BRAND EXTENSION ASSIGNMENT

Submitted by Manil PunwareSection: BPgp30031IIM Lucknow

Submitted to:Prof Sameer MathurPh.D Carnegie MellonMarketing Professor, IIM Lucknow

Established in 1868 by Jamsetji Tata

Operations in more than 100 countries

Revenue in 2014-15 : 103.24 billion

TATA GROUP

TATA CHEMICALS

TATA CONSULTANCY SERVICES

TATA STEEL

TATA MOTORS

TATA POWER TATA GLOBAL BEVERAGES

TATA TELESERVICES

TATA COMMUNICATION

SUBSIDIARIES

TATA GLOBAL BEVERAGES

INDIAN TEA INDUSTRY 2014-15Production: 1200 million kgPackaged tea market: 9500 croresRetail value growth rate: 17%

20.7

12.1

8.76.76.1

3.6

40.1

Brand shares

Tata Tea Brooke Bond Red label

Brooke bond LiptonWagh Bakri Kana DevanOthers

Source: Euromonitor.com

86 Mn

100 Mn 117 Mn

CATEGORY DATA: 2012-2014

19.4

20.020.7

Tata Tea: Brand share as a % of retail value

Black Tea: Retail Sales by value in INR

Product Place Price Promotion

6 Variants: Tata Tea Life, Agni, Gold, premium, Chakra Gold, Kannan Devi, Gemini

Each variant’s packaging and product attributes designed keeping in mind the respective target segment

Eg: Tata Tea Gold: Premium customers- Positioned as most Aromatic tea with 15% longer leaves

Available as bulk packages and tea bags Bulk packages SKUs: 100 g, 250 g, 500g, 1 Kg Tea bags come in bunch of : 40, 80, 100, 250

Product Place Price Promotion

Produced in Assam and Darjeeling and Kannan Devan hills in South India

Distribution network throughout the country Tea availability :

South India- Mostly DustNorth India- Tea leaves/ Dust with Tea leaves

Major Consumers: South Indian states, UP, Bihar, Haryana

Product Place Price Promotion

Source: Euromonitor.com

Product Place Price Promotion

Viewed as a value for money brand Pricing in 3 segments:

Economy :Tata tea Agni/ Kannan devan – 224/kgUpper middle class/ Premium: Tata tea Premium -330/kgPremium & distinguished taste preference: Tata tea Gold-

400/kg

Product Place Price Promotion

Celebrity endorsements Advertisements targeting middle class segment Trade promotions for new products Social awareness campaigns targeting youth and women

Product Place Price Promotion

Jaago Re! :For accountable government

Product Place Price Promotion

Power of 49: Empowering women Voters

Kan

nan

Devan • Karnataka,

kerela • Resourced

from the Kannan devi hills

• ‘Heighten your senses’

• Characterised by unique taste preferred in karnataka and kerela

Ch

akr

a G

old • Tamil Nadu,

Karnataka• Hight quality

Assam leaves• ‘Gloden

colour Golden taste’

• Targetting the south Indian customers who consider gold as pure and auspicious

Gem

ini • Andhra

pradesh• ‘Strong tea

for strong family relations’

• Targetting Andhra community known for giving highest emphasis on family relations

GEOGRAPHICAL SEGMENTATION

DEMOGRAPHIC SEGMENTATION Ta

ta t

ea g

old • Aroma

coupled with refreshing taste for premium segment who have distinguished taste preferences

Tata

tea C

hakr

a g

old

• Smart women from upper middle class family aged 25-40 who are empowered and is the buyer Ta

ta t

ea A

gn

i • Offering for

the middle class Families looking for economic value

TARGET CONSUMER

Indian middle class and upper middle class families accounting 300 million people

Youth, awakening them with the ‘Jaago Re! ‘ campaign

Housewives who are decision makers

POINTS OF PARITY Good Flavour, aroma and refreshing Available in different packs/sizes

POINTS OF DIFFERENCE Leverages Tata Brand

equity More diverse portfolio of

products targeting

different segments as

compared to competitors Self owned tea

plantations First player in the Indian

market Social awareness

campaigns – Jaago Re and

power of 49 has built

strong brand image

REFERENCES

• http://www.tataglobalbeverages.com/• https://en.wikipedia.org/wiki/Tata_Global_Beverages• www.euromonitor.com• http://www.tataglobalbeverages.com/docs/documents/tat

atea-sustainability-report-2013-14.pdf?sfvrsn=0

• http://www.tataglobalbeverages.com/our-investors/annual-reports

Thank you