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Ceylon Tea expand in Japan

Executive summery
This assignment has demonstrated and discussed deeply flowing specific criteria.
1. Introduction
Principally beginning this part will be discussed what is the product going to be expand
in globally , describe the origin and else reference to relevant product and also exactly
where is it going expand as well as describe the related city briefly.

2. Key Issues 01
This section will be discussed to the point description regard to feasibility study of of the
specific city which is going to be selling. Trade environments, SWOT analysis and all.

3. Potential Market
This section is for exactly what are the strong point of potential for enter into the market.
under that 03 of possibilities has been discussed.

4. Key Issue 02
This piece is regard to market forecasting designed for 2017 of specific product. SWOT
for 2017 how does it segment and position using international market strategies.

5. Conclusion
This section will be discussed eventually what would be it majority.

1. Introduction
In this Assignment, the author has demonstrated that green and lushly fertile, small island
Republic of Sri Lankan tea sell in well known Eastern Asian number one country in
Japan. The forecasted city which is going to establish this product in kithakyushu city, as
a Ceylon tea. Almost around 03 shops including online order process. The channel
strategy of this project is going to follow direct distributing under Ceylon tea board.


With reference to Ceylon Tea

This country is known as Ceylon until 1972, the
island of Sri Lanka lies a mere 19 miles from the
southern coast of India. Blessed with ideal trade
winds and geographic diversity, the wet, tropical
climate is offset by mountains in the south rising to
altitudes of over 8,000 feet.

Today, Sri Lanka is the world's fourth largest tea producer and its famous leaves (still
called "Ceylon") are cherished for their taste and consistent quality. Sri Lanka is a
unique country of origin for tea cultivation, because the tropical climate allows for
continual, year-round harvesting. The island features striking microclimates ideal for
tea production. Tea in Sri Lanka is classified by elevation: low, medium or high
grown. Each is distinct, creating remarkable variety for a country which produces
almost exclusively black tea and green tea. Sri Lankan Tea industry maintains the
highest quality in the world market and ISO 3720 is the minimum standard applies for the
products. Sri Lanka has the capability to produce the cleanest tea in the world in terms of
minimum pesticide residues.

Kithakyushu city
The Japan has created by collection of 03 Islands such as
Hokkaido, Honshu and Kyushu. Kithakyushu or else
Kyushu is one of city nominated in Fukuoka prefecture in
Japan. Previous population is approximately 963,237. Area
is 489.60Km 2. It is now Japans 15 th most populated city.
This assignment is to forecasting for sell the key product in
this city.


2. Key Issue 01

Feasibility Study: Economic in Japan


Japan has an industrialized global free market economy. A free market economy is a
competitive economic system in which businesses compete with each other for profit and the
prices of goods and services are based on supply and demand. Japan's economic system is
very similar to that of the United States. Also it is the third-largest in the world by nominal
GDP and the fourth-largest by purchasing power parity. Also it is the world's second
largest developed economy in the world. According to the International Monetary Fund.
Japan is a member of the G7. Due to an impulsive currency exchange rate, Japan's GDP as
measured in dollars fluctuates widely. Japan is estimated to have a GDP per capita of around
$38,490.Japan is the world's third largest automobile manufacturing country and largest
electronics goods industry in the world. It is often ranked among the world's most unique
innovative country leading several measures of global patent filings to face the increasing










2.1.1. Marketing research in Japan
Japan has a highly developed tea culture, which makes it a desirable location for tea export. 4
Yearly tea consumption 118000 tons 5 Yearly tea consumption per person 2.5 liters The
Japanese agricultural sector accounts for about 1.4% of the total country's GDP. Only 12% of
Japan's land is suitable for cultivation. Japan has a developed tea ceremony as well. Japanese
people are very interested in the leaf tea, because of its high vitamin and mineral content.
People in this country highly concern about their healthy for a long life. After the war of 40
th century they extremely bother relating to nations safety. That is why they are very scare of
import food. Tea is absolutely healthy and safety 100 present natural drink. Who the hardest
workers are for go up as a nation in this world they only Japanese. So they used to drink Tea
very often especially green tea for refresh without have a break for continuously work.(
More over Japanese are working minimum 12 hours per day their self without forcing. Green tea
is their favorite drink since very before. Unlike black tea which is fully fermented, green tea is
unfermented and has a characteristic taste which is appreciated by the Japanese people. Some
years ago two estates embarked on green tea manufacture but the products were not up to the

