Abstract:
Tea production in Sri Lanka is of high importance to the country's economy and to the world market. The country is world's 4th largest producer of tea and the industry is one of the country's main sources of foreign exchange with accounting for 12% of the GDP, generating roughly $700 million annually. Tea was introduced to Sri Lanka way back in 1860's by the British.
Different kinds of marketing strategies have been used by tea companies for the purpose of having better profits. Most influencing factors regarding tea purchasing in Homagama area is identified through this research, which was occupied the survey method to collect data using a structured questionnaire.
Influence of the variables such as brand loyalty, discounted price offer, popularity of the product, price, promotional activities, outlet offers, attractive display, behavior of vender, activity of reference groups, advertisements, packaging and the product standard certifications were analyzed. Factor analysis was used under the guidance of KMO and Bartlet's tests to identify the influence of above factors using SPSS 17 software package. Twelve factors were compressed into 4 as promotional strategies, stimulant characteristics, branding characteristics and silent marketing factor. Packeted black tea in medium weight category was most proffered by the respondents while giving the prority to "taste" and "bitter". Self and family influences were highly concerened while purchasing teas. Specified market studies may be more effective in future studies.
Key Words: Tea, marketing strategies, survey, factor analysis, market
