KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES

TATA GLOBAL BEVERAGES ENTERS INTO INSTANT COFFEE “TATA COFFEE GRAND”

SUBMITTED BY:-

ANKITA SHRIVATAVA-1031

ABHILASH G.S.-003

HIMANSHU ZANWAR-1008

SOURABH RAGHUWANSHI-051

KOUSTUBH TIWARI-024

TABLE CONTENTS

S.NO. PARTICULARS PAGE NUMBER

1 EXECUTIVE SUMMARY, ISSUES, HYPOTHESIS, OBJECTIVES, ISSUES, etc…

1-4

2 BODY OF THE REPORT 5

3 FINDINGS 6-16

4 CONCLUSIONS 16

5 ADDENDA 16-19

EXECUTIVE SUMMARY

For a very long time the coffee consumption in India was related to the celebration and doesn’t enjoyed the time connection as tea enjoyed .Tea is routinely prepared but coffee is not. Coffee is served as welcome drink coffee vendors or joints are more upscale than tea. Consumption and manner of consumption is culturally determined because people are implicitly oriented to assume that it is the “right thing to do”. The way of living subtly passed on from one member to other and in this family became the fundamental unit of influence.But slowly with the increase in the disposable income and connection of coffee with the high standard of living the trend is slowly changing and coffee market is also accentuating. In this changing environment two important players emerged in the world of beverages i.e. is Nescafe and TATA.We will try to find out that whether with the introduction of TATA grand Coffee TATA will be able to influence customer and incline them towards their brand.ISSUEThe beverage arm of the $110-billion (Rs 7 lakh crore) Tata Group on Monday announced foray into the Rs 1,300-crore instant coffee market, with a new brand, Tata Coffee Grand.

The move comes as the Rs 7,833-crore Tata Global Beverages (TGB) looks to increase revenues from the coffee division, one of two areas the company has identified as future growth drivers. TGB gets 75 per cent of its revenue from tea. Coffee and water contribute around 18 per cent and two per cent, respectively. The plan is to take coffee and water revenues to 35 per cent and seven per cent, respectively, in the next few years, as the company wishes to reduce its dependence on tea.

TGB had set the process in motion a few years earlier with a tie-up with global coffee house major Starbucks. At the time, there was big gap in the packaged coffee space in India.

There is always something special about the coffee served at coffee shops. It is difficult to achieve the same taste, flavor and aroma with the coffee prepared at home. But the powerful Grand consumer promise of 'Coffee Grand delivers

taste and aroma of barista-made coffee from a coffee shop' is at the heart of the brand’s collection of coffees, transforming the convenient instant coffee into a barista-like experience.

This new entrant of coffee brand in the market will definitely excites coffee lovers and drives them towards it. But, at the same time it is important to understand that what will be the acceptance level among consumers towards a new brand

BUSINESS PROBLEM – TATA global beverages enters into instant coffee with TATA COFFEE GRAND

RESEARCH ON- consumer perception towards TATA COFFEE GRAND and their acceptance level of a new brand in the market.

Does it create any impact on customer’s preference towards coffee over tea?

OBJECTIVES –

Focus on new and premium markets Already grown up themselves in south as Mysore gold and TATA kappi but

now expanding their businesses to other corners of India as new brand Tata coffee grand- as this is not the first time TATA entering into the coffee market as they are already in this business with filter coffee but now they are planning to come in instant coffee business.

Modern roaster for supply of roasted beans to TATA Starbucks. To find out role of TATA coffee grand on changing customer preference

from tea to coffee.

Information required –

1. Consumer’s of coffee in India.2. Consumption of instant coffee.3. Existing market players information i.e. competitors ( Nescafe,

Bru).4. Consumption rate of coffee.5. People who all are ready to shift from tea to coffee or give

preference to coffee over tea.

6. Coffee drinkers who all are ready to shift from filter coffee to instant coffee.

Hypothesis

H0 - entering of TATA into instant coffee market will not bring any change in the choice of consumer’s i.e. they will keep continue using the same brand they are using presently.

H1 – TATA will bring change in the choice of consumer’s and it will be accepted by the coffee lovers.

BODY OF THE REPORT –Purpose- The research is conducted to know about the customer acceptance towards a new entrant in the field of coffee.The study is conducted just to get an idea about the coffee lovers interest whether the Indian consumers still prefer filter coffee or they are ready to switch for instant coffee.This will also helps us to know about the current consumption rate of coffee in India so, that it will become easy to know about the acceptance rate of instant coffee and the rate at which consumers are ready to go for a new brand i.e. TATA COFFEE GRAND.Also it will help to understand the likelihood of coffee as a beverage over tea among Indian consumers.Method -

1. The research design that is used for the study is exploratory in nature

2. As, exploratory research gives insights and provide direction for any further research needed. By going with exploratory method researcher can get an idea of situation for which the research is conducted that is the acceptance level of TATA COFFEE GRAND among consumers.

3. The study is solely based on primary data and the respondents were directly asked about their interests.

4. For, the collection of primary data an online survey is done in which mail is send in order to know the interests of the respondents.

5. Random sampling technique and judgmental sampling technique is used.

6. The questions are closed ended in nature and some of them are dichotomous.

7. Nominal, ordinal and likert scaling technique is used.

Findings:

Interpretation: Nowadays people prefer more of coffee than tea. People drink coffee to relieve mental and physical fatigue and to increase mental alertness. But this shows both coffee and tea are preferable by viewers.

