1. Identify and explain the key demand characteristics of Tata Tea’s target customers – what influences these customers to purchase their product?
Tata Tea’s target market: * Indian middle class and upper middle class that accounts for nearly 300 million people. * Targets the youth by embracing them with social awakening messages * Targets women in a view to empower them socially * Calls out to housewives since they are influencers and deciders in the buying process
Factors influencing purchase of tea & coffee In selecting tea & coffee, the consumers may be considering some factors. These factors were price, quality, taste, flavor, environmental concerns, social concerns, impact on health, family preferences, peer acceptability, familiarity with the supplier, reputation of the supplier, certification mark and promotions and discounts… 2. How have Economies of Scale helped/hindered Tata tea in their overall global operations – in what areas are there advantages and disadvantages for Tata tea?
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.
The purpose of mergers and acquisitions of Tata Tea is reaching the operational efficiency in the worldwide The restructuring combined with business strategy will bring many benefits for Tata tea brand in the international tea market; to be a global brand, gaining economics of scale, holding more market share and generating higher profits.
However, there are not only benefits, Tata Tea have also some challenges from Economics of scale.
Benefits
* Helping the company easy to raise capital, streamlining operations, reducing costs, making ensure a global professional sourcing, bringing