specifications required by the Japanese markets and manufacture of Japanese green tea appears
to have been abandoned because the prices offered for green tea were much lower than for black
tea. These setbacks it appears worthwhile to pursue the Japanese green tea market in the future
by manufacturing green tea which would appeal to the Japanese consumers. In the manufacture
of green tea two methods are employed to stop or arrest fermentation. In the Japanese method the








Trade Policies in Japan

Japan's Ministry of Economy, Trade and Industry (METI) is organized into many bureaus and
agencies to formulate and execute a wide range of economic, industry and trade policies, which
are aimed at promoting Japans international trade and investment, while fostering a conducive
business environment for sustaining Japan's economic growth.
METIs Trade Policy Bureau consists of divisions grouped by both geographical area as well as
function, and is the bureau with primary responsibility of administering Japans participation in
multilateral institutions as well as bilateral trade relations with all of Japans trading partners.

Import Licensing

Most goods do not require an import license and can be imported freely. Japanese import licenses
are required for certain goods, including hazardous materials, animals, plants, perishables, and in
some cases articles of high value.
Import Ban and Restrictions
Some imported goods may have a negative effect on Japan industry, economy, and hygiene, or
on public safety and morals. Such goods fall under "import restrictions" as provided by various
domestic laws and regulations. Import permit or prior approval for these goods is required for
inspection or other requisites.

Customs Tariff and Taxes

Japans tariff is on average one of the lowest in the world, approximately 2%. Japan grants mostfavored-nation preferential treatment to a country or province that meets one or more of the
following criteria. It is a Member of the WTO;

It is covered by a condition of the Cabinet Order under Article 5 of the Customs Tariff Law;

Labeling and Marking Requirements

The Japanese Measurement Law requires that all imported products and shipping documents
show metric weights and measures. Japanese law requires labels for textiles, electrical appliances
and apparatus, plastic products and miscellaneous household and consumer goods. For most
other products country of origin labeling is not required, except some beverages and foods which
do require labeling and marking of true information. False or misleading labels displaying names
of countries or flags other than the country of origin, and / or names of manufacturers or
designers outside the country of origin are not permissible.
Trade Agreements Japan has concluded free trade agreements (FTAs) and economic partnership
agreements (EPAs) with Sri Lanka under the previous government transform in Sri Lanka at the


SWOT Analyze

Worldwide brand reputation about
Ceylon tea
Sri Lanka is the biggest tea exporter in
the world.
Sri lanka is biggest 2nd biggest tea
producer in the world.
Standardized as health and cleanest tea in
the world.
Ceylon Tea has been official Tea
supplier ; for many world class event.
Loyal won customers around the world
Growing demand for good quality tea
Raising demand for high neutrinos eco
Sri Lanka and Japan Celebrate 60 Years
of Diplomatic Relations on last August

High cost of labour, packaging,
Transport, Freight, Electricity
High rent for location

Economic Recession
Purchasing power decline

Market size and price

According to the selected city which is Kithakyushu the Previous population is

approximately 963,237. Area is 489.60Km 2. Assume they use 3 to 6 cup of tea drink per day.
it means perhaps 300 mailgram per day. Green tea volume is bigger rather than all other
kind of tea. Suppose one persons tea consumption per year in Japan to be 1kg. Hence
author expects to export as follows.
White Tea
Black Tea
Green tea

Quantity - Kg

USD per Kg

( )

3. Potential Market

3.1 Possibilities for entry into market

1. Japanese have a highly developed tea culture,
Green tea has been closely associated with Japanese people for such a long time that it is now
known as "Japanese tea." Green tea is more than just a drink. It is a custom that is woven into the
fabric of Japanese life. The history of tea in Japan has its earliest known references in a text
written by a Buddhist monk in the 9th century. Tea became a drink of the religious classes
in Japan when Japanese priests and envoys sent to China to learn about its culture brought tea to
Japan. The first form of tea brought from China was probably brick tea (Ancient recordings
indicate the first batch of tea seeds were brought by a priest named Saicho in 805 and then by
another named Kukai in 806. It became a drink of the royal classes when Emperor Saga,
the Japanese emperor, encouraged the growth of tea plants. Seeds were imported from China,
and cultivation in Japan. But now their cultivation of tea is so much insufficient for their
privation for tea. So they had to open the market for overseas investors.
2. Japanese life with Green Tea
Containing five times as much Vitamin C as a lemon, green tea is said to boost the blood vessels
and circulatory system and stave off germs. It is this Vitamin C that is the main reason that green
tea has long been thought of in Japan as an effective means of fighting off colds.
Catechin is what gives green tea its bitterness and astringency, and it can be extracted
most effectively when brewing the tealeaves with boiling water heated to 90C for a short time.
A powerful anti-oxidant, catching is said to keep cells from aging and help prevent high blood
pressure and diabetes. Catechin has been introduced as an ingredient in many food products and
supplements and has also been a hit in many products marketed for antibacterial or odor-resistant
properties such as towels, underwear and gum to prevent bad breath.
Green tea extract is now a popular fragrance in aromatherapy, as well. Used in products such as
eau de parfum or incenses, its fresh, clean, sweet scent is entirely different from any fragrance
previously known, providing an exquisitely Japanese aromatic sense.
With its special properties for keeping people healthy and keeping cells from aging, green tea has
become a dependable, therapeutic part of life in Japan. Green tea, indeed, is one key to the










On the other hand the Japanese tea ceremony is called Chanoyu, Sado or simply Ocha in
Japanese. It is a choreographic ritual of preparing and serving green tea, called Matcha, together
with traditional Japanese sweets to balance with the bitter taste of the tea.

Domestic Tea Market is less

The Japanese agricultural sector accounts for about 1.4% of the total country's GDP. Only 12%
of Japan's land is suitable for cultivation. But its yearly tea consumption is 118000 tons.
appropriately the tea consumption per person more than 2.5 liters per year . That it why it is an
attractive location for tea export. Japan tea crop production is absolutely not enough for their
entire consumption. Highest degree of income and location for industrializations only. Steep land
(more than 20) has been terraced for rice and other crops, carrying cultivation in tiny patches far
up mountainsides. With the aid of a temperate climate, adequate rainfall, soil fertility built up and
maintained over centuries, and such a large farm population that the average farm has an area of
only 1.2 ha (3 acres), Japan has been able to develop intensive cultivation. Agriculture exists in
every part of Japan, but is especially important on the northern island of Hokkaido, which
accounts for 10% of national production. But according to product Tea , the geographic and
weather is very important. for the tea plant can handle a light ice and even snow, but not heavy
freezes or expanded cold winters, and, unlike some plants, it does not require a period of cold
dormancy. It can in consequence grow from subtropical climates to tropical climates, but
generally requires a fair amount of moisture and rainfall during the growing season. Although it
can grow in hot tropical climates if they are sufficiently sticky, the highest-quality teas mostly
come from subtropical climates with some seasonality. In Japan during the summer warmth
comes to up 40 degree plus. In the winter it comes till 20 degree minus. Accordingly such a
climate situation tea grow is impossible. Japan is the second-largest agricultural product importer
in the world (after the US), with total agricultural product imports of $34.6 billion in 2001. At












Product Export overview in Japan
Tea import overview in Sri lanka
So those are strength of possibilities for enter to tea sell in this country.

Key Issues 02
Marketing penetration for 2017


SWOT Analysis


Japanese society (Zen) is self-sacrifice and they are continuously improve. The
Japanese always attempt for excellence and they try to show improvement in the
areas where they are lacking. Japan is the technology capital of the world. They have
all the new innovations before anyone else does. Therefore 100 present can make
sure their purchasing power never will be ended. Economy is very strong right now
in Japan. Basically the Japanese are how much they develop in economically or
whatever but they never change their culture or customs. Ii is a strong point for
anticipate the demand for tea. Because of Japanese tea culture is their unique culture

since history. Such a strong culture will be never revolutionized. That is why the
market for tea in Japan ever potential including 2017.
Non-verbal communication practices. Particularly English spoken of the Japanese is
really weak according to barriers of their mother tongue. On the other hand they are
most of polite people. At the customer service if happens anything by mistake these
customers may possibly get it as a wrong idea due culture misunderstanding
.Japanese customer might be suppose it as an irrespective or ignore them. Another
weak is Quick les of Japanese. This culture tends to be relaxed and based on
relationship building. Because they afraid of trust the outside people. It takes long
time to create a loyal customer. Other cultures are very quick with everything
including communication. That is many companies fear doing business with Japanese
companies because sometimes it creates more work than is necessary with other
countries and cultures.
World's Second Largest National Market . Some individuals return to Japan with
new insights to their own culture. According to their lifestyle Japaneses peoples life
is extremely busy in their day today life. The opportunity is high for the fast online
tea service as well. And also the world Olympic Games are due to be held in Japan in
2020 after 22 years later. Generally For every Olympic Games as a specific matter
Japan does create something unique. At the moment they are involving to construct
the relevant resources to hold this game. As this way it is increasing the demand for
tea because of their hard working.
Globalization - since Japan is an island they tend to be far away from everyone else.
This has created problems who is trying to go global. They provide Small amount of
foreign investment . Because Japanese feel they have great products within the

country and do not always support foreign investment opportunities. Therefore they
could be stop or else change their trade policies for investors at anytime. This
practice has deterred some companies from trying to enter the Japanese market or
from trying to create joint ventures with Japanese companies. Also Japanese very
scare of overseas food and beverage. An extra particular matter is natural disasters in
Japan. It can be occur anytime anywhere. According to their trade policies that if
Japan doesnt provide any reasonable insurance for foreign investment it can be a big

4.2 Market Segmentation

Continent Asia

15 Life style
years old




and Social class




04 members


486.8 km






27C At Education


145,000 Attitudes
750,000 Yen

100 Present
or specific

High and Medium


, Work,
Taste Benefit high
various food and s
Punctual, Usage
Polite, Shy
Patience, Quality, Buyer
Self readine oriented
ss stage
Seniority, Group

Population 10,000


City Area




Nationality Japanese http://www.worldsalaries.o

Consumer behavioral further more

Key characteristics of Japanese consumers have never been totally comfortable with the
product by eye-catching consumption the way other newly rich populations often are.
Japanese are willing to pay a premium price for those extra cost as they value more
product quality and view information such as brand, service, packaging and advertising
as important variable in assessing quality and making decisions
There seem to be a clear trend to value product handing over values such as ethic, charity
and green product. According to Japanese social demographics and psychographics
Japanese consumer behavior, it should not forget about three main characteristics of
Japanese consumers are brand loyal and also adjusting down. Means consumers are very
careful in buying and do spend more in checking prices (even abroad), comparing and
seeking advice. Value for money. They hope multiply sales channels: because of
As many other developed country, japans is an aging population, but it is aging much
faster than any other countries, due to one of the longest life expectancy and one of the
lowest birth rate.

Market Position

Under the market development this author expect to implement following position

Brand Position strategy


What would world do without tea

Ceylon Green Tea, Ceylon white Tea, Ceylon Black Tea those are branded which to be exported.

Ceylon black Tea

It is one of the most common teas in British tea culture. People used to take it in breakfast.
People who are in high job rank, they used to take tea with breakfast for fresh and energy for
whole day. Including catholic people. Those kinds of people are following a western tended food
styles for their day today life. Additionally at the for functions, tea party also it is provide as a
standard drink.

Ceylon white tea

Someone who is take care their body with clean whole foods, pure water, adequate amounts of
exercise, and sufficient amounts of sunshine, and lead a stress free lifestyle as much as possible.
Consumers like young girls, Boys, this product for them.
Today, a few tea plantations have started producing Srilankan white tea, This white tea is
considered extremely rare due to the fact that only slightly curved silver tea buds, just over an
inch long are picked to compose this tea.
Ceylon White Tea Process
Making such a unique tea requires care and dedication and while white tea requires minimal
processing, this does not mean it is any easier than making other types of tea. This tea is grown
in high altitudes ranging from 2200m to 2500m and it is harvested just once a year by hand. No
machines are used so that the silvery tea buds remain intact. Then it is rolled by hand to create
the slightly curved thin silver buds that are left to wither in the sun. The final step in the process
is to dry the tea buds preventing any oxidation from taking place and keeping this tea as natural
Ceylon green tea


It is a smooth and fragrant green tea from Sri Lanka With beautiful dark green tea leaves,
the leaves may be rolled or twisted depending on the tea estate manufacturer. This tea is
considered to have full body with a malty and nutty taste with a sharp aroma that seems
to be more in common to the Assam tea variety. Made exclusively of tea buds, this white
tea contains caffeine to help you feel alert and energized. At the same time, this tea also
contains the nine, an amino acid that relaxes the mind. With this tea will alert without
stress and anxiety, so it is said to lower the rate of depression, reducing the possibility of

This brand for hard workers and stressful job workers in Japan for reduce their stress also to be
energized or refreshed. And also for ladies, girls who have keen about their skin brightness and
weight loss. The price of green tea is cheap rather than black tea and white tea. There for expect
it may have more customers for the green tea compare with other two Tea brand.
Other Tea Brands

Ceylon (Ceylon Orange Pekoe)

Ceylon Tea OPA

Greenfield Estate Ceylon Black Tea

TC85: Kenilworth Estate OP4 Ratings

Black Pearl Tea

Greenfield Estate Ceylon Black Tea

Ceylon Tea OPA

Ceylon (Ceylon Orange Pekoe)

TC85: Kenilworth Estate OP


Cheericup Ceylon

Benefit position

Which may be responsible for a number of benefits of tea consumers may find when drinking
this each type of Tea.
Benefits of Black Tea
Prevent Cardiovascular Diseases

The amount of antioxidants present in Ceylon black tea is very beneficial to improving
heart health. Not only is this said to strengthen the heart, but also is may help to lower
bad cholesterol and blood pressure.

Weight Loss Tea

Drinking black tea on a regular basis is said to help boost peoples metabolism and
improve their absorption. A nice warm cup of Ceylon black tea after each meal may help
sort digestive troubles.

Weight gain is sometimes caused by the inability of peoples body to process foods
properly. This tea helps to boost metabolic rate, helping their stomach to break foods
faster and moving fatty elements out of their body quicker.

With the help of a healthy diet and plenty of physical exercise this may be the start to loss
of weight. With the added energy given by this tea, consumer will feel more motivated to
exercise, too.

This cleansing tea helps to lower blood sugar levels and at the same time it helps to clear
away toxins from the kidneys helping them to work properly.


Coffee Substitute

As a black tea, this Ceylon tea contains caffeine. Caffeine in tea helps to keep the mind
alert and focused throughout the day. This caffeine is released into the bloodstream
slowly, not causing the jittery feelings that coffee does.

Tea leaves also release another amino acid into the water that makes tea the perfect
substitute for coffee. This amino acid is called L-Theanine, which has a calming effect on
the nerves.

Infection Fighter

This tea is rich in vitamins and minerals making it quite a nourishing tea. At the same
time, this black tea also contains antioxidants that may help to improve consumer
immune system.

Such a rich tea may aid

body in keeping up its defenses against infection and

inflammation reducing the risk of illness. Viruses and bacteria have less of a chance of
doing you harm.
Fighting Cancer

The presence of a high amount of antioxidants is everyday cup of Ceylon black tea may
help to prevent the damage that is caused by free radicals to cells.

Free radicals harm to system through environmental pollution or daily stress consumer
are subjected to. These not only may cause aging of your skin cells, but may lower
defenses and bring about the growth of tumor cells.

