Previously we saw the Marketing Strategies of Mcdowell, today let’s look at the SWOT analysis of Tata Global Beverages.
Tata Global Beverages is a subsidiary of Tata Group in the consumer products section, catering to the beverage market. The company offers different kinds of tea, coffee, and other nutritional drinks.
The company has a strong brand identity due to its reputed parent group, it has created its brand identity through effective marketing campaigns and digital marketing. Digital marketing is essential for any brand, if you want to learn more about digital marketing do check out Free Digital Marketing Masterclass by Karan Shah the founder and CEO of IIDE.
Before diving into the SWOT analysis of Tata Global Beverages, let us get to know about the company a little bit.
About Tata Global Beverages
Tata Consumer Products Limited was formerly known as Tata Global Beverages Limited (TGBL). It is a subsidiary of the Tata Group, is a fast-moving consumer products corporation located in Mumbai, Maharashtra, India. It is, globally, the second-largest tea producer and distributor, as well as a major coffee grower.
Tata Tea, Tetley, and Good Earth Teas are some of the company’s most well-known tea brands. Tata Tea is India’s most popular tea brand.
In 2012 Tata Global Beverages entered the Indian cafe market in a 50:50 joint venture with Starbuck Coffee. Tata Coffee, a division of Tata Global Beverages Limited, supplies coffee beans to the “Starbucks Coffee—A Tata Alliance” coffee shops.
The vision of the brand is to build a better life and thriving communities. The mission is to passionately grow and innovate every day. And the binding principles of the company are empathy, integrity, agility, excellence and ownership.
| Founder | Tata Group |
| Year Founded | 1964 |
| Origin | Kolkata, India |
| No. of Employees | 2689 (2020) |
| Company Type | Public |
| Market Cap | 76.30 Crore (2021) |
| Annual Revenue | 9749 Crore (2020) |
| Net Profit | 535 Crore (2020) |
Products Provided by Tata Global Beverages:
Following are the products offered by Tata Global Beverages
- Tea
- Coffee
- Water
Competitors of Tata Global Beverages
Being in the consumer product industry, it faces intense competition. Some of its major competitors are:
- Britannia
- Nestle
- Teabox
- Chai Point
SWOT Analysis of Tata Global Beverages
SWOT Analysis is a strategic planning tool for evaluating the strengths, weaknesses, opportunities, and threats that a firm faces and how they may affect the company’s growth. Albert Humphrey is credited with inventing this non-financial technique.
Let us look at the strength, weaknesses, opportunities, and threats faced by Tata Global Beverages.
1. Strengths of Tata Global Beverages
Elements that make Tata Global Beverages such a huge and successful business are listed below.
- Wide Range of Products- Tata Global Beverages has a wide range of products covering almost every range of drinks from different types of coffees to multiple tea options.
- Pricing – The products of Tata are very well priced which is one of the main reasons for its success. The price starts at as low as Rs 120 for a kg for Agni Tea.
- Global Presence- Tata Global Beverages sell their products All over the world in countries like the United Kingdom, America and Australia. Tetley is the second-largest tea brand in the United Kingdom and America.
- Brand Loyalty – Tata is one of the most trusted teas and coffee brands in India although it faces use competition, it has still retained customer loyalty and is a household name.
- Vast Operation- World’s second-largest manufacturer and distributor of tea. Tata Consumer Products Limited, through its subsidiaries, produces 7 billion kg of tea in India, owns 54 tea estates, operates ten tea blending and packaging factories, and employs roughly 59,000 people.
Now as we have seen the strengths of Tata Global Beverages, let us look at the weaknesses of the brand.
2. Weaknesses of Tata Global Beverages
Weaknesses affecting the business of Tata Global Beverages are as follows.
- Labor-Intensive Industry – The brand was criticized for poor working conditions, low wages, and gross human rights violations in a report released by Human Rights Institute at Columbia Law School in 2014-15.
- Concentration Risk- Tata Global Beverages focuses mainly on teas and coffee and there is a risk on concentration.
- Low-Profit Margins- Tea prices fluctuate in the global market, and manufacturing and packaging costs are expensive. In most of the markets where the company works, competition is fierce, resulting in low volumes. This harms the margins.
- Inability to Break into the Expensive Tea Segment- Through Tetley, Tata Tea is attempting to break into the upper scale tea segment. However, it is encountering several challenges, particularly in terms of the significant investment required in the promotion.
Looking at the weaknesses of the brand, we can see where it can improve. Now let us look at its opportunities.
3. Opportunities of Tata Global Beverages
Some of the opportunities that Tata Global Beverages can capitalize on are discussed below.
- More Flavours- Tata can introduce more tea and coffee flavors. Newer consumers are more interested in imaginative and creative flavor pallets. This issue also causes consumers to switch to a different brand and the brand loses its consumers.
- Tea Pubs- Pubs are the upcoming thing in the modern economy. Tata can venture into this and serve their teas with assorted snacks. This will also invite a younger demographic.
- Rural Presence- Tata can increase their product presence in rural areas as these areas have enormous potential. Tata can introduce products with smaller quantities and thus smaller prices to attract more consumers in the rural areas.
As we see, Tata Global Beverages has a lot of opportunities to improve its brand and put out new products to maintain their customers. now let us look at the threats faced by Tata Global Beverages.
4. Threats of Tata Global Beverages
Some of the major threats faced by Tata Global Beverages are as follows.
- Competition- Tata Global Beverages has huge competition in the market of tea and coffee. There are many brands like Hindustan Unilever, Nestle, Britannia, Jubilant, etc. Also increase in small businesses has resulted in higher competition in the market. Small businesses provide that personal touch that sometimes big corporations fail to provide.
- Increased Health Concerns- Increased health concerns have led to an increase in sales of organic and green tea, and Tata Tea must boost its focus on these areas, failing which it will become a major challenge.
- Substitutes – Substitutes like juices, blends, ginger health shots, etc are the new and upcoming novelties that are a real threat to teas and coffees.
Above we saw some of the threats faced by Tata Global Beverages. Now let us jump to the conclusion.
Conclusion
Tata Global Beverages now known as Tata Consumer Products Limited is a vast and enormous business empire in like any business it has its strengths weaknesses opportunities and threats.
By diving into the swot analysis of the company we came to know that although being a large brand the products of Tata consumer products Limited are concentrated in the area of teas and coffees. It has the potential to expand in various beverages like juices. Still, we can see that it is one of the largest beverage brands and has the tea and coffee market by its horns.
Marketing has played an important role in the success of the company, if you also want to learn marketing and its digital aspect, IIDE is the solution for it. The institution provides top-class courses in digital marketing.
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