© 2020 JETIR March 2020, Volume 7, Issue 3 www.jetir.
org (ISSN-2349-5162)
THE STUDY OF CONSUMER BEHAVIOR AND
PREFERENCE TOWARDS THE MARKETING
OF TEA BRAND
Dr. Surendra Kumar Chauhan
Associate Professor
Faculty of Commerce,
Shri Jai Narain Misra Post Graduate College, Lucknow,
Uttar Pradesh.
ABSTRACT
India has emerged as one of the largest and fast growing consumer market entire the world for fast moving
consumer goods (FMCG). The post liberalization reform in India, has become change the consumers
perception very fast and have made it more complex by the socio-economic disparities that exist among
communities from the different geographical regions within India. In the era of consumerism, technological
and social change, there are many ways for needs and wants to be satisfied. What do we really know about
customers and consumers need preference? Are consumer becoming so fitful and price sensitive that loyalty is
declining? What are the determinants of heterogeneity in consumer behavior and how does the products
emerge, grow, mature and decline in the hyper competitive markets? Keeping these emerging issues through
the present study, an attempt has been made to study the consumer behavior on the making of Tea Brand in
the Lucknow city of the state of Uttar Pradesh
KEY WORDS: Brand Loyalty, Taste and preference, Choice dynamics, mental constructs, Consumerism.
INTRODUCTION
Post liberalization era has witnessed a dynamic shift in the market place by quick changes in the life style
pattern, brand loyalty and mass marketing strategies. To the behavior of new generation customers within
characterized by the preference of multiple options, uniqueness of the individual expectation and switch the
competitive brands that give the maximum perceived value. It is emerging a complex phenomenon to study
the behavior pattern of a new generation customers unless through process and buying behavior and fully
understood, decisions on product design, packaging, branding, distribution channel are properly placed. The
marketing strategies need to be design in such a way that can be proved effective to understand the new face
of the customers. In response to the changing paradigm the Indian companies need to learn from their Western
counterpart about the sources timing and the direction of changes as well as new opportunities and
competencies that will enable them to respond to this change effectively.
The psychology of the customer that how he is influenced by the environment, such as culture, family, media
etc. with determined his behavior needs to be analyzed properly in order to formulate marketing strategy. Tata
Tea Limited, owned by India's Tata Group, is the world's largest manufacturer and distributor of tea. Tata Tea
Limited market under the different brands viz. Tata Tea, good health teas etc. No doubts there are other brands
of tea for example Brooke Bond Red Label Taj Mahal Taaza and Lipton Lipton yellow Label and Lipton
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Green Label well established brand of Hindustan Unilever Limited the marketers of all these brands are
competing severely in terms of their marketing strategies as well as tactics of capturing the market share in the
different regions of the India.
Tata Tea is the largest tea brand in India which manufacturers more than 10 million kilograms of tea in India,
control number of estates and provide the employment for number of people in tea blending and packaging
factories. The company has tea estates in India and Sri Lanka, especially in Assam, West Bengal and Kerala.
The Tata Tea group have product and brand presence in number of countries in whole over world. In 2005,
Tata Tea begins a exercise to divest direct ownership of plantation in India, a process facilitated by subsidy
loans from the World Bank’s International Finance Corporation. In 2007 the Tata Tea launched the campaign
“Jaago Re” to awaken youth on social issues.
Tata Tea: Jaago Re to Corruption
On the 26 Aug 2009, be the change you wish to see in the world. Tata Tea seems to have taken that up quite
seriously. With the help of its advertising and marketing initiative, “Jaago Re”, this time, the brand takes up
the issue of corruption.
In its third year, the Jaago Re campaign revolving around the issue of corruption has the tagline, “Ab Se
Khilana Bandh, Pilana Shuru”. Tata Tea discussed the fact that corruption has eaten into more than 50 per
cent of India's population. Considering the gravity of the problem, Tata Tea chose to address it.
