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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

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BRAND WISE SALES BREAK UP

Brands %
Tetley 39
Tata Tea 29
Eight oClock 17
Others 15

Source: Tata Global Beverages Company Website


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PRODUCT SEGMENTATION

Geographi Demograp
Behavioral
c hic
Income Decision
Semi-urban Group Roles
Middle class Buyer &
(18000 Decider :
125000 pm) Housewife
City Age
Tier 1 and 20-40 years
Tier 2

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PORTERS FIVE FORCES Threat of buyers
Threat of new growing
entrants bargaining power
FDI Other options
Untapped rural available
markets Threat of Product
differentiation
intense Large number of
segment rivalry consumers
Taj Mahal
Red Label
Threat of Threat of
Special
substitutable Unbranded Tea suppliers growing
products bargaining power
Large number of
Coffee
producers
Aerated drinks
Low switching costs
Energy drinks

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SEGMENTATION : INCOME LEVEL

Tata tea Gold

Tata Tea Premium

Tata Tea Agni


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

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SEGMENTATION : REGION WISE

Chakra Gold
Kanan Devan

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

8 3/11/17
LEVEL OF
COMPETITIONUtensils Squash

Flavored
Soups Darjeeling Tea
Milk
Kitchen Mix Lemon Tea
Black Tea Butter
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 Bread, Butter,
Form Cheese
Namkeen
Product Biscuits
Category
Generic
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COMPETITOR ANALYSIS: MARKET
SHARE

Average Weekly Sales


(250 gm packets)

Hindustal 16
15

22% Unilever Ltd 13


14
49%
20% Tata Tea 12
8%
Wagh Bakri 10

Others 8

6 4

0
Tata Tea Gold Taj Mahal Red Label Special

Source: Euromonitor International Source: Primary data from Easyday retail store, Raj Nagar
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COMPETITOR ANALYSIS: PRICING

Price/kg Hindustan Unilever


Category Tata tea
(Rs.) Ltd

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/Econom
190-210 NA Agni
y

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

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MARKETING STRATEGY
Product
15% longer leaves
Extra special as theyre 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
Brand Tata Gold
Competitive Taj Mahal
pricing, lesser thanRed
most of itsWagh
(Rs.)
competitors (Rs.) Label Bakri
(Rs.) (Rs.)

Price/250g 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 SKUs 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
Post
2008
2008

2007

2006

Early
2000
s

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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

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SUMMARY OF ANALYSIS
Average Tata Tea Taj Red Label Wagh Unbrand
Score Gold Mahal Special Bakri Taaza ed
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
Advertiseme
nt 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
Tea Consumption Rate Jaago Re Campaign Awareness
45% 45%
60% 55% 50%
45%
40%
35%
50% 30%
25%
20%
40% 35% 15%
9%
10%
5%
30% 0%

20%
11%
10%
0%
Light Medium Heavy

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MARKET FOR PACKAGED TEA LEAVES
IN INDIA
Fresh/Energizing
4.00
3.56
3.50 3.51
3.31
3.15 Slope of
3.00 2.89 2.91 Vector
2.50 = .54

No 2.00 Flavour
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

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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

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Thank You

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