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Kazi and Kazi tea is the pioneer of 100% regular tea merchant in Bangladesh. They are the first
internationally certified organic tea estate in Bangladesh and they have their own garden, which
situated in Panchagarh, and are the individual who at first prepared another changing the way
in which tea was seen. As a BBA student, we have to spread the company for going around the
world. That is why we want to make it accessible in New Zealand. KKTA is in like manner
exchanging U.K & USA and now in New Zealand. The reason of picking this country is- the
trade economy of New Zealand speaks to a risk because of the significant dependence on the
trade. Hence, that is on favored point of view for us to enter in that country because of its
dependence on import. Therefore, it is a shrewd idea for the extending arrangements and
turnover inside the New Zealand promote.

Before that, we have incorporated an organization investigation comprising of the point-by-

point data about the organization in general. We have additionally included different business
natural viewpoints by the assistance of a point-by-point-organized Porter’s five forces and
PESTLE analysis consisting of the Political, Legal, Social, and Economic and Cultural factors.
Such excrement has helped us comprehend the present business condition of the organization.
By then we have added the SWOT analysis considering the internal strengths and weaknesses
and the external opportunities and threats. We have also demonstrated all the data required
before entre into global business. Finally, we have demonstrated which way we take after to
Entrance in New Zealand with separate conclusions for our organization.

Kazi and Kazi Tea is produced in Bangladesh, which is known to be the pioneer of organic tea.
Kazi and Kazi Tea is the first certified by international certifying authorities. It is the first
largest tea garden situated in Panchagarh and is only single-estate premium blend tea. It is also
available in the premium venues of the world for like Harrods of London, also the only local
brand that is exporting tea in USA and Japan. Kazi and Kazi Tea is one of the biggest tea brands
in Bangladesh which is known to be the first organic tea of Bangladesh. It is a product of
Gemcon Group of Bangladesh. The location of the garden of Kazi and Kazi Tea is at Tetulia,
in the northern side of the district Panchagarh, Bangladesh which is 50km south of Darjeeling.
It is also sold as ‘Tetulia Tea’ in USA. They produce the high quality organic teas and meet
the demands of the consumer taste.

In the year of 2000, the journey of Kazi & Kazi Tea started. They did a lot of research and
consultation with the Board of Bangladesh and after all the discussions, they started their
plantation on 6 August, 2000. In the year of 2006, the Kazi and Kazi Tea group had already
entered the local market. It was approximately approved that in the year of 2006 at Chittagong
tea auction Kazi and Kazi Tea was valued to be the highest. They promise to produce only
organic tea and with the natural and organic means, they are manufacturing bio-fertilizers and
Both orthodox and CTC organic teas are manufactured within the local market and overseas.
In addition, different types of herbal tea are produced that includes all the essences of the
ingredients producing from their own garden. Kazi and Kazi Tea is currently under the KK
brand in Bangladesh.

The different flavors and brands of the Kazi and Kazi Tea are:

a) Classic Black Tea

➢ Black Tea
➢ First Flush Tea
➢ Orthodox Black Tea
➢ Tulsi Tea
b) Green Goodness
➢ Green Tea
➢ Jasmine Green Tea

➢ Orthodox Green Tea

c) Herbal Infusion
➢ Ginger Tea
d) Combo Box
➢ Combo Box

Company Overview

Kazi & Kazi Tea Estate Ltd. at a glance

Head Office House#44, Road#24, New Dhanmondi, Dhaka-1209

Operational Head Quarter Kamalpur, Panchagarh, Dhakkamara, Bangladesh

Legal Status Private Limited Company

Types of company Manufacturer

Types of factory Exported quality tea producer

Year of establish 2000

Number of Employees Above 1,100

Annual Sales volume Below $1 million USD

Main products Black tea, First flush tea, Orthodox black tea.

Founder Kazi Shahid Ahmed

Company Background

Kazi & Kazi Tea is a private limited company and the only one organic tea garden in
Bangladesh. This is a family owned enterprise supported by Kazi Shahid Ahmed, who came
up a new idea of processing the tea fusing up the old tea producing tradition. In this tea garden,
more than 500 women work which place a vital role for economic growth in Bangladesh.

Company’s mission and vision was to get profit from its income as well as to benefit the
community deciding their workforce. They thought of various social services including
hygiene distribution, health cares, adult education, organic farming to dispose of the poverty
levels. Kazi and Kazi went far to enrol and the people who are capable of and offered them to
be the part of it by becoming the stakeholders. The project may appear to be exceptionally
young and new however, they are heading towards a huge scope of networking after the
achievement section advertise in USA and UK for even more encouraging outlook.

Porter’s five forces

Threats of new Entrants

Economical scale: economical scale is how much service should be increased for getting
higher output.

Increase of new branch: For opening a new branch, the ‘Kazi and kazi’ should need new
Employees, new equipment, increasing the strength of security system. Therefore, its Cost is

Startup cost: If the ‘Kazi and kazi’ launch new service such as bikash, online services, it
should spend a lot of money. If new things come in the market, it will be very hard for them to
bear its cost. So this market is attractive. No one can capture this market so easily.

Rules and regulation: How much cost should be given to run a new ‘Kazi and kazi’ is
described in the Government rules and regulations. For this reason, to create a new ‘Kazi and
kazi’ cannot be launch within a short time. Rather than, it will take a lot of time. So these
markets attractiveness is High. Because it cannot be done so easily. Therefore, for creating just
a normal organization, one cannot make rules and regulation in their own hand. They must
strictly follow rules and Regulation of New Zealand government. It should be noted that,
government has alternative Rules and Regulation for the ‘Kazi and kazi’. So for this reason,
the tea market Effectiveness is high.

Threats of substitution:

Threats of substitution means the same product how much Company can launch. The sub point
of this category is

Switching cost: A customer must not spend lots of money if they want to get same service
from other company. For example, a customer switches his/ her choice to coffee to tea. So they
must have they own choice and various cost.

Service availability: In this sector, service is only for home delivery or this type of things but
on the other hand tea sector have not that must trust on service availability.

Buyer’s loyalty: Buyers loyalty means how much royal are the customers. The customers who
is addicted in tea types of things they will never give up on their own brand. Because of their
taste value and their loyalty.

Number of suppliers:

Number of supplier’s means1 how many suppliers the tea business gets. All tea supplier is only
one, which is Bangladesh tea board. So that is why they cannot easily high their charges. Also
they Cannot high interest rate. These only depends on Bangladesh tea board and the attitude of
the market. In addition, they cannot invest whatever they want to do, there is a specific ratio,
and they cannot invest by getting out from that ratio. So, in this circumstances, market approach
is law attractive because they cannot do whatever they want to do.

Current Rivalry:

Current rivalry means in the present situation how many persons exist. In the market. In the
current revenue two categories exists.

Industry Growth rate: Economy is growing in New Zealand. Many people have economic
solvency. They are interested tea business and tea products. That is why, they are feeling
interested in keeping faith in different tea business. Besides many business sectors are

Summary chart:

1. Threats of new entrants – high, –threats –low, -Attractiveness – high

2