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  1. 1. History of Tea<br />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 ShenNong, 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. <br />
  2. 2. Tea Production Process<br />Picking only 2 leaves and a bud<br />Remove as much moisture as possible from the Tea<br />1<br />2<br />5<br />3<br />Put leaf info roller machines which twist, turn & break it.<br />Leaf is exposed to hot air from air blowers<br />4 <br />Leaf is oxidise by exposing it to air in large tray till it eventually turns Black<br />
  3. 3. Tea Market Overview<br />India is the largest tea producing and consuming country in the world.<br />
  4. 4. The East and North east<br />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. <br />Kangra valley in Himachal Pradesh, Dehradoon region in Uttar Pradesh<br />The hilly regions and plains (Annamalai) of Tamil Nadu, parts of the states of Kerala and Karnataka. <br />The North <br />The South<br />
  5. 5. Top 10 Tea Companies <br /><ul><li>Hindustan Lever Ltd.
  6. 6. Tata Tea Ltd.
  7. 7. Duncans Industries
  8. 8. Wagh Bakri Ltd.
  9. 9. Private Label
  10. 10. Goodricke Group Ltd.
  11. 11. Golden Tips Tea Pvt.
  12. 12. Hasmukhrai & Co
  13. 13. Girnar Food & Beverages P ltd
  14. 14. Sapat Packaging Industries</li></li></ul><li>
  15. 15. Advertising <br />Tata has come out with an CSR (corporate social responsibility) in Jaaga Raho……. Campaign.<br />Sania Mirza drives double digit growth of Tata Tea<br />
  16. 16. ABOUT THE COMPANY<br /><ul><li>Set up in 1964 as a joint venture with UK-based James Finlay.
  17. 17. Now it is with UK-based Tetley Group.
  18. 18. World's second largest global brand.
  19. 19. Tata Tea is largest tea brand in India.</li></li></ul><li>CONT’D<br /><ul><li>Product and brand presence in 40 countries.
  20. 20. Among India's first multinational companies</li></ul>. <br /><ul><li>Plantation activity in India and Sri Lanka.
  21. 21. 86% profit from branded tea sale.
  22. 22. 14 per cent comes from Bulk Tea, Coffee, and Investment Income</li></li></ul><li>CONT’D<br /><ul><li> Tata Tea ranked the second most trusted beverage brand in Brand Equity Survey
  23. 23. Year to date brand volumes grow by 14% compared to the corresponding period of the previous year </li></li></ul><li>CONT’D<br /><ul><li>Headquarter in Kolkata
  24. 24. Owns 27 tea estates in </li></ul> o Assam <br /> o West Bengal <br /> o Kerala <br /><ul><li> Catering to all major consumer segments </li></li></ul><li>CONT’D<br /><ul><li> The company has five major brands in the Indian market </li></ul> o Tata Tea <br /> o Tetley <br /> o KananDevan<br /> o Chakra Gold <br /> o Gemini (Agni) <br />
  25. 25. CONT’D<br /><ul><li>Tata Tea brand is accorded “Super Brand” recognition in the country. </li></ul> o 38 C&F agents <br /> o 2500 stockists<br /> o over 1.7 million retail outlets <br />
  26. 26. SEGMENTING<br /><ul><li>Demographics </li></ul> o Income <br /><ul><li> Psychographics </li></ul> o Lifestyle <br /> o Values <br /><ul><li> Behavior Segmentation </li></ul> o Usage <br /> o Loyalties <br />
  27. 27. TARGETING<br /><ul><li>Income (20,000<…)
  28. 28. Energetic
  29. 29. Knowledgeable
  30. 30. Responsible
  31. 31. Trendy
  32. 32. Ambitious </li></li></ul><li>POSITIONING <br /><ul><li>“Taste Kaamyabi Ka” was the old positioning statement "of Tata Tea.
  33. 33. Television commercial featured, tennis star “SaniaMirza” and prominent playback singer “SunidhiChauhan”
  34. 34. Now They are positioning themselves by the campaign “Jaago Re”.
  35. 35. “ HarsubahsirfuthonahiJaago Re ”
  36. 36. No celebrity is used in this campaign, however they are highlighting general issues.
