CHAPTER – 1

Introduction:

Tata Consumer Products is a fast-moving consumer goods company headquartered

in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. It is the world's
second-largest manufacturer and distributor of tea and a major producer of coffee.

Formerly known as Tata Global Beverages Limited (TGBL), Tata Consumer Products
Limited is a part of the Tata Group. Tata Consumer Products was formed when the
consumer products business of Tata Chemicals Ltd. merged with Tata Global Beverages
Ltd.

In February 2020. They now operate in the Food and Beverages industry with -56%
of their revenue coming from India while the rest is from their international businesses.

The merger has helped TCPL to command a diversified portfolio consisting of leading
Indian and International brands like Tata Salt, Tata Tea, Tetley, Eight O Clock and high
growth potential brands like Tata Sampann and Tata Starbucks.

TCPL would have iconic brands, that reaching over 200 million households.

They are looking to unlock synergies across distribution, marketing, innovation and
supply chain as well as capture a good portion of the Indian branded pulses market
through this merger.

The company markets tea under the major brands Tata Tea, Tetley and Good Earth
Teas. Tata Tea is the biggest-selling tea brand in India, Tetley is the biggest-selling tea
brand in Canada and the second-biggest-selling in United Kingdom and United States.

In 2012, Tata Consumer Products Limited ventured into the Indian cafe market in a
50:50 joint venture with Starbucks Coffee Company. The coffee shops branded as
"Starbucks Coffee—A Tata Alliance" source coffee beans from Tata Coffee, a subsidiary
company of Tata Consumer Products Limited.

As of 2020, the company's revenue stood at ₹5807.99 crore (US$810 million) while
its net income stood at ₹575.35 crore (US$81 million)

1
Operations :

The company was renamed as Tata Global Beverages (now Tata Consumer Products
Limited) to include the range of health and nutritional beverages it wants to enter into.
Via subsidiary companies, Tata Consumer Products Limited manufactures
7 crore 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, Tata Consumer Products Limited has now product and brand
presence in 50 countries. It is one of India's first multinational companies.

The operations of Tata Consumer Products Limited 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 Tata Consumer Products Limited
contributes to around 86 per cent of its consolidated turnover with the remaining 14 per
cent coming from bulk tea, coffee and investment income.

With an area of approximately 159 square kilometres (61 sq mi) under tea cultivation,
Tata Consumer Products Limited produces around 30 million kg of black
tea annually. Instant tea is used for light density 100% teas, iced tea mixes and in the
preparation of ready-to-drink (RTD) beverages.

Tata Consumer Products Limited owns five brands in India: Tata Tea, Tetley, Kannan
Devan, Chakra Gold, and Gemini.

The company has a 100% export-oriented unit (KOSHER and HACCP certified)
manufacturing instant tea in Munnar, Kerala, which is the largest such facility outside
United States.

Tata Consumer Products Limited has subsidiaries in Australia, Great Britain, The

United States of America, Czechia and India.

2
Vision, Mission And Values :

VISION :

To build better lives and thriving communities

Mission :

Passionately growing and innovating every day

Values :
Our values draw from the Tata foundational values and support our FMCG
ambitions. The abiding principles of our company.

Empathy
Understanding every individual’s needs before acting, respecting diversity of thought
and the value of collaboration for business
Integrity
Remaining fair, transparent, responsible and ethical in our conduct; everything we do
must stand the test of public scrutiny
Agility
Being proactive, adaptive and quick to respond to the market, while blending
perspectives for dynamic thinking
Excellence
Staying fully engaged and passionate about delivering the highest standards for the
company and our own development
Ownership
Taking pride and initiative, holding ourselves accountable for our actions, and
nurturing the communities we work in

