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 freshness of its products. Companies use different strategies to push their products.
MICRO ENVIRONMENTAL FACTORS Micro Environmental factors affect the firm’s ability to serve customers. These factors are as follows: Employees There are around 56,000 employees working for Tata Tea. Quality of employees determines how well the company will succeed in achieving targets. The efficiency of employees also depends on the satisfaction they get. Apart from the traditional perks and rewards that a normal company gives to an employee, Tata Tea has a workplace HIV/AIDS policy for its employees. The necessity of a workplace HIV/AIDS policy for Tata Tea Ltd. was significantly felt because Tata Tea, being an agro-based industry, is dependent on its huge manpower resources to sustain its operations. Suppliers The qualities of suppliers have a very important role as it’sindirectly going to affect the manufacturers. Tata Tea Ltd. is the second largest supplier of branded tea in the world. Teas for their various brands are sourced primarily from their own estates spread across Assam, Dooars and Kerala. All surplus requirements are met through the Auction centres located at Guwahati, Calcutta, Siliguri, Cochin, Conoor and Coimbatore. Competitors Marketing Intermediaries Tata Tea is the largest vertically integrated tea firm in the world, from its plantation activity through to its packaging and marketing initiatives. Customers
MACRO ENVIRONMENTAL FACTORS Macro Environmental factors do not affect the operations of a company and its relationship with its customers and suppliers, directly and indirectly. However, they affect the company in the long run. These factors are as follows:
DEMOGRAPHIC Population Age Mix: Different age mix that attract the attention of the marketers are as follows: Infants – Infants are no where the target customer of Tata Tea. Children (School going – teens)– Now a days,...