REVIEW OF LITERATURE
According to ‘Jain M.’ (2017) has discussed about major players offering different types of tea, in different
parts of the country, with special focus on quality perception under specific demographic region. Major
players are offering different types of tea in different parts of the country with a focus on the quality
perception of the particular demography.
According to ‘Mathur M. K.’ (2015) explained that most of the companies have tea in all pack size - 2kg,
1kg, 500gm, 250gm, 100gm, 50gm and 25gm packaging. There are also sachets, which are priced as low as
Re.1. Various regions have distinctive packaging preference for poly pack and box pack (mono cartons). 250
gm size is the most preferred size. Branded tea penetration is quite high in cities like Delhi and Ahmadabad
when compared to other major cities in India.
According to ‘Monirul I. & Han J. H.’ (2013) states the demand of coffee is more than tea and earning good
amount of profit. It is assumed that about 20 billion cups of hot drinks are sold every year.
According to ‘Sharma M.’ (2013) Consumer preferences are defined as the subjective (individual) tastes, as
measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods
according to the levels of utility they give the consumer. Note that preferences are independent of income and
prices. Ability to purchase goods does not determine a consumer's likes or dislikes. This is used primarily to
mean an option that has the greatest anticipated value among a number of options.
According to ‘Shendge’ (2012) Preference (or "taste") is a concept, used in the social sciences, particularly
economics. It assumes a real or imagined "choice" between alternatives and the possibility of rank ordering of
these alternatives, based on happiness, satisfaction, gratification, enjoyment, utility they provide. More
generally, it can be seen as a source of motivation. In cognitive sciences, individual preferences enable choice
of objectives/goals.
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According to ‘Vakhariya S. And Chopde V.’ (2011) Private labels in India are on the growth path. With the
emerging private players, national brand manufacturers will have to compete with the competition within the
sales promotion and distribution channel, which needed to change in marketing strategy, locally.
According to ‘Virmani R. T.’ (2011) stated the reasons for preference of the brands ranged from quality to
availability. But it was quality that was ranked as the No. 1 parameter for brand preference. Most of the
consumers reported that they do get carried away by advertisements sometimes but in the end it is the quality
of the product that is a decisive factor for purchase.
OBJECTIVES OF THE STUDY
The study was undertaken with the following objectives:
1. To study the consumers preference towards Tata tea and the factors which influence the buying behavior of
the consumers of Tata Tea.
2. To analyze the consumers attitude towards different brands of tea and their Association with different brand
attributes.
3. To study the effectiveness of brand promotion strategies followed by the Tata Tea group.
RESEARCH METHODOLOGY
Lucknow is the capital of Uttar Pradesh and main Shopping Centre of the state with high income and higher
literacy status. The total number of respondent was 200 which were selected for the sample on random
basis. As we know the conjunctions of Tea in different age group of people. Hence, in selecting the sample
for the study special care was taken to cover the respondent of all age groups. Every care was taken to ensure
that the sample selected was truly representative of the whole population. A well design questionnaire was
prepared for obtaining the requirement from the sample units. The information thus collected was analyzed
with various statistical tools like; Average, Percentage and Ranking method.
RESEARCH ANALYSIS
One of the main features of tea market in India is positioning and targeting of different brands on different
consumers. Consumers being a rationale decision maker, consider those purchase or consumption choice and
preference that provide them maximum satisfaction for the amount of money they spend. As we know the
consumption of tea varies in different age group of people, therefore, the people in the age group of 36 to 45
are the people who consume the tea mostly. Thereafter, the age group above 46 also consumes more tea in
comparison to the age group of 15 to 25. The table also shows the gender, education and occupation wise
classification of the respondents.
Frequency of the consumption of the tea
The frequency of consumption for the tea varies among different consumers. The 70 percentage of the
consumers were found an ardent tea drinker. Similarly, a large majority of the consumer’s respondent that
they take 1 to 3 cup of tea daily were as only 10 % stated that they take 4 to 6 cup daily. A large majority of
respondent replied that they use tea leaves, and 16 % of respondent prefer tea bags. Hence, after analyzing the
results of frequency of the consumption of tea, we can say that a huge market for tea in India and it has great
potential and opportunity for the market players.