Interpretation: As we have analyzed Most of the people will be busy in their work life so they don’t even have time to make filter coffee instead they try to prefer instant coffee.

Interpretation For 6 AND 7: As we can see in the graph that more number of people prefer coffee “any time” and this is a good sign for TATA coffee grand. Company need not function on seasonal basis.

Interpretation:

In price, 50% of people are not much considered about deciding the price of the coffee because its everyone’s need and people are ready to pay a particular price, but the TATA coffee company has to understand consumers perception towards the GRAND and see that the price is kept at moderate level. “Social stratification differentiates incomes and determines significant variations of the consumption structure.”

In quantity, 38.5% people prefer better quantity at better price. The company can focus on higher quantity at better price.

In quality, 46.2% people prefer high-richness in coffee quality. The main advantage for the company is it plant estates are located in south India and southern part of coffee consumptions are more and has high quality, there is no doubt that the company will lack its quality.

In Brand, the company has a good share of market in south but it has to more focus on its upcoming brand “TATA COFFEE GRAND” it has to focus on segmenting its product. If company gives more focus on brand management like how it had given for Mysore Kappi then the new product would be a good hit in the market.

In Aroma, taste, Freshness, The consumers are giving more focus on these 3 aspects and it is a must for TATA coffee company to look into it.

Interpretation : As shown in graph 33.33% of people prefer Sachet because it can be carried at ease instead of preferring jar. The company can focus more of sachet output.

46.2% of people try to purchase the product in markets. The company has to focus more on its distribution channel and also focus on inventory levels.

Interpretation 12, 13, 14, 15:

As shown in the graphs the company has to focus more on its strategy especially in brand awareness. They should also focus more on advertisements, and keep inventories up to date.

Conclusion:

We are accepting H1 (TATA will bring change in the choice of consumer’s and it will be accepted by the coffee lovers.). The customers are ready to accept and shift to TATA coffee grand. As we can analyze that the organization has to focus on three elements that is aroma, freshness , Taste. The company can also segment its product on youth and this would give wider acceptance in India.

In fact , as already announced publicly, the company will make a bid to enter the area of “coffee pubs” similar to the ones in the west. It is working hard on using these pubs to promote coffee as a lifestyle drink and is in discussions with leading international players to cement its approach to this segment of the market.

All in all, TATA coffee’s turnaround from a commodity outfit to a major FMCG player in the value added market has been a slow but steady one. Despite initial hiccups, the company is clear about its ultimate goal: brewing success in the coffee business, and never mind the stranglehold its competition presently has on the market.

AddendaAuthor-Harsh V. Verma Journal-Asia Pacific general of Management Research and InnovationArticle-Coffee and Tea: Socio cultural meaning, context and branding.

In this article which was published in 2013 the author described how the consumption of tea is related to the Indians and culturally attached with our traditions. Both differ in their imprinted meaning. Tea consumption is linked with the time of the day. Savoring tea marks the beginning and end of the day at home. Symbolically tea brings the family together. A certain mystique is associated with coffee consumption is uncommon and it is this uncommonness which imbues this beverages with a unique mystique associated with wealthy, refined, and intellectual evolved class.

So we have come to know that tea is linked with in house consumption with participating actors being the family members and positioned as morning and +evening beverage. While consumption of coffee mainly takes place outside the house. Its consumption location is café. The phrase ‘let’s have a coffee ‘implies ‘let’s get together’. Coffee is an alibi for opening a conversation and starting a business or intimate relationship .coffee is higher on both price and preparation complexity which moves it away from ordinaries.

Author:Sahiba Arora, Ritika Kalra and Shivani Mamgainsupervisored by: Mr. Sanjeev KumarMaster of Business administration of Graphic ERA University (Uttarakhand)Article: Customer Preference and satisfaction level towards coffee chain-A study of Café coffee Day and Barista

In this article the author actually emphasized on the learning of customer that how it gradually changed from the tea to coffee and its acceptance in Indian Society. The Nescafe instant coffee is invented by the Nestle Company as it assist the Brazilian govt. in solving its coffee surplus problem in 1938. And Pioneer of Café Concept in India with its first café at Brigade road, Bangalore in 1996. After the opening of the Indian economy the Nescafe came into India as a coffee brand and in 2000 Barista came and with its collaboration with TATA in 2001 made its distribution channel across India very strong.They are the pioneer and motivated youth to incline towards the coffee and

changed the mindset of people .Barista being more expensive enjoy the brand status of being premium choice and people were happy associating themselves with a rich brand. Nescafe developed the coffee drinking pattern and TATA took the advantage of it.TATA tea which once came with the advertisement “Jago re” now has come with the advertisement featuring a grandmother who break the shackles of monotony and teaches customer what it takes to make a great coffee.

The TATA coffee limited is a company which manufacture and export instant coffee and has an enormous capacity to produce the best quality of coffee beans. The information related to this is available in the link given below

Profile of TATA company limitedTATA coffee limited marketline company profile

The consumption pattern of coffee has changed over period of time and according to K.S.Narayanan CEO, Pan India solution, coffee consumption in India is becoming largely a commercial and cafe culture and TATA can easily hit the market with its capacity to provide them the coffee as they have large plantations in southern India.The consumption pattern of the coffee has been taken from the Financial express which came under the heading Smell the coffee the link is given belowThe consumption pattern of Coffee

Shift in product mix for coffee business is an opportunity for the TGBL to convert it into strength.