Wagh Bakri to use Delhi as gateway to go national

The century-old Wagh Bakri tea group has decided to start its operations in North India and plans to use Delhi as its gateway to setting up a national footprint. “People in Delhi certainly love their tea — more than what we see in Mumbai and other cities. Quality tea and consistency is what this brand promises,” said Parag Desai, CEO of the Wagh Bakri group, who also plans to open a tea lounge in this city.

The company’s advertising and promotion is being handled by Triton and Percept. And, in another six months, India can expect to see Wagh Bakri’s first television and print advertisements. Which will be mainly female-centric, as women are about 60 per cent of their customers, notes Desai. He says there will be no filmstars or famous brand ambassadors to promote the product.

 

However, the Rs 400-crore company, which is aiming at a five per cent market share in North India by 2010, has many hurdles to cross. Wagh Bakri tea, a family-owned regional company, is the leader in Gujarat, where it has a 50 per cent market share.

The group also has operations in Madhya Pradesh, Maharashtra and Rajasthan.

The North Indian market, though, is dominated by national brands like Tata Tea and Brooke Bond. Tata Tea’s executive director, marketing, Sangeeta Talwar, adds, “Competition from domestic brands is a possibility but it would take a long time.”