3
Company profile :

Company TATA CONSUMER PRODUCTS

Traded as BSE: 500800
NSE: TATACONSUM
NSE NIFTY 50 constituent
ISIN INE192A01025
Industry Fast-moving consumer goods
Headquarters Kolkata, India, India
Area served Worldwide
Key people Sunil D’Souza
(CEO & MD)
Natarajan Chandrasekaran (Chairman)
Products Tea
coffee
water
salt
lentils
spices
ready-to-eat
sweetener
Revenue ₹9,749 crore (US$1.4 billion) (2020)
Operating income ₹887 crore (US$120 million) (2020)
Net income ₹535 crore (US$75 million) (2020)
Total assets ₹18,502 crore (US$2.6 billion) (2020)
Total equity ₹13,722 crore (US$1.9 billion) (2020)
Number of employees 2,689 (2020)

Parent Tata Group

Subsidiaries Good Earth Teas
Tata Coffee
Tetley
Eight O'Clock
Tata Starbucks (50%)
Tata Consumer Soulfull
Website www.tataconsumer.com

Type Public

4
CHAPTER – 2

Organisation Chart :

5
Organisation Chart :

Chairman :

Mr. Chandrasekaran is Chairman of the Board at Tata Sons which he joined as a

Director in October 2016 and was appointed Chairman in January 2017. He also chairs the
Boards of several group operating companies, including Tata Consumer Products, Tata Steel,
Tata Motors, Tata Power, Tata Chemicals, Indian Hotels and Tata Consultancy Services
(TCS) – of which he was Chief Executive from 2009-17.

Non-Executive (Non-Independent) Director :

Mr. Balaji is the Group Chief Financial Officer of Tata Motors Limited since
November 2017 and serves on the Board of several group Companies of Tata Motors
Limited. He is a global finance professional with over two decades of experience in the
corporate sector.

Independent Director :
Mr. Santhanakrishnan comes with four decades of specialised experience in
Accounting and Finance, Strategy and Planning and acquisitions with International
exposure. He is a member of the Institute of Chartered Accountants of India (ICAI) and a
Managing Partner of PKF Sridhar and Santhanam LLP, Chartered Accountants.

Managing Director & CEO :

Mr. Sunil D’Souza is the MD & CEO of Tata Consumer Products since April 2020.
Prior to this, he served as the Managing Director of Whirlpool India Ltd. for four years and is
credited with having turned Whirlpool into a remarkable growth story in India.
Mr. Sunil began his career at Hindustan Unilever Ltd. in 1993 and then spent around
15 years at PepsiCo, where he held several leadership roles, handling commercial aspects of
the company’s foods and beverages portfolio and successfully leading the business in a large
cluster of Asian countries.
With 27 years of rich experience, he has strong domain knowledge of the consumer
products business with distinct focus on strategy, growth and execution.

6
Executive Director & Group CFO :

Mr. L. Krishnakumar is the Executive Director and Group CFO of Tata Consumer
Products. He started his career as a management consultant with A. F. Ferguson and Co. in
India and the Middle East. He subsequently worked with Larsen and Toubro Ltd. across
multiple functions as General Manager, Finance where he gained exposure to the fields of
engineering, information technology, shipping and more.

Chief Operating Officer :

Ajit Krishnakumar joined Tata Consumer Products in January 2020 as Chief

Operating Officer and is responsible for business integration and transformation as well as
the integrated India operations and B2B businesses.

Prior to this, Ajit was a Senior Vice President in the Chairman’s Office at Tata Sons,
with responsibilities for strategy, corporate finance and M&A for the consumer and other
business verticals.

Global Chief Digital Officer :

T. V. Swaminathan joined Tata Consumer Products in March 2021 as Global Chief
Digital Officer (CDO) to chart out and execute a digital roadmap for the company. His
responsibilities also include enabling the business using digital, enhancing analytical
capabilities and leading the development of a digital vision and value proposition.
 
With 24 years of experience, Swami was previously with Nissan Motors, Japan, as
Chief Digital Officer. Prior to this, he has held multiple leadership roles across various
businesses in General Electric (GE) and has also been a part of Accenture and Servion Global
solutions during his career.

