A

RESEARCH PROJECT REPORT

ON
“Consumer Perception Toward “TATA TEA”

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE DEGREE OF
Post Graduate Diploma in Management

SUBMITTED TO SUBMITTED BY:

Dr. Suman Kumar Dawn & Sujata Sharma
Roll no: 18028
Prof. Sanjana Mondal Batch: 2018-20

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TABLE OF CONTENT

SLN. TOPIC PAGE NO.

1 INTRODUCTION 6

2 ABOUT THE COMPANY 7-10

3 MARKETING STRATEGY 11-12

4 PRICE LIST OF TATA TEA PRODUCTS 13-15

5 PRODUCTS AND BRAND 16-17

6 BRAND PREFERENCE OF TEA AMONG 18

CONSUMERS
7 OBJECTIVE 19

8 RESEARCH AND METHODOLOGY 20

9 ANALYSIS AND INTERPRETATIONS 21-26

10 FINDINGS 27

11 SUGGESTIONS 28

12 CONCLUSION 29

13 BIBLIOGRAPHY 30

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 STUDENT UNDERTAKING

This is to certify that I have completed the Minor Project titled “Consumer Perception
Toward “TATA TEA “under the guidance of Professor Suman Kumar Dawn in partial
fulfillment for the award of the degree of post graduate diploma in management This is an
original piece of work and I have not submitted it earlier elsewhere.

Date: _____________________
Place: Calcutta Business School, Kolkata (Signature of student)
Sujata Sharma
(Name of the student)
PGDM 2017-19/ Roll No: 17021

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 CERTIFICATE FROM THE GUIDE

This is to certify that the minor project titled “Consumer Perception Toward TATA TEA”
is an academic work done by SUJATA SHARMA submitted in partial fulfilment for the award of
the degree of post graduate diploma in management. To the best of my knowledge and belief
the data and information presented by her in the project has not been submitted earlier.

_________________________
NAME & SIGN OF FACULTY

_________________________
SIGNATURE OF STUDENT
ROLL NO. ______________
DATE:

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 Acknowledgement

The satisfaction and euphoria that accompany the successful completion of any task is
incomplete without the mention of people who made it possible. So I take this as a great
opportunity to pen down a few lines about the people to whom my acknowledgement is due.
It is with the deepest sense of gratitude that I wish to place on record my sincere thanks to, my
project guide for providing me inspiration, encouragement, guidance, help and valuable
suggestions throughout the project.
I would also like to thank my entire respondent for giving me their valuable time and
information.

Sujata Sharma
(Student of Finance and Marketing specialization)
Calcutta Business School
PGDM Batch 2018-20

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Page 6
 Introduction

Tata Tea Limited, also known as Tata-Tetley, is the world’s second largest manufacturer and
distributor of tea. Tata tea is owned by India’s Tata Group, the Tata Tea Limited. Tata tea produces
major brands of tea such as Tata Tea, Tetley, Good Earth Teas and JEM A. It is the largest tea
brand in India, and has the largest tea company in United Kingdom and Canada and the second
largest in the United States.

Tata Tea manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten tea
blending and packaging factories and employs around 59,000 people. The company owns 51 tea
estates in India and Sri Lanka, especially in Assam, West Bengal in eastern India and Kerala in the
south. The company is the largest manufacturer of Assam tea and Darjeeling tea and the second-
largest manufacturer of Ceylon tea. Set up in 1964 as a joint venture with UK based James Finlay
and Company to develop value-added tea. The Tata Tea Group has now product and brand
presence in 40 countries. Tata Tea owns five brands in India - Tata Tea, Tetley, Kannan Devan,
Chakra Gold and Gemini.

As part of the rehabilitation programme, a strawberry preserve-making unit is maintained by the

centre where the children are not only involved in the collection, cleaning and making of
strawberry preserve but are also encouraged to grow strawberries, which are then bought by the
centre. This becomes an additional source of income for the children. Tata Tea Limited is a major
grower, manufacturer and exporter of spices from India. Tata Spices Centre was set up in Cochin,
in 1990 and consists of a modern pepper processing facility for Whole Black and White Pepper.
The processing facility at Cochin has a capacity of about 2500 tons per annum. The process line is
fully mechanised and human handling to ensure that strict standards of hygiene are followed as
required by a product of international quality.

