Market Environment Analysis: Washing Machine

Consumer Behaviour Analysis: Tea

Marketing Management 1
Section G

Submitted to
Prof. Devashish Das Gupta

(GROUP-3)

2021

Indian Institute of Management, Lucknow

Table of Contents
Market Analysis of Washing Machines in India 1
Political environment 2
Economic environment 2
Socio-cultural factors 2
 Technology 2
Environmental 2
Legal 2
Microenvironment analysis of the company 2
Macro environment analysis of the company 2
Opportunities for the company 2
Marketing environment changes 2

Consumer behavior analysis of tea in India 4

Introduction 5
Abstract 5
Scope of the study 5
Types of consumer behavior 5
Research Methodology 5
Primary research overview
Consumer behavior and market trends 5
Buying decision process of tea in India 5
Problem Recognition 6
Information search6
Evaluation of alternatives 6
Purchase decision 6
Post Purchase behavior 6
Marketing Implication 5
Executive Summary 5
References 5
 MARKET ANALYSIS OF 
WASHING MACHINE IN INDIA
Over the forecast period, India's washing
machine market is expected to rise rapidly.
Washing machines are a well-liked choice
for laundry clothes since they save both
energy and time. Various technological
advancements in washing machines are
made within the recent decade, leading to
increased efficiency in terms of saving
electricity and water. A washing machine
is powered by water. This has also allowed
important industry players to capture a
substantial share of the washer market.
Furthermore, the govt has recently  
launched many efforts aimed mainly Market Leaders in Indian Market: 
towards the event of rural households, and
with a rise in India's per capita income, On the Indian market, there are 34 companies
demand for laundry machines is probably selling washing machines. LG is the market
leader in the industry with 29% market share
going to rise.
followed by Samsung (18%), Whirlpool
India has a washing machine size of 6.5 (16%), Godrej (11) and others.
million units with the lowest penetration  
level of 11 percent. The market size in  
2018 was found to be near about Rs. 9571
Crore with automatic machine portion has
a share of whopping 62 percent.
 

Type of washing machines in Indian

market: 

 Air dresser 
 Dryer 
 Washer only 
 Washer with dryer 
 A fully automatic front load 
 Fully automatic top load 
 Semi-automatic top load 
 
Indian Washing Machine Market: End-
Use
 
The market is divided mainly and broadly into
two categories based on the end-use of
 
washing machines i.e. commercial and
 
residential. The demand for washing machines
 
for households in India is predicted to grow
further in the next few years due to an increase Political Environment: 
in disposable income and a decrease in the
average selling price of the washing machine.  Current State
                         
The GST rate for household electronic
appliances like washing machines is fixed at
28% and it is very likely that 2-3% of the
burden is being transferred to the customer and
the total aggregate custom duty on the washing
machines is 40.8% which is enormous and
make the washing machine out of the reach of
the average Indian. 

Made in India Campaign is focused on

manufacturing washing machines in India
and In 2018, around 5 million washing
machines were manufactured in India and it is
estimated that the market size of washing
machines will reach USD 1698 until 2026. 
China is the biggest producer
of washing machines in the world as their
production reaches 76 million units in 2016.
But, India’s relation with China is continuous
on a roller coaster ride which can affect the
washing machine industry of India.  washing machine market growth
Economic Environment
Reduction in GDP - The per capita GDP has
reduced nearly 10% from 2019 to 2020, owing
mainly due to Covid. This economic
slowdown can reduce the market for Washing
machines. But it is predicted that it will
increase from 2021 - 2026.  demand for the washing machine.
      
washing machine industry growth rate - The
Washing machine industry is expected to grow
at a CAGR of 3 % while the fully automatic
washing machine will grow at a rate of 5.6 %  
Higher electricity consumption affects and the
 
Social-Cultural Factors
Rising Growth of Urbanization spiking
market development: 
Better infrastructure, corporate rise, better
school and colleges, and the presence of
hotels, motels that require a quick laundry
cleaning process has clearly spiked the
 

