Provide a 9 pages analysis while answering the following question: Industry and Market Analysis of Wellington Tea. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. They do not want to be treated as mass general customers.
Provide a 9 pages analysis while answering the following question: Industry and Market Analysis of Wellington Tea. Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required. They do not want to be treated as mass general customers.
Tea is the most popular and consumed beverage worldwide. Almost 80% of total households in the US consume tea. More than 154 million Americans take tea. Not only in the US, in almost every country the consumption rate of tea is increasing day by day. Nowadays people want to stay active and feet. They are becoming more health-conscious than the previous years. People of the young generation always look to stay healthy, feet, want to gain stamina and energy. Therefore, as the demand for people is increasing the potentiality of the industry is increasing.
An increase in health awareness has driven the people of the world to consume more products related to tea. The increasing customer base of tea in the global market is an example of growing customer demand for tea. In the year 2010, the size of the tea industry in the US was 7.7 billion US dollars, which is quite impressive. After the era of Dark fast food nation, the preference of customers shifted towards the healthier drink. The retail sales were more than 2 billion US dollars. The away from home consumption at that time had increased by almost 10%. Few large tea companies like Lipton and Crystal Light has dominated the US market place throughout the past years. Slowly and gradually the Americans have started to use tea bags as it consumes time. Therefore, sales of instant tea are gradually decreasing and the retail chains are becoming popular in the global market place.
There are several uncontrollable variables that exist in the market place which may create risk factors. An increase in the price of raw materials such as the loose-leaf of tea and unpredictable sales growth of tea online may create risk factors. In order to achieve profit, the organization has to increase the price of products as the substitute product has the same potentiality to grab maximum market share. Therefore the organization needs to control the manufacturing and operational cost. .