PROMOTION

AND
DISRIBUTION 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
manufacturer and distributor of tea. Tata tea is owned by India' s Tata Group,
the Tata Tea Limited. Tata tea produces major brands of tea such as Tata Tea,
Tetley, Good Earth Teas and JEM A. It is the largest tea brand in India, and has
the largest tea company in United Kingdom and Canada and the second largest
in the United States.

Tata Tea manufactures 70 million kilograms of tea in India, controls 54 tea

estates, ten tea blending and packaging factories and employs around
59,000 people. The company owns 51 tea estates in India and Sri Lanka,
especially in Assam, West Bengal in eastern India and Kerala in the south. The
company is the largest manufacturer of Assam tea and Darjeeling tea and the
second-largest manufacturer 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 presence in 40 countries. Tata Tea
owns five brands in India - Tata Tea, Tetley, Kanan Devan, Chakra Gold and
Gemini.

As part of the rehabilitation programme, a strawberry preserve-making unit

is maintained by the centre where the children are not only involved in the
collection, cleaning and making 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 major
grower, manufacturer and exporter of spices from India. Tata Spices Centre was
set up in Cochin, in 1990 and consists of a modern pepper processing facility for
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.

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 Tea
launched in 1998, Tata Tea Temptation launched in 2001, Tata Tea Gold
launched in 2003, Tetley Tea launched in 2004.
About The Company

Via subsidiary companies, Tata Tea manufactures 70 million kilograms of tea

in India, controls 54 tea estates, ten tea blending and packaging factories and
employs around 59,000 people. The company owns 51 tea estates in India and
Sri Lanka, especially in Assam, West Bengal in eastern India and Kerala in the
south. The company is the largest manufacturer of Assam tea and Darjeeling tea
and the second-largest manufacturer 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
presence in 40 countries. It is one of India' s first multinational companies. The
operations of Tata Tea and its subsidiaries focus on branded product offerings in
tea, but with a significant presence in plantation activity in India and Sri Lanka.

Tea Products:

Gemini Tea launched in 1980

The brand Gemini is a dust tea, sold in the states of Andhra
Pradesh, Madhya Pradesh, Chattisgarh, Tamil Nadu and
Karnartaka. 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 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 terrain
the early planters started cultivating Tea bushes in the fertile
forest land of the Western Ghats. The tea they produced was
exported to Europe and other countries throughout the world.

Chakra Gold 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 Market of South India. 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 India to be the
loyal consumers of Chakra Gold, Golden Taste. Consumer
promotions have been an important part of the Brand
communication.
Agni Tea launched in 1998
A Migration of Agni under the Tata Tea umbrella is an
ambitious brand consolidation initiative, whereby TATA TEA
Agni, became its new offering for the economy segment. By
bringing the popular economy brand Agni under the stable
TATA TEA, the flagship brand, the company intends to further
consolidate its presence in the large and promising economy
segment by leveraging the tremendous equity of the flagship
brand and allowing consumers access to the popular TATA
TEA brand. Tata Tea Agni has been developed through
painstaking consumer insight mining and satisfies the
economy consumers'need for a differentiated product at an
affordable price.

Tata Tea Temptation launched in 2001

Tata Tea is now offering consumers great value with the launch
of Tata Tea Temptation – 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 new products to come from
Tata Tea Limited and can be attributed to the company’s
sharply focussed philosophy - "the customer is sovereign".

Tata Tea Gold launched in 2003

The launch of Tata Tea GOLD, tea that has aroma coupled
with a refreshing 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
keeping in mind the brand personality and has "Na kahonge
toh pachtaonge" as its sign-off line.

Tetley Tea launched in 2004

The Tetley brand was restaged in the Indian market in December 2004. The
highlight of the restage was the launch of flavoured tea bags in four exciting
flavours –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 flavoured tea bag range has been developed in-house, keeping Indian
consumer habits in mind. Tetley is the first brand to launch Masala and Ginger
tea bags – two very popular Indian flavours. Keeping in mind that most Indians
like milk in their tea, Tetley tea bags were customized to allow this, yet ensure
that the consumer got a strong cup of tea.
Marketing Strategy:
Regarding Indian markets, important to point out i s that once the customer 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 New market

Existing Market Product

Products
Penetration Development
New
Products 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

Name of the Product Size of package Price(in Rs)

1 Tata Tea AGNI 1Kg 180

Tata Tea AGNI 250gms 45

2 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

5 Tetley Tea Bags 100bags 85

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.