Swami is a post-graduate in computer applications with a bachelor’s in computer

science. Outside work, Swami is passionate about running, aeromodelling/drones, electric
mobility and going green.  He lives in Mumbai with his wife and two children.

7
Business manager :

Mr. Adil Ahmad

 Sales career spanning 14 years with experience in various industries such as

Beverages, FMCG,
 Exceptionally well organized with a track record that demonstrates self
motivation,leadership skills and initiative to achieve both personal and corporate
goals.
 Proven ability to work in a team , establishing a strong network and relationship
within and outside the organization.

Regional Manager:

Mr. Prashant Parameswaran

 Oversee the operations of multiple office, store or business branches.

 Guide, train and manage lower-level management and supervisors.
 Prepare performance reports for presentation to upper administration.
 Organize and implement training programs for staff in the entire region.

Marketing Manager:

Mr. Punit Gupta

 Manage the Marketing Team. Retail marketing managers oversee a team of marketing
specialists.
 Present Ideas to Marketing Director.
 Oversee Budget.
 Analyze Campaign Performance.
 Report on Marketing Metrics.

8
CHAPTER-3

Products and Service

Tata Tea :

 1 in the category by volume in India and,

 2 by value in market.
 2nd most trusted brand in hot beverages in India.
 1 in 3 Indian households consume a Tata Tea brand.

Tata Salt :

 India’s first packaged iodised salt

 1 most trusted food brand and undisputed market leader in India
 161 million Indian households served

Tetley :

 45 million servings consumed every day in 40 countries

 180 years of heritage
 1 in Canada and 3 in the UK
 Second largest tea brand globally

TeaPigs :

 Maintained #1 super premium brand position in the UK with 67% market share.
 Secured B-corp certification which confirms that the brand considers people, environment
and profit equally when making business decisions.
 They produce a wide range of teas, including black, green, oolong, white, rooibos, Herbal
teas, and Matcha tea.

9
Tata Sampann :
 Only national brand in pulses
 Blended spices specially crafted by celebrated chef Sanjeev Kapoor
 Trusted for staples and packaged foods
 Tata Sampann are prepared from 100% unpolished Chana Dal thereby retaining its
nutritive properties.

Tata Gluco Plus :

 Tata Gluco+ is a delightful glucose-based ready-to-serve drink with the goodness of

fruit juice & iron.
 The Brand has Continued expansion with new plants set up in Odisha, West Bengal
and Delhi NCR; a new Lychee flavor was also launched.
 TATA gluco PLUS a truly re-hydration solution.

Eight O’Clock Coffee :

Eight O’ Clock Coffee celebrated its 160th anniversary in 2019, a remarkable milestone in
the brand’s journey to deliver great tasting brews to Americans.
Originally conceptualised by the Great Atlantic and Pacific (A&P) Tea Company, it was
one of the signature products. when their first store opened in New York City.

 4 Roast & Ground coffee brand in USA

 160 years of innovation
 America’s original gourmet and whole bean coffee
 Arabica coffee beans at a medium roast. Outstandingly smooth, yet full-bodied with a
complex finish.

Himalayan :

 1 natural mineral water brand in India

 Captive aquifer at the foothills of the Himalayas
 Himalayas and then filters down for about 20 years through layers of Himalayan rocks
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Tata Cha :

 Operating six stores across prime locations in Bengaluru; relevant menu

interventions helped deliver consistent growth in revenue.
 Launched an exclusive Cha Sommelier programme for Tata Cha ‘buddies’
(employees).

MAP :

 Exited the Caffitaly capsule system and signed a licensing agreement to be the

first branded offering in the 2nd largest capsule system in Grocery – K-fee.

Jemča :

 Assumed market leadership in volume terms in Czech Republic.

 NPD launch included two new SKUs in the fruit tea segment.

Tata Coffee Grand :

 Relaunched the instant coffee portfolio with a refreshed blend as well as new and
improved pack graphics.
 This highlight the unique instant decoction crystals.

