Project Report

On

“TO KNOW THE CUSTOMER RESPONSE TOWARDS ADVERTISING BY

TATA TEA AND MOHANI TEA”

SUBMITTED TO: SUBMITTED BY:

Mr. JAYANT SANYAL RANJEET SRIVASTAVA

2K8PGPMF45

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CERTIFICATE

This is to certify that RANJEET SRIVASTAVA student of ASIA PACIFIC INSTITUTE OF MANAGEMENT STUDIES completed his dissertation report at “TO KNOW THE CUSTOMER RESPONSE TOWARDS ADVERTISING BY TATA TEA AND MOHANI TEA” and has submitted the dissertation report in partial fulfilment of Post Graduate Program in Management for the academic year 2008 - 2010.

He has worked under our guidance and direction.

Designation Project guide name

Date:-

Place:-

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ACKNOWLEDGEMENT

All is well that ends well. Today I have reached the end of my dissertation report

Assignment. From the starting till the completion of this assignment there are many

people without whose assistance all my efforts would have been fruitless. I, therefore

acknowledge all who generously helped me by sharing their time, experience and

knowledge with me without which this project would have never been accomplished.

I wish to express my deep gratitude to Mr. JAYANT SANYAL for acting as a guide and

providing me with continuous support and guidance. This report could not have been

completed without the inputs and the words of advice from his far which I shall always

remain grateful to him.

I also thankful to outlet holders to whom I visited for their support information,

cooperation, and advice to complete my project detail.

I wish gratitude to my other faculty members for taking keen interest in my project work

and fine-tuning my efforts as and when required.

RANJEET SRIVASTAVA Roll. No- 2K8PGPMF45

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TABLE OF CONTENTS

S

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CONTENTS PAGE NO.

1 CHAPTER

Introduction to the study

Advertising.

Types of advertising.

Tea Industry in India.

1-21

8-10

11-12

13-21

2 CHAPTER

Company profile

Tata Tea

Mohani Tea

22-31

23-26

27-31

3 CHAPTER

Organizational of study

Objective of the study

Research methodology

32

33-34

4 CHAPTER

Data analysis and Interpretations 35-52

5 CHAPTER

Findings , limitation and conclusions 53-55

Recommendation/suggestion and References 56-57

Questionnaire 58-59

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EXECUTIVE SUMMARY

Fast Moving Consumer Goods (FMCG) are products that are sold quickly at relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large.FMCG products are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years.

Tea is an essential item of domestic consumption and is the major beverage In India. Tea is also considered as the cheapest beverage amongst the beverages Available in India. Tea Industry provides gainful direct employment to more than a million workers mainly drawn from the backward and socially weaker section of the society. It is also a substantial foreign exchange earner and provides sizeable amount of revenue to the State and Central Exchequer. The total turnover of the .Indian tea industry is in the vicinity of Rs.9000 Crs. Presently, Indian tea industry is having (as on 18.12.2009)

In this report I have tried to analyze the present scenario of Indian tea industry the real aim of the project is to study the effectiveness and response towards advertisement provided by Tata Tea and Mohani Tea, but many sub objectives are also included under this project so as to make it comprehensive one.

I complement this with the internal study of the companies – history, vision ,business areas etc to analyze how well poised the company are to complete or rather just exist in this market that is proving itself to be the most competitive in post liberalization Indian economy.

Primary data was collected in which focus group study was conducted to design the customer survey questionnaire with a sample size of 40 respondents. This survey was conducted in South Delhi; secondary data was collected through websites articles etc. Data thus collected was analyzed and reported.

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ADVERTISING

WHAT IS ADVERTISING?

Advertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement.  Advertising has long been viewed as a method of mass promotion in that a single message can reach a large number of people.  But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds.  However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising.

Advertising also has a history of being considered a one-way form of marketing communication where the message receiver (i.e., target market) is not in position to immediately respond to the message (e.g., seek more information).  This too is changing.  For example, in the next few years technologies will be readily available to enable a television viewer to click a button to request more details on a product seen on their favorite TV program.  In fact, it is expected that over the next 10-20 years advertising will move away from a one-way communication model and become one that is highly interactive.

Another characteristic that may change as advertising evolves is the view that advertising does not stimulate immediate demand for the product advertised.  That is, customers cannot quickly purchase a product they see advertised.  But as more media outlets allow customers to interact with the messages being delivered the ability of advertising to quickly stimulate demand will improve.

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IMPORTANCE OF ADVERTISING

Spending on advertising is huge.  One often quoted statistic by market research firm Zenith Optic media estimates that worldwide spending on advertising exceeds (US) $400 billion.  This level of spending supports thousands of companies and millions of jobs.  In fact, in many countries most media outlets, such as television, radio and newspapers, would not be in business without revenue generated through the sale of advertising. 

While worldwide advertising is an important contributor to economic growth, individual marketing organizations differ on the role advertising plays.  For some organizations little advertising may be done, instead promotional money is spent on other promotion options such a personal selling through a sales team.  For some smaller companies advertising may consist of occasional advertisement and on a very small scale, such as placing small ads in the classified section of a local newspaper. 

