Creek bridge general_majid_haider_tea_consumption_uae

Case Study – Tea Consumptionin the United Arab EmiratesCreek Bridge General Trading L.L.C

Ahead of the Fair Trade. Since 1995

Dubai - September 2011

The information contained in this document belongs to Creek Bridge General Trading LLC and to the recipient of the document. Unauthorized copying, disclosure or distribution of the material in this document is strictly forbidden and may be unlawful – Majid Haider

Agenda

About Creek Bridge General Trading LLC - Dubai

Overview of the Beverage consumption in the United Arab Emirates

Segmenting the UAE Tea consumers

Understanding of UAE tea consumer behavior

Company Overview

Creek Bridge General Trading L.L.C is an independent company listed atthe Dubai Chamber of Commerce since 1995

Creek Bridge L.L.C primarily concentrates its trade expertise on food stuff for the Middle East and the sub-Asian regions

The company focuses on the business needs of both clients and partners to provide expertise, efficient and fair results

Company’s CEO, Majid Haider, works on the food trade business since more than 30 years and has been rewarded several times by several Chambers of Commerce: Colombo, Dubai, Isfahan & Nairobi

In 15 years, Creek Bridges L.L.C has developed an extensive professional network over 11 countries

Company Values

Creek Bridge L.L.C believes on long-term profitable relationships

Creek Bridge employees look after profitability for both partners and clients by finding a right balance or “win-win” solutions

Trust, expertise and fair profitability are the values that allow Creek Bridge L.L.C to grow their daily business activities

Our clients benefit from our well-run business knowledge and our flexibility to respond to change in the food stuff marketplaces

CEO Background

M. Majid Haider - Iranian Citizen - 51 years old - Married - 3 childrenSince1995, CEO of Creek Bridge General Trading LLC

In the early 80’s, Majid started his trade career in the family business. Apart from the general food stuff trading, he specialized in almonds, pistachio, tea and the prestigious Persian carpets trade

Majid has been rewarded as the most prominent trader (export)by the Iranian Ministry of Commerce in 1991

In 1995, Majid Haider and his local sponsor launched in Dubai the general trading company: Creek Bridge L.L.C to extend his business capacity towards the sub-Asian continent

Company Growth

1995 2010200920082000 2005

Base

100

260

330

390

305

320

260%

50%22%

345

14%

2011

Economic crisis impact on regional tradeEconomic crisis impact on regional trade

Creek Bridge L.L.C annual turnover - base 100

Overview

Understanding the beverage market with focus on the tea segment

DuplicationFrequencyProminent BrandsBrand loyalty

Brand aspirations

Segmentation of Tea consumers based on attitudes towards health.. brand..

Demographics, psychographics, brand loyalty

Beverage market

0%

20%

40%

60%

80%

100%

Tea Coffee Carbonatedsoft drinks

Juice & fruitdrinks

Beverages are a part of everyone’s life, which is well demonstrated by the high % seen in the above graphical representation.

Let’s check if the there exists an overlap in the beverages’ market

Duplication

Tea Coffee Carbonated drinks

Juice & fruit drinks

Tea 100% 95% 94% 94%

Coffee 72% 100% 73% 74%

Carbonated drinks 86% 87% 100% 86%

Juice & fruit drinks 95% 96% 96% 100%

All consumers Non consumers

Solus consumers

Tea (Tea bags) 87% 13% 35%

Tea (Packet tea) 54% 46% 20%

Ground Coffee 45% 55% 16%

Instant Coffee 62% 38% 25%

Carbonated drinks 86% 14% 9%

Juice & fruit drinks 96% 4% 11%

That explains the extent of overlap within the beverages market

Solus consumers are defined as consumers using only one brand.

Base: Total Sample ( n =5006)

Kind of Tea

Tea Bags

23%

Packet Tea

41%36%

The market is dominated with packet tea 77% penetration

While the tea bags are a convenient option to packet tea and form 59%

The overlap that exists is 36% - i.e. consumers using tea bags and packet tea


Frequency of tea consumption

Heavy Users, 22%

Medium Users, 30%

Light Users,

7%

Heavy Users, 36%

Medium Users, 29%

Light Users,

8%

Heavy Users: Consume tea two or more times in a day

Medium Users: Consume tea at least twice a week

Light Users: Less than that

Tea Bags Packet tea


UAE’s Favorite Tea Brands


Packet Tea

Consumers

All

Consumer

s

Most

Often

Consumer

s

Lipton 32% 26%

Brooke Bond 14% 10%

Red Label 11% 5%

Alokozay 8% 5%

Society 8% 5%

Leone 6% 3%

Rabie 5% 2%

Al Alali 4% 3%

Tea Bag

Consumers

All

Consumer

s

Most

Often

Consumer

s

Lipton 60% 54%

Red Label 18% 8%

Alokozay 11% 7%

Rabie 10% 4%

Ahmed 6% 4%

Ghazleen 6% 3%

Leone 6% 3%

Alamein 4% 3%

A Packet tea consumer is more likely to consume the same brand more often than the Tea bag consumers.

Tea bags are used anywhere, may be at work or vending machine or even at home – where sometimes you have little control on the choice.

Tea Brand Loyalty


Brand loyalty is a measure to defined as consumer’s inclination to continue buying the same brand.

Lipton has the maximum brand loyalists in both the types – Tea bags as well as Packet tea.

This indicates that a Lipton user will continue to use Lipton brand and the inertia will be very strong. It would be difficult to shake a consumer to another brand.

This works very well for Lipton while other brands will have a tough time to get Lipton users to try their brands.