Per capita income – The per capita income of
India has increased around 3% though there is
a decrease in the GDP.
Exchange rates - The exchange rate
of Indian rupees vs the US dollars is
continuously increasing from 2009, there is a
slight dip in the past year with the exchange
rate around 73 rupees. The exchange rate will
affect the companies who make imports &
exports.   machines.
Upsurging growth of the Apparel and
fashion industry: 
There is a continuous shift in the fashion
industry across various cultures and this results
in high demand for fashion garments and
apparel. According. to The World Bank the
total consumption will increase from 62
million metric tons in 2019 to 102 million
metric tons in the period of 10 years which
will increase the market size of washing
 

Unemployment rate - The unemployment rate Needed for work-life balance for a working
of 2020 hit a spike of 7.11% due to the impact couple:  
of covid. Still there are lockdowns being The washing machines have become an
imposed which causes unemployment.   alarming need in the face of continuous
increase in the number of working couples in
skilled and unskilled sectors for maintaining
the work-life balance in their life. 
 
 
 Technology
Adequate tech advancement for operations-
The country does not have the adequate tech
infrastructure to build manufacturing tech.
Typically the technology needed is imported
from other countries. 
Cost & availability of Technology - As the
tech is to be ordered & imported from other
countries, it’ll take a lot of time to set up a
manufacturing facility. The import will drive
up the cost of the technology and in addition
there are higher tax rates for imports. 
Environmental
 
Water Pollution:
Every time you run that washer; you'll be
releasing over 700,000 microscopic plastic
fibers into the environment. These plastic
fibers can poison the aquatic animals that
accidentally
induce them.
Water-usage:
Depending on the sort of washer you employ,
up to 40 gallons of water could also be used
per a load of laundry. if we continue this
behavior the environment and humanity will
face serious consequences.
Electricity-Usage:
The washer utilizes a big amount of energy to
heat up the water system so as to scrub the
garments, when these fossil fuels are burned to
supply that energy, this will contribute to the
worldwide warming crisis, meaning water
level rise and dangerous weather changes.
Future step for the industry:
A 2013 report by the American Council for an
Energy-Efficient Economy and therefore the
Natural Resources Defense Council Water
suggests that upgrades of economic washing
machines may result in savings of 9.3 to 29.6
gallons of water.
So, it's necessary to bring out the important
changes within the technology or the policies
of the producers in order that the washer
industry can thrive.
Legal
India has one of the stringent labour laws as it
is a socialist country. But now the labour laws
are slowly slackened to support the businesses
and the government outlook in also looking
very positive towards the business if we look
at our industry particularly.
There are various safety rules under the
factories act, 1940 which every company has
to adhere in order to run their plant
successfully and without any disturbances.
There are no complex entry and exit laws are
in placed in India currently which is currently
try to attract the FDI in order to boost the
economy GDP.
Consumer protection rights also affect the
industry which persuades a company to adhere
to the rules for satisfying the consumer and
avoiding any defrauding activity in the
organization, and the companies are expected
to provide the after-sales services in order to
maintain the consumer royalty and saving
himself from the legal proceedings.
 
LG: A Market Leader  
 
LG is the market leader in the washing
machine industry in India. LG has 37% market
by volume and has 29% market share by
revenue in FY2020.  Company produces semi-
automatic washing machines, fully automatic
washing machines (front load and top load)
and dryers. In fully automatic segment, Front
load machines reign 60% of the revenue share.
Company also produces other home appliances
like TV & Refrigerator but washing machine
machines forms the largest product category
for the company with a contribution of 65% of
the total home appliances’ revenue.  
The company’s market is dominated by fully
automatic machine with a share of 64% while
the semi-automatic washing machines have a
share of about 25%.  
The company has set up 2 manufacturing sites
in India in Pune and Noida which caters to the
demand from India. It also exports 10% of its
produced units to some middle- east countries. 
The Company plans to focus on growing this
category further given that there is very low
market penetration and huge potential with intense. The competition leads to continuous
new energy and water saving technologies.  innovation in the sector, thus increasing the
rivalry. The homogeneity in the product and
low switching cost is also one of the prime
Market share by Revenue reasons for the fierce competition enjoyed by
this industry. 
for XYZ   
Threat of New Entrants 
11% Fully automatic
Semi-automatic As the industry is oligopoly, and it’s a highly
Dryers capital-intensive and major players have
25% developed brand equity, so there is less threat
from the new players. But here the brand
64%
loyalty enjoyed by the players are moderate. 
  