But most organizations, large and small, that rely on marketing to create customer interest are engaged in consistent use of advertising to help meet marketing objectives.  This includes regularly developing advertising campaigns, which involve a series of decisions for planning, creating, delivering and evaluating an advertising effort.  We will cover advertising campaigns in greater detail in our next tutorial.

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MANAGING ADVERTISING DECISIONS:

Delivering an effective marketing message through advertising requires many different decisions as the marketer develops their advertising campaign.  For small campaigns, that involve little creative effort, one or a few people may handle the bulk of the work.  In fact, the Internet has made do-it-yourself advertising an easy to manage process and has especially empowered small businesses to manage their advertising decisions. 

As we will see, not only can small firms handle the creation and placement of advertisements that appear on the Internet, new services have even made it possible for a single person to create advertisements that run on local television.  For instance, a company called Spot Runner allows users to select from a list of high-quality television ads that can be customized and then placed within local cable television programming.

For larger campaigns the skills needed to make sound advertising decisions can be quite varied and may not be easily handled by a single person.  While larger companies manage some advertising activities within the company, they are more likely to rely on the assistance of advertising professionals, such as those found at advertising agencies, to help bring their advertising campaign to market.

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TYPES OF ADVERTISING

If you ask most people what is meant by “type” of advertising, invariably they will respond by defining it in terms of how it is delivered (e.g., television ad, radio ad, etc.).   But in marketing, type of advertising refers to the primary “focus” of the message being sent and falls into one of the following four categories:

PRODUCT-ORIENTED ADVERTISING:

Information most advertising spending is directed toward the promotion of a specific good, service or idea, what we have collectively labeled as an organization’s product.  In most cases the goal of product advertising is to clearly promote a specific product to a targeted audience.  Marketers can accomplish this in several ways from a low-key approach that simply provides basic about a product (informative advertising) to blatant appeals that try to convince customers to purchase a product (persuasive advertising) that may include direct comparisons between the marketer’s product and its competitor’s offerings (comparative advertising).

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However, sometimes marketers intentionally produce product advertising where the target audience cannot readily see a connection to a specific product.   Marketers of new products may follow this “teaser” approach in advance of a new product introduction to prepare the market for the product.  For instance, one week before the launch of a new product a marketer may air a television advertisement proclaiming “After next week the world will never be the same” but do so without any mention of a product or even the company behind the ad.  The goal is to create curiosity in the market and interest when the product is launched.

IMAGE ADVERTISING:

Image advertising is undertaken primarily to enhance an organization’s perceived importance to a target market.  Image advertising does not focus on specific products as much as it presents what an organization has to offer.  In these types of ads, if products are mentioned it is within the context of “what we do” rather than a message touting the benefits of a specific product.  Image advertising is often used in situations where an organization needs to educate the targeted audience on some issue.  For instance, image advertising may be used in situations where a merger has occurred between two companies and the newly formed company has taken on a new name, or if a company has received recent negative publicity and the company wants to let the market know that they are about much more than this one issue.

ADVOCACY ADVERTISING:

Organizations also use advertising to send a message intended to influence a targeted audience.  In most cases there is an underlying benefit sought by an organization when they engage in advocacy advertising.  For instance, an organization may take a stand on a political issue which they feel could negatively impact the organization and will target advertisements to voice their position on the issue.

PUBLIC SERVICE ADVERTISING:

In some countries, not-for-profit organizations are permitted to run advertisements through certain media outlets free-of-charge if the message contained in the ad concerns an issue viewed as for the “greater good” of society.  For instance, ads directed at social causes, such as teen-age smoking, illegal drug use and mental illness, may run on television, radio and other media without cost to organizations sponsoring the advertisement.

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INDIAN TEA

The Indian tea is an epitome of taste, warmth and happiness. Tea brings cheers and this fact is well known to tea lovers all over the world being the largest producer of tea in the world India also consumes large amount of tea. "Chai" as tea beverage is known in India has become an essential part of daily life.

India produces finest tea leaf in the World and the Darjeeling, Assam and Nilgiri tea are becoming very popular all over.

The range of teas in India consists of premium much in demand Darjeeling tea leaf from Darjeeling tea estates in West Bengal, the strong Assam tea leaf and brisk Nilgiri tea from Southern India. Each of the tea producing regions in India have their unique and distinct taste of which the tea drinkers know best. The varieties in India are the white tea leaf, black tea, green tea, and organic tea. Though consumption of the black tea leaf is wide spread, the green tea is also becoming popular for its taste and healthy properties.

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DARJEELING TEA ESTATE

Darjeeling is situated in the Himalayan ranges in North Eastern India at height of 3000-5000 ft. Among the most expensive in the world Darjeeling tea leaf has a high flavor and quality. No wonder it is often referred to as the Champagne of Teas. Darjeeling also produces the finest of green tea with many estates producing organic version of green tea leaf for the health conscious as well. It is also the most preferred tea leaf in English tea rooms.

ASSAM TEA

Assamese tea estates constitute the world's largest tea growing area. Assam tea leaf produces top quality dark liquor with full bodied flavor and strength and is a favorite with the Indian tea drinkers who prefer a good strong cup of tea in their daily lives.

