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Duncans Tea brews some unconventional marketing strategies; eyes to double market share

06-June-2008
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Duncans Tea brews some unconventional marketing strategies; eyes to double market share

Duncans Tea Ltd is planning to double its market share in the next 18 months. With a tactical endeavour to convert the marginalised loose tea market into packaged tea market, the company already has brands like ‘Premium Leaf Tea’ in the sub-premium segment and ‘Aaag’ in the economy segment.

Targeting an increase in market share in the South, the company launched Double Diamond Gold and Kings Cup in the premium category.

“We are expecting to double our market share by 2-3 per cent in the next 18 months. Currently, we hold 1 per cent market share in South India and 4 per cent market share on a pan-India basis. Last year, the growth was 30 per cent and this year we are expecting to grow by 25 per cent,” said MC Appaiah, COO, Duncans Tea Ltd.

Duncans Tea has lined up a host of innovative marketing and distribution tie-ups that would enable it to reach out to more consumers across the country. To start with, the company has a distribution tie-up with IRCTC (the catering division of Indian Railways) and would be supplying Double Diamond Tea bags to the Indian Railways.

Duncans Tea has also adopted unconventional marketing strategies with their exclusive tie-ups with Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd. Duncans tea packets will now be available with LPG suppliers when they go to deliver the LPG cylinders at every doorstep.

In its endeavour to explore other distribution channels, Duncans Tea has also entered into a tie-up with CSD canteens of the Indian Army to cater to the armed forces even at remote locations.

“We are proud to be associated with these leading organisations and are actively exploring several alternative and innovative channels of distributions. These distribution tie-ups will help us reach out to all sections across the country,” Appaiah added.

He further said that the company would be targeting the customers for Kings Cup in Tamil Nadu, Karnataka, Andhra Pradesh and in a few places of Kerala through television commercials and direct marketing.

Krishnendu Ghosh, Head-Marketing, Duncans Tea Ltd, finds a promising potential in the market for sachets, which have taken over the rural market in a big way. The company plans to take Kings Cup and Double Diamond the sachet way in the next six months.

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