Threat of Substitute Product 

  As there is no product differentiation, and the

technology advancement included in the
Micro-environment Analysis of product has increased. The buyer has
the Company tremendous prosperity to substitute, so the
   company enjoys medium threat from this
Porter's Five Forces Analysis can reveal the factor 
profitability of a specific market segment as   
well as the power balance that exists within it. Bargaining power of suppliers 
To accomplish so, we only need to evaluate
the five elements listed below. 
As product differentiation is very low, so by
 Buyer power 
changing the inputs, the firms cannot
 Supplier power  drastically differentiate on price. Also, there
 Competitive rivalry  are many suppliers for the components, and
 The threat of new entrants  the company purchases them in bulk.
 Threat of substitution  Suppliers in an agreement do not enjoy the
bargaining powers. 
    
Bargaining power of Customers 
 As with the fast and efficient exchange of
information, this has made the customers to be
powerful. The threat is high under this section
as the buyer’s switching cost is very less. 
 
 
Macro Environment Analysis of
Company
PESTEL Analysis is a strategic framework
used to evaluate the external environment of
   the business by breaking down the
Competitive rivalry  opportunities and risks into 
Political, Economic, Social, Technological, E
The product is an augmented product, as there nvironment and Legal factors. 
are large numbers of players in the consumer   
washing machine industry, the competition is Political

Washing machine industry attracts 28% GST
and an additional custom duty of 20%. This
has led the company to set up its
Manufacturing plants in India itself. The
company has set up two manufacturing plants
in India which satisfies the demand from the
domestic market. It also exports 10% of its
productions to some middle-east countries. 
  
Economical
 
Company XYZ has 29% market share (India)
in 2020 which is around 3000 crores with 2
million units being sold. The company has lost
some of its market share to smaller companies
in previous years.  The rise in number of
people in middle class and increase in their
average income per annum has led to huge
demand of electronic appliances in Indian
market as these appliances have now become
affordable to increasing number of people. 
Availability of these appliances on EMI has
also seen a rise in demand.     
Social
Most of the demand of the washing machine
comes from middle class urban population.
India is among the countries which has seen a
very large increase in middle class population.
It is expected that about 55% of the population
will belong to the middle class which could be
largest in the world.   1) In
Increase in dual-earner household and
increased time constraints has led to washing
machine demand. The company is perceived
as a high-quality washing machine
manufacturer. So, many of the 2nd or 3rd time
buyer usually want improvement in the quality
of the washing machine compared to the
previous washing machine they used. Many of
these customers tend to buy this company’s
product.  
Majority of the market share comes from
domestic usage (about 70%). Commercial
Usage market have a demand which majorly
consist of fully automatic machine.   3) The government is working towards
 
Technological  rural areas, this will facilitate the usage of
Offers fully-automatic and semi-automatic
washing machine. The company’s focus is on
improving the efficiency of water and energy
usage of the products. The company recently
launched a new fully automatic washing
machine which is 40% more energy efficient
and 30% more water efficient compared to
other models in the price range. The product is
among the most demanded product of the
company.  
  
Environmental Factors
Demand of the washing machines are mostly
concentrated in areas where energy and water
are easily available and in ample amount.
Reduction in availability of water largely
reduces the demand of washing machine. The
company’s research focusses mostly on
improving the energy efficiency and water
usage efficiency. The more efficient models
are more attracted in the market. 
  
Legal
In India, the company is set to follow the basic
energy efficiency of the product and labeling
the energy requirements and efficiency of the
product. A new law of “Right to repair” is
proposed in the legislation and is expected to
be passed and implemented in next few years.
The company is already taking steps to
improve its customer services. 
Opportunities for the Company
  
the Low-cost segment, other
competitors 5-star electricity rated products
and with 10% lower cost. If we achieve a 5-
star rating & also reduce our cost,
we would have a good opportunity attracting
the customers of the competitors. 
2) The Fully automatic washing machine
market is growing at a high pace of 5.6%. We
should adopt a penetrative pricing strategy to
capture the growing market and also to
penetrate the rural market, as the competitors
are providing nearly 10% lesser price for the
same specification. 
providing pipe facilities to all the houses in
washing machines along with the increased
availability of electricity in rural areas. We
should build a strong distribution network in
rural areas to capture the rising rural market 
4) Hard water is a common problem in various Sponsored Brand Ads – 
places in India. Usage of hard water for
washing damages and dulls the color of the
fabric. The company is working incorporating
hard water treatment technology within their
new models. The company expects that this
will help to penetrate the markets which face
the hard water problem.

