Tata Tea


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This presentation will show you the MarCom plan of Tata Tea.

Published in: Economy & Finance, Business
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Tata Tea

  1. 1. MarCom Plan for Tata Tea Prsented by: Tarun Kumar Arya
  2. 2. About The Company <ul><li>Set up in 1964 as a joint venture with UK-based James Finlay. </li></ul><ul><li>Now it is with UK-based Tetley Group . </li></ul><ul><li>World's second largest global brand. </li></ul><ul><li>Tata Tea is largest tea brand in India. </li></ul>
  3. 3. About The Company <ul><li>Product and brand presence in 40 countries. </li></ul><ul><li>Among India's first multinational companies. </li></ul><ul><li>Plantation activity in India and Sri Lanka. </li></ul><ul><li>86% profit from branded tea sale. </li></ul><ul><li>14 per cent comes from Bulk Tea, Coffee, and Investment Income. </li></ul>
  4. 4. About The Company <ul><li>Tata Tea ranked the second most trusted beverage brand in Brand Equity Survey </li></ul><ul><li>Year to date brand volumes grow by 14% compared to the corresponding period of the previous year </li></ul>
  5. 5. About the Company <ul><li>Headquarter in Kolkata </li></ul><ul><li>owns 27 tea estates in </li></ul><ul><ul><li>Assam </li></ul></ul><ul><ul><li>West Bengal </li></ul></ul><ul><ul><li>Kerala </li></ul></ul><ul><li>Catering to all major consumer segments </li></ul>
  6. 6. About the Company <ul><li>The company has five major brands in the Indian market </li></ul><ul><ul><li>Tata Tea </li></ul></ul><ul><ul><li>Tetley </li></ul></ul><ul><ul><li>Kanan Devan </li></ul></ul><ul><ul><li>Chakra Gold </li></ul></ul><ul><ul><li>Gemini (Agni) </li></ul></ul>
  7. 7. About the Company <ul><li>Tata Tea brand is accorded &quot;Super Brand&quot; recognition in the country. </li></ul><ul><ul><li>38 C&F agents </li></ul></ul><ul><ul><li>2500 stockists </li></ul></ul><ul><ul><li>over 1.7 million retail outlets </li></ul></ul>
  8. 8. Segmenting <ul><li>Demographics </li></ul><ul><ul><li>Income </li></ul></ul><ul><li>Psychographics </li></ul><ul><ul><li>Lifestyle </li></ul></ul><ul><ul><li>Values </li></ul></ul><ul><li>Behavior Segmentation </li></ul><ul><ul><li>Usage </li></ul></ul><ul><ul><li>Loyalties </li></ul></ul>
  9. 9. Targeting <ul><li>Income (20,000<…) </li></ul><ul><li>Energetic </li></ul><ul><li>Knowledgeable </li></ul><ul><li>Responsible </li></ul><ul><li>Trendy </li></ul><ul><li>Ambitious </li></ul>
  10. 10. Positioning <ul><li>&quot;Taste Kaamyabi Ka&quot; was the old positioning statement of Tata Tea. </li></ul><ul><li>Television commercial featured, tennis star &quot;Sania Mirza&quot; and prominent playback singer &quot;Sunidhi Chauhan&quot;. </li></ul><ul><li>Now They are positioning themselves by the campaign “Jaago Re”. </li></ul><ul><li>“ Har subah sirf utho nahi Jaago Re ” </li></ul><ul><li>No celebrity is used in this campaign, however they are highlighting general issues. </li></ul><ul><li>Taste basis </li></ul>
  11. 11. PEST Analysis <ul><li>Political Factors </li></ul><ul><ul><li>Not any political factor is effecting the Tata Tea. </li></ul></ul><ul><li>Economical Factor </li></ul><ul><ul><li>Budget </li></ul></ul><ul><ul><li>Reduction in Custom Duty </li></ul></ul><ul><li>Social </li></ul><ul><ul><li>Not able to be sold in all regions because of taste preferences and low income of people. </li></ul></ul><ul><li>Technological Factors </li></ul><ul><ul><li>Crop declines by 10% due to adverse weather conditions and old farming Technologies. </li></ul></ul>
  12. 12. SWOT Analysis Strengths Weaknesses Opportunities Threats Market leader Technological effectiveness Unexploited rural markets Strong presence of regional competitors Brand loyalty Cost control Increasing number of working youth who prefer tea Competitive pricing Distribution channels Health related issues Need for tea Innovative flavours for Indian taste buds Advertising strategy
  13. 13. Competitive Analysis <ul><li>Biggest competitors are local players and HLL (HUL). </li></ul><ul><li>Tata is getting the highest growth in its segment. </li></ul><ul><li>Use to change its positioning statement according the trends of the market. </li></ul><ul><li>Reliable brand </li></ul><ul><li>Customer retention </li></ul>
