A

Study on
“Marketing Strategies of “TATA TEA
In LUCKNOW

SUBMITTEDTO SUBMITTEDBY:
Dr. Reetika Agarwal Prachi Srivastava

(Associate Professor) 1220675069 IMBA 2nd Year/4th Sem

SOM,BBDU

SESSION : 2023-24
SCHOOL OF MANAGEMENT
BABU BANARASI DAT UNIVERSITY
SECTOR I, DR. AKHILESH DAS NAGAR, FAIZABAD ROAD
LUCKNOW (U.P) INDIA
TABLEOFCONTENT

SLN. TOPIC PAGENO.

1 INTRODUCTION 6

2 COMPANY PROFILE 7-10

3 MARKETINGSTRATEGY 11-12

4 PRODUCTS AND BRAND 13-15

5 BRAND PREFERENCE OFTEA AMONG 16-17

CONSUMERS
6 OBJECTIVE OF TATA TEA 18

7 RESEARCH METHODOLOGY 19

8 ANALYSIS AND INTERPRETATIONS 20

9 FINDINGS 21-26

10 SUGGESTIONS 27

11 CONCLUSION 28

12 BIBLIOGRAPHY 29

13 ANNEXURE 30
 DECLARATION

I hereby declare that the Field Study Report titled “AStudy ON

Marketing strategies of TATA TEA”is an original work done by
me under the guidance of Dr. Reetika Agarwal SOM,BBDU and
no part is taken from any other project or material published or
otherwise submitted to any other college or otherwise submitted
to any other college or institute.

Date: PRACHI SRIVASTAVA

IMBA 2nd Year/4th Sem

Roll No. 1220675069

 Acknowledgement

The satisfaction and euphoria that accompany the successful completion of any task is
incomplete without the mention of people who made it possible. So I take this as a
great opportunity to pen down a few lines about the people to whom my
acknowledgement is due.
ItiswiththedeepestsenseofgratitudethatIwishtoplaceonrecordmysincerethanksto,my
project guide for providing me inspiration, encouragement, guidance, help and
valuable suggestions throughout the project.
Iwouldalsoliketothankmyentirerespondentforgivingmetheirvaluabletimeand
information.

Prachi Srivastava
IMBA21
1220675069
 CHAPTE
R - 01
Introduction

Tata Tea Limited, also known as Tata-Tetley, is the world’s second largest manufacturer
and
distributoroftea.TatateaisownedbyIndia’sTataGroup,theTataTeaLimited.Tatateaproduces
major brands of tea such as Tata Tea, Tetley, Good Earth Teas and JEM A. It is the
largest tea brand in India, and has the largest tea company in United Kingdom and
Canada and the second largest in the United States.

Tata Tea manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten
tea blending and packaging factories and employs around 59,000 people. The company
owns 51 tea
estatesinIndiaandSriLanka,especiallyinAssam,WestBengalineasternIndiaandKeralainthe
south. The company is the largest manufacturer ofAssam tea and Darjeeling tea and the
second- largest manufacturer of Ceylon tea. Set up in 1964 as a joint venture with UK
based James Finlay and Company to develop value-added tea. The Tata Tea Group has
now product and brand presence in 40 countries. Tata Tea owns five brands in India -
Tata Tea, Tetley, Kannan Devan, Chakra Gold and Gemini.

As part of the rehabilitation programme, a strawberry preserve-making unit is maintained

by the centre where the children are not only involved in the collection, cleaning and
making of strawberry preserve but are also encouraged to grow strawberries, which are
then bought by the centre.This becomes an additional sourceof income for
thechildren.Tata Tea Limited is amajor grower, manufacturer and exporter of spices from
India.Tata Spices Centre was set up in Cochin, in 1990 and consists of a modern pepper
processing facility for Whole Black and White Pepper. Theprocessingfacility
atCochinhasacapacity ofabout2500tonsperannum.Theprocesslineis fully mechanized
and human handling to ensure that strict standards of hygiene are followed as required
by a product of international quality.

