In an effort to maintain pace in the ongoing economic slowdown, tea manufacturer Tata Tea has embarked upon a multi-pronged strategy for different markets across the globe. To strengthen its retail operation in the US market, TTL had shifted the administrative, sales and marketing office of its brand, Good Earth tea from Santa Fay near San Francisco to Montevale near Connecticut for cost control and consolidation.
According to Percy T Siganporia, managing director, Tata Tea, the company, in Great Britain, plans that it would not go for volume increase, nor for the extreme promotions for retention of better margin.
“In first nine months of the current fiscal, we have spent about Rs 580 million on various initiatives across the globe. We are not accelerating our acquisition agenda.”
Recently, TTL’s board of directors relocated Siganporia to company’s UK firm Tata Tea (GB) Inc in London. “We are trying to build the executive office in London where the CEO, the deputy CEO, the chief financial officer, global innovation and brands director, HR director along with the mentor will be there,” said Siganporia.
For the Indian market, the thrust would be on protecting the profit and business growth so that at the time of downslide in the commodity market, the company could grow with a larger base and margin alternatives. “To play either in terms of value to consumers or on retention based on each brand equity,” concluded Siganporia.
— IndiaRetailing Bureau
