Professional Documents
Culture Documents
OF MANAGEMENT
SUMMER PROJECT
TATA COMPANY
(FOOD PRODUCT)
SIDHI JAIN
BBA B
121913602013
A STUDY ON
TATA COMPANY (FOOD CONSUMING PRODUCT)
A SUMMER PROJECT REPORT SUBMITED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE AWARD OF DEGREE OF ‘BACHELORS IN
BUSINESS ADMINISTRATION’
SUBMITTED BY
SIDHI JAIN
121913602013
BBA PROGRAM
GITAM INSTITUTE OF MANAGEMENT
GITAM UNIVERSITY
DECLARATION
I SIDHI JAIN, student of Bachelors of Business Administration,
Gitam Institute of Management, hereby declare that the summer
project, a study on TATA COMPANY (FOOD PRODUCT) is a
genuine work done by me in a partial fulfillment for the
requirement of the degree of Bachelors of Business
Administration.
Date:
CERTIFICATE
This is to certify that the project report titled “A STUDY ON TATA
COMPANY” (FOOD PRODUCT) is an original work carried out by SIDHI
JAIN (121913602013), under my guidance and supervision, in partial
fulfillment for the award of the degree Bachelors of Business Administration
by Gitam institute of Management, Visakhapatnam during the academic
year 2019-2022.
TABLE OF CONTENTS
S.no TOPIC PGS
1. CHAPTER 1 – INTRODUCTION 10
3. OBJECTIVES OF STUDY 11
4. SCOPE OF STUDY 11
NEED/SIGNIFICANCE OF STUDY:
The core of studying Tata Company is to understand the company
internally and externally.
The main motive is to know about the product, targeted audience,
marketing strategies, strengths, distribution channel (track) and
services.
Even to understand the ruling mantra of Tata for long period of
time successfully.
HISTORY
TATA COMPANY is an Indian public multinational company, it combine
of multiple business entities like manufacturing of automobiles,
airplanes and other product but operated under one corporate
group(parent company) its situated in Mumbai, Maharashtra, India.
Tata Company was found in 1868 by JAMSETJI Tata, His full name is
JAMSETJI NUSEERWANJI Tata, he was an Indian pioneer Industrialist,
even established the city of Jamshedpur.
Tata company owners are Tata sons and present its NATARAJAN
CHANDRASEKARAN. Tata company main mission is to improve the
quality of the communities serve globally, through long-term
stakeholders value creation based on leadership with trust.
TATA IS WELL KNOWN TILL NOW? Is due to vital attribute of the Tata
brand has been its pioneering spirit. The Tata’s were first to establish
steel mill in India, power company, five star hospitality in India. Due to
this pioneering nature of the brand it’s well recognized.
The revenue of the company is US$106 billion. They are about 75,000
Number of employees working under this company. About 61% of
share is under the charity by Tata sons. Tata group has helped establish
and finance numerous Research, educational and cultural institution in
India and received the Carnegie Medal of Philanthropy.
After the death of Mr. Tata his elder son Dorabji Tata established the
Tata Iron and steel Company (TISCO) present called as Tata steel. After
that Tata limited opened its first overseas office in London. Even
western India’s first hydro plant was brought to life, giving birth to Tata
power.
In 1938 J.R.D Tata was made chairman of the Tata group. By 1988 Tata
sons had grown to conglomerate of 95 enterprises. This started new
sector improvement like chemicals, cosmetics, marketing, engineering,
and manufacturing, tea. In 1952 J.R.D founded an Airline known as Tata
Air Service (know called as Tata Airlines)
In 1904, his son Sir Dorab Tata took over as chair of the Tata Group.
Under Dorab’s leadership the group quickly diversified, venturing into a
vast array of new industries, including steel (1907), electricity (1910),
education (1911), consumer goods (1917), and aviation (1932).
Four years later Ratan Tata retired and was succeeded by Cyrus Mistry.
