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 DECLARATION

I Neha , University Registration No.: 20-NGF-301014 of the NGF COLLEGE OF

ENGINEERING, PALWAL, and hereby declare that the Summer Training Report entitled “A
Study of Indian Stock Market and Online Trading of Stocks” is an original work done by me and
this report work has been done for the award of Degree.

The project embodies the result of original work and studies carried out by me and the contents of
the project do not form the basis for the award of any other degree to me. I have expressed my
feelings in my own simple way. I hope who goes through it will find interesting and worth
reading.

Neha

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 ACKNOWLEDGEMENT

I would like to sincerely appreciate to the individuals who give me guidance, advices, opinions
and support throughout the entire research project has done. Thus, I only can complete my
research efficiently and effectively.

Ms. Ranjana Katyal , my faculty guide who has always given a right way to accomplish the
report and also provided some valuable ideas and suggestion to enhance me to complete the
research smoothly and successfully.

The teachers of Department of Management Studies, Dr. Manpreet Kaur (HOD) and our
department faculty who all have given different ideas to make more presentable report with
different tools and techniques of research methodology.

Moreover, I would like to appreciate to my college, especially Mr. Ashwani Prabhakar (CEO,
NGFCET, Palwal) and Dr. Sharat Kaushik (Director-principal), NGFCET, (Palwal) for giving
me this valuable opportunity to carry out this research project before I graduate from the
university. I have gained a lot of experience, knowledge and information which are related to
carry out the research. Otherwise, we would also like to thanks for our classmates for their
coordination, valuable assistance and sharing knowledge about the research project and also their
supportive actions. Therefore, this can help us carried out our research project more easily and
running smoothly.

Neha

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 Table of Contents

S. No Title Page No.

1. List of Tables

2. Introduction

3. Literature Review

4. Objectives of the Study

5. Research Methodology

6. Analysis & Interpretation of Data

7. Findings

8. Conclusion

9. Recommendations

10. References

11. Appendices

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5
 List of Tables

S. No. Titles Page No.

1. Consumption Times

2. Type of using Tea

3. Awareness of the ingredients of Tea

4. Quality standard

5. Knowledge of Tea

6. Form of Tea

7. Brand of Tea

8. Knowledge about the Tea Manufacturer

9. Package preference of Tea

10. Purchasing of both local & branded Tea

11. Factors affecting choice of Tea

12. Shifting from one brand to another

13. Factors affecting shifting of Brand

14. Satisfaction with the Tea Price

15. Affect of Price on Sale

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 EXECUTIVE
SUMMARY

The present study is focused to examine the consumers buying behaviour towards Tea’s. The
study reveals that Tea is by far the most popular beverage in India. The study linkages between
branded and local tea. The findings of the study documented that at all India level, tea
penetration averages 77.2%. The results indicate that price, gifts, schemes, brand, quality
standard, packaging, consumption times, attractive facilities, awareness of the consumers are

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important factors which affect the consumers buying behaviour toward branded Tea’s. In
addition to this a number of challenges which are faced by the consumers are identified and
discussed in this research paper. Tea is a part and parcel of Indian social, economic and cultural
life. Indians cannot think of a day without their favorite cup of tea. It is the most popular non-
intoxicating beverage in the world enjoyed by the rich and poor alike. Being most popular
consumed beverage, in many cultures tea is consumed at elevated social events. But regardless
of its wide consumption consumer behavioral pattern changes from time and this behavior
change is influenced by many factors like popularity of a brand, loyalty, aroma, colour, price
and many more. The present paper focuses on issues that influence the behavior of various tea
consumers. Samples were gathered to understand and pacify the actual need and behaviour of
the consumer towards tea. Firstly the attributes were analyzed with Chi-square test of
independence (χ 2) to validate the relation of the attributes with the consumer tea consuming
behaviour. Further to find out the most suitable attribute that dominates the decision making
of the consumer while selecting particular tea brand parametric method of estimation is used
to study the trend analysis using SPSS considering different brands and the attributes that
affects the purchase of the brands. Model is primed for studying the predictive ability of the
attributes like popularity, loyalty, colour and price. Thus the analysis establishes a strong
platform where we can validate association of consumer behaviour with consumption pattern
undergoing diverse statistical test and focus on the area and aspects of different behavior of
consumer in relation to consumption of tea.

Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour

is difficult to predict, even for experts in the field. Relationship Marketing is an influential
asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
Buying pattern of consumer varies accordingly based on type of products. There are different
factors that directly or indirectly affect consumer buying behaviour. Tea is the most popular
beverage dominating the entire market in terms of revenue, growth and popularity. Demand

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for tea (especially green tea and herbal tea) is constantly rising due to the shift towards healthy
lifestyle and increasing fitness enthusiasts. The objective of this paper is to analyze the factors
influencing the purchase of tea in Nilgiris district. The data was collected from 120 respondents
and factor analysis was done to identify the factors influencing the purchase behaviour of tea.
The result of this study shows that factors like price and promotional factors, on-store
influence, availability and sensory factors and product attributes are the major contributors
towards purchasing of tea.
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.
 Information from Variety of Sources – It includes information through
advertisement in news paper andtelevision that attracts the consumer in a lucrative way
through their offers and presentations and provides the consumer with an option to select a
particular brand.
 Group Influence Affecting the Consumer Buying Behaviour – Buying behaviour of a
consumer is affected through group as in of friends, neighbours family members etc.
 Region – Buying and consumption of consumer varies across the region.

9
INTRODUCTION

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Tea is the most widely consumed beverage in the country India and China are respectively the largest
and second largest producer and consumer of tea. These two countries together account for half of
world’s tea production .However they export less than a quarter of their production, due to largest
domestic demand. As per a survey of consumption of beverages, Tea accounts for 90% Filter Coffee 4%
Malted health beverages 2% instant Coffee 2% and carbonated soft drinks just above 1% of total
consumption squashes, concentrates, Mineral water account for a minuscule part of the consumption.
Tea plantations in India are concentrated in North East (Upper Assam and West Bengal) and South
(Kerala and Tamil Naidu). North East account for 75% of production while the Southern region accounts
for the balance. Although, yield per hectare is lower in North East tea quality is superior. For a long time,
Indian tea producers were getting artificially high price for tea the erstwhile USSR used to but under
bilateral treaty. The rubble (USSR currency) was artificially overvalued. The collapsed of the USSR has
been a major blow to the industry. Paradoxically, Indian is not globally competitive in production of tea
which is lab or intensive. Competing countries Kenya, Sri Lanka were under developed and have
comparatively lower labour cost and much liberal laws. More importantly, average age of tea bushes in
India is relatively high, therefore productivity is lower. Income tax liability for tea companies is
calculated in a unique way. 60% pre tax profit are deemed to be agriculture income, taxable by the state
government and 40% corporate earnings taxable as corporate profits. The effective tax rate works out to
be significantly higher. Tea is nearly 5000 years old and was discovered, as legend has it, in 2737 B.C. by
a Chinese Emperor, when some tea leaves accidentally blew into a pot of boiling water. In the 1600s, tea
became popular throughout the Europe and the American colonies. Since colonial days, tea has played a
role in American culture and custom. Today American school children learn about the famous Boston
Tea Party protesting the British tea tax- one of the acts leading to the revolutionary wars. During this
century, during this century, two major Americans contributions to the tea industry occurred. In 1904,
ice tea was created at the World’s fair in St. Louis, and in 1908, Thomas Sullivan of New York developed
the concept of tea in a bag. Tea breaks down in a three basic types. Black, Green and Oolong. In the U.S.
90% of the tea consumed is black tea, which has been fully oxidized or fermented and yields a
heartyflavoured, amber brew. Some of the popular black teas include English breakfast (good breakfast
choice since its hearty flavour mixes well with milk). Darjeeling (a blend of Himalayan teas with a flowery

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bouquet suited for lunch) and Orange Pekoe (a blend of Ceylon teas that is the most widely used of the
tea blends). Green tea skips the zing oxidizing steps. It has a more delicate taste and is light
green/golden in colour. Green tea a staple in the Orient, is gaining popularity in the U.S. due in, part to
recent, scientific studies linking green tea drinking with reduced cancer risk. Oolong tea, popular in
china, is partly oxidized and is a cross between black and green tea in colour and taste. While flavoured
teas evolve from these three basic teas, herbal tea contain no true tealeaves, herbal and “medicinal”
teas are created from the flowers, barriers, peels, seeds, leaves and roots of many different plants. India
has the distinction of being the largest consumer and producer of tea in the world. The country accounts
for 30 per cent of global tea production. It is the only country which produces both CTC an orthodox
tea’s in sizeable quantities. It has a share of 15 percent of the world tea’s exports. This year production
is expected to exceed 850 million kilos as projected by the Federation of all India Tea Traders
Association (FAITTA). In 1997 there was a record production of 810 million kg. against 780 million kg in
1996. South India alone accounted for over 180 million kg. which exceeded the production of countries
like Turkey and Indonesia. Organic farming of tea is fast gaining ground in Darjeeling as well. Such
organic farming practices wholly d e p e n d on the use o f natural f e r t i l i z e r and insecticides. Apart
from clinching better export deals in the European markets, such kind of farming has also helped in
retention of top soil and keeping it alive with micro- organisms, according to the planters who have
resorted to organic farming practices. The use of such practices is on the rise as export markets like
Germany is becoming more stringent on the quality aspect of premium teas. With export of organic tea
on the rise, most growers are contemplating a conversion of the tea growing area for organic cultivation.
As many as 11 gardens in Darjeeling have become fully bio- organic.