5) With growing demand for high quality

cleaning and hygiene in recent times due to
Covid pandemic, company has come up with a
Hygiene steam technology which can remove
strains as well as kill about 99% of germs,
bacteria and remove inactive allergens.
 
  
Sponsored Product Ads –
Marketing environmental changes
  
Ecommerce Advertisement

Covid has impacted the buying behavior &

people are now buying more on E-commerce.
This pattern is expected to stay even after
covid. To leverage the traffic of the
ecommerce site, We can use the sponsored ads
provided by the ecommerce sites  

Display Ads -    

 
OTT Advertisement
 
  The OTT platform has heavily penetrated the
urban consumer segment. Many brands are
now trying to leverage this and improve their
brand awareness and product visibility. We
should adopt to this changing trend
and utilize the OTT platform for our
promotional activities.
 
 is easier to use their satisfaction sell another
product of the same brand. 
 
Try Bundle selling 
 
    Buddle selling – Bundle selling and bundle
pricing is a promotional method to combine
two or more products
and providing promotional offer on the
sale. This will reduce the cost of marketing,
which can be used to provide the promotional
offers. This is a win-win situation for both us
and our customers. 

===============END==============

 
Google display Ads (Mobile)
 
Smartphones have penetrated the urban and
rural areas. To leverage this, we can use
Google display networks to promote our
products to the potential customers with
highly focused targeting methods of the digital
marketing platforms.
  

Try Cross selling

     Cross selling – Cross selling is pushing a

different product to the existing customer and
selling it. This is an efficient method because,
if the existing customers are satisfied it
 CONSUMER BEHAVIOUR
ANALYSIS OF TEA
Abstract
Tea is the world's most popular non-alcoholic
beverage, enjoyed by both the rich and the
poor. Regardless of its widespread use,
consumer behavioural patterns change over
time, and these changes are driven by a variety
of elements such as brand popularity, loyalty,
aroma, colour, price, and many more.
Although black, white, and green tea are well-
known, tea as a health drink is gaining
popularity in India.
The health-conscious Indian of the twenty-first
century is increasingly responding to teas that
provide both health advantages and novel
experiences.
Teas that enhance immunity and energy levels,
help with weight loss, digestion, and sleep,
among other things, have become important
marketing features. Apart from that, tea is now
at the centre of experiential offers, with
complete tea menus featuring varieties
flavoured with exotic components like wine,
chocolate, floral elements, and other flavours
being the most recent additions.
In examining of consumer behaviour, we focus
on questions such as why, how, where, when
and how much consumers are willing and able
to buy the product at a particular market price.
The behaviour of consumer in question is
influenced by various factors such as cultural,
social, psychological and personality.
The primary objective of this study is to
investigate consumer behaviour, their
purchasing preferences and also to make
decisions when buying a consumer food
product- Tea.
The rise in disposable incomes in India,
especially in the urban areas, and the abundant
availability of tea varieties augurs well for
tea’s future in India. We reached out to various
consumer of tea, mostly in northern part of
India to comprehend and appease the
consumer's genuine demand and behaviour
toward tea. Thus, the study creates a robust
platform from which we can evaluate the
relationship of consumer behaviour with
consumption pattern through various
questionnaire we ask and focus on the area and
characteristics of distinct consumer behaviour
in relation to tea consumption.
Introduction
Tea is indigenous to India and is a source of
great pride for the country. India as a country
has the largest tea drinking population in the
world. More than 80% of the tea produced in
the country is consumed domestically.
Nonetheless, despite the existence of a strong
tea culture in India, per-capita consumption of
this beverage is lower in contrast to other
European and Asian countries.
The following report focuses on consumer
behaviour when it comes to tea consumption.
The study of buyer behaviour is focused on
consumer purchasing behaviour, with the
consumer performing three separate roles:
user, payer, and buyer. Consumer behaviour is
difficult to anticipate, according to research,
even for specialists in the area.The Consumer
Decision Process is essentially a cognitive
process. The consumer is aware of a need or
want and looks for methods to satisfy it.
Consumer awareness is not an automatic
process; rather, it is a deliberate external
effort.
Consumers, for example, are exposed to
hundreds of messages persuading them
through advertising, political organisations,
religious groups, food items, and a variety of
other resources. This mass communication that
seeks customer attention, is then filtered out by
individuals in order for them to make a
purchasing choice. To buy a product, a buyer
must go through the five phases of the
consumer choice process. These five steps of
the consumer decision-making process are
critical for consumers to make appropriate
decisions in meeting their needs and desires.
The phases are listed in chronological order,
beginning with issue identification and
concluding with post-purchase evaluation. The
five steps are depicted in the flow chart below:

Scope of the Study
In the primary research, final and potential
consumers where data was collected and
segregated into different categories by
analysing on the basis of:  According to our primary and secondary
 Consumption of a particular type of
tea(Green, Black, White, Normal)
 Reasons behind choosing a particular
tea type and brand
 The time involved in each step of the
buying process and overall consumer
involvement
 Factors influencing the buying
process  
 Brand Switching factors and
quantitative consumption
 Consumption of tea for other than
drinking purposes
 Occasions for consumption of a
particular tea type
Types of Consumer Behaviour
Since tea is a product where purchase time
devoted by the consumer is less than other
durable and expensive products, we can rule
out the possibility of Complex Buying
Behaviour and Dissonance Buying
Behaviour as they exhibit high consumer
involvement.
Tea Consumers usually show Habitual
buying behavior as people develop
preferences for a particular brand (Tata tea
gold, tata tea premium) and specific products
(Black tea, green tea).
Consumers usually prefer a particular brand
that they like or have been referred to by
some influencer(social group, friends,
family). There are various factors
influencing consumer buying behavior like
social, cultural, personal, and psychological.
research, the following are the specific
factors irrespective of the types mentioned
above that influence the buying process:
 Affordable prices
 Fine quality product and taste
 Packaging of the product
 The aroma of the tea
 Availability in the nearby store
 Brand Name and associated status
Advertising campaigns 
 Recommendation

Research Methodology
Consumer behaviour is very dynamic, and
factors influencing it keep affecting the
buying process both ways. A proper
methodology is required to analyse the
reasons behind the buying behaviour, the
time associated with each step of the buying
process and influencing factors. Following
an extensive discussion, a questionnaire was
prepared to reach out to consumers and
potential consumers of different age groups
and income levels to ensure diversity in the
sample. Consumers were interviewed, and
responses were recorded, listing all the
details followed by analysing the responses
to determine the marketing implications.
Primary Research Overview
Primary data obtained through the interviews
had more male respondents (72%) than
females (28%). In the research, most of the
respondents were from the age bracket of 18
to 24 (58%), followed by 32.3% in the 25 to
30 age group and the rest 9.7% in the 31 and
above age brackets. 18 to 24 and 25 to 30
age groups are most important to the study
since we assume frequent and preference-
driven tea consumption in these age groups.
Data shows that most of the respondents
(55%) have yearly income within a range of
0 to 5 LPA followed by 6 to 10 LPA
(21.9%), 11 to 15 LPA(15.6%), and 16 &
above (7.9%).
More than 72% of the respondents chose
Normal/Orthodox Tea over any other tea
variant. Green tea is consumed by 27.9%,
black tea by 14.8%, and white tea by 1.6%.
The frequency of consumption is also an
essential factor. Most of the respondents
(49.2%) consume only a cup of tea a day.
32.8% of them consume two cups of tea in a
day, and the rest of them consume more than
2 cups.
There is no specific brand that has emerged
as a familiar brand or leader in our
respondents. Brand-wise data is scattered
over 14 brands showing consumers prefer
tea based on factors other than brand.
19% of the respondents have been using a
particular brand for over ten years. Tea is
used for purposes other than drinking and
refreshment. 23% of the respondents use tea
for different purposes. These purposes
include cooking, gardening, and manure
formation. Almost 50% of the respondents
use 500 grams of tea per month. 55% of the
respondents showed their interest in
switching to different brands in case of sales
discount or reduction in prices of rival tea
brands.
Consumer Behaviour and Market
Trends
Graph 1: This graph shows the upward
trajectory in tea consumption from FY 2015
to FY 2020, which in turn contributes to the
overall growth of the tea industry. A positive
trend in absolute tea consumption can be
attributed to growth in population, rise in
consumption of tea variants such as black
tea, green tea, herbal tea.
Graph 2 shows the average market price per
kg for Normal tea and green tea in FY 2021.
The price per kg of green tea is on the higher
side as compared to orthodox tea. Even the
rise in consumption of green tea can be
attributed to the healthier lifestyles of
consumers since many tea brands have
positioned green tea as a healthier tea. 