Mistry was abruptly dismissed as chairman in October 2016—
reportedly over disagreements with members of the Tata
family regarding business strategy—and Ratan returned to the position
on an interim basis. Ratan’s second stint as chairman ended in January
2017 when Natarajan Chandrasekaran was appointed to the position.
TATA GROUP:
TATA PRICE/PRICING STRATEGY:
Tata group function independently, under its own set or board of
directors. All the companies are unique and distinct from each other.
Therefore, the pricing strategy in its marketing mix followed by all these
are individual company decisions as they are individual industrie facing
different economic factors, capitals, scale, etc.It has different price
points as iits has diversified product portfolio.pricing of product
depends on pricing objectives,the market,the purchasing power of the
customers and the environment condiotins etc.
Tata was always the trend setter in terms of setting price as the best
example is given below :
TATA PLACE:
Tata group is spread in more than eighty-five countries in more than 6
continents. The group has grown to huge scale globally. Tata group is
even following current trend to make activities accessible through
online platform. It provides service on mobile phone and hold a good
presence of the internet.
Tata is one of the most well-known brands today and a lot its success
can be attributed to the fact that it is a subsidiary of the powerful and
trusted Tata group. It has a very aggressive promotional strategy with a
multi-channel approach spread across both older channels like
Television, newspapers, radio, etc. and also with innovative and newer
campaigns on the ground and online via their social media handles like
Face book, Twitter, etc. It is known for its great ad campaigns and social
campaigns some of them are – ‘Jaago re’, ‘Power of 49’, ‘Gaon chalo’,
etc. which brilliantly portrays both the ads and issues faced by the
common public in their lives. Blogging about product, its benefits, Their
products is also used by Tata product. Promotional offers with free gifts
and offers are used to incentivize their customers. They maintain them
self upto the trend and keep a keen watch on the trending way of
advertisement and always follow the market customer need in every
way possible.
CHAPTER 3
THEORETICAL FRAMEWORK
(TOPIC RELEATED)
TATA FOOD PRODUCTS
1.TATA TEA:
Tata began its journey when the packaged tea market in India was
dominated by a large player with over 70% of the market share. Today
Tata tea goes beyond being just a cup of tea- it is a fresh start a new
day for millions of Indians.
This packaged tea product now offers a wide range of flavored variants
to add to your taste and stamina. Over 25 years, it has been providing
its manifold health benefits to energize you instantly.
TYPES OF TEA:
Agni is the second largest brand in Tata Tea’s extensive portfolio,with a
presence across more than 22 indians states.Agni was first launched as
a product targeted at price-sensitive consumers,especially those who
aspired to shift from loose to branded tea.later,Agni reinvented itself by
migrating to the Tata tea umbrella,in order to leverage the brand’s
equity and resources. Tats Tea Agni gives cosumers a strong tea with
10% extra-strong leaves at best price.
Tata Tea kanan devan is second most love tea brand in kerala and one
of the largest brand in karnataka in dust tea segment. It was launched
in 1984 as a packet tea brand in kerala. It subsequently extended in
Goa,karnataka and Tamil nadu.
In the place where the valley meets the mountain Tata Tea gold is
born.Tea that combines rich fullness of fine valley grown teas from
Assam with the irresistiable aroma.Tata tea has been strenthening its
essence in its unique style.its mostly used in assam.
Tata tea premium is the flagship brand of Tata consumer product and
one of the most popular tea brand.In 1985,Tata tea brand premium
brought tea revolution in India by bringing tea frech directly to
consumer in poly packs.Tata Tea brand was renamed as Tata tea
premium in 2003.
Tata tea gemini has been the undisputed market leader in Andra
pradesh and Telangana combine.Launched in 1978.The signature bright
brown colour of tea symbolizes the balance of taste with the right
amount of strenght.The brand comes in a packet local kalamkari art
form that are a symbol of pride of the telengana religion.
