The Indian coffee aisles are rolling out the red carpet for a new entrant on the market. With a net worth of INR 7,833 crore Tata Global Beverage is gearing up to roll out its coffee brand Tata Coffee Grand.
The coffee, which is already available on Amazon India, is expected to pump up the earning of Tata’s coffee division by involving itself in the INR 1,300 crore Indian coffee market.
As of now the country’s coffee mugs are dominated by two major brands – Nestle’s Nescafe and Hindustan Unilever’s Bru with a 51% and 49% share in the market respectively. To carve a perceptible niche for itself, Tata Coffee Grand will have to take on these two magnates.
Initially Tata had planned to extend Mr. Bean, Tata Coffee’s packaged coffee bean brand, into the instant coffee market in India, but it was deferred as a new product came up.
Business Standard quoted Sushant Dash, regional president, India, TGB,, “The reason for this was that there was room available for a new product in the instant coffee market.” Grand was developed after months of research and consumer studies and, “there was no question of getting the product wrong,” he said.
The TGB Manifesto
Tata has invested considerable money and time on TGB with beans brought in from its own plantations and blended with special ‘decoction crystals’, which, according to the company, allows the coffee to dissolve instantaneously.
Talking of the flavor, Tata has worked hard on getting that right as well. The company says the taste should appeal to the youth and working class, and devotees of the cafe culture.
The packaging too has been done keeping in mind an image that breaks away from the ordinary. The company has purposely chosen to do away with traditional coffee packaging colors such as brown, green or red for a dark shade of blue.
Despite two such enormous brands already ruling the market, Tata hasn’t prices it’s products any differently. A 50-gram bottle has been priced at Rs 130 in the north, west and east regions, while in the south, it is priced 7-8% lower, similar to the Necafe Gold and Bru Gold prices.
Also, TGB will be challenging Nescafe and Bru at the sachet level with 50-gram pouches and sachets priced at Rs 3, Rs 5 and Rs 10 respectively (just like the existing two).
However, in the Southern market, which accounts for 80% of coffee consumption in India and is also shifting towards instant from roast and grind, TBG will be launching with a different price range.
The past year has seen a lot of perked up advertising and marketing strategies in the coffee game. While Nescafe ditched famous faces for the ‘I all starts with a Nescafe’ slogan, Bru went ahead and signed up celebs.
Tata, too, will be catching up shortly. According to Sushant Dash, that advertising and marketing communication for the new product would roll out shortly. This would include all media, digital, television and print, he added.