PREFACEMarketing should not be looked upon in a vacuum or in isolation. It is an
essence taking a view of the whole business organization and its ultimate objective
concern for marketing must penetrate all areas of the enterprise. Market survey in
today’s competitive world is a must for every organization.
This project is a study of market potential of TAJMAHAL . The rational behind
this particular study is to find out the present market scenario of various brands &
to find out the corporate need and perception. It was a pleasurable experience to
conduct a research on behalf of TAJMAHAL pertaining to the study of the Tea
Sector.
Conclusion and there by recommendation has been arrived at by proper and
justified interpretation of the result derived from the above said analytical tools and
techniques.
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough
to get support from a large number o persons. I wish to express my deep sense of
gratitude to all those who generously helped in successful completion of this report by
sharing their invaluable time and knowledge.
It is my proud and previledge to express my deep regards to Respected , Head of
Department Dr.Pramesh Gautam, Miss. Neha Dubey Department of Business
Management , Swami Vivekanand Institute of Technology, College Sagar for allowing
me to undertake this project.
I feel extremely exhilarated to have completed this project under the able and
inspiring guidance of Miss. Neha Dubey He rendered me all possible help me guidance
while reviewing the manuscript in finalising the report.
I also extend my deep regards to my teachers , family members , friends and all
those whose encouragement has infused courage in me to complete to work
successfully.
(PUSHPENDRA SEN)
B.B.A Ist Sem
DELCLARATION BY THE CANDIDATE
I declare that the project report titled " Marketing Strategies of
Titan Watches " on Market Segmentation is nay own work conducted
under the supervision of Miss.Ritu Khartri Department of Business
Management , Swami Vivekanand Institute of Technology College, Sagar
to the best of my knowledge the report does not contain any work, which
has been submitted for the award of any degree , anywhere.
Date :
(ASHISH KUMAR SINGH)
B.B.A I Sem
CERTIFICATE
The project report titled " Marketing Strategies of Titan Watches
" been prepared by Mr.Ashish Kumar Singh BBA I Semester , under the guidance and
supervision of Miss.Ritu Khartri for the partial fulfillment of the Degree of B.B.A.
Signature of the Signature of the Signature of the
Supervisor Head of the Department Examiner
CONTENTS
TOPIC
TITLE
PAGE NO.
1. Preface
2. Acknowledgement
3. Declaration of the Candidate
4. Certificate
5. Introduction of TAJMAHAL
6. History of TAJMAHAL
7. Scope of the Study
8. Limitation of the Study
9. Research Methodology
10 Marketing Strategies
11 Company Comparison
12 Swot Analysis
13 Data Analysis & Interpretation
14 Limitation
15 Conclusion
16 Bibliography
17 Questionaire
INTRODUCTION OF TAJMAHAL TEA
The Tajmahal Group is a multinational conglomerate company headquartered in Mumbai,
India. In terms of market capitalization and revenues, Tajmahal Group is the largest private
corporate group in India and has been recognized as one of the most respected companies in the
world. It has interests in steel, automobiles, information technology, communication, power, tea
and hospitality. The Tajmahal Group has operations in more than 85 countries across six
continents and its companies export products and services to 80 nations. The Tajmahal Group
comprises 114 companies and subsidiaries in seven business sectors, 27 of which are publicly
listed. 65.8% of the ownership of Tajmahal Group is held in charitable trusts.
Tajmahal companies operate in seven business sectors: communications and information
technology, engineering, materials, services, energy, consumer products and chemicals. Every
Tajmahal company or enterprise operates independently. Each of these companies has its own
board of directors and shareholders, to whom it is answerable. There are 28 publicly listed
Tajmahal enterprises and they have a combined market capitalization of some $60 billion, and a
shareholder base of 3.5 million. The major Tajmahal companies are Tajmahal Steel, Tajmahal
Motors, Tajmahal Consultancy Services (TCS), Tajmahal Power, Tajmahal Chemicals,
Tajmahal Tea, Indian Hotels and Tajmahal Communications.
About Tetley
Tetley, a fully-owned subsidiary of Tajmahal Tea Limited, is the world's second largest
manufacturer and distributor of tea. Owned by India's Tajmahal 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.