NILGIRI TEA

Nilgiri hills are also known as the Blue Mountains range in Southern India. The tea gardens are at a height of 1,000 to 3,000 ft. Nilgiri teas are mild and with characteristic bright & brisk liquor and light clean flavors.

POPULAR TEA LEAFS

A single plant can give rise to mind boggling varieties of tea types. The main one are green, black, white and pu-erh teas, these result due to the method of processing and growing used. The region where tea is grown also plays and important part. The flavors of tea leaf can be vastly different depending upon where the tea leaf comes from. Darjeeling tea and Assam black tea are the most popular all over the World.

Other popular forms of tea leaf are pu-erh tea and oolong tea leaf while flavored tea and spiced tea blends are also gaining popularity all over. The organic tea is simply any kind of tea which is cultivated using organic manure without the use of pesticides and fertilizers. Organic green tea and organic black tea are consumed for their health benefits, but like all organic foods they are costly.

WHITE TEA LEAF

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White tea does not undergo fermentation is less popular of the tea types. It is popular in Fujian province of China. The tea leaf gives colorless liquor, a delicate sweet flavor and a mellow creamy or nutty quality. White tea leaves are the whitish grey buds of the tea plant which are sun dried or steamed .

GREEN TEA LEAF

The fermentation of green tea leaves begins with withering, the next step is pan-frying or steaming to prevent fermentation. Once the steaming process is complete, the green tea leaves are cut dried and cured. In various countries different shapes are given to the green tea leaf depending upon the popularity Green tea is light green/yellow in color, with a subtle flavor that remind one of the aroma fresh green leaves. The health giving properties of green tea leaf are well known.

OOLONG TEA LEAF

Oolong tea leaves are among the top quality and expensive teas they are cultivated in China and Taiwan. The tea leaves are semi fermented going through a short stint of oxidation. The leaves are reddish brown in color and the liquor is pale yellow and the aroma is a fresh floral and fruity with a reminiscent of smoke.

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BLACK TEA LEAF

Black tea is the most extensively consumed form of tea all over the Globe. Black tea is fermented fully unlike the green tea leaf which is partially fermented. It has bitter sweet and astringent flavor and the tea leaf give dark brown liquor.

PU-ERH TEA LEAF

Pu-erh tea is same as black tea, but this form of tea is fermented twice than regular black tea leaves and fermentation then followed by period of maturation till a thin layer of mold forms on the surface. The mold imparts a characteristic soil-like flavor and a strong earthy quality. Puer tea (also called pu-er or pu-erh) is an ancient and rare tea, much loved in China and the only tea for some 'hardened' tea drinkers. The processes that go into making the classic puers are closely guarded secrets. It is fermented, sometimes twice, and is often pressed into cakes or bricks. This makes puer especially easy to store and keep for long periods. Generally they are robust, earthy teas with a dark red or brown color and distinctive, mysterious aroma. Puer is widely known in China to have major health benefits, especially in reducing cholesterol and as an aid to digestion, which makes it the ideal after dinner tea.

SCENTED T EA

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Scented or Flower tea is either green or white tea that has been infused with certain flowers, which impart a delicate and interesting taste, and of course a wonderful aroma. As with black tea and milk or sugar, flowers were added to green tea originally to disguise a less than favorable taste in the poorer varieties. This is still the case with many commercially produced flower teas, which hide the taste of very cheap tea behind a strong flowery presence. Flower teas, in particular the delicious jasmine, have gained such a following both in Asia and the Western world, that many people only drink this variety. The Seven Cups jasmine teas combine really fine quality green and white teas with a subtle but distinct jasmine flavor, and are a real treat, especially for dedicated jasmine fans. They are the best jasmine teas we've ever tasted.

These main types of tea leaves give rise to multitude of varieties that are a product of specific cultivation methods and the regions where they come from. The season in which the tea is grown also gives rise to difference in flavor and color.

AN OVERVIEW OF INDIAN TEA INDUSTRY

Tea is made from the young leaves and leaf buds of the tea bush Camellia sinensis. Ancient Chinese and Japanese legends refer to a beverage made from an infusion of dried tea leaves.

In 1833, the East India Company, after losing its legal monopoly of the tea trade between China and Britain, began to look for other sources of supply. As a result, the cultivation of tea in India began in 1834, with the planting of wild tea found growing in Assam in 1823.

The tea industry has an important and special place in the Indian economy. Tea is the country's primary beverage, with almost 85% of total households in the country consuming tea.

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India is the world's largest producer and consumer of tea, with India accounting for 27% of the world tea production. India's expenditure on beverages and processed foods accounts for 8% of food expenditure in rural areas, and 15% in urban areas. India is also an important tea exporter, accounting for around 12-13% of world tea exports.

Further, certain varieties of tea (for example Darjeeling) are grown only in India and are in great demand across the world. All Darjeeling teas possess the lightness of flavor and fine coloring that set them apart from all other teas.

India's tea industry exports were estimated at Rs. 17.31 billion during FY2006, accounting for 0.4% of India's exports. In value terms, tea ranks as the fourth-largest agricultural product export item from India, with exports of around US$410 million in 2004.