The product available in Tata tea industry are Gemini Tea launched in 1980, Kannan Devan Tea
launched in 1985, Chakra Gold launched in 1992, Agni Tea launched in 1998, Tata Tea
Temptation launched in 2001, Tata Tea Gold launched in 2003, Tetley Tea launched in 2004.

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 About The Company

Via subsidiary companies, Tata Tea manufactures 70 million kilograms of tea in India, controls 54
tea estates, ten tea blending and packaging factories and employs around 59,000 people. The
company owns 51 tea estates in India and Sri Lanka, especially in Assam, West Bengal in eastern
India and Kerala in the south. The company is the largest manufacturer of Assam tea and
Darjeeling tea and the second-largest manufacturer of Ceylon tea.

Set up in 1964 as a joint venture with UK based James Finlay and Company to develop value-
added tea, the Tata Tea Group has now product and brand presence in 40 countries. It is one of
India’s first multinational companies. The operations of Tata Tea and its subsidiaries focus on
branded product offerings in tea, but with a significant presence in plantation activity in India and
Sri Lanka.

Tea Products:

Gemini Tea launched in 1980

The brand Gemini is a residue tea, sold in the conditions of Andhra Pradesh, Madhya Pradesh,
Chhattisgarh, Tamil Nadu and Karnataka. In any case, the focal point of this brand is to be a solid
provincial player in the territory of Andhra Pradesh. This brand has a high segment of Assam tea,
which loans to its novel quality, taste and shading. Gemini is the market head in its value portion
and has been re-arranged twice since 1996. The brand has been effectively situated as "a solid tea
for solid family relations".

Kannan Devan Tea launched in 1985

The Kannan Devan Tea story starts in the late nineteenth century when the primary European
pilgrims went to the Kannan Devan Hills in the province of Travancore. Overcoming an
unfriendly territory, the early grower began developing Tea shrubs in the ripe woods place where

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there is the Western Ghats. The tea they delivered was sent out to Europe and different nations all
through the world.

Chakra Gold launched in 1992

Chakra Gold Tea is a mix of astounding Assam CTC Dust teas. Chakra Gold is a solid No 2 Brand
in the excellent and extravagant Premium Dust Tea Market of South India. The buyer
correspondence of the Brand trotted on the Golden Moments in the Consumers life has been
generally welcomed, and a similar topic of Golden touch and Golden lady have propelled a large
number of Consumers crosswise over south India to be the faithful purchasers of Chakra Gold,
Golden Taste. Shopper advancements have been a vital piece of the Brand correspondence.

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Agni Tea launched in 1998

A Migration of Agni under the Tata Tea umbrella is an ambitious brand consolidation initiative,
whereby TATA TEA Agni, became its new offering for the economy segment. By bringing the
popular economy brand Agni under the stable TATA TEA, the flagship brand, the company intends
to further consolidate its presence in the large and promising economy segment by leveraging the
tremendous equity of the flagship brand and allowing consumers access to the popular TATA TEA
brand. Tata Tea Agni has been developed through painstaking consumer insight mining and
satisfies the economy consumers need for a differentiated product at an affordable price.

Tata Tea Temptation launched in 2001

Tata Tea is now offering consumers great value with the launch of Tata Tea Temptation – a
premium, orthodox leaf tea. Temptation will offer tea connoisseurs a ‘Rare Flavour of Assam Leaf’
that delivers a unique taste and aroma. Tata Tea Temptation is the first among many new products
to come from Tata Tea Limited and can be attributed to the company’s sharply focussed
philosophy - "the customer is sovereign".

Tata Tea Gold launched in 2003

The launch of Tata Tea GOLD, tea that has aroma coupled with a refreshing taste. The product,
introduced as an upgraded variant of Tata Tea brand, has a blend of 85% CTC and 15% long leaf
tea. This is a blend of tea, which is visually unique, and a superior taste. Television commercial is
on air on national media. The commercial has been designed keeping in mind the brand personality
and has "Na kahonge toh pachtaonge" as its sign-off line.