Tea is an aromatic stimulant, containing various polyphenols, essential oils, and caffeine. The
beverage is of the same genus as the important horticultural plant, Camillia – an evergreen
prized for its particularly beautiful flowers.The tea plant itself is Camellia sinensis, a native of
Southeast Asia. The tea brewed from the dried leaves of this plant has probably been drunk in
China for thousands of years: certainly since the 10th century BC, from which time written
records of its use survive. After the introduction of tea in 1657, Britain became the only
European country of tea drinkers rather than coffee drinkers. In recent years, however, coffee
has gained in popularity, challenging tea’s status. Tea was introduced into North America by
early settlers but was heavily taxed by the British, eventually resulting in the well-known Boston
Tea Party of 1773. Tea is drunk by about half of the world’s population. China, India, Indonesia,

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Sri Lanka, East Africa and Japan are the main producers.Leaf buds and young leaves (the ‘tips’)
are used in making tea, with the age of the leaves determining the taste and name of the
particular commercial variety. Orange pekoe is made from the youngest leaves and souchong
from the fourth leaves. After picking, the leaves are either dried immediately and completely to
produce green teas, such as gunpowder, or are partially dried and then allowed to ferment to
produce various kinds of black teas, such as orange pekoe and souchong. Oolong tea is partially
fired and then steamed, thus being intermediate between green and black teas.Recently,
medical research has indicated that green teas could have anti-cancer effects and this has
stimulated increased demand.After being sorted on the basis of size, all grades of tea are
packed in foil-lined chests or sacks to prevent the absorption of odors or the loss of aroma
during shipment. Tea is sometimes allowed to absorb the scent from various flowers; jasmine
and rose are particular favourites.

Classification of teas

Teas are classified according to region of origin, as in China, Ceylon, Japanese, Indonesian, and
African tea, or by smaller district, as in Darjeeling, Assam, and Nilgris from India, Uva and
Dimbula from Sri Lanka, Keemun from Chi-men in China’s Anhwei Province, and Enshu from
Japan.Teas are also classified by the size of the processed leaf. Traditional operations result in
larger leafy grades and smaller broken grades. The leafy grades are flowery pekoe (FP), orange
pekoe (OP), pekoe (P), pekoe souchong (PS), and souchong (S). The broken grades are: broken
orange pekoe (BOP), broken pekoe (BP), BOP fanning, fannings, and dust. Broken grades usually
have substantial contributions from the more tender shoots, while leafy grades come mainly
from the tougher and maturer leaves. In modern commercial grading, 95 to 100 percent of
production belongs to broken grades, whereas earlier a substantial quantity of leafy grades was
produced. This shift has been caused by an increased demand for teas of smaller particle size,
which produce a quick, strong brew.

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The most important classification is by the manufacturing process, resulting in the three
categories of fermented (black), unfermented (green), and semifermented (oolong or
pouchong). Green tea is usually produced from the China plant and is grown mostly in Japan,
China, and to some extent Malaysia and Indonesia. The infused leaf is green, and the liquor is
mild, pale green or lemon-yellow, and slightly bitter. Black tea, by far the most common type
produced, is best made from Assam or hybrid plants. The infused leaf is bright red or copper
coloured, and the liquor is bright red and slightly astringent but not bitter, bearing the
characteristic aroma of tea. Oolong and pouchong teas are produced mostly in southern China
and Taiwan from a special variety of the China plant. The liquor is pale or yellow in colour, as in
green tea, and has a unique malty, or smoky, flavour.

Chemical Composition

Physically speaking, tea has properties of both a solution and a suspension. It is a solution of all
the water-soluble compounds that have been extracted from the tea leaves, such as the
polyphenols and amino acids, but is a suspension when all of the insoluble components are
considered, such as the cellulose in the tea leaves. Tea infusions are among most consumed
beverages globally.]Caffeine constitutes about 3% of tea's dry weight, translating to between 30
and 90 milligrams per 250-millilitre (8+1⁄2 US fl oz) cup depending on the type, brand, and
brewing method.[56] A study found that the caffeine content of one gram of black tea ranged
from 22 to 28 mg, while the caffeine content of one gram of green tea ranged from 11 to
20 mg, reflecting a significant difference.[57] Tea also contains small amounts
of theobromine and theophylline, which are stimulants, and xanthines similar to caffeine.[ The
astringency in tea can be attributed to the presence of polyphenols. These are the most
abundant compounds in tea leaves, making up 30–40% of their composition. Polyphenols
include flavonoids, epigallocatechin gallate (EGCG), and other catechins.[60][61] Although there
has been preliminary clinical research on whether green or black teas may protect against

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various human diseases, there is no evidence that tea polyphenols have any effect on health or
lowering disease risk .

Health Benefits

Although health benefits have been assumed throughout the history of Camellia
sinensis's consumption, there is no high-quality evidence showing that tea consumption gives
significant benefits other than possibly increasing alertness, an effect caused by caffeine in the
tea leaves. In clinical research conducted in the early 21st century, it was found there is no
scientific evidence to indicate that consuming tea affects any disease or improves health.

Black and green teas contain no essential nutrients in significant amounts, with the exception of
the dietary mineral manganese, at 0.5 mg per cup or 26% of the Reference Daily
Intake (RDI). Fluoride is sometimes present in tea; certain types of "brick tea", made from old
leaves and stems, have the highest levels, enough to pose a health risk if much tea is drunk,
which has been attributed to high levels of fluoride in soils, acidic soils, and long brewing

Packaging

Tea Bags

In 1907, American tea merchant Thomas Sullivan began distributing samples of his tea in small
bags of silk with a drawstring. Consumers noticed they could simply leave the tea in the bag and
reuse it with fresh tea. However, the potential of this distribution and packaging method would
not be fully realised until later. During World War II, tea was rationed in the United Kingdom. In
1953, after rationing in the UK ended, Yorkshire-based tea manufacturer Tetley launched the
tea bag in the UK, and it was an immediate success.The "pyramid tea bag" (or sachet),
introduced by Lipton] and PG Tips/Scottish Blend in 1996,[attempts to address one of the
connoisseurs' arguments against paper tea bags by way of its three-
dimensional tetrahedron shape, which allows more room for tea leaves to expand while

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steeping. However, some types of pyramid tea bags have been criticised as being
environmentally unfriendly, since their synthetic material is not as biodegradable as loose tea
leaves and paper tea bags.

Loose Tea

The tea leaves are packaged loosely in a canister, paper bag, or other container such as a tea
chest. Some whole teas, such as rolled gunpowder tea leaves, which resist crumbling, are
vacuum-packed for freshness in aluminised packaging for storage and retail. The loose tea is
individually measured for use, allowing for flexibility and flavour control at the expense of
convenience. Strainers, tea balls, tea presses, filtered teapots, and infusion bags prevent loose
leaves from floating in the tea and over-brewing. A traditional method uses a three-piece lidded
teacup called a gaiwan, the lid of which is tilted to decant the tea into a different cup for
consumption.