In terms of employment, the tea industry employs around 1.27 million people at tea plantations and 2 million people indirectly, of which 50% are women.

The last fact is particularly important when we consider that tea industry, to a large extent, drives the economies of the regions where the tea gardens are concentrated, for example Assam. Tea is the prime beverage consumed in India, and private final consumption expenditure (PFCE) on tea, coffee and cocoa aggregated Rs. 134.96 billion in FY2005, accounting for around 2% of

India's PFCE on food and 0.7% of India's PFCE. The latest available data indicates that tea accounts for 90.6% for India's consumption of stimulants (tea, coffee, and cocoa beans), followed by coffee (7.7%), and cocoa beans (1.7%). Tea plantations in India are mainly located in rural hills and backward areas of North-eastern and Southern States. The North- Eastern region with 82% of area accounts for 76% of total tea production. Major tea growing areas of the country are concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is grown to a small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar and Orissa.

The tea as an agricultural output earns more money for the country than as a manufactured product. But this by no means indicates that tea manufacturing is a nascent concept in India.

The only player that has crossed the seven seas to promote branded tea in form of Poly-packs etc is Tata Tea. But the fact that there are no other major house which has promoted itself as a tea manufacturing house provides enough scope to the houses themselves to improve their status. The Tea Industry in India is about 170 years old. It occupies an important place and plays a very useful part in the national economy. Robert Bruce in 1823 discovered tea plants growing wild in upper Brahmaputra Valley. In 1838 the first Indian Tea from Assam was

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sent to United Kingdom for public sale. Thereafter, it was extended to other parts of the country between 50's and 60's of the last century. However, owing to certain specific soil and climatic requirements its cultivation was confined to only certain parts of the country.

Tea plantations in India are mainly located in rural hills and backward areas of North-eastern and Southern States. Major tea growing areas of the country are concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is grown to a small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim, Nagaland, Meghalaya, Mizoram, Bihar and Orissa.

Unlike most other tea producing and exporting countries, India has dual manufacturing base. India produces both CTC and Orthodox teas in addition to green tea. The weightage lies with the former due to domestic consumers’ preference. Orthodox tea production is balanced basically with the export demand. Production of green tea in India is small. The competitors to India in tea export are Sri Lanka, Kenya, China, Indonesia and Vietnam.

There has been a dramatic tilt in tea disposal in favour of domestic market since fifties. While at the time of Independence only 79 million Kgs or about 31 per cent of total production of 255 million Kgs of tea was retained for internal consumption, in 2006 as much as 771 million Kgs or about 81per cent of total production of 956 million Kgs of tea went for domestic consumption. Such a massive increase in domestic consumption has been due to increase in population, greater urbanization, increase in income and standard of living etc.

Indian tea export has been an important foreign exchange earner for the country. There was an inherent growth in export earnings from tea over the years. Till 70s’, UK was the major buyer of Indian tea Since 80s’ USSR became the largest buyer of Indian tea due to existence of the trade agreement between India and erstwhile USSR. USSR happened to be the major buyer of Indian tea accounting for more than 50 per cent of the total Indian export till 1991. However, with the disintegration of USSR and abolition of Central Buying Mechanism, Indian tea exports suffered a set back from 1992-93. However, Indian tea exports to Russia/CIS countries recovered from the setback since 1993 under Rupee Debt Repayment Route facilities as also due to long term agreement on tea entered into between Russia and India. Depressed scenario again started since 2001 due to change in consumption pattern, i.e. switch over from CTC to Orthodox as per consumer preference and thus India has lost the Russian market. Another reason for decline in export of Indian tea to Russia is offering of teas at lower prices by China, South Asian countries like Indonesia and Vietnam.

The major competitive countries in tea in the world are Sri Lanka, Kenya, China and Indonesia. China is the major producer of green tea while Sri Lanka and Indonesia are producing mainly orthodox varieties of tea. Kenya is basically a CTC tea producing country. While India is facing competition from Sri Lanka and Indonesia with regard to export of orthodox teas and from China with regard to green tea export, it is facing competition from Kenya and from other African countries in exporting CTC teas.

Tea is an essential item of domestic consumption and is the major beverage in India. Tea is also considered as the cheapest beverage amongst the beverages available in India. Tea Industry provides gainful direct employment to more than a million workers mainly drawn from the backward and socially weaker section of the society. It is also a

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substantial foreign exchange earner and provides sizeable amount of revenue to the State and Central Exchequer. Presently, Indian Tea Industry is having-

Total Turnover of Rs. 10000 Crores. 31 per cent share in global production and 15 per cent of world trade. Total net foreign exchange earned per annum is around Rs. 1847 crores. 9 tea Auction centers at Calcutta, Guwahati, Siliguri, Cochin, Coimbatore etc. 1655 registered Tea Manufacturers. 2008 registered Tea Exporters. 5148 number of registered tea buyers. The labour intensive tea industry directly employs over 1.1 million workers and

generates income for another 10 million people approximately. Women constitute 50 per cent of the workforce.

