SWOT analysis of Tata Coffee analyses the brand/company with its strengths,

weaknesses, opportunities & threats. In Tata Coffee SWOT Analysis, the strengths
and weaknesses are the internal factors whereas opportunities and threats are the
external factors.
SWOT Analysis is a proven management framework which enables a brand like Tata
Coffee to benchmark its business & performance as compared to the competitors and
industry. Tata Coffee is one of the leading brands in the food & beverages sector. The
table below also lists the top Tata Coffee competitors and elaborates Tata Coffee
market segmentation, target group, positioning & Unique Selling Proposition (USP).

Tata Coffee SWOT, Competitors, Marketing STP & Brand analysis Table

Tata Coffee Brand Analysis

Parent Company Tata Group

Category Food Processing

Sector Food & Beverages

Tagline/ Slogan Discover the refreshing world of Tata Coffee

USP Refreshing taste of coffee

Tata Coffee STP

Segment People looking to have quality coffee

Target Group All people in the upper and middle class

Positioning Experience the best refreshing coffee

 Tata Coffee SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWO

of Tata Coffee. Strengths are:
1. Strong brand name and one of the largest integrated coffee planta
world
2.Has brought about continuous improvement in harvesting and pro
Strengths
techniques by working with Starbucks
3. Has diversified into timber business as well under brand name “C
4. Strong backing by parent company
5. Good distribution and availability
6. Good visibility through print ads

Here are the weaknesses in the Tata Coffee SWOT Analysis:

Weaknesses 1.Intense competition means limited market share
2.Health conscious people avoid coffee as it Contains caffeine

Following are the Opportunities in Tata Coffee SWOT Analysis:

1.Also, domestic consumption being very small, there lies a huge o
Opportunities
expand the market with the help of intensive coffee promotion
2.Opportunity in terms of diversification into other businesses

The threats in the SWOT Analysis of Tata Coffee are as mentioned

1.Cheap labour is one of the most critical cost factors in coffee prod
Substantial increase in labour cost can erode competitiveness of Ind
Threats the international markets
2.Coffee is one of the few agricultural crops in India which is subje
3.Russia, the largest importer of coffee from India, is undergoing an
crisis. As a result, it has suspended coffee imports

Tata Coffee Competition

Below are the top 4 Tata Coffee competitors:

Competitors
1.McLeod Russell India
 2.Jay Shree Tea and industries
3.Bansisons Tea Industries
4. Nestle

The brandguide table above concludes the Tata Coffee SWOT analysis along with its
marketing and bran

Product diversification is very important in a business, where the consumers will be affected
psychologically because sometimes the consumers want something instant without take long time to
prepare for consumption. Product diversification was fundamental of the market development by
increasing business strategy through brands design and product innovation in various forms. This is will
increase sales volume which would expand the market for export. However, the quality of products
must still be considered, in order to give a satisfaction to the product users. Therefore, diversification is
required.

Lack of Infrastructure and Transportation In order to drive of coffee from field to another place
transportation and good infrastructure such as road is required, but then still as a barrier for coffee
producer in Timor-Leste and of course it greatly affects in their business certainly. The roads conditions
are unfavourable not only affects the distribution but will also affect the increase in operational costs
due to the long time-consuming as well as affect the quality of the products that eventually the coffee
price will be low.

On the other hand, in international market relation transportation process in delivering coffee is often
late. It is because there is no regularly freight is coming and as well as affected by lack of management in
scheduling or time table to ship the product. Furthermore the port is too small to more than two ships
can lean back even they have been anchor for more than one week. It is also affect to the quality of
coffee production and coffee price because of long distance to transport to country destination.

Financial Government considered to expand the coffee plantation not only prepare the coffee seeds, but
needs more money to invest to increase the coffee production, since now government only focus on
infrastructure in agriculture sector to produce rice, not spent much money in coffee sector. Said
National Director of Plantation Coffee Industry. “Based on the Strategy of the National Development
Plan should focused on the Agriculture sector but then they still focused on the infrastructure in
practice, therefore we cannot produce more coffee as what we expected” He argued to expand the
coffee trees and regeneration of coffee need money to success the program further he said: “Another
problem is fund, the government not serious about our program, they did not put enough budget in our
planning, for example, we have plan to expand until 100 hectares but because difficult of the financial
we expand coffee plant just 50 hectare”.

