INTRODUCTION TO TATA GLOBAL

BEVERAGES
LIMITED
TATA GLOBAL BEVERAGES
LIMITED
• Type : Private
• Founded : Kolkata ,India(1964)
• Headquarters : Kolkata, India
• Chairman : Ratan Tata
• Products : Tea
• Employees : 59000
• Parent : Tata Group
• Website : www.tatatea.com
 Company profile

• Tata Global Beverages Limited, is the world's second

largest manufacturer and distributor of tea.
• The company has been the star performer in the global tea
industry in recent years.
• Tata tea is owned by India’s Tata group.
• Tata tea Ltd. Markets tea under major brands Tata tea,
Tetley, Good Earth Teas, JEMČA.
• Tata tea manufactures 70 million kgs. tea in india
• It controls 54 estates(51 in India and Sri Lanka), 10 tea
blending and packaging factory.
The Tata Tea Group - Structure
 HISTORY
• 1980s

 In 1980 Indian tea industry was facing high input

cost and competition from
China.
 In 1983 Tata Tea bought stakes belonging to James Finlay
group to form individual entity.
 Introduced Tata Tea and then Kanan Devan, Agni, Gemini
and Chakra Gold.
 Set up Tata Tea Inc. a subsidiary in USA in 1987.

.
• 1990s
 Export joint venture with Britain’s Tetley tea in 1992.
 Joint venture in 1993 with Allied Lyons PLC in the UK to
form Estate Tata Tea.
 By 1999, Tata tea had a combined market share of 25% in
India.

• 2000s
 Acquisition of the Tetley group in 2000.
 Acquired Good Earth Tea brand in 2005.
 In 2007, Tata tea launched a campaign Jaago Re! to awaken
youth to social issues and worked with janaagarha
 India - Overview

• 2nd largest player after Hindustan Lever

• Brand presence across segments and price points
represented by Tata Tea, Agni, Chakra, Gemini and
Tetley
• Super brand ranking for Tata Tea Premium
• Distribution network connecting over 2500 stockists
and 1.7 mn retailers
 Tata tea products

Gemini Tea launched in 1980

 Dust tea,
Sold in the states of Andhra Pradesh, Madhya
Pradesh, Chhattisgarh, Tamil Nadu,Karnartaka.
Successfully positioned as "a strong tea for
strong family relations".
Focus: to be a strong regional player in the
state of Andhra Pradesh.
Kanan Devan Tea launched in 1985

• Its story begins in the late 19th century

when the first European settlers came to
the Kanan Devan Hills in the state of
Travancore.
• Early planters started cultivating Tea bushes
in the fertile forest land of the Western
Ghats.
• Tea they produced was exported to Europe.
 Chakra Gold launched in 1992
• Strong No 2 Brand in the high quality &
high priced Premium Dust tea Market
of South India
• Theme of Golden touch and Golden
woman have inspired millions of
Consumers across south India to be
the loyal consumers of Chakra Gold,
Golden Taste.
 Agni Tea launched in 1998

• Tea Agni has been developed through

painstaking consumer insight mining
• Satisfies the economy consumers' need
for a differentiated product at an
affordable price.
 Tata Tea Gold launched in 2003

• Commercial has been designed keeping

in mind the brand personality and has
"Na kahonge toh pachtaonge" as its
sign-off line.
• The product, introduced as an
upgraded variant of Tata Tea brand, has
a blend of 85% CTC and 15% long leaf
tea.
 Tetley Tea launched in 2004

• Restaged in the Indian market in December

2004.
• Tetley flavoured tea bag range has been
developed in-house, keeping Indian consumer
habits in mind.
• The first brand to launch Masala and Ginger
tea bags – two very popular Indian flavours.
 Tata tea : The Jaago Re Campaign
• Tata tea ltd. is taking a stand on corruption in India
through an integrated marketing initiative.
• The key goal of jaago re is to encourage younger
generation to make a pledge against corruption &
not blindly vote for politians.
• The jaago re website also educate the visitors on
voting rules and procedures & a source for election
related news.
• Tata tea also partnered with NPO Janaagarha on
16sep. 2008
 AWARDS AND
RECOGNITIONS
• Tata Tea – Second most trusted brand in the hot
beverages category
Brand Equity Most Trusted Brand Survey
• Jaago Re – Best Advertisement with social message
Indy’s 2009 Awards
• www.Jaagore.com – Winner of Bronze medal
Goa Ad Fest 2009
• www.Jaagore.com – Official Honouree in the sactivism
category
13th Annual Webby Awards
Marketing Mix
of
Tata Tea Ltd.
 Product mix
 Three national brands:
Tata Tea, Tetley and Agni,
 Three regional brands:
Kanan Devan, Gemini and Chakra Gold.
 Product delivery.
 Good packaging
 Different sizes
 Well suited Colour, image and slogan of product.
Agni, in the economy segment, offers strength and a low price.
Tata Tea thrives on the ‘great leaves, great taste’ platform in the
popular category.
 Place mix