Chart 1: Trend in Domestic Tea Prices

Chart 2: Trend in India’s Production, Consumption and Exports of Tea

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Chart 3: Monthly Domestic Tea Prices 2008

Chart 5: Trend in India’s Tea Exports

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COMPANIES PROFILE

TATA TEA

AND

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MOHANI TEA

Type Private

Founded Calcutta, India (1964)

Headquarters Kolkata, India

Key people Ratan Tata (Chairman)

Products Tea

Employees 35,372 (2009)

Parent Tata Group

Website www.tatatea.com

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Tata Tea Limited, also known as Tata-Tetley, is the world's second largest manufacturer and distributor of tea. Owned by India's Tata Group, the Tata Tea Limited markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMČA. While Tata Tea is the largest tea brand in India, Tetley is the largest tea company in the United Kingdom and Canada and the second largest in the United States by volume and JEMČA is Czech Republic's leading tea company.

Set up in 1964 as a joint venture with UK based James Finlay and Company to develop value-added tea, the Tata Tea Group has now product and brand presence in 40 countries. It is one of India's first multinational companies. The operations of Tata Tea and its subsidiaries focus on branded product offerings in tea, but with a significant presence in plantation activity in India and Sri Lanka.The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from bulk tea, coffee and investment income. The company is headquartered in Kolkata. With an area of approx 159 km² under tea cultivation, Tata Tea produces around 30

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million kg of black tea annually. Instant tea is used for light density 100% teas, iced tea mixes and in the preparation of ready-to-drink (RTD) beverages.

Tata Tea owns five brands in India - Tata Tea, Tetley, Chakra Gold and Gemini. The company has a 100% export-oriented unit (KOSHER and HACCP certified) manufacturing instant tea in Munnar, Kerala, which is the largest such facility outside the United States. Tata Tea has subsidiaries in Australia, Great Britain, United States, Czech Republic and India., the Tata Tea Group of Companies, which includes Tata Tea and the UK-based Tetley Group, today represent the world's second largest global branded tea operation with product and brand presence in 40 countries. Among India's first multinational companies, the operations of Tata Tea and its subsidiaries focus on branded product offerings in tea but with a significant presence in plantation activity in India and Sri Lanka.

The consolidated worldwide branded tea business of the Tata Tea Group contributes to around 86 per cent of its consolidated turnover with the remaining 14 per cent coming from Bulk Tea, Coffee, and Investment Income. The Company is headquartered in Kolkata and owns 27 tea estates in the states of Assam and West Bengal in eastern India, and Kerala in the south.

Via subsidiary companies, Tata Tea manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten tea blending and packaging factories and employs around 59,000 people. The company owns 51 tea estates in India and Sri Lanka, especially in Assam, West Bengal in eastern India and Kerala in the south. The company is the largest manufacturer of Assam tea and Darjeeling tea and the second-largest manufacturer of Ceylon tea.

Product and Brand

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The company has five major brands in the Indian market - Tata Tea, Tetley, Kanan Devan, Chakra Gold and Gemini -- catering to all major consumer segments for tea. The Tata Tea brand leads market share in terms of value and volume in India and the Tata Tea brand is accorded "Super Brand" recognition in the country. Tata Tea's distribution network in the country with 38 C&F agents and 2500 stockiest caters to over 1.7 million retail outlets (ORG Marg Retail Audit)in India.

The company has a 100% export-oriented unit (KOSHER & HACCP certified) manufacturing Instant Tea in Munnar, Kerala, which is the largest such facility outside the United States. The unit's product is made from a unique process, developed in-house, of extraction from tea leaves, giving it a distinctive liquoring and taste profile. Instant Tea is used for light density 100% Teas, Iced Tea Mixes and in the preparation of Ready-to- drink (RTD) beverages.

With an area of approx 15,900 hectares under tea cultivation, Tata Tea produces around 30 million kg of Black Tea annually.

 An important step for Tata Tea was the acquisition of the Tetley Group (based in the United Kingdom) in 2000. It was a £271 million ($432 million) leveraged buyout. Tata 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.Established in 1837, Tetley was the first British tea company to introduce the tea bag to the UK in 1953. The tea bag was followed by the first round tea bag in 1989 and the 'no drip, no mess' drawstring bag in 1997. Tetley now contributes for around two thirds of the total turnover of Tata Tea.From 2005 Tata Tea began a restructuring exercise to divest direct ownership of plantations in India, a process facilitated by subsidized loans from the World Bank's International Finance Corporation. In 2007, Tata Tea launched the campaign Jaago Re! To awaken youth to social issues. The campaign was extended into 2008. In 2009, their campaign revolves around the issue of corruption with a new ad line 'Ab Se Khilana Bandh, Pilana Shuru'.The international trade union IUF criticized the company in 2009 for not allowing statutory maternity leave to pregnant tea pluckers, and for locking out 1,000 workers on the Nowera Nuddy Tea Estate inWest Bengal for so long that the local government began distributing food coupons for emergency rations to workers and their families.