Compressed Tea

Compressed tea (such as pu-erh) is produced for convenience in transport, storage, and ageing.
It can usually be stored longer without spoilage than loose leaf tea. Compressed tea is prepared
by loosening leaves from the cake using a small knife, and steeping the extracted pieces in
water. During the Tang dynasty, as described by Lu Yu, compressed tea was ground into a
powder, combined with hot water, and ladled into bowls, resulting in a "frothy" mixture. In
the Song dynasty, the tea powder would instead be whisked with hot water in the bowl.
Although no longer practiced in China today, the whisking method of preparing powdered tea
was transmitted to Japan by Zen Buddhist monks, and is still used to prepare matcha in the
Japanese tea ceremony. Compressed tea was the most popular form of tea in China during the
Tang dynasty. By the beginning of the Ming dynasty, it had been displaced by loose-leaf tea. It
remains popular, however, in the Himalayan countries and Mongolian steppes. In Mongolia, tea
bricks were ubiquitous enough to be used as a form of currency. Among Himalayan peoples,
compressed tea is consumed by combining it with yak butter and salt to produce butter tea.

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Instant Tea

"Instant tea", similar to freeze-dried instant coffee and an alternative to brewed tea, can be
consumed either hot or cold. Instant tea was developed in the 1930s, with Nestlé introducing
the first commercial product in 1946, while Redi-Tea debuted instant iced tea in 1953. Additives
such as chai, vanilla, honey or fruit, are popular, as is powdered milk.During the Second World
War British and Canadian soldiers were issued an instant tea known as "compo" in their
composite ration packs. These blocks of instant tea, powdered milk, and sugar were not always
well received. As Royal Canadian Artillery Gunner, George C Blackburn observed:But,
unquestionably, the feature of Compo rations destined to be remembered beyond all others is
Compo tea...Directions say to "sprinkle powder on heated water and bring to the boil, stirring
well, three heaped teaspoons to one pint of water." Every possible variation in the preparation
of this tea was tried, but...it always ended up the same way. While still too hot to drink, it is a
good-looking cup of strong tea. Even when it becomes just cool enough to be sipped gingerly, it
is still a good-tasting cup of tea, if you like your tea strong and sweet. But let it cool enough to
be quaffed and enjoyed, and your lips will be coated with a sticky scum that forms across the
surface, which if left undisturbed will become a leathery membrane that can be wound around
your finger and flipped away.

Bottle and Canned Tea

Canned tea is sold prepared and ready to drink. It was introduced in 1981 in Japan. The first
bottled tea was introduced by an Indonesian tea company, PT. Sinar Sosro in 1969 with the
brand name Teh Botol Sosro (or Sosro bottled tea). In 1983, Swiss-based Bischofszell Food Ltd.
was the first company to bottle iced tea on an industrial scale.

Facts about Tea

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All tea comes from the tropical plant known as Camellia sinensis. The tea plant grows best in a
warm climate with long sunlit days, cool nights and an abundance of rainfall. Tea plants grow at
altitudes ranging from sea level to 7,000 feet and on latitudes as far north as Turkey in the mid-
east and as far south as Argentina in South America.
China, Tibet, and northern India are the origins of tea, though it is cultivated in many other
countries across the globe, including Sri Lanka, Japan, Kenya, Turkey, Indonesia, Vietnam,
Argentina, Tanzania, Taiwan, Malawi, and Zimbabwe. The most complex teas grow at higher
altitudes and many bushes can be cultivated for over 100 years. Tea bushes cover about six
million acres of the earth and are harvested every week during the almost year-long growing
season.

After each winter season, the first small leaves and buds of the tea bush are hand-plucked and
harvested. Once exposed to air, the leaf will begin to wither. When the picked leaf becomes
pliable, it can then be turned into different types of tea.

A common misperception is that the various styles of tea are grown from different types of
plants. The fact is that all styles of tea come from the same Camellia sinensis tea plant;
however, the method in which they are processed varies, yielding the main classifications and
varieties of tea. White, Green and Yellow tea are produced by steaming the leaves after
plucking, thus eliminating the oxidation process. Oolong tea is allowed to oxidize for a short
period of time, and Black tea is allowed to react with the air and oxidize, turning the green
leaves black. Pu-erh tea is a style of black tea that has been piled and allowed to ferment
considerably.

Tea Today

Chine, regarded the original supplier of tea to the world has now been replaced by India, Sri
Lanka, Indonesia, a multitude of East African countries and South America. The popularity of

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tea, its benevolent nature as a plant, and the simplicity of its growth, harvesting and processing
has made it a rewarding crop for many “Third World” countries.

Tea that originated in China and Japan is fast moving towards industrialisation, but she still
exports the traditionally high-quality teas, some of which are still hand-rolled. They have a long
list of over 200 named teas that are regularly traded. This only goes to indicate that they intend
safeguarding their sophistication and refinement at the market place.

Commercial exploitation of tea in the British Colonies commenced with the discovery of this
plant growing wild in the forests of Assam in 1830. It was Lord William Bentinck, the then
Governor General who set up a tea committee in 1834 to investigate the possibilities of its
commercial cultivation in the Presidency of Bengal. In 1836 the first Assam grown tea was sent
to London.

In England, tea became the commoner’s drink after the newly opened up tea plantations in
India started to produce large quantities to replace the Chinese varieties. It was the Bruce
brothers who first found the indigenous tea plants growing wild in the unexplored jungles of
Assam. Until then, the British were totally ignorant of what they were in for. Tea cultivation in
India began enthusiastically only after the abolition of the Britain-China treaty in 1833.

In the early 1860’s tea caught the imagination of all kinds of people. The “Tea Rush” was on.
Many ill-founded enterprises were launched, mismanagement was common, and fraud was not
unknown. Disaster followed soon thereafter, and the rush then was to get out. Tea cultivation
started on its second journey under better financial management.

Exports rose from 366,700 pounds in 1853 to 13,400,000 pounds in 1870. Exports rose steadily
and a period of great prosperity dawned during the First World War This situation prompted
the chairman of the Indian Tea Association to say that the tea industry had come through the
war without disaster.

19
LITERATURE
REVIEW

20
Over the past three decades the environmental concerns has increased (Yeonshin Kim &Sejung Marina
Choi, 2005) ecological issues are very important and very much d i sc u s se d n o w a d a ys (Gupta, O g d
e n, 2 0 09 : 3 76 ). To prove that, for example, it is possible to see a lot of articles about ecology in
different quality newspapers like Dagan’s Nyheter (example: Vi mastebill bastepamiljö. We have to be
on the market. Companies started to use environmental strategies and produce environment- friendly
products, which are supposed to be good for humans, nature and company’s owner potation on the
market (Espy, Winston, 2009:3, 13). Although ecological products market share is not that big, during
the last years it was noticed the steadily growing demand on these kinds of products (SD, 2009). A lot of
companies from different fields have ecological goods now: everything becomes ecological- from food
(ecological milk from Aral) to cars (Miljötaxi in Stockholm). Some other examples of ecological products
are recyclable and reusable packaging, nonpolluting products, energy efficient bulbs and etc. (Marnier et
al, 2001). In order to distinguish ecological products from ordinary ones companies put special ECO-
labels on them (Gallastegui, 2002:316; Teals, Roe, Hicks, 2001:339). An eco- label is a label or logo to
certify that a product meets high environmental and performance standards and has less impact on the
environment than non-labeled products. Beyond this environmental aspect, it also shows that a
company is socially responsible (Ghauri & Caterer, 2005:475). One of the first ecological labels was The
EU Evocable. It was established in 1992 to persuade businesses to produce products and services which
are good for the environment. The European Ecolabeled products and services are stamped with a
flower logo, allowing consumers recognize them simply. (European Commission Environment - Ecolable,
2008:7). It is estimated that Europe's green consumer will increase over 100% in 2009 and reach € 114
billion in 2015 (eMarketer Green, 2010:7). Once the problem is formulated, the researcher has to
undertake an extensive literature survey related to problem. The literature survey undertaken here
includes books and different websites from the internet. Schiffman G. Leon and kanuklazare Leslie -
Study of the customer behaviour includes the study what they buy, when they buy it, when they buy it,
where they buy it, how often they buy it and how often they use it. Gupta C.B and Dr. Nair N. Rajan- A
business is based on understanding the customer and providing the kind of products that the customer
wants. Mamoria C.B. and Mamoria Satish Consumer behaviour is the process whereby individuals decide
what, when, where, how and from whom to purchase goods and services. Nair Suja R. The success of the
firm will be determined by how effective it has been in meeting the diverse customer needs and wants
by treating each customer as unique and offering products and services to suit his/her needs. Bennett
Peter D. And Kassarjian Harold- A great deal of research activity in marketing is design to shed light on
the customer decision process. Kothari C.R. For data analysis different statistical techniques are being

