In an exclusive conversation with Restaurant India, Amit Jain, MD, CHA Palace, talks about their pricing structure for luxury teas which are designed to encourage frequent tea purchases and daily tea drinking.
What are the different types of teas served at your place? What is the difference in fine tea, flavour tea or signature tea which you are serving at CHA Palace?
We have three product ranges in our Fine Tea range- we offer handcrafted green, oolong and black Darjeeling teas. All are low in tannins and an excellent choice for the health conscious. Strong and full bodied is our Flavour Tea range that offers exquisite fruits, flowers and spices in natural form infused with black leaf tea. Our Signature Tea range features two exclusive and rare white teas from premiere single origin states in Darjeeling.
There are many tea brands. How much competition do you see with them?
We have launched with over 15 single state, fine harvest teas and exclusive loose leaf tea blends in the luxury segment. What truly differentiates our offering is our ‘culture in a cup ’ proposition we have attempted to elevate the Cha experience here and distil signature blends from the most premiere tea plantations in India to captivate the palates of Indian and international consumers, at a strategically economical price point.
Who are your target customers? How did you execute for your target customers?
Cha Palace teas are targeted at chic, cultured achievers from all walks of life from Entrepreneurs and corporate to patrons of the arts, authors, curators, designers, music composers, visual artists and ethnographers among others. We cater to the ever-expanding expat community in the country, especially in embassies, and affluent NRIs in overseas markets. From our brand’s tone of voice to our signature regal packaging to our marketing strategy is aimed at fusing Indian heritage and culture with the sophistication and global references of the jet set.
What is your marketing approach to survive in this market?
To thrive not survive in this market; we have created an exclusive online portal where all our three ranges of teas are retailed. We are very careful about where our teas are seen and are marketing through select exhibitions, exclusive print tie ups and digital marketing.
How do you decide on pricing keeping your customers in the mind?
It’s been said that tea is the most affordable luxury in the world and we have carefully planned our pricing to be perceived in that manner by our target group. Our pricing structure for our luxury teas is designed to encourage frequent tea purchases and daily tea drinking, while our higher priced Signature Tea Range is priced for special occasions and bespoke gifting.
Any new launch is expected in near future?
We are very close to launching a sub brand under Cha Palace, for people under 35 with modest to high disposable incomes.
What is your expansion plan in terms of targeted cities?
We ship pan-India through our online flagship e-commerce store (www.chapalace.com). We are partnering with luxury and heritage hotel chains, gourmet food stores and restaurants in our target cities.
Are you planning to sign any franchisee deal?
We aren’t considering a franchisee deal in the next few months, but it is on the cards for 2016.