Good Earth :

 Witnessed second consecutive year of growth in USA (riding on the expanded

Sweet & Spicy.
 Added three new flavours to the Good Earth Kombucha range in Australia and
launched marketing activations that helped expand sales in Grocery and Food Service.

Vitax :

 Relaunched functional tea – Health Secret – and expanded portfolio with one
novelty tea – Sugar Expert.
 Be it a fruity punch or a spice burst

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Strategies :

 Tata Consumer Products Limited unites the Tata Group’s principal food and beverage
interests under one umbrella.
 The Group took to the creation of the company as part of its ‘One Tata’ strategy,
aimed at simplifying, synergising and scaling the enterprise.
 It gives Tata Consumer the advantage of being able to drive a much greater impact
from India to the world.
 At Tata Consumer Products, our vision is to build better lives and thriving
communities. We are on a mission to keep passionately growing and innovating every
day. Our efforts are underpinned by our values of empathy, integrity, agility,
excellence, and ownership.
 Our sights are set on playing an increasingly more significant role in the consumer
products market. We are committed to building stronger, healthier and happier
communities and helping create a better world for everyone.
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SIX STRATEGY OF TCPL :

 Strengthen & Accelerate Core Business

 Drive Digital and Innovation
 Unlock Synergies
 Explore New Opportunities
 Create a Future-Ready Organisation
 Embed sustainability

Strengthen & Accelerate Core Business :

We have a two-pronged strategy to build on our core business in India and

Internationally.

India

 We are powering our core brands by investing behind them, driving premiumisation,

expanding distribution reach, and developing alternate channels for growth.

International

 We will continue to focus on our key markets viz. USA, UK, and Canada. We are also

innovating to enhance our non-black tea & coffee portfolio to strengthen our

leadership in these markets.

Drive Digital and Innovation :

Our innovation funnel is focused on delighting an increasingly discerning consumer

base. We are also investing in digital to stay in tune with their changing preferences and
improving our brand experience.

We are driving efficiencies across the value chain to become a future-ready

organisation.
13
Unlock Synergies :

The merger of Tata Global Beverages and the consumer products business of Tata
Chemicals brought together businesses that have strong synergies.

We have successfully completed what can only be termed a complex integration, in

record time in the middle of a pandemic. Accelerating these will be one of our top priorities
for the future.

Explore New Opportunities :

Aspiring to become a much larger FMCG player, we continue to explore new

business opportunities, organically and otherwise.

While pursuing this inorganically, we will ensure that such opportunities pass muster
on both our strategic as well as financial filters.

Create a Future-Ready Organisation :

Sustainable value creation is possible only when we continue to learn and adapt to the
dynamic shifts in the market. Our new organisation structure creates the right capabilities to
foster a culture that empowers our people to realise our shared vision.

We are also ensuring that our people have the opportunity to drive greater impact
through meaningful and productive careers.

Embed sustainability :

In India as well as globally, there is growing consumer awareness and a need for
sustainability-driven brands that put a premium on quality. As part of the Tata Group, the
ethos of responsibility and sustainability are interwoven in our corporate and work
philosophy.

At Tata Consumer, our Sustainability strategy strives for better Sourcing, for better
Nutrition, for better Communities and for a better Planet.
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Innovation in products :
 Our legacy of innovation spans our range of food and beverage offerings. In 1989,
Tetley introduced the round tea bag that was suited to the growing habit of brewing
tea in mugs. This was followed by the drip-less or ‘drawstring’ tea bag.
 Our flagship brand Tata Tea revolutionised the packaged tea market in India more
than 35 years ago by introducing the flavour-locking poly pack in 1985. Our Foods
business pioneered the iodised salt industry in India in 1983 with Tata Salt.
 Our recent innovations include Tata Salt Plus and Tata Salt Lite variants, Tetley Cold
Infusions, Tata Sampann Nutrimixes, Eight O’Clock Coffee’s Flavors of America,
Tata Gluco Plus and more.