21
used such as scaling techniques, correlation, hypothesis testing.without polluting/, L. Be, 2011) or Los
Angeles Times (example: Why isn't more wine'organic, W. Blake Gray, 2011). areas, from agriculture to
transport (EC environmental integration, 2010). According to Dagan’s Industry (DI, 2009), sales of
organic (environment friendly) foods are rising despite these type of products still have only small share

Types of Tea

Green tea

Tea is one of the most popular beverages consumed worldwide. Tea, from the
plant Camellia sinensis, is consumed in different parts of the world as green, black, or
Oolong tea. Among all of these, however, the most significant effects on human health have
been observed with the consumption of green tea [17]. The first green tea was exported
from India to Japan during the 17th century. It is estimated that about 2.5 million tons of
tea leaves are produced each year throughout the world, with 20% produced as green tea,
which is mainly consumed in Asia, some parts of North Africa, the United States, and
Europe [18]. The association between tea consumption, especially green tea, and human
health has long been appreciated [19,20]. Green tea and black tea are processed differently
during manufacturing. To produce green tea, freshly harvested leaves are immediately
steamed to prevent fermentation, yielding a dry, stable product. This steaming process
destroys the enzymes responsible for breaking down the color pigments in the leaves and
allows the tea to maintain its green color during the subsequent rolling and drying
processes. These processes preserve natural polyphenols with respect to the health-
promoting properties. As green tea is fermented to Oolong and then to black tea,
polyphenol compounds (catechins) in green tea are dimerized to form a variety of
theaflavins, such that these teas may have different biological activities.

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Herbal Tea

Herbal tea, according to many, look like tea and is brewed

as the same way as tea, but in reality it is not considered a
tea at all. This is due to the fact that they do not originate
from the Camellia Sinensis bush, the plant from which all
teas are made. Herbal teas are actually mixtures of
several ingredients, and are more accurately known
as‘tisanes.’ Tisanes are made from combinations of dried
leaves, seeds, grasses, nuts, barks, fruits, flowers, or other
botanical elements that give them their taste and provide
the benefits of herbal teas.

Unlike most other forms of tea, herbal teas do not contain

caffeine. They also taste great and are easy to drink. Most
herbal teas may consist of one main herbal ingredient or a
blend of herbal ingredients, intended to bring about a
specific purpose, such as relaxation, rejuvenation, relief
from a specific condition, amongst other things.

It is also important to understand that there are a huge

variety of herbal teas available in the market, each of which
is designed to have a specific therapeutic or medicinal
benefit.

Oolong Tea

23
Oolong tea (OT) is a traditional Chinese tea (Camellia sinensis) and is especially
popular in south China. This review is to comprehensively summarize the
miscellaneous research that has been done towards to the processing,
phytochemistry, health benefit, and risk of OT. These literatures were carried out
not only from different electronic databases but also from text books written in
English, Japanese, and Chinese, including those traditional records tracing back to
the Tang Dynasty (A.D. 618-907). The full process OT producing is depicted below in
this review. The phytochemistry of OT has been comprehensively investigated.
More than 100 chemical compositions have been isolated and identified. In health
benefit, OT performs outstandingly in reducing obesity and controlling diabetes
explained by modern pharmacological studies. (-)-Epigallocatechin-3-gallate (6) in
OT prevention of cancerous cells developing. OT can also improve and reduce on
heart and vascular disease, protect teeth and bone, function as anti-oxidative and
antibacterial agents. This review also mentioned the risk, summarized briefly on
various forms of toxicity and harmful associated with OT. In short, this review can
provided a natural product library of OT, gave inspirations for further new garden
systems, designed idea on quality, bioactivity-oriented screening. In addition, it is
suggested more scientists and education is necessary to guarantee the stability and
safety of drinking OT.

Black Tea

To consider whether consumption of black tea has a positive or negative impact on health.
Databases were searched for relevant epidemiological and clinical studies published between
1990 and 2004. Clear evidence was found for coronary heart disease (CHD), where an intake of
> or = 3 cups per day related to risk reduction. The mechanism could involve the antioxidant
action of tea polyphenols. While experimental models have suggested that flavonoids
attenuated cancer risk, epidemiological studies failed to demonstrate a clear effect for tea,
although there is moderate evidence for a slightly positive or no effect of black tea
consumption on colorectal cancer. Studies on cancer were limited by sample sizes and
insufficient control of confounders. There is moderate evidence suggestive of a positive effect

24
of black tea consumption on bone mineral density although studies were few. There is little
evidence to support the effect of tea on dental plaque inhibition but evidence to support the
contribution of tea to fluoride intakes and thus theoretical protection against caries. There was
no credible evidence that black tea (in amounts typically consumed) was harmful. Normal
hydration was consistent with tea consumption when the caffeine content was < 250 mg per
cup. A moderate caffeine intake from tea appeared to improve mental performance, although
sample sizes were small. There was no evidence that iron status could be harmed by tea
drinking unless populations were already at risk from anaemia. There was sufficient evidence to
show risk reduction for CHD at intakes of > or = 3 cups per day and for improved antioxidant
status at intakes of one to six cups per day. A maximum intake of eight cups per day would
minimise any risk relating to excess caffeine consumption. Black tea generally had a positive
effect on health.

White Tea

White tea (WT) is one of the rarest, least produced, and expensive types of tea, which has only
gained attention in the last decade. The WT manufacturing process, that is, Camellia
sinensis fresh leaves/buds being dried, is minimal compared to production processes used for
other types of Tea. For that reason, WT retains a high amount of its polyphenols, especially
catechins. Once catechin content has been associated with antioxidant activity, WT presents
potent antioxidant properties. Several studies have investigated the physiological relevance of
WT in biological processes modulated by oxidative stress. WT demonstrated important
preventive and therapeutic properties in human conditions such as, obesity, cancer,
neurodegenerative diseases, diabetes mellitus, cardiovascular diseases, and fertility
dysfunctions. Thus, the consumption of WT is popularly described as healthy practice, though it
is not very common among tea consumers. Its inclusion in food supplements could be an
effective measure to maximize the health benefits of WT.

25
Masala Tea

Masala Chai is a blend of an array of spices that carry loads of benefits, so it’s a clear-cut fact that
this beverage would be loaded with nutrients and health benefits.The first and foremost is that it
wakes you up in the mornings. The black tea leaves used in the preparations are a great source of
caffeine. The other spices in the blend balance out the caffeine so it doesn’t harm you but actually
provide you with an energy boost that will keep you moving all day.The cinnamon and clove help
in boosting your immunity. They act as a defence line when it comes to fighting off infections and
common illnesses.The anti-inflammatory properties in many of the spices help relieve aches and
pains. Ginger, especially, helps in improving blood circulation which alleviates many symptoms of
cramps, aches, and pains. Ginger and cloves, together, work as painkillers.The spices create a
calming effect on the body that helps the organs run more smoothly. The blend of Tulsi and elaichi
with the ginger and cloves help in improving the digestive system.

Earliest reference of a Tea

Tea, although not indigenous to Ceylon, had attracted a great deal of attention in the Island. A
few experiments had been carried out even before coffee became a major export crop.

Ceylon received the first consignment of tea seeds from Assam at the Gardens in Peradeniya in
December 1839.

Facts with regards to the first introduction of Assam tea into this colony are as follows:-- “In
December 1839, Dr. Wallich, the eminent Indian Botanist, at that time as head of the Calcutta
Botanical Gardens, sent to Peradeniya, seeds of the then recently discovered “Indigenous
Assam Tea," and these were followed in February 1840 by 205 plants. In May, the

26
Superintendent of Peradeniya, Mr. Normansell, sent several plants to Nuwara Eliya, and a
person supplied to look after them. This was after representations were made to the
government that tea was likely to prove a “new and profitable speculation, and a valuable
source of revenue to the government."

Again in April 1842, another instalment of Assam plants was received from Dr. Wellich, and in
October some of these were sent to Mr. Mooyart at Nuwara Eliya with directions to cultivate
them, but was not sure as to what became of them.

