The Hindu Business Line : Turning over a new leaf

A silent and steady revolution is taking place in the marketing strategy adopted by the Nilgiris’ tea manufacturers. Ever since the auction settled as the favourable selling system, producers have been generally indifferent to marketing belie ving their responsibility ended the moment they handed over their teas to the auction brokers.

Accordingly, they had little knowledge about the buyers, retailers, end-users and consumers as also consumer preference or complaints. They were content with the prices brokers gave them and had little clue on the price bulging as the tea travelled to kitchen shelves.

They could hardly refute convincingly accusations of disproportionately high household prices of teas as they had no authentic information about the teas which were blended with their bulk teas. Even when teas were sold in bulk at the retail shops, merchants contended that different teas were blended to suit their customers’ taste.

As a result, producers had little authentic marketing intelligence relating to their teas and there was no way for them to gain price recovery backwards from the retail price. This situation remains the same even now for bulk tea sales.

However, progressive producers have stepped up their involvement in direct marketing of at least a portion of their teas. So much so that both corporate factories and the private small-scale factories popularly called bought-leaf factories have brought out their own branded packet teas.

This is a significant development because no multinational tea company produces tea in the Nilgiris. Packet teas and tea bags account for 7 to 10 per cent of the total tea produced by the concerned manufacturer in the Nilgiris. To that extent, the outlets where such packets are sold are limited.

“We have been selling top brands of Nilgiris teas for the last 15 years and have come across brands which could not stand the test of competition. Some brands like Nonsuch have established their shelf recognition among the customers. We stock top brands here. Our customers mostly ask for orthodox teas. Homedale is the only CTC (crush-tear-curl) brand we consistently sell,” says J. Devaraj, Managing Partner, Vishal Marketing Co, whose retail outlet at the busy Bedford junction in Coonoor has celebrities from India and abroad among its customers.

Advertising is in low gear. There are nearly two dozen brands of Nilgiri teas including CTC teas from bought-leaf factories, but most are visible only in the Nilgiris. Progressive producers are arranging supplies through select supermarket chains at least in the South.

Word of mouth is the major mode of promotion. Some long-standing factories use their year of origin to promote their brands. Craigmore, for instance, carries “Since 1884” prominently on its packet teas. Havukal, Corsley and Kotada are among the established brands. The brands are priced between Rs 38 and Rs 45 for 250 gm.

Some give variety and value-addition. Korakundah has orthodox green tea and organic tea too. Chamraj has brought out packs made of wood, called chest lets, marked “finest gourmet since 1992”. Chamraj also has a series of cans – Chamraj, Frost Tea, Green Tea, Decaffeinated Tea, Earl Grey and White Tea. White Tea is among the most expensive brands in the market priced Rs 320 for a 50 gm can.

The latest is the entry into the tea bag (dip tea) market. Here again, Nonsuch is famous. Chamraj has masala flavour also. Korakundah sells organic Nilgiri green and black tea bags. Homedale is among the new entrants.

In both the packet and bag markets, the Glendale brand has innovated.

“We have four brands – Glendale Frost (Orange Pekoe), Glendale Supreme (Broken Orange Pekoe), Glendale Aurea (Super Fine Tippy Golden Flowery Orange Pekoe) and Glendale Heritage (Handmade) and all of them come with vacuum packaging to retain factory freshness and aroma.

These packets are available in supermarkets across the country. In the last five months, we have noticed a mentionable increase in sales and are considering raising the volume,” G. Udayakumar, Executive Director, Glenworth Estate Ltd, which owns Glendale, told BrandLine.

Of them, one Glendale Aurea packet contains the grade of tea that fetched the world’s highest price of $600 a kg at a Las Vegas auction for which an entry in Guinness Book of Records has been sought.

Its tea bags come in six varieties – Earl Grey, English Breakfast, Green Tea, Garden Fresh, Lemon and Ginger flavoured. Garden Fresh is sold for Rs 30 a packet of 25 tea bags, English Breakfast Rs 35, Lemon, Ginger and Green Tea Rs 40 and Earl Grey Rs 45.

“These are single-garden teas grown in our 450-hectare Glendale estate located at 6,000 feet above sea level and manufactured with quality-care in our ISO-certified factory. These teas are hailed as ‘the cognac of tea’ for their fragrance and robust taste. Our tea bags are available in supermarkets,” explains K. V. Shenai, Group Manager.

As yet another initiative of direct marketing, Glenworth has opened its first Glendale Tea Lounge at Udhagamandalam as part of its project to launch tea parlours in different parts of the country.

Located in a central part of town, the Lounge is easily accessible to tourists. It is furnished with colourful screens, has good ventilation and lighting. “We get nearly 5,000 visitors daily. Our recipes include Iced Tea, Pink Tea, Orange Tea Slurpie, Tea Planter’s Punch and Strawberry Tea Punch. We help guests with tips for quality tea preparations at home,” elaborates Shenai.

An innovative approach is the ‘Mix and Match’ counter where quality tea grades are kept in identifiable jars. These include Orange Pekoe, Flowery Orange Pekoe, Flowery Broken Orange Pekoe, Broken Orange Pekoe and Broken Orange Pekoe Fanning and Super Fine Tippy Golden Flowery Orange Pekoe.

Guests are encouraged to choose their grades which are brewed and served fresh over glass-topped tables made from tea wood bases carved out of 100-year-old tea bushes from Glendale Estate. Visitors can also buy Glendale tea bags and speciality tea packets at the Lounge.

“This tea lounge is our initial venture to enter the Indian market with our ‘ready-to-drink’ teas. Our project is to open tea parlours in select centres at an investment of Rs 15 lakh per parlour. These will be exclusive tea cafes with access to international quality teas supported by a menu of 25 varieties to choose from. This will include hot, cold, taster’s choice, and flavoured teas. This will answer the specific taste-needs of tea connoisseurs,” adds Glenworth’s G. Udayakumar.

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