Tata Global Beverages Marketing Mix (4Ps) Strategy

Published by MBA Skool Team, Last Updated: April 19, 2020

Marketing Mix of Tata Global Beverages analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Tata Global Beverages marketing strategy. As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. This article elaborates the product, pricing, advertising & distribution strategies used by Tata Global Beverages.

Let us start the Tata Global Beverages Marketing Mix & Strategy:

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. Tata Tea products are produced in India itself with local consumer habits and preferences in mind. 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.


Image: company website


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


Tata Global Beverages Place & Distribution Strategy:

Following is the distribution strategy of Tata Global Beverages:

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.


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. and also 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.


About Tata Global Beverages (Tata Tea):

Tata Tea Limited now known as Tata Global Beverages Limited was started in 1964 under the Tata Group. Its headquarters is in Kolkata. It is the most successful tea company of India and the 2nd largest tea and hot beverages company in the world. It is also a major producer of coffee. It has any sub brands like Tetley, Tata Tea, Jemca and Good Earth teas. It had a net income of Rs.400 crores in FY 2017 and a total revenue of Rs.6800+ crores in FY 17. Tata Global Beverages recently came into a partnership with U.S. Company Starbucks Coffee to form Tata Starbucks as its subsidiary and the Tata group has 50 % shares in the company.

It owns over 50 tea estates only in India and Sri Lanka combined. It is spread in more than 45 countries of the world today.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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