By accident he met in London E. F. Gapp, to whose care the plants had been sent. He was at
that time tutor to the son of Sir. A. Oliphant, Chief Justice of Ceylon. He informed that in
October 1842 he received the plants from Mr. Mooyart at Nuwara Eliya, about thirty in
number, and cleared a piece of jungle for them on Sir Anthony’s land. They were doing well
when he left the island a few years after. Mr. Gapp thinks the ground was somewhere in the
neighbourhood of the present Queens Cottage. Some of the Nuwara Eliya plants were put out
near Essex Cottage, now Naseby tea plantations.and it may be worth a search to discover
whether these plants are still in existence.

Worms' brothers of the Rothschild family had in 1841, attempted to raise the Chinese tea plant
on a correctly prepared clearing on Rothschild estate Pussellawa, and later on Lobookellie on
the slops of Ramboda Pass. Manufacture was undertaken with the assistance of a Chinese tea
maker. The project was abandoned due to high costs involved, which often exceeded pounds
sterling 5 per pound. Many other planters too tried growing tea as a subsidiary crop to coffee,
but all failed due to the high cost involved in its manufacture.

Very little headway was made during the initial stages to expand its cultivation. Though the first
attempt at manipulating the leaf was a total failure, the tea plants flourished well.

When the above properties were taken over by the Ceylon Company Ltd. in 1865, they found a
small extent of tea on Congeal on the Ramboda Pass, growing well, and soon they began to pay
attention. An Assam tea planter of some experience was employed to manage the estate,

27
assisted by Bengali coolies, but the experiment did not prove a success. This in a way prevented
other planters from taking to tea planting in a big way.

In a much quieter way, and as early in the field, the then proprietors of Loolecondera estate
Hewaheta, Messes G. D. B. Harrison and W. M. Leake and later the Anglo Ceylon and General
Estates Company Ltd. who under the careful management of Taylor, were able to acquire the
highest eminence among Ceylon teas?

Taylor on Harrison’s orders, collected tea seeds from the Peradeniya Gardens and planted them
along the road sides in 1866. Further, Mr. W. M. Leake, being the Secretary of the Planters
Association, was able to influence the Governor to send Mr. Arthur Morice an experienced
coffee planter on a mission to India to inspect and report on the Assam tea districts. The report
that followed was well accepted by the planting community. This report persuaded Mr Leake to
order for his firm M/s Keir Dundas & Company a consignment of Assam hybrid tea seeds in
1866. These seeds were handed to the care of Taylor, who in turn planted them in a clearing of
twenty acres,

In almost four year's Taylor was able to sell his teas in the Kandy market. The samples
forwarded to London however were also well reported on, and this convinced them to extend
their cultivation further. Taylor, being a perfectionist, was involved in the manipulation of the
leaf, so as to obtain the best possible results. He was lucky to have served under Mr. Jenkins, an
Assam tea planter, who knew all the complexities of tea manufacture. He was able to draw on
his knowledge, and before long Taylor too became an expert tea maker and began to produce
teas equal to Assam’s in preparation and quality. The Company continued to import Indian tea
seeds on a regular basis, and Loolecondura teas began to be classed as being equivalent to the
best in the world.

Taylor died on 2nd May 1892, and his successor Mr. G.F. Deen reporting on the same fields
twenty-seven years later, had the following to say. “They are still full of vigour, showing no
signs of decay and up to date the oldest tea fields have been giving yields at the rate of 471
pounds of made tea per acre. It is still flushing and yielding well."

28
Commercial planting of a Tea

It was not until 1867 that tea came to be grown commercially, and it was James Taylor who
proved on Loolecondera that tea could be grown profitably as an alternate crop to coffee that
was on its way out. Had it not been for the pioneering efforts of the British planters who took to
tea with confidence rather than with despair, coffee would have gone on its way and thousands
and millions of people the world over would not be enjoying “Ceylon” tea today.

With the coffee industry fast failing, the British planters had a choice of other products such as
cinchona, cardamoms, cocoa, Indian Rubber, Liberian coffee, and many others, but only a very
few turned out to be as promising as tea.

It was the belief, and often remarked, that the western and the greater portion of the central
divisions of the island were evidently intended by nature for tea growing. “Leafage” is the
predominant characteristic of the vegetation, and the constant humidity and the almost
uninterrupted monthly rainfall, often so averse to blossom and fruit formation, were the ideal
conditions in which the tea plant ought to flourish, and bring forth flushes more abundantly.

With the future of tea now looking bright, the problem of obtaining planting material in
sufficient quantities to meet the ever increasing demand surfaced as a major restraint to its
steady progress. A large quantity of plants of both the Assam hybrid and the Chinese variety
was distributed from Peradeniya and Hakgala Botanical Gardens during the period 1873 and
1874. These were found insufficient, and the planters were forced to turn to India for the
supply of Assam tea seeds. A considerable business in tea seeds resulted during the initial
stages, but with the steady growth in the tea coverage, a great deal of local tea seeds was
available from the older plantations.

Elphinstone, a pioneer coffee planter, who witnessed the conversion to tea, was quick to take
advantage of this difficulty, and became the forerunner in the sale of tea seeds in the country.

29
In 1882 he was able to raise an extra Rs. 16,000 from the sale of tea seeds from Horagalla
estate (Nagastenne Group) Dolosbage. By 1890, there was not a single planting district in the
island, in which tea did not dominant, except perhaps in places such as Dumbara, Pangwilla,
and in lower divisions of Matale, where cocoa was being tried out.

Innovative role played by the private sector come into prominence thereafter. The introductory
care taken by the Worms Brothers in the promotion of coffee and then tea cultivation in the
country cannot, at this stage be disregarded. “The Warms brothers belong to a remarkable
family," says Ukers in his book All About Tea. The eldest, Solomon, was the first Baron de
Worms, son of Benedict Worms of Frankfort-on-Main, and his spouse, who was the eldest sister
of the Baron de Rothschild. The brothers were born traders and adventurers. They were both
members of the London Stock Exchange. The sprit of adventure made Maurice to set sail East in
1841, and Gabriel followed him the ensuing year. They set themselves up in shipping and
banking business, with Maurice looking after the planting end in the up-country. He
inaugurated the planting enterprise in the country with some Chinese cuttings, which he
brought home after a voyage in 1841.”

Subsequently, the Ceylon Company, which later was renamed the Eastern Produce and Estates
Company Ltd. imported Indian labour, and under the direction of Mr. Jenkins, a retired tea
planter from Assam, were able to make tea by hand in a temporary factory at Condegalla and at
Hope.

The 2000 acre Rothschild estate at Pussellawa was well known for its completeness and
efficiency, and was considered a model for others to review. For over twenty-five years
Rothschild tea was the standard for quality in Mincing Lane. With the start made at Pussellawa,
they soon reached out and opened Keenakelle in Badulla, Meddecombra in Dimbulla,
Thotulagalla in Haputale, Condegalla and Labookelle in Ramboda, and Norwood in Dikoya, with
the total holdings of 7318 acres. They held these properties for twenty-four years and sold
them to the Ceylon Company for Pounds sterling 157,000, considered a record transfer of
European-owned assets.

30
Whilst on this subject, mention must be made of the other famous coffee estates that went
over to tea. There was Delta estate, adjoining Rothschild on the one side, owned by Rev, James
Glenie, and Captain Harry Bird’s Black Forest where Mr. F.R.Sabonadiere, the founder of
Sabonadiere & Company Colombo resided.

The progress made into tea was rapid, but there was a period of mistrust that existed between
1867 and 1874. The rush into tea really started in 1875. The extant under tea increased from
350 acres in 1874 to 1,080 in 1875, and by 1883 the tea coverage had expanded to 32,000
acres.

By mid 1875, tea was growing in thirteen districts out of the thirty-seven planting areas then
recognised. There were no tea plantations north of Kandy, and none on the Uva side. Hewaheta
no doubt is indicated as the oldest stronghold of the tea plantations, but what is most
significant is the rate of development that took place in the district of Nuwara Eliya and
Yakdassa. In 1875 when James Taylor had planted 100 acre's tea in Loolecondera in Hewaheta
lower, Jenkins on Hope in Hewaheta upper had expanded the tea coverage to 136 acres.

In most cases, estates opened up in the Nuwara Eliya district had been mainly for growing tea,
and it is only for this reason that it had acquired the proud title of a “Tea District." The leading
planter in this district was L.A.Rossiter who in 1875 owned 203 acres. Rossiter remained the
owner and superintendent of Fairyland (35 acres) Hazelwood (18 acres) and Oliphant (150
acres), with Alston Scott & Company as agents.

