Tata Tea, the single largest tea brand in the country and the world's second largest global branded tea operation, has announced a reduction in prices of Tata Tea Agni across SKUs. The price reduction comes despite the brand doing extremely well in all the targeted geographies. It comes at a time when tea prices are hardening on account of commodity becoming firmer. The idea behind the contrarian strategy is to clearly dominate the economy segment through Tata Tea Agni, by offering greater value to the consumers.
Currently, in the economy segment in the country, Tata Tea Agni has over 5 percent market share.
Speaking on the occasion, Ms. Sangeeta Talwar, Executive Director - Marketing, Tata Tea Limited said, "Tata Tea Agni is our vehicle to target the economy segment where the bulk of the volumes of the tea market lies. The key success factor in this segment is value for money. The first part of our strategy was to provide value through Tata Tea endorsement, differentiated product and packaging that we brought to the table. This proved a winning combination. Now in keeping with our two-pronged strategy we are keeping all elements of the mix unchanged and putting value upfront through price reduction to the end consumer. Trade margins are left intact to ensure channel partners' enthusiasm in our effort."
Tata Tea Agni is the second largest brand in Tata Tea Limited's portfolio in volume terms and has a presence in more than 22 states. Last year Agni reinvented itself with migration under the Tata Tea umbrella. The brand added value to the product by adding 10 percent long leaves and the same was communicated to the consumers with its campaign "Dus Ka Chakkar Chalao, 100% Josh Jagao". The state of the art packaging with a deep rich red connoting strength and an affordable price has helped the brand to consolidate its position in the economy segment.
Adds Mr. Sushant Dash, Group Product Manager, Tata Tea Limited, "Tata Tea's strength is in the geographical spread and the brand loyalty. The roadmap for the future clearly is to leverage both these strengths to further expand the market and Agni's share of that market. Research has shown that consumers in the economy segment have limited ability and willingness to pay a premium, but they do champion brands that don't force them to do so. Thus this price reduction serves as a reward for loyalty for existing users who have stayed with the brand."
With the reduction in price, Tata Tea Agni will now be available at Rs. 30 /- for 250 gms., Rs. 12/- for 100 gms., Rs. 6/- for 50 gms. and Rs. 3/- for 25 gms.
ABOUT TATA TEA LIMITED
Tata Tea is a leading player in the global beverages market with significant presence in over 40 countries. The company has steadily transformed itself from being a plantation business to emerge as a key player in the branded segment. Tata Tea's operations spans the entire value-chain in tea, including research and development, tea cultivation, manufacture of black and instant tea, blending, packaging, branding, marketing, sales and distribution.
For further information contact: Shalini Srivastava 9867035857 Vaishnavi Corporate Communications
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