I bppt (1)

Presented By

Vinay Chembil 29

Namrata Hire 52

Neha Jagare 60

Kishor Nikam 107

INTRODUCTION Indian multinational non-alcoholic beverages company

Headquartered in Kolkata, West Bengal, India

Subsidiary of Tata Group

ABOUT TATA GLOBAL BEVERAGES

PRODUCTS BY TATA BEVERAGES LTD. Tea

Coffee

Water

STRATEGY Big Ambition

Come a long way

Going Global

Focus on Product Innovation Building Global Brands Success in new channels and more countries Greater efficiency

STRUCTURE

1964

• Tata creates alliance with India Tea giant James Finlay to form Tata Finlay

1976

• Tata takes over the production and marketing of James Finlay

1983

• Tata Tea is born, James Finlay is bought out

1991

• Tata Tea enters brands business

1993

• JV with Allied Lyons plc, Tata Tetley established

2000

• Tata Tea acquires Tetley Group Ltd.

HISTORY

CONTD.2005

• Tetley Group acquires Good Earth, USA

2006

• Group Acquires 8 O’Clock Coffee, USA• Tetley Group Acquires Jemca, in Czech Republic• Tetley Group acquires 33% share in Joekels Tea, South Africa

2007

• Investment in Mount Everest Mineral Water (MEMW) which owns the Himalayan Water Brand

2012

• JV with Starbucks• 8 O’Clock signs agreement with Green Mountain Coffee Roasters Inc.

BRANDS Tetley

Tata Tea

Good Earth

Eight O’Clock Coffee

Himalayan

Tata Gluco Plus

Tata Starbucks

Grand

Vitax

Jemca

Tata Coffee

Laagar

Tata Water Plus

DOMESTIC MARKET

DOMESTIC BUSINESS

Manufactures 70 million kilograms of tea in India

Controls 54 tea estates in India and Shri Lanka

Largest manufacturer of Assam Tea and Darjeeling Tea

Second-largest manufacturer of Ceylon Tea

CONTD. Five brands in India

Tata Tea Tetley Kanan Devan Chakra Gold Gemini

100% export –oriented unit manufacturing instant tea in Munnar, Kerala

SWOTANALYSIS

Strength Weaknesses Opportunities Threats

One of the larges Tea Companies

Technological Effectiveness

Unexplored Rural Market

Strong presence of regional competitors

Brand Loyalty Competitive Pricing

Distribution Channels

Indian Flavours for Indian Taste

Buds

Advertising Strategy

GLOBAL PRESENCE Flagship brand Tetley

65% of revenue comes from overseas market

Europe and West Asia contributes to about 30-34% of total revenues

In the coffee segment Canada, Australia and America fares well than European Market

Tata coffee exports green well as high quality premium beans to number of regions

GLOBAL OPERATIONSThree primary focused business units, each headed by a Regional

President

Responsible for their own p & l ,Balance sheet and business plan

Linked by common capabilities, culture and global strategy

Regions are consumer driven and market focused

Senior management team is responsible for setting and driving global strategy

TATA GLOBAL BEVERAGES AT U.K Tetley was 1st to introduce the tea bag in U.K in 1953

Tata Global Beverages acquired Tetley group in 2000 at £271 million leveraged buyout

Employee base around:695(excluding at plantation owners)

2nd biggest selling tea brand in U.K

TEA TIME Afternoon “cuppa” remains staple of most of people’s diet in U.K

Over 85% households drink tea

Tea accounts 1/3rd of all drinks consumed in U.K

There is keen competition in the “Brand Driven tea catagory”

PRODUCTSIN U.K.

MARKET SHARE

27

2413

11

6

19

Percentage market Share

Tetley

PG Tips

Premier Food

Associated British Food

Betty's & Taylor's

all others

OPERATIONS

Keeping Tetley foremost in the consumers mind is core strategy

Multi media campaigns are used

Tetley is also exploring social media to achieve customer engagement

Using social media provides cost effective way to keep in touch with the consumers

Facebook page : “Tetley Teafolk”

Innovative campaigns like Tetley’s Farmers First Hand

Strengths1.Wide Variety Of non-alcoholic beverages2.Continuous innovation3.Consumer oriented4.Good quality of product5.Wider product offering

Weakness1.Technological effectiveness2. Cost control

Opportunities

1.The tea trend in UK 2.Compettive position in UK3.Adapting to market demands

Threats

1.The changing trend in consumer needs e.g. black tea to green tea2.Competitors like PG Tips3.Other beverages as substitutes

SWOTANALYSIS

Technological 1.Innovative customized approach2.Flavored teas

poitical Fair tradeApproach is positive

legal Labor lawsEnvironmental laws

social Tea as important beverageHealth benefitsPESTLE

ANALYSIS

FIVE FORCE THEORY

Threat from new entrants1.Product

innovations in market

2.New variety of beverages like

tamarind teas ,fruit flavored beverages

are may gain popularity

Bargaining power of buyers

1.Ease to buy from variety of sources

2.Online comparing and buying

Suppliers Bargaining Power1.Low switching

cost

Substitutes1.Soft drinks2.Fever tree ginger3.Lemongrass tonic

Competitors1.PG Tips2.Premier Food3.Associated British Food4.Betty’s & Taylor’s

OPERATING PERFORMANCE HIGHLIGHTS

WINNING MOMENTS IN 2013-14

1.India - tea : strong branded tea topline sales performance versus in a slowing market.

2.Australia : Significant bottom-line improvement continues.

3.USA : continuing improvement in profitability of Eight O’Clock coffee

4.USA & Canada : Eight O’Clock coffee K-cups

& Tetley Tassimo discs make excellent headway.

CONTD.

5.India : “Starbucks – a Tata Alliance” expands to 27 stores till

date. Expands to Pune during the quarter. Excellent reception by

consumers.

6.UK – strong performance by Teapigs - Super Premium Brand

7.Strong performance in France and Czech Republic

8.Tetley launch in Kuwait has done exceptionally well.

CONTD.

10.Water vertical in India significantly improves performance.

11.India - coffee : good performance by plantations.

12.Associate tea plantation companies in India : very good

performance

13.Cost interventions result in significant savings.

SUSTAINABILITY INITIATIVES Tata Global Beverages is a leader in CDLI (climate disclosure leadership index) India 2013. Reduction of carbon intensity by 22% in the past 2 years. We are ranked 1st in the consumer Staples sector and 6th overall.

Tata Global Beverages joins the India Sustainability tea programme. – Pilot projects identified .

Partnership with Rainforest Alliance makes good progress.

AWARDS

TGB ranks 2nd for transparency in corporate reporting in

emerging markets. – Ranking by Transparency International

Eaglescliffe tea packaging factory in the UK awarded Cranfield

judges award at best factory awards in UK – celebrating

manufacturing excellence

TGB leads in carbon footprint measurement – obtains

certification from BSI (British Standard Institution)

RECOMMENDATIONS Exploiting Rural markets

Differentiation on the basis of quality

Tea houses in tea consuming countries

Promotion of Tata Global beverages products at Starbucks

Promoting products like iced tea in countries where soft drinks are

consumed

Forming JVs with competitors

THANK YOU