After Tetley was purchased by the Tajmahal Group in 2000, most of its business in Asia has
been integrated with Tajmahal Tea and the company plans to completely integrate its worldwide
business with Tajmahal Tea by 2006. The new merged group, Tajmahal Tea Group, is the
second largest tea brand in the world after Unilever.
HISTORY OF TAJMAHAL
1980s
In the early 1980s, the tea industry in India was experiencing rising input and labor costs and
dwindling margins as well as high taxes. India was facing competition on the world market not
just from China, but also from other countries entering the business.
In 1983, Tajmahal Tea bought the stake belonging to the James Finlay group to form the
individual entity Tajmahal Tea. In the same year, the company decided to move from the
commodities business to consumer branding. The first brand Tajmahal Tea was introduced. This
was followed by other brands like Kannan Devan, Agni, Gemini and Chakra Gold. In spite of
being the largest market in the world, the concept of branded tea took time to be accepted.
In 1987, Tajmahal Tea set up a fully owned subsidiary, Tajmahal Tea Inc., in the USA.
1990s
In the 1990s, Tajmahal Tea decided to take its brands into the global markets. It formed an
export joint venture with Britain's Tetley Tea in 1992. Other new enterprises included a majority
interest in Consolidated Coffee Ltd. (Tajmahal Coffee Ltd.) and a joint venture to manage
agricultural estates in Sri Lanka. Tajmahal Tea Inc. in the United States processed and marketed
instant tea from its facility in Florida, based on sourcing of instant tea products out of Munnar
and Kerala. In 1993, they entered into a joint venture with Allied Lyons PLC in the UK to form
Estate Tajmahal Tetley.
In the mid-1990s, Tajmahal Tea attempted to buy Tetley and the Lankan JVC acquired 51%
shareholding in Watawala Plantations Ltd.
In 1997 the company was embroiled in a major scandal known as the "Tajmahal Tapes
controversy" which related to funds the company provided to the outlawed United Liberation
Front of Asom (ULFA), an armed-struggle group operating in Assam.
By 1999, Tajmahal Tea’s brands had a combined market share of 25% in India. The company
had 74 tea gardens and was producing 62 million kilograms of tea a year, two-thirds of it
packaged and branded. Towards the end of the year, the tea business was hit by a drought in
much of India. In addition, Russia, once the largest buyer of Indian tea, temporarily withdrew
from the market.
Changes in the Operational Structure of TAJMAHAL TEA as the tried to operate worldwide
and entered into JV with the Britain’s Tetley and even started TAJMAHAL COFFEE Ltd.
Moreover, had a JV to manage the agricultural estates in Sri Lanka.
2000s
An important step for Tajmahal Tea was the acquisition of the Tetley Group (based in the
United Kingdom) in 2000. It was a £271 million ($432 million) leveraged buyout. Tajmahal Tea
reportedly outbid the American conglomerate Sara Lee in what was described as the largest
takeover of a foreign company by an Indian one to date. At the time, Tetley was the world's
second largest tea company after Unilever's Brooke Bond-Lipton and had an annual turnover of
£300 million. It was the market leader in Britain and Canada and a popular brand in the United
States, Australia and the Middle East.
The company Tajmahal went globalized when the two companies Tajmahal and
Tetley got merged. Tajmahal acquired Tetley in February 2000 and the
company thus become “Tajmahal Tetley Limited”
Comparison of Tajmahal Tea & Tetley
(3/31/00) – (3/31/01) Tajmahal Tea Tetley
Turn Over $207 million $417 million
Operating Profit $36.0 million $42.6 million
Employees 59,740 1,100
Tea Estates 54 0
Key Markets India Britain, Canada, Australia,
United States
Tajmahal ’s Acquisition of Tetley
Rationale for the Tetley Acquisition
TAJMAHAL TEA: Developing Market
TETLEY: Developed Markets
CHANGE: Tajmahal had the all the plantations and the good tea crops and it had
customers all over India but with the joining of hands of Tetley it brought with the
technical expertise and significant experience making tea bags, the preferred method for
making tea in
the West
Purchasing: Tetley bought about 8,000,000 kgs of Indian teas annually from fragmented
sources. It was envisaged that Tajmahal Tea could help in sourcing or supplying Tetley’s
equirements of Indian teas
Brands: Markets where one or the other company had worked singly could be developed
jointly, leveraging the internationally known Tetley brand name. Tajmahal Tea could
help launch the Tetley brand in India, the Middle East, and Russia, traditional bastions of
Tajmahal Tea.
