Team Name: Meraki

NMIMS Mumbai
 What is the distribution model of TTC–CPD? Or Discuss about how tea reaches
the consumer from the tea-garden?
8. Wholesale/Retail/Modern/High Tea shops:
Wholesalers purchase from redistribution
stockists and supply further to retail
outlets/modern retail outlets/ kirana stores/
High tea shops for the end consumer
1. Tea Estate
Estates which comprises of
wide variety tea plantations
which are grown at specific
times in a year
2. Tea Factory
The processing of tea leaves
(CTC or orthodox) happens for
further filtering to finer grains
for selling to buyers

7. C&F agent & Redistribution Stockists

C&F agent carries forward the Tea’s in volume for further
distribution. Redistribution stockists keep the stock on Distribution 3. Direct purchase through Tea Factory (Dust Tea): TTC purchases

behalf of the company for further distribution to Model the Tea grains- Dust tea- directly from the Tea factory/Estates

wholesaler’s & retail outlets

6. Packaging: 4. Purchases from Auction (Orthodox Leaf)

Tea’s are packaged either in TTC partakes in Auction by Tea

pouches or carton format Board of India to purchase to
as per the customer needs orthodox Leaf
5. Processing unit for blending
Product development happens at
this stage depending upon the blend
and flavor
 How is customer segmentation done by TTC-CPD?
Customer Segmentation by Product Portfolio
Segmentation Income wise (Dust Tea) Segmentation Geography wise
• Super premium for top upper class • Kerala
• Premium for Bottom Upper Class and Top Middle Class • Tamil Nadu
• Economy for Top and Middle Class • Andhra Pradesh
• Popular for Bottom Middle Class and Top Lower Class • Karnataka
• Discount for Top and bottom lower class • Jharkhand

Customer Segmentation by Brand

Dust Tea
• TTC Garden for Economy Segment
• TTC Darjeeling for Premium Segment
• TTC Rajah for Popular Segment
• TTC Malabar for Discount Segment
Long Tea
• TTC Royal for Exclusive Super Premium Segment
• TTC Supreme for Economy Segment
• TTC Malabar for Discount Segment
Use a suitable framework to fit the strategic options and discuss about the merits
and demerits of each model?

TTC Garden: Increase

Option A Upgrade TTC the blend and re-pack it Option B
Darjeeling’s value in carton format for
proposition by premiumization to
increasing the blend make consumers use
and re-launch under a more of the product
new product name as due to TTC Garden’s
‘Gold’ brand association with
users

Increase the product

Option C portfolio with TTC Diversify into Orthodox Option D
Green Tea due to the Tea leaf variant under
increasing disposable brand TTC Garden and
income and changing cater to the market’s
perception of users in adoption in few states
moving to healthier like Jharkhand
option
Our Recommendation:
TTC Garden: Increase the blend and re-pack it in carton format for premiumization to make consumers use more of the
product due to TTC Garden’s brand association with users .

Here’s Why
Strengths: -
• TTC Garden being the flagship product has the brand resonance with the consumers and act as an entry strategy to less
established markets
• Moving to carton format is cheaper than product development costs-
• Increase in blend, would further add flavor to users

Weakness:-
• The carton pack would alienate the regular TTC Garden Fresh consumers due to the implied inferiority of the regular TTC
Garden Fresh in pouches
• Unsure product acceptance due to low customer feedback

Opportunities:-
• The consumers are slowly moving from a price driven decision to value driven decision making
• Carton format would give the perception of regality in the consumers mind thereby providing a premium feel

Threats:-
• Big players in the market would retaliate by announcing trade and consumer offers
Increase the product portfolio with TTC Green Tea due to the increasing disposable income and changing perception of users in moving to healthier option

Merits:-
• Green Tea market is growing annually at 40% annually
• The profit margin in green tea is manifold in comparison to black tea
• Growth driver for this segment is due to the increasing interest in health and wellness products coupled
with increased disposable income and willingness to spend by the consumers
• Adding green tea to TTC’s product portfolio provides a premium effect for the company brand TTC with
good profit margin and the existing sales and distribution set up is an added advantage

Ansoff Matrix: Demerits:-

Product Development: Introducing • The economy image associated with TTC might hinder entry into this niche segment-
new products to an existing market • Green Tea market contributes to only 0.2% of total tea market in India

Diversify into Orthodox Tea leaf variant and cater to the market’s adoption in few states like Jharkhand
SWOT
Strengths:-
• Consumption of orthodox Tea is on the increase in select few states-
• Brand TTC Garden has a connect with the uses and providing an option of Leaf Tea variant would ensure users try out the new product-
• Existing distribution setups can be utilized in the similar manner for distribution
Weakness:-
• Orthodox Tea’s share by Volume in total tea market is less than 20% overall-
• Would create a niche leaf tea consumer who would not make up for increase in market share
Opportunities:-
• States like Karnataka and Jharkhand make up for hefty share of sales of Leaf tea and hence, can create a separate line of revenue model for TTC
Threats:-
• Would lead to brand dilution of its flagship brand of TTC Garden-
• The major leaf tea brands in this region are lined up with bigger brands like Qutab Minar and BB Rose Label are already present in the market-
• Launching the brand in established markets- Tamil Nadu and Kerala- need an appropriate time for launch
 Upgrade TTC Darjeeling’s value proposition by increasing the blend and re-launch under a new product name as ‘Gold’

Under this model, TTC Darjeeling will be re-branded under the name of ‘Gold’ as it resonates with the
mindset of Indian consumers
Merits:-
• Enables TTC to reach a wider customer audience with the desired value proposition-Gold
resonates with the Indian consumers, and hence the customer tryouts is relatively easier
• Well-defined distribution set up in major markets like Tamil Nadu and Kerala, acceptance of TTC
brand among retailers and higher market control through its sales force

Demerits:-

• High customer loyalty for competing premium segment brand which impedes the acceptance of
the new brand
• The reaction to a brand launch by the bigger established players with deep pockets and with a
significant proportion of loyal customer mass in established markets
What is TTC-CPD trying to achieve by launching TTC Premium brand in Carton format? 

Product Differentiation
The cartons stand out on shelf in the aisle and are also convenient for storage. The tradeoff
was a significantly lowered shelf life and environmentally unfriendly plastic packaging.

Sustainability
From a business perspective, the cartons are more cost effective than the bags, and TTC were able
to pass along some of those savings to the customer. Since the major change is from the package
front, it costs relatively less to implement and no major changes from the product front

Customer Perception
The packaging in carton format provides a snob effect perception of regality in the consumers mind
thereby providing a premium feel. The feedback from market was that the consumers are slowly moving
from a price driven decision to value driven decision making. Also other categories like chocolate and
biscuit are showing an upward mobility of consumers, also termed as “premiumization” of consumers, in
recent years
Market Expansion
The marketing team suggested that the cartons will provide a refreshing feel for the
brand and act as an entry strategy for less established markets in Andhra Pradesh

Pricing
Cost of changing to a carton format is less compared to product development and gives way for
establishing connect with consumers from middle class as well as upper class