Tata tea pgp30031 sec_b

IT’S NOT TEA…IT’S A PRIDE

Established in 1868 by Jamsetji Tata

Operations in more than 100 countries

Revenue in 2014-15 : 103.24 billion

The Parent brand: TATA GROUP

TATA CHEMICALS

TATA CONSULTANCY SERVICES

TATA STEEL

TATA MOTORS

TATA POWER TATA GLOBAL BEVERAGES

TATA TELESERVICES TATA COMMUNICATION

TATA SUBSIDIARIES

INDIAN TEA INDUSTRY 2014-15

Production: 1200 million kg

Packaged tea market: 9500 crores

Retail value growth rate: 17%

20.7

20

6.7 6.1 3.6

40.1

Brand shares( in %)

Tata Tea

Brooke Bond

Lipton

Wagh Bakri

Kana Devan

Local players

Source: Euromonitor.com

86 Mn

100 Mn 117 Mn

CATEGORY DATA: 2012-2014

19.4

20.0 20.7

Tata Tea: Brand share as a % of retail value

Black Tea: Retail Sales by value in INR


Product Place Price Promotion

Ø Each variant’s packaging and product attributes designed keeping in mind the respective target segment Ø Eg: Tata Tea Gold: Premium customers- Positioned as most Aromatic

tea with 15% longer leaves Ø Available as bulk packages and tea bags

Ø Bulk packages SKUs: 100 g, 250 g, 500g, 1 Kg Ø Tea bags come in bunch of : 40, 80, 100, 250


Ø Produced in Assam and Darjeeling and Kannan Devan hills in South India

Ø Distribution network throughout the country Ø Tea availability :

South India- Mostly Dust North India- Tea leaves/ Dust with Tea leaves

Ø Major Consumers: South Indian states, UP, Bihar, Haryana


Ø Viewed as a value for money brand Ø Pricing in 3 segments:

Economy : Tata tea Agni/ Kannan devan – INR 224/kg Upper middle class/ Premium : Tata tea Premium – INR 330/kg Premium & distinguished taste : Tata tea Gold- INR 400/kg

Source: Bigbasket.com

Product Place Price Promo9on

hGps://www.youtube.com/watch?v=oqOzRbcrUIM

The JAAGO RE Campaign

Communication Objective: Awaken the youth to participate in the country’s politics


Digital Marketing Initiative

Started the website Jaagore.com in 2009 •  Users can register to join •  It includes discussion forums on

social and political issues •  Also includes information and

updates on political affairs


Communication Objective: •  49% women voters in India •  To raise awareness among

women to vote and select an accountable government

hGps://www.youtube.com/watch?v=HUhHTJsZVXw

JAAGO Re- Power of 49


Communication Objective: Make the brand more appealing to the youth

Celebrity Endorsements

Product Similar packaging, leaves quality and sub branding techniques Geographic segmentation not present like Tata Tea

Place Well established distribution channel like Tata Tea

Price Priced in the same range 300-400/ kg

Top Competitor- Brooke Bond

Top Competitor- Brooke Bond Promotion 1.Celebrity endorsements- Akshay Kumar 2. Advertisements communicating family get together with the tagline ‘Swad apnepan ka’ 3. WOM and Digital Media The ChaiWallah campaign in Dubai >>Tea stall was put up in a Dubai festival, with the chai Wallah selling tea in the traditional Indian way. This was seen for the first time outside India and drew 500 visitors per day. It created WOM and the news went viral on online media

Tata

Tea

Kan

nan

Deva

n •  Karnataka, kerela •  Resourced from

the Kannan devi hills

•  ‘Heighten your senses’

•  Characterised by unique taste preferred in karnataka and kerela T

ata

Tea

Chak

ra G

old •  Tamil Nadu,

Karnataka •  Hight quality

Assam leaves •  ‘Gloden colour

Golden taste’ •  Targetting the

south Indian customers who consider gold as pure and auspicious

Tata

Tea

Gem

ini •  Andhra pradesh

•  ‘Strong tea for strong family relations’

•  Targetting Andhra community known for giving highest emphasis on family relations

GEOGRAPHICAL SEGMENTATION

DEMOGRAPHIC SEGMENTATION Ta

ta te

a go

ld

•  Aroma coupled with refreshing taste for premium segment who have distinguished taste preferences

Tata

tea

Chak

ra g

old

•  Smart women from upper middle class family aged 25-40 who are empowered and is the buyer Ta

ta te

a Ag

ni

•  Offering for the middle class Families looking for economic value

TARGET CONSUMER

Indian middle class and upper middle class families accounting 300 million people

Youth, awakening them with the ‘Jaago Re! ‘ campaign

Housewives who are key in decision making

hGps://www.youtube.com/watch?v=OuoDcYERiDk

hGps://www.youtube.com/watch?v=8LG9xqKVyMc

POINTS OF PARITY Ø Quality leaves/dust with good packaging Ø Good Flavour, aroma and refreshing Ø Available in different packs/sizes

POINTS OF DIFFERENCE Ø Leverages Tata Brand equity

Ø More diverse portfolio of products targeting different

segments as compared to competitors

Ø Self owned tea plantations

Ø First player in the Indian market

Ø Social awareness campaigns – Jaago Re and power of 49 has

built strong brand image

Tata Tea is the most aromatic tea with superior quality leaves which is not a mere wake up drink but a medium of social awakening in India

POSITIONING STATEMENT

Flavour No Flavour

Fresh/Energizing

Non Fresh/ Non Energizing

Brooke bond Taj Mahal

Brooke bond Tazaa

Brooke bond Red Label

Tata Tea Agni

Wagh bakri

Tetley

PERCEPTUAL MAP

High Price

Fresh/Energizing

Non Fresh/ Non Energizing

Brooke bond Taj Mahal

Brooke bond Tazaa

Brooke bond Red Label

Tata Tea Gold

Wagh bakri

Kanan Devan

Low Price

PERCEPTUAL MAP

Tata Tea Agni Tata Tea

premium

Brooke bond premium

Lipton Darjeeling tea

600/kg 450/kg 200/kg 300/kg *Not to scale

SUMMARY

4 P’s Helped us contrast Tata Tea’s offerings with its competitors The key difference lies in the promotion strategy adopted

TATA is a well established and trusted brand that Tata tea leverages

Tata tea is established as a strong national brand with the help of the Jaago Re campaign

Tata Tea has to adopt more differentiation strategies to achieve a unique place in the perceptual map

REFERENCES

•  http://www.tataglobalbeverages.com/ •  https://en.wikipedia.org/wiki/Tata_Global_Beverages •  www.euromonitor.com •  http://www.tataglobalbeverages.com/docs/documents/tatatea-

sustainability-report-2013-14.pdf?sfvrsn=0 •  http://www.tataglobalbeverages.com/our-investors/annual-reports

Thank you

Submitted by Manil Punware Section: B Pgp30031 IIM Lucknow

Submitted to: Prof Sameer Mathur Ph.D Carnegie Mellon Marketing Professor, IIM Lucknow

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