TATA SOULFULL :

Tata Soulfull, the brand owned by our subsidiary Tata Consumer Soulfull , was
launched in 2013. The brand operates in the Health & Wellness focused food segment with a
portfolio of millet-based products for children and adults. Soulfull is one of the fastest
growing brands in India’s healthy packaged foods market. With rich expertise in ancient
millets like ragi (finger millet), the brand has an innovative portfolio of products ranging
from cereals, healthy snacks and muesli to plant-based protein drinks.

15
Marketing Strategy :

Product

 15% longer leaves

 Extra special as they’re gently rolled to lock in their natural aroma
 Stock Keeping Units (SKU): 100gm, 250gm, 500gm, 1 kg

Price

 Pricing appropriate for target segment i.e. Middle class

 Proposition of value for money by offering high quality tea leaves
 Competitive pricing, lesser than most of its competitors

Brand Tata Gold Taj Mahal Red Label Wagh Bakri

(Rs.) (Rs.) (Rs.) (Rs.)

Price/250gm 100 113 112 90

16
Place

 The tea leaves are cultivated across 51 tea estates owned and controlled by Tata
Global Beverages.
 After plucking, leaves are fermented, filtered and packaged in Tata owned factories
 Packaged SKU’s sold at convenience grocery stores & exclusive stores like Easyday,
Food Bazar etc.

Promotion

 ‘Jaago Re’ campaign

 ‘Gaon Chalo’ Abhiyaan
 ‘Power of 49’ campaign
 Blogs on latest social issues
 Dedicated pages on social media sites like Facebook
 ‘Voter Registration’ campaign

TARGET MARKET

 Indian middle class and upper middle class which accounts for nearly 300 million
people.
 Targets the youth by embracing them with social awakening messages
 ‘Jaago Re’ campaign
 Targets women in a view to empower them socially
 Calls out to housewives since they are the influencers and deciders in the buying
process
 Power of 49 campaign

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SEGMENTATION : REGION WISE
Kanan Devan
 Principal Market : Tamil Nadu, Kerela, Karnataka, Goa
 Specifically sourced from the Kanan Devan Hills
 Characterized by its unique taste preferred throughout South India

Chakra Gold

 High quality Assam CTC Dust teas

 Brand in the high quality & high priced Premium Dust tea Market of South India
 Theme of Golden touch and Golden woman inspired millions of Consumers across
south India

Gemini

 Principal market: Andhra Pradesh, Madhya Pradesh, Chattisgarh, Tamil Nadu and
Karnataka
 Focus to be a strong regional player in Andhra Pradesh
 Positioned as "a strong tea for strong family relations"

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SEGMENTATION : INCOME LEVEL

Tata tea Gold

 Caters to the premium economy segment
 Aroma coupled with a refreshing taste
 Blend of 85% CTC and 15% long leaf tea

Tata Tea Premium

 Flagship brand caters to the popular segment

 Brand promises to give “asli taazgi” (Real freshness)

Tata Tea Agni

 Offering for the economy segment
 Stylish superior quality packaging; unmatched in this segment

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LEVEL OF COMPETITION

20
Product Form
Product
Category
Generic
Budget

COMPETITOR ANALYSIS : MARKET SHARE

Hindustal Unilever
22%
49% Tata Tea
20% Wagh Bakri
Others

 Average weekly Sales (250 gm Packets )

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COMPETITOR ANALYSIS : PRICING

Category Price/kg (Rs.) Hindustan Unilever Ltd Tata tea

Premium Leaf 400-430 Taj Mahal Tata Tea Gold

Premium Dust 360-400 3 Roses Chakra

Medium Leaf 330-360 Red Label Tata Tea Premium

Medium Dust 210-230 NA Kanan Devan

Popular/Economy 190-210 NA Agni

Summary of Analysis :