He also owned Florence in Yakdassa comprising 100 acres of prime tea. He had been operating
extensively in the purchase of suitable tea lands, and amongst them was Ratnillakelle, which he
named the “Great Western” estate. Other plantations were Pedro (35 acres) owned by F.Bayley
and Tullibody (50 acres) owned by G.Armitage, both under the supervision of E.A Watson.

During the initial stages, it was the China jat that was widely used in the country with good
results, and the reports received from the London brokers had been vary favourable. It was Dr
Thwaites, the then director of the Botanical Gardens who directed the public to the advantages

31
of this hardy plant. At the early stages, there were doubts as to the suitability of Assam jat at
elevations above the limit of coffee.

This impression however was dispelled when Assam varieties were found flourishing well at the
Hakgala gardens in the 1860’s. In 1872, Dr Thwaites saw no reason why the sides of the higher
mountains should not be covered with tea, and by 1875 the cultivation of tea in the island was
an established commercial success.

Taylor sold his first lot of Assam hybrid tea in Kandy in 1872, and in the following year 23
pounds were valued at Rs. 58 and sent to London. Expansion of tea cultivation thereafter was
accelerated, and the two Botanical gardens were hard pressed to supply the industry with the
required planting material.

Development of the Small Holder Sector

The plantations in the South were opened up during the early part of the twentieth century. It
was no doubt an uphill task all the way, but they took it on the stride, and although the start
was difficult, the Korean Boom of the 1950’s provided them with the much needed capital, and
assured them of a steady growth for the future.

Another important event that affected the progress of this sector came about with the Land
Reform Law No 1 of 1972. Until the above reforms were enforced, there was no law in the
country that fixed a sealing on land ownership. By 1972, there were about 5,600 owners of
agricultural property who had nearly 1.3 million acres with an average land holding of 200
acres, as against the national average of 0.36 acres per person. The maximum extent of land
that may be owned by any person was defined as follows:

(a) If such land was exclusively paddy land, 25 acres, OR

(b) If such land does not consist exclusively of paddy land, then 50 acres.

32
Under this new law, lands owned by public companies and religious institutions were exempt. It
was at this stage that the expansion of the small holder sector really developed.

According to a survey conducted in 1874, the total population of Ceylon was 852,000 of which
47% lived in the maritime provinces stretching from Chilaw to Tangalle, reflecting a very high
concentrating of people along the sea coast. All of them were not Sinhalese. Many were
Europeans, but there were also Chettiars Burghers and Malays. In addition, there was a regional
distribution between the low country Sinhalese and those of the Kandyan provinces.

British as the Colonial masters accepted the differences present among the Sinhalese, but
established a judicial and administrative system which held all people equal before the law.

Under the British, no one was discriminated against, and everyone benefited from the
expanding economy. Casts became increasingly a matter for political concern, although a
differentiation was generally made on an occupational basis.

In the case of the Sinhalese, the community’s major internal division has been geographical
between the Kandyan families and the aristocratic families in the low country. This division was
broadly reinforced by their respective economic resources. The Kandyan families, holders of
Nindagam (Kings land) found themselves reduced to poverty after the unification of the country
by the British in 1815. Many of the low country aristocracy however maintained or enhanced
their economic power through the cultivation of commercially viable lands in coconut, rubber
tea and other products.

The people of the low country had been greatly influenced during the long years of colonial
rule. They had been constantly exposed to the economic propositions and activities of the
West, whereas the Kandyans prided themselves on embodying the virtues of Sinhalese
traditionalism.

The people living in the maritime provinces on the other hand were considered more
responsive to changes, and after having acquired all the trading skills of the foreign invaders,

33
they came to be regarded as giants in commerce trade and industry, though out of proportion
to their numerical size.

The older families from Moratuwa and Panadura such as the De Mels, the Peirises, and the De
Soysas were heavily involved in the estate owning sector, chiefly in coconut and rubber, and
later tea. The older generation followed a pattern of accumulation rather than
entrepreneurship, while the younger generation took up too commercial and trading activities.

A great deal has been said about the British planter who started a great plantation industry in
the early 1830’s. Very little is known of their local counterparts who alongside the British
helped to establish a plantation enterprise in the island at about the same time.

Tea Plantation

34
tea production, cultivation of the tea plant, usually done in large commercial operations. The
plant, a species of evergeen (Camellia sinensis), is valued for its young leaves and leaf buds,
from which the tea beverage is produced. This article treats the cultivation of the tea plant. For
information on the processing of tea and the history of its use, see the article tea.

Varieties

The natural habitat of the tea plant is considered to be within the fan-shaped area between the
Nagaland, Manipur, and Lushai hills along the Assam-Myanmar (Burma) frontier in the west;
through to China, probably as far as Zhejiang province in the east; and from this line south
through the hills of Myanmar and Thailand into Vietnam. The three main varieties of the tea
plant, China, Assam, and Cambodia, each occur in their most distinct form at the extremes of
the fan-shaped area. There are an infinite number of hybrids between the varieties; such
crosses can be seen in almost any tea field.

The China variety, a multistemmed bush growing as high as 9 feet (2.75 metres), is a hardy
plant able to withstand cold winters and has an economic life of at least 100 years. When
grown at an altitude near that of Darjiling (Darjeeling) and Sri Lanka (Ceylon), it produces teas
with valuable flavour during the season’s second flush or growth of new shoots.

The Assam variety, a single-stem tree ranging from 20 to 60 feet (6 to 18 metres) in height and
including several subvarieties, has an economic life of 40 years with regular pruning and
plucking. The tea planter recognizes five main subvarieties: the tender light-leaved Assam, the
less tender dark-leaved Assam, the hardy Manipuri and Burma types, and the very large-leaved
Lushai. In Upper Assam the dark-leaved Assam plant, when its leaves are highly pubescent,
produces very fine quality “golden tip” teas during its second flush. (The Chinese
word pekho, meaning “white hair” or “down,” refers to the “tip” in tea, which is correlated with
quality.)

35
The Cambodia variety, a single-stem tree growing to about 16 feet (5 metres) in height, is
not cultivated but has been naturally crossed with other varieties. The mature leaves of the tea
plant, differing in form according to variety, range from 1.5 to 10 inches (3.8 to 25 cm) in
length, the smallest being the China variety and the largest the Lushai subvariety. In harvesting,
or plucking, the shoot removed usually includes the bud and the two youngest leaves. The
weight of 2,000 freshly plucked China bush shoots may be 1 pound (0.45 kg); the same number
of Assam shoots may weigh 2 pounds (0.9 kg). Tea leaves may be serrated, bullate, or smooth;
stiff or flabby; the leaf pose ranges from erect to pendant; and the degree of pubescence varies
widely from plant to plant.

Cultivation

Three considerations in planning a tea estate are climate, soil acidity, and labour availability.

A suitable climate has a minimum annual rainfall of 45 to 50 inches (1,140 to 1,270 mm), with
proper distribution. If there is a cool season, with average temperatures 20 °F (11 °C) or more
below those of the warm season, the growth rate will decrease and a dormant period will
follow, even when the cool season is the wetter one.

Tea soils must be acid; tea cannot be grown in alkaline soils. A desirable pH value is 5.8 to 5.4 or
less. A crop of 1,500 pounds of tea per acre (1,650 kg per hectare) requires 1.5 to 2 workers per
acre (3.7 to 4.9 workers per hectare) to pluck the tea shoots and perform other fieldwork.
Mechanical plucking has been tried but, because of its lack of selectivity, cannot replace hand
plucking.

Scientific study of tea production began about 1890. Most tea-producing countries maintain
scientific research stations to study every aspect of the subject, including seed production,
clonal selection (for the propagation of single leaf cuttings), tea nursery management,
transplanting, development of the bush and subsequent pruning and plucking, soil
management and fertilizer use, and the ultimate replanting of the stand. Although procedures

36
in all countries are related, appropriate details must be determined for each area. Since 1900,
advancements in tea cultivation have increased the average yield per acre in Assam from 400 to
1,000 pounds (180 to 450 kg), with many estates producing over 1,500 pounds (680 kg).

Pest and Diseases

The tea plant is subject to attack from at least 150 insect species and 380 fungus diseases. In
northeast India, where 125 pests and 190 fungi have been detected, losses from pests and
diseases have been estimated at 67 million pounds (30 million kg) of tea per annum. More than
100 pests and 40 diseases occur in the tea fields of Japan. Sri Lanka, where estates are close
together or contiguous, has recorded many blights and suffered serious losses. Africa has little
trouble with blights; the tea mosquito (Helopeltis theivora) is the only serious pest. The
Caucasus, with a climate similar to that of Japan, grows the China variety of plant and has no
serious pests or blights.

