1. Saad Shammoot, Naeem Khan, Sean Reifinger
Tea Market Analysis
Saad Shammoot, Naeem Khan, Sean Reifinger

2. What type of product is Tea?
Experience Good
-- It’s something that is consumed and you can value it based on taste and health benefits
Private Good --It’s not available for everyone unless they purchase it (Rivalrous and Excludable)

3. How Does it Provide Value to the Customers?
Taste Enjoyable drink with Different types of tea with different flavor
Health
Contains antioxidants, reduces risk of heart attack, helps with weight loss, helps battle cancer, and boost your immune system.

4. What type of Competition is in this Market?
Monopolistic Competition: Many firms offer tea and it is not a perfect substitute, in the long run demand is highly elastic for example Starbucks’ Teavana brand, Coca-Cola’s Fuze and, the Snapple brand portfolio owned by Dr Pepper Snapple , and PepsiCo and Unilever’s Pure Leaf brand

5. Direct Competitors: Goodricke Group Ltd
Strengths
Weaknesses
1.  The company has 17 existing tea gardens owned by 8 Sterling Tea Companies
2. A good heritage and reputation stand for it as it was started around 1800s
3. The group is involved in many CSR activities which improves its brand visibility
4. It is backed by Camellia Group which is globally renowned
1. Highly fragmented market in India
2.It is labor-intensive industry and has associated issues like unorganized nature of small growers
3.Difficulties in introduction of mechanization of field operations due to topographical and quality limitations

6. Lipton Tea Strengths Weaknesses 1.Rich taste and flavor 2.Unique aroma
3.Good packaging
4.Good advertising/ brand visibility
Affected by moisture/storage problem

7. Starbucks Strengths Weaknesses
Has one of the most recognizable brands in the industry
Extremely high level of store presence
High visibility locations of their stores
Good supplier relationship
Lower turnover due to good health benefits package
Invented specialized coffee as a mass product
Loyal customer base willing to pay premium prices
No franchises, all company operated
Coffee is one of the last socially accepted addictions
Offers employees health benefits and a 401K
Offers employees tuition assistance
Voted one of the top ten companies to work for
Employees are low skilled
Products are more expensive and customers could easily switch to lower cost products in times of economic hardships
Aggressive expansion could lead  to a watered down effect
Increasing health conscious people, esp. younger generation
There is a constant increase in number of competitors
Employees are largely part-time
Starbucks

8. Twinnings Strengths Weaknesses
1. Oldest use company logo, give it’s a rich heritage brand status
2.Founding member of Ethical Tea Partnership
3. Rich image heritage
4. Offers wide variety of tea products
5. Immense contribution towards social responsibility has enhanced its brand image
1. Despite strong brand, awareness is not as much some other prominent brands
2. Intense competition means limited market share

9. Substitutes
Coffee
Soda
Water
Juice
Complements
Milk
Sugar
Honey

10. Customers
People in general regardless of age and gender High elasticity of demand

11. Suppliers

12. Externalities
The Positive externalities from tea consumption include lowering overall healthcare costs  as the people consuming tea enjoy its health benefits and do not get sick as often resulting in a general lower cost of healthcare for communities as a whole.  Moreover tea is a sustainable crop as only the top one to two inches of the plant are picked and it does not have to be ripped from the ground like other crops
Negative externalities from tea production include the use of pesticides along with lowering water supply and deforestation that affect natural habitats.

13. Role of government
Over 50

14. Entering the Tea Market?
No because of government regulations
Suppliers High Bargaining Power
Buyers Bargaining Power
Brand Loyalty