22
Average Score Tata Tea Gold Taj Mahal Red Label Special Wagh Bakri Taaza Unbranded

Aroma 3.60 3.87 3.53 3.05 3.42 2.95

Flavour 3.69 3.80 3.58 3.05 3.33 3.07

Advertisement 3.96 3.24 3.00 2.42 3.04 2.24

Habit 3.07 2.82 2.76 2.49 2.85 2.56

Freshness 3.51 3.56 3.31 2.91 3.15 2.89

Availability 4.16 3.64 3.60 2.67 3.24 3.25

Tata Global Beverages Marketing Strategy & Mix (4Ps) :

 Marketing Strategy of Tata Global Beverages analyses the brand with the marketing
mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are
several marketing strategies like product innovation, pricing approach, promotion
planning etc. These business strategies, based on Tata Global Beverages marketing
mix, help the brand succeed.

Tata Global Beverages Product Strategy:

The product strategy and mix in Tata Global Beverages marketing strategy can be explained
as follows:

 Tata Global Beverages, earlier known as Tata Tea Limited is one of the largest tea,
coffee and dairy brand company in India. Tata Tea’s products are known in the Indian
markets both for their affordability and high quality being the complete value-for-
money products that Indian consumers look for.
 A wide variety of products are offered as a part of its marketing mix by Tata Global
Beverages to its customers both in terms of flavors and quantities of one unit. The
major flavor offerings are the famous Tata Tea Gold launched in 2003, Tata Tetley
introduced in 2004 with the mixture of Indian herbs, lemon, ginger and earl grey.

23
 Tata Global Beverages was the first large company to offer the Masala flavor to the
consumers a hugely popular flavor of tea among Indians showing that its products are
both targeted and have a lot of research into them.
 It is also available in various sizes like 100 gram packs, 250 gram packs, 500 gram
packs and one kilo packs
 Its varieties include – Tata Tea Gold, Tata Tea Agni, Tata Tea Premium, Tata Tea
Teaveda, Tata Masala chai, Tata Tea life, Tata Tea elaichi chai, etc.
 A major distinguishing factor in Tata Global Beverages products are their packaging,
Tata tea has a very premium packing and look, this goes a long way to driving the
consumers to buy the product.
 In India, Starbucks also runs in partnership with Tata Global Beverages.

Tata Global Beverages Price/Pricing Strategy:

Below is the pricing strategy in Tata Global Beverages marketing strategy:

Competitive pricing is the platform of prices for Tata Global Beverages.

 A plethora of tea players in India given that India is a major tea producer of the world,
hence Tata tea has always been the trend setter when it comes to pricing where other
companies usually follow it.
 Differential pricing is also done by Tata Global Beverages. With so many varieties
and quantities of each product it is only expected that there is variation in prices of
different products.
 Tata tea premium for example is a premium segment tea range and is priced higher
than its other products at more than Rs.500 for a one kilo pack. Offer/incentive
pricing also helps the brand grow.
 Tata Tea usually also adopts incentive pricing model to entice its customers to buy its
products during festivities and also to keep a check on its competitors.
 Value-for-money products are the focus and hence Tata Global Beverages doesn’t shy
off before launching high priced products but they are also quite better in their overall
quality.

24
Tata Global Beverages Place & Distribution Strategy:

Following is the distribution strategy in the Tata Global Beverages marketing mix:

 Tata Global Beverages produces a variety of products and is also the largest tea player
in India quite naturally both its procurement and supply chain are very robust and
adept at swift changes.
 It manufactures around 6.5 crore Kilograms of tea in India alone per year. Its
packaging and procuring and other activities employ a total of more than 50,000+
people.
 Tata Global Beverages’ major procurement of tea occurs from Darjeeling, Assam and
Kerala where it is available cheaply as its manufactured there after which Tata Tea
packs the products and distributes it.
 It has a multi-channel distribution network which retailers, supermarkets, kirana
shops, high end shops, major online players like Amazon, etc. and an efficient online
shop via its website.
 One of the very few companies who does all the activities like processing, growing,
packaging, distribution and sales all by itself.
 Tata Global Beverages operates today in more than 45 countries in the world, has
more than 50 tea estates and has 10 blending and packing factories in India.