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Analysis of brand preference
As we know in the tea market at present time there are various brands available and all are competing for their
growth and survival. The brands have increased to much an extent that the consumers are always in dilemma
as to which brand to buy. The tea brands available in the market under study mainly Red Level, Tata Tea,
Taaza, Lipton, Taj Mahal, Marvel and Pataka Chai.
The respondents were given an open ended question to write the brand they preferred the most. The result
obtain shows that 24 percent of the consumers preferred mostly Tata tea. Taaza Tea was preferred by 19
percent of the respondents, and the Pataka Chai seems to very limited market and this brand was preferred by
only 7 % of the respondents.
Hence, we can say that the Tata Tea and Taaza Tea have mostly captured the market under study. This result
was further endorsed by the information given in the table, which shows the majority of the consumers (63 %)
do not like to experiment with other brand because they like the Tata Tea. The loyalty for the Tata Tea brands
is really challenges job for the competitors.
Consumer’s attitude towards the brand promotional strategies
Different brands have different kind of promotional for the consumers according to their preference. The
buying behaviors of the consumers are influenced by the variety of factor. In the respect present study the
main objective was to analyze the consumer attitude towards the different promotional campaign. To what
extend the consumer buying behavior is determined by the advertisement and promotional strategies followed
by the different companies.
It makes clear that the 23% of respondents expressed that they mostly remember the advertisement of Tata
Tea brand. Further 58% of the respondent maintained that the television advertisement do not influence their
choice of brand. Hence, it can be stated that the majority of the consumer are the brand loyalty of Tata tea and
any other brand cannot effective their brand loyalty for Tata Tea. The information regarding this has been
presented in following table which reveals that the large majority of consumer replied in affirmative whereas
only 29% is stated that they are not aware of the same.
Brand Association with different features of the brand
The different attribute of a brand determine the brand preference and positioning of the brand in the minds of
consumers. In order to know which brand was associated by the maximum number of consumer with most of
these attributes, the respondents were given six choice as good taste, availability, attractive packaging,
reasonable price, reputed brand and best promotional campaigning. Researcher was asked to write in front of
each brand which they preferred the best and fits their attributes.
This question gives the marketer a fairly clear positioning of different brands in the mind of the consumer.
The information thus collected has been analyzed in following tables which shows that the consumers did not
give their preference branch choice against all these attributes. As for as good taste, availability and best
promotional campaign of the brands is concerned, the respondents preferred Tata Tea as leading brand
whereas in case of reasonable prices the Taaza, Tata tea and Marvel where considered the most preferable
brands in terms of attractive packaging.
The ranking stand as the first rank of Tata tea and second rank to Taaza followed by Red Label, Marvel,
Lipton, Taj Mahal and Pataka Chai repectevely. The result presented in the table makes it clear that the Tata
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Tea occupy a significant position in the mind of consumer and it also gives an indication to the other brand
market player to improve their market strategy keeping in view the various product attributes.
Area of improvement for Tata tea
After analyzing the brand attributes the consumer’s choice, an effort was made to know the consumers
viewpoints regarding the area of improvement for the Tata Tea. The respondents were given the choice of
improvement areas as test, packaging, advertisement, price reduced and variety. The information regarding
this has been worked out shows in the following table. The table shows that the large major majority of the
respondent pointed out the Tata Tea need to reduce the price level of their product whereas, only 12%
expressed that there is a need to improve the taste of the product.
Hence, it can be stated that the Tata Tea may be effective taste wise however need to apply innovation
Technologies which can be helpful in order to reduce the price level of the brand.
DATA ANALYSIS
Table No. 1 Demographic Variables
Items Particulars Frequency Percentage
Gender Male 124 62.00
Female 76 38.00
Age 15 – 25 30 15.00
26 – 35 54 27.00
36 – 45 62 31.00
46 and above 54 27.00
Qualification Undergraduate 46 23.00
Graduate 92 46.00
Post graduate 62 31.00
Occupation Service 46 23.00
House wife 88 44.00
Student 28 14.00
Self – Employed 38 19.00
Table No. 2 Are You Passionate Tea Drinker?
