Marketing Report on Tata Tea
EXECUTIVE SUMMARY {draw:frame} The major point in the relative growth of Tata Tea is that of Efficient Brand Differentiation & Strong Strategic Planning. The market share of Tata Tea in comparison with HUL on the basis of the Value can be shown below: {draw:frame}
ANALYSIS OF MICRO, MACRO AND GLOBAL ENVIRONMENT COMPETITIVE STRUCTURE The number of firms in an industry or those supplying substitute products affects the strength of competition. The competitive structure in which Tata Tea is operating is Monopolistic Competition. Features of Monopolistic Competition structure are as follows: Many firms compete with one another. Each firm has a relatively small market share. The tea market is highly consolidated in In.dia, with HLL and Tata Tea accounting for almost half of retail value sales. According to the statistics available from varied different sources on net, HLL (Brooke Bond and Lipton) is the clear leader, holding over 24.5% of the market share, while Tata Tea (Tata) trails it with almost 20.5%. The remainder of the market is far more fragmented and shared between numerous small players. Marketers try to differentiate their offer from that of the competitors by varying their marketing mix. Firms strive to make their products and services appear unique to the customers. According to Business Standard dated November 19, 2002, Tata Tea brand underwent a makeover in the look and feel departments, its polypack form, in which Tata Tea had been traditionally packed, sported a new metallic finish. There was a change in price point too. Tata Tea sells different blends according to the regional tastes in India. Tata Tea’s products are sold throughout India through a vast network of 600,000 outlets situated in larger villages, towns and cities. It launched a “video on wheels” program (a truck with a video that moved through rural areas showing commercials and selling packet tea). Tata Tea is also known for the genuine
ANALYSIS OF MICRO, MACRO AND GLOBAL ENVIRONMENT COMPETITIVE STRUCTURE The number of firms in an industry or those supplying substitute products affects the strength of competition. The competitive structure in which Tata Tea is operating is Monopolistic Competition. Features of Monopolistic Competition structure are as follows: Many firms compete with one another. Each firm has a relatively small market share. The tea market is highly consolidated in In.dia, with HLL and Tata Tea accounting for almost half of retail value sales. According to the statistics available from varied different sources on net, HLL (Brooke Bond and Lipton) is the clear leader, holding over 24.5% of the market share, while Tata Tea (Tata) trails it with almost 20.5%. The remainder of the market is far more fragmented and shared between numerous small players. Marketers try to differentiate their offer from that of the competitors by varying their marketing mix. Firms strive to make their products and services appear unique to the customers. According to Business Standard dated November 19, 2002, Tata Tea brand underwent a makeover in the look and feel departments, its polypack form, in which Tata Tea had been traditionally packed, sported a new metallic finish. There was a change in price point too. Tata Tea sells different blends according to the regional tastes in India. Tata Tea’s products are sold throughout India through a vast network of 600,000 outlets situated in larger villages, towns and cities. It launched a “video on wheels” program (a truck with a video that moved through rural areas showing commercials and selling packet tea). Tata Tea is also known for the genuine
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