spend at

coffee shops. While the majority of respondents spent between Rs. 75 & Rs. 125 on a single

visit to an outlet, a high percentage also spent over 125.

14

Fig. 10. Money Spend at Coffee Shops

Fig. 11. Length of Visit

Fig. 12 Deciding Factor

15

The survey also asked the respondents how much time they would usually spend on a single

visit to a coffee shop. The graph shows that half of 38% would spend between 1 hour and 2

hours, and 28% would spend ½ hour to 1 hour (Fig. 11).

When asked about the most important factor that contributed to their choice of coffee café,

37% and 35% of respondents selected the taste of coffee/ food and the ambience/experience.

Only 19% of them choose value for money as their most important factor. This would indicate

a clear shift of consumer focus from price factors to service factors (Fig. 12).

Fig. 13. Important Services for a new tea bar

When asked about the most important factor that contributed to their choice of coffee bar/ Tea

bar, an equal number (32%) of respondents selected the taste of coffee/ food and the

ambience/experience. Only 20% of them choose value for money as their most important

factor. This would indicate a clear shift of consumer focus from price factors to service factors

(Fig. 13).

CONCLUSION AND RECOMMENDATIONS

Survey-1 From the first survey it is inferred that although the Tea-Bar offered just as

much variety at lower prices, and on a personal opinion, equally good taste, it lacked because

of not being able to create awareness for itself and not having branded itself properly. Since

the brand hasn’t been marketed and branded well, my suggestions to it are as follows:

It needs to go in for aggressive marketing tactics, such as newspaper and TV

advertisements.

16

It should rebrand itself as a stylish, hip joint for the youth.

It can also collaborate with some of the other brands for sponsorships or events, to make

the audience aware of its brand and also gain popularity.

For sales promotions, it can come up with offers combined with certain restaurants or apparel

brands.

Survey-2 Areas of Excellence: Both cafés have certain areas where they have been

consistently performing well. These are essentially the strengths of the brand, and Barista &

Café Coffee Day need to capitalize on these strengths to increase their market share and brand

loyalty. The main areas of excellence, based on the Case Studies & Market Survey, have been

identified as in BOX 1.

BOX 1

Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

Strong

Brand Image

Excellent

Human

Resource

Ambience

& Décor

Strong base

for

expansion &

growth

Highly

rated Taste

& Quality

of products

Value for

money

proposition

Strong

youth

orientatio

n

Barista has

a strong

and clear

brand

image.

Their

customers

can easily

identify and

relate to the

Barista

brand. This

helps in

increasing

and

maintaining

brand

loyalty.

Barista have

an excellent

service and

behavior of

their staff is

so good.

This is a

huge

advantage,

especially in

a service

organization.

Barista must

strive to

keep this

advantage.

Another

significant

area of

excellence

is the kind

of

ambience

and décor

Barista

cafés

have.

Barista have

worked hard

on their

brand image

and human

resources,

and have a

strong base

for future

expansion

and growth-

whether

nationally or

internationall

y.

There is

huge

potential for

them to

attract

customers,

just based

on the taste

and quality

of products.

They also

grow their

own coffee

beans, and

this

provides an

important

base for

future

expansion

and growth.

This

strategy

has

worked

extremely

well so far,

and Café

Coffee

Day got a

high

rating,

both for

their prices

and for

their value

for money,

in the

market

survey.

In a country

where over

40% of the

population

is under the

age of 20,

there is huge

potential for

Café Coffee

Day to

become one

of the

country’s

largest

youth

brands. The

untapped

market

share and

potential for

growth is

enormous.

17

Areas Needing Improvement: Local Tea/ Coffee Shop have underperformed or not

lived up to expectations in certain areas. The areas are weaknesses, which need to be

improved upon, as that both can eliminate any disadvantage that may have, and improve

customer satisfaction. The main areas needing improvement, based on the Case Studies &

Market Survey, have been identified as in BOX 2.

BOX 2

Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

Average taste & quality of products:

Perceived as an expensive brand

Inconvenient delivery process:

Weak brand image

Inefficient human resources

Ambience & Décor

According to

the market

survey, other

than their

Dessert,

Barista got

only an

average rating

for the taste &

quality of

their

products.

Considering

their strong

brand image

of being the

coffee-

lover’s

traditional

café, they

have not

performed up

to

expectations

in this area.

