PACKAGED TEA LEAVES

SECTION: B
GROUP: 8

CHITTRESH DHAWAN
DEEP DAGA
HIMANSHU ARORA
NIKHIL SINGHVI
SWATI SINGHAL
 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

2 3/5/2014
 BRAND WISE SALES BREAK UP

Brands %
Tetley 39
Tata Tea 29
Eight o’Clock 17
Others 15

Source: Tata Global Beverages Company Website

3 3/5/2014
 PRODUCT SEGMENTATION

Geographic Demographic Behavioral

Income Group Decision

Semi-urban • Middle class Roles
(18000 – 125000 • Buyer & Decider :
pm) Housewife
City Age
• Tier 1 and Tier 2
• 20-40 years

4 3/5/2014
 PORTER’S FIVE FORCES
Threat of new Threat of buyer’s
entrants growing bargaining
• FDI power
• Untapped rural • Other options available
markets • Product differentiation
Threat of intense • Large number of
consumers
segment rivalry
• Taj Mahal
• Red Label Special
Threat of • Unbranded Tea
Threat of supplier’s
substitutable growing bargaining
products power
• Large number of
• Coffee
producers
• Aerated drinks
• Low switching costs
• Energy drinks

5 3/5/2014
 SEGMENTATION : INCOME LEVEL

Tata Tea Premium

Tata tea Gold

Tata Tea Agni

• Caters to the • Flagship brand • Offering for the
premium economy caters to the economy segment
segment popular segment • Stylish superior
• Aroma coupled • Brand promises to quality packaging;
with a refreshing give “asli taazgi” unmatched in this
taste (Real freshness) segment
• Blend of 85% CTC
and 15% long leaf
tea

6 3/5/2014
 SEGMENTATION : REGION WISE

Chakra Gold
Kanan Devan

Gemini
• Principal Market : • High quality Assam • Principal market:
Tamil Nadu, CTC Dust teas Andhra Pradesh,
Kerela, Karnataka, • Brand in the high Madhya Pradesh,
Goa quality & high Chattisgarh, Tamil
• Specifically priced Premium Nadu and
sourced from the Dust tea Market of Karnataka
Kanan Devan Hills South India • Focus to be a
• Characterized by • Theme of Golden strong regional
its unique taste touch and Golden player in Andhra
preferred woman inspired Pradesh
throughout South millions of • Positioned as "a
India Consumers across strong tea for
south India strong family
relations"

7 3/5/2014
 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

8 3/5/2014
LEVEL OF
COMPETITION Utensils Squash

Flavored
Soups Darjeeling Tea
Milk
Kitchen Mix Lemon Tea Butter
Black Tea
Towels Tea Red Label Special milk
Protein Bags Coffee
Powder Assam Loose
Jam
tea Taj Mahal Tea
Maggi Energy
Noodles Green Small Drinks
Tea tea Juices
Organic Tea leaves
Red Tea
Chocolates
Soft Drinks
Product Form Bread, Butter,
Product Category Cheese
Namkeen
Generic Biscuits

Budget
9 3/5/2014
 COMPETITOR ANALYSIS: MARKET SHARE

Average Weekly Sales

(250 gm packets)
Hindustal
Unilever Ltd 15
16 13
22% Tata Tea
49% 14

20% 12
Wagh Bakri 10

8
8% Others 6 4

0
Tata Tea Gold Taj Mahal Red Label Special

Source: Euromonitor International Source: Primary data from Easyday retail store, Raj Nagar
10 3/5/2014
 COMPETITOR ANALYSIS: PRICING

Price/kg
Category Hindustan Unilever Ltd Tata tea
(Rs.)

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

11 3/5/2014
 POSITIONING

“Our Tata Tea Gold is the most aromatic tea among all premium tea
brands because 15% longer superior quality leaves”

Most aromatic tea Superior quality tea Socially responsible

brand leaves

12 3/5/2014
 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 competitors

Brand Tata Gold Taj Mahal Red Label Wagh Bakri

(Rs.) (Rs.) (Rs.) (Rs.)

Price/250gm 100 113 112 90

13 3/5/2014
 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

14 3/5/2014
 MARKETING COMMUNICATION
Post
2008
2008

2007 Redefining &

repositioning
Chai Unchai – ‘Jaago Re’
2006 Trendy tea bars Campaign
launched in the
Social cause country
marketing –
‘JAAGO RE’
Campaign
Rural
distribution
initiative –
Early ‘GAAON
2000’s CHALO’
Communication Campaign
based on
properties like
freshness and
flavour

15 3/5/2014
 PERCEPTUAL MAPPING

Brands Used for Mapping Attributes Mapped

Tata Tea Gold Aroma
Taj Mahal Flavour
Red Label Special Advertising
Wagh Bakri Habitual facts
Taaza Freshness

Unbranded Loose Tea Availability

• 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

16 3/5/2014
 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 3.07
Advertisement 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)

17 3/5/2014
 SURVEY CHARACTERISTICS
Tea Consumption Rate Jaago Re Campaign Awareness

50%
45% 45%
60% 55% 45%
40%
50%
35%
40% 35% 30%
25%
30% 20%
15% 9%
20%
11% 10%
10% 5%
0%
0% Yes, it led to No, it did not Not Aware
Light Medium Heavy social lead to social about the
awakening awakening campaign

18 3/5/2014
 MARKET FOR PACKAGED TEA LEAVES IN INDIA
Fresh/Energizing
4.00
Taj Mahal
3.50 Tata Tea Gold
Red Label Special
Taaza Slope of
3.00 Unbranded Loose Wagh Bakri Vector =
Tea
2.50 .54

No Flavour 2.00 Flavour

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00
1.50

1.00

0.50

0.00
Not Fresh/ Energizing

19 3/5/2014
 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.

20 3/5/2014
 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

21 3/5/2014
 Thank You

22 3/5/2014