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Thursday, June 3, 1999

Tata Tea targets higher Agni sales in bid to up packet segment share 

Nandini Goswami  
Calcutta, June 2: Tata Tea has targeted sales of 16 million kg of its recently launched brand Agni for the current year. This is part of a strategy to strengthen its position in the packet-tea segment.

Tata Tea managing director SM Kidwai said that the company, which packs almost 75 per cent of its tea in packets, is slated to consolidate its position further in the value-added segment. "The Agni brand has been able to make substantial volumes in recent times and going by the extent of repeat orders, it was justified to set ourselves ambitious targets," said Kidwai.

According to Kidwai, the economy segment or the loose-tea convertor segment is the fastest-growing, and focusing here is warranted. The idea is not to turn away consumers from existing brands in the particular segment but to bring in more consumers from the loose-tea segment to this particular brand, said Kidwai.

A correct marketing and product mix has helped the company achieve substantial volumes in the segment. A strong dealer network andretail base have helped the brand establish a strong footing, Kidwai added.

In the economy segment, a slew of brands exist and only a proper combination of parameters including the pack design, regional blends, and pricing will help increase consumption.

Agni, which was initially launched about four months ago, covered almost all the states but left out states like Orissa, Rajasthan, Gujarat, and the North East. "Given the response of the brand, the company is in the process of firming up plans to launch this tea in some other states as well," said Kidwai.

Tata Tea is slated to increase its dependence on auction teas in a big way and target higher volumes. Most of the company's brands consume the tea that the company grows at its gardens.

"Getting consumers to repeat the Agni brand as a preferred option in comparison to local brands in that particular segment, enhancing retail level trade by placing correct margins, etc, form a part of Tata Tea's marketing strategy for its Agni brand," saidKidwai.

In quick succession to its Agni brand, Tata Tea had also launched another brand "Lucky Cup" for the southern markets. More of a regional brand, this is a premium-dust product catering to the markets of Tamil Nadu and Andhra Pradesh.

"The idea of launching this brand was to provide a sharper focus to teas existing in various segments. Moreover, for Tata Tea, this happens to be a brand that has much promise over other brands in a regional space," said Kidwai.

Tata Tea's other brands include its flagship "Tata Tea", which has a considerable market share across the North Indian heartland, while its other brands like Kanan Devan, Chakra, and Gemini account for over 65-70 per cent of the market in regional pockets of Andhra Pradesh and Tamil Nadu. The lesser-consumed brands include Leo, Chola, and Brahmaputra.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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