Tata Tea……..

World's second largest Manufacturer & Distributor of tea

Tata Tea Limited• Owned by India's Tata Group.• Tata Tea is the largest tea brand in India.• Type - Private• Founded - Kolkata, India (1964)• Founder(s)- JRDTata• Headquarters – Bengaluru, India (Chairman)- RatanTata • Products- Tea , Coffee• Manufactures 70 million kg of tea in India, controls:- 54 tea

Estates, in Assam, Kerala, and West Bengal• Employees 34,596 (2006)

Manufacture of Instant Tea,& Blending (Kerala).

•Packaging factories at Bangalore (Karnataka) and Naine, Allahabad (U.P.)

• First tea company in India to set up processing and packing facilities at the tea estates itself.

•The Tata Tea group is the world’s second largest global branded tea operation with a presence in over 60 countries.•Tata Tea has subsidiaries in Australia, Great Britain, United States, Czech Republic and India.•Group’s annual turnover is US$1.5 billion (FY 2009/10)

•100% export-oriented unit

TATA GLOBAL BEVERAGE LTD.

• Incorporated-18th October 1962• On 8th May ,1963.

• Cultivates-

• Plantations & Manufacturing• Selling & exporting Instant ,blended teas.

To develop value added teas in the growingly competitive Indian tea market.

It is the world’s second largest branded tea company.

In 1964 , Joint Venture

• Afterwards ,Established Popular brands in India

1983

•James Finlay sold its shares of Tata Finlay to the Tata Family,& allowed the creation of Company –TATA TEA LTD.•3% of market share. The dawn of a new era

•Decided to Focus on consumer branding

Tata Tea brand

Kanan Devan

Chakra Gold Gemini

Agni

.

1993, JV with allied Lyons Plc, Tata Tetley established.

2000

2005

Tata Tea acquires Tetley Group Ltd

Tetley Group acquires Good Earth ,U.S.A

2006 Group acquires

.

2009•Announced integration of Beverage Brands.•Group acquires Grand Coffee, Russia

2010

Caffeine-free hot beverage, specially blended for kids, launched by Tetley in U.K

2011

•JV with Pepsico named Nourish Co. Himalayan water added to JV.

•Increase stake in JOEKELS TEA, -become a subsidiary Co.

•Investment in Mountain Everest Mineral Water.

•Tetley group acquires Polish Tea Brand, VITAX

2007

Process..

Tea Cultivation

Tea Plucking

Dryer MachineFermenting

Filtering

Tea packaging

Product

• 3 National/Regional -Tata Tea, Tetley & Agni,/ KananDevan, Gemini & Chakra Gold.

• 40 bags for singles, 80 bags for couples, 150 bags and 250 bags are Family Packs.

• Organic Tea.• Instant Tea.• Instant Tea powder is packed in bulk

packages of 20/25/35 kg each.

• To set higher price but offering more value for it.

• Building value around its brand by distinguish it from competitor’s.

• Price for 250gm pack in northern India, approx Rs 46.

• Popular segment pricing is 145-180,premium segment beyond 180/kg.

• Penetrating Strategy.• Buy value for money, not cheap product.

Place

• Assam & Darjeeling & will then be blended and packed.

• Manufacturer, wholesalers, dealer ,retailers,consumer.,with wider distribution network.

• The final product will be distributed to Retailers such as Supermarkets & main tea shops so the end consumer has easy access to it..

• Tea available -South India is mainly dust, whereas the North Indians prefer leaf tea.

• South India, Southeast India, Southwest India,the Northern &Eastern markets, across Delhi, Bihar, U.P, Haryana, Punjab & H.P.

• Adv campaign to build awareness n differentiated products quality from its competitors.

• Promotes social awakening and action through its landmark ‘Jaago Re’ marketing campaigns.

• Launches Jaago Re, a holistic 360 degree advertising,campaign using the unique route of social awakening.

• “Har Subah Sirf Utho Mat, Jaago Re.

• Tetley- In 70 countries & close to 11 million UK homes.