Blight control has become highly developed. Northeast Indian scientists have issued a list of 40
approved proprietary pesticides. Some of these pesticides cannot be applied during the
plucking season; others require that the two subsequent rounds of weekly pluckings be
discarded.

History of Tea Trade

According to legend, tea has been known in China since about 2700 BCE. For millennia it was a
medicinal beverage obtained by boiling fresh leaves in water, but around the 3rd century CE it
became a daily drink, and tea cultivation and processing began. The first published account of
methods of planting, processing, and drinking came in 350 CE. Around 800 the first seeds were
brought to Japan, where cultivation became established by the 13th century. Chinese
from Amoy brought tea cultivation to the island of Formosa (Taiwan) in 1810. Tea cultivation in

37
Java began under the Dutch, who brought seeds from Japan in 1826 and seeds, workers,
and implements from China in 1833.

In 1824 tea plants were discovered in the hills along the frontier between Burma and the Indian
state of Assam. The British introduced tea culture into India in 1836 and into Ceylon (Sri Lanka)
in 1867. At first they used seeds from China, but later seeds from the Assam plant were used.

The Dutch East India Company carried the first consignment of China tea to Europe in 1610. In
1669 the English East India Company brought China tea from ports in Java to the London
market. Later, teas grown on British estates in India and Ceylon reached Mincing Lane, the
centre of the tea trade in London. By the late 19th and early 20th centuries, tea growing had
spread to Russian Georgia, Sumatra, and Iran and extended to non-Asian countries such as
Natal, Malawi, Uganda, Kenya, Congo, Tanzania, and Mozambique in Africa, to Argentina, Brazil,
and Peru in South America, and to Queensland in Australia.

38
OBJECTIVES OF
THE STUDY

39
• To know which brand is preferred by the customer to purchase.

• To study the effect of various promotional schemes given by the companies.

• To study whether the customers are brand loyal or not.

• To study the reasons of being loyal to the brands

• To know the satisfaction level of customers.

• To know the customers awareness regarding tea.

40
 RESEARCH
METHODOLOGY

The present study is “DESCRIPTIVE” in nature, as it seeks to discover ideas and insight to bring out new
relationship. The main objective of the study is to discover the various measures adopted for motivation
of customers and also seeing that whether the customers are satisfied or not. Data collection is done t h
r o u g h the structured questionnaire, observations and personal interviews.

Sample Size: 120

Sampling Design: Convenient Sampling method has been used.

41
Data collection:

For the purpose of the present study, data from two sources has been collected, namely
primary data and secondary data.

PRIMARY DATA: Primary data is source from which the researcher collects the data.
It is a first-hand data, which is used directly for the analysis purposes. Primary data always
gives a researcher a fairer picture. In the present study primary data has been collected using
questionnaires. For the purpose of collecting the same, 50 respondents have been randomly
selected. Even the response of the respondents was taken into consideration. In this study,
primary data plays a vital role for analysis, interpretation, conclusion and suggestions.

SECONDARY DATA: Secondary data is data which is collected and compiled for
other purposes. Secondary data also plays a key factor in providing more information which
will influence the analysis. Few of the main sources of secondary data include newspapers,
magazines, business journals, internet.

Data has been collected from the primary as well as secondary source. Primary Data collected through
questionnaire while the secondary data has been collected from the company’s website and their
manuals, handbooks and journals and other records.

 Number of people aware of tea brands available in the market.

 People using branded tea.
 Most popular used tea.
 Bases on which people buy tea like Quality, Price, taste, aroma etc. From retailer view
point a hypothetical study is performed concerning the selection and sale of tea. The retailer
mainly focuses on the sale of tea as per demand its in the market. Extensive mixtures of
branded as well as unbranded tea are available with the retailers. From the survey it can be
concluded that nearly 65% of the consumer select branded as well as unbranded tea and 35%
of the consumer specifically prefers branded tea. The tea brands that are mostly available in
retail shops are Tata Gold, Tata Agni, Tata tea Premium, Tetley, Taj Mahal, Brooke Bond Red
Label, Brooke Bond Red Label Nature Care, Society tea, Wagh Bakri Chai, Surya Tea and Loose

42
ANALYSIS AND
INTERPRETATION
OF DATA

43
 Table No. 1 (Consumption Times)

Times No. of Respondents % of Respondents

1 13 1

2 23 1

3 43 3

4 or more 41 3

Total 120 1

Table no.1 describes the times of tea consumption in a day. From the analysis of the study it has been
found that largest majority of people (36%) are consuming tea three times in a day and it is followed by
34% people those consuming 4 times or more than 4 times. Two times in a day consumed by 19% of
people, while only 11% are found that they are taking tea one time in whole day. Since it is mete out
that the 70% of sample are consuming the tea more than 3 to 4 times Table no.1 describes the times of
tea consumption in a day. From the analysis of the study it has been found that largest majority of
people (36%) are consuming tea three times in a day and it is followed by 34% people those consuming
4 times or more than 4 times. Two times in a day consumed by 19% of people, while only 11% are found
that they are taking tea one time in whole day. Since it is mete out that the 70% of sample are
consuming the tea more than 3 to 4 times.

44
 Table No.2 (Type of Using Tea)

Type No. of Respondents % of Respondents

Black 13 1

Dark 53 4

White 21 1

Other 33 2

Total 120 1

Above table 2 stating that largest majority of people 44% are using the dark tea, while 17% and 11% are
consuming white and black tea respectively and the remaining 28% respondents likes other type of tea.
Since it can be said, that near to half of sample size preferring the dark tea.

Table No. 3 (Awareness of the Ingredients of the Tea)

Awareness No. of Respondent % of Respondent

yes 43 3

No 77 6

Total 120 1

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From the above table no. 3 it has been found that out of 120 respondents, 6% of the respondents are
aware of the ingredients of the tea while the remaining 64% respondents are unaware of the ingredients
of the tea.

Table No. 4 (Quality Standard)

Response No. of Respondents % of Respondents

Yes 49 4

No 71 5

Total 120 10

Table no. 4 describes whether the tea is approved by ISI or any other quality standard. From the analysis
it has been found that out of 120 respondents 41% of the respondents check whether the tea is ISI or
any other quality standard approved and the remaining 59% respondents did not check whether it is of
quality standard or not

Table No. 5 (Knowledge of Tea)

Source No. of Respondents % of Respondents

Sales Promotion 19 1

advertisement 47 3

Internet 06 0

Family & Friends 48 4

Total 120 10

46
The above table no. 5 presents that out of 120 respondents, 39% respondents usually obtain tea
information by advertisement, 16% by sales promotions, 5% by the medium of internet and the
remaining 40% by their family and friends of the society.

Table No. 6 (Form of Tea)

Form No. of Respondents % of Respondents

Loose Tea 67 5

Tea Bags 39 3

Tea Drink 04 0

Others 10 0

Total 120 10

The above table no . 6 shows that out of 120 respondents, 56% respondents prefer to use loose tea,
33% tea bags, 3%tea drinks and the remaining 8% prefer any other form of tea.

Table No. 7 (Brand of Tea)

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 Brand No. of Respondents % of Respondents

Taj Mahal 25 2

Tata Tea 67 5

Tazza 14 1

Goodricke 14 1

Total 120 1

Table no. 7 relates the brand of the tea which the respondents are using. According to the survey of 120
respondents, it has been found that 56% of the respondents are using Tata Tea, 21% are using Taj
Mahal, 11% using Tazza Tea and remaining 12% are using Goodricke Tea.

Table No. 8 (Knowledge about the Tea Manufacturer)

Information No. of Respondents % of Respondents

Lack of Knowledge 57 4

Adequate 24 3

Sufficient Knowledge 39 2

Total 120 10

From the above table no. 8 it has been found that out of 120 respondents, 47% of the respondents do
not have any knowledge about their tea manufacturer, 20% have adequate and the remaining 33% have
sufficient knowledge. Approximate half of the respondents do not have knowledge about the tea
manufacturer.

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 Table No. 9 (Package Preference of Tea)

Package No. of Respondents % of Respondents

50g 17 1

100g 29 2

250g 55 4

1kg 19 1

Total 120 1

The above table no. 9 describes that out of 120 respondents, 46% use 25 g packaging of tea,
14% prefer to use 50g , 24% prefer 100g and the remaining 16% prefer 1kg packing of tea.

