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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.
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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: