Determinants of Ceylon Black Tea Market Penetration in Chinese Tea Market
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Date
2015
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Uva Wellassa University of Sri Lanka
Abstract
A growing economy and a booming middle class makes China a potentially lucrative market for exporters and further changing younger generation preference towards Black teas creates a new export wave for the Black teas to China. In view of this, a study was conducted to explore the factors effect on Ceylon Black Orthodox tea market penetration in Chinese tea market. The data employed to analyze the factors influencing market penetration of Ceylon Black Orthodox tea in China tea market were obtained through a questionnaire. 52 Ceylon Black tea exporting companies to China were selected as the sample using simple random sampling technique. Data were analyzed using Minitab 16 statistical software and the descriptive and multiple linear regression analysis techniques were directed for this study. The major findings of the study indicated that, the model is used for the study is significant at 95% significance level, and further value addition, quality, brand, consumer focus, competition, promotional activities and trade barriers were identified as significant factors that affect on market penetration of Ceylon Black tea into Chinese tea market. In addition, value addition, quality, consumer focus, competition, promotional activity and standard barriers are having positive relationship with market penetration and failure rate, brand, price and trade barriers are having negative relationship with the market penetration. The results will assist Ceylon tea exporters in understanding the Chinese tea market improving the market penetration of Ceylon Black tea.
Keywords: Chinese tea market, Market penetration, Ceylon Black Orthodox tea
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Tea Technology and Value Addition Degree Programme ( TEA)