Awards Won by Tata Tea

Year Awards

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  Tea Board Awards

1989 Nowera Nuddy - Tea board award for highest yields.

1991 Nahorkutia - Tea board award for highest yields.

1992 Nowera Nuddy, Achabam, Velonie - (All India) - Tea board award for highest yields.

1993 Nowera Nuddy, Sagmootea, Achabam - Tea board award for highest yields.

1994 Nowera Nuddy, Sagmootea - Tea board award for highest yields.

1995 Nahorkutia - Tea board award for highest yields.

1996 Nahorkutia - Tea board award for highest yields.

1997 Powai - Tea board award for highest yields.

1998-2002 Awards yet to be announced by Tea Board.

MOHANI TEA

Type Private

Founded Calcutta, India (1964)

Headquarters KANPUR, India

Key people Mr. K.P.Agarwal (Chairman)

Products Tea

Website www.mohanitea.com

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Mohani Tea Leaves Pvt. Ltd. (MTL) is synonymous with the finest tea company in the industry. The company was established with the resolution that its reputation must be based on the quality of its products. We maintain commitment to quality. It manifests itself in the imaging, branding and packaging of its entire product range and has helped us achieve sales target across several states in India and reach out to millions of satisfied customers.

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In India "Any time is Tea time". Our mornings start with a cup of tea and our evenings wind up with another. And in between, people out there discuss a lot many important things over a cup of tea. Tea becomes a silent witness to major business deals. Tea provides a sigh of relief after a hectic day. Tea forms an important partner in building up relationship. Tea, in India , is all pervasive. It's an inevitable part of Indian lifestyle. And we are proud to be a part of this important lifestyle of Indians. We are confident that with the grace of Almighty, support of our people and associates, we, at MOHANI will certainly achieve greater heights of success. Through out the endeavor since 1992, our philosophy has been inspired by the Holy Geeta: "Karmanye Vadhikaraste, Maa Phaleshu Kadachana" and we will stick to this philosophy foreverThe company provides excellent value added quality tea to its esteemed customers. With a combination of outstanding service to our business associates and value for money products to our customers, Mohani Tea Leaves Pvt. Ltd. has rapidly gained faith of a chain of highly supportive business channel partners and satisfied customers, enabling our business to grow and flourish.

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We are a nationwide company focused on manufacturing high quality and strong, flavoured tea. Passionate about what we do, and how we do it, we have acquired the sort of knowledge and expertise which we believe is second to none.

Mohani Tea Leaves Pvt. Ltd. (MTL) is one of the India’s leading tea processing, marketing and branding companies. Tea buying, blending, producing tea extracts and packaged tea in various value added forms, bulk packaging, marketing, creating market reports and forecasting trends - Mohani Tea Leaves Pvt. Ltd., prides in its ability to meet its customer's needs to their utmost satisfaction, however diverse they may be.

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Our Values..... 

Continually challenging how we work with the environment, our people and our communities, and scrutinizing day to day business decisions to make sure that we are accounting for long-term sustainability and not only for short-term profit. 

Regularly working with all business associates who affect, or can be affected by the company's actions so that we understand them and are sensitive to their views and requirements. 

Ensuring that we comply industry and international standards 

Giving the environment, society and our own economic development equal share in our strategic planning 

Promoting good practice in our areas of expertise, in the community, amongst our peers and throughout our supply chain management.

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Achievements 

Special National Recognition Award Winner (for Outstanding Entrepreneurship)

Awarded by NSIC-CRISIL Rating (SE 1A) for "Highest Performance Capability and High Financial Strength"

 

"Mohani Tea Leaves Pvt. Ltd. Awarded Three Star Category from Directorate of Industries, Uttar Pradesh"

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RESEARCH OBJECTIVE

To know relative customer response towards ADVERTISEMENT by Tata Tea and Mohani Tea in the Tea Industry.

OBJECTIVE:

1. How people of different age group respond to ADVERTISEMENT.2. Positioning strategies use by Tea companies and their impact on customer.3. To find out relative customer perception.4. To find out which Tea company have good advertising and what type of

advertising subscriber like? 5. Role of advertisements on the buying behavior of the customer.

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RESEARCH METHODOLOGY

The research methodology that I undertook for the purpose of this study is enumerated below-

PRIMARY RESEARCH:

This consisted questionnaire and interaction from various people. A focus group study will be conducted to design the customer survey questionnaire with a sample size of 40 respondents. The survey was conducted in South, Delhi.

SECONDARY RESEARCH:

Sources of secondary data were primarily the Internet , journals , newspaper, annual report, database available in the library, catalogues and presentations.

RESEARCH DESIGN: DESCRIPTIVE

Descriptive studies are well structured, they tend to be rigid and its approach can not be changed every now and then. Descriptive study can be divided in two categories:

(A) Cross sectional(B) Longitudinal

Descriptive study is undertaken in many circumstances:

1. When the researcher is interested in knowing the characteristics of certain groups such as age, profession.

2. When the researcher is interested in knowing the proportion of people in given population who have behaved in a particular manner, making projection of certain things.

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The objective of this kind of study is to answer the why, who, ,what ,when and how of the subject under consideration.

I will be taking descriptive because my research includes the knowing the behavior of customer towards advertisement. I will be working on to know how people of various age group respond to different advertising or their perception towards advertisement. Also my survey is related to two companies Tata Tea and Mohani Tea.

