tata tea: market survey and positioning
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PACKAGED TEA LEAVES
SECTION: BGROUP: 8
CHITTRESH DHAWANDEEP DAGAHIMANSHU ARORANIKHIL SINGHVISWATI SINGHAL
04/11/20232
COMPANY PROFILE
• US$1.4 bn turnover
• TGB is the second largest Tea company in the world
• 250 million servings of the brands are consumed every day around the world
• Over 3,000 employees worldwide
• Three sales and marketing regions across the globe
• Significant brand presence in over 40 countries
04/11/20233
BRAND WISE SALES BREAK UP
Brands %
Tetley 39
Tata Tea 29
Eight o’Clock 17
Others 15
Source: Tata Global Beverages Company Website
04/11/20234
PRODUCT SEGMENTATION
Geographic
Semi-urban
City• Tier 1 and
Tier 2
Demographic
Income Group• Middle class • (18000 –
125000 pm)
Age• 20-40 years
Behavioral
Decision Roles• Buyer &
Decider : Housewife
04/11/20235
PORTER’S FIVE FORCES
Threat of intense
segment rivalry• Taj Mahal• Red Label
Special• Unbranded Tea
Threat of supplier’s growing bargaining power
• Large number of producers
• Low switching costs
Threat of buyer’s growing
bargaining power• Other options
available• Product
differentiation• Large number of
consumers
Threat of new entrants
• FDI• Untapped rural
markets
Threat of substitutable
products• Coffee• Aerated drinks• Energy drinks
04/11/20236
SEGMENTATION : INCOME LEVELTa
ta t
ea G
old • Caters to the
premium economy segment
• Aroma coupled with a refreshing taste
• Blend of 85% CTC and 15% long leaf tea
Tata
Tea P
rem
ium • Flagship brand
caters to the popular segment
• Brand promises to give “asli taazgi” (Real freshness)
Tata
Tea A
gni • Offering for the
economy segment
• Stylish superior quality packaging; unmatched in this segment
04/11/20237
SEGMENTATION : REGION WISEK
anan D
evan • Principal
Market : Tamil Nadu, Kerela, Karnataka, Goa
• Specifically sourced from the Kanan Devan Hills
• Characterized by its unique taste preferred throughout South India
Ch
akr
a G
old • High quality
Assam CTC Dust teas
• Brand in the high quality & high priced Premium Dust tea Market of South India
• Theme of Golden touch and Golden woman inspired millions of Consumers across south India
Gem
ini • Principal
market: Andhra Pradesh, Madhya Pradesh, Chattisgarh, Tamil Nadu and Karnataka
• Focus to be a strong regional player in Andhra Pradesh
• Positioned as "a strong tea for strong family relations"
04/11/20238
TARGET MARKET• Indian middle class and upper middle class which accounts for
nearly 300 million people
• Targets the youth by embracing them with social awakening messages• ‘Jaago Re’ campaign
• Targets women in a view to empower them socially
•Calls out to housewives since they are the influencers and deciders in the buying process
• Power of 49 campaign
04/11/20239
Red Label Special
Taj Mahal
Organic Tea
Darjeeling Tea
Black TeaTea Bags
Small tea leaves
GreenTea
Coffee
Soft Drinks
Juices
Energy Drinks
Flavored Milk
Buttermilk
Squash
Protein Powder
Red Tea
SoupsMix
BiscuitsNamkeen
Bread, Butter, Cheese
Chocolates
Maggi Noodles
Kitchen Towels
Utensils
JamLooseTea
Assam tea
Lemon Tea
Product Form
Product Category
Generic
Budget
LEVEL OF COMPETITION
04/11/202310
COMPETITOR ANALYSIS: MARKET SHARE
22%
20%
8%
49%
Hindustal Unilever LtdTata TeaWagh BakriOthers
Source: Euromonitor International
Tata Tea Gold Taj Mahal Red Label Special0
2
4
6
8
10
12
14
16
15
13
4
Average Weekly Sales(250 gm packets)
Source: Primary data from Easyday retail store, Raj Nagar
04/11/202311
COMPETITOR ANALYSIS: PRICING
Category Price/kg(Rs.)
Hindustan Unilever Ltd Tata tea
Premium Leaf 400-430 Taj Mahal Tata Tea Gold
Premium Dust 360-400 3 Roses Chakra
Medium Leaf 330-360 Red Label Tata Tea Premium
Medium Dust 210-230 NA Kanan Devan
Popular/Economy 190-210 NA Agni
04/11/202312
“Our Tata Tea Gold is the most aromatic tea among all premium tea brands because 15% longer superior quality leaves”
Most aromatic tea brand
Superior quality tea leaves
Socially responsible
POSITIONING
04/11/202313
MARKETING STRATEGY
• Product• 15% longer leaves• Extra special as they’re gently rolled to lock in
their natural aroma• Stock Keeping Units (SKU): 100gm, 250gm,
500gm, 1 kg
• Price• Pricing appropriate for target segment i.e. Middle
class• Proposition of value for money by offering high
quality tea leaves• Competitive pricing, lesser than most of its
competitorsBrand Tata Gold
(Rs.)Taj Mahal
(Rs.)Red
Label(Rs.)