Tata tea tulsi green is a uniquely crafted product that comprises of 65%
real tulsi leaves(mix of rama,krishna and vana leaves) and 345% green
tea.This product packs the age-old tradition of consuming tulsi leaves to
improve overall health and immunity in tea bags or loose tea format.
2.COFFEE
Tata coffee is one of the world’s largest integrated coffee cultivated and
processing companies,with a legacy that dates back to 1922. Plants of
Toopran ( telengana) , Theni (Tamil nadu). Over 19 estates are spread
over 8000 hectares in the lush western ghats.
TATA Coffee is the instant coffee product to refresh your mind and add
to your energy for hard work. It is the amazing blend of premium
quality coffee powder and coffee seeds which are typically handpicked
and home grown.
Eight O'Clock Coffee is for those who put coffee first. America’s original
gourmet coffee, with a legacy of 160 years, gives consumers high
quality 100% Arabica coffee. It is the fifth largest coffee brand in the
USA, in terms of volume, and has the highest loyalty and repeat rates
among bagged coffee competitors. Eight O'Clock Coffee joined the Tata
Consumer Products family in 2006, and since then has enjoyed
significant brand revival. Eight O’Clock Coffee is headquartered in
Montvale, New Jersey, and roasted and packaged in Landover,
Maryland.
In November 2015, Tata Consumer Products announced its entry into
the branded instant coffee business in India under the brand name Tata
Coffee Grand. After leading the Indian tea market under its iconic Tata
Tea brand, the company took the strategic step to leverage its product,
marketing and retail expertise to enter the branded coffee space in
India.
Tata Coffee Grand leverages the deep heritage of Tata in coffee and has
created a product that is a first of its kind innovative offering in the
Indian market. The product is a blend of the finest coffee powder and
Flavour locked decoction crystals which gives consumers a ‘best in
class’ taste experience in the instant coffee category. Tata Coffee Grand
is an intensely rich, fresh and aromatic coffee.
The portfolio has also expanded to Roast & Ground (Filter coffee) with a
widespread presence across all the southern states.
Sonnets by Tata Coffee brings the best of our farms to your cup.
Handpicked from high quality Arabica beans, every coffee is processed
uniquely and roasted to perfection for a unique coffee experience.
TATA WATER PLUS: Tata Water Plus has been specially created for you
by global experts. It can be consumed as part of an active lifestyle.
Himalayan, India's first natural mineral water brand, draws its unique
benefits from its source located at the foothills of the Shivalik ranges of
the Himalayas. The water collects a unique natural mineral composition
with a mildly alkaline pH very similar to the human body. Pristine
natural mineral water from the Himalayas, bottled at source.
Through products that aim to improve the nation's health and through
products that aim to improve the nation's health and through its social
initiatives, Tata Salt has lived up to its promise of 'Desh Ki Sehat, Desh
Ka Namak'
TATA SAMPANN:
Tata Sampann believes that health and taste are qualities that go hand
in hand. Food that is natural with wholesome nutrition retained is also
more likely to taste better and this is what keeps our consumers coming
back – it is this assured delivery of great nutrition with great taste that
inspires our brand signature: Sarvgunn Sampann (endowed with every
good quality).
TATA SOULFULL:
Tata Soulfull, the brand owned by our subsidiary Tata Consumer
Soulfull, was launched in 2013. The brand operates in the Health &
Wellness focused food segment with a portfolio of millet-based
products for children and adults. Soulfull is one of the fastest growing
brands in India’s healthy packaged foods market. With rich expertise in
ancient millets like Ragi (finger millet), the brand has an innovative
portfolio of products ranging from cereals, healthy snacks and muesli to
plant-based protein drinks.
Tata soulfull contains Ragi bites, fruit nuts and seeds, smootie of
different flavours like chocolate, vanilla, strawberry.
CHAPTER 4
ANALYSIS OF STUDY
Financial Analysis:
The financial analysis of Tata from the year 2019 – 2020.
