Developing a Distinctive Brand Identity: Indian Tea Startup

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Table of Contents

Introduction
Globalization
Technology
Conflict and Collaboration
Conclusion
Reference List

Introduction

Marketing is developing and maintaining a brand; it is the collection of strategies and tactics a company or product uses to interact with its target audience and discover long-term competitive advantages. Tea is among the most popular beverages in the world, and it is cheap to even the poorest of its consumers. Indians do not have to pay import duties on tea because it is cultivated there and is a significant export from locations like Darjeeling. That is why many Indian tea producers consider reaching the international market with their products. This process is challenging because foreign markets typically imply severe competition, local rules, and other issues. Organizations and entrepreneurs are likely to face significant difficulties getting a competitive advantage abroad, but successful results are still possible. Thus, the selected Indian tea startup should utilize globalization benefits, meet capitalism requirements, invest in technology implementation, and address the existing conflicts to increase its opportunities to benefit from international trade.

Globalization

Globalization is a characteristic feature of the present world, which means that organizations do not limit themselves to domestic markets. As a result of globalization, countries have had the opportunity to expand their markets while also gaining access to commodities and services that would otherwise be unavailable in their home environments (Malesky and Mosley, 2018, p. 720). This phenomenon provides businesses with many advantages because they obtain opportunities to benefit from new markets and distribute their services or products to high-resent territories. That is why it is reasonable to consider how globalization concepts and principles can be applied to the startup Indian tea brand under analysis.

Capitalism and the Global Spread of the Brand

Capitalism as a general economic system is usually understood as one in which individual actors own and control property according to their interests. Profit-seeking is one of capitalism’s most fundamental aspects and one of its most important traits (Kozhisseri et al., 2020, p. 950). Supply and demand dynamics influence the prices of goods and workers’ pay in a capitalist society. Thus, capitalists are motivated to generate the most outstanding value at the lowest possible expenses, while consumers look for high-quality goods and services at the most affordable costs. Producers are compelled to meet the demands of their customers as a result of competition. Capitalism is a significant pillar of the globalization strategy, meaning that the selected Indian tea brand abides by its requirements and focuses on maximizing its profits.

According to the information above, the startup under consideration should make specific efforts to spread its brand globally and reckon on financial benefits. When developing a global expansion strategy is necessary, organizations should take specific steps to succeed. Firstly, it is necessary to create relevant goals that will guide the entire business process (Eldan, 2021, para. 9). Secondly, it is reasonable to invest in researching the target market. The focus should be placed on identifying demand, market size, and competitors (Eldan, 2021, para. 16). Sivakumar (2020, p. 42) also supports the statement and admits that understanding the needs of the target market is essential. Finally, the brand should choose an appropriate global expansion strategy.

It is reasonable to offer a detailed description of what strategies should be chosen. In fact, there exist various options, including exporting, franchising, creating partnerships, and merging. The selection of a specific strategy depends on how many resources a company owns, what market it aims to enter, and other conditions. For the startup, partnership and exportation seem the most appropriate options because they are the most cost-effective ones against the background of lower budgets (Eldan, 2021, para. 24). These strategies imply that the selected Indian business can start spreading its brand globally without the necessity to allocate massive financial resources.

Increased International Trade

Sufficient evidence supports the statement that it is financially reasonable to promote the Indian tea industry. India is the third-largest exporter of tea globally after China and Kenya (Statista, 2022, para. 1). In 2021, the country produced more than 1,250 million metric tons of this product (Statista, 2022, para. 1). Simultaneously, the given nation is among the leading consumers of this beverage, but this fact does not limit India’s ability to obtain significant financial profits from exports. Additionally, the rise of e-commerce and widespread digitalization in India has aided many indigenous tea brands to become digital, selling their products online to reach a larger local and international audience (Kalia, Kaur and Singh, 2018, p. 746). As a result of increased international trade, the market has become more competitive, providing consumers with high-quality products to overcome rivals. Furthermore, tea is a widespread beverage, meaning that the given economic sector can find target consumers almost in every market. This information denotes that there are particular benefits behind promoting the Indian tea industry.

In addition to that, one should highlight that India impresses with a specific tea culture that is an integral element of the entire industry. In the evening, sips of tea are like invigorating breaths of energy and freshness for men who have returned from their jobs. They sit on the couches with mugs of tea and drink hot beverages because of fatigue (Khanday, 2019, p. 1025). This hot beverage is a common source of entertainment and nutrition in India (Hazra, 2019, p. 520). This description demonstrates that the selected beverage occupies an essential role in the country, while this industry is also a major employer (Kroll, Warchol and Pradhan, 2019, p. 10). There is nothing dangerous in the fact that foreigners are allowed to sample this culture. However, it is challenging to imagine that the population of a specific country can entirely imitate the culture. Instead of complete sampling, foreigners can bring specific rituals to their home countries. This approach is beneficial for the selected startup company because when foreigners accept some Indian rituals, they popularize tea, leading to increased international trade.

