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11109 tgb

  1. 1. Tata Global Beverages Challawar Mayur 11109 TAPMI Powerpoint Templates Page 1
  2. 2. About Tata Global Beverages• Global non-alcoholic beverages company from the house of Tata’s• Founded in 1964 as a joint venture with UK based Finlay group as Tata Tea• Head quartered in Kolkata and has offices across the world• Subsidiaries include Tata Coffee, Tetley and Good Earth Tea• Offerings include tea, coffee, dairy products and mineral water• Has global presence across 40 countries in Asia, Europe, Americas and Australia Powerpoint Templates Page 2
  3. 3. Vision and Mission• Vision Tata Global Beverages is today an integrated beverage business that has set out on a journey to become the global leader in branded ‘good for you’ beverages• Mission We believe passionately in making the world a better place through life-enhancing sustainable hydration - and it’s our mission to make this a reality• Apart from the vision and mission of the company, Tata Global Beverages follows code of conduct, vision and mission of Tata Group Powerpoint Templates Page 3
  4. 4. Past Scenario’s & strategies• Started as a joint venture with Finlay group as Tata Finlay in 1964, Tata was exporting ‘tea leaves’ from its tea plantations in India to Finlay for processing• Tata took over the venture after gaining expertise in tea processing and rebranded itself as ‘Tata Tea’• From then on Tata acquired many other beverages companies across the globe for global expansion• To name a major acquisitions - Tetley in 2000, JEMCA in 2006• Thus going global was one of the chief objectives of Tata Tea• Went ahead with expansion/growth strategy, to capture the tea market Powerpoint Templates Page 4
  5. 5. How acquiring helped Tata – What was the strategy behind acquisition?• Tata Tea’s major weakness – ‘Not a global player and was limited only to few countries’ was converted into strength by acquiring ‘Tetley’ which had market/presence in 40 countries• The portfolio of products increased after acquisition• Tata Tea sold ‘Tetley’ as a premium/high value tea in Indian market apart from its domestic Indian brands , thus Tata Tea created a sense of differentiation, in terms of providing premium tea to middle and high class customer base• This differentiation made it unique from its major competitor – Hindustan Unilever Ltd• Though the acquisition was considered as highly overvalued in 2000, 10 years down the line ,Tata global beverages(Tata Tea + Tetley+ subsidiaries) is the second largest tea manufacturer and distributor in the world, making it one of the most profitable companies under Tata group Powerpoint Templates Page 5
  6. 6. Tata Global Beverages – Current scenario till 2012SWOT of Tata Global BeveragesStrengths-Presence across more than 40+ countries-Has differentiated products in tea, coffee and mineral water areas, thus catering to different segments-Has large base of tea and coffee plantations in India, which are the largest in the world-Part of the Tata group, a $83 billion Indian multinational, which is famous for risk taking and acquisitionsWeakness-Mostly confined to selling tea and coffee brandsOpportunities-Immense opportunity to enter into a new area like selling ready made beverages through retail chains , similar to the way of Café Coffee Day(CCD) Powerpoint Templates Page 6
  7. 7. Tata Global Beverages – Current scenario till 2012Threats-Tough competition from Hindustan Unilever in the current business-Also high competition from local tea selling vendorsWhat did Tata Global Beverages do in 2012?-Announced/Formed a joint venture(50:50) with Starbucks on 30th January 2012 to sell ready made tea and coffee through Starbucks Café to be opened across 10-12 locations in 2012-13.The café name was branded as ‘Tata Starbucks’. Thus Tata Global Beverages went for diversification and differentiated from its main rival HULMain competitors in this area-Café Coffee day, an already established player and leader in the café industry Powerpoint Templates Page 7
  8. 8. SWOT for Tata Global Beverages + Starbucks joint ventureStrengths-Starbucks, a leader in café industry across the world-Chance for Starbucks to enter into Indian market-Opportunity for Tata to differentiate and diversify by utilizing the Starbucks technology in this new areaWeaknessStarbucks being famous for Italian coffee varieties, might have to study Indian market thoroughlyOpportunities-Chance to tap high potential Indian market/growing middle class-Win-Win situation for Tata Global Beverages as well as StarbucksThreats-Presence of already established players and presence of many small and large cafes in Indian cities and towns Powerpoint Templates Page 8
  9. 9. Industry analysis – Entry of Tata global beverages- Starbucks into the café/beverages segment Suppliers Bargaining power: is less as each vendor(CCD or Barista or cafes) get tea powder/coffee in abundance. Each entity owns tea and coffee farms ,hence supplier power is less Threat of new entrants: Threat of new entrants is Industry rivalry: Buyer Bargaining not very high as it is still Industry currently power: very high as the field to be explored in dominated by Café buyer has many India, however owning tea Coffee choice/portfolio of and coffee farms, initial Day(CCD),Barista products/may investment for processing and other local vendors selling more tea and coffee processing cafes, competition or less similar is very high is intense products at an affordable cost Threat of substitutes: Many substitutes, intense competition from other beverages like cola, lime products(Coca cola, Sprite etc) Powerpoint Templates Page 9
  10. 10. ThanksPowerpoint Templates Page 10