25
Tata Global Beverages Promotion & Advertising Strategy:

The promotional and advertising strategy in the Tata Global Beverages marketing strategy is
as follows:

 Tata Global Beverages is one of the most well-known brands today and a lot its
success can be attributed to the fact that it is a subsidiary of the powerful and trusted
Tata group.
 It has a very aggressive promotional strategy with a multi-channel approach spread
across both older channels like Television, newspapers, radio, etc.
 With innovative and newer campaigns on the ground and online via their social media
handles like Facebook, Twitter, etc.
 It is known for its great ad campaigns and social campaigns some of them are –
‘Jaago re’, ‘Power of 49’, ‘Gaon chalo’, etc. which brilliantly portrays both the ads
and issues faced by the common public in their lives.
 Blogging about tea, its benefits, their products is also used by Tata Tea. Promotional
offers with free gifts and offers are used to incentivize their customers.
 Hence this completes the marketing mix of Tata Global Beverages.

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Market Size of TCPL :

 Tata Consumer Products has a market size of Rs 30 lakh crore in the Food &
Beverages (F&B) industry, as of FY 2019-2020.
 The company has a reach of about 20 crore households in India.
 As compared to other companies in this segment, the number of brands owned by this
company is relatively low.
 At the same time, it has immense potential to diversify and launch new products in the
market.
 Tata Consumer is currently focusing on providing healthier and better quality
products at affordable prices.
 It is gearing up to face competitors such as Hindustan Unilever, Nestle, and Britannia
in India.
 The company has one major advantage when it launches new products- the ‘Tata
Brand Trust’.
 For years, the Tata Group has time and again proved to be a company that produces
the goods and quality products for all types of Indian and worldwide consumers. 

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Financial Performance :

 Over the last 10 years, Tata Consumer’s stock price has seen a Compounded Annual
Growth Rate (CAGR) of 16%.
 The company is also virtually debt-free. Its Return on Capital Employed (ROCE) is at
9.54%, which is quite low as compared to its competitors in the consumer goods
industry.
 This means that for every Rs 100 worth of capital employed, Tata Consumer earns Rs
9.5 on it. Over the last 5 years, its revenue has grown at a yearly rate of 3.89%,
whereas the industry average was at 4.88%.
 The company has a total promoter holding of 34.69%, as of September 2020. The
company has a good dividend track report and has consistently declared dividends for
the last 5 years.
 In September 2020, Tata Consumer was ranked third amongst the most valued listed
Tata companies, after TCS and Titan.
 We have seen that the share price of TATACONSUM has increased by 63% so far
this year, thus giving them a market value of about Rs 47,580 crore.
 It reported a 33% year-on-year (YoY) increase in consolidated net profit to Rs 234.33
crore. The company had posted a net profit of Rs 198.65 crore in Q2 of the previous
financial year

28
 The company’s revenue from operations was up by 18.50% YoY to Rs 2,781.34
crore, during the same period. The sales volumes of all its products have seen an
increase, on a year-on-year basis.
 The sale of domestic beverages accounted for 45%, and the sale of international
beverages accounted for 32%. The domestic food business accounted for the balance
of 23%.
 The company had also introduced cost management policies during the July-
September period.

CHAPTER – 4

SWOT ANALYSIS :

Strengths in the SWOT analysis of Tata Global Beverages

The following are the strengths of Tata Tea:

Various types of tea:

 Tata Tea has variants like Tetley, Good Earth, Vitax and Jemca each of which is a
different category of tea.
 While Tata Tea sells both leaf and dust tea under the label Tata, Tetley is primarily
premium grade leaf tea as well as tea bags.
 Vitax is a brand of herbal tea and Good earth is a specific brand of green and herbal
tea that is sold through the Good Earthbags only.
 Jemca is a brand that sells black, green, fruit, and herbal tea categories.

