INTRODUCTION OF NECESSI
TEA IN UNITED KINGDOM
BY JANVI
JIGNA
MOHINI
PAYAL
PRIYANKA
RICHA
RIDDHI
SALONI
SAHIL
SUBHASH
SURAJ
VINAY
INTRODUCTION OF NECESSI TEA IN
UNITED KINGDOM
About Us [UNITED
KINGDOM]
Necessi tea is the largest tea brand in India
Type :Private company
Owned by India’s Girnar group of company private limited
Founded : Kolkata ; India
Established :1995 in India and 2019 in UK
Head quarters :Kolkata and Assam
Product :tea and instant tea masala
Manufacturing : 979504 cups
Production area : tea estates in Assam and Darjeeling
Employees : 5 till March 2019
Features of tea🌿
Type of tea
White tea Green tea Oolong tea
Black tea Masala tea
1. White tea
No oxidation at all.
Most delicate and healthiest.
delicate method of drying is carried out to avoid oxidation.
2. Green tea.
• Minimal oxidation.
• Grassy and fresh taste and aroma.
• To prevent oxidation, the leaves are tossed or
steamed.
• Health benefits.
• weight loss and reduce risk from several diseases.
3. Oolong tea.
Partially oxidized.
Fruity and flowery taste and aroma.
Slimming tea because of its metabolism boosting properties.
Characteristics stand between green tea and black tea.
4. Black tea.
• Fully oxidized.
• Robust taste of all teas.
• higher caffeine content.
• Rich in antioxidants.
• Cardiovascular benefits and can keep the cholesterol Level
5. Masala tea.
Flavoured tea beverage.
Mixture of aromatic spices and herbs.
Originating in Indian subcontinent.
Process
• Cultivation and Harvesting
1. Tropical and Subtropical climate
2. Plucked by hands
3. Activity happens whole year
• Withering
1. Drying the leaves
2. Reducing the moisture in it
3. Leaves are weighed at end
• Rolling
1. Two heavy metal plates roll
against each other
2. Opens the cells of leaves
• Drying
1. Makes the leaves Shelf-stable
2. Slows oxidative process of leaves
• Grading
1. Evaluating the leaves on their quality and
condition
2. Highest grade is Orange Pekoe
3. Lowest grade is Fannings or Dust
• Packaging
1. To be packed in airtight can
2. Increased shelf life
How to get White, Green and Black Tea from same tea
leaves??
White tea
Green Bud Withering (72 Hrs) Drying (110℃ / 65℃)
Green Tea
Steaming Cooling 1st rolling 1st drying (110℃ / 65℃) Final Rolling Final
Drying (120℃ / 80℃)
Black Tea
Withering 1st rolling Oxidizing/Fermenting Drying (110℃/ 65℃)
Types Of Tea
Masala Tea Oolong Tea Green Tea
White Tea Black Tea
Masala Tea: Health Benefits
Stomach Discomfort
Reduces
Blood Circulation
Immunity
Relieves Stress
Weight Loss
Cough and Cold
Oolong Tea: Health Benefits
Weight Management
Boost Metabolism
Promotes Healthy Skin
Makes Hair Healthy
Promotes Digestion
Controls Diabetes
Green Tea: Health Benefits
Headaches
Acne
Anti-aging
Digestion
Depression
Anxiety
Increases stamina and boost
Heart diseases
White Tea: Health Benefits
Anti-oxidant
Anti-aging
Cancer
Preventing diadetes
Acts as Antibacterial Agent
Anti-inflammatory
Boost metabolism
Black Tea: Health Benefits
Boost Metabolism
Cancer
Stronger Bones
Digestive tract health
Skin and Hair Health
Cardiovascular Health
SWOT Analysis
• Strength
1. Tea market is huge in the UK- Existing loyal customers-
High-end luxurious image that no other tea pod
machine companies can compete with- Famous
spokespersons.
2. Premium product quality.
• Weakness
1. Higher prices.
2. Limited distribution of products.
The demand (UK tea
buyers have the highest Convince new
revenue, so they more customers ( pre-ground
able to buy high-end tea users).
tea).
Opportunities
Find new tastes(UK
Huge market,
customers need of
continually growth
quality), diversify the
since 2007.
offer (large range).
THREATS
•Huge and powerful
competitor: Keurig.
•More affordable
customers:Starbucks.
•Substitute products (soft
drink, coffee…).
•Potential entry of new actors
( no high entry barriers).
•Low switching cost for the
customers.