Graph 3: This graph shows the average
price of tea in 4 major cities of India in
December 2020. These four cities lie in 4
different regions (North, South, East, West),
which we have also covered in our primary
research. The difference in average prices
can be linked to the varied consumption of
tea across regions. Tea is a commodity
where consumer involvement is low, but
with the rise in consumption of Black tea
and green tea, consumers are making
informed purchase decisions by comparing
all the possible alternatives and choosing the
healthier one.
Buying Decision Process of Tea
In India
Tea has broadly remained a social beverage,
which transcends through the entire strata of
demographics. It can be broadly classified as
a habitual product, the need for which stems
mostly from want rather than necessity.
Breaking down tea as a product through a
consumer buying decision process, we first
need to understand what constitutes of a
consumer buying decision process and then
through that understanding we will extend
tea as a product over the broad categories of
buying decision process.
Problem Recognition
A consumer develops the need of the product
rather subconsciously through everyday
activities or may be influenced by the
surroundings. In technical terms these have
been segmented into two categories.
 Internal Triggers (Hunger, Thirst)
 External Triggers (Friends,
Neighbours)
The challenge of the producers is to identify
the triggers and be ready with a solution to
satisfy the consumer needs.
Extending this principal of problem
recognition to Tea, the first step for a
multitude of tea producers becomes easy as
the habit of tea drinking gradually develops
among majority of individuals through their
circle of influence which can be either their
parents or grandparents or relatives. The
very idea of tea being a social drink is
ingrained in the subconscious of many from
the start. Which is also backed by our
interaction with a variety of respondents
whom we interviewed to gain insights about
consumers behaviour towards tea. A
staggering 90% of respondents claimed that
their exposure to the concept of tea drinking
started at a very early age, and by the time
they grew up almost 60% of the respondents
already developed a habit of drinking tea.
But this totally does not eliminate the
process of problem recognition, as the world
is changing and so is the consumer
behaviour and a confluence of both internal
and external factors are creating new
demands in an already 100% penetrated
sector. As consumers are becoming more
health conscious driven by both personal
health factors or choices or influence of the
social circle which might have adapted to the
change, this very change in the behaviour of
the consumer has accelerated the growth of
Tea which is targeted towards a more health-
conscious audience. Teas like green tea,
black tea and other non-conventional teas
like hibiscus tea, pea pigeon tea, rose tea etc
have varying health benefits, while some
may have a higher content of anti-oxidants
others may have improve your immunity or
skin condition. These alternatives have
gained wider acceptance among the masses,
who are purportedly sold on the benefits
promised.
To illustrate, a regular tea drinker drinking a
CTC tea, might be facing from diabetes
which require a complete cut down on the
sugar. He might look for alternates to satisfy
the very habit of drinking tea, with just
green tea replacing his tradition cup of tea.
This hypothesis is again supported through
the interviews conducted, in which 30% of
the respondents above the age of 40 claimed
that considering better health benefits they
switched to new alternative while approx.
50% of the youth claimed that their social
circle played a major hand in them
developing their choice of drink. A minor
segment of respondents also said the sensory
pleasure they derive out of a cup of tea is
very essential to them, and for them price is
not an issue. Hence, from being a
unidimensional product, both the tea and tea
drinkers have evolved over time to create
new alternatives and opportunities, and the
lifestyle and circle of influence of the
consumer has a lot of dictating powers over
these in trends.
Information Search
Considering it is India in 2000’s the market
of tea and the available products remained
more or less the same. Families had their
preferred brand of tea, which they purchased
without giving a single thought, and the
cycle of replenishment continued. Fast
forward to India of 2020, and the consumers
have a plethora of information available,
scores of celebrities and internet influencers
telling the consumers that this product is
better to a more awakened consumer who is
more conscious about the choices he is
making. A heterogenic mix of the above
factors have in ways transformed an dormant
sector. Though the percentage of population
is still limited, it is still on a rise.
Classifying the consumers on the basis of
their search of information, our study shows
that
 Heightened Attention 35%
 Active info search 15%
Of our respondents fall in these categories,
and this is only expected to rise in coming
times. These are the consumers who are
actively looking out for what’s new in the
market and the accompanying factors with
them like, improvement of taste or smell,
health benefits etc.
Below advertisement from Leeford targeting
customers who are health conscious and
adore a healthy lifestyle.
The sources of information to the consumer
have remained the same which are
 Personal groups
 Commercials
 Public
 Experiential
Of the above, commercial remains the most
effective way to disseminate information to
the consumers but the most effective in
terms of persuasive power to influence the
consumer to actually buy the product is still
information through personal group or either
experiential.
Roughly 70% of our respondents said that
their decision to buy a new tea or switch was
majorly driven action of their close group,
which affects the consumer psyche both
consciously and sub consciously. When a
close friend first drinks green tea infront of
you, you might ridicule him, second instance
you might brush it off, but surely the third
instance would create some curiosity within
that you might try it, and then coupled with
the health benefits/quality, the switch can be
gradual.
The consumer might then research about the
perpetrated benefits or quality of the product
and find a suitable choice in his desired price
range and then give the product a try.
Also, the market lobby’s behind these
products are huge, and they by hook or
crook would like they consumers to be
engaged with their product, which happened
with the green coffee which was actively
marketed as a weight loss alternative only to
be later refuted of any such claims, and
hence was prohibited to advertise any
messaging of weight loss on the product.
The same is happening with various
segments of teas. The consumers mode and
approach for information search also
partitions the market to cater to broadly
three segments of consumers.
Consumers
Brand Concious Type Consious Price Consious
Type A – Brand Conscious
This consumer has a very strong affinity
towards a particular brand of tea, for
example Taj. Now for this consumer he is
open to try new products as long as they
brand is same
Type B – Type Conscious
This consumer is fixed on the type of
product he wisher to by, for example out of
green, black, white and CTC tea our
consumer prefers black tea only. For him all
the other types are redundant but for black
tea he is willing to explore different brands
offering the product.
Type C – Price Conscious
Irrespective of the brand or type, the major
driving factor for this consumer is the price
of the product, and if the product falls within
his specified limits, he will purchase it. We
also saw in our respondents this very
segments, when asked what your first
filtering criteria is to buy a tea, and the split
was nearly equally divided among the three
categories. We also saw a interchange
between the brand conscious and type
conscious consumers, who switched from
one to the other category or vice-versa over
a period of time.
Evaluation Of Alternatives
While making any purchase decision,
consumer will evaluate multiple options
available in the market based on certain
parameters. Consumer will make decisions
to go with a brand based on previous
purchases, suggestions from friends and
family, his personal needs and wants, self-
analysis of the features, customer is
expecting from the product and many other
parameters. More often in India, as far as
FMCG market is considered, people evaluate
products at the point of sale.
For example- when a customer goes to a
shopping mart and picks up a product, say
shampoo bottle. At that time, he will think
about whether the current shampoo he is
using, is giving the desired results or not, is
the current shampoo too much expensive or
is the product in hand have good response in
the market or not. After proper evaluation of
the product, he will decide whether to go
with the new shampoo brand this time or go
with the current one which he is using.
So, consumer travels the journey of
evaluation of alternatives mainly through 3
phases-
In case of tea, a consumer can evaluate
alternatives in three ways-
Brands of tea: making decision within CTC
tea but among different brands. One may
choose to go with the same brand due to
deeply rooted beliefs, long family tradition,
positive attitude towards the other product of
the manufacturer, etc.
Types of tea: Choosing from different
varieties of tea available in India. For
example- green tea, CTC tea, White tea. One
may prefer to go with green tea due to aging
and health issues.
Types of beverages: One may choose to
change the type of beverage he/she is
consuming on daily basis. For example- if a
person consume tea in breakfast and
someday influenced by a newspaper report
about the benefits of orange juice in the
morning may prefer to switch to orange juice
instead of tea.
In India, people have perceptions about
everything either on positive or negative
connotation. This attitude formation about a
category of product, is consistent throughout
the choices that he makes.
The interviews that we conducted for 50
people gives us insights about whether
people prefer to change brand and in what
interval of time.
Almost 51% of the respondents have said
that they have changed brands at some point
of time while 49% remained intact with their
beliefs and attitudes towards their tea brands
and didn’t change it.
Out of those who changed, almost 66% of
the respondents changed in 0-5 years of time
period. Which says about people who wants
to have different tastes of tea on their tasting
buds, usually change in shorter period of
time.
Purchase Decision
After evaluating different brands, a
consumer is now ready to make a purchase
intention but its not necessary that the
intended product will be the product that the
customer end up buying. The journey from
evaluation of alternatives to purchase
decision is shown below in the Fig.
While in the purchase intention process, a
customer may take a stand on the following
sub decisions-
 Which brand to choose?
 From where (dealer/retailer) to buy?
 How much quantity should I buy?
 When (Timing) should I buy?
 How should I make payment?