  14. 14. Competitive Analysis <ul><li>Tata Tea </li></ul><ul><li>5 brands under the main brand </li></ul><ul><li>Positioning by “Jaago Re” to all the age groups </li></ul><ul><li>Competing on taste and aspiration basis </li></ul><ul><li>Fastest Growing </li></ul><ul><li>Hindustan Unilever Ltd. </li></ul><ul><li>2 Brands under the main brand. </li></ul><ul><ul><li>Lipton </li></ul></ul><ul><ul><li>Brook Bond </li></ul></ul><ul><li>Positioning on youths </li></ul><ul><li>Competing on taste and freshness basis </li></ul><ul><li>Highest market share </li></ul>
  15. 15. Marketing Objective <ul><li>Tata tea’s current sale is Rs. 809 crore for year 2006-07. </li></ul><ul><li>In the same year their profit increased by 22%. </li></ul><ul><li>For year 2007-08, their marketing objective is to increase the sale by Rs. 900 crore. </li></ul><ul><li>Now they want to increase their profit by 30% by decreasing their operations cost. </li></ul><ul><li>To decrease their operation cost, they have adopted a lot of new technologies. </li></ul>
  16. 16. Source : All India, AC Nielsen Retail Audit , November 2007 Value Market share ALL FIGS are Moving Annual Totals +3% +2% -7% -6%
  17. 17. Turnover Mix
  18. 18. Marcom Plan <ul><li>Company has unexploited rural market. </li></ul><ul><li>To make Tata tea no. 1 brand in India. </li></ul><ul><li>Target audience is middle class and upper middle class people. </li></ul><ul><ul><li>Income (20,000<…) </li></ul></ul><ul><ul><li>Energetic </li></ul></ul><ul><ul><li>Knowledgeable </li></ul></ul><ul><ul><li>Responsible </li></ul></ul><ul><ul><li>Trendy </li></ul></ul><ul><ul><li>Ambitious </li></ul></ul>
  19. 19. Marcom Plan <ul><li>Marcom Mix </li></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Sales Promotion </li></ul></ul><ul><ul><li>Public Relations </li></ul></ul><ul><li>Message strategy </li></ul><ul><ul><li>Messages in Hindi or regional languages and English. </li></ul></ul><ul><ul><li>Media selection </li></ul></ul><ul><ul><li>Compelling benefits </li></ul></ul>
  20. 20. Marcom Plan <ul><li>Media </li></ul><ul><ul><li>TV </li></ul></ul><ul><ul><li>Print </li></ul></ul><ul><ul><li>POP/POS </li></ul></ul><ul><ul><li>Banners </li></ul></ul>
  21. 21. The Marketing Background Worksheet Launches Jaago Re, a holistic 360 degree advertising campaign using the unique route of social awakening Marketing Communications 6 Achieve market and thought leadership for branded tea in India. Marketing Objectives 5 Usages, Taste and Loyalty Competitive Evaluation 4 From Packaged Tea Market Source of business 3 In FMCG Market with local players and HUL. Market Assessment 2 Packaged Tea Product Descriptions 1 Questions Key Considerations S. No.
  22. 22. The Key Target Audience Worksheet <ul><li>Since it is a FMCG product, the sales of the product will come from middle class and upper class households. </li></ul><ul><li>Marketing objective require trail and continued uses. For that we can choose POP marketing and small packs distribution through magazines and other mediums. </li></ul><ul><li>Decision makers are house wives. </li></ul>
  23. 23. The Decision Grid Customer Family User owner House wives Purchaser owner House wives Decider Promotions and margins Retailers Influencer Demand, Customers Ads, Displays Initiator Trade Consumer Role Target Audience
  24. 24. The Communication Strategy Worksheet <ul><li>Communication Objective </li></ul><ul><ul><li>Make Tata tea no. 1 brand </li></ul></ul><ul><ul><li>Increase the sales </li></ul></ul><ul><ul><li>Social Awaking </li></ul></ul><ul><li>Brand Attitude Strategy </li></ul><ul><li>Want People to do after communication </li></ul><ul><ul><li>Buy, re-buy more </li></ul></ul><ul><ul><li>Perceive Tata Tea as no. 1 Brand. </li></ul></ul><ul><ul><li>Awake socially </li></ul></ul>
  25. 25. The Behavior Sequence Model --------------- Purchase Facilitation Value ads and promotions Purchase Facilitation How is it likely to occur --------------- Promotions ----------------------- Purchase Intention Timing of purchase --------------- Purchase Facilitation -------------------------- Brand Awareness Where purchase is likely to occur Post Purchase Evaluation Brand Attitude Brand Awareness Category Need Decision roles involved Usage Purchase Information search Need Arousal Consideration at each stage Decision Stages
  26. 26. The IMC Task Grid Loyalty Programs Promotions Family Re-purchase Usage POPs POPs House wives Brand Preference Purchase TVCs, Prints Media, POPs TV commercial, POP House wives Brand Awareness and recognition Information Search/ Evaluation Broachers, trial packs Trials by News Paper etc. Family Need creation Need Arousal IMC Options Where and When Target Audience Communication Task Decision Stage
  27. 27. Consumers define the success of Tata Tea THANK YOU