Customer

perceptions of

Barista’s

prices and

value for

money are

quite

negative.

Even though

the prices of

Barista and

Café Coffee

Day are

almost

identical,

Barista is still

perceived as

the more

expensive

brand.

On a

smaller

note,

Barista’s

self-

service

delivery

process

received

almost

unanimous

complaints

from

respondent

s of the

market

survey.

They

found it

inconvenie

nt to go

back to the

counter

just to

receive

their order.

The Café

Coffee Day

brand, although

clearly a youth-

oriented brand,

lacks the power

and strength

expected to

maintain brand

loyalty. The

brand doesn’t

project a clear

image to

customers about

what Café

Coffee Day is

all about. This

could prove as a

deterrent during

future national

and

international

expansion.

According to

the market

survey, Café

Coffee Day’s

staff received

only an

average

rating for

their

behaviour

and service.

Café Coffee

Day needs to

work hard at

this aspect,

especially

considering

they are a

service sector

organization

that is

looking at

large

expansion.

The Ambience

& Décor of

Café Coffee

Day outlets

received a

below- average

rating from

respondents of

the market

survey. A lot of

respondents

did not like the

fact that Café

Coffee Day

outlets and

literature

served as prime

space for a lot

of advertising

and

promotions.

They felt as if

the café’s had

been hijacked

just for

advertising.

18

Recommendations

Branded Tea/ Coffee Shop have much higher pricing then Local Tea/ Coffee Shops .So it need

to carry out a promotional campaign by Local Tea/ Coffee Shops to ensure that their target

market is well aware of their current low prices. This would help change customer perception

and turn it into an affordable brand.

Another backlash of having such a strong traditional café brand image is that customers have

very high expectations of the taste & quality of products. Local Tea/ Coffee Shops needs to

work hard at this aspect, especially for coffee and eatables products. The Local Tea/ Coffee

Shops need to look at its suppliers and coffee/ Tea making process to ensure that it is the best

it can be.

With regard to the physical evidence associated with the brand, Local Tea/ Coffee Shops

needs to do a lot of work if they hope to catch up with Branded Tea/ Coffee Shop. The

Branded Tea/ Coffee Shop need to clean up the décor at every outlet, wherever unnecessary

advertising is taking place. Although it might be an important source of revenue, long-term

customer perception of the brand isn’t very positive. Branded Tea/ Coffee Shop would do

better to provide promotional space for its partners with the use of clever collaborations, and

not printed advertisements and posters everywhere.

Conclusions

As per the study, which is conducted it can be said that major population prefer tea over

coffee. As they find it more refreshing and healthy because of the variety which is available in

the market and it’s also because of their addiction for tea. Consumer behaviour plays a major

role in choosing tea and coffee bars. The marketers of organic foods need to be innovative and

dynamic in order to complete with the changing consumer behaviour in the coffee and tea

market among urban residents. The importance of tea was ignored for quite a long period. As

results emerging tea bards in India can be a great threat for coffee shops. The study brought

out the fact that the people were well aware of factors which affect their decisions while

choosing a tea or coffee bar, also most of the consumers is loyal towards their choice. The

respondent without doubt attracted towards branded shops. So the marketers must create

promotions which are both realistic and more.

19

The consumer focus is also got shift from the price sensitivity to reliability. Consumers are

more conscious for good quality products than price. The Tea-Bar offered just as much variety

at lower prices, and on a personal opinion, equally good taste, it lacked because of not being

able to create awareness for itself and not having branded itself properly. Since the brand

hasn’t been marketed and branded well it needs to go in for aggressive marketing tactics, such

as newspaper and TV advertisements also it should rebrand itself as a stylish, hip joint for the

youth. It can also collaborate with some of the other brands for sponsorships or events, to

make the audience aware of its brand and also gain popularity. For sales promotions, it can

come up with offers combined with certain restaurants or apparel brands.

REFERENCE

Basu Majumder A., Bera B. and Rajan, A.(2010), “Tea Statistics: Global Scenario” Journal

of Tea Research, July 20103: 6(7), Pp – 9 -11.

Banerjee G D and Km. Sarda Banerjee (2004), “Sustainable Tea Plantation Management”

published in IASSI Journal January, March 2004; vol – 10 Pp: 12 – 22.

Dharwad (2008), “consumption Behaviour Of Coffee And Tea In Karnataka” Journal of

Coffee Research, July 2008, Pp – 41 -45 and 54.

