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Tea Smuggling

In: Business and Management

Submitted By eshaami
Words 643
Pages 3
How branded tea can compete with loose tea providers? And can they stop smuggling of tea?
Pakistan has two types of trade ties with Afghanistan. One is bilateral trade set-up as it has with the rest of the world. The other is exclusive under Afghan Transit Trade Agreement (ATTA). The Afghan Transit Trade Agreement (ATTA) contains a number of concessions to the landlocked Afghanistan as transit facilities. The imports of Afghanistan had been exempted by the custom duties coupled with a ‘favourable’ considerations regarding service charges, port levies and handling fees. “Around 70 million kilograms of tea are being smuggled into the country through the Afghan Transit Trade (ATT) which only hurts official imports and reduces income from import duties.”
Official or branded tea importers should use effective marketing strategies to energize their business and boost their sales. As Pakistan is the third largest importer of tea in the world. They should increase the market share by improving the customer experience by offering them free samples or gift coupons. Official importers should use reminder communications to be in the customers mind every time. The advertisement should always communicate some message or motivate customers to buy branded tea. They should penetrate through advertising techniques to capture more market share as compared to the loose tea providers. As Lipton tea bags communicate now a day that every type of tea user can make tea from same tea bags (light, medium, dark) by making the easy use. This type of marketing campaigns attracts more customers and increases the profits of official importers. Official importers should provide some incentives to increase their customers. They should energize their brands through various sponsorships or programs to enhance their target market. Official brands should use celebrity endorsement to communicate that...

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