Abstract
The objective of this paper is to analyze present trend of Sri Lankan tea industry and to identify problems in international marketing of tea. Qualitative methodology was adopted in this study. Checklist was prepared and researchers interviewed twenty six experts from tea exporting and marketing companies in Sri Lanka. Any strategy that will enhance the competitiveness in terms of sustaining competitive advantage globally is held up by high cost of production. Therefore, it is recommended that Sri Lanka needs to follow one of the best international entry modes to market tea internationally by having international organizations in tea marketing and exporting companies. This will help the industry improve the profitability and thus, protect people working in the plantation and Sri Lanka will get economic benefits. It is favorable for Sri Lanka having properly designed product, promotion, pricing and distribution strategies in accordance with the needs of international tea market are imperative for Sri Lankan tea industry to face the marketing challenges prevailing in the international tea market, which will assist Sri Lankan tea industry in competing intensively with other tea exporting or re exporting countries. Sri Lankan government may also extend massive support to the industry to convert export companies into international marketing oriented firms. Journal of Management 2013 9(1): 25-38
Highlights
Introduction and Significant of the StudyThe business environment is said to be more competitive with dynamic changes of customers in their preferences
Despite the fact that Sri Lankan tea industry has different quality of tea with different tasty and aroma in accordance with agro climatic conditions prevail in the country, Sri Lankan companies are unable to market it with proper strategies through which competitive advantage could be achieved
Sri Lankan tea has been trapped in price competition as a consequence of high cost of production
Summary
The business environment is said to be more competitive with dynamic changes of customers in their preferences. At this juncture, export performances of countries are seriously considered in order to fulfill the different needs of customers in all businesses in all countries (Eusebio et al, 2007). International tea market, which comprises Sri Lanka, Kenya, China, India, Malawi, and Vietnam as major producers and exporters, are more dynamic and competitive in the vigorous international business environment. In 1999, Sri Lankan tea had 21 percent international market share which was only 18.18 percent in 2008 but Kenya was having 23.34 percent export share internationally in the same year
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