The product available in Tata tea industry are Gemini Tea launched in 1980, Kannan
Devan Tea launched in 1985, Chakra Gold launched in 1992, Agni Tea launched in
1998, Tata Tea Temptation launched in 2001,Tata Tea Gold launched in 2003,TetleyTea
launched
 CHAPTE
R - 02
CCCCC

Viasubsidiarycompanies,TataTeamanufactures70millionkilogramsofteainIndia,controls54
tea estates, ten tea blending and packaging factories and employs around 59,000
people. The company owns 51 tea estates in India and Sri Lanka, especially
inAssam,West Bengal in eastern India and Kerala in the south. The company is the
largest manufacturer of Assam tea and Darjeeling tea and the second-largest
manufacturer of Ceylon tea.

Set up in 1964 as a joint venture with UK based James Finlay and Company to develop
value- added tea, the Tata Tea Group has now product and brand presence in 40
countries. It is one of India’s first multinational companies. The operations of Tata Tea
and its subsidiaries focus on branded productofferings in tea, butwithasignificant
presence inplantation activity inIndia and Sri Lanka.

TeaProducts:

GeminiTealaunchedin1980

The brand Gemini is a residue tea, sold in the conditions of Andhra Pradesh, Madhya
Pradesh, Chhattisgarh,Tamil Nadu and Karnataka. In anycase, the focal point ofthis
brand is to be a solid provincial player in the territory ofAndhra Pradesh. This brand has
a high segment ofAssam tea, which loans to its novel quality, taste and shading. Gemini
is the market head in its value portion and has been re-arranged twice since 1996.The
brand has been effectively situated as "a solid tea for solid family relations".

KannanDevanTealaunchedin1985

The Kannan Devan Tea story starts in the late nineteenth century when the primary
European pilgrims went to the Kannan Devan Hills in the province of Travancore.
Overcoming an unfriendly territory, the early grower began developing Tea shrubs in the
ripe woods place where
there istheWestern Ghats.The teathey delivered wassentoutto Europe anddifferent
nations all through the world.

ChakraGoldlaunchedin1992

ChakraGoldTeaisamixofastoundingAssamCTCDustteas.ChakraGoldisasolidNo2Brand in
the excellent and extravagant Premium Dust Tea Market of South India. The buyer
correspondence of the Brand trotted on the Golden Moments in the Consumers life has
been generally welcomed, and a similar topic of Golden touch and Golden lady have
propelled a large number of Consumers crosswise over south India to be the faithful
purchasers of Chakra Gold, Golden Taste. Shopper advancements have been a vital piece of the
Brand correspondence.
AgniTealaunchedin1998

A Migration of Agni under the Tata Tea umbrella is an ambitious brand consolidation
initiative, whereby TATA TEA Agni, became its new offering for the economy segment.
By bringing the
populareconomybrandAgniunderthestableTATATEA,theflagshipbrand,thecompanyintend
s to further consolidate its presence in the large and promising economy segment by
leveraging the
tremendousequityoftheflagshipbrandandallowingconsumersaccesstothepopularTATATEA
brand. Tata Tea Agni has been developed through painstaking consumer insight mining
and satisfies the economy consumers need for a differentiated product at an affordable
price.

TataTeaTemptationlaunchedin2001

Tata Tea is now offering consumers great value with the launch of Tata Tea Temptation –
a
premium,orthodoxleaftea.Temptationwillofferteaconnoisseursa‘RareFlavourofAssamLeaf’
that delivers a unique taste and aroma. Tata Tea Temptation is the first among many new
products to come from Tata Tea Limited and can be attributed to the company’s sharply
focussed philosophy - "the customer is sovereign".

