Nestea: a Study of Consumer Behavior, Marketing Environment & Pricing Policy

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An Overview of the Tea Market The world's passion for tea has always been overwhelming. Through its cultural and health appeal, tea has become less of a drink for the rich and more for the masses. So why do people prefer tea? To the extent, that for many, there never passes a day without having a cup of tea. The answer lies in its benefits and ease of availability. During winters it can warm one up, and during summers ice tea refreshes one. Moreover, herbal tea helps in curing illness and sometimes is considered more effective than medicines. Today, tea is the world's second most popular drink (after water). It's easy to make, affordable and one of the fastest growing beverages (6.5% over 5 years). Because of the extremely proficient market, the business of tea has become one of the most enriching and bright. There are generally two types of tea, Ice tea and hot tea. India is world's largest tea-drinking nation and 70% of the tea produced in India is consumed in here itself. The total turnover of the India tea market is around 10000 crores per year and since independence its production has grown over 250% and land used has gone up by 40%. This labour intensive tea industry directly employs over 1.1 million workers and generates income for another 10 million people approximately. Women constitute 50% of the workforce. According to the provisional data of Tea board of India in 2011 total of 856 Million kgs of tea was consumed. However, the per capita consumption of tea in India remains a modest 718 grams per person every year due to the large population base and high poverty levels. It is clear that in our part of the world people prefer tea to a great extent but it is mostly the tea with added milk in it and which is generally hot tea. The introduction of Ice tea was much later than that of the hot tea. Indian Beverage Industry India’s population today is

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