Before we proceed lets learn some thing interesting about the history and origin of this wonderful herb called tea. Story of tea began in ancient China over 5,000 years ago. According to legend, the Shen Nong, an early emperor was a skilled ruler, creative scientist, and patron of the arts. His far-sighted edicts required, among other things, that all drinking water be boiled as a hygienic precaution. One summer day while visiting a distant region of his realm, he and the court stopped to rest. In accordance with his ruling, the servants began to boil water for the court to drink. Dried leaves from the near by bush fell into the boiling water, and a brown liquid was infused into the water. As a scientist, the Emperor was interested in the new liquid, drank some, and found it very refreshing. Therefore, according to legend, tea was created. breaks down into three basic types: Black, Green, and Oolong.

Picking only 2 leaves and a bud

Remove as much moisture as possible from the Tea

Withering

Rolling

Oxidation

Drying

Plucking

Put leaf info roller machines which twist, turn & break it.

Leaf is oxidise by exposing it to air in large tray till it eventually turns Black

Leaf is exposed to hot air from air blowers

1 2

3

4

5

Top Five Tea Producing Countries

Sri Lanka9%

Kenya10%

Indonesia5%

China21%

India30%Others

25%

Top Five Tea Consuming Countries

India23%

China16%

Russia / CIS6%

U K 6%

Japan5%

Others44%

India is the largest tea producing and consuming country in the world.

Assam valley and Cachar region in Assam; parts if the states of Tripura, Arunachal Pradesh, Sikkim, Meghalaya, Mizoram, Nagaland, Manipur, Orissa and Darjeeling, Dooars, Terai regions of West Bengal.

Kangra valley in Himachal Pradesh, Dehradoon region in Uttar Pradesh

The hilly regions and plains (Annamalai) of Tamil Nadu, parts of the states of Kerala and Karnataka.

• Hindustan Lever Ltd.• Tata Tea Ltd.• Duncans Industries• Wagh Bakri Ltd.• Private Label• Goodricke Group Ltd.• Golden Tips Tea Pvt.• Hasmukhrai & Co• Girnar Food &

Beverages P ltd • Sapat Packaging

Industries

• Tata has come out with an CSR (corporate social responsibility) in Jaaga Raho……. Campaign.

• Sania Mirza drives double digit growth of Tata Tea

ABOUT THE COMPANY

Set up in 1964 as a joint venture with UK-based James Finlay.

Now it is with UK-based Tetley Group. World's second largest global brand. Tata Tea is largest tea brand in India.

CONT’D

Product and brand presence in 40 countries.

Among India's first multinational companies. Plantation activity in India and Sri Lanka. 86% profit from branded tea sale. 14 per cent comes from Bulk Tea, Coffee, and

Investment Income

CONT’D

Tata Tea ranked the second most trusted beverage brand in Brand Equity Survey

Year to date brand volumes grow by 14% compared to the corresponding period of the previous year

CONT’D

Headquarter in Kolkata

Owns 27 tea estates in o Assam

o West Bengal

o Kerala

Catering to all major consumer segments

CONT’D

The company has five major brands in the Indian market

o Tata Tea

o Tetley

o Kanan Devan

o Chakra Gold

o Gemini (Agni)

CONT’D

Tata Tea brand is accorded “Super Brand” recognition in the country.

o 38 C&F agents

o 2500 stockists

o over 1.7 million retail outlets

SEGMENTING

Demographics

o Income

Psychographics

o Lifestyle

o Values

Behavior Segmentation

o Usage

o Loyalties

TARGETING

Income (20,000<…)

Energetic

Knowledgeable

Responsible

Trendy

Ambitious

POSITIONING

“Taste Kaamyabi Ka” was the old positioning statement "of Tata Tea.

Television commercial featured, tennis star “Sania Mirza” and prominent playback singer “Sunidhi Chauhan”

Now They are positioning themselves by the campaign “Jaago Re”.

“ Har subah sirf utho nahi Jaago Re ”

No celebrity is used in this campaign, however they are highlighting general issues.

Taste basis

PEST ANALYSIS

Political Factors o Not any political factor is effecting the Tata Tea.

Economical Factor o Budget o Reduction in Custom Duty

Social o Not able to be sold in all regions because of taste preferences and low income of people.

Technological Factors o Crop declines by 10% due to adverse weather conditions and old farming Technologies.

STRENGTH•MARKET LEADER•BRAND LOYALTY•DISTRIBUTION CHANNELS•INNOVATIVE FLAVOURS FOR INDIAN TASTE BUDS•ADVERTISING STRATEGY

WEAKNESS•TECHNOLOGICAL EFFECTIVENESS•COST CONTROL•HEALTH RELATED ISSUES

OPPORUNITIES•UNEXPLOITED RURAL MARKETS•INCREASING NUMBER OF WORKING YOUTH WHO PREFER TEA•NEED FOR TEA

THREATS•STRONG PRESENCE OF REGIONAL COMPETITORS•COMPETITIVE PRICING

SWOT ANALYSIS OF TATA TEA

Threats• Unilever (Brooke Bond and Lipton) is the clear leader

• Holding over 30% of the market share

• Competition from unpackaged tea – Babe Di Hatti

• Cha bars - out-of-home consumption

• More than 45,000 vending machines in India

• Sell Coffee and soft Drinks

• Malt-based beverages such as Horlicks (GlaxoSmithKline) and Bournvita

(Cadbury Schweppes), are the favourite type of hot drinks in the South .