Technology: Tetley would give Tajmahal Tea access to specialty products such as:
flavored teas, herbal teas, organic teas, and decaffeinated teas. These introductions could
be useful additions at the top end of the Indian market.
Cost synergies: Both companies could jointly relocate manufacturing of teas, both
packets and bags, and utilize a global supply chain approach and common platforms fo
No 2
Global
Player in tea,
Stretching
across
entire
value chain
the infotech, MIS, and finance functions. While the geographic spread of operations was
information technology, could work together without physically moving across country
boundaries.
Infotech: The acquisition was seen as an opportunity to improve the infotech
infrastructure of Tajmahal Tea, improving connectivity to remote plantations and
adopting an enterprise resource planning (ERP) system to create a global supply chain
based on Tetley’s SAP-based ERP solution.
The merger was also important for Tajmahal Tea, because its main competitor in India,
Hindustan Levers Limited (HLL), a Unilever subsidiary, was gaining market share and also
because overall growth of the tea market in India had slowed. Tajmahal Tea acquired the Tetley
Group for £271 million. Tajmahal Tea used a leveraged buyout structure to acquire Tetley,
with the hopes that the cash flows from Tetley would repay the leverage over time.
Major Change occurred- “Globalization”
Type of Change- Transformational change, as with globalization there with more employees
from different countries which ultimately lead to change in cross- culture management and due
to which there was a resultant change in the system and structure of the organization.
Organizations have entered a new era characterized by rapid, dramatic and turbulent changes.
The accelerated pace of change has transformed how work is performed by employees in diverse
organizations. Change has truly become an inherent and integral part of organizational life.
Organizations operate in a global economy that is characterized by greater and more intense
competition, and at the same time, greater economic interdependence and collaboration. More
products and services are being consumed outside of their country of origin than ever before as
globalization brings about greater convergence in terms of consumer tastes and preferences. Yet
at the same time, in the midst of greater convergence, there is the opposite force of divergence at
work where companies have to adapt corporate and business strategies, marketing plans, and
production efforts to local domestic markets.
The combined Tajmahal Tea-Tetley business, with a combined market share of 4 per cent, ranks
second in the global stakes, well behind Unilever, which has lorded it over the No 1 position for
many years. Understanding that challengers have to work that much harder, Tajmahal Tea is
now girding its muscles to narrow the gap with Unilever.
In terms of products Tajmahal Tea entered new geographies. It expanded its
thinking to take in beyond the local market; the growth canvas became global, as
did the priorities
Scope of the Study
The geographical scope of the study was restricted to
Mumbai due to time and resource constraints. The study being
exploratory in nature, the sample size was restricted to 80
consumers (mostly student group) and 20 retailers. Focus being
mainly on in-depth probing, the generalizations drawn are only
indicative and not conclusive.
Limitations of the Study Response biasness could be one of the limitations.
The sample chosen may not be the true representative of the
whole population.
As the research was exploratory in nature, it was not possible
to study the accurate phenomenon of the fact.
RESEARH Methodology:In order to address the above questions an exploratory study was conducted. The idea was to probe and get deeper insight into sales promotion scenario of Lux and to tap perceptions of retailers and consumers. In order to address above mentioned objectives
(i) Study of secondary sources was carried out,
(ii) Responses of retailers were taken using structured questionnaire and
(iii) Structured questionnaire was designed to seek consumer responses.
Convenience sampling was used for both retailers as well as consumer studies. Twenty retailers ranging from small kirana store to big provision stores were approached. All the retailers were located in South Mumbai Area. The respondents for consumer study were mostly students and consumers found as per convenience in the market. The total respondents were 80 in number. Data analysis is done using software package like MS-EXCEL.
Abstract:
The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands. A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids. Soap got its name, according to an ancient Roman legend, from Mount Sapo, where animals were sacrificed. Rain washed a mixture of melted animal fat, or tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort.
Some of the early instances of commercial manufacturing of soap are:
In Britain references began to appear in the literature from about 1000AD, and in 1192 the monk Richard of Devizes referred to the number of soap makers in Bristol and the unpleasant smells which their activities produced
A century later soap making was reported in Coventry. Other early centers of production included York and Hull. In London a 15th century "sopehouse" was reported in Bishopsgate, with other sites at Cheapside, where there existed Soper's Lane (later renamed Queen Street), and by the Thames at Blackfriars Andrew pears. In 1789, he commenced production of a transparent soap at a factory in Wells Street, off Oxford Street and became hugely successful.
