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Wagh Bakri Tea Lounge: Brewing a new Experience
Sahay, Arvind; Tiwari, Tara Case IIMA-MAR0527 / Published June 8, 2022 / 17 pages. Collection: Indian Institute of Management, Ahmedabad
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Product Overview

Wagh Bakri, a packaged-tea company, started operating tea lounges as a forward integration for the company. The goal was to increase both visibility and physical presence across different locations. However, with the increase in demand for social tea drinking, it started running kiosks in addition to lounges with the dual objective of increasing both visibility and profitability. The global COVID-19 pandemic in 2020 hit revenues as lounges and kiosks were shut. In Q4 CY2021, as sales started picking up, Wagh Bakri had to come up with the right mix of lounges and kiosks to achieve its objective. The case revolves around the experience that Wagh Bakri offers to its customers for a product (tea) which is consumed mostly at homes in India. The crux of the case is how Wagh Bakri creates an experience for its customers at its kiosks and lounges to attract more customers and achieve its objectives.



Learning Objectives

1. To understand the importance of tea and tea consumption trends in India. a. Customer behavior and demand for tea compared to coffee? 2. To understand the concept of Wagh Bakri tea lounges in India. a. Who are their competitors? b. What are they selling to their customers- tea or experience? 3. To understand experience marketing a. What attributes help in creating a good experience for the customers? b. How is customer behavior relating to experiences different from that of products? c. How can Wagh Bakri enhance experience of its customers? 4. To analyse the two models adopted by Wagh Bakri i.e., lounges and kiosks. a. Going forward, which model should they follow? Or should there be a mix of kiosks and lounges? b. What should be the elements of the experience in the lounges that enables the Waghbakri Tea Lounge to become a serious lounge experience? In the kiosks? c. What kind of locations should they target?


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  • Overview

    Wagh Bakri, a packaged-tea company, started operating tea lounges as a forward integration for the company. The goal was to increase both visibility and physical presence across different locations. However, with the increase in demand for social tea drinking, it started running kiosks in addition to lounges with the dual objective of increasing both visibility and profitability. The global COVID-19 pandemic in 2020 hit revenues as lounges and kiosks were shut. In Q4 CY2021, as sales started picking up, Wagh Bakri had to come up with the right mix of lounges and kiosks to achieve its objective. The case revolves around the experience that Wagh Bakri offers to its customers for a product (tea) which is consumed mostly at homes in India. The crux of the case is how Wagh Bakri creates an experience for its customers at its kiosks and lounges to attract more customers and achieve its objectives.

  • Learning Objectives

    Learning Objectives

    1. To understand the importance of tea and tea consumption trends in India. a. Customer behavior and demand for tea compared to coffee? 2. To understand the concept of Wagh Bakri tea lounges in India. a. Who are their competitors? b. What are they selling to their customers- tea or experience? 3. To understand experience marketing a. What attributes help in creating a good experience for the customers? b. How is customer behavior relating to experiences different from that of products? c. How can Wagh Bakri enhance experience of its customers? 4. To analyse the two models adopted by Wagh Bakri i.e., lounges and kiosks. a. Going forward, which model should they follow? Or should there be a mix of kiosks and lounges? b. What should be the elements of the experience in the lounges that enables the Waghbakri Tea Lounge to become a serious lounge experience? In the kiosks? c. What kind of locations should they target?