Tetley Tea launched in 2004

The Tetley brand was restaged in the Indian market in December 2004. The highlight of the restage
was the launch of flavoured tea bags in four exciting flavours –Masala, Ginger, Lemon and Earl
Grey. Flavoured tea bags are available in packs of 12 tea bags, at an attractive put down price of
Rs. 20 per carton. The Tetley flavoured tea bag range has been developed in-house, keeping Indian

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consumer habits in mind. Tetley is the first brand to launch Masala and Ginger tea bags – two very
popular Indian flavours. Keeping in mind that most Indians like milk in their tea, Tetley tea bags
were customized to allow this, yet ensure that the consumer got a strong cup of tea.

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 Marketing Strategy:

Regarding Indian markets, important to point out is that once the customer decides to consume a
certain brand he or she will be very loyal to the product and it will therefore be hard to convince
him or her to buy another brand. The brand Tata Tea is to introduce innovative products in an
existing market and focus on Market Development.

Existing Market New market

Existing Market Product

Products

Penetration Development
New

Products Market
Diversification

Development

Producing product in India is less expensive as India is second largest producer of tea in world tea
market and also labour is cheap here.

Marketing Mix of Tata Tea

Product

Tata Tea will be a high quality product offered. Contents of the Tata Tea are:
40 bags, 80 bags, 150 bags, 250 bags (Family pack), the amount of bags refers to different target
groups. 40 bags for singles, 80 bags for couples, 150 bags and 250 bags are Family Packs. (250
bags is the most famous)

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Packaging:

Customer perception of a package creates brand equity and purchaser loyalty. The image presented
by the package largely determines success or failure of a tea line. Appearance stimulates memories
and emotions inside the purchaser, who oftentimes is female, often buying for an entire family.
Colour, image and slogan all combine to facilitate customer allegiance.

Place

High quality for a reasonable price can be bought from Assam & Darjeeling and will then be
blended and packed. The final product will be distributed to Retailers such as Supermarkets and
main tea shops so the end consumer has easy access to it.

Price

Reasons for pricing policy: Tata Tea is competing against the main players on the Indian Tea
Market and by setting a higher price but offering more value for it. Various promotion activities,
giveaways and advertising on radio and television will help to establish the brand and gain market
shares.

Promotion

The focus is the Indians like to purchase bargains or buy products that offer free gifts. Other
brands do not offer as many promotion and free gifts. This is why it is important to focus
especially on the Promotion activities of the marketing mix. Need to set up original events in order
to attract new customers and consumers of other tea brands.

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 Price List of Tata Tea Products

Name of the Product Size of package Price(in Rs)

1 Tata Tea AGNI 1Kg 180

Tata Tea AGNI 250gms 45

2 Tata Tea GOLD 1Kg 293

Tata Tea GOLD 250gms 76

Tata Tea GOLD 500gms 158

3 Tata Tea LIFE 250gms 56

4 Tata Tea PREMIUM 1Kg 277

Tata Tea PREMIUM 500gms 138

Tata Tea PREMIUM 250gms 72

5 Tetley Tea Bags 100bags 85

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Suggestions as a Marketing Manager

Innovative Marketing Strategy

The Tea sector is beset with many chronic problems. A large number of people are dependent on it
and there is need for a significant proportion of them to shift into manufacturing and services, this
is the area of focus. There is a need of putting stress in promoting a healthy business climate
globally, and contributing positively in every community, both personally and organizationally.
The company can make an effort to find out what our customers desire from us. The idea is to
value most is to take action based on an understanding of the views of the customers.

Quality Control

Quality is an indispensable principle of our Group. Complete quality assurance system so that it is
reflected in the values, processes, and a quality assurance evaluation has to be conducted at every
phase of operations. The company should focus towards providing quality products to its
customers which can only be achieved if we maintain quality at every level of production.

Aggressive Marketing

The Company should adapt an aggressive marketing policy to sell its products. In aggressive
marketing the company should sell more products to its existing customers and find out new
customers and win the confidence of its consumers by providing quality products at reasonable
prices.