Leader in black tea,  Market leader in the UK and Canada .

• Good Earth- Started as a herbal & speciality tea business on the US west coast.

 • Eight O’Clock Coffee- 3rd largest coffee brand by volume -US & fastest

growing brands, with sales up by 17% in 2009 .

• Jemca- Leading tea brand in the Czech Republic , with a strong portfolio of black, green and fruit and herbal teas.

• Joekels- SA’s most popular household tea brands.

Portfolio includes Laager Rooibos – the 2rd largest selling tea brand in South Africa

Brands

…

• Vitax - Fruit and herbal tea brand in Poland &Part of Tata Global Beverages since 2007.

Innovative flavours and aromas.

• Grand- Leading economy segment umbrella brand for consistent – Quality,– Good value, – Coffee, – Tea – Instant tea drinks.

4th largest player in instant coffee in Russia.

• Tata Coffee - World’s largest integrated coffee businesses.

Only plantation company in India.• Himalayan Water

5 brands in India:- Tata Tea, Tetley, Kanan Devan, Chakra Gold, and Gemini

• Superbrand’ & 2nd most trusted beverage brand in India.

• Volume leader with 19.1% market share in branded packet tea.

• Successful across India with 4 national & 3 regional brands.

• Promotes social awakening

‘Jaago Re’ marketing campaigns.

India’s largest brand,7.4% volume & 8.5% value share in branded packet tea.

Fastest Grower.New aromas, packaging & marketing.

Economy tea of choice.

Helps you get more out of every day. Firm favourite for the busy modern day lifestyle

Leading premium brand in Andhra Pradesh

Market leader in Andhra Pradesh, Achieving impressive year on year growth

Freshness of the Kannan Devan hills , it is a leading brand in Kerala.

Segmentation/Targeting.

• Demographics

Income

•Premium- Chakra Gold, a strong premium tea in Tamil Nadu and Andhra Pradesh.

Tetley. Assam dust with a golden taste that creates golden moments.Tata Tea Life with natural herbal extracts, in the premium segment.Tata Tea Temptation.

•Popular-Tata Tea

•Economy- Agni, offers strength and a low price.Priced at Rs 5, Rs 10 and Rs 30, when launched. Strong presence across all the segments in the leaf tea market.Rural market.

•Consists of group of consumer’s who have similar set of wants.

Psychographics• Lifestyle• Values

Products vary in terms of- blend, pricing & packaging formats to cater to the unique needs of each segment.”

Behavior segmentation• Usage• Loyalties

• Target-

Rural areas

Semi-rural towns and villages

Segment of population in the cities who would go for the value for money, Like for branded 'kadak chai'."

Housewives

Competitor’s

• Bombay Burmah

• Dhunseri Petro

• AssamCompany

• Jayshree Tea

• CCL Products

Duncans Ind

• United Nilgiri

• McLeod- one of the largest tea cultivators and exporter in the country

In 2002

HUL62%

TATA TEA38%

Market Share

•Gap has been narrowing down , since then & for the first time in June 2009 HUL lost its pole position to Tata Tea.

HUL49%

TATA TEA51%

Market share 2009

Value share of Tata tea, 22.6% in Nov ,having overtaken peer HUL - has a value share of 21.3%.

In 2007,volume share in Nov of 19.9%, higher than HUL’s 17.3%.

Company is drawing up fresh strategies.Tata Tea’s `Jaago Re’ ad campaign. Company’s game plan includes increased focus on rural markets (value packs strategy).

“New format is a 360 degree ad campaign focusing on rural markets with value-packs, prices at Rs 1, 5 and 10 in rural markets.Tata Tea is increasing its advertising budget by 15% in Q2 FY 10

• TATA TEA

Innovations & interactive ad campaigns.HUL has rolled out an aggressive online ad campaign titled ‘Stay Sharp’. World’s largest online collaborated jigsaw challenge to interact with consumers”,

• HUL

Strategy’s

• The direct competitors-

Local players Lipton's Taaza in some areas.