The turnover for the year 2019-20 was $106 billion ( INR 7.5 trillion)
and there are about 750,000 number of employees.
Tata company is almost debt free.
Company has delivered good profit growth of 151.35% CAGR over
last 5 years.
Company has been maintaining a healthy dividend payout of
45.45%.
Debtor days have improved from 31.05 to 23.95 days.
The above table shows the profit before tax and it is also increased year
to year from year 2010 to 2021 it have changed to 3 gigit figure to 4
digit and even after taxation of 24% to 43% its always in positive side of
the table only in 2016 the net profit went on the negitive side of the
profit and loss table
So, according to my analysis of profit and loss table I figure it out there
main aim is to create a portfolio of brands that are sustainable by
quality. In spite of a global presence, the brands are distributed
differently depending on the location. As Tata tea is far better known in
India and a powerful brand there, it is pushed on this market and
countries with a large Indian population. Therefore, Tetley is the
company's global face and the largest markets focus on the Tetley
brand. Where both brands co-exist in one market, Tetley is positioned
as the premium tea.
In financial year 2020, Tata Consumer Products Limited witnessed its
highest revenue, which stood at over 58 billion Indian rupees. Tata
Consumer Products Limited had a notable brand presence in more than
40 countries and sold more than 2,000 different products across the
tea, coffee, and water segments. The increase in revenue was driven by
improvements in the domestic tea portfolio across all major brands.
STRENGTHS:
Superb Performance in New Markets – Tata has built expertise at
entering new markets and making success of them Strong distribution
network – Over the years Tata has built a reliable distribution network
that can reach majority of its potential market.
Good Returns on Capital Expenditure – Tata is relatively successful
at execution of new projects and generated good returns on capital
expenditure by building new revenue streams.
Strong dealer community – It has built a culture among distributor
& dealers where the dealers not only promote company’s products but
also invest in training the sales team to explain to the customer how
he/she can extract the maximum benefits out of the products.
Reliable suppliers – It has a strong base of reliable supplier of raw
material thus enabling the company to overcome any supply chain
bottlenecks.
Highly skilled workforce through successful training and learning
programs. Tata is investing huge resources in training and development
of its employees resulting in a workforce that is not only highly skilled
but also motivated to achieve more.
Successful track record of developing new products
Strong Brand Portfolio – Over the years Tata has invested in
building a strong brand portfolio.
WEAKNESS:
Organization structure is only compatible with present business
model thus limiting expansion in adjacent product segments.
The marketing of the products left a lot to be desired. Even
though the product is a success in terms of sale but its positioning and
unique selling proposition is not clearly defined which can lead to the
attacks in this segment from the competitors.
Not very good at product demand forecasting leading to higher
rate of missed opportunities compare to its competitors. Tata is not
very good at demand forecasting thus end up keeping higher inventory
both in-house and in channel.
There are gaps in the product range sold by the company. This
lack of choice can give a new competitor a foothold in the market.
Financial planning is not done properly and efficiently. The current
asset ratio and liquid asset ratios suggest that the company can use the
cash more efficiently than what it is doing at present.
The profitability ratio and Net Contribution % of Tata are below
the industry average.
OPPORTUNITIES:
The market development will lead to dilution of competitor’s
advantage and enable Tata to increase its competitiveness compare to
the other competitors.
New trends in the consumer behavior can open up new market
for the Tata. It provides a great opportunity for the organization to
build new revenue streams and diversify into new product categories
too.
Organization’s core competencies can be a success in similar
other products field
The new taxation policy can significantly impact the way of doing
business and can open new opportunity for established players such as
Tata to increase its profitability.
Economic uptick and increase in customer spending, after years of
recession and slow growth rate in the industry, is an opportunity for
Tata to capture new customers and increase its market share.