Meanwhile we will try and assess the aspirations and motivations of Lipton users

Tea Consumers Tea Bags Packet

Tea

Lipton 90% 80%

Brooke Bond 43% 73%

Red Label - 46%

Alokozay 58% 64%

Society - 57%

Leone 53% 47%

Rabie 41% 42%

Al Alali - 83%

Ahmed 72% 80%

Ghazleen 57% 73%

Segmenting: Demographic breakdown

Vertical % Women: Heavy tea consumers

Contented

Health consciou

s

Ambitious fashionable

s

Carefree Shy Introvert

s

Sample 2161 486 562 332 372 409

Horizontal % 100% 23% 26% 15% 17 % 19%

Represent People

1.5 million 338,560 384,028 232,253 254,825 290,052

Age

Teens (15-19 yrs)

8% 6% 9% 12% 6% 9%

20’s (20-29 yrs) 31% 30% 29% 41% 30% 27%

30’s (30-39 yrs) 34% 37% 33% 31% 35% 36%

40’s (40-49 yrs) 20% 19% 21% 14% 24% 22%

50 & above yrs 6% 9% 8% 2% 5% 6%

Ethnicity

Nationals 26% 19% 33% 34% 27% 16%

Arab Expats 33% 21% 40% 40% 52% 18%

Non Arab Expats 41% 60% 28% 26% 21% 65%

Segmenting: Demographic breakdown


Contented

Health consciou

s


s


s

N=2161 N= 486 N= 562 N= 332 N= 372 N= 409

Marital Status

Single 33% 34% 30% 44% 26% 31%

Married 58% 57% 59% 48% 64% 60%

Married with children

8% 6% 10% 7% 9% 6%

Divorced/ Widow*

2% 2% 1% 0.8% * 1% 2%

Geographic

Dubai 26% 26% 23% 26% 28% 29%

Sharjah 19% 26% 16% 18% 16% 19%

Abu Dhabi 34% 28% 40% 37% 33% 30%

Al Ain 8% 7% 5% 9% 11% 7%

Northern Emirates

13% 13% 16% 10% 12% 14%

Segmenting: Education & Employment Status


Contented

Health consciou

s


s


s

N=2161 N= 486 N= 562 N= 332 N= 372 N= 409

Employment

Government sector

17% 14% 25% 15% 22% 8%

Private sector 37% 40% 34% 37% 40% 37%

Semi private sector

2% 2% 2% 3% 1% 2%

Self employed 12% 14% 11% 11% 10% 14%

Not doing paid job

31% 30% 27% 34% 28% 39%

Housewife 19% 22% 14% 17% 16% 27%

Student 7% 6% 8% 11% 6% 7%

Education

Elementary or less

4% 5% 2% 2% 4% 7%

Intermediate 11% 13% 10% 11% 11% 12%

Secondary 31% 27% 35% 33% 31% 25%

Diploma, University Education

22% 21% 23% 26% 16% 24%

University or above

32% 34% 30% 27% 37% 32%

Segmenting: Income


Contented

Health consciou

s


s


s

N=2161 N= 486 N= 562 N= 332 N= 372 N= 409

Family Income

Less than Dhs 4000

17% 23% 14% 12% 15% 19%

Dhs 4001 -8000 28% 27% 29% 25% 29% 29%

Dhs 8001 -12500 21% 17% 22% 25% 23% 18%

Dhs 12501- 15000

6% 7% 7% 6% 7% 5%

Above Dhs 15,000

12% 10% 13% 20% 13% 6%

Refused/ Don’t know

16% 15% 15% 12% 14% 23%

UAE tea consumer behavior


Contented

Health consciou

s


s


s

N=2161 N= 486 N= 562 N= 332 N= 372 N= 409

Packet Tea 54% 94 107 103 84 109

Tea Bags 87% 95 104 106 105 91

Top Brands (Packet Tea)

Lipton 32% 98 100 105 91 106

Brooke Bond 14% 88 139 93 74 92

Red Label 13% 70 156 102 73 83

Alokozay 7% 62 135 113 87 99

Top Brands (Tea Bags)

Lipton 71% 93 107 110 108 84

Red Label 24% 88 127 111 89 78

Alokozay 13% 57 114 122 113 103

Rabie 13% 69 125 135 122 55

Ahmed 6% 82 100 84 152 88

Tea brands loyalty

Women: Heavy Tea

consumers

Red

Label

Group 1: Contented 37

Group 2: Health conscious 42

Group 3: Ambitious Fashionables 40

Group 4: Carefree 48

Group 5: Shy introverts 52

Women: Heavy Tea

consumers

Ahmed






Women: Heavy Tea

consumers

Alokoza

y






Women: Heavy Tea

consumers

Lipton






‘Contented’ group display high loyalty for Lipton followed by Ahmed but the highest loyalty for Lipton is exhibited by ‘Ambitious fashionables.’

On the whole, among the other tea brands (besides Lipton) Ahmed has loyal following of consumers

Company Contact Details

Creek Bridge General Trading L.L.CHasher Al Maktoum Building - 102 Al Ras / Deira - PO Box 26991 - DubaiUnited Arab Emirates

Tel: + 971 4 2981605 Fax: + 971 4 2981602Email: [email protected]

Find us:

The information contained in this document belongs to Creek Bridge General Trading LLC and to the recipient of the document. Unauthorized copying, disclosure or distribution of the material in this document is strictly forbidden and may be unlawful – Majid Haider

Creek bridge general_majid_haider_tea_consumption_uae

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tea packet tea

packet tea consumers

tea bags packet tea

uae tea consumers

kind of tea

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types tea bags