PROMOTION AND DISRIBUTION MANAGEMENT MANAGEMENT
Submitted To Dr. Jomon Lonappan
MBA Faculty Submitted By Muralidhar Baliga II MBA ‘A’
Introduction
Tata Tea Limited, also known as Tata-Tetley, is the world s second largest manuf acturer and distributor of tea. Tata tea is o wned by Indi ndia s Tata Group, the Tata Tea Limited. Tata tea produces m a jor brands of tea such as Tata Tea, Tetley, Good Earth Teas and JEMA. It is the largest tea brand in Indi ndia, and has the largest tea company in United Kingdom and Canada and the second largest in the United S tates. '
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Tata Tea manuf actures 70 million k il ilograms of tea in Indi ndia, controls 54 tea estates, ten tea blending and pack aging f actories and empl mploys around 59,000 people. The company owns 51 tea estates in Indi ndia and Sri Lank a, especially in Assam, West Bengal in eastern Indi ndia and Kerala in the south. The company is the largest manuf acturer of Assam tea and Dar jeeling ling tea and the second-largest manuf acturer of Ceylon tea. Set up in 1964 as a joint venture with UK based James Finlay and Company to develop value-added tea. The Tata Tea Group has now product and brand p resence in 40 countries. Tata Tea owns five brands in Indi ndia - Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini.
As part of the rehabilitation programme, a strawberry preserve-mak ing unit is maintained by the centre where the children are not only involved in the collection, cleaning and mak ing of strawberry preserve but are also encouraged to grow strawberries, which are then bought by the centre. This becomes an additional source of income for the children. Tata Tea Limited is a ma jor grower, manuf acturer and exporter of spices from Indi ndia. Tata S pices Centre was i n 1990 and consists of a modern pepper processing facility for set up in Cochin, in Whole Black and White Pepper. The processing facility at Cochin has a capacity of about 2500 tons per annum. The process line is fully mechanised and human handling to ensure that strict standards of hygiene are followed as required by a product of international quality. lity. The product available in Tata tea industry are Gemini Tea launched in 1980, Kanan Devan Tea launched in 1985, Chakra Gold launched in 1992, Agni T ea launched in 1998, Tata Tea Temptation launched in 2001, Tata Tea Gold launched in 2003, Tetley T ea launched in 2004.
A bout
The Company
Via subsidiary companies, Tata Tea manuf actures 70 million k il ilograms of tea in Indi ndia, controls 54 tea estates, ten tea blending and pack aging f actories and empl mploys around 59,000 people. The company owns 51 tea estates in Indi ndia and tern Indi Sri Lank a, especially in Assam, West Bengal in easter ndia and Kerala in the south. The company is the largest manuf acturer of Assam tea and Dar jeeling ling tea and the second-largest manuf acturer of Ceylon tea.
Set up in i n 1964 as a joint venture with UK based James Finlay and Company to develop value-added tea, the Tata Tea Group has now product and b rand presence in 40 countries. It is one of Indi ndia s first multinational companies. The operations of Tata Tea and its subsidiaries focus on branded product offerings in significant presence in plantatio ntation activity in Indi tea, but with a significant ndia and Sri Lank a. '
Tea
Products:
Gemini Tea launched in
1980 The brand Gemini is a dust tea, so sold in the states of Andhra Pradesh, Madhya Pradesh, Chattisgarh, Tamil Nadu and Karnartak a. However the focus of this brand is to be a strong regional player in the state of Andhra Pradesh. This brand has a high component of Assam tea, which lends to its unique strength, taste and color. Gemini is the market leader in its price segment and has been re-staged twice since 1996. The brand has been successfully positioned as "a strong tea for strong family relations ". Kanan Devan Tea launched in 1985 The Kanan Devan Tea Tea story begins in the late 19th century when the first European settlers came to the Kanan Devan Hills in the state of Travancore. Braving an inhospitable terr terra ain the early planters star tarted cultivating Tea bushes in the f ertile f orest land of the Western Ghats. The tea they produced was exported to Europe and other countries throughout the world. launched in 1992 Chakra Gold Tea is a blend of high quality Assam CTC Dust teas. Chakra Gold is a strong No 2 Brand in the high quality & high priced Premium Dust tea Mark et of South Indi ndia. The consumer communication of the Brand centered on the Golden Moments in the Consumer s life has been well received, and the same theme of Golden touch and Golden woman have inspired millions of Consumers across south Indi ndia to be the loyal consumers of Chakra Gold, Golden T aste. Consumer promotions hav have been an important part of the Brand communication. Chakra Gold
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Agni Tea launched in 1998 A Migration of Agni under the Tata Tea umbrella is an ambi mbitious brand consolid lidation initiative, whereby TATA TEA Agni, became its new offering for the economy segment. By bringing the popular economy brand Agni under the stable TATA TE TEA, the flagship brand, the company intends to f ur urther consolid lidate its presence in the large and promising economy segment by l everaging the tremendous equity of the flagship brand and allowing consumers acce ccess to the popular TATA TEA brand. Tata Tea Agni has been developed through tisf ies the painstak ing consumer insight mining and satis economy consumers need for a diff erentiate ntiated product at an aff ordable price. '
Tata Tea Temptation
launched in 2001
Tata Tea is now offering consumers great value with the launch of Tata Tea Tempt mptation – a premium, orthodox leaf tea. Temptation will offer tea connoisseurs a ‘Rare Flavour of Assam Leaf ’ that delivers a unique taste and aroma. Tata Tea Temptation is the first among many many new products to come from Tata Tea Limited and can be attributed to the company’s sharply f ocussed philosophy - "the customer is sovereign". Tata Tea Gold
launched in 2003
The launch of Tata Tea GOLD, tea that has aroma coupled with a ref reshing taste. The product, introduced as an upgraded variant of Tata Tea brand, has a blend of 85% CTC and 15% long leaf tea. This is a blend of tea, which is visually unique, and a superior taste. Television commercial is on air on national media. The commercial has been designed k ee eeping in mind the brand personality lity and has "Na kahonge toh pachtao htaonge" as its sign-off line. Tetley Tea
launched in 2004
The Tetley brand was restaged in the Indi ndian market in December 2004. The highlight of the restage was the launch of f lavoured tea bags in four exciting f lavours –Masala, Ginger, Lemon and Earl Grey. Flavoured tea bags are available in packs of 12 tea bags, at an attractive put down price of Rs. 20 per carton. The Tetley f lavoured tea bag range has been developed in-house, keeping Indi ndian consumer habits in mind. Tetley is the first brand to launch Masala and Ginger tea bags – two very popular Indi ndian flavours. Keeping in mind that most Indi ndians like milk in were customized to allow this, yet ensure in their tea, Tetley tea bags were that the consumer got a strong cup of tea.
