Tata Tea Case Study

THE INDIAN TEA INDUSTRY

India is one of the world's leading producers of tea - 23 per cent share by volume in 2013. The main growing regions lie in Northeast India, including Assam, the Darjeeling district and the Dooars region of North Bengal, and in the Nilgiris in South India. The tea industry is one of the oldest organized industries in India with a large network of tea producers, retailers, distributors, auctioneers, exporters and packers. Total tea production in the world has exceeded 4 billion kgs with India producing about 1 billion kg of tea. During 2008 to 2013, black tea production in India increased at a compounded annual growth rate (CAGR) of 1.6% while consumption

It is the market leader in India and has strong brands in its portfolio such as Tata Tea Gold, Tata Tea Premium, Kannan Devan, Chakra Gold, Agni and Gemini. Tata Tea celebrated its 25th year in 2012, amidst widespread publicity. But it’s not just about tea. The company also promotes social awakening and action through its landmark ‘Jaago Re’ marketing campaigns. This year the focus has been on gender bias against women. The ‘Power of 49’ campaign marks a new phase in Tata Tea’s iconic ‘Jaago Re’ series of campaigns. Women constitute 49% of the voter base in India. The objective of this campaign was to awaken women to the power within them and encourage them to exercise their right to vote at the general elections.

Overview

• Tata Tea is the largest packaged tea brand in the country with one in three Indian households having consumed it over the course of last year

• Successful across India with 4 national and 3 regional brands to cater to the diverse consumer preferences

• The landmark 'Tata Tea Jaago Re'; campaign has transformed the way beverages are marketed in India by repositioning tea from a mere wake up drink to a medium of Social awakening

• Jaago Re today is the ONLY Social Cause Brand in the top 50 FMCG brands on Facebook India. Tata Tea began its journey more than 25 years ago, when the packaged tea market was dominated by one large player with over 70% market share. While most

Tata Tea Gold has 15% gently rolled long leaves that open up when put into hot water and release a superior aroma. The brand promise is delightful aroma

• Tata Tea Gold Darjeeling – The Darjeeling alternative is winning rave reviews from premium tea enthusiasts

• Tata Tea Agni –The economy segment tea of choice in India despite fierce competition from local brands and unbranded tea

• Tata Tea Life –Tata Tea Life is still a firm favorite in India’s busy modern day lifestyle

• Chakra Gold – ‘the tea that opens up your mind’ is a the second largest premium dust tea brand in the country, with Andhra Pradesh and Tamil Nadu being the key geographies

• Gemini –Gemini is the undisputed market leader in Andhra Pradesh for many years, both in volume and value share. The brand has achieved consistent growth year on year

• Kanan Devan - The unique refreshing taste of tea from the pristine Kanan Devan hills. It is the market leader in Karnataka and no.2 in the dust segment in Karnataka

Segmentation:

• Demographic Segmentation-Targets premium users by offering Chakra Gold, Tata Tea life .Targets popular segment by offering Tata tea Premium and Tata Tea Gold. Targets economy segment by offering