MARKETING MANAGEMENT – ITea Industry

Group No. 7

1

TEA INDUSTRY

Referenceshttp://www.indianetzone.com/

2

TEA INDUSTRY CONTD.3

Referenceshttp://www.stockmarketsreview.com/

MARKET ANALYSIS

The assessment of the target market by looking at the market trends.

Global Scenario : In 2008, the total tea

production was around 3.75M and around 80.0% of it having produced by India, China, Kenya, Sri Lanka and Vietnam.

Region wise sales

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

US

A

Ca

na

da

an

d S

A

UK

&

Afr

ica

Eu

rop

e &

ME

So

uth

Asi

a

Asi

aP

aci

fic

Regions

Rs

Cr

2009 2010

12%

9%

91%

24%

2%

15%

Figure : Region wise sales of 2009 and 2010(Source : Year End Analyst Presentation 2009-2010)

References : http://www.zero2ipo.com.cn/en/n/2009-6-6/2009625163506.shtml

4

MARKET ANALYSIS

Indian Market Fourth largest in terms of

production. Total turnover is about Rs. 10,000

Crores.

Tata Tea Among India’s first Multinational

companies to have entered the tea market.

Market Share Tata Tea is the market leader in

India with a market share of 21.6%. It is also a market leader in Poland in the Earl Grey Category with a 19% market share.

It accounts for a worldwide tea business of about 86% of the turnover and the remaining 14% is from bulk tea, coffee and investment income.

(Source : Year End Analyst Presentation 2009-2010)

References : www.tatatea.com

5

Submarket: The submarket entered by Tata Tea Ltd. is based on the use and price. On the basis of use, the products are primarily categorised as Bulk Tea, Instant Tea,

Packet Tea, Coffee and Strawberry.

Market Segment: Social Class: The working class is either in the category of middle class or upper

middle class. Age: Youth who are energetic, knowledgeable, trendy and ambitious.

S.No Brand Experience1. Tata Tea Premium The Promise of Freshness2. Tata Tea GOLD, Aroma coupled with a refreshing

taste3. TataTea Agni Economy Segment4. Gemini Dust Tea5. Chakra Gold High quality Assam CTC Dust

teas6. Temptation  Premium, orthodox leaf tea

References : www.tatatea.com

MARKET ANALYSIS6

MARKET ANALYSIS

Market Positioning:

Pricing: Tata Tea has got the leading price activity in the market. They have got the

economy packs, the premium packs and the value packs of tea.

References : http://www.jaagore.com/ http://www.radioandmusic.com/content/editorial/news/tata-tea-ropes-fever-mirchi-phase-ii-jaago-re-campaign

7

MARKET ANALYSIS Market Trends:

China dominates the global tea production.

A supply shortage is expected to increase the procurement cost for companies.

Tata Tea has outperformed in 2010, gaining almost 25% of the market share.

Distribution Distribution of Tata tea is through retailers and dealers.

References : http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/Growth-prospects-fire-up-tea-stocks/articleshow/6084261.cms

8

MARKET ANALYSIS Profitability:

The company showed a profit of 43% in 2008-2009.

Promotion: Primary aim of Tata Tea Limited is to build brand awareness and

differentiate their various products from the competitors through trade-sales promotion to support distribution strategy.

Key Success Factors: Strong Brand Image and Awareness: The Brand Image of Tata Tea,

belonging to the Tata Group needs no new brand recognition or awareness. Strategy against price wars: The strategy of having alternate offerings

at different price points. Managerial ability and experience: Headed by Peter Dylan Unsworth. Low product cost

9

TATA TEA10

MAIN ACTIVITIES OF TATA TEA LTD.

11

PEST ANALYSIS12

SWOT ANALYSIS13

COMPETITOR ANALYSIS14

PORTER’S ANALYSIS15

Porter’s 5 forces model explains following factors:- Competition within Industry ↑(High) Buyers ↑(High) Suppliers ↓(Low) Substitutes →(Moderate) Potential new Entrants ↑(High)

STRATEGIES

16

MARKET SURVEY

Market Survey was done with around 124 respondents - 73 responses were direct survey and the rest were online survey.

The analysis was done on the basis of Personal Factors: Age and Economic Circumstances. Cultural Factors: Geography and Types of tea Positioning of brands: Reason For Purchase of a Particular Brand and

Brand of Tea Preferred

Personal Factors:Age: It was observed that 62% of them were less than 25 years, 21% belonged to age group

25-40 years, 16% were aged between 40-60years and 2% were above 60 years. We could conclude that the youth were major consumers of tea, who were the target

customers of Tata Tea.

17

MARKET SURVEY

Personal Factors:

Economic Circumstances

Benefits

18

MARKET SURVEY

Cultural Factors:

Geography

From market survey, it was observed that 84% of the respondents were from the Northern and eastern parts of the country and the rest 16% were from the Southern part.

19

MARKET SURVEY

Cultural Factors:

Types of Tea:

20

MARKET SURVEY21

MARKET SURVEY22

MARKET SURVEY

Positioning of brands :

Reason For Purchase of a Particular Brand :

79% of the respondents preferred to continue with the current product

 

23

MARKET SURVEY

Brand of Tea Preferred :

24

25