  37. 37. Taste basis </li></li></ul><li>PEST ANALYSIS<br /><ul><li> Political Factors </li></ul> o Not any political factor is effecting the Tata Tea. <br /><ul><li> Economical Factor </li></ul> o Budget <br /> o Reduction in Custom Duty <br /><ul><li> Social </li></ul> o Not able to be sold in all regions because of taste preferences and low income of people. <br /><ul><li> Technological Factors </li></ul> o Crop declines by 10% due to adverse weather conditions and old farming Technologies. <br />
  39. 39. Threats<br />Unilever (Brooke Bond and Lipton) is the clear leader<br />Holding over 30% of the market share<br />Competition from unpackaged tea – Babe Di Hatti<br />Cha bars - out-of-home consumption<br />More than 45,000 vending machines in India<br />Sell Coffee and soft Drinks <br />Malt-based beverages such as Horlicks (GlaxoSmithKline) and Bournvita (Cadbury Schweppes), are the favourite type of hot drinks in the South .<br />Soft drinks such as carbonates <br />Persuading many young consumers to migrate from tea to soft drinks. <br />http://www.euromonitor.com/All_the_tea_in_India<br />
  40. 40. Counterattack<br />Launched series of campaigns to promote tea as a health drink.<br />Celebrities and Scientists invited to endorse the health benefits of tea<br />Tata Tea have set up a fund of Rs 200 million to promote tea drinking. <br />Tata Tea is the largest vertically integrated tea firm <br />From its plantation activity to its packaging and marketing initiatives.<br />Acquisition of the global Tetley brand in 2000 effectively consolidated its position in the international tea market.<br />Company has been the star performer in the global tea industry in recent years.<br />http://www.euromonitor.com/All_the_tea_in_India<br />
  41. 41. COMPETITIVE ANALYSIS<br /><ul><li>Biggest competitors are local players and HLL (HUL).
  42. 42. Tata is getting the highest growth in its segment.
  43. 43. Use to change its positioning statement according the trends of the market.
  44. 44. Reliable brand.
  45. 45. Customer retention</li></li></ul><li>COMPETITIVE ANALYSIS<br />TATA TEA<br />Tata Tea <br />5 brands under the main brand <br />Positioning by “Jaago Re” to all the age groups<br />Competing on taste and aspiration basis <br />Fastest Growing<br />HINUSTAN UNILEVER LTD.<br />2 Brands under the main brand. <br /> o Lipton <br /> o Brook Bond <br /><ul><li>Positioning on youths </li></ul>Competing on taste and freshness basis <br /> Highest market share<br />
  46. 46. Future Plans - SangeetaTalwar (Executive Director –TATA Tea)<br />Tata Tea is eyeing a substantial growth in South Asia <br />Bangladesh, Sri Lanka and Pakistan<br />South Asia - opportunity lay not in tapping a new market but growing in the existing ones.<br />In Bangladesh, market share of Tata is less than five percent. <br />In Pakistan, it is less than seven percent. <br />The market size in Bangladesh is around 45 million kg and official market in Pakistan is around 70 million kg.<br />It will take us around two years to achieve 10 percent market share in these two countries.<br />
  47. 47. Cause Based Marketing - Head<br />JaagoRe Campaign !!!!! <br />Tata Tea has joined hands with Janaagraha <br />A Bangalore based not-for-profit organisation for this campaign.<br />The social campaign is integrated with the main advertising campaign.<br />Objective of the partnership is to motivate Indian youth to participate actively in the electoral process of the country. <br />Campaign revolves around the issue of corruption with a new ad-line; <br />'Ab Se KhilanaBandh, PilanaShuru'.<br />
  48. 48. Cause Based Marketing - Tail<br />Pedagogical Objectives<br />To analyse, at what stage of brand life cycle company focuses on intellectual and self-actualization issues.<br />Tata Tea positioned itself as a catalyst for social-awakening through its Jaago Re! campaign. <br />To understand Social-Cause Marketing (SCM) and <br />Establish the relationship between these initiatives and the long-term branding initiatives of Tata Tea.<br />To differentiate between SCM and CSR initiatives.<br />
  49. 49. Tata Tea's Rural Marketing Initiative in U.P.<br />“GaonChalo” - ARural Marketing Project <br />Tata Tea for penetrating rural markets decided to partner with NGOs.<br />For AshutoshShukla, 32-year-old youth of Uttar Pradesh’s, was unemployed, then he got an offer to join Tata Tea’s ‘GaonChalo’, <br />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.<br />Tata Tea’s Share rose from 18 per cent in January-March 2006 to 21.4 per cent in January-March 2008.<br />Business World<br />
  50. 50. Whom do you buy Tea for? (Tick one)<br />
  51. 51. How often do you have Tea?<br />
  52. 52. What quantity do you usually prefer to buy?<br />
  53. 53. What's the maximum amount you would spend for a tea (100g)<br />
  54. 54. Have you ever purchased loose leaf tea?<br />
  55. 55. Which is your most preferred channel for purchasing tea?<br />
  56. 56. Through which medium did you come to know about your preferred tea brand?<br />
  57. 57. Rank the Tea brands from 1 to ,7 with 1 being least preferred and 5 being most preferred:<br />
  58. 58. How important are the following factors for purchasing a tea?<br />
  59. 59. Do the following reasons influence your consumption of tea?<br />