Customer’s Relation

The Company should maintain a cordial customer relation. Customers are best critics. A time
bound system should be in place to interact with valued Customers and it also encourages regular
feedback on quality deliveries. All customer complaints should be studied, analysed, complaints
Docketed; a detailed root because analysis should be done after which the complaint can be closed.
This ensures that the customers remain loyal and all their complaints are addressed and acted
upon. The company should value to take action based on an understanding of the views of the
customers.

Long Term Image Building

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The Company should focus on long term goal of permanent image building. It should aim at
confidence build up with its customers and serve them better. The Company should strive to share
corporate social responsibility policies with suppliers, including environmentally - beneficial
activities throughout the supply chain.

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 Products and Brands

While Tata Tea is the second largest tea company in India after Hindustan Lever, it owns the single
largest tea brand in the country, Tata Tea Premium. The company has five major brands in the
Indian market catering to all major consumer segments for tea. Under the Tata Tea portfolio, three
brands cater to the premium, popular and economy segment – Tata Tea Gold, Tata Tea Premium
and Tata 151 Tea Agni respectively. In addition, Tata Tea in India has three very strong regional
brands in the four Southern states, which are either number one or number two in their respective
geographies. These are Tetley, Kannan Devan, Chakra Gold and Gemini. Tetley in India, though a
niche brand, is presented as the new face of tea – innovation brand. The Tata Tea brand leads
market share in terms of value and volume in India. Tetley acquired in 2000 is the market leader in
the UK and Canada with 26 per cent and 40 per cent market share respectively by value. Tetley has
also launched iced tea under Tea of Life brand in UK, which is making good progress. Tetley is
establishing a presence in the ready-to-drink segment, for which Tetley Ice T has been launched in
UK and Australia. Chayya, a recently launched Chai Latte brand in UK, is the first of its kind and
is showing great promise. Besides Tetley also boasts of a wide range of fruit and herbals and
speciality tea. In order to build its business in these high value segments, packaging innovations
such as the “stay fresh” flip top carton is being introduced. Tata Coffee has the distinction of
having six of the world’s ten best coffees in its line-up. With the purchase of 8 O’clock it now
owns a strong brand in the US.

Over time, the group has grown from being a dominant plantation player into a branded
international tea business. In line with this change of strategic focus, 17 of the 25 estates in South
India were transferred to a new entity Kannan Devan Hills Plantation Company Private Limited
(KDHP). KDPH is principally owned by the 13,000 employees of these plantations, with Tata Tea
having 18.2 per cent interest in the new enterprise. The ground breaking initiative, which delivers
the company’s commitment to doing business in a sustainable manner, resulted in a one off profit
this year and will deliver recurring costs benefit in future. Tata Tea has lowered major costs
through stringent cost control and quality improvement measures, supported ably by its R&D
centres. These initiatives have helped the company improve its operational performance. Financial

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restructuring has also been the thrust for the company in the past. The acquisition of Tetley was a
highly leveraged deal that increased the gearing of the company to 2.2 in the year 2002. Thereafter
company has taken several steps to successfully replace its high-cost debt to reduce its gearing to
1.1 in the year 2005.These initiatives have allowed significant improvement in the Tetley Group's
cash flows that will enable the company to invest behind its brand globally, launch new products
and consolidate its market shares in key geographies.

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 BRAND PREFERENCE OF TEA AMONG
CONSUMERS

Abstract

Tea is the common scientific name of the herb Camellia Sinensis. It has been cultivated in
China and the Asian region for thousands of years, and today, tea is the second most popular
drinks, served both hot and cold. Many health benefits are said to be gained by consuming tea.
The health benefits include weight loss, curing diabetes, cancer, asthma and different allergies

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and affections, such as flews and other viruses. Tea has gained popularity with all age groups
and the market is flooded with numerous brands. Hence, this paper aims to identify the brand
preference of tea among customers. The paper also examines the factors influencing consumers
in preferring various brands of tea. The data was collected from Jharkhand & West Bengal,
India among 75 survey respondents.

Objectives

1. To find out the brand preference for tea in Jharkhand & West Bengal.
2. To study the factors influencing brand preference for tea.
3. To identify the source of awareness for tea.