Technology

Tea is a tropical and sub-tropical plant that flourishes well in hot and humid climates. A close relationship exists between the environment, the yield of tea, and its quality. Temperatures between 20°C and 30°C are suitable for its growth, with temperatures above 35°C and below 10°C being detrimental to the bush (Tibpromma et al., 2021, p. 7). Annual rainfall of 150-300 cm, evenly spread over the year, is required for this plant. High humidity, heavy dew, and early fog enhance the rapid development of newly harvested tea leaves, but a prolonged dry spell is detrimental to their growth. That is why ensuring that the environmental conditions meet the requirements above to maximize yield is highly important, and modern producers tend to rely on technological advancements to cope with the task.

Using Technology to Increase Tea Quality and Quantity

Some tea producers rely on various drones to facilitate the growing process. Their use is anticipated to reduce fertilizer waste and increase tea quality in the area. While one group of drones will do scientific analyzes of plant health, soil conditions, and other natural elements, another will spray fertilizer and pesticides to control the spread of the disease (Hafeez et al., 2022). Much cheap and competent labor is required to grow tea, particularly while plucking the leaves off the stalks. Plucking two leaves and a bud at a time is a time-consuming technique that requires dexterous finger movement.

Since it has been mentioned above that environmental conditions can significantly affect tea cultivation, specific technological tools and procedures are available to mitigate the negative impact of insufficient rains and high temperatures. Firstly, high and medium shade trees can be planted to ensure that they hide tea bushes (Navaratne, Wanigasundera and Alahakoon, 2019, p. 15). Secondly, farmers can irrigate the land when rains are absent for a long time. They can do it either manually or rely on various technological appliances. Thirdly, a suitable approach is to mulch the ground because this activity helps decrease water evaporation (Navaratne, Wanigasundera and Alahakoon, 2019, p. 15). These activities can help mitigate the impacts of high temperature and little rainfall.

Simultaneously, specific technological interventions exist to address high precipitations. Establishing the drainage structures in the tea land must be established to ensure that the excess water is removed (Navaratne, Wanigasundera and Alahakoon, 2019, p. 15). Shade trees should be lopped so that tea bushes receive the required amount of sunlight and warm temperature (Navaratne, Wanigasundera and Alahakoon, 2019, p. 15). Finally, farmers should improve the aeration of tea bushes by removing debris and waste (Navaratne, Wanigasundera and Alahakoon, 2019, p. 15). These activities can help minimize the adverse impact of the excess water on the plants.

The interventions above are considered effective when increasing the quality and quantity of tea leaves is necessary. The stipulated actions help farmers minimize harmful effects of the environment and ensure that tea bushes grow in suitable conditions, including temperature and precipitation amount. All tea producers should draw attention to this information because controlling the environmental conditions helps them achieve sufficient supply and meet market demand.

Technology to Build a Brand Image

In the present world, it is helpful to rely on technological advancements to build a brand image and promote the benefits of Indian tea. According to Raj (2021, p. 89), an appropriate approach is to brand tea leaves. This approach can help farmers “increase their bargaining power, remain competitive in the market, and receive a remunerative price for their produce” (Raj, 2021, p. 89). If the startup company decides to rely on this technological advancement, it will be significantly differentiated in the market. It is likely to expect that every consumer who buys its products will remember branded leaves and will be able to distinguish them from the rivals’ products. One should understand that this intervention requires specific equipment that is not cheap, but it is possible to stipulate that expenses can be refunded.

Social media has played a significant role in interacting with clients, receiving feedback, and advertising new products and services. It has become clear that social media is a suitable platform for building an online presence and maintaining the image and rankings. Despite obtaining many unfavorable evaluations from customers, certain companies have preserved a positive reputation. Managing social media profiles contributes to lowering the number of negative reviews and comments. Tea-manufacturing Indian entrepreneurs should be aware of the tremendous competition in the specific area (Deka and Goswami, 2020, p. 450). It is possible to conclude that the focus on social media platforms allows for establishing networking among consumers and sellers, which results in brand loyalty and sales promotion (Wang, Lin and Spencer, 2019, p. 163). Consequently, the selected startup business should consider using technologies to build its brand image.