MARKET STRATEGIES
Strategic measures and acquisitions have led the growth over years-
Strategic Benefits for Tajmahal Tea
Change in business mix
Tajmahal Tea’s business mix to include significant sales from high growth new
age drinks – a more balanced portfolio of brands from different beverage
segments
Reduced impact of cyclicity of tea and coffee businesses
Stronger brand presence
Global focus on beverage brands
Opportunity to achieve greater globalisation
Taking the Glaceau brands to new geographies within developed markets outside
the US
Developing opportunities in emerging markets (including India) with new or
adjusted formats
111222
496
692
1097
30402968
3151
32 40135 140
314 281434
590
26 25105 115
265141 179
411
0
500
1000
1500
2000
2500
3000
3500
1983 1989 1993 1996 1999 2000 2003 2006
Turnover
EBITDA
PBT
Operational Synergies
Pooling of global talent within Tajmahal Tea’s beverage businesses to develop and
execute an integrated business plan
Cross-utilisation of distribution channels for tea, coffee and enhanced water sales
Coordination of a US beverage growth agenda for Tetley, Good Earth and Eight
O’Clock Coffee and Glaceau
New Product Development: integrated NPD and applications across Tajmahal 's beverage
businesses
Financial Synergies/Benefits
Tax shield on interest paid on debt to finance the acquisition
Avoidance of double taxation of any dividends or capital gains repatriated from the US
Savings in distribution and marketing costs in the US
Tajmahal Tea GB will be able to consolidate the earnings of Glaceau to the extent of its
30% ownership
COMPANY COMPARISON
Tea industry is highly fragmented with a large number of small companies. The branded tea market in India is dominated by two major players Hindustan Unilever Ltd (HUL) and Tata Tea with a combined market share of more than 50%. Other players include
Duncans Tea, Goodricke and some well-known regional players like Jivaraj and WaghBakri
SWOT ANALYSIS OF TAJMAHAL TEA
Strength:
Demand for tea has been growing at some 2% per annum
Technical & Manpower Skill: Due to a huge population base in India Technical & Manpower Skill is available in abundant
Good Research Support by tea growers has will help industry grow further
Weaknesses:
Labor intensive industry: The second generation labors are reluctant to join this industry hence it could pose a problem of skilled labor in the near future
TATA TEAHUL
DUNCANS
GROUP
GOODRICKE GROUP OTHERS
MAJOR TEAPLAYERS
Tata TeaAgniTata TetleyChakra Gold
Red LabelTajMahalTaazaLipton Green Label
SargamDouble DiamondShakti
GoodrickeZabardastCastleton Caddy
WaghBakriTezJay Shree Tea
No Effective Cost Management system adopted by companies and other regulatory bodies
Supply from more efficient players like Kenya, China, Sri Lanka
Declining Export of India over the years
Opportunities:
Export Potential if India can increase its production capacity
To make tea more acceptable and fashionable like coffee
To come up with new flavors/formulation of the tea, tea houses etc. to popularize the concept of tea in India
Large untapped rural market for branded tea companies like HUL and Tata Tea
Threats:
Global competition
Low Cost in some countries like China, Sri Lanka and Kenya
Import of Tea from other countries
Cost escalation on account of increase in the cost of production
Comparing the current market position of Tata Tea and HUL
PARAMETERS TATA TEA HUL
Profitability Positive but declining Profitable
SWOT Analysis High threat from substitutes. Opportunities in functional
drink market
Already exist in functional drink market
Porter Analysis Less Profitable Profitable
0 5
1 0 1 5 2 0 2 5 3 0 3 5 4 0
P E R C E N T A G E
P r i c e o ff P r o d u c t B u n d l i n g
C a sh R e f u n d
C r o ss P r o m o t i o n
S C H E M E S
P r i z e s
S a l e s P r o m o t i o n sc h e m e s
Value Chain Analysis Strong Distribution network Strong Value Chain
Core Competency Resource and Capabilities Supply chain including the distribution network and
marketing strategies
Selling USP Brand Name Price
BCG Matrix Analysis Cash cow moving towards dog Cash Cow
Comparing the HUL and Tata Tea on a BCG Matrix
Stars???