TataTeaGoldlaunchedin2003

The launch of Tata Tea GOLD, tea that has aroma coupled with a refreshing taste. The
product, introduced as an upgraded variant of Tata Tea brand, has a blend of 85% CTC
and 15% long leaf tea. This is a blend of tea, which is visually unique, and a superior
taste. Television commercial is
onaironnationalmedia.Thecommercialhasbeendesignedkeepinginmindthebrandpersonalit
y and has "Na kahongetohpachtaonge" as its sign-off line.

TetleyTealaunchedin2004

TheTetleybrandwasrestagedintheIndianmarketinDecember2004.Thehighlightoftherestage
was the launch of flavoured tea bags in four exciting flavours –Masala, Ginger, Lemon
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and Earl Grey. Flavoured tea bags are available in packs of 12 tea bags, at an attractive
put down price of Rs.20percarton.TheTetley flavoured teabagrangehasbeendeveloped in-
house,keeping Indian

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consumerhabits inmind.Tetley isthefirstbrandtolaunchMasalaandGingertea bags–twovery
popular Indian flavours. Keeping in mind that most Indians like milk in their tea, Tetley tea
bags were customized to allow this, yet ensure that the consumer got a strong cup of tea.

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 CHAPTE
R MarketingStrategy:
- 03
Regarding Indian markets, important to point out is that once the customer decides to
consume a certain brand he or she will be very loyal to the product and it will therefore be
hard to convince him or her to buy another brand. The brand Tata Tea is to introduce
innovative products in an existing market and focus on Market Development.

ExistingMarket New market

Existing Products Market Product

New
Penetration Development
Product

s Market
Diversification

Development

Producing product in India is less expensive as India is second largest producer of tea in
world tea market and also labour is cheap here.

MarketingMixofTataTea
Product

TataTeawillbeahighqualityproductoffered.ContentsoftheTataTeaare:
40 bags, 80 bags, 150 bags, 250 bags (Family pack), the amount of bags refers to different
target groups.40bagsforsingles,80bagsforcouples,150bagsand250bagsareFamilyPacks.(250
bags is the most famous)

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Packaging:

Customerperceptionofapackagecreatesbrandequityandpurchaserloyalty.Theimagepresen
ted bythepackagelargely determines success orfailure ofatea line.Appearance stimulates
memories and emotions inside the purchaser, who oftentimes is female, often buying for
an entire family. Colour, image and slogan all combine to facilitate customer allegiance.

Place

High quality for a reasonable price can be bought from Assam & Darjeeling and will then
be blended and packed. The final product will be distributed to Retailers such as
Supermarkets and main tea shops so the end consumer has easy access to it.

Price

Reasons for pricing policy: Tata Tea is competing against the main players on the Indian
Tea Market and by setting a higher price but offering more value for it. Various promotion
activities, giveaways and advertising on radio and television will help to establish the
brand and gain market shares.

Promotion

The focus is the Indians like to purchase bargains or buy products that offer free gifts.
Otherbrands do not offer as many promotion and free gifts. This is why it is important to
focus especially onthePromotion activities ofthemarketing mix. Needto setuporiginal
events inorder to attract new customers and consumers of other tea brands.

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Page
15
Page
16
.

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 ProductsandBrands

WhileTataTeaisthesecondlargestteacompanyinIndiaafterHindustanLever,itownsthesingle
largest tea brand in the country, Tata Tea Premium. The company has five major brands
in the Indian market catering to all major consumer segments for tea. Under theTataTea
portfolio, three brands cater to the premium, popular and economy segment – Tata Tea
Gold, Tata Tea Premium and Tata 151 Tea Agni respectively. In addition, Tata Tea in
India has three very strong regional brands in the four Southern states, which are either
number one or number two in their respective geographies.These areTetley, Kannan
Devan, Chakra Gold and Gemini. Tetley in India, though a niche brand, is presented as
the new face of tea – innovation brand. The Tata Tea brand leads market shareinterms
ofvalueand volumeinIndia.Tetley acquired in 2000isthemarket leader in
theUKandCanadawith26percentand40percentmarketsharerespectivelybyvalue.Tetleyhas
also launched iced tea under Tea of Life brand in UK, which is making good progress.
Tetley is establishing a presence in the ready-to-drink segment, for whichTetley IceThas
been launched in UK andAustralia. Chayya, a recently launched Chai Latte brand in UK,
is the first of its kind and is showing great promise. Besides Tetley also boasts of a wide
range of fruit and herbals and speciality tea. In order to build its business in these high
value segments, packaging innovations such as the “stay fresh” flip top carton is being
introduced. Tata Coffee has the distinction of having six of the world’s ten best coffees in
its line-up. With the purchase of 8 O’clock it now owns a strong brand in the US.

