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 Shen Nong, 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
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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 Shen Nong, 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.
Picking only 2 leaves and a bud
Remove as much moisture as possible from the Tea
Withering
Rolling
Oxidation
Drying
Plucking
Put leaf info roller machines which twist, turn & break it.
Leaf is oxidise by exposing it to air in large tray till it eventually turns Black
Leaf is exposed to hot air from air blowers
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Top Five Tea Producing Countries
Sri Lanka9%
Kenya10%
Indonesia5%
China21%
India30%Others
25%
Top Five Tea Consuming Countries
India23%
China16%
Russia / CIS6%
U K 6%
Japan5%
Others44%
India is the largest tea producing and consuming country in the world.
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.
Kangra valley in Himachal Pradesh, Dehradoon region in Uttar Pradesh
The hilly regions and plains (Annamalai) of Tamil Nadu, parts of the states of Kerala and Karnataka.
• Hindustan Lever Ltd.• Tata Tea Ltd.• Duncans Industries• Wagh Bakri Ltd.• Private Label• Goodricke Group Ltd.• Golden Tips Tea Pvt.• Hasmukhrai & Co• Girnar Food &
Beverages P ltd • Sapat Packaging
Industries
• Tata has come out with an CSR (corporate social responsibility) in Jaaga Raho……. Campaign.
• Sania Mirza drives double digit growth of Tata Tea
ABOUT THE COMPANY
Set up in 1964 as a joint venture with UK-based James Finlay.
Now it is with UK-based Tetley Group. World's second largest global brand. Tata Tea is largest tea brand in India.
CONT’D
Product and brand presence in 40 countries.
Among India's first multinational companies. Plantation activity in India and Sri Lanka. 86% profit from branded tea sale. 14 per cent comes from Bulk Tea, Coffee, and
Investment Income
CONT’D
Tata Tea ranked the second most trusted beverage brand in Brand Equity Survey
Year to date brand volumes grow by 14% compared to the corresponding period of the previous year
CONT’D
Headquarter in Kolkata
Owns 27 tea estates in o Assam
o West Bengal
o Kerala
Catering to all major consumer segments
CONT’D
The company has five major brands in the Indian market
o Tata Tea
o Tetley
o Kanan Devan
o Chakra Gold
o Gemini (Agni)
CONT’D
Tata Tea brand is accorded “Super Brand” recognition in the country.
o 38 C&F agents
o 2500 stockists
o over 1.7 million retail outlets
SEGMENTING
Demographics
o Income
Psychographics
o Lifestyle
o Values
Behavior Segmentation
o Usage
o Loyalties
TARGETING
Income (20,000<…)
Energetic
Knowledgeable
Responsible
Trendy
Ambitious
POSITIONING
“Taste Kaamyabi Ka” was the old positioning statement "of Tata Tea.
Television commercial featured, tennis star “Sania Mirza” and prominent playback singer “Sunidhi Chauhan”
Now They are positioning themselves by the campaign “Jaago Re”.
“ Har subah sirf utho nahi Jaago Re ”
No celebrity is used in this campaign, however they are highlighting general issues.
Taste basis
PEST ANALYSIS
Political Factors o Not any political factor is effecting the Tata Tea.
Economical Factor o Budget o Reduction in Custom Duty
Social o Not able to be sold in all regions because of taste preferences and low income of people.
Technological Factors o Crop declines by 10% due to adverse weather conditions and old farming Technologies.
STRENGTH•MARKET LEADER•BRAND LOYALTY•DISTRIBUTION CHANNELS•INNOVATIVE FLAVOURS FOR INDIAN TASTE BUDS•ADVERTISING STRATEGY
WEAKNESS•TECHNOLOGICAL EFFECTIVENESS•COST CONTROL•HEALTH RELATED ISSUES
OPPORUNITIES•UNEXPLOITED RURAL MARKETS•INCREASING NUMBER OF WORKING YOUTH WHO PREFER TEA•NEED FOR TEA
THREATS•STRONG PRESENCE OF REGIONAL COMPETITORS•COMPETITIVE PRICING
SWOT ANALYSIS OF TATA TEA
Threats• Unilever (Brooke Bond and Lipton) is the clear leader
• Holding over 30% of the market share
• Competition from unpackaged tea – Babe Di Hatti
• Cha bars - out-of-home consumption
• More than 45,000 vending machines in India
• Sell Coffee and soft Drinks
• Malt-based beverages such as Horlicks (GlaxoSmithKline) and Bournvita
(Cadbury Schweppes), are the favourite type of hot drinks in the South .
• Soft drinks such as carbonates
• Persuading many young consumers to migrate from tea to soft drinks.
http://www.euromonitor.com/All_the_tea_in_India
Counterattack• Launched series of campaigns to promote tea as a health drink.
– Celebrities and Scientists invited to endorse the health benefits of tea
• Tata Tea have set up a fund of Rs 200 million to promote tea drinking.
• Tata Tea is the largest vertically integrated tea firm
• From its plantation activity to its packaging and marketing
initiatives.
• Acquisition of the global Tetley brand in 2000 effectively consolidated its
position in the international tea market.
• Company has been the star performer in the global tea industry in recent