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 Research Methodology

Primary data has been collected for the research study in Jharkhand & West Bengal, India. The
research design involves descriptive style. Consumers of various age groups have been
conducted with the research survey. The sample size was 75 and the sampling technique used is
random sampling. The research instrument used was questionnaire and it comprises both open
and close-ended questions. Personal interview has been conducted among the target
respondents.

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Hypotheses

1. There exists no relationship between age and brand of tea

2. There exists no relationship between income and brand of tea

Limitations

Chances of respondents' bias are involved in the research. Limited number of respondents has
been chosen due to time constraint and this could affect the accuracy of result to certain extent.

Analysis and Interpretations

Table 1. Classification of tea users based on gender

Gender No. of Respondent % of respondent

Male 50 66.67

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Female 25 33.33

Total 75 100

From the above table it can be inferred that more than 60 percent of the respondents who
consume tea were 'males'.

Source: survey data

Table 2. Factor influencing brand Preference

Factors No. of respondents % of respondents

Taste 30 40
Quality 25 33
Low Price 10 13
Gift 2 3

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 Fragrance 8 11
Total 75 100

It can be inferred from the above table that, taste appears to be the supreme factor influencing
the consumers’ preference for tea brand followed by quality.

Source: survey data

Table 3. Source of Awareness

Source of awareness No. of respondent % of respondent

Friends relatives 15 20

Family Members 19 25

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 Point of purchase 7 10

Television 34 45

Total 75 100

From the above table it can be inferred that 45% percent of the respondents are aware of the brand
through television, as it plays an important role in creating awareness towards various brands.

Source: survey data

Table 4. Consumer intention towards replacing their existing brand of tea.

Source of awareness No. of respondents % of respondents

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 To replace 5 6.67

Not to replace 70 93.33

Total 75 100

It can be inferred from the above table that more than 90 percent of the respondents are not
interested in replacing their existing brand of tea. This shows their 'brand loyalty' towards existing
brand of tea.

Source: survey data

Table 5. Classification according to age

Age No. of respondents % of respondents

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 Less than 25 15 20

25-35 30 40

35-45 20 27

More than 45 10 13

Total

From the above table it can be inferred that 40%of the respondents belong to the age group of '25 –
35' and 27 percent of them belong to the age group of 35-45.

Testing of hypotheses:
There exists no relationship between age and choice of brand of tea.
The calculated chi-square value 17.7122 at 15 degree of freedom (24.996) showed that there was
no significant relationship between age and brand of tea.

Source; survey data

Table 6. Preferred Brand

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Brand No. of Respondents

Tata Tea 45

Lipton Tea 5

Wagh Bakri Tea 15

Brook Bond Tea 10

Total 75

From the above table it can inferred that 45% of the respondent’s preference is Tata Tea which is
highest among the rest 3 brand. The respondents for Wagh Bakri Tea are 15% which is the second
highest after the Tata Tea. 10% prefer Brook Bond Tea. Only 5% of the respondents prefer Lipton
Tea which is the lowest ranked amongst the 4. Most people prefer Tata Tea as they are Loyal
Customer of the Brand whereas some prefer it as change of taste and some find it potential
product.

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Source: survey data

FINDINGS

It has been found out that,

1. Taste appears to be the supreme factor influencing the consumers’ preference for tea
followed by quality.
2. Television plays an important role in creating awareness towards various brands.
3. Majority of the respondents are loyal towards their existing brand.
4. Majority of the respondents prefer Tata Tea brand followed by three other brand.

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 SUGGESTIONS

1. In order to capture a large share in the market the brand of tea could be manufactured with
more taste and good colour, and also in an attractive packaging.

2. The companies have to give importance for television as most of the consumers were
remembering the advertisement.

3. In order to attract the consumers useful gift articles, free samples should be used in the
product.

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 CONCLUSION

Manufacturer must pay attention to the quality; since customers have a wide range of brands to
select from otherwise the business would be ruined if quality is not maintained. Majority of the
consumers are influenced by television advertisement; producers has to pay more attention to
this aspect.

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 BIBLIOGRAPHY

www.bestteabrand.com
www.jayateas.com
www.teauction.com
www.tatatea.com
www.researchgate.com
www.economicstimes.com

Survey Form prepared with the help of www.googleform.com

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