Cows Dogs
High Market Share Low Market Share
Tata Tea is moving from Stars to Cash cows with reducing growth while HUL is enj
DATA ANALYSIS & INTERPRETATION
(1)Sales Promotion Schemes Offered On Tajmahal Tea
HUL
TTL TT
The primary analysis found that “Price off” is the best sales promotion schemes offered on Tajmahal (40% of the retailers agreed on this). “Product Bundling” was the next best with 30% of the retailers in favour of the same.
(2)NORMAL DURATION OF SALES PROMOTION SCHEMES
0
10
20
30
40
50
15 Days –
1 Month
1 Month –
3 Month
More than
- 3 months
Duration
6060%
25%
15%
F requency of Schemes O ff ered
75%
20 %
5 %
L ess than 3 months
6 months- 1 year
3 - 6 M o n t h s
A f f e c t o n S a l e s
0
2 0
4 0
6 0
8 0
1 0 0
I n c r e a s e in S a le s
C a n t s a y N o E f f e c t
7 5 % S a le s
1 5 % 1 0 %
Theprimary analysis found that “1 month – 3 month” is the normal accepted duration of sales promotion schemes (60% of the retailers agreed on this). “More than 3 months” was the next best with 25% of the retailers in favour of the same
(3)HOW OFTEN SALES PROMOTION SCHEMES ARE OFFERED ON TAJMAHAL
The primary analysis found that “Less than 3 months” is the general perceived frequency for sales promotion schemes offered on Tajmahal Tea (75% of the retailers agreed on this). “3 months – 6 months” was the next best with 20% of the retailers in favour of the same.
(4)AFFECT ON SALES OF TAJMAHAL TEA TO SALES PROMOTION SCHEMES
(5)COMMUNICATION OF SALES PROMOTION SCHEMES
0 1 0
2 0 3 0 4 0 5 0 6 0 7 0 8 0
T h r o u g h S a l e s R e p r e s e n t a t i v e
T h r o u g h w h o l e s a l e r s
T h r o u g h P r i n t
M e d i a
T h r o u g h E l e c t r o n i c
M e d i a
M o d e o f c o m m u n i c a t i o n
f o r p r o m o t i o n s c h e m e s
2 5 %
4 5 %
2 0 % 1 0 %
The primary analysis found that “Wholesalers” were the best medium of communication of sales promotion schemes (45% of the retailers agreed on that). “Sales representatives” was the next best with 25% of the retailers in favour of the same
LIMITATIONS
There were many problems in integrating the two companies and these are as follows:
1. How to Integrate : The Tajmahal ’s decided that the best way to integrate was not to
integrate initially but to maintain a “joint-venture “type of arrangement. Furthermore, the
integration process was not rushed in order to protect Tajmahal Tea from the risk of
Tetley’s debt. Tajmahal Tea did not want to change that structure until the debt level was
manageable. The arms-length relationship required that Tajmahal Tea retain existing
management at Tetley. Ken Pringle remained as the Tetley Group CEO, and Tajmahal
management took new positions on the Tetley board of directors.
2. Size Difference : Tajmahal Tea was half the size of Tetley in terms of revenues and
number of upper management. Tajmahal Tea feared a domination of Tetley’s corporate
culture.
3. Financial Constraints : There were three financial constraints restricting integration.
The first constraint was that legal and capital controls in India made the listing of Tetley
shares in India unattractive. The second constraint was that Tajmahal Tea did not want to
carry the heavy debt burden held by the SPV, particularly as Tajmahal Tea was an
AAArated Indian company. The third constraint was the restrictive covenants at Tetley as
a consequence of the LBO, which meant that changes in Tetley’s structure needed to be
pre-approved by bankers.
4. Regional Players : Soon after the merger, the highly fractionated regional tea makers
in India grew faster, putting pressure on Tajmahal Tea’s market share and profitability at
home. Regional players gained 6 percent market share in 2001.
