Tea Brands in Bangladesh

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Literature Review
On
Locating tea brands in Bangladesh and Consumers Preferences

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International Islamic University Chittagong

Department of Business Administration

International Islamic University Chittagong

Department of Business Administration

Literature Review On

Tea Brands in Bangladesh and Consumer preferences

Course Title: Business Communication
Course Code: BCOM-3501
Submitted To:
Tanzina Chowdhury
Lecturer
BBA, IIUC.
Submitted by:
Shajeda Begum-Matric No: B101221
Shaira Alam- Matric No: B101257
Farheen Mehnaz- Matric No: B101212
Nahid Sultana- Matric No: B101271
Nusrat Jahan Binta Kalam –Matric No: B101242
Sabrina Shams Karim- Matric No: B101219
Semester: 4th
Sec: A (Female Campus)

Date of Submission: December 22, 2011.

Tea is one of the oldest and most favorably consumed beverages around the world. Tea is generally categorized into 3 major groups—green tea, oolong tea, and black tea—depending on the degree of fermentation of tealeaf. The tea species, cultivated region, processing method, and various other factors significantly contribute to the formation of delicate sensory characteristics of tea which is one of the most important factors of consumer preference and switching of brands. Green tea, which is not fermented, is characterized by its fresh green and astringent flavor due to aldehydes, alcohols, and polyphenols (Togari and others 1995). Health factor is a crucial factor of preferring green tea to other types of tea. Semi-fermented oolong tea tends to have stronger burned, roasted flavor compared with the other 2 types of tea. Completely fermented black tea has sweet, floral, and citrus characteristics as a result of volatile flavor compounds formed during enzyme-oxidation, Strecker degradation, and Millard reaction from the precursors in tea leaves (Sanderson and Graham 1973; Robinson and Owuor 1992; Ravichandran and Parthiban 1998). Because of the fragrance and taste, black tea is the most preferred tea in the world (Sabry and others, 2004).

Consumer preferences are defined as the subjective (individual) tastes, as measured by utility, of various bundles of goods. They permit the consumer to rank these bundles of goods according to the levels of utility they give the consumer. Preferences are independent of income and prices. Ability to purchase goods does not determine a consumer’s likes or dislikes. One can have a preference for Porsches over Fords but only have the financial means to drive a Ford. The individual consumer has a set of preferences and values whose determination is outside the realm of economics. They are no doubt dependent upon culture, education, and individual tastes, among a plethora of other factors (Samuelson, 1980).

As the growth of the beverage industry enables the massive production of tea products, the market for branded tea products has expanded rapidly during the past few years and now shares a large proportion of the Bangladeshi beverage market (http://expertscolumn.com/content/most-popular-drinks-marketing-bangladesh). The branded tea products sold in Bangladesh are Ispahani, Lipton, Tetley, Finlay, Seylon, HRC, Pran, Acme, Kazi & Kazi, Fresh etc. (http://bizcovering.com/business/beverage-marketing-in-bangladesh-with-a-special-reference-to-distribution-management-of-tea-brands-an-empirical-study/)

Winds of change are sweeping the Bangladeshi marketplace. The “sellers market” is increasingly getting transformed into “buyers markets”. Intensity of competition and high levels of penetration in urban markets have made corporates to take the rural markets more seriously. Consistent growth of disposable income amongst rural households and the reach of television have fuelled consumption to new levels (Rao.2001)

Superior distribution has helped in mopping up sales in the initial years of the rural drive. However, presence in the shelf does not get automatically translated to the...
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