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TEA : 

TEA Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. Tea is the most widely consumed beverage in the world. It has a cooling, slightly bitter, astringent flavor which many enjoy

Types of tea : 

Types of tea Black Tea: Black tea is the most oxidized among the various kinds of tea. It is also stronger and has relatively more caffeine content than the other varieties. In the process of oxidization, the water in the tea leaves evaporates, and the leaves absorb more oxygen.

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Green Tea: Green tea is the least oxidized variety of the tea. It is also associated with several health benefits. One of the most prominent health benefits of the green tea consumption, on regular basis, is that it reduces the chances of heart attacks and certain types of cancer to a great extent

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Oolong Tea: One of the most popular tea in China, Oolong tea is more oxidized than the green tea, but lesser than that of the black tea. It is also one of the most expensive kinds of tea. It is an ideal choice for people who are wary of the strong flavor

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White Tea: white tea undergoes minimal oxidization; however the tea leaves chosen to prepare this variety are picked from young buds. The white tea has a natural sweetness associated with it.

Major Tea Growing Regions IN INDIA : 

Major Tea Growing Regions IN INDIA Tea plantations in India are mainly located in rural hills and backward areas of North-eastern and Southern States. Major tea growing areas of the country are concentrated in Assam, West Bengal, Tamil Nadu and Kerala.



Tata Tea plans export thrust under `Tetley' brand. : 

Tata Tea plans export thrust under `Tetley' brand. ``Tetley would be used as a driver to increase exports of packet teas'‘ Mr. R.K. Krishna Kumar, Vice-Chairman of Tata Tea, told newspersons on the conclusion of the company's 37th AGM here today. The spurt in Tata Tea's other income in 1999-2000 (Rs. 58 crores as against Rs. 27 crores in 1998-99) was due to the offloading of a big chunk of ACC shares and sale of Timex shares.

Global competition : 

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


4 p’s OF 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.

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Place: High quality for a reasonable price can be bought from Assam & Darjeeling and will then beblended and packed. Export 2010 is expected to see higher exports. During January to October 2010 exports are up by around 6 mkg vis-à-vis 2009. The ITA with the support of Tea Board is making strenuous efforts to increase exports.

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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.

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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.


SWOT ANALYSIS STRENGTH: Demand for tea has been growing at some 2% per annum and should accelerate further  Technical & Manpower Skill: Due to a huge population base in India Technical &Manpower Skill is available in abundant. WEAKNESS: Labour intensive industry: The second generation labours are reluctant to join this industry hence it could pose a problem of skilled labour in the near future.

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No effective Cost Management system adopted by companies and other regulatory bodies. OPPORTUNITIES: Export Potential if India can increase its production capacity. Large untapped rural market for branded tea companies like Hull and Tata Tea THREATS: Global competition Low Cost in some countries like China, Sri Lanka and Kenya.


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


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.

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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 [para 9.40 of FTP] Registration of documents under Export Promotion Scheme Advance authorisation, DEPB etc. should be registered if exports are under Export Promotion Scheme. EXPORT PROCEDURES

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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.

Challenges : 

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.