Although a lot of further study is needed on this regard, there seems to good indication
that regular consumption of tea may help to prevent the onset of stomach, prostate and
breast cancer.

Benefits of white Tea


White teas such as this one are also said to have anti-inflammatory properties, reducing
the risk and pain of arthritis.

A healthy metabolism will help reduce sugar levels that may lead to diabetes, so drink
this tea unsweetened, not that its sweet flavor needs any additional sweeteners.

Improve oral health by getting rid of the microbes that cause tooth decay, gum disease
and bad breath.

Benefits of Ceylon green tea

Full of the health benefits that are typically found in green teas, this is a great weight loss
tea and so much more that you will want to make it a part of your tea collection.
Enhanced Brain Function

Drinking this type of tea on a daily basis is good for the brain. The presence of
antioxidants, namely catechins and also caffeine in green tea, increase brain activity
and enhance the memory.

Along with keeping awake and feeling sharp, this tea is likely to reduce the
probability of dementia and depression by keeping your brain functioning properly.
Healthy Teeth

Drinking unsweetened green tea can eliminate bacteria that cause tooth decay and bad

Rinsing with tea after meals is a good option, as it can feel an instant freshness and it
will help consumer prevent bacteria that can both harm to mouth and cause stomach

Perfect Skin


A cup of of this Ceylon tea regularly will provide with defenses to fight infection and
inflammation that harm you both internally and externally.

By keeping hydrated and reducing potential damage from environmental agents like

This is why green tea antioxidants can help to delay wrinkles and allow consumer skin to
look fresher and brighter for a long time

Quality Position

To qualify for the special, legal distinction denoted by the words Ceylon Tea, and for the
famous Lion logo that goes with it, the tea must not only be grown and manufactured entirely in
Sri Lanka; it must also conform to strict quality standards laid down and administered by the Sri
Lanka Tea Board. It cannot, moreover, be mixed or blended with tea from any other part of the
world. Even a blend that is 95% Sri Lankan cannot be described as Ceylon Tea.
Tea bearing the Lion Logo must also be packed in Sri Lanka. Overseas importers and distributors
cannot use the logo on their packaging, though if the contents are 100% Sri Lankan, the name
Ceylon Tea may still legally be used. These strictures are needed to help consumers distinguish
real Ceylon Tea from the thousands of products, including many with international brand names
that are available around the world, which contain tea of mixed, non-specific origin. The Ceylon
Tea Lion Logo, which is owned by Sri lanka, has been registered in more than 75 countries
around the world. The use of Lion Logo on tea brands packed in Sri Lanka is subject to
following conditions
1. The logo can be used only on consumer packs, which contain 100% Pure Ceylon Tea.
2. The brands should be packed in Sri Lanka
3. The brands, which use the Lion Logo, should conform to the quality standards set out by
Sri Lanka Tea Board.

Attribute Positioning

Most healthy

Quality is great



Worldwide famous

Environment Friendly

Customer loyalty benefits Position

Ceylon Tea in Japan does offer tea with tea accessories and share how to make delicious tea. And
also it provides as a bonus a 5 days tour for visit Tea estates in middle country of Sri Lanka for
whoa are the selected regular loyal customers. This program will be organized by Ceylon tea
head office in Sri Lanka.



As a conclusion author strongly mentioned Ceylon Tea sells in Japan is 80 present success and
10 present is risk and then rest of 10 present could be loss. And also this product will be a best
Tea seller at Fukuoka region in 2020 by planed good effort. It will be having a quite hard time at
the start for win the loyal customers in 2016. The tea market is for green Tea will be over 65
Present from out of entire expected income. Rest of white Tea and black Tea will be above 30 %
from total income. First 03 months means until on December that most effort should be for gain
the customers by promoting this product. The review of the global scenario of tea in terms of
area, production, yield, exports indicated overall increase in the quantity of tea in Japan over last
two decades and the trend is increasing. So strategies must be adopted to meet up the challenges
in Japan demand for tea in the coming years. Value addition and diversification for a wide range
of tea products need to be developed for balancing the supply.