Tata Tea: Market Survey and Positioning
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Tata Tea: Market Survey and Positioning

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Tata Tea: Market Survey and Positioning Tata Tea: Market Survey and Positioning Presentation Transcript

  • 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 17 Others 3/5/2014 29 Eight o’Clock 3 39 Tata Tea Source: Tata Global Beverages Company Website % 15
  • PRODUCT SEGMENTATION Geographic Demographic Income Group Semi-urban City • Tier 1 and Tier 2 4 3/5/2014 • Middle class (18000 – 125000 pm) Age • 20-40 years Behavioral Decision Roles • Buyer & Decider : Housewife
  • PORTER’S FIVE FORCES Threat of buyer’s growing bargaining power Threat of new entrants • FDI • Untapped rural markets Threat of intense segment rivalry Threat of substitutable products • Coffee • Aerated drinks • Energy drinks 5 3/5/2014 • Taj Mahal • Red Label Special • Unbranded Tea • Other options available • Product differentiation • Large number of consumers Threat of supplier’s growing bargaining power • Large number of producers • Low switching costs
  • 6 3/5/2014 • Flagship brand caters to the popular segment • Brand promises to give “asli taazgi” (Real freshness) Tata Tea Agni • Caters to the premium economy segment • Aroma coupled with a refreshing taste • Blend of 85% CTC and 15% long leaf tea Tata Tea Premium Tata tea Gold SEGMENTATION : INCOME LEVEL • Offering for the economy segment • Stylish superior quality packaging; unmatched in this segment
  • 7 3/5/2014 • High quality Assam CTC Dust teas • Brand in the high quality & high priced Premium Dust tea Market of South India • Theme of Golden touch and Golden woman inspired millions of Consumers across south India Gemini • Principal Market : Tamil Nadu, Kerela, Karnataka, Goa • Specifically sourced from the Kanan Devan Hills • Characterized by its unique taste preferred throughout South India Chakra Gold Kanan Devan SEGMENTATION : REGION WISE • Principal market: Andhra Pradesh, Madhya Pradesh, Chattisgarh, Tamil Nadu and Karnataka • Focus to be a strong regional player in Andhra Pradesh • Positioned as "a strong tea for strong family relations"
  • 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 Soups Mix Lemon Tea Kitchen Towels Protein Powder Maggi Noodles Tea Bags Assam tea Green Tea Red Tea Darjeeling Tea Red Label Special Taj Mahal Organic Tea Flavored Milk Butter Black Tea milk Loose Tea Small tea leaves Soft Drinks Product Form Product Category Generic Budget 9 3/5/2014 Bread, Butter, Cheese Biscuits Namkeen Coffee Jam Energy Drinks Juices Chocolates
  • COMPETITOR ANALYSIS: MARKET SHARE Average Weekly Sales (250 gm packets) Hindustal Unilever Ltd 49% 22% 20% Tata Tea 15 16 13 14 12 Wagh Bakri 10 8 8% Others 4 6 4 2 0 Tata Tea Gold Source: Euromonitor International 10 3/5/2014 Taj Mahal Red Label Special Source: Primary data from Easyday retail store, Raj Nagar
  • COMPETITOR ANALYSIS: PRICING Category Tata tea 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 3/5/2014 Hindustan Unilever Ltd Premium Leaf 11 Price/kg (Rs.) 190-210 NA Agni
  • POSITIONING “Our Tata Tea Gold is the most aromatic tea among all premium tea brands because 15% longer superior quality leaves” Most aromatic tea brand 12 3/5/2014 Superior quality tea leaves Socially responsible
  • 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 (Rs.) Taj Mahal (Rs.) Red Label (Rs.) Wagh Bakri (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 2006 Early 2000’s 15 3/5/2014 Rural distribution initiative – ‘GAAON CHALO’ Communication Campaign based on properties like freshness and flavour Social cause marketing – ‘JAAGO RE’ Campaign Chai Unchai – Trendy tea bars launched in the country Redefining & repositioning ‘Jaago Re’ Campaign
  • 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 Jaago Re Campaign Awareness Tea Consumption Rate 60% 50% 55% 40% 35% 35% 40% 30% 25% 30% 20% 11% 10% 3/5/2014 9% 15% 20% 18 45% 45% 50% 0% 45% 10% 5% 0% Light Medium Heavy Yes, it led to social awakening No, it did not lead to social awakening Not Aware about the campaign
  • MARKET FOR PACKAGED TEA LEAVES IN INDIA Fresh/Energizing 4.00 Taj Mahal Tata Tea Gold Red Label Special Taaza Unbranded Loose Wagh Bakri Tea 3.50 2.50 Slope of Vector = .54 2.00 Flavour 3.00 No Flavour 0.00 0.50 1.00 1.50 2.00 2.50 1.50 1.00 0.50 0.00 Not Fresh/ Energizing 19 3/5/2014 3.00 3.50 4.00
  • 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-tomake-a-difference/ • http://articles.economictimes.indiatimes.com/2007-11-30/news/27677020_1_peterunsworth-percy-siganporia-vitax/2 • http://www.business-standard.com/article/management/tata-tea-s-new-brew109061500022_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-2011-12presentation • http://economictimes.indiatimes.com/tata-global-beveragesltd/directorsreport/companyid-12929.cms 21 3/5/2014
  • Thank You 22 3/5/2014