Impact of demographic trends on marketing opportunities for Tata Global Beverages

1. Dependency ratio
Age dependency ratio is the ratio of dependents (people younger than 15 or older than 64) to
the working-age population (those ages 15-64).
We observe that the dependency ratio is continuously decreasing over the years due to various
factors including technological advancements (1994 to 2013). This is due to the rise in the
working population. When the dependency ratio is at its lowest, demographic dividend occurs.
Demographic dividend refers to a period usually 20 to 30 years when fertility rates fall due to
significant reductions in child and infant mortality rates. As women and families realize that
fewer children will die during infancy or childhood, they will begin to have fewer children to
reach their desired number of offspring, further reducing the proportion of non-productive
dependents.
This is also a time period when many women enter the labor force for the first time. TGB has
realized this fact and has also seen that the working female population is steadily rising. And
ads, movies and themes are centered around working-women as compared to the scenario a
decade ago.
Additionally, observations have been made regarding
Rising crime rates against women in India being a point of discontent for many in the
nation
And a research revealing that women believed that their vote made no difference
Against this background, the Power of 49 campaign came to life on Tata Teas iconic social
awakening platform Jaago Re. In its latest edition, the campaign sought to address womens
issues. The first phase was focused on creating awareness amongst women about the Power of
49 and the power of their informed vote. The second phase was about encouraging women to
voice the issues that are critical to them. After these two successful phases, in the next phase, a
facilitation mechanism will be created to help women get information on candidates by
leveraging various digital platforms.
Thus, TGB should focus on this campaign as this trend will continue for many years to come.
2. Rural vs. Urban markets
Though the rural population growth rate is less than the urban population growth rate for 2011,
market is untapped in organized tea market. Furthermore, the trend observed is that rural tea
drinkers as a percentage of total tea drinking population is increasing. This is causing the
proportion of urban tea drinkers to go down. This is primarily happening because of the opening
up of the rural areas to organized tea market. This large rural market presents great opportunity
for growth. The challenge is to adopt a sustainable yet cost effective model to leverage rural
Indias potential.
The Gaon Chalo program is TGBs effort in last mile rural distribution. It is an opportunity,
responsibility and a challenge which while tapping unreached rural markets also provides a
means of sustainable livelihood to many. This program, run through NGOs, is present in more
than 18 Indian states and benefits a number of women and youth.
Today, Gaon Chalo is present in 18 states with direct reach in 70,000 villages. But India has
currently 640,867 villages and large part is yet to be captured. Such TGB's efforts would help
capitalize and capture the rural markets in the near future.
3. Disposable income
Income remaining after deduction of taxes and social security charges, available to be spent or
saved as one wishes is disposable income.
We observe the trend that disposable income is steadily increasing over the years. In India, with
economic development occurring and increasing disposable incomes across most classes are
driving consumer demand for products that deliver on convenience and quality. Additionally, it
is also observed that the Indian consumer spends maximum part of his earnings on Food (~24%).
Green tea has been recently launched this year by TGB. It is available in tea bags since it is
convenient for consumers to use it that way. Due to its high antioxidant content, unique taste
and lack of calories, green tea is quickly becoming a quality product amongst health-conscious
Indian consumers. Consumer demand for more variety and premium products has led to an
increase in sales of green tea, creating an opportunity for TGB to expand their SKUs with more
offerings. Given that the unit price of green tea is three times the unit price of black tea, this
category is of particular interest as a value driver. This will also help the well positioned TGB to
transition the brand name into the premium category.

Group 2, Sec D, I year
Srikanth Guhan (140103165), Sanket Padhy (140101147), G. Sashidhar (140103064),
Arpit Misra (140101032), Prerna Naresh (140101117), Shweta Jadhav (140103157)