Tata Tea Ltd, the world?s second largest tea company is drawing up a multi-pronged strategy to gain a competitive edge in the branded beverages sector. Initially, the company is planning to restructure in order to operate as a single integrated beverages company in India. The company also plans to enhance its global footprint through strategic acquisitions that provide access to key customer segments across geographies as part of its growth strategy.
While building strong beverages brands for sustainability, the company plans to increase share of business from value added high margin products like specialty, fruit and herbal teas across the globe. According to industry analysts, Tata Tea is chalking out an aggressive growth strategy for the next quarter to take on rivals in domestic and international markets. ?Last year, Tata Tea announced its volume leadership in the branded tea markets in India. In Q2 this fiscal, the company?s arch rival Hindustan Unilever has gained volumes to register a 23.45% growth. ?Now, the real battle for market share will begin in Q3,? said an analyst based in Mumbai.
Innovation seems to be the name of the game in the Indian branded tea industry. To address new emerging opportunities arising from changes in lifestyles, Tata Tea is sharpening its focus on innovative products in domestic and global markets, said Percy Siganporia, managing director of Tata Tea while outlining the company?s future outlook.
On the company?s growth strategy, Siganporia, said, ?We are working on new technology to upgrade our offerings. We are sharpening our focus on ?health & wellness? platform in global markets. In India, we are doing it in a subtle manner.? According to Siganporia, the company?s vision is to be ?India?s foremost tea-based beverages company?.
Currently, Tata Tea is in the process of shifting its key marketing operations from Kolkata to Mumbai, ?Our marketing wing is moving with its bag and baggage to Bangalore,? said Siganporia. In a bid to gain high visibility for its tea and mineral water brands, the company is hiking its ad budget by 15% this fiscal. The company is gearing up to launch a new range of liquid beverages and ?GenNext? brands, including fortified water, flavoured water and vitamin water in the next few months. Incidentally, the company is also eying the ice tea segment in India this year. At present, the company?s beverage brands in India include, Tata Tea, Tata Coffee, Tetley and Himalayan (packaged water brand).
The company is beefing up its marketing and advertising strategy to take on its arch rival HUL in the Indian market place. To support its ?Jaago Re! One Billion Votes Campaign? the company is now conducting an aggressive ?Outreach Programme? across the country. Enthused by the response to its new ?Jaago Re!? campaign, the company is supporting its television ads with internet and print ads.