Over time, the group has grown from being a dominant plantation player into a branded
international tea business. In line with this change of strategic focus, 17 of the 25 estates
in South India were transferred to a new entity Kannan Devan Hills Plantation Company
Private Limited (KDHP). KDPH is principally owned by the 13,000 employees of these
plantations, withTataTea having 18.2 per cent interest in the new enterprise. The ground
breaking initiative, which delivers the company’s commitment to doing business in a
sustainable manner, resulted in a one off profit this year and will deliver recurring costs
benefit in future. Tata Tea has lowered major costs through stringent cost control and
quality improvement measures, supported ably by its R&D centres.Theseinitiatives have
helped thecompany improve its operational performance. Financial

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restructuring has also been the thrust for the company in the past. The acquisition of
Tetley was a highly leveraged deal thatincreased thegearing ofthe company to 2.2in
theyear 2002.Thereafter company has taken several steps to successfully replace its
high-cost debt to reduce its gearing to
1.1 in the year 2005.These initiatives have allowed significant improvement in the Tetley
Group's cash flows that will enable the company to invest behind its brand globally,
launch new products and consolidate its market shares in key geographies.

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 BRANDPREFERENCEOFTEAAMONG
CONSUMERS

Abstract

Tea is the common scientific name of the herb Camellia Sinensis. It has been
cultivated in China and the Asian region for thousands of years, and today, tea is the
second most popular drinks, served both hot and cold. Many health benefits are said
to be gained by consuming tea. The health benefits include weight loss, curing
diabetes, cancer, asthma and different allergies

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and affections, such as flews and other viruses. Tea has gained popularity with all age
groups and the market is flooded with numerous brands. Hence, this paper aims to
identify the brand preference ofteaamong customers.Thepaperalso examines
thefactors influencing consumers in preferring various brands of tea. The data was
collected from Jharkhand & West Bengal, India among 75 survey respondents.

Objectives

1. To study the marketing strategy adopted by TATA TEA in Lucknow.

2. To study the factors influencing choice of brand preference forTATA TEA.
3. Toidentifythe level of consumer satisfaction towards the various product of TATA TEA
in Lucknow.

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 RESEARCH DESIGN
Research design is the arrangement for conditioned for data
collection & analysis of data in a manner that aims to combine
relevance purpose with economy in procedure.
A research design is a master plan or model for the conductof
formal investigation. It is a blue print that is followed in
completing study.
The research conducted by me is a descriptive research. This is
descriptive in nature because study is focused on facts.
4.

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 ResearchMethodology

Primary data has been collected for the research study in lucknow India.The research
design involves descriptive style. Consumers of various age groups have been
conductedwiththeresearchsurvey.Thesamplesizewas75andthesamplingtechniqueusedi
s random sampling. The research instrument used was questionnaire and it comprises
both open and close-ended questions. Personal interview has been conducted among
the target respondents.

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SAMPLE
The data has been collected from the customers of the Britannia company

SAMPLE SIZE
The number of 100 respondents from Lucknow (India) are selected for search project. These
respondents are the users or the consumers of Britannia and are using the Britannia products
and have experienced the products.

