SUBMITTED BY

ASHISH KUMAR YADAV

MBA(MM), SEC-A

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.
 1-HUL

 2-TATA TEA

 3-DUNCAN TEA

 4-DILLMAH TEA

 5-JAY SHREE TEA

 Formed in Nov.1956.
 India’s fast moving consumer goods company
with 80 factories across India.
 In 1931, 1st subsidiary ,Hindustan Vanaspati
Manufacturing Co. followed by Lever Brothers
India Ltd. (1933) United Traders Ltd. (1935)
 The Anglo –Dutch Co. Unilever Owns a
majority stake in Hindustan Unilever Ltd
 TAJ MAHAL

 BROOKBOND

 LIPTON

 LIPTON TAZAA
FIRMS MARKET SHARE

HUL 30%

TATA TEA 20%

OTHERS 50%
 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

 Tetley, a fully-owned subsidiary of Tata Tea

Limited, is the world's second largest
manufacturer and distributor of tea.
 Owned by India's Tata Group, Tetley's
manufacturing and distribution business is
spread across 40 countries and sells over 60
branded tea bags.

 It is the largest tea company in the United

Kingdom and Canada and the second largest in
the United States by volume.
 TATA TEA AGNI
 TATA TEA GOLD
 GEMINI
 CHAKRA GOLD
 KANAN DEVAN
 TETLEY TEMPTATATION
Founded by Walter Duncan in 1859

Today spearheaded by the G.P. Goenka Group

Based in Kolkata

16 tea estates in the Dooars and Terai regions

 No.1

 SHHAKTI

 DOUBLE DIAMOND

 SARGAM

 RANGLEE RANGLIOT
 The company was founded in 1974 by Merrill J
Fernando

 He was born to a Roman catholic family on 6

May, in Negombo, Sri Lanka.

 By 2002 it was the third largest global tea brand

 Top 10 global tea brand and the No 1 brand from

a tea origin.

 Dilmah is an up-market brand of Celyon Tea.

 It is available in over 92 countries.

 1-CYCLON GOLD

 2-PREMEUM LEAF TEA

 3-DILMAH PREMEUM TEA BAGS

 CLASSIC ENGLISH BREAKFAST TEA

 Incorporated as Jay Shree Tea Gardens in
Oct.'45 with two tea estates, the company
changed
 its name to Jay Shree Tea and Industries (JSTI)
in 1960. It was promoted by B K Birla.
 The company manages around 12 tea gardens
in Assam, West Bengal, Tamilnadu and Kerala
STRENGHT-
 Large number of tea estates

 Efficient distribution channel.

WEAKNESS-
 Lack of a diversified product portfolio

 Weak brand equity

 Low innovation in products

OPPORTUNITY-
 Market growth at 2%

 Growth in Indian

middle class
 Propensity of population to drink tea (over other

beverages)
 THREAT-

 Strong competition from the unorganized sector

 Increasing competition from foreign players

 Hindustan
 Pricing / per Kg Duncan tea Lever Dilmah tea Tata Tea Ltd.
No.1
Premium leaf tea Taj Mahal, Yellow
market Label and Green
(Rs 200-220/ kg) Label CYCLON GOLD Tetley Temptations
PREMEUM LEAF
Premium dust category Three Roses and Top TEA
(Rs 180-200 per kg) SHHAKTI Star Chakra Gold
DILMAH
DOUBLE PREMEUM TEA
Medium leaf sector DIAMOND BAGS
(Rs 140-180 per kg Red Label and Taaza Tata Tea Premium
CLASSIC ENGLISH Tata Tea Premium,
Medium dust category SARGAM BREAKFAST TEA Kanan Devan and
(Rs 130-180 per kg) Taaza, Super Gemini
Popular or economy
category RANGLEE
(Rs 120-140 per kg) RANGLIOT A-1 and Tiger Agni Sholay
Economy dust teas
(Rs 120-130 per kg) A-1 and Ruby Agni and Leo
Hindustan Lever Limited
(HLL)
Market leader
Extremely strong distribution
network
2 umbrella brands: Brooke Bond,
Lipton

Tata Tea Limited (TLL)

Dominant market position
Price warrior – value-for-money
offerings
Wide range of products
 Defining ‘Quality’
Low Quality Medium High Quality
Quality
Numbering 1-3 4-6 7-9
Price range Rs. 29 – Rs. 36 Rs. 38 – Rs. 59 Rs. 60 – Rs. 250
Type Dust, fanning Granules, CTC Leaves, tea bags
Characteristics:
Taste Strong Strong Delicate – strong
Colour Strong Strong Light
Aroma Weak Medium High

Quality-Price relationship: Greater quality = Higher price

 Determining Demand

Price sensitivity
Low quality segment: high price sensitivity
Medium quality segment: medium price
sensitivity
High quality segment: low price sensitivity

Price elasticity of demand

Elastic demand for tea (since coffee is a
substitute)
Elasticity (Low quality segment) > Elasticity
(High quality segment)
 Estimating Costs
Types of costs
Fixed costs: machinery costs, wages for factory
workers and tea pickers
Variable costs: Packaging costs
Other costs: Marketing costs

Accumulated production
Greater experience = lower costs (learning curve
concept)

Target costs
Desired function of product + selling price –
desired profit margin
 Recommendations
Low quality segment:
Focus on strengthening position of existing
brands – No. 1 and Shakti

Medium quality segment:

Strengthen Duncans’ Double Diamond (the
fastest-growing brand)

High quality segment:

Focus on increasing volumes and profitability of
Runglee Rungliot
Increase geographic reach and popularity
Marketing Analysis: The 5 Cs
STP Analysis