Analyzing the Problems of Sales and Trade of Iranian Tea and Providing Strategies for Overcoming Them

Document Type : Original Article

Authors

Assistant Professor, Department of Public Administration, Payame Noor University, Tehran, Iran.

Abstract

Aim and introduction:  Tea, following water, is the most popular beverage worldwide and holds significant strategic importance in the commercial sector of our country, akin to pistachios, saffron, dates, and other agricultural products. In addition to its high demand and consumption, the production, processing, and trade of tea involve various factors, including production technology and policy-making. Agricultural products, including tea, have the potential to make substantial contributions to the country's non-oil exports. Despite Iran being among the top ten major tea producers, it has unfortunately not secured a competitive position in the global market, capturing less than 5 percent of the market share. Currently, due to ineffective and unprofessional marketing of agricultural products, including tea, most profits from product sales are siphoned off by intermediaries and profit-seekers. This misguided approach directly and indirectly undermines the welfare and economic stability of tea farmers and producers. The present study aims to first identify the barriers and challenges facing the Iranian tea market and, subsequently, to provide a model for problem-solving and market development by identifying strategies, obstacles, and accelerators.
Methodology: The present study is a qualitative research project based on interviews with 15 experts and practitioners in the tea industry in Gilan Province. The selection of interviewees was conducted using a purposive sampling method. Criteria for selecting individuals included possessing expertise and relevant experience in the tea industry, as well as in its distribution and sales in both domestic and international markets. The number of interviewees was determined based on the principle of saturation, which means that interviews continued until theoretical saturation was achieved; this occurred after the twelfth interview. It is important to note that interviews continued up to the fifteenth participant to further ensure the non-repetitiveness of the topics discussed. The interviews were conducted in a semi-structured format, and the content was subsequently analyzed by the researchers for coding purposes. In the initial stage of open coding, a total of 157 codes were extracted from the 15 interviews. By analyzing these codes and examining their formal and conceptual repetitions, a final set of 70 codes was identified.
Finding: The research findings revealed that the model developed from this study comprises five main categories: 1) Problems and challenges, 2) Fundamental and essential factors contributing to these problems and challenges, 3) Actions and operations, 4) Catalytic and supportive factors, and 5) Expected outcomes of implementing actions. The problems and challenges can be further classified into three overarching themes: branding-related issues, marketing and advertising issues, and production and product quality issues. The data coding findings indicate that the fundamental and essential factors leading to these problems and challenges can be grouped into four general themes: environmental factors, supply and demand, marketing and commercial contexts, and policy and policymaking. In terms of actions and operations, four primary categories were identified: marketing and branding operations, quality improvement initiatives, measures to enhance operational efficiency, and supportive policy governance, with the latter recognized as the sole catalytic factor. Regarding the expected outcomes of implementing actions, three main outcomes were identified: market development and sales, national production development, and economic growth and development. Each of these main categories is further divided into several subcategories, resulting in a total of 69 subcategories.
Discussion and conclusion: Improper marketing practices stemming from a limited understanding of the target market, a lack of knowledge in effective advertising strategies, insufficient promotion of Iranian tea, excessive promotion of foreign teas, weak brand development for domestic tea, and an inability to meet consumer needs and demands have been identified as significant issues in marketing, branding, and advertising. Furthermore, irregular imports of foreign tea, inappropriate pricing of Iranian tea in comparison to foreign alternatives, market price instability, an overabundance of intermediaries, inadequate market facilitation structures, and the absence of a specialized market have been recognized as underlying factors contributing to the challenges in the marketing and commercial sectors. By implementing strategies such as developing new markets, enhancing advertising, and advancing brand development, it is possible to attract more domestic and international customers. This approach can increase the market share and sales volume of Iranian tea products by improving their quality. Furthermore, implementing solutions such as increasing productivity, reducing production costs, enhancing product quality, and establishing a strong national brand can significantly contribute to the development of the tea industry in terms of domestic production. Creating favorable conditions for investment in tea-producing regions, generating indirect employment within the tea value chain, and developing high-value-added tea exports have the potential to significantly contribute to economic development and growth.

Keywords


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