New environmental policies – The new opportunities will create a
level playing field for all the players in the industry. It represent a great
opportunity for Tata to drive home its advantage in new technology
and gain market share in the new product category.
THREATS:
New technologies developed by the competitor or market
disruptor could be a serious threat to the industry in medium to long
term future.
Increasing trend toward isolationism in the American economy
can lead to similar reaction from other government thus negatively
impacting the international sales.
The demand of the highly profitable products is seasonal in
nature and any unlikely event during the peak season may impact the
profitability of the company in short to medium term.
As the company is operating in numerous countries it is exposed
to currency fluctuations especially given the volatile political climate in
number of markets across the world.
Liability laws in different countries are different and Tata may be
exposed to various liability claims given change in policies in those
markets.
Intense competition – Stable profitability has increased the
number of players in the industry over last two years which has put
downward pressure on not only profitability but also on overall sales.
Rising pay level especially movements such as $15 an hour and
increasing prices in the China can lead to serious pressure on
profitability of Tata
CHAPTER 5
FINDINGS:
On basis of research I came to know that Tata company is long runner
company. It is also recognized in the world.
Tata is self made company and have kept itself update to the trend and
demands of public and also manage to sustain in the world of
competitors and have long run to go by its present way of ruling
market.
Tata food products portfolio under Tea, coffee, drinking water, Tata
salt, Masala have attracted the customer and the response are
encouraging and positive response.
It is also building a great reputation from a long ago in the market and
in customers point of view. It is implementing strategy is to build a
growth of the brand in the future and to make the company long run
for future.
The brand have established itself long ago but to sustain in the market
its taking all the pros and cons in consideration and taking the decision
perfectly to maintain a long run.
IMPLICATIONS:
In the rural area, there is a presence of spurious products, and
due to variation in literacy and product awareness level, this
spurious products has got benefits of getting place in to the
regular market.
Company should keep in mind the rural consumer behavior of less
brand loyalty
So company has to take action against this and make the rural
people aware about the brand and brand should create some
uniqueness in their product, so one can easily recognized the real
brand compare to the spurious product.
social media is major marketing hub so appointing a social media
marketer for updating information related to company for
marketing and advertising tool for company.
Need to find the trendy and attractive advertisement in
newsapapers,social media and tv ads.
Company should try to offer small packaging for the products
wherever it is possible, because the rural customers prefer
medium size products while making purchase decision.
fitness lover people like healthy product and present people are
fitness lover so healthy product are major attraction of people.
CONCLUSION:
They have a wide range and diverse set of competitors in
consumer goods businesses.
Competition is a normal in business
Company is ruling market from a very long period. Tata have
launched a varity of brands in many streams like home products,
steel, motors.
Tata has built expertise at entering new markets and making
success of them Strong distribution network – Over the years Tata
has built a reliable distribution network that can reach majority of
its potential market
Company is relatively successful at execution of new projects and
generated good returns on capital expenditure by building new
revenue streams.
It have been investing huge resources in training and
development of its employees resulting in a workforce that is not
only highly skilled but also motivated to achieve more.
BIBLOGRAPHY:
https://www.screener.in/company/TATACONSUM/consolidated
https://www.projects4mba.com/swot-analysis-of-tata-
motors/2056/
https://iide.co/case-studies/marketing-strategy-of-tata-group/
https://www.mbaskool.com/marketing-mix/products/16981-tata-
motors.html
https://www.britannica.com/topic/Tata-Group#:~:text=The
%20Tata%20Group%20was%20founded,which%20opened%20the
%20following%20year.
https://www.moneycontrol.com/india/stockpricequote/auto-
lcvshcvs/tatamotors/TM03
https://www.tata.com/business/tata-consumer#:~:text=Tata
%20Consumer%20Products%20is%20a,Tata%20group%20under
%20one%20umbrella.&text=Our%20brands%20include%20Tata
%20Tea,Tata%20Coffee%20Grand%20and%20Joekels.
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