Conflict and Collaboration

Technological progress increases the demand for workers in some markets while decreasing the need for them in others, and virtually all of these changes are positive. These concerns about automation and technology’s impact on jobs have only grown in recent years, as new technologies can potentially alter the nature of the workforce (Clemens, Lewis and Postel, 2018, p. 1470). Various claims show that concerns about robots, automation, and AI ignore that new technology is more likely to change employment options than replace them. Modern companies experiment with mechanical exoskeletons on the floor and on the production line to alleviate strain and fatigue when lifting big goods (Willcocks, 2020, p. 290). Furthermore, sales representatives will need to become more competent at online marketing and engagement strategies to respond to shifting customer preferences. Even though new technologies have the potential to eliminate millions of employments, millions of new occupations will be formed.

Technology and Tea Labor Market

Because some occupations will become useless due to new technology, job losses will occur. Automation and machines are taking the place of low-skilled people. A company that does not use technology to replace human labor risks financial loss owing to fierce competition from those that do (Arntz, Gregory and Zierahn, 2020, p. 10). Historical evidence supports the notion that technology has been more employer-creator than a job-destroyer. For example, more employment places were created during the Industrial Revolution than were removed (Wiedmann et al., 2020, p. 8). Better lifestyles due to technological advancements lead to increased consumption, which ultimately results in additional employment opportunities.

In addition to that, technology increases productivity and reduces the burden placed on workers by repetitive tasks by eliminating them. Workers should learn specific skills to remain employed in this situation. The only possible solution is to provide workers with training for the new jobs that have been created. By ensuring that low-skilled workers are retrained, employers can take advantage of technology’s positive impact on jobs (Estlund, 2018, p. 270). Technology is increasing the demand for technically skilled young people, and, as a result, more jobs are becoming available for those with a higher level of educational attainment. Thus, unemployment can be alleviated to a certain extent due to this approach.

Technological advancements lead to economic growth. When technological advancements replace human labor, businesses that utilize them save a significant amount of money, and their service offerings grow as a result. So they go on to create more jobs due to their effort (Aghion, Jones and Jones, 2019, p. 250). Increased job creation will positively impact the economy, while the government will collect increased tax revenue. The government may take advantage of this economic expansion to increase the number of job possibilities available at higher wages. In rural areas, technologies have the potential to generate large-scale employment opportunities, which helps alleviate the problem of rural unemployment.

According to this information, India should invest its efforts in bringing technology and innovation into the tea industry. This intervention will likely provide the economic sector with numerous advantages, including higher productivity, wages, and increased competitiveness. One should also highlight that tea companies are the leading employers of women in the country (Srivastava, 2019, p. 155). That is why it is reasonable to rely on technology to improve the working conditions and make them less physically hard for this gender.

International Promotion of Indian Tea

Cultural differences may have a significant impact on customer behavior. The success of a brand’s global expansion will ultimately depend on its ability to bridge cultural connections between domestic and international markets. In a culturally varied community or through interaction between different cultures, it is possible to stimulate the flow of ideas and the competition of different world perspectives (Luo and Tung, 2018, p. 240). This combination of ideas and points of view leads to more entrepreneurial activities when effective institutions are in place.

It is worth admitting that the global promotion of tea leads to increased competitiveness, which is challenging for India and other producers. Some experts state that China and Sri Lanka are larger tea exporters (Thasfiha, Dissanayaka and Arachchige, 2020, p. 48). Reynolds (2021, p. E-34) supports the statement and adds that Kenya overcomes India in the international market. However, the selected country has better outcomes than Vietnam and Indonesia (Chaudhry, 2019, p. 318). In addition to that, Kalauni, Joshi B. and Joshi A. (2020, p. 1) mention that Nepal is another beaten rival. One should admit that India is a leading exporter of tea to Russia and European countries (Navitha and Sethurajan, 2018, p. 696). It is possible to claim that the results in the international markets depend on entrepreneurs’ cultural features. Pruthi, Basu and Wright (2018, p. 210) stipulate that the domestic market’s peculiarities can significantly impact how people will operate in a foreign country. Since it is impossible to mention that the Indian market is sufficiently developed, it is not surprising that a few competitors overcome the nation in international trade.

Conclusion

The ability to establish a brand helps organizations maintain relationships with customers while creating long-term sustainable competitive advantage and safeguarding them from market volatility and uncertainty. The given Indian tea startup was selected to consider what actions are necessary for this small company to develop a distinctive brand identity and a clear competitive advantage. For example, the globalization trend implies that the business has an opportunity to enter the international market, but appropriate steps should be taken. Technological advancements also represent a significant area because they can allow the startup to increase the quality and quantity of tea products. Simultaneously, relying on social media platforms to promote marketing and establish networking with customers is reasonable. The implementation of innovation is also needed to improve the entire market and increase workers’ salaries. However, peculiarities of the Indian culture can limit the business’s ability to compete with international rivals, but these challenges can be overcome with specific marketing efforts.

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