• Soft drinks such as carbonates

• Persuading many young consumers to migrate from tea to soft drinks.

http://www.euromonitor.com/All_the_tea_in_India

Counterattack• Launched series of campaigns to promote tea as a health drink.

– Celebrities and Scientists invited to endorse the health benefits of tea

• Tata Tea have set up a fund of Rs 200 million to promote tea drinking.

• Tata Tea is the largest vertically integrated tea firm

• From its plantation activity to its packaging and marketing

initiatives.

• Acquisition of the global Tetley brand in 2000 effectively consolidated its

position in the international tea market.

• Company has been the star performer in the global tea industry in recent

years.http://www.euromonitor.com/All_the_tea_in_India

COMPETITIVE ANALYSIS

Biggest competitors are local players and HLL (HUL).

Tata is getting the highest growth in its segment. Use to change its positioning statement according the trends of the

market. Reliable brand.

Customer retention

COMPETITIVE ANALYSIS

TATA TEA• Tata Tea • 5 brands under the main brand • Positioning by “Jaago Re” to all

the age groups• Competing on taste and

aspiration basis • Fastest Growing

HINUSTAN UNILEVER LTD.• 2 Brands under the main brand. o Lipton o Brook Bond • Positioning on youths • Competing on taste and freshness

basis • Highest market share

Future Plans - Sangeeta Talwar (Executive Director –TATA Tea)

• Tata Tea is eyeing a substantial growth in South Asia

– Bangladesh, Sri Lanka and Pakistan

• South Asia - opportunity lay not in tapping a new market but growing in

the existing ones.

• In Bangladesh, market share of Tata is less than five percent.

• In Pakistan, it is less than seven percent.

• The market size in Bangladesh is around 45 million kg and official market

in Pakistan is around 70 million kg.

• It will take us around two years to achieve 10 percent market share in these

two countries.

Cause Based Marketing - Head• Jaago Re Campaign !!!!!

• Tata Tea has joined hands with Janaagraha

– A Bangalore based not-for-profit organisation for this campaign.

• The social campaign is integrated with the main advertising

campaign.

• Objective of the partnership is to motivate Indian youth to

participate actively in the electoral process of the country.

• Campaign revolves around the issue of corruption with a new ad-

line; • 'Ab Se Khilana Bandh, Pilana Shuru'.

Cause Based Marketing - Tail• Pedagogical Objectives

• To analyse, at what stage of brand life cycle company focuses

on intellectual and self-actualization issues.

– Tata Tea positioned itself as a catalyst for social-awakening

through its Jaago Re! campaign.

• To understand Social-Cause Marketing (SCM) and

– Establish the relationship between these initiatives and the

long-term branding initiatives of Tata Tea.

• To differentiate between SCM and CSR initiatives.

Business World

Tata Tea's Rural Marketing Initiative in U.P.

• “Gaon Chalo” - A Rural Marketing Project

• Tata Tea for penetrating rural markets decided to partner with

NGOs.

• For Ashutosh Shukla, 32-year-old youth of Uttar Pradesh’s, was

unemployed, then he got an offer to join Tata Tea’s ‘Gaon Chalo’,

• Shukla struggled initially, but then used his extensive understanding

of the terrain and its people to good effect. Today, he sells as much

as 1,300 kg of packaged tea a month.

• Tata Tea’s Share rose from 18 per cent in January-March 2006 to

21.4 per cent in January-March 2008.

Whom do you buy Tea for? (Tick one)

Myself Family Children

0.21

0.79

0

How often do you have Tea?

What quantity do you usually prefer to buy?

100g 200-250g 500g 1kg

16%

57%

11%

16%

What's the maximum amount you would spend for a tea (100g)

0-10 Rs10-20 20-30 30-40 40-50

17%

11%

16%

28% 28%

Have you ever purchased loose leaf tea?

Yes N0 No but I've wanted to try some

21%

68%

11%

Which is your most preferred channel for purchasing tea?

Grocery Store/RETAIL STORE Super Market/Hyper Store

90%

10%

Through which medium did you come to know about your preferred tea brand?

Hoardings and banners Newspaper and magazines TV/radio Word of mouth others0%

21%

53%

26%

0%

Rank the Tea brands from 1 to ,7 with 1 being least preferred and 5 being most preferred:

How important are the following factors for purchasing a tea?

Do the following reasons influence your consumption of tea?