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Multinationals losing out in the tea category in India ?

  In the packet tea business there have been shifts in the taste and preferences of customers . Much has been decided by first movers like Vikram Tea , Society and Wagh Bakri .  The early movers like Brooke Bond , Lipton , Goodricke could easily be falling behind due to lack of creativity at their end on blend formulations .  The above companies have been focused on margins , incurring large spends on advertising , have been tight on trade margins and have been surviving with psychographic play on customers .  Gujarat based players have created an ownership of taste , used blends with Upper Assam Teas and have stayed close to retailers to build a close contact with trade , depending less on distributors and superstockists . Their customer contact and feedback has been exemplary and on many occasions have visited customers at their residence to understand their preferences .  While most businesses have to fund on their own , the Gujarat players have ...

Why British Organizations in Bengal slumped

The subject has been of much interest and definitely entails a lot of research. However I have arrived at some conclusions based on primary studies through my experience. Initially let us try to understand the environment under which the British firms operated which could help us arrive at a few answers . Supplier ’s Market : Spices, Tea and Jute were shortage commodities.The First and Second World War further led to spurt in demand. The British mercantile firms in India were never under pressure to create customers or brands.   Lack of pressure to create brands : Since the business was essentially driven by volume with decent profit margins there was no reason to create brands and up the profitability further. Cost Structure and Overheads :  The British organizations had abnormal profit margins and were willing to share the same with employees.The economy was mainly supply driven and ability to retain employees in remote locations was a key challenge.Hence there...