Decision No. of Respondent Percentage
Yes 140 70.00
No 60 30.00
Total 200 100
Table No. 3 How Many Cups Of Tea Daily?
No. Cup of Tea No. of Respondent Percentage
1–3 180 90.00
4–6 20 10.00
Total 200 100
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Table No. 4 What Kind Of Tea You Use?
Type of Tea No. of Respondent Percentage
Tea Leaves 168 84.00
Tea bags 32 16.00
Total 200 100
Table No. 5 Brand Preference Analysis
Brand No. of Respondent Percentage
Red lebel 24 12.00
Tata tea 48 24.00
Taaza 38 19.00
Lipton 26 13.00
Pataka Chai 14 7.00
Tajmahal 20 10.00
Marvel 30 15.00
Total 200 100
Table No. 6 Do You Like Experimenting With Different Brand?
Type of Tea No. of Respondent Percentage
Yes 74 37.00
No 126 63.00
Total 200 100
Table No. 7 Advertisement of which Tea brand do you remember the most?
Brand No. of Respondent Percentage
Red lebel 26 13.00
Tata tea 46 23.00
Taaza 38 19.00
Lipton 24 12.00
Pataka Chai 13 6.50
Tajmahal 28 14.00
Marvel 25 12.50
Total 200 100
Table No. 8 Do you think Advertisement can Influence your choice of Brand?
Decision No. of Respondents Percentage
Yes 84 42.00
No 116 58.00
Total 200 100
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Table No. 9 Are you aware of Tate Tea “Jaago Re” Campaign
Decision No. of Respondents Percentage
Yes 142 71.00
No 58 29.00
Total 200 100
Table No 10 Brand Association with different feature of Brand
Features Red Tata Taaza Lipton Pataka Tajmahal Marvel
Label Tea Chai
Good Tast 30 40 34 28 16 24 28
Availability 30 33 31 32 17 28 29
Attractive 32 30 31 30 14 31 32
Packaging
Reasonable Price 28 33 34 26 21 27 31
Reputed Brand 33 40 35 34 12 21 25
Best Promotion 21 50 40 20 19 23 27
Campaign
Total 174 226 205 170 99 154 172
AVERAGE 29.00 37.67 34.17 28.33 16.50 25.67 28.67
RANK III I II V VII VI IV
Table No. 11 What Improvements Are Needed For The Tata Tea?
Improvement Area No. of Respondents Percentage
Tast 24 12.00
Packaging 30 15.00
Advertisement 30 15.00
Price Reducing 78 39.00
Verity 38 19.00
Total 200 100
CONCLUSION
In the present days, it will be essential to know for the companies who are offering the products and services
that the demographic profile of consumers in terms of Education, Income and Size of the Family as well as at
the Psychology level of the consumers. Conclude about that how they feel, think and behave in the rapidly
changing environment of the business. The marketing strategies must adapt to the changing situations and
must offer quality product to its consumers. This can made possible by encouraging the effective marketing
penetrations strategies and improving product innovation techniques.
Through the present study, the consumer’s perceptions towards the brand like Tata Tea were analyzed, so as
to determine the success of the brand in terms of sales increase of the company. The psyche of the consumer’s
who are being targeted and their behavior towards the brand. This type of regional studies on the consumer
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behavior is relevant to given an insight and understanding the attitude of the consumer’s toward the product
they buy and consume. The consumption pattern of Tata Tea in the Lucknow reveals that the large majority of
the respondents were found ardent tea drinker.
In terms of brand preference analysis, it was found that the Tata Tea was preferred by the majority of the
respondents in Lucknow city. On the basis of ranking Tata Tea occupied the first rank followed by the Taaza,
Red Label, Marvel, Lipton, Taj Mahal and Pataka chai respectively. The Tata Tea and Taaza have mostly
captured the tea market, which is an indication for other tea marketers to increase their Strategies and come
out with a more focused strategy to compete with the major market players.
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