Tea gets hotter

Tata Tea
15 November 2002

Mumbai: Hindustan Lever (HLL) and Tata Tea have been slugging it out for the No 1 position in the tea market for the last couple of years. Now the action is hotting up with Godrej poised to join the fray next year.

In the past one year, the war between HLL, the fast-moving consumer goods (FMCG) giant, and Tata group company Tata Tea had both players using every weapon in their armoury - freebies like gold coins hidden in tea packets, other free gifts and discount coupons, accompanied by some slick advertising.

HLL recently rolled out a campaign to promote its flagship Brooke Bond Taj Mahal brand, which embellishes the erstwhile brand proposition 'Wah Taj' with a new ad line —Sabse Khaas Taj Ehsas — stressing its premium quality.

The company also launched Taj Mahal in a new premium pack. Says an HLL spokesperson: “The new tin pack delivers a great ehsaas to the consumer. The tea is sealed inside the tin with a tamper-proof aluminum tagger, which keeps it fresh. It is priced at Rs 60.“ A pack of tea bags sells for Rs 23.

Tata Tea hit back on the price front. The company relaunched its flagship brand Tata Tea, stressing its quality, packaging and communication, and at the same time reducing the price. A 250-gm pack is now available for Rs 46 instead of Rs 49 and the 500-gm pack for Rs 90 (Rs 96 previously).

HLL leads the market in the packet tea segment (estimated at 2,20,000 tonnes by ORG) with a market-share of 30 per cent, followed by Tata Tea with 16 per cent. Duncans Tea and Goodricke Tea have 4 per cent each.