Strategy against competitor’s

• Tata Tea Agni's pricing is on a par.• Unique blend & Superior packaging,

Tata Agni would capture the imagination of the economy segment consumers.

• Not using Sania Mirza for adv of Tata Tea Agni.

Halo Effect

• The adv. for Agni - More product-specific.

• Launching value packs.

• Strengthened the brew & better packaging & communication.

• Focus on growing in the the Asia-Pacific region, • Russia, the second biggest tea market, Africa and the US.(Push Strategy)

Eg-

• The group will use brands that are powerful in a region to push other brands in its portfolio.

• Tetley – Walmart Store’s.

• BTL Activity in 150 retail outlets.(Kolkata)

• Promoter in every outlet.

• Involved ->

Difference of CTC &Darjeeling Tea.

• Distribution of Leaflets.

Running the promo consumer scheme-

free Britannia Cookies with 100gm pack &

Ceramic Tea Mug with 250gm pack

Darjeeling Tea Inshop Promotion.

Cause related marketing – Tata Tea jaago re campaign

Against corruption.

•Promoted voter registration across the country.•Taregted- Younger gen.of first time voters.

320,000 youngsters registered.

NGO 'Janaagraha Centre for Citizenship & Democracy, & a corporate 'Tata Tea".

Differentiate tea brands.

Campaign is a good fit to their attempt to umbrella brand all their tea brands.

Against Corruption.

Customer psychological profile

The inner psychological characteristics that both determine and reflect how a person

responds to his or her environment

Personality of consumers towards Tata Tea

• There are individual differences as some consumers drink tea on daily basis, while others do not have the habit of drinking tea.

• Tata tea is a very familiar and trustworthy brand for those who are in the habit of drinking tea very often.

CONT….

• Freudian Theory is suitable for the brand Tata tea.• Ego is the reason for which consumers prefer the

brand of tata tea.

Motivation as a Psychological Force

• Motivation is the driving force within individuals that impels them to action.

• Needs are the essence of the marketing concept. Marketers do not create needs but can make consumers aware of needs.

CONT…

• Tata tea is an innate need because of the following reason:

• It is a Physiological (or biogenic) need that is considered primary need or motive.

CONT...

• Tata tea brand is a product specific goal for the consumer because:

• It is a specifically branded product that consumers select as their goal.

CONT….

• According to the Maslow’s Hierarchy Of Needs Tata tea is the brand that satisfies the ego needs of the consumers.

• This includes the consumer’s prestige , status and self- esteem.

Perception• The process by which an individual selects,

organizes, and interprets stimuli into a meaningful and coherent picture of the world

• Elements of Perception– Sensation– Absolute threshold– Differential threshold– Subliminal perception

Perceptual Selection

• Nature of the stimulus: Includes the product’s physical attributes, package design, brand name and advertising.

• Expectations: Based on familiarity, previous experience and expectations.

• Motives: Needs or wants for a product or service.

• Marketer has to keep all these in mind while selling Tata tea.

Packaging as a Positioning Element

• Packaging conveys the image that the brand communicates to the buyer.

• Color, weight, image, and shape are all important.

• Repositioning might be necessary because:– Increased competition– Changing consumer tastes

Learning

• The process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior.

• Cognitive learning should be used for Tata tea because it is often in response to problem solving.

• A learned predisposition to behave in a consistently favourable or unfavourable manner with respect to a given object.

• For Tata tea the consumers behaved in a favourable manner and showed their likeness towards the brand.

Attitude-Toward-The-Ad Model

• The advertisement of the Tata tea brand formed various feelings and judgements of the consumers towards the brand which ultimately made the brand successful in the market.

Role of social interactions in making purchasing decision

• WORD OF MOUTH

• AN EDITORIAL IN THE NEWSPAPER

• AN ARTICLE IN CONSUMER REPORTS

• VIEWS OF EXPERIENCED CONSUMERS IN A DISCUSSION GROUP ON THE INTERNET

POST PURCHASE EVALUATION• THROUGH QUESTIONNAIRE

• WWW.MOUTHSHUT.COM

• CARRYING OUT A SURVEY

• ATTRACTIVE GIFTS IF FEEDBACK FORM FILLED

• CALLING THE CUSTOMER

Research Design : Descriptive research Design.