5. Operational challenges : The merger posed a variety of operational questions, such
as:
a. Growth issues: How could the combined corporate vision of “Challenging for
leadership in tea around the world” be achieved? The merger required vertical
integration between a tea production company and a global marketing company,
and the question was what growth targets needed to be defined for the individual
companies?
b. Supply chain: How should they set up processes to harness the synergies on tea
sourcing and blending, purchasing, packing, logistics, and supply to allied
functions to the mutual advantage of both companies?
c. Support processes: How should they integrate various support processes
covering Finance & Legal, IT, R&D, HR, and Communications so that the
objectives of both companies were in sync? The back-office integration was
complicated by the fact that Tetley reported in UK GAAP, while Tajmahal Tea
adhered to Indian GAAP.
d. Commercial processes: How should they put in place benchmarked processes,
which would be adopted uniformly by the two organizations?
6. Cultural/Racial: There was a great deal of concern that British employees would
resent having Indian managers. These concerns were largely the result of the fact that
India was a former British colony. Anecdotally, Tetley employees were given substantial
retention packages to avoid exodus, which may have created negative feelings among
Tajmahal Tea employees.
7. Corporate Philosophy : The two companies had different opinions on how the
business should be run. Tajmahal Tea was a collection of estates that just happened to
sell package tea and focused on Asia (excluding China), Middle East, and Eastern
Europe. Tetley was a marketing and packaging company that had relationships with tea
estates and focused on North America, Australia, and Western Europe. Due to the
significant differences in customer base, the two companies had dissimilar products. In
Tajmahal Tea’s markets, tea was usually brewed in pots, so Tajmahal Tea was an expert
in bulk and loose teas, while Tetley was an expert in tea bags and instant tea. This gave
rise to three types of differences:
a. Objectives of the company: Tajmahal Tea was an integrated tea company, with
its dual emphasis on plantation as well as domestic marketing, whereas Tetley
was primarily a global marketing company. Whose approach was correct?
b. Geographical spread: Tajmahal Tea’s international presence was limited to bulk
tea sales, whereas Tetley was into brand marketing with sizable international
presence. Which customers should the organization focus on?
c. Differences in skill-sets: Tajmahal Tea was a plantation company whose major
strengths were managing the estates, dealing with a huge work force, and making
teas. There was a drive since the mid-80s to create domestic brands and export
bulk teas. In contrast, Tetley’s strength lay in its ability to buy quality teas
worldwide, perfect its blending skills, bring about innovation in packaging, and
combine good logistics with management skills. How were people to be cross-
trained?
8. Kenya vs. India : It was initially believed that huge synergies would be achieved
because Tetley could source teas substantially from Tajmahal Tea’s estates.
Unfortunately, the majority of Tetley’s teas were of a different flavor, quality, and cost
from teas found in Tajmahal ’s estates. Therefore, the integration process had to focus
more on new products than on substitution.
9. Branding : Both companies had very strong brand names in their respective regions.
There was debate as to the surviving name of the new entity. The Tajmahal name was
not strong in Western markets, while Tetley was relatively unknown in Tajmahal Tea’s
markets. There were also talks about pensioning off the lovable—but old fashioned—
Teafolks in favor of promoting tea as a modern lifestyle choice.
10. Conglomerate : Tajmahal Tea was ultimately part of a huge conglomerate. The impact
of the conglomerate on the operations of a related foreign entity and the strength of
Tajmahal Tea within the conglomerate was unknown to Tetley employees. The Tajmahal
organization required group companies to pay fees for the use of the Tajmahal name and
adhere to standards of financial and social responsibility. The ramification of these
standards on Tetley was still a mystery.
11. Auctions/Commodity Price : The acquisition of Tetley by Tajmahal Tea came at a
time when the prices of raw materials for making Tea were increasing. There were also
rumors in the market about Hindustan Lever Limited and Tajmahal Tea controlling the
price of Tea.
12. Demand for Tea: The general demand for tea in many of Tetley’s core markets was
slowing or decreasing. This was partly because tea was viewed as a boring or
sophisticated drink. Sodas, coffee, and juices were gaining significant ground. There
were a number of questions about how to revitalize tea as a drink of choice.
13. Exchange Rate: The rupee was strengthening relative to the pound, which caused the
acquisition of teas from India to be more expensive for Tetley and made the transfer of
money back to the Tajmahal organization less remunerative.
