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
Top Related