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

EXECUTIVE
SUMMARY, ISSUES,
HYPOTHESIS,
OBJECTIVES,
ISSUES, etc

1-4

BODY OF THE
REPORT

FINDINGS

6-16

CONCLUSIONS

16

ADDENDA

16-19

EXECUTIVE SUMMARY
For a very long time the coffee consumption in India was related
to the celebration and doesnt 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.
ISSUE
The 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 tieup 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 brands 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 customers 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.Consumers 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 consumers i.e. they will keep
continue using the same brand they are using presently.

H1

TATA will bring change in the choice of consumers 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.

Method1. 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 dont 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 everyones
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
consumers 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 coffees 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.

Addenda

Author-Harsh V. Verma

Journal-Asia Pacific general of Management Research and

Innovation
Article-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 caf. The phrase lets have a coffee
implies lets 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 Mamgain
supervisored by: Mr. Sanjeev Kumar
Master of Business administration of Graphic ERA University
(Uttarakhand)
Article: Customer Preference and satisfaction level towards
coffee chain-A study of Caf 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 Caf
Concept in India with its first caf 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 limited
TATA 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 below
The consumption pattern of Coffee
Shift in product mix for coffee business is an opportunity for
the TGBL to convert it into strength.