SAMPLING PROCEDURE / METHOD

For the purpose of research report study the sampling procedure used are non- probability
sampling.

NON-PROBABILITY SAMPLING-

Non-probability sampling is defined as a sampling technique in which the researcher selects

samples based on the subjective judgment of the researcher rather than random selection.

TYPE OF DATA

 Primary Data-
Primary data is data that is collected by a researcher from first-hand sources, using methods
like surveys, interviews, or experiments. It is collected with the research project in mind,
directly from primary sources.
For this report of Britannia company Primary data has been collected.
In this I have used questionnaire in the research report, as it is the most common data
collecting method.
The data has been collected from "Vishnu Lok Colony" which is located in Lucknow and from
those group of members who have consumed the Britannia product and from those who are
not well aware of the different products of the Britannia brand.

.
DATA COLLECTION
The data has been collected through a Questionnaire which is commonly used by the many
researchers.

DATA COLLECTION PROCEDURE

The data has been collected for the field study is through online procedure.
Online procedure id fast procedure and can be done for the collection of huge data.

DATA ANALYSIS
The data has been analyzed through the tool of percentage method, respective graphs, bar
graphs and pie charts.

 → Percentage Method-
The percentage method of accrual calculation distinguishes between cross-controlling area

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data, which you maintain in an overhead structure, and controlling-area related data, such as
base cost elements, overhead rates and credit objects.

 → Graph-
A graph is an abstract data type that is meant to implement the undirected graph and directed
graph concepts from the field of graph theory within mathematics.

 → Pie charts-
A special chart that uses "pie slices" to show relative sizes of data.

AnalysisandInterpretations

Table1.Classificationofteausersbasedongender
Gender No.ofRespondent % ofrespondent

Male 50 66.67

Female 25 33.33

Total 75 100

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 INFERENCE-
Fromtheabovetableitcanbeinferredthatmorethan60percentoftherespondentswho consume
tea were 'males'.

Source:surveydata

Table2.FactorinfluencingbrandPreference

Factors No.ofrespondents % ofrespondents

Taste 30 40
Quality 25 33
Low Price 10 13
Gift 2 3

Fragrance 8 11
Total 75 100

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 INFERENCE-
Itcan be inferred from the above table that, taste appears to be the supreme factor
influencingthe consumers’preference for tea brand followed by quality.

Source:surveydata

Table3.SourceofAwareness

Sourceofawareness No. of respondent % ofrespondent

Friends relatives 15 20

FamilyMembers 19 25

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 Pointofpurchase 7 10

Television 34 45

Total 75 100

INFERENCE -
From the above table it can be inferred that 45% percent of the respondents are aware of the
brand through television, as it plays an important role in creating awareness towards various
brands.

Source:surveydata

Table4.Consumerintentiontowardsreplacingtheirexistingbrandoftea.

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 Sourceofawareness No.ofrespondents % ofrespondents

Toreplace 5 6.67

Notto replace 70 93.33

Total 75 100

INFERENCE-

It can be inferred from the above table that more than 90 percent of the respondents are
not interested in replacing their existing brand of tea.This shows their 'brand loyalty'
towards existing brand of tea.

Source:surveydata

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Table5.Classificationaccordingtoage

Age No.ofrespondents %ofrespondents

Lessthan25 15 20
25-35 30 40

35-45 20 27

Morethan45 10 13

Total

INFERENCE-
Fromtheabovetable itcanbeinferredthat40%oftherespondentsbelongtotheagegroupof'25–
35' and 27 percent of them belong to the age group of 35-45.

Source;surveydata

Table6.PreferredBrand

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 Brand No.of Respondents

TataTea 45

LiptonTea 5

WaghBakriTea 15

BrookBondTea 10

Total 75

INFERENCE-

From the above table it can inferred that 45% of the respondent’s preference is Tata Tea
which is highest among the rest 3 brand.The respondents forWagh BakriTea are 15%
which is the second highest after theTata Tea. 10% prefer Brook BondTea. Only 5% of
the respondents prefer Lipton Tea which is the lowest ranked amongst the 4. Most people
prefer Tata Tea as they are Loyal Customer of the Brand whereas some prefer it as
change of taste and some find it potentialproduct.

