Sourav KediaSourav KediaDevshuvro Ghosh

Kinshuki SrivastavaSwagata Paral

Sayantoni DuttaAnshuman Roy

Group- III

Early History of Tea

• How old is tea consumption?– Legend: 2732 B.C.E.– Chewed by monkeys and

humans• Religious importance

– Originally cultivated in monasteries as a medicinal herb

• Introduction into secular society– Diffusion through Asia– Tea bricks as currency

• Introduction to Japan at end of 6th century

Yak butter tea

Major Tea Growing Regions IN INDIA

MAJOR TEA PRODUCING MAJOR TEA PRODUCING COUNTRIESCOUNTRIES

Global Global competitioncompetition

• The major competitive countries in tea in the world are Sri Lanka, Kenya, China and Indonesia.

• Another important point is that, U.K has substantial interest in tea cultivation in Kenya. Most of the sterling companies, due to implementation of FERA Act started tea cultivation in Kenya. So, it makes business sense for U.K. to buy tea from Kenya and Kenya became the largest supplier of tea to U.K.

http://www.ethicalteapartnership.org/pages.asp?page_id=30&parent_id=18

Tea Packing Company

Transnational Corporations

• Unilever

• Tata Tea

http://www.tata.com/images/article/tata_tea_packs.jpg

http://www.liptont.com/our_products/tea_explorer/index.aspx

Sustainabili-TEA:More than a

predictable pun I found on Bigelow’s

website?

4 P’s OF TEA MARKETING4 P’s OF TEA MARKETING

Product:• The cost of production of Tea in India

continues to be the highest among all tea producing countries.

• Tea production in 2009 touched 981 million kgs, 2010 will see a sharp decline to around 960 million kgs due to adverse weather conditions and virulent pest attacks.

Place:• High quality for a reasonable price can

be bought from Assam & Darjeeling and will then be blended and packed.

Prices• It would be noted that the gains in

prices from 2008 after a prolonged recession have been largely offset by significant increases in the cost of key inputs such as fertilizers, coal, fuel, gas and electricity.

Promotion: • The focus is the Indians like to purchase

bargains or buy products that offer free gifts.• Other brands do not offer as many promotion

and free gifts. This is why it is important to focus especially on the Promotion activities of the marketing mix.

• Need to set up original events in order to attract new customers and consumers of other tea brands.

• But for the international market the company should come up with new promotion ideas as suitable for the foreign market.

 

ADVANTAGES OF TEA ADVANTAGES OF TEA EXPORTEXPORT

• The location advantages of a particular market The location advantages of a particular market are a combination of market potential and are a combination of market potential and investment risk.investment risk.

• Internationalization advantages are the benefits Internationalization advantages are the benefits of retaining a core competence within the of retaining a core competence within the company and threading it though the value company and threading it though the value chain rather than obtain to license, outsource, chain rather than obtain to license, outsource, or sell it.or sell it.

• Exporting allows managers to exercise Exporting allows managers to exercise operation control but does not provide them the operation control but does not provide them the option to exercise as much marketing controloption to exercise as much marketing control

BARRIERS TO EXPORT BARRIERS TO EXPORT

TRADE (TEA)TRADE (TEA)

• For Small-and-Medium Enterprises (SME) with less For Small-and-Medium Enterprises (SME) with less than 250 employees, selling goods and services than 250 employees, selling goods and services to foreign markets seems to be more difficult than to foreign markets seems to be more difficult than serving the domestic market. serving the domestic market.

• The lack of knowledge for trade regulations, The lack of knowledge for trade regulations, cultural differences, different languages and cultural differences, different languages and foreign-exchange situations as well as the strain foreign-exchange situations as well as the strain of resources and staff interact like a block for of resources and staff interact like a block for exporting.exporting.

EXPORT PROCEDURE

Entry Outward• Loading in conveyance can start after ‘Entry Outward’ is given by

customs officer.Export manifest/Export report• Person in charge of conveyance is required to submit ‘Export

Manifest’ or ‘Export Report’. Registration with DGFT and EPC• Exporter has to be obtain IEC number from DGFT is advance.  He

should be registered with Export Promotion Council if he intends to claim export benefits.

Third party exports• Export can be by manufacturer himself or third party (i.e. by

exporter on behalf of another).  Merchant exporter means a person engaged in trading activity and exporting or intending to export goods.

Registration of documents under Export Promotion Scheme• Advance authorisation, DEPB etc. should be registered if exports are

under Export Promotion Scheme.

Shipping Mill• Export is required to submit Shipping Bill with required documents

for obtaining permission to export. There are five forms : (a) Shipping Bill for export of goods under claim for duty drawback - these should be in Green colour (b) Shipping Bill for export of dutiable goods - this should be yellow colour (c) Shipping bill for export of duty free goods - it should be white colour (d) shipping bill for export of duty free goods ex-bond - i.e. from bonded store room - it should be pink colour (e) Shipping Bill for export under DEPB scheme - Blue colour.

FEMA formalities• GR/SDF/Softex form (under FEMA) is required to be submitted.Noting, assessment, examination • The shipping bill is noted, goods are assessed and examined.

Export duty is paid, if applicable.Certification of documents for export incentives• If export is under export incentives, relevant documents are

checked and certified. Then proof of export is obtained on ARE-1.Let export order• Conveyance can leave only after ‘Let Export’ order is issued.

ChallengesChallenges

Exporting to foreign countries poses challenges not found in domestic sales. With domestic sales, manufacturers typically sell to wholesalers or direct to retailer or even direct to consumers.When exporting, manufacturers may have to sell to importers who then in turn sell to wholesalers.

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