Who should Tata Tea target?

Arnab Mukherjee
Charu Chopra
What’s happening to category?

  Urban/Rural
All Urban Rural

Est. Households (000s) 102% 103% 102%

%
growth Purchased 103% 103% 103%

Did not purchase 98% 103% 97%

What’s happening to Tata Tea?

  Urban/Rural
All Urban Rural

Tata Tea 105% 107% 104%

What should be the sales/share focus?

Tata tea should try and gain volumes in rural markets
Gain index similar across SEC R1-R4
Index A1 A2 B1 B2 C D E1 E2 R1 R2 R3 R4
Est. HH (000s) 104 105 103 105 103 103 103 101 106 105 102 101
Tea - Purchased  
Loose 102 96 95 109 106 106 107 109 113 112 109 112
Pre - Packaged 103 107 105 103 103 101 100 97 102 104 98 94
   
Tata Tea 103 106 111 106 110 105 108 102 107 103 104 106

Who should be the focus?

R1 – R4

Business focus?
Grow market share in chosen segments

Communication focus?
Converting loose tea users to pre-packaged tea in these 2 categories
Current share suggests the audience leaning
towards the brand

A1 A2 B1 B2 C D E1 E2 R1 R2 R3 R4

% Packaged '08 85% 81% 79% 74% 72% 63% 57% 49% 71% 67% 53% 43%

Tata Tea share of PP 31% 29% 28% 25% 21% 17% 14% 13% 22% 21% 14% 9%

R3 and R4 have the least connect with the brand and hence need to
be brought on board to accelerate growth
And contribution from R3 and R4 is the highest

Contribution 2007 2008 Contribution 2007 2008

A 1616 1693 19% 18% R1 972 1043 9% 9%
B 2029 2204 23% 24% R2 2346 2408 22% 22%
C 1870 2060 22% 22% R3 4562 4733 43% 43%
D 1639 1725 19% 19% R4 2686 2836 25% 26%
E 1522 1593 18% 17% Total 10566 11020
Total 8676 9275
 Summing up Tata Tea
• Step 1: Index- In a stagnant market, Tata Tea is gaining users
• Implication – Grow share aggressively
• Step 2: Index – The user gain profile suggests similar levels of gain across
rural market i.e. from R1-R4
• Implication – Rural adoption of Tata tea increasing
• Step 3: Share – Tata Tea’s share inR3 and R4 low as compared to the other
rural segments
• Implication – R3 and R4 attitudinally are the least connected to the brand
• Step 4: Contribution – R3 and R4 are the highest contributors
• Implication – R3 and R4 also the most attractive/important for Tata Tea