Tata Tea Limited
Tata Tea (now Tata Global Beverages) has a strong presence in India, its home market, based on a value proposition of guaranteed freshness and quality stemming from its control of the supply chain from “tea bush to teacup.” Tata Tea has expertise in plantation management and tea cultivation. It sells mainly to the mass market in India. Internationally, the company sells bulk tea that is blended and sold by branded tea marketers. In late 1999, Tata Tea, was presented with the opportunity of acquiring Tetley’s Tea, the world’s second largest tea brand which enjoys strong market positions in the UK, US, Canada, and Australia and seeks to expand into other Western European markets and emerging regions. The question is, should Tata Tea make an offer for Tetley and, if so, how much should it offer?
The primary teaching objective of this case is to discuss how one can value a brand. The case provides sufficient data to value the Tetley brand using three different approaches.
The support materials include a spreadsheet for valuing Tetley using the three different approaches. The support materials also include a deck on the different ways of valuing a brand.
The case has been used successfully in both MBA courses on branding as well as in executive programs targeted at marketing and branding professionals.