Wagh Bakri(Rs.)
Price/250gm
100 113 112 90
04/11/202314
MARKETING STRATEGY
• Place• The tea leaves are cultivated across 51 tea estates
owned and controlled by Tata Global Beverages• After plucking, leaves are fermented, filtered and
packaged in Tata owned factories• Packaged SKU’s sold at convenience grocery
stores & exclusive stores like Easyday, Food Bazar etc.
• Promotion• ‘Jaago Re’ campaign• ‘Gaon Chalo’ Abhiyaan• ‘Power of 49’ campaign• Blogs on latest social issues• Dedicated pages on social media sites like
Facebook• ‘Voter Registration’ campaign
04/11/202315
MARKETING COMMUNICATION
Communication based on properties like freshness and flavour
Rural distribution initiative – ‘GAAON CHALO’ Campaign
Social cause marketing – ‘JAAGO RE’ Campaign
Chai Unchai – Trendy tea bars launched in the country
Redefining & repositioning ‘Jaago Re’ Campaign2006
Early 2000’s
2007
2008
Post 2008
04/11/202316
PERCEPTUAL MAPPING
• Collected consumer rating for each product for each attribute that consumer might consider while buying packaged tea leaves
• Floated consumer survey consisting of 6 X 6 + 6 Likert scale questions and used regression modeling on them
Brands Used for Mapping
Tata Tea Gold
Taj Mahal
Red Label Special
Wagh Bakri
Taaza
Unbranded Loose Tea
Attributes Mapped
Aroma
Flavour
Advertising
Habitual facts
Freshness
Availability
04/11/202317
SUMMARY OF ANALYSIS
Average Score
Tata Tea Gold
Taj Mahal
Red Label Special
Wagh Bakri Taaza
Unbranded
Aroma 3.60 3.87 3.53 3.05 3.42 2.95
Flavour 3.69 3.80 3.58 3.05 3.33 3.07Advertisement 3.96 3.24 3.00 2.42 3.04 2.24
Habit 3.07 2.82 2.76 2.49 2.85 2.56
Freshness 3.51 3.56 3.31 2.91 3.15 2.89
Availability 4.16 3.64 3.60 2.67 3.24 3.25• Regression analysis yielded Flavour and Freshness/Enerziser as the two most important attributes which are statistically significant and greatest in absolute value of coefficients ( Flavour = .23, Freshness = .13)
• Average attribute rating used to formulate the actual map• Map is centered at (2,2)
04/11/202318
SURVEY CHARACTERISTICS
Light Medium Heavy0%
10%
20%
30%
40%
50%
60% 55%
35%
11%
Tea Consumption Rate
0%
15%
30%
45%
45% 45%
9%
Jaago Re Campaign Awareness
04/11/202319
MARKET FOR PACKAGED TEA LEAVES IN INDIA
FlavourNo Flavour
Not Fresh/ Energizing
Fresh/Energizing
Slope of Vector = .54
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Tata Tea GoldTaj Mahal
Red Label Special
Wagh BakriTaaza
Unbranded Loose Tea
04/11/202320
CONCLUSIONS FROM MAP• All brands considered similar in terms of characteristics form a
part of competitive set of Tata Tea Gold• As per the survey , Taj Mahal is perceived to be the best brand
in terms of the flavour and freshness that it provides• Unbranded loose tea and Wagh Bakri are low on perceived
energizing ability• Tata Tea Gold, Red Label Special and Taj Mahal compete closely
with each other. The differentiating factor is the perceived flavour of each of them
• The serious competition that Tata Tea Gold faces is from brand Taj Mahal.
04/11/202321
REFERENCES• http://forbesindia.com/printcontent/34249
• http://pitchonnet.com/blog/2012/09/25/tata-tea-a-case-of-social-cause-marketing/
• http://www.mxmindia.com/2012/11/tata-teas-jaago-re-website-empowers-people-to-make-a-difference/
• http://articles.economictimes.indiatimes.com/2007-11-30/news/27677020_1_peter-unsworth-percy-siganporia-vitax/2
• http://www.business-standard.com/article/management/tata-tea-s-new-brew-109061500022_1.html
• http://www.tata.com/pdf/tata_review_dec_11/review_brand_awakening.pdf
• www.tata.in/company/articles/inside.aspx?artid=3HnkE5Ihdvg=
• http://www.tataglobalbeverages.com/docs/default-document-library/agm-2011-12-presentation
• http://economictimes.indiatimes.com/tata-global-beverages-ltd/directorsreport/companyid-12929.cms
Thank You
04/11/202322
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