SWOT analysis of Brooke bond

Brooke bond is one of the famous tea brands in the industry which is owned by Unilever which started as a company in the United Kingdom in the year 1845. There are so many sub-brands in this umbrella-brand such as Taj Mahal, Red Label, Tazaa, and Supreme.

The company after its genesis got merged with another company called Liebig in the year 1968 WHICH FURTHER GOT ACQUIRED BY Unilever in the year 1984

Strengths in the SWOT analysis of Brooke Bond

This helps in understanding the core areas of the business where it beats the competition and have the competitive advantage in the market. Strengths are generally the core competency of the business.

1. Sub Product Portfolio – Brooke Bond has a very strong brand portfolio. The business has invested a lot in making its brand name and portfolio. It has many categories in the product line which helps in building a wide market segment in the industry.
2. Flavor and Taste –The flavor and taste of the tea is very much liked by the customers and has a very loyal customer base. This has helped the brand to establish a good brand recall and equity in the market. The tea has a very different aroma which helps establish a brand identity.
3. Packaging – The packaging is very interesting and it helps the brad to catch the attention of customers on the shelf among various tea brands. The packaging has helped the brand to increase the volume of sales and attract new customers as well.
4. Established Network –Brooke Bond has been able to develop a good supply chain network which helps in ensuring availability of products. Unilever itself has an established supply chain network in the country which helps the brand to make the products available in different regions.

Weaknesses in the SWOT analysis of Brooke Bond

This is the pain area of the organization where it does not have the resources or skills. Business has to work upon these areas so that they are not left behind from the competition. Though there will be some or the other weakness but it should not be an area which takes the business pout off the market 

1. Storage Issues – This category faces huge storage issues as if it catches moisture then the entire product is damaged and hence the storage needs to be taken care of very well.
2. Promotional Media – The brand is dependent upon only traditional media of promotion and in this era of multi-channel promotions, the brand is not making use of those media to put forward the value proposition which is making it lose the market share to other players in the market which is making well use of different marketing channels.
3. Less Focus on Social Group – Social is now becoming the heart of marketing and Brooke bond is not adopting this channel to reach out to potential customers and hence losing the market share to other smart media players in the industry.

Opportunities in the SWOT analysis of Brooke Bond

This helps in understanding what other things a business can do with the current skills and resources. It helps the business to know the areas where it can expand and take a lead in order to diversify the business and expand the customer base

1. Tie up with hotels – Brooke Bond can tie up with hotels which will help in increasing the customer awareness as well as the sales
2. Market Expansion – Brooke Bond can target rural markets in order to penetrate more in the market and establish a different market segment.

Threats in the SWOT analysis of Brooke Bond

This analysis helps in understanding what are the areas which can impact the business in future or right away. So business has to prepare itself to handle the threats in the market landscape. Competition or increasing number of players in the market with same value proposition is a threat to business as it directly lowers down the customer base and revenue

1. Less Growth of Industry – The tea industry is highly matured and saturated and hence there is no upward expansion in the industry which is impacted the brand as well because the market share is stagnant and with increasing operation cost the margins are shrinking.
2. Substitutes in the market – There are so many substitutes in the market for tea. Different kinds of beverages are taking up the market share. The changing lifestyle of the consumers have made a shift away from tea to other drinks such as coffee, organic juices.