TYPES OF QUESTIONS:

OPEN ENDED:

They give the respondents complete freedom to decide the form , length and detail of the answer. Open questions are preferred when the researchers is interested in knowing what is upper most in the mind of respondents.

DICHOTOMOUS:

This type of questions have only two type of answer, yes or no. true or false etc.

MULTIPLE CHOICE QUESTIONS:

In the case of multiple choice question the respondents is offered two or more choices. The researcher exhausts all the possible choices and the respondent has to indicate which one is applicable in this case.

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DATA ANALYSIS

AND

INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

After the data collection, it was compiled, classified and tabulated manually and with help of computer. Then the task of drawing inferences was accomplished with the help of percentage and graphic method. Different suggestions given by me to the Company after analyzing the views of every respondent are also given in the report.

Keeping in mind the objectives of the study, the survey was being done and following interpretation was being drawn.

DEMOGARPHIC FEATURES OF REPONDENTS

1. Sex ratio of the respondents

S.NO. PARTICULARS NUMBER %AGE

A MALE 32 80%

B FEMALE 8 20%

INTERPRETATION: The graphical representation of the table shows that out of 40 respondents 32 were male and 8 were female.

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2 AGE GROUP OF RESPONDENTS

S.NO. PARTICULARS NUMBER %AGE

A 15-25 16 40%

B 25-35 8 20%

C 35-45 10 25%

D 45 above 6 15%

INTERPRETATION: The graphical representation of the table shows that out of total respondents 40% were of age 15-25, 40% 25-35, 20% , 35-45, 25% and rest were above 45.

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3. LITERACY RATE AMONG THE RESPONDENTS

S.NO. PARTICULARS NUMBER %AGE

A MATRICULATE 4 10

B INTERMEDIATE 12 30

C GRADUATION 16 40

D POST-GRADUATION 8 20

INTERPRETATION: The graphical representation of the table shows that out of total respondents 4 were matriculate,12 were intermediate,16 graduate and rest 8 were postgraduate.

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4. Which Brand you prefer most ?

S.NO. PARTICULARS NUMBER %AGE

A TATA TEA 24 60

B MOHANI TEA 12 30

C OTHERS 4 10

INTERPRETATION The 24 person were used Tata Tea and 12 person were used Mohani Tea and 4 were used other.

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5. For how long you are using this Tea Product?

TATA TEA

S.NO. PARTICULARS NUMBER %AGE

A Less than 1 Years 2 16%

B 1-3 Years 3 25%

C Above 4 years 7 58%

Interpretation Two person were used since one year and three were used since one to three years and seven were used since above four year.

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MOHANI TEA

S.NO. PARTICULARS NUMBER %AGE

A Less than 1 Years 4 25%

B 1-3 Years 5 31%

C Above 4 years 7 43%

INTERPRETATIONThe four person were used since one years and five were used since one to three years and seven were used since two year

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OTHERS

S.NO. PARTICULARS NUMBER %AGE

A Less than 1 Years 4 28%

B 1-3 Years 2 14%

C Above 4 years 8 57%

INTERPRETATIONThe four person were used since less than one years and two were used since one to three year and eight were used since four year.

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6.What were the reason for choosing this tea brand?

TATA TEA

S.NO. PARTICULARS NUMBE

R

%AGE

A Recommended by friends and

relative

2 15%

B Recommended by retailer 4 31%

C Brand image 2 15%

D Advertisement 5 38%

INTREPRETATIONTwo were recommended by friends and relative and four were by retailer

and two were by brand image and five were by advertisement.

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MOHANI TEA

S.NO. PARTICULARS NUMBE

R

%AGE

A Recommended by friends and

relative

1 0.33%

B Recommended by retailer 5 41%

C Brand image 2 17%

D Advertisement 4 33%

INTREPRETATION

One were recommended by friends and relative and five were by retailer and two were by brand image and four were by advertisement.

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OTHERS

S.NO. PARTICULARS NUMBE

R

%AGE

A Recommended by friends and

relative

3 12%

B Recommended by retailer 10 40%

C Brand image 8 32%

D Advertisement 4 16%

INTREPRETATION

Three were recommended by friends and relative and ten were by retailer and eight were by brand image and four were by advertisement.

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6. While purchasing a tea brand does advertisement plays any role?

S.NO. PARTICULARS NUMBER %AGE

A Yes 32 80%

B No 8 20%

InterpretationThe eighty person were say yes and twenty were says no.

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7. from where you watch the advertisement most?

S.NO. PARTICULARS NUMBE

R

%AGE

A Television 26 65%

B Radio 0 0%

C Newspaper 8 20%

D Magazines 6 15%

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InterpretationThe mostly people sees advertisement in the television.

8. Which Tea Brand have good advertisements?

S.NO. PARTICULARS NUMBE

R

%AGE

A Tata Tea 18 45%

B Mohani Tea 14 35%

C Any other 8 20%

InterpretationThe mostly Tata Tea have good advertisement.

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9. How quickly advertisements of the Tata Tea catch your attention?

S.NO. PARTICULARS NUMBE

R

%AGE

A Very well 18 45%

B Somewhat well 10 25%

C Undecided 4 10%

D Not at all 8 20%

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InterpretationThe 18 person says very well and 10 person says somewhat well and 4 were undecided and 8 were says no.

