Marketing Mix for Sri Lankan Tea
Table of Contents
1. Introduction 02
2. Applying the Marketing Mix …….04 2.1 Product………..…………………………………………………………………...…………..05 2.2 Place ……….………………………………………………………………………………….06 2.3 Price …………………………………………………………………………………………..08 2.4 Promotion …………………………………………………………………………………….09
3. Conclusion 12
4. References ……………………………………………………………………….13
1. Introduction
Since the discovery of Tea in 2737 B.C in China, and after the Europeans learnt about tea in 1589, drinking tea has spread throughout the world and today it is a widely consumed beverage.
Tea production in Sri Lanka is of high importance to the Sri Lankan economy and the world market. Sri Lanka is the world's fourth largest producer of tea and the industry is one of the country's main sources of foreign exchange and a significant source of income for labourers, with tea accounting for 15% of the GDP, generating roughly $700 million annually. Ceylon tea is divided into three groups: High or Upcountry (Udarata), Mid country (Medarata), and Low country (Pahatha rata) tea, based on the geography of the land on which it is grown. Tea produced in Sri Lanka carries the "Lion Logo” on its packages, which indicates that that the tea was produced in Sri Lanka.The most important foreign markets for Sri Lankan tea are the former Soviet bloc countries of the CIS, the United Arab Emirates, Turkey, Iraq, Iran, UK, Japan, Saudi Arabia, Syria and Libya.
Ceylon tea was renowned for its quality, but supplies exceeding demand, higher cost of production and intermediary’s margins have forced the tea industry to compete on price rather than on quality. Consumers preferring flavoured and instant teas are also not helping the local tea industry that produces old style orthodox teas. If you take the trend world over convenience and fast food are popular. People now do not have the time to brew tea and make tea in the traditional way. At present, instant tea is one of the fastest growing segments in
1. Introduction 02
2. Applying the Marketing Mix …….04 2.1 Product………..…………………………………………………………………...…………..05 2.2 Place ……….………………………………………………………………………………….06 2.3 Price …………………………………………………………………………………………..08 2.4 Promotion …………………………………………………………………………………….09
3. Conclusion 12
4. References ……………………………………………………………………….13
1. Introduction
Since the discovery of Tea in 2737 B.C in China, and after the Europeans learnt about tea in 1589, drinking tea has spread throughout the world and today it is a widely consumed beverage.
Tea production in Sri Lanka is of high importance to the Sri Lankan economy and the world market. Sri Lanka is the world's fourth largest producer of tea and the industry is one of the country's main sources of foreign exchange and a significant source of income for labourers, with tea accounting for 15% of the GDP, generating roughly $700 million annually. Ceylon tea is divided into three groups: High or Upcountry (Udarata), Mid country (Medarata), and Low country (Pahatha rata) tea, based on the geography of the land on which it is grown. Tea produced in Sri Lanka carries the "Lion Logo” on its packages, which indicates that that the tea was produced in Sri Lanka.The most important foreign markets for Sri Lankan tea are the former Soviet bloc countries of the CIS, the United Arab Emirates, Turkey, Iraq, Iran, UK, Japan, Saudi Arabia, Syria and Libya.
Ceylon tea was renowned for its quality, but supplies exceeding demand, higher cost of production and intermediary’s margins have forced the tea industry to compete on price rather than on quality. Consumers preferring flavoured and instant teas are also not helping the local tea industry that produces old style orthodox teas. If you take the trend world over convenience and fast food are popular. People now do not have the time to brew tea and make tea in the traditional way. At present, instant tea is one of the fastest growing segments in
References: • Semenik, R., and Bamossy, G. 1995. Principles of Marketing, a Global Perspective. South Western, Cincinnati, USA. • Vignali, C. 2001. McDonald’s: “think global, act local” – the marketing mix. British Food Journal, Bradford, vol. 103, issue 2, p. 97. • Mazur, L. 2004. Globalisation is still tethered to local variations. Marketing, London, 22 January 2004, p. 18. [pic][pic][pic][pic][pic][pic] ----------------------- • Product (or Service) • Place • Price • Promotion [pic]