Often the consumers of tea make decisions
based on some mental shortcuts called
heuristics. They may go with the product
that satisfy all their minimum requirement or
they can choose one that attains maximum
attention on one such attribute that user is
looking for say price, aroma, etc.
The responses from the interviewed
consumers also confirms the same as in the
above bar graph.
Our choices of tea are also affected by the
responses from the people around us,
whether positive or negative. For example-
one may prefer to go with green tea brand B
over brand A if his/her colleague at work
used brand B and observed satisfactorily
results. It also depends on our inclination
towards other’s opinion or feedback and
comply with it. External factors such as
healthcare and lifestyle magazines also
affect the buying decision.
Post purchase Behaviour
Whether a consumer will come again to buy
the same brand of tea depends on the post
purchase experience of the current tea brand.
The post purchase behavior can be measured
on the basis of following measurement-
Satisfaction: While purchasing tea, a
consumer associate certain expectations
from the tea based on marketing campaigns,
mouth of words from the near and dear ones
and personal expectations. The actual
performance of the tea attributes are
measured by the user against the benchmark
set by the user, lesser the gap, more the
satisfaction of the user, more chances that
the user will continue to use the same brand
of tea and vice versa.
Action: After or during the period of
consumption of tea, a user may have two
reactions, positive or negative and based on
this, he will lend his feedback or
recommendations to other people.
Uses and Disposal: How often a consumer
buys tea depends on his/her consumption
rate. Consumption rate depends on the
family size, cups of tea consumed in a day
per person, etc. So more the consumption
rate, more often the consumer will go back
to buy the product.
Insights from our respondents says that
almost 48% of them consume 500gm of tea
per month and 15.6% of them consume 1kg
of tea per month. Also, 48% drinks 1 cup of
tea per day and 34% of them drinks 2 cup
per day.
 North|South|
Central|East|West
Geographic
Tier 1| Tier 2| Tier
3 cities