Technical support During the research we collected some information related to the government
support in coffee sector. We found some issue from government that the technical support to coffee
sector still low in term of knowledge of the extension, even though they have better skill, but still have
integrate to the society, and really want to do their work.

Competitors In this barrier we focusing on the how the each manager competes with the other to
sustainable their productivity of coffee. During the interviewed production of coffee in Timor-Leste is
very low compare to others countries. Based on this manager have strategies to get the coffee from the
coffee farmer. As mentioned some informant.

Market Distance Most of the exporter coffee in Timor-Leste sells their coffee to wholesaler market in
USA, and European countries. Some of them export to neighbour countries such as Indonesia and
Australia. They recognized market distance is very affected to their coffee price, before they deliver to
wholesaler they needs to deals with the price if the price is good from them they will sell it if not they
will keep it and looking for another buyers.

Internal Barriers Human resource capability is the main key of success for a company. According to this
theory, in our research we found that there are a lot of internal barriers such as: lack of human resource
knowledge and capabilities in terms of management capability. Lack of quality, lack of production, lack
of branding, no product diversification, and lack of organization structure are all presented in this sector.
Those internal barriers will affect the continuity and existence of the company in a market. Managers
should search for a better way to convince the farmers to increase the coffee production; otherwise the
challenging current situation can only become more challenging. Current organization is not optimal in
terms of human resource management. Lack of creativity and innovation in branding of coffee does not
make a strong presentation of coffee from Timor-Leste to international markets. Management
responsibility is weakened due to lack of structure in the organization. For example CCT has no
marketing and export department and all the issues are handled directly by deputy manager. It affects
the company as the decisions rely solely on the knowledge and capability of the deputy manager.
Demand for Timor-Leste’s coffee is higher than current supply rate, and increase in production is the
main issue for these companies. Even if the coffee is hundred percent organic, there is no local
laboratory to test the originality and confirm that. So, the coffee lacks a serious certifying actor to be
able to ask for higher prices. 6.1.4 External Barriers Lack of infrastructure and transport are main
external barriers. It hinders the farmers to meet with potential buyers and deliver the product to the
market. A lot of roads still remain in poor condition thus leaving the rural area disconnected from towns
and cities. It certainly affects the transportation costs. When it comes to export, the only working port in
the capital of the country is too small and does not freight enough. It affects the speed of
transportation. When it comes to international trade, the port is too small and freight is not often,
which prolongs the transportation time to destination country. Long distance sending decreases the
price and in some cases the quality of coffee. The majority of coffee in Timor-Leste is grown in the hills
and in rural area. 51 Government laws and regulations are not sufficient. The laws of land and property
rights are weak and do not allow the companies to effectively communicate with farmers. Moreover,
the government political system and budget allocation are not effective in this sector. Currently the
interest in agriculture sector development, especially in coffee industry is weak. Companies have
troubles in communicating the message of increasing the coffee production due to illiteracy of farmers.
Implications for companies The major challenge revealed is a lack of coffee due to different treasons
discussed above. This lack of supply threatens the stable position of coffee exporters in Timor-Leste in
international markets. Therefore, a series of actions should be implemented in order to increase the
production and achieve the next level of development: 1. One of the possibilities, in the struggle for a
higher production, is diversification. As we have learned, managers have been thinking of exporting such
products as peanuts, cacao, soya beans etc., because Timor-Leste has several potential areas to produce
these products in agriculture sector. 53 2. Companies need to differentiate their product and improve
the quality of coffee. All the coffee exported comes in form of green beans to the wholesaler and further
comes to the buyer without the traces and recognition of the coffee from Timor-Leste. Therefore the
wholesaler takes advantage of the pricing. Being different from other exporters and having some
organic coffee of highest quality, companies should involve in negotiating the prices, not merely accept
the offer from the buyer. 3. Companies should keep trying to buy the land and build new plantations of
coffee to avoid the lack of supply coffee in the nearest future, due to the lack of understanding from the
local farmers and difficulties in their education and training. Otherwise there can be a huge shortage of
coffee in the nearest five to ten years as the production is decreasing from year to year. 4. Companies
need a better cooperation with the central government, local authorities, and farmers. The sharing of
information, exchange and training should continue. 5. Exporter needs to find the new markets and aim
to sell their product by themselves, which can help to set the price by themselves and become
independent from current wholesaler. 6. Companies have to take initiative to promote their product in
international market, and start with branding or image of their own coffee in order to make it
recognizable overseas. Today, it is difficult for overseas customers to recognise the coffee from Timor. In
order to come to the next level the coffee export in Timor-Leste needs to be enhanced. The challenges
with human resources, transport and infrastructure need to be solved in collaboration of the companies
with government, local authorities, NGOs and of course farmers. Considering the reality of Timor-Leste,
the companies have been working hard to keep the export stable and improving the quality of life of
farmers. Future expansion of coffee plantations, continuous production of coffee (not only in harvest
season) and addressing the challenges with Certificate Pita Sanitation (CPS) should provide the
companies with better quality and quantity of organic coffee and help with pricing politics.

