Friday, February 27, 2009

As Tata Tea’s market slips and as the present younsters vote for coffee over tea, what’ll be the battle cry from Tata’s end? Will ‘Jagho re’ work for

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CHAI ANOTHER DAY!

Look around you: how many coffee chains can you spot at a typical urban shopping complex, or how many coffee outlets can you spot as you drive past? Many, right. Now, for the truth: how many tea chains can you even recall, forget about spotting them at the right locations?! Today, coffee has made some special place in the hearts of the young in a nation known to be a ‘tea-drinking’ nation. So what is Tata Tea really doing to prove that chai will not become history for Tata Tea? Wait for some weeks and you’ll stand witness to the company’s ad-campaign which will be supported by massive promotional activities. So if cajoling consumers (by reminding them of their social responsibility) through the jaago re campaign was not enough, the upcoming marketing effort promises to deliver better goods... for reviving Tata Tea’s once known core beverage. “We are not claiming we will come out with funky campaigns but we would be coming out with campaigns to promote tea. This is because today’s generation connects tea with old people,” feels a seemingly confident Sangeeta.

Where ‘Place’ (of 4Ps) is concerned, Tata Tea is adopting the direct retailing route. In the initial stage, it plans to experiment with two-three outlets limited to just Bangalore. Christened as chai-un-chai, the company also plans to roll-out two new formats - the high street format (similar to cafes) and a tie-up with bookstores. But doesn’t Nestlé and Café Coffee Day already have such similar outlets, pan-India? Question Sangeeta on this and she shoots back: “Nobody is promoting tea as almost all of them focus only on coffee. And then, we are also open to the option of taking our retail outlets across India which will make our movement better and wider...”

Indeed, for now it appears that Tata Tea’s third eye is focussed on tea alone. But there’s another challenge: creating tea-outlets would require a sturdy supply base and here Tata Tea can take a lesson from Café Coffee Day, which cultivates its coffee beans in its captive gardens! Surely, till date, Tata Tea has been known to follow the ‘good riddance to tea gardens’ theory. It can... no more! Percy is now betting big on his plans to re-structure Tata Tea’s existing tea estates in northern India. The ongoing jaago re campaign was devised with an aim to establish a social awakening among the youth, to motivate them to vote. But in its election against all other players in the tea market, Tata needs to come up with such campaigns to beat the wind out of competition – organised or not organised. Thankfully, for now, chai still means tea for Tata Tea!


Angshuman Paul


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An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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