PACKAGED TEA LEAVES

SECTION: BGROUP: 8

CHITTRESH DHAWANDEEP DAGAHIMANSHU ARORANIKHIL SINGHVISWATI SINGHAL

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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

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BRAND WISE SALES BREAK UP

Brands %

Tetley 39

Tata Tea 29

Eight o’Clock 17

Others 15

Source: Tata Global Beverages Company Website

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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

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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

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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

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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"

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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

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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

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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

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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

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“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

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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

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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

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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

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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

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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)

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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

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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

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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.

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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

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