• High quality for a reasonable price can be

bought from Assam & Darjeeling.
• Final product will be distributed to Retailers
such as Supermarkets and main tea shops so
the end consumer has easy access to it.
 Price mix

• 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.
• The median price for a 250-gm pack in northern
India, Tata Tea’s main market, is approximately
Rs 42.50
• Promotion activities, giveaways and advertising
on radio and television will help to establish the
brand and gain market shares.
 Promotion mix
• Indians like to purchase bargains or buy products
that offer free gifts
• Tata Tea’s brand-building initiatives are focused on
taste, quality and imagery
• Need to set up original events in order to attract new
customers and consumers of other tea brands.
• Create an advertising campaign to build brand
awareness.
• Differentiate products quality from competitors
through emphasizing trade-sales promotion to
support distribution strategy.
 Marketing Strategy:
• The brand Tata Tea is to introduce innovative
products in an existing market and focus on Market
Development.
Products ExistingMarket New market

Existing Products Market Product

Penetration Development

New Products Market Diversification

Development
 Annual Report of Tata tea ltd.
Particulars Six months ended Audited
September 30 Year ended
March 31,
2010
2010 2009 2010(in Rs
lakh)
Net Sales / Income from Operations
281279 267240 578295
Total Operating Income
282575 269842 582092
Total Expenditure
260914 239935 520220
Profit from Operations before Other
Income, Interest & Exceptional Items 21661 29907 61872

Profit Before Interest & Exceptional Items 24210 32640 65278

Interest (Net)
2592 1441 2793
Particulars 2010 2009 31st march
2010

Profit after Interest but before exceptional

items 21618 31199 62485

Other Exceptional Income / (Expenditure)

(Net) (4631) 3428 1613

Profit before Tax

16987 34627 64098

Tax Expense 7058 9337 24777

Profit after Tax

9929 25290 39331
 Mergers & acquisitions of Tata tea ltd.
Tata Acquired Country Stake Value Year
company
company acquired

Tata Tea and Tetley group UK 100 per cent GBP271 February
(wholly- million 2000
Tata Sons owned)

Tata Tea JEMCA Czech Assets: GBP11.60 May 2006

through Tata Republic intangible and million
Tea (GB) tangible

Tata Tea Good Earth US 100 per cent $31 million October 2005
through Tata Corporation & (wholly-
Tea (GB) F Mali Herb owned)
Inc

Tata Tea Joekels Tea South Africa Africa 33.3 GBP0.91 September
through Tata Packers per cent million 2006
Tea (GB)
SWOT ANALYSIS
OF
TATA TEA
 STRENGTHS

• Market leader in tea(a health drink) segment

• Wide market coverage
• R&D centres
• Community welfare
• Chai Unchai outlets
• Advertisements
• Own plantations
• Demand for tea has been growing at some 2% per annum
• Highly fragmented industry and consolidation could help
price rationalization.
 WEAKNESS

• Concentration risk over single category.

• The Indian labor laws do more harm to industry and labor than
help.
• labor intensive industry.
• Scalability is limited.
• Climate change may do more harm to tea growing region.
• Supply from more efficient players like Kenya, Vietnam ,Sri Lanka
 

 
 OPPORTUNITIES
• Growth potential in fruits and herbals tea
• Global existence
• Tea has a distinct advantage over more popular beverage –
coffee
• To come up with new flavors/formulation of the tea
• To make tea more acceptable and fashionable like coffee
• To make the consuming population at large to make aware of
the facts.
 
 THREATS
• Competition from regional, local and international players
• Waghbakri tea..
• Strategies of competitors.
• Regional players offering mediocre products at low prices or
with attractive promotions..
• Tea is considered as old fashioned and less functional than
some substitute products.
• Labor problems.
• Fragmented production.
• Cost escalation.
 Conclusion
• In the nutshell I can say that Tata Global
Beverages Limited is the 2nd largest manufacturer
& distributer of tea.
• I also discovered that Tata Tea Ltd. had a major
acquisition deal of Tetley in the year 2000.
• The financial performance of Tata Tea improved
though at a slow rate.
• Substitutes of tea doesn’t effect its consumption
among people.
 Consumers define the success of
Tata Tea

THANK YOU