2. 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
5. Global competition
• 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.
13. 4 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.
14. 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.
15. 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.
16. ADVANTAGES OF TEA EXPORT
• The location advantages of a particular market are
a combination of market potential and investment
risk.
• Internationalization advantages are the benefits of
retaining a core competence within the company
and threading it though the value chain rather than
obtain to license, outsource, or sell it.
• Exporting allows managers to exercise operation
control but does not provide them the option to
exercise as much marketing control
17. BARRIERS TO EXPORT
TRADE (TEA)
• For Small-and-Medium Enterprises (SME) with less than 250
employees, selling goods and services to foreign markets
seems to be more difficult than serving the domestic
market.
• The lack of knowledge for trade regulations, cultural
differences, different languages and foreign-exchange
situations as well as the strain of resources and staff
interact like a block for exporting.
18. 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.
19. 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.
20. Challenges
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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