Implications for government There are seven important contributions that the government should
implement in order to enhance this sector of economy. 1. Providing the financial support or loan or
subsidy to coffee farmer and companies. This is benefiting both coffee farmers and companies to
increase their coffee production. From farmers side to help them in economic way, and achieve
sustainability in their production from company to help them in overcome lack of coffee supply, because
for Timor-Leste coffee is the largest export in non-oil GDP. 2. Capacity building in national and rural
areas, especially in coffee sector. It is very important to help the coffee farmers in rural area, because
the most productive area for coffee is situated here. Also the professional training is needed to ensure
the production of the coffee and increase the knowledge of farmers on how to cultivate the coffee
trees. 3. Enlarge the seaport, to decrease the delivery time and increase the confidence in buyers. 4.
Repair the roads in order to easy the access to coffee production in rural areas, to establish a
transportation system and help the farmers to access the market or companies who buy their product,
also easy the companies’ access to the coffee farmer. 5. Central government should have good
cooperation with the local government, NGO, farmers, and companies; the reason is to share
information from basic to the central and to avoid miscommunications between them. 6. Introduce the
law of land and property. As we mentioned Timor-Leste needs some regulations about the land and
property in order to help the government and companies to expand the coffee plantations in some
abandoned areas and convince the farmer to sell their land to plant coffee. 7. Government should take
initiative to help to promote coffee from Timor-Leste through other channels than companies can
promote. By today this seems to be ineffective. We recommend the government to increase the
investments in this sector in order to be able to establish sustainable incomes from non-oil sector and
guarantee productivity for the next generations. 55 6.2.3 Farmers Implications Farmers are the main
suppliers of coffee for the exporting companies. There is a strong demand to increase their awareness of
the role they play in the economic development of the country. These are few aspects where farmers
can make contribution in Timor-Leste. Firstly, a good cooperation with local leaders and companies as
well as government is needed. Lack of skills and knowledge should be eliminated by participating in
workshops, and training how to harvest and collect their coffee in a best way and keep the trees
healthy. Secondly, coffee farmers need to realise the potential of the contracts and leasing of their land
to government and other companies or expand their coffee plantations for making more money. As it
came from the interviews some of the farmers do not allow the government or the companies to plant
trees in their abandoned areas. Farmers do not possess the knowledge that it is done in order to help
them and that the land is not taken from them. Thirdly, we recognize that farmers lack the strategic long
term thinking, when refusing to cut the old trees and only think for one following year. It take 5 years for
a coffee tree to start producing the coffee and thus farmers resist cutting the old trees as they still give
some coffee. Unfortunately the idea of sustainability is spreading very slowly and it will take some time
for farmers to start implementing the propositions that companies and government are teaching them
to implement. We recommend to farmers to organize in small cooperatives that will possess more
knowledge together and can protect their members and facilitate communication between farmers and
potential buyers. 6.2.4 Implications for future research This research have focused only on small export
companies in Timor-Leste, however we believe that the knowledge gained is of value to other coffee
exporters in developing countries. As we found from interview, the quality of the coffee from Timor is
high, however further research is needed to address this finding. Further studies should try to include
the wholesalers and their perceptions of the export companies from Timor-Leste to reveal new angles in
the coffee trading. 56 Secondly, while this study was aiming to reveal the marketing strategies of the
exporting companies, it was not addressing the farmers. However, findings from interviews revealed
that there is a growing problem of coffee production in terms of quality and quantity, as well as
inherited traditions, customs and illiteracy which make it difficult for companies to obtain the quantity
needed. Thus, we propose to address the farmers in further studies in order to get insights in their
understanding of the current processes and, perhaps, come to better solutions within this context.