Set up in 1964 as a joint venture with UK-based James Finlay and Company to develop valueadded tea, the Tata

Tea Group of Companies, which includes Tata Tea and the UK-based Tetley Group, today represent the world's second largest global branded tea operation with product and brand presence in 40 countries. Among 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. The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from Bulk Tea, Coffee, and Investment Income. The Company is headquartered in Kolkata and owns 27 tea estates in the states of Assam and West Bengal in eastern India, and Kerala in the south.

PRODUCTS AND BRANDS The company has five major brands in the Indian market - Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini -- catering to all major consumer segments for tea. The Tata Tea brand leads market share in terms of value and volume in India and the Tata Tea brand is accorded "Super Brand" recognition in the country. Tata Tea's distribution network in the country with 38 C&F agents and 2500 stockiest caters to over 1.7 million retail outlets (ORG Marg Retail Audit) in India. The company has a 100% export-oriented unit (KOSHER & HACCP certified) manufacturing Instant Tea in Munnar , Kerala, which is the largest such facility outside the United States. The unit's product is made from a unique process, developed in-house, of extraction from tea leaves, giving it a distinctive liquoring and taste profile. Instant Tea is used for light density 100% Teas, Iced Tea Mixes and in the preparation of Ready-to- drink (RTD) beverages. With an area of approx 15,900 hectares under tea cultivation, Tata Tea produces around 30 million kg of Black Tea annually. Indian Tea Market According to Maheshwari, in India loose tea procured from auctions and directly from plantations, accounts for 62% of the total volume sold to customers; and packet tea makes up 38% of the market of which Hindustan Lever, Tata Tea and Duncans control 80%. With a widespread distribution network, production and packaging facilities and a substantial advertising and promotional budget, they have ensured an increase in the market share of their brands. Despite the price factor, packet tea consumption is found across most demographic segment. The share of packet tea, in 1999, in urban markets was122 markets and 116 in rural markets. This was 127 mkg and 112 mkg respectively in 1998. Of this, local brands account for 30%. As per latest estimates (2000), the per capita consumption of tea is the lowest for India (645 gms) as compared to Pakistan (900 gms), srilanka (1000 gms) and the UK (2500 gms). Of a

total production of 870 mkg, 203 mkg exported. This is a drastic decline in the share in world exports from 45% in 1951 to 23% in 1999-2000. The Changing Market Scenario According to Sharma, the market for tea is now changing. Tae is facing increased competition from aerated drinks. In view of this, tea needs to protect its carefully nurtured markets. It also needs to make forays into soft drinks markets with a view to create competition rather than merely face it. This can be achieved through value-addition approach to the introduction of new products. He further states that, traditionally, the tea industry has been production oriented. However, as a result of changes in the market scenario, a new marketing orientation is emerging. Hence, a new emphasis on strengthening the market-production linkages is required. This can be achieved by fine tuning the production system to the market requirements through a new marketing orientation in contrast to the earlier mindset of commodity orientation. The market-production linkage can be strengthened by: 1) Market creation 2) Market matching In market creation, the attempt is to create new markets. It implies an aggressive marketing orientation and it represents an active approach to linking production to markets. Quite often new markets are created through brand building approaches. India blend as an Indian brand along with other corporate brands represents the market creation approach. The market matching is a passive approach wherein the tea is disposed or sold to match the market demand. In this approach, there is very little effort to influence the market. Damodaran has put forward an alternative tea market classification as the traditional classification-based on appearance and processing- ignores. Economic reliability, relation of beverages to lifestyles and the growing sentiment of environment and ecology. The packet tea segment has a non-produce identity based on appearance, bio-chemical, illiquid, ecology and impressionable features. He also indicates that non- champagne type of Indian tea must think of not only conventional value-adding techniques such as packaging but also of projecting their ecological, nutraceutical properties besides catering to the convenience market which demand tea bags and ready-to-drink tea. In fact, his data shows that packaging of tea increases the final cost of tea by 200% as compared to selling tea in bulk.

International market

The Tata Tea groups acquisitions since Tetley, its first mega one in 2000 for $432 million, was followed by four acquisitions. The tea major has now acquired a 33% stake in South African tea company, Joekels Tea Packers, through Tata Tea Tetley, its subsidiary.

The acquisition will also pave the way for Tata Tea to sell its Tetley branded products in South Africa, Namibia, Botswana, Lesotho and Swaziland through Joekels.

Market segmentation:Introduction: - The market for any product is normally made up of several segments. A market after all is the aggregate of consumers of a given product. And, consumer (the end the user), who makes a market, are of varying characteristics and buying behavior. There are user different factors contributing for varying mind set of consumers. It is thus natural that many differing segments occur within a market. In order to capture this heterogeneous market for any product, marketers usually divide or disintegrate the market into a number of sub-markets/segments and the process is known as market segmentation. segmentation Bases for segmentation: Markets can be segmented using several relevant bases. There is huge number of variables which leads to market segmentation. They comprise easy to determine demographic factors as well as variables on user behavior or customer preferences. Segmentation is done for consumer market and industrial market.

Bases for segmentation in consumer market:Consumer market can be segmented on the following customer characteristics 1. Geographic Segmentation. 2. Demographic Segmentation. 3. Psychographic Segmentation. 4. Behaviouralistic Segmentation.

Geographically Potential customers are in a local, state, regional or national marketplace segment. Tata tea has segmented market geographically in following way: South India, southeast India, southwest India.

Demographics Segmentation of customers of Tata tea based on demographic factors is: Income

Psychographics Psychographic Segmentation groups customers according to their life-style and buying psychology. Lifestyle Working class, middle class, upper middle class

Values

Behavior Segmentation Markets can be segmented on the basis of buyer behavior as well. Usage Loyalties

Targeting: Income (20,000<) Energetic Knowledgeable Responsible Trendy Ambitious

Positioning:

Each brand actions to build a lasting relationship with the buyer and is strongly positioned in its particular segment. Tata Tea succeeds on the great leaves, great taste platform in the popular category. In the premium segment, Tetley showcases the finest international combine for sharp consumers. Agni, in the economy segment, offers strength and a low price. Tata Teas Jaago Re Campaign: The Social-Cause Marketing Initiatives and Long-term Branding Initiatives In 2007, Tata Tea, after gaining a leading position in Indian as well as global tea market (in terms of volume), launched a series of ad campaigns under Jaago Re (Awake) theme and highlighted social issues through its ads. Tata Tea focused on enlightenment and civic consciousness that consumer could get with a cup of Tata Tea, in his everydays life. This case throws light on, at what stage of brand life cycle does it make sense for a brand to come out of traditional advertising model and focus on cause-related issues. Further, it gives scope to analyze if Tata Tea can yield desired results out of this campaign.

Competition: The competition Tata Tea is faced with operates on two fronts: organized players like Hindustan Lever on the one hand and a plethora of local and regional players on the other. The latter category is able to flourish in a skewed cost and manufacturing paradigm, making it serious cause for concern.