Pricing Strategy
Cost based pricing COST
Calculation of the costs and adding a
standard mark-up
Never sell below the cost of making a
PRICE
product
PROFIT
Break even pricing
Analyze which price points recover
costs and reach profile the quickest
Competition Based Pricing
Using competitor’s prices as a reference point
Match competition or price below competitors
Inexperienced companies tend to use going great
pricing
This is done when it is difficult to measure costs and
demand
Distinguishing features to stand out from competition
Customer Value Based Pricing
The third major pricing strategy is customer value
based pricing
Decision of pricing in the strategy is in the hand of the
consumer
Customer perceptions of value sets the price of the
products
Through this strategy many companies discover that
customers are ready to pay more for something that
other more value
This strategy determines what buyer is ready to pay
COST SHEET
Qty of tea powder (import) - 300000kg
1 POUND = 87 RUPEES
SALES :- 979504 CUPS
Sr. No Particulars Rs Rs Rs
1] SALES:
GREEN TEA ( 254200cups x 186 ) (2.14 pound/cup) 47281200
BLACK TEA ( 108400cups x 214 ) ( 2.46 pound/cup) 23197600
MASALA TEA ( 256304cups x 203 ) (2.34 pound/cup) 52029712
OOLONG TEA (252100cups x 177 ) (2.04 pound/cup) 44621700
WHITE TEA (108500cups x 187 ) (2.16 pound/cup) 20889500 188019712
2] Less: Variable Cost
1 MATERIALS:
Sugar(from billington - 180000kg) 78613200
Import of materials 4700000
ginger 3828000
Mint leaves 1044000
Cardamom powder (from organic spices) 3860625
Cinamon powder (from organic spices) 1847880 93893705
2 PACKING CHARGES 2187441
3 OTHER VARIABLE OVERHEADS 1305000
4 SALARY TO PART TIME EMPLOYEES (5) 7177500 -104563646
3] Less: FIXED COST
Rent (1500 pound per month) 1566000
Electric Charges (8.5 KW/day) (14.37p/KW) 3294255
Selling expenses ( website cost) 391500
Head cashier's salary (2500 pound per month) 2610000
Other fixed overheads 1131000
Plant euipment (depreciation) 10440
Insurance 104400
Rent for infrastructure (450 per month) 469800 -9577395
4] Less : one time cost
Advertising 2610000
Sign permit 52200
Food handler's permit 34800
Lisence (business) :
- Registration Charges 4350
- Filing fees 13050 -2714400 -12291795
PROFIT 71164271
S India Darjiling
rs in Lakhs
plantation cost 9
Labour cost 3
transportation cost 5
water cost 2.5
tea processing cost 8
electricity expenses 7
Godown storage cost 1
factory expenses 5
machinery expenses 3
packaging & Forwarding expenses 1.5
Duties & taxes 2
TOTAL 47
FIXED COST = 95,77,395
ONE TIME COST = 27,14,400
CONTRIBUTION = 8,34,56,066
QTY = 9,79,504 CUPS
THUS, CONTRIBUTION PER UNIT = 85.20
BREAK EVEN POINT (IN UNITS) = FIXED+ONE TIME COST
CONTRIBUTION PER UNIT
= 95,77,395+27,14,400
85.20
=144270 CUPS
FUTURE PLANS
INCREASE IN OUTLETS
The survey shows the tea market in UK is expected to grow by 2.3%
with chai replacing the traditional tea as most popular tea. Hence the
company is planning to open atleast 50 t outlets over the period of 5
yrs.
SALES
The sales of outlets can be increased by provided discount to
customers on large purchases . They can also be given loyalty coupons
PROFIT
If the sales increase by atleast 25% in the next year than the company
is planning of increasing the price of the product by 50% .
INCREASING THE MENU
The company will be expanding the menu over the
period of 1yr by adding more varieties teas by reviewing the
customers choices. We are also going add bakery items like
cookies, muffins, sandwiches, etc by hiring chefs .
Research and Development
The company is planning to invest in research and
development to come up with new varieties of cold brews
and tea cocktails.
ATTRACTING THE CUSTOMERS
Mostly the younger generation prefer to have drinks in
the cafes . We can make the outlets more welcoming by
providing them with board games and books by charging
them small fees. The outlets can also host various events like
poetry reading, live music, game nights, etc.
• Improving yield per hector
• Connect more consumer
• Focus on restorative
production
• Empower Producer
• Expansion
Improving yield per hectare
Our plan is to replace old bushes with high yielding
varieties. Every year, to uproot & replant about 2.5%
of area in our Indian tea estates.
Using best agricultural and pest management
methods, better plucking, pruning and processing
equipments to enhance quality.
To extend plantation in UK gardens by 60 hectares
for tea.
Connect more consumers
To explore how the value proposition for tea amongst
consumers could be enhanced.
To use social media and new technology to reach consumers
and create dynamism in the sector.
To create a more demand for tea which enables better social,
environmental & economic conditions at the production end
of the chain.
Focus on restorative production
To focus on improving productivity with fewer inputs to
ensure that production continues into the longer term.
To explore how tea can deliver additional benefits
beyond producing the tea crop.
To deliver improved outcomes for the wider environment
and community within which tea is grown.
Empower Producers
To work on investigating and implement models for
enhancing value for producers, whether it’s blending or
packaging at source, or growing local opportunities.
To understand the potential impact of mechanization
on tea workers & empowering them to make tea work
more attractive.
Expansion
We have expanded geographically in East Africa.
We are focused on long term sustainable business
growth & embarking on scaling up packet tea business.
We have invested for long term growth in tea plantation
& production processes.
Conclusion
History
Business of company
View or strategy of company
THANK YOU
