INTRODUCTION OF NECESSI

TEA IN UNITED KINGDOM

BY JANVI
JIGNA
MOHINI
PAYAL
PRIYANKA
RICHA
RIDDHI
SALONI
SAHIL
SUBHASH
SURAJ
VINAY
INTRODUCTION OF NECESSI TEA IN
UNITED KINGDOM
 About Us [UNITED
KINGDOM]
 Necessi tea is the largest tea brand in India
 Type :Private company
 Owned by India’s Girnar group of company private limited
 Founded : Kolkata ; India
 Established :1995 in India and 2019 in UK
 Head quarters :Kolkata and Assam
 Product :tea and instant tea masala
 Manufacturing : 979504 cups
 Production area : tea estates in Assam and Darjeeling
 Employees : 5 till March 2019
Features of tea🌿
Type of tea

White tea Green tea Oolong tea

Black tea Masala tea

 1. White tea
 No oxidation at all.
 Most delicate and healthiest.
 delicate method of drying is carried out to avoid oxidation.

2. Green tea.
• Minimal oxidation.
• Grassy and fresh taste and aroma.
• To prevent oxidation, the leaves are tossed or
steamed.
• Health benefits.
• weight loss and reduce risk from several diseases.
 3. Oolong tea.
 Partially oxidized.
 Fruity and flowery taste and aroma.
 Slimming tea because of its metabolism boosting properties.
 Characteristics stand between green tea and black tea.

4. Black tea.
• Fully oxidized.
• Robust taste of all teas.
• higher caffeine content.
• Rich in antioxidants.
• Cardiovascular benefits and can keep the cholesterol Level
5. Masala tea.
 Flavoured tea beverage.
 Mixture of aromatic spices and herbs.
 Originating in Indian subcontinent.
Process
• Cultivation and Harvesting
1. Tropical and Subtropical climate

2. Plucked by hands

3. Activity happens whole year

• Withering
1. Drying the leaves

2. Reducing the moisture in it

3. Leaves are weighed at end

• Rolling
1. Two heavy metal plates roll
against each other

2. Opens the cells of leaves

• Drying
1. Makes the leaves Shelf-stable

2. Slows oxidative process of leaves

• Grading
1. Evaluating the leaves on their quality and
condition
2. Highest grade is Orange Pekoe

3. Lowest grade is Fannings or Dust

• Packaging
1. To be packed in airtight can

2. Increased shelf life

How to get White, Green and Black Tea from same tea
leaves??
White tea

Green Bud Withering (72 Hrs) Drying (110℃ / 65℃)

Green Tea

Steaming Cooling 1st rolling 1st drying (110℃ / 65℃) Final Rolling Final
Drying (120℃ / 80℃)

Black Tea

Withering 1st rolling Oxidizing/Fermenting Drying (110℃/ 65℃)

 Types Of Tea

Masala Tea Oolong Tea Green Tea

White Tea Black Tea

 Masala Tea: Health Benefits

 Stomach Discomfort
 Reduces
 Blood Circulation
 Immunity
 Relieves Stress
 Weight Loss
 Cough and Cold
Oolong Tea: Health Benefits

 Weight Management
 Boost Metabolism
 Promotes Healthy Skin
 Makes Hair Healthy
 Promotes Digestion
 Controls Diabetes
 Green Tea: Health Benefits

 Headaches
 Acne
 Anti-aging
 Digestion
 Depression
 Anxiety
 Increases stamina and boost
 Heart diseases
 White Tea: Health Benefits

 Anti-oxidant
 Anti-aging
 Cancer
 Preventing diadetes
 Acts as Antibacterial Agent
 Anti-inflammatory
 Boost metabolism
Black Tea: Health Benefits

 Boost Metabolism
 Cancer
 Stronger Bones
 Digestive tract health
 Skin and Hair Health
 Cardiovascular Health
SWOT Analysis
• Strength
1. Tea market is huge in the UK- Existing loyal customers-
High-end luxurious image that no other tea pod
machine companies can compete with- Famous
spokespersons.
2. Premium product quality.

• Weakness
1. Higher prices.
2. Limited distribution of products.
 The demand (UK tea
buyers have the highest Convince new
revenue, so they more customers ( pre-ground
able to buy high-end tea users).
tea).

Opportunities

Find new tastes(UK

Huge market,
customers need of
continually growth
quality), diversify the
since 2007.
offer (large range).
 THREATS
•Huge and powerful
competitor: Keurig.
•More affordable
customers:Starbucks.
•Substitute products (soft
drink, coffee…).
•Potential entry of new actors
( no high entry barriers).
•Low switching cost for the
customers.
 Pricing Strategy
Cost based pricing COST

 Calculation of the costs and adding a

standard mark-up
 Never sell below the cost of making a
PRICE
product
PROFIT
 Break even pricing
 Analyze which price points recover
costs and reach profile the quickest
Competition Based Pricing

 Using competitor’s prices as a reference point

 Match competition or price below competitors
 Inexperienced companies tend to use going great
pricing
 This is done when it is difficult to measure costs and
demand
 Distinguishing features to stand out from competition
 Customer Value Based Pricing