GIA, (2011) “Global Industry Analysts, Inc. Report on Global Hot Beverages (Coffee

and Tea) Market” published in ICFAI Journal January, March 2004 Vol 46, No.10,

Pp- 431 -433.

ICO DBR(22nd October,2012), “Global coffee consumption rises in 2011” Journal of

Coffee Research, August(2012), Vol 36, No.10, Pp- 431 -433.

Jain Shweta (2011), “Indian Tea Industry -An Analysis Using Concept of Forward

Engineering” International Journal of Food Sciences and Nutrition, June 2011, 14(2);

Pp-17-38.

20

Annexure-I QUESTIONNAIRE

This questionnaire is a part of my Management Research Project. I would be grateful if you

could spare a few minutes and fill up this questionnaire

Q1) what would be your preference when you have option of having

a) Tea b) Coffee

Q2) Which of the following responses best describe your tea consumption in the past year?

(Include Hot and Cold Tea both)

a) Addicted

b) Frequent or regular tea drinker

c) Occasional tea drinker

d) Herbal Tea Drinker only

Q3) In a typical day, how many cups of tea do you drink?

a) 2 cups or less

b) 3-4 cups

c) 5-6 cups

d) 7-8 cups

Q4) How often do you drink tea on each of the following occasions?

Never Rarely Often Always

First thing after waking up in the morning?

1 2 3 4

With breakfast? 1 2 3 4

During your morning break? 1 2 3 4

With lunch? 1 2 3 4

During your afternoon break? 1 2 3 4

With dinner? 1 2 3 4

In the evening after dinner? 1 2 3 4

When going out for a meal at a restaurant?

1 2 3 4

When visiting friends or family? 1 2 3 4

When you are stressed? 1 2 3 4

21

Q5) Which Tea Brand you like?

a) Tata Tea b) Taj Mahal c) Lipton d) Brook Bond e) Others__________

Q6) How often do you visit a Coffee Shop?

a) Almost Daily b) 2-3 times a week c) 2-3 times a month d)Occasionally

Q7) What Coffee Shop do you usually go to?

a) Barista b) CCD c) Costa Coffee d) Others___________________

Q8) On every visit how much money do you usually spend at a Coffee Shop for a cup of coffee?

a) 0-25 b) 25-75 c) 75-125 d) over 125

Q9) How much time do you usually spend at a Coffee Shop?

a) Less than ½ hr b) ½ hr to 1 hr c) 1-2 hrs d) Over 2 hrs

Q10) What is the single most important factor for you to choose a Coffee Shop?

Out of the following please rank factors as per their importance:

1 2 3 4 5

Taste of coffee/Food

People/Service

Value for Money

Ambience/Experience

Q11) What services or amenities would you like to see in a new coffee/tea shop or added to an

existing shop?

a) Comfortable Tables and chairs

b) Live music at night

c) Late night hours

d) Nighttime poetry readings/book readings/poetry slam

Personal Details:

Name:

Age:

Profession:

Sex:

22

Annexure-II Comparison between Branded Shops and Local plaers

Questions Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

1) Taste and Quality Of Products: (1=Bad and 5= Excellent)

Tea/Coffee o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Other Drinks o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Eatables o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Desserts o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Your Comments:

Questions Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

2) Prices: (1=Cheap and 5= Expensive)

Tea/Coffee o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Other

Drinks

o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Eatables o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Desserts o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Your Comments:

Questions Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

3) Delivery of Product: (1=very slow and 5= quick)

Order Time o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Delivery Time o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Order Process o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Delivery Process o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Your Comments:

23

Questions Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

4) Staff: (1=Bad and 5= Excellent)

Behavior o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Manners o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Helpfulness o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Service o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Your Comments:

Questions Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

5) Ambience: (1=Bad and 5= Excellent)

Furniture & Decor o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Colors & Lighting o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Comfort & Feel o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Other Entertainment(music, TV, Etc)

o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Your Comments:

Questions Branded Tea/ Coffee Shop Local Tea/ Coffee Shop

6) Availability: (1=Bad and 5= Excellent)

The Coffee/Tea of

your choice

o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

The Drinks of your

choica

o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

The Eatables of your

choice

o

1

o

2

o

3

o

4

o

5

o

1

o

2

o

3

o

4

o

5

Your Comments: