Table of Contents
Rationale behind Choosing this Brand________________________8 Market Research________________________________________10
Competition in Tea Industry_______________________________13 SWOT Analysis_________________________________________17
Marketing Action Programs_______________________________23
Customer Survey (Appendix)____________________________30
1. Situation Analysis
About Tata Tea
Tata Tea first came into the existence in 1964 as a joint venture between UK-based James Finlay and Company and Tata Tea to develop a value-added product. At present day Tata Tea Group of Companies is the second largest global brand in tea industry. The group comprises Tata Tea Inc. in India and UK based Tetley Group. These groups came together in 1992 to form a JV and subsequently Tetley was acquired by Tata Tea to form a major market force. The group has presence in more than 40 countries with significant market share. Operations in India comes under the purview of Tata Tea where as the overseas operations are controlled by Tetley Group. Both the brands are distributed as per the location. As Tata is a trusted name in India, Tata tea is pushed in the Indian market and markets where there are substantial Indians. Tetley forms the company's global face and the largest markets focus on the Tetley brand. There are few markets where both the brands coexist, in such locations Tetley is marketed as the premium brand.
Tata Tea group of companies get 86% of the total revenues from the worldwide business of branded tea whereas the 14% comes from other sources such as Bulk Tea, Coffee, and Investment Income. Two third of the Tata Tea Ltd. revenues come from Tetley group businesses. We will be primarily focusing on the global Tata Tea market with an add-on on Indian market in this report. Current Status
Tata Tea global number two in tea
* Tata Tea, part of the gigantic Indian Tata Group, is the number six hot drinks company in the world, with a value market share of nearly2%. * The company’s hot drinks presence is chiefly in tea, in which it is the global number two. It is a mass-market player. * Tata Tea has a broad regional, if not global profile, although its presence is concentrated in a relatively small number of markets, led by India and the UK. Tata Tea targets wider beverage future
* The company has embarked on an aggressive acquisition-led growth strategy in recent years, focusing not only on hot drinks but also soft drinks. * Tata Tea has made hot drinks purchases in the US, the Czech Republic and Poland, while it has also pursued the development of its bottled water and RTD beverage portfolios. * Organic growth at Tata Tea has been driven by a change in focus from volumes to a better product mix, including more premium launches.
Tata Tea is basically working for the right international mix. The focus is on having a common marketing systems and creating a global database for market and data collection. Thus, enabling a better control over the market parameters. Tata Tea is actively pursuing diversification of its product portfolio to include green tea, rooibos, fruit and herbal products to reduce its dependence on black tea and to develop into a beverage company. In the forecast period, the company is expected to look out for acquisitions and launch new products in bottled water and RTD tea. In the forecast period, Tata Tea is expected to strengthen its presence in premium tea by launching wellness products such as Tetley green tea, specialty estate teas as well as flavored tea, targeting high-end consumers. Simultaneously,...
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