Presence in various markets:

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 Tata sells Tea to all parts of the world through Tetley which is the second most
popular tea in the United States and the United Kingdom.
 Vitax is sold in Poland and Jemca is popular in Czech Republic.

Pricing and packaging: 

 There is a Tata offering in every segment of the market and the pricing range of

Tata teas which starts at as low as Rs 120 for a kg for Agni Tea is one of the
reasons for success.
 The packaging of Tata Tea is done in a manner where the freshness of the tea, as
well as its taste, is retained completely.

Market penetration in India:

 Tata Tea has a good market penetration in India and the brand enjoys a market
share of 20.5 percent which is just below HUL which is the market leader with a
share of 24.5 percent.
 The company has a wide distribution channel which helps them to penetrate into
the Indian market in depth.

Value Packs: 

 TataTea launched a number of value packs at economic rates.

 The new launches include Rs 10-11 for 50 gm and Rs 5 for 25-35 gm packet.
 A 25 gm packet can make approximately 12 cups of tea.

Weaknesses in the SWOT analysis of Tata Global Beverages

Some of the key weaknesses of Tata Tea are :

Business in the Middle East:

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 Tata Tea is trying to expand in the Middle East in the region the company needs to
engage in a lot of customer engagement for which there is a lot of investment
involved.
 It is labour intensive industry and has associated issues

Inability to penetrate into the upmarket tea segment:

 Tata tea is trying to penetrate into the up-market tea segment through Tetley.
 However, it is finding a lot of issues there especially in terms of the investment
involved in promotion which is huge.
 Concentration risk over single category

Low margins: 

 The prices of tea are fluctuating in the global economy and the cost of manufacturing,
as well as packaging, is high.
 The competition is huge in most of the markets where the company operates and this
means that the volumes are low. This affects the margins adversely.

Poor penetration in the rural market: 

 In comparison to local companies in India, Tata Tea has very poor penetration in the
rural markets.
 This is a very lucrative market since rural India has a huge untapped potential
 Highly fragmented market in India

Opportunities in the SWOT analysis of Tata Global Beverages

Some of the opportunities include :

Tea pubs: 
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 Many beverage companies are entering into the pub business where specialty teas are
served along with related snacks.
 In both emerging and developed economies, there is a huge demand for the pubs.
 This is one domain where Tata Tea can focus on.
 Postion tea as a healthy drink as compared to coffee.

Value Added Products: 

 The company can look at value-added products like flavored teas, green teas or
ayurvedic or medicated teas each of which will have a lot of potential in the future.
 Increase its presence in rural market

Threats in the SWOT analysis of Tata Global Beverages

Some of the threats include:

Competition: 

 Some of the major competitors of Tata Tea are HUL, Brooke Bond, and Assam tea.
 In addition to the global and national brands, there is also a lot of local and regional
players.
 Suppliers from efficient markets like Kenya. Sri Lanka, Vietnam, etc. entering the
market
 Competition from local and regional players

Increased concerns for health: 

 The increased concerns of health have resulted in the increase in the sales of organic
tea as well as green tea.
 Tata Tea needs to increase their focus on these areas failing which it will become a
huge threat.

Buyer’s growing bargaining power :

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 Due to competition in the market & other options available
 Product differentiation
 Large number of consumers

Substitutable products :

 Coffee & Aerated drinks & Energy drinks

 Substitues like juices are becoming more popular

Supplier’s growing bargaining power :

 Large number of producers

 Low switching costs

CHAPTER – 5

CONCLUSION :

The organizational study at TCPL, helped me to understand the various

functions of an organization. It helped me to understand the functioning of different
departments and how they are coordinated and managed to achieve a common goal.
It helped me to understand how the management principles are set in to practice. The
study has helped me to understand and adapt with the challenges like difficulty in
collecting and processing of raw data, non availability of basic information,
constraints in time etc. I feel that new product development, concentrating on
corporate social responsibility, exploring new markets and providing more customer
satisfaction etc are the future prospectus of the company.

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