Tata Tea reduces price of its product 'Agni'

Mumbai, Sep 26 (UNI) Tata Tea, which claims to be the single largest tea brand in the country and the world's second largest global branded tea operation, has announced a reduction in prices of Tata Tea 'Agni'.

With the reduction in price, Tata Tea Agni will now be available at Rs 30 for 250 gms (old price Rs 35), Rs 12 (Rs 15) for 100 gms, Rs 6 (Rs 7.50) for 50 gms and Rs 3 (Rs 3.50) for 25 gms.

The price reduction comes despite the brand doing extremely well in all the targeted geographies, said a company release. It comes at a time when tea prices are hardening on account of commodity becoming firmer. The idea behind the contrarian strategy is to clearly dominate the economy segment through Tata Tea 'Agni', by offering greater value to the consumers.

Currently, in the economy segment in the country, Tata Tea Agni has over 5 per cent market share.

Speaking on the occasion, Sangeeta Talwar, Executive Director -Marketing, Tata Tea Ltd said, ''The product is our vehicle to target the economy segment where the bulk of the volumes of the tea market lies.'' The key success factor in this segment is value for money. The first part of our strategy was to provide value through Tata Tea endorsement, differentiated product and packaging that we brought to the table, added Talwar.

This proved a winning combination. Now in keeping with our two pronged strategy we are keeping all elements of the mix unchanged and putting value upfront through price reduction to the end consumer. Trade margins are left intact to ensure channel partners' enthusiasm in our effort, she added.

Sushant Dash, Group Product Manager, Tata Tea Limited said, ''Research has shown that consumers in the economy segment have limited ability and willingness to pay a premium, but they do champion brands that don't force them to do so. Thus this price reduction serves as a reward for loyalty for existing users who have stayed with the brand.'' UNI KKD KU SKB1629