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).

100% export-oriented unit

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 worlds 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. Groups annual turnover is US$1.5 billion (FY 2009/10)

TATA GLOBAL BEVERAGE LTD.

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

Cultivates-

Plantations & Manufacturing Selling & exporting Instant ,blended teas.

In 1964 , Joint Venture

To develop value added teas in the growingly competitive Indian tea market. It is the worlds second largest branded tea company.

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

Chakra Gold

Afterwards ,Established Popular brands in India

Agni

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

2000 Tata Tea acquires Tetley Group Ltd

2005 Tetley Group acquires Good Earth ,U.S.A

2006

Group acquires .

2007 Investment in Mountain Everest Mineral Water. Tetley group acquires Polish Tea Brand, VITAX 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

2009

2011

JV with Pepsico named Nourish Co. Himalayan water added to JV. Increase stake in JOEKELS TEA, -become a subsidiary Co.

Process..

Tea Cultivation
Tea Plucking

Dryer Machine

Fermenting

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.

Price

To set higher price but offering more value for it. Building value around its brand by distinguish it from competitors. 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.

Promotion

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 OClock 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- SAs most popular household tea brands. Portfolio includes Laager Rooibos the 2rd largest selling tea brand in South Africa

 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 - Worlds 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.

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

Indias largest brand,7.4% volume & 8.5% value share in branded packet tea.

Fastest Grower. New aromas, packaging & marketing.

Economy tea of choice.

Leading premium brand in Andhra Pradesh

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

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

Segmentation/Targeting
Consists of group of consumers who have similar set of wants.

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.

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-

Housewives

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'."

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

Gap has been narrowing down , since then & for the first time in June 2009 HUL lost its pole position to Tata Tea. In 2007,volume share in Nov of 19.9%, higher than HULs 17.3%.

Strategys

TATA TEA
Company is drawing up fresh strategies . Tata Teas `Jaago Re ad campaign. Companys game plan includes increased focus on rural markets (value packs strategy). New format is a 360 degree ad campaign focusing on rural markets with valuepacks, prices at Rs 1, 5 and 10 in rural markets. Tata Tea is increasing its advertising budget by 15% in Q2 FY 10

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

 The direct competitors-

Local players Lipton's Taaza in some areas.

Strategy against competitors

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 Stores.

Darjeeling Tea Inshop Promotion.

BTL Activity in 150 retail outlets.(Kolkata) Promoter in every outlet. Involved -> Difference of CTC &Darjeeling Tea. Distribution of Leaflets. Running the promo consumer schemefree Britannia Cookies with 100gm pack & Ceramic Tea Mug with 250gm pack

Cause related marketing Tata Tea jaago re campaign Promoted voter registration across the country. Taregted- Younger gen.of first time voters. 320,000 youngsters registered.

Against Corruption. Against corruption. NGO 'Janaagraha Centre for Citizenship & Democracy, & a corporate 'Tata Tea". Campaign is a good fit to their attempt to umbrella brand all their tea brands. Differentiate tea brands.

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 Maslows Hierarchy Of Needs Tata tea is the brand that satisfies the ego needs of the consumers.

This includes the consumers 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 products 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 - Students of Finance and Marketing Department and some housewifes. 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

Have you heard about the brand "Tata Tea"

no

Series1

Yes

100

10

20 Yes 100

30

40

50

60

70

80 no 0

90

100

Series1

Have you tried Tata Tea

91.67 100 90 80 70 60 50 40 30 20 10 0 Series1

Series1

8.33

yes 91.67

no 8.33

Frequency of daily consumption of tea...

29.17

41.46 Once Two times More then two times

29.17

Factors effecting purchasing of tata tea..

160

23
140 23 120 100 4 4 5 9 4 0 4 13 5 4 35 74 30 20 9 0 1 2 3 30 4 0 4 9 9 0 17 22 image brand 14 form packaging quality price flavour

9 13 9

22 23
61

80
60 40

14 14 14

43 43

50

39

23 9 5 9 0 9 9 7

17 4 17 0 4 5 4 9 4

18 9 9 4 0 6

23

14 14

23

14 total

response

Form of tea like by customer..

tea granules tea powder tea bag 0 Series1 5 tea bag 41.67 10 15 20 25 tea powder 12.5 30 35 40 12.5 41.67 45 tea granules 45.83 50 Series1 45.83

promotional offer attracts customers most...

50 50 40 30 20 10 0 Series1 free gifts 37.5 price offer 50 any other 12.5 12.5 Series1 37.5

Factors affecting purchase of tata tea...

ingredients brand ambassador's doctor's advice attractive display suggestion from friends and relatives advertisement 0 5 10 15 20 25 30 35 40 45 0 4.17 4.17 20.83 45.83 50 Series1 25

Which media of advertisment influence your purchase.

hoarding's

4.35

broacher's 0 newspaper television 0 10 20 30 40 4.35 91.3 50 60 70 80 90 100 Series1

Tata tea as a affluent brand...

39.13 60.87 yes no

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

50 40 30 20 10 0 Series1 tetley 26.09 tajmahal 43.48 brooke bond 8.7 26.09 8.7 0 marvel 0 red label 21.74 21.74 43.48

Series1

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

60
50 40 30 20 10 0 0 0.5 4.17 1 1.5 2 2.5 3 3.5 54.17 41.67

Series1

In case of subsitute of tata tea, prefernce of customer

cn't say no I shall not I may consider no not at all 0 Series1 5 10 15 20 25 25 30 35 40 45 cn't say 20.83 50 8.33 45.83 Series1 20.83

no not at all 25

I may consider 45.83

no I shall not 8.33

Factors effecting satisfaction level...

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 17 0 4 13 0 0 9 4 0 30 4 4 17 9 48 35 39 0 13 9 4 9 22 52 52 13 17 22 1 17 0 0 4 13 0 65 2 0 9 4 0 30 35 22 26 0 3 4 4 17 9 39 26 0 4 17 0 4 0 13 9 57 4 17 0 9 9 4 5 4 9 48 17 9 9 4 4 9 4 9 0 6 22 52 4 9 4 9 0 17 4 0 4 9 7 52 13 17 4 0 4 9 23 23 23 23 23 14 14 14 14 14 colour brand image form packaging quality responses 23 23 23 23 23 23 23 total 14 14 14 14 14 14 14 price flavour or taste

57

65

23
23

14
14

colour
brand image form packaging quality price flavour or taste