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Source:surveydata

FINDINGS

Ithasbeenfoundout that,

1. Tasteappearstobethesupremefactorinfluencingtheconsumers’preferencefortea
followed by quality.
2. Televisionplaysanimportantroleincreatingawarenesstowardsvariousbrands.
3. Majorityoftherespondentsareloyaltowardstheirexistingbrand.
4. MajorityoftherespondentspreferTataTeabrandfollowedbythreeotherbrand.

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 SUGGESTIONS

1. In order to capture a large share in the market the brand of tea could be
manufactured with more taste and good colour, and also in an attractive
packaging.

2. Thecompanieshavetogiveimportancefortelevisionasmostoftheconsumerswere
remembering the advertisement.

3. Inordertoattracttheconsumersusefulgiftarticles,freesamplesshouldbeusedinthe
product.

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 CONCLUSION

Manufacturermustpayattentiontothequality;sincecustomershaveawiderangeofbrandsto
selectfromotherwisethebusinesswouldberuinedifqualityisnotmaintained.Majorityofthe
consumers are influenced by television advertisement; producers has to pay more
attention to this aspect.

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 BIBLIOGRAPHY

http://www.bestteabrand.com/
http://www.jayateas.com/
http://www.teauction.com/
http://www.tatatea.com /
http://www.researchgate.com /
http://www.economicstimes.com/

Survey Form prepared with the help of http://www.googleform.com/

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 QUESTIONAIRE
Dear Respodent,

Myself Prachi Srivastavapursuing IMBA. at BABU BANARADI DAS UNIVERSITY

LUCKNOW. I seek your responses and kind co-operation for the purpose of successful of
my Survey project report.
Prachi Srivastava
IMBA 2nd Semester
BABU BANARASI DAS UNIVERSITY
LUCKNOW
Name…………………………………..Gender………………………………………..
Address........………………………………………………..
Age………………………………………………….

1. Which is most commonly selling brand in Tata Tea?

a. Tata Agni [ ] b. Tata Tea Gold [] c. Tata Tea Premium [ ]

2. Which of the following factors influence you to sale the product?

a.Discount [] b.Availability [] c.demand of product [ ]d. Price [ ]e. Advertisement[ ]

3. How many variety of Tata tea are you selling?

a.Only One [ ]b. Two [] c.Three [ ] d. More than three [ ]

4. Does Tata Tea provide you credit purchase?

a.Yes[ ]b. No [ ]

5. Does the product delivery service of Tata Tea on time?

a.Yes [ ]b. No [ ]

6. Does the company gives any Discount/Benefits/Gifts on festivals?

a.Yes[ ] b. No []

7. Are you satisfied with the product profit margin provided by the company?
a. Highly satisfied [ ]b.Satisfied [] c. Dissatisfied [ ]d. Highly dissatisfied [ ]

8. What is the level of awareness of Tata Tea among customers?

a.Less than 30% [ ] b. Less than 50% [] c. Less than 70% [ ]d. More than 70% [ ]

9. What is the daily sale of your outlate of Tata Tea?

a.Excellent [] b. Good [] c. Average [] d. Poor [ ]

10. Do get any type of promotional facilities from company (Like- Pen pad, Dairy, Banner
etc.)
a.Yes [b. No [ ]

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11. Are you satisfied with pricing strategy of Tata Tea?
a.Satisfied [] b. Highly satisfied [ ] c. Dissatisfied [ ]d. Highly dissatisfied [ ]

12. How is the product pricing of the company?

a. Highly priced [ ] b. Moderately priced [] c. Low priced [ ]

13. Please give suggestion if you have?

……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
Thank you...

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