Age and Average

Demographic family size
Average Income

Fig. No. of cups consumed per day Convenience

Psychographic seeking
Nature

Medium to strong
Behavioural loyalty
Quality Conscious

Fig. Quantity of tea consumed in a month
Marketing Implication
Consumer behaviour research is extremely
significant for improving marketing
decision-making and increasing the efficacy
of marketing initiatives.
Consumer behaviour can influence drinking
behaviour, which drives the development of
tea marketing tactics such as advertising and
drinking environment.
Executive Summary
Based on the interactions with 50 individuals,
we have come to the conclusion that there is a
correlation between age, gender, income, tea
consumption and other intrinsic factors in
consumers.
These factors define the consumer behaviour
which in turn affects their purchase
preferences and decision they make when
buying Tea.

On one hand, there are numerous tea kings;

on the other hand, if businesses want to be
accepted by customers and build brand
loyalty, they must focus on image and brand
management. Businesses can grasp each
index of numerous brands, such as visibility,
buy/usage, loyalty, conversion, and
reputation, through consumer behaviour
research.

Enterprises can design a stronger brand

development plan if they understand the
image, status, and assessment of each brand
in the minds of their customers. The
following is the basis of market
segmentation for tea according to our
primary and secondary research
 References

https://www.thestatesman.com/business/tea-culture-transformation-brewing-india-
1502756133.html

https://www.ukessays.com/essays/marketing/apply-the-theory-of-consumer-behavior-to-tea-
drinking-marketing-essay.php

https://www.ukessays.com/essays/marketing/consumer-decision-process-boh-tea-
marketing-essay.php

https://courses.lumenlearning.com/marketing-spring2016/chapter/reading-buying-process-
stages/

Marketing Management 15 th edition by Philip Kotler