Sampling technique- Convenience sampling.

Population – 100 respondents of Chitkara University. Sample unit - Student’s of Finance and Marketing Department and some housewife’s.

Sample size – 25 student of finance department 35 student of marketing department and 40 housewife.

Primary Data.-Primary data has been collected by means of questionnaire method.

Secondary Data.-The secondary data source of data includes company official site, various internet sites . Tools for Data Collection – Questionnaire

Analysis & Interpretation

Yes

no

5 15 25 35 45 55 65 75 85 95Yes no

Series1 100 0

100

0

Have you heard about the brand "Tata Tea"

Series1

yes no

Series1 91.67 8.33

5152535455565758595

91.67

8.33

Have you tried Tata Tea

Series1

41.46

29.17

29.17

Frequency of daily consumption of tea...

OnceTwo timesMore then two times

1 2 3 4 5 6 7 response total0

20

40

60

80

100

120

140

160

74

9 4 0 4 09

2314

0

3030

17 94

9

23

14

4

35 43

44

90

23

14

94

9

43

179

9

23

14

55

9

950

18 5

22

14

413

4

13

17

39

9

23

14

4 4 09

0

22

61

23

14

Factors effecting purchasing of tata tea..

imagebrandformpackagingqualityprice flavour

tea bag

tea powder

tea granules

2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5tea bag tea powder tea granules

Series1 41.67 12.5 45.83

41.67

12.5

45.83

Form of tea like by customer..

Series1

free gifts price offer any other

Series1 37.5 50 12.5

2.57.5

12.517.522.527.532.537.542.547.5 37.5

50

12.5

promotional offer attracts customers most...

Series1

advertisement

suggestion from friends and relatives

attractive display

doctor's advice

brand ambassador's

ingredients

0 5 10 15 20 25 30 35 40 45 50

45.83

20.83

4.17

4.17

0

25

Factors affecting purchase of tata tea...

Series1

television

newspaper

broacher's

hoarding's

0 10 20 30 40 50 60 70 80 90 100

91.3

4.35

0

4.35

Which media of advertisment influence your purchase.

Series1

60.87

39.13

Tata tea as a affluent brand...

yesno

tetley tajmahal brooke bond marvel red label

Series1 26.09 43.48 8.7 0 21.74

2.57.5

12.517.522.527.532.537.542.5

26.09

43.48

8.7

0

21.74

Other alternative preferences in case of rise in income levelof customer....

Series1

0.5 1 1.5 2 2.5 3 3.50

10

20

30

40

50

60

4.17

54.17

41.67

Alternatives in case of non availabilty of tata tea...

Series1

no not at all

I may consider

no I shall not

cn't say

2.5 7.5 12.5 17.5 22.5 27.5 32.5 37.5 42.5 47.5no not at all I may consider no I shall not cn't say

Series1 25 45.83 8.33 20.83

25

45.83

8.33

20.83

In case of subsitute of tata tea, prefernce of customer

Series1

1 2 3 4 5 6 7 responses total

flavour or taste 65 22 0 0 4 0 9 23 14

price 0 35 26 17 9 9 4 23 14

quality 13 30 39 4 9 4 0 23 14

packaging 4 0 9 57 17 9 4 23 14

form 0 4 17 9 48 4 17 23 14

brand image 0 9 4 13 9 52 13 23 14

colour 17 0 4 0 4 22 52 23 14

5%15%25%35%45%55%65%75%85%95%

65

22

0 0 4 09 23 14

0

35

2617 9 9

423 14

13 30

39

4 94 0

23 14

40

9

57

17

9 4

23 14

04

17 9

48

4 17

23 14

0

9 4 13 9

52

13

23 14

170 4 0 4

22

52

23 14

Factors effecting satisfaction level...

colourbrand imageformpackagingqualitypriceflavour or taste