Battle for the right brew

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: promotions bring short-term benefits. Our long-term strategy is to connect with consumers emotionally,” says Sangeeta Talwar, executive director, Tata Tea. The Har subah sirf utho mat/Jago re campaign of October 2007 laid the foundation of this strategy. “With that campaign, we had taken the route of social awakening to drive home the benefits of our brands—for the first time,” adds Talwar. “And it had worked very for us well for us.”

If living down its staid image with the new generation was a challenge, fighting fast food brands wooing the crowd with ready-to-drink flavoured teas seems like a battle of wits for tea marketers. Now the fangs are clearly visible and the two national players in the Rs 5,000 crore Indian branded tea industry will use all the weapons in their armoury—including freebies and discounts, accompanied by some slick advertising—to get their points across. They are beginning to focus more on the actual construction of the retail packaging, pushing marketing beyond the typical tea tin or cardboard box.

These players have a good reason to be upbeat. While India’s tea production is estimated to have declined to 940 million kg in 2007 from 957 million kg in 2006, domestic consumption rose to 810 million kg last year from previous year’s 785 million kg.Demand is growing reportedly in response to promotional efforts on the health benefits of tea. Medical research suggests that moderate consumption of tea offers protection against heart and blood vessel disease, some cancers, and bacterial infections, points out an industry observer.

This growing demand has also pepped up local brands such as Wagh Bakri, Good Morning, Society, Girnar, Jivraj and others. “Very soon, the branded tea sector will also witness a major tussle between national and regional players as Wagh Bakri, Duncan Tea, Society and Ganesh Tea are also sprucing up their acts to grab market share,” said an analyst based in Mumbai. With increasing competition, the sector is expected to register a 15% growth this year, predict industry analysts.