10. How quickly did the advertisement of Mohani Tea catch your attention?

S.NO. PARTICULARS NUMBE

R

%AGE

A Very well 14 52

B Somewhat well 6 20

C Undecided 12 12

D Not at all 8 16

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InterpretationThe 14 person says very well and 6 person says somewhat well and 12 were undecided and 8 were says no.

11. Do you think that advertisement made by company informs you about there new products?

S.NO. PARTICULARS NUMBE

R

%AGE

A YES 24 60%

B NO 10 25%

C UNDECIDED 6 15%

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InterpretationThe 24 person says yes and 10 person says no and 6 person were no response.

12. Based on advertisements made by company, would you like to become loyal for the product?

S.NO. PARTICULARS NUMBE

R

%AGE

A YES 26 70%

B NO 6 15%

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C UNDECIDED 8 20%

Interpretation

The 26 person says yes and 6 person says no and 8 person were no response.

FINDINGS

1. Maximum respondents were using tea product above more than four year.

2. People like to watch advertisement on television mostly.

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3. Respondents like to purchase tea brand based on advertisements and schemes.

4. Maximum respondents were in favor of that, Tata’s advertising is better than other companies.

5. Maximum number of respondents was in favor of that, they would like to become loyal for the product

LIMITATIONS

In every Research process, there is chance of errors and errors lead to uncertainty. Errors, which have affected the study, were:

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Due to lack of time, I could not cover all over Delhi so that my study was restricted to South Delhi only.

Some time Co-operation from respondents was missing.

Most of the time respondents were not interested to answer the Question, taking it as ordinary matter of the company.

Most of the times respondents were biased and having shortage of time.

Conclusion

Any research without conclusion is aimless. So, reaching an unbiased and unambiguous conclusion is our requirement. We have seen in the section two that the comparison proved to be largely in favour of the Tata tea, no matter which category is selected during the

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comparison. This compels us to conclude that amongst the Tata tea and Mohani tea, Tata tea brand are a better choice because they are better in terms of quality and Price.

Tata tea & Mohani tea , India’s leading private sector tea industries product providers are not largest only in the customer base segment but also are head of its competitors when we talk about its promotional strategies. The project titled, “TO KNOW THE CUSTOMER RESPONSE TOWARDS ADVERTISING BY -TATA TEA AND MOHANI TEA” helped us to find out the attitude of people towards advertisement and also the effect of advertisement on their buying behavior.

Building of brand image plays a very important role in the eyes of the customer for the future prospect.Advertisement also plays a major role when it comes to buying a new product of that company.

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Recommendation/suggestions

All tea industry players should also focus on their new customers apart of retaining old customers.

Company should focus on building of brand image so that they can relate with the product.

Feedback should be taken from time to time.

Its true advertisement plays very important role but word of mouth should not be neglected.

Tea industry players should communicate certain values in order to build brand image apart of being informative.

Its true important to build the relation with the viewers so that they can relate to the advertisements.

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REFERENCES

BOOKS

Marketing Management : Philip Kottler

Marketing Research : Philip Kottler & Others

INTERNET

www.tatatea.comwww.wikipedia.comwww.google.comwww.mohanitea.com

QUESTIONNAIRE

Dear Sir/Madam

  I am the student of PGPM 4 TH Semester at Asia Pacific Institute Of Management

studies, doing a project “ TO KNOW THE CUSTOMER RESPONCE TOWARDS

ADVERTISING BY TATA TEA AND MOHANI TEA IN THE TEA INDUSTRY”

Please co-operate to fill this questionnaire.

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1. Name _________________________________________

2. Sex: (a) Male (b) Female

3. Age: (a) 15-25 (b) 25-35

(c) 35-45 (d) Above 45

4. Education: (a) Matriculate (b) Intermediate

(C) Graduation (d) Postgraduate

5. Which Brand you prefer most?

a) Tata Tea b) Mohani Tea c) Any other

6) For how long you are using this Tea Product?

a) less than 1 years.b) 1 to 3 yearsc) Above 4 years

7. what were the reasons for choosing this tea brand ?

a) Recommended by friends or relatives.b) Recommended by retailers.c) Brand imaged) Advertisement

8. While purchasing a connection advertising plays any role?

a) Yes b) No

9. From where you watch the advertisement most?a) Televisionb) Radioc) Newspaper

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d) Magazines

10. Which tea brand have good advertising? a) Tata Teab) Mohani Teac) Any other

11. How quickly did advertisement of the Tata Tea catch your attention? a) Very well b) Somewhat well c) Undecided d) Not at all.

12.How quickly did the advertisement of the Mohani Tea catch your attention? a) Very well b) somewhat well c) undecided d) Not at all

13. Do you think that advertisement made by company informs you about there products?.a) Yes b) No c) Undecided

14) Based on advertisements made by company, would you like to become loyal for the product? a) Yes. b) No. c) Not decided.Address __________________________________________

__________________________________________

__________________________________________

Phone no. ________________________________

“Thanks for your valuable time and co-operation”

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