Marketing Strategy: Regarding Regarding Indian markets, markets, important important to point out i s that once the customer customer decides decides to consume a certain brand he or she will be very loyal to the product and it will therefore be hard to convince him or her to buy another brand. The brand Tata Tea is to introduce innovative products in an existing market and focus on Market Development. Existing Market Existing Products New Products
New market
Market
Product
Penetration
Development
Market
Diversification Development
Producing product in India is less expensive as India is second largest producer of tea in world tea market and also labour is cheap here.
Marketing Mix of Tata Tea Product Tata Tea will be a high quality product offered.Contents of the Tata Tea are: 40 bags, 80 bags, 150 bags, 250 bags (Family pack), the amount of bags refers to different target groups. 40 bags for singles, 80 bags for couples, 150 bags and 250 bags are Family Packs. (250 bags is the most famous) Packaging: Customer perception of a package creates brand equity and purchaser loyalty. The image presented by the package largely determines success or failure of a tea line. Appearance stimulates memories and emotions inside the purchaser, who oftentimes is female, often buying for an entire family. Colour, image and slogan all combine to facilitate customer allegiance. Place High quality for a reasonable price can be bought from Assam & Darjeeling and will then be blended and packed. The final product will be distributed to Retailers such as Supermarkets and main tea shops so the end consumer has easy access to it. Price Reasons for pricing policy: Tata Tea is competing against the main players on the Indian Tea Market and by setting a higher price but offering more value for it. Various promotion activities, giveaways and advertising on radio and television will help to establish the brand and gain market shares. Promotion The focus is the Indians like to purchase bargains or buy products that offer free gifts. Other brands do not offer as many promotion and free gifts. This is why it is important to focus especially on the Promotion activities of the marketing mix. Need to set up original events in order to attract new customers and consumers of other tea brands.
Price List of Tata Tea Products Size of package
Price(in Rs)
Tata Tea AGNI
1Kg
180
Tata Tea AGNI
250gms
45
Tata Tea GOLD
1Kg
293
Tata Tea GOLD
250gms
76
Tata Tea GOLD
500gms
158
3
Tata Tea LIFE
250gms
56
4
Tata Tea PREMIUM
1Kg
277
Tata Tea PREMIUM
500gms
138
Tata Tea PREMIUM
250gms
72
Tetley Tea Bags
100bags
85
Name of the Product
1
2
5
Suggestions as a Marketing Manager Innovative Marketing Strategy The Tea sector is beset with many chronic problems. A large number of people are dependent on it and there is need for a significant proportion of them to shift into manufacturing and services, this is the area of focus. There is a need of putting stress in promoting a healthy business climate globally, and contributing positively in every community, both personally and organizationally. The company can make an effort to find out what our customers desire from us. The idea is to value most is to take action based on an understanding of the views of the customers. Quality Control Quality is an indispensable principle of our Group. Complete quality assurance system so that it is reflected in the values, processes, and a quality assurance evaluation has to be conducted at every phase of operations. The company should focus towards providing quality products to its customers which can only be achieved if we maintain quality at every level of production. Aggressive Marketing The Company should adapt an aggressive marketing policy to sell its products. In aggressive marketing the company should sell more products to its existing customers and find out new customers and win the confidence of its consumers by providing quality products at reasonable prices. Customer’s Relation The Company should maintain a cordial customer relation. Customers are best critics. A time bound system should be in place to interact with valued Customers and it also encourages regular feedback on quality deliveries. All customer complaints should be studied, analyzed, complaints Docketed; a detailed root cause analysis should be done after which the complaint can be closed. This ensures that the customers remain loyal and all their complaints are addressed and acted upon. The company should value to take action based on an understanding of the views of the customers. Long Term Image Building The Company should focus on long term goal of permanent image building. It should aim at confidence build up with its customers and serve them better. The Company should strive to share corporate social responsibility policies with suppliers, including environmentally - beneficial activities throughout the supply chain.