 The third major pricing strategy is customer value

based pricing
 Decision of pricing in the strategy is in the hand of the
consumer
 Customer perceptions of value sets the price of the
products
 Through this strategy many companies discover that
customers are ready to pay more for something that
other more value
 This strategy determines what buyer is ready to pay
 COST SHEET
Qty of tea powder (import) - 300000kg
1 POUND = 87 RUPEES
SALES :- 979504 CUPS

Sr. No Particulars Rs Rs Rs
1] SALES:
GREEN TEA ( 254200cups x 186 ) (2.14 pound/cup) 47281200
BLACK TEA ( 108400cups x 214 ) ( 2.46 pound/cup) 23197600
MASALA TEA ( 256304cups x 203 ) (2.34 pound/cup) 52029712
OOLONG TEA (252100cups x 177 ) (2.04 pound/cup) 44621700
WHITE TEA (108500cups x 187 ) (2.16 pound/cup) 20889500 188019712

2] Less: Variable Cost

1 MATERIALS:
Sugar(from billington - 180000kg) 78613200
Import of materials 4700000
ginger 3828000
Mint leaves 1044000
Cardamom powder (from organic spices) 3860625
Cinamon powder (from organic spices) 1847880 93893705
2 PACKING CHARGES 2187441
3 OTHER VARIABLE OVERHEADS 1305000
4 SALARY TO PART TIME EMPLOYEES (5) 7177500 -104563646
3] Less: FIXED COST

Rent (1500 pound per month) 1566000

Electric Charges (8.5 KW/day) (14.37p/KW) 3294255

Selling expenses ( website cost) 391500

Head cashier's salary (2500 pound per month) 2610000

Other fixed overheads 1131000

Plant euipment (depreciation) 10440

Insurance 104400

Rent for infrastructure (450 per month) 469800 -9577395

4] Less : one time cost

Advertising 2610000

Sign permit 52200

Food handler's permit 34800

Lisence (business) :

- Registration Charges 4350

- Filing fees 13050 -2714400 -12291795

PROFIT 71164271
S India Darjiling

rs in Lakhs

plantation cost 9

Labour cost 3

transportation cost 5

water cost 2.5

tea processing cost 8

electricity expenses 7

Godown storage cost 1

factory expenses 5

machinery expenses 3

packaging & Forwarding expenses 1.5

Duties & taxes 2

TOTAL 47
FIXED COST = 95,77,395
ONE TIME COST = 27,14,400
CONTRIBUTION = 8,34,56,066
QTY = 9,79,504 CUPS
THUS, CONTRIBUTION PER UNIT = 85.20
BREAK EVEN POINT (IN UNITS) = FIXED+ONE TIME COST
CONTRIBUTION PER UNIT
= 95,77,395+27,14,400
85.20
=144270 CUPS
 FUTURE PLANS
 INCREASE IN OUTLETS
The survey shows the tea market in UK is expected to grow by 2.3%
with chai replacing the traditional tea as most popular tea. Hence the
company is planning to open atleast 50 t outlets over the period of 5
yrs.
 SALES
The sales of outlets can be increased by provided discount to
customers on large purchases . They can also be given loyalty coupons
 PROFIT
If the sales increase by atleast 25% in the next year than the company
is planning of increasing the price of the product by 50% .
INCREASING THE MENU
The company will be expanding the menu over the
period of 1yr by adding more varieties teas by reviewing the
customers choices. We are also going add bakery items like
cookies, muffins, sandwiches, etc by hiring chefs .
Research and Development
The company is planning to invest in research and
development to come up with new varieties of cold brews
and tea cocktails.
ATTRACTING THE CUSTOMERS
Mostly the younger generation prefer to have drinks in
the cafes . We can make the outlets more welcoming by
providing them with board games and books by charging
them small fees. The outlets can also host various events like
poetry reading, live music, game nights, etc.
• Improving yield per hector
• Connect more consumer
• Focus on restorative
production
• Empower Producer
• Expansion
 Improving yield per hectare

 Our plan is to replace old bushes with high yielding

varieties. Every year, to uproot & replant about 2.5%
of area in our Indian tea estates.

 Using best agricultural and pest management

methods, better plucking, pruning and processing
equipments to enhance quality.

 To extend plantation in UK gardens by 60 hectares

for tea.
 Connect more consumers

 To explore how the value proposition for tea amongst

consumers could be enhanced.

 To use social media and new technology to reach consumers

and create dynamism in the sector.

 To create a more demand for tea which enables better social,

environmental & economic conditions at the production end
of the chain.
 Focus on restorative production

 To focus on improving productivity with fewer inputs to

ensure that production continues into the longer term.

 To explore how tea can deliver additional benefits

beyond producing the tea crop.

 To deliver improved outcomes for the wider environment

and community within which tea is grown.
 Empower Producers

 To work on investigating and implement models for

enhancing value for producers, whether it’s blending or
packaging at source, or growing local opportunities.

 To understand the potential impact of mechanization

on tea workers & empowering them to make tea work
more attractive.
 Expansion

 We have expanded geographically in East Africa.

 We are focused on long term sustainable business

growth & embarking on scaling up packet tea business.

 We have invested for long term growth in tea plantation

& production processes.
 Conclusion
 History
 Business of company
 View or strategy of company
THANK YOU