Table No. 10 (Purchasing of both Local and Branded Tea)

Response No. of Respondents % of Respondents

Yes 50 42

No 70 58

Total 120 100

According to the above table it has been found that out of 120 respondents, 42% of respondents
purchase both local and branded tea and remaining 58% are using only the branded tea. Since it is mete
out that the 58% of sample are purchasing the branded tea.

49
 Table No. 11 (Factors affecting Choice of Tea)

Option No. of Respondents % of Respondents

Brand 39 32

Price 30 25

Quality 36 30

Advertisement 15 13

Total 120 100

From the above table it has been found that out of 120 respondents, 32% of respondents prefer brand
name while making purchase, 25% price, 30% quality and the remaining 13% prefer the advertisement
while making purchase.

Table No. 12 (Shifting from One Brand to Another)

Response No. of Respondents % of Respondents

50
 Yes 57 47

No 63 53

Total 120 100

The above table no. 12 presents that out of 120 respondents, 47% of the respondent shifts from one
brand to another and the remaining 53% of the respondents do not shift from their particular brand.

Table No. 13 (Factors affecting shifting of Brand)

Items No. of Respondents % of Respondents

Gifts 27 47

Schemes 08 14

Quantity 18 32

Quality 04 07

Total 57 100

From t h e above table no. 13 it has been found that out of 57 respondents, 47% of respondents shift on
the basis of gifts, 14% on schemes, 32% on quantity and remaining 7% on the basis of quality. Since it is
mete out that the 47% of sample are shifting on the basis of gifts.

Table No. 14 (Satisfaction with the Tea Price)

51
 Response No. of Respondents % of Respondents

Yes 70 58

No 50 42

Total 120 100

The above table presents that, out of 120 peoples, 58% of the people are satisfied with the prices of the
tea they are using and 42% peoples are not satisfied with the prices of the tea they are using.

Table No. 15 (Affect of Price on the Sale)

Effect No. of Respondents % of Respondents

Yes 95 7

No 25 2

Total 100 10

From the above t a b l e n o . 15 it has been found that out of 120 respondents, 79% respondents think
that if the prices of the tea will be decreased by the company the sale of the tea will be increased and
the remaining 21% are not agree with this.

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 FINDINGS

1) Tea consumers have very flexible buying behaviour. They frequently change their preference for
a particular tea.

53
2) Expenditure of consumer’s on tea is very minimum, around 1 per cent of total monthly income
of the households. This is one cause of ignorance about tea.
3) Among the various ingredient of tea, consumers prefer taste, colour and flavour.
4) Consumers are always ready to pay more for the best tea. They always prefer the best
performance.

5) Consumers are highly influenced by friends, neighbour and work companion while purchasing a
tea.
6) Price is a very important constituent of other product, but in case of tea, price plays minimum
role in consumer’s buying behaviour while purchasing a tea. In case of tea, consumers give more
emphasis on taste, colour and brand
7) The buying behaviour of a tea consumer is a peculiar behaviour, because knowledge of tea
consumers on tea is very less.
8) Though it is said that advertising is the powerful technique of product promotion, the study
revealed negligible impact of advertising on tea consumers.

54
CONCLUSION

Tea is a popular beverage and due to its extensive consumption worldwide consumer becomes
very fussy or particular about the brand and quality of the tea. The consciousness about the
beverage quality adds to many factors like popularity of the tea brand, colour, aroma, price etc.
The entire study is made to find out whether all these factors like popularity of particular tea
brand, colour, aroma, price and brand loyalty really influences tea consumption behaviour of a

55
consumer. All these attributes/traits are highly responsible with tea consumption. Our study
proves that while considering a particular tea brand things like popularity of a particular tea
brand, loyalty towards specific brand and other qualitative factors like colour, aroma etc are
associated while choosing that particular brand. A consumer depends totally on these entire
factors for choosing a specific brand of his/her need. The extensive study is done different
regions of Pune city and a clear conclusion can be drawn from the statistical analysis that all the
behavioural traits highly influence consumer’s tea consumption behaviour. This study also
justifies a close association of consumer behaviour with consumption pattern. The primary
survey portrays significantly how attributes like brand loyalty exists supremely in consumer and
the study also depicts brand loyalty as the dominating attributes amongst all. Overall the study
illustrates a clear insight in the area of consumer buying behaviour.

56
 RECOMMENDATION

 Look for loose-leaf tea.

 Look for unflavored teas.

 Look for established brands.

 Look at the tea's description. Inferior. Mid-tier. Superb.

 Look at the tea leaf. Tea Stalks. Leaf Uniformity. Two leaves and a bud.

 Look at the reviews.

57
 Don't look at the price.

58
REFERENCES

 Aaker, D. A (1991). Managing brand equity. New York: Macmillan.

 Banerjee Mritunjoy: “Organisation Structure & Design” in organization
Behaviour, #rd Edition, New Delhi Allied Publishers, 1995.
 Banerjee, B (1993): Tea Production & Processing, New Delhi, Oxford & IBH
Publishing Company.
 Blackwell, R. D., Miniard, P. W. & Engel, J. F. (2001). Consumer behavior.
Orlando: Harcourt College Publishers.
 Blackwell, R. D., Miniard, P. W. & Engel, J. F. (2006). Consumer behavior.
Mason: Thomson.
59
 Dwivedi, H. N (1999) Production of Tea in India, Kolkata.
 FAO (1980):- The Marketing Processing of Tea.
 Fullerton Ronald A (1994). Tea and the Viennese": A Pioneering Episode in
the Analysis of Consumer Behavior; Advances in Consumer Research ; 1994,
Vol. 21 Issue 1, p 418.
 Gabbott, M. & Hogg, G. (1998). Consumers and services. Chichester: John
Wiley & Sons.
 Majumder Ramanuj (2010). Consumer Behaviour: insights from Indian
Market.
 Misra Shib Narayan: Tea Industry in India, New Delhi, Ashish Publishing
House,1986.
 Monoharan S.: Indian Tea, New Delhi. S. Chand & Co. PVT LTD , 1972
 Moorthy, S., Ratchford, B. T. & Talukdar, D. (1997). Consumer information
search revisited: Theory and empirical analysis. Journal of Consumer
Research , 23 (4), 263-277.
 Mukley & Sharma (ed): Tea Culture, Processing & Marketing, New Delhi,
Oxford University Press& B>H Publishing Co. PVT. Ltd.1993.
 Pachauri Moonesha (2002): Consumer Behaviour ;The Marketing Review, 2,
319-355. 16. Tea Digest of Tea Board, 2006.

60
 APPENDICES

Dear respondent,

I am a student of BBA, who is conducting research on “ consumer buying

behavior of Tea”. I would be extremely thankful if you spare some time to answer the

following questions. All the facts disclosed by you will be used for academic purpose

only.

61
1. What do you prefer to drink ?

□ Tea

□ Coffee

2. Which band of Tea would you prefer ?

□ TATA

□ Red Label

□ Taaj Mahal

□ Others

3. How often you drink Tea ?

□ Once in a day

□ Twice a day

□ Ocassionally

□ Daily

4. Why do you drink Tea ?

□ Relaxation

□ Habit & Routine

□ Socialize & Get Together

□ Alternative to Coffee

□ Never
62
5. Where do you enjoy your Tea ?

□ At home

□ At café

□ At Tea stalls

□ At work

6. How do you typically spend on a Tea ?

□ Rs.100

□ Rs.200

□ Rs.300

□ Don’t know

7. Tick your preference with respect to Tea ?

□ Quality / Taste

□ Price

□ Family Preference

8. Which kind of Tea would you prefer ?

□ Masala Tea

□ Oolong Tea

□ Herbal Tea

□ White Tea

9. What do you put in your Tea ?

63
 □ Honey

□ Sugar & Milk

□ Honey & Lemon

□ Nothing

10. Do you brew it yourself ?

□ Yes

□ No

□ Sometimes

□ Most of the times

11. What’s your Name ?

12. What is your age group ?

□ Below 18

□ 18 – 25

□ 25 – 35

□ Above 35

13. What is your gender ?

64
 □ Male

□ Female

□ Other

14. Do you feel any querry in answering the Questions ?

□ Yes

□ No

15. What is your Personal Opinion regarding this ?

65