Value Added Tea Case Study

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2.5.2 The importance of value added tea products
Herath and Silva (2011) examined about the importance of exports of value added tea products than bulk tea to face challenge in competitive beverage market. Firms failing to address the competitive forces by developing their marketing strategies will lose out to competitors. Thus, marketing strategies adopted by the company leaders, directing their firms towards gaining competitive advantage in the value added tea industry are discussed in this paper. The study revealed that brand building, niche marketing, product differentiation, cost leadership, and customer focus were the most prominent strategies adopted by the firms. Opening up new markets abroad, fair trade, environmental sustainability, and …show more content…

One of the factors that pushed up the exports earning of tea during 2014 is the exports of “orthodox” value added teas that is unique characters. It derived from fourteen decades of expertise manufacture in Sri Lanka tea industry. Even though neither the total volume nor the proportion exported in value added form are the highest so far, the exports earning in dollar terms is the highest ever recorded. Although there was a drop in exports of green tea, exports volumes of tea and instant teas were recorded in all time. Russia/CIS countries were the main destination of tea bags. The highest average unit FOB value of US$ 4.9/kg reached in 2014 may have been partly due to the below production recorded in seven months compared to last year pushing the marketable surplus down. There was a scarcity in the Orthodox tea market and this too may have contributed indirectly to the high export price (Sri Lanka Tea Board,

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