CONCLUSION
The world retail packaged tea market is worth US$ 20.3 billion and the world ready-to-drink tea
market is US$ 24.5 billion. Currently Tajmahal Tea Ltd and Tetley operate in countries
accounting for 53% of the world packaged tea volume. Thus a significant canvass is yet to be
tarred by its global brush. The complexion of mature markets such as the UK and Canada is
changing. Consumer demand for traditional black tea products is declining, while sectors such as
specialty, green, fruit and herbal infusions are growing rapidly. To take advantage of this trend,
Tajmahal Tea has been building its business in these high value sectors during the past year by
supporting key products, anticipating and responding to consumer needs with a range of new
product developments, and making acquisitions.
The fragmented nature of the global tea market makes it ripe for consolidation and many tea
markets have strong, established brands whose presence makes organic growth slow and costly.
In this environment, acquisition is, and will remain, a vital element of our Tajmahal Tea’s
growth strategy.The Good Earth and Jemca brands have improved Tajmahal Tea’s US portfolio
and made it the brand leader in the Czech market.
Given the brand leadership role in its key markets and the current upturn in domestic demand in
most countries,Tajmahal Tea continues to invest in new product launches and explore
geographic
expansion.The out-of-home is a big opportunity that the company is looking to address. Out-
ofhome is becoming a significant feature of the tea market in India and elsewhere in the
world.The company has made progress in this direction through Real Brew iced tea concentrate
in the US and Comic vending machine, a real breakthrough.
The acquisition of 8 O’Clock has transformed Tajmahal Coffee from being a regional plantation
layer to a significant branded player globally.The company would be looking to build a coffee
play by moving up the value chain and extending existing brands into new geographies.With the
foray into the mineral water through Glaceau acquisition the company has signalled its intentions
of looking at an integrated beverage company where it leverages cross synergies for both
branding and distribution.
BIBLIOGRAPHY
Books Consulted
An experiential approach to organization development
By: Donald R. Brown &Don Harvey
Links Visited
http://www.Tajmahal .com/media/releases/inside.aspx?artid=oJbaL9LmLPs=
http://business.outlookindia.com/article.aspx?240792
http://m.digitaljournal.com/article/282149?doredir=0&noredir=1
http://www.Tajmahal tea.com/Tajmahal _tetley.htm
http://www.tetley.com/Tetleycom/TetleyGroup/OurHistory/
http://www.Tajmahal tea.com/comp_profile.htm
http://www.Tajmahal .co.in/media/interviews/inside.aspx?artid=L2LqQFHxsIA=
http://www.Tajmahal .com/media/articles/inside.aspx?artid=Ho84/twpG+M=
http://www.Tajmahal .com/media/interviews/inside.aspx?artid=Y1VmRENiA68=
http://www.seeburger.com/fileadmin/com/pdf/SEEBURGER_Tetley_User_Story.pdf
http://www.planmanconsulting.com/post-merger-culture-shock.html
http://www.Tajmahal .com/company/Articles/inside.aspx?artid=tidRQ98HOBM=
http://www.thehindubusinessline.com/2002/09/24/stories/2002092402880300.htm
http://www.Tajmahal .com/company/Media/inside.aspx?artid=vRxAuj/Xs94=
http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffee-tea/526261-
1.html
http://www.india-today.com/itoday/20000313/business.html
http://www.Tajmahal coffee.com/business_units/plantations/quality_control.htm
http://en.wikipedia.org/wiki/Tajmahal _Tea
http://www.geert-hofstede.com/
http://www.businessballs.com/changemanagement.htm
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http://www.Tajmahal .com/aboutus/articles/inside.aspx?artid=vyj45RCRud4=
DEPARTMENT OF BUSINESS MANAGEMENTSWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY , SAGAR
QUESTIONAIRE
Researcher's Name : Mr.Pushpendra Sen Name of Person : ___________________
Class : B.B.A. Ist Sem Age : _____________________________
Gender : Occupation : ________________________
Address :
Q.1Do you know about Tajmahal Tea ?
a. Yes. b. No.
Q.2. Have you used Tajmahal Tea ?
a. Yes. b. No.
Q.3 How Often Sales Promotion Schemes are offered on Tajmahal Tea
a. 6 months – 1 year b., 3-6 months c. less than 3 months.
Q 6. Rate the following factors you consider are important for building brand
Image.
a.Price b. Clarity c. Durability d. Lookse. Quality
Q 7. What do you look for while purchasing Tajmahal Tea ? Please rank in order of
importance?
a. Comparative Advantage b. Price
c. Scheme/Discount/Free Gift d. Quality
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