Question

What is market structure for tea. Please explain

Answer 1

ANSWER:

In our daily life very important part is FMCG. It means Fast moving consumer goods which we use in a daily basis and from this Tea is one of the product which is used by each and every house with different brand name like Red Label Tea ,Taj ,etc.

Now we come over the market structure covered by Tea is as follow:

1. Monopolistic competition- Monopolistic competition is a market structure in which there are large number of firms that produce differentiated product from one another by branding or quality and hence they are not perfect substitute.Tea also have large number of producer like Tata Tea,Lipton Tea,Tetley etc and also have different varieties like black tea ,green tea.

2. In Tea market basically market leader is Tata Tea and HUL which cover almost all over India.Different brand attract customer by showing their USP which means Unique Selling Proposition for example Tazza Tea attract by saying Ginger in it or Masala tea etc, Taj Mahal Tea advertise by taste while saying "Wah Taj" etc.

3.Tea market have numerous number of small players and large number of buyers present in the market they varied their product by branding and by providing price variation by running enormous number of campaigns to attract the buyers and convert them into the loyal buyers. Even they can vary their taste by region wise.

4.Tea marketers try to differentiate their product by maintaing balance with marketing mix. Marketing mix is a combination of factors that can be controlled by a company to encourage customer to purchase their product by keeping in mind of 4 P's i.e price,place,product and promotion .

Conclusion:

Market structure of Tea is monopolistic competition market structure with large number of firms with no perfect substitute product they differentiate their product by brand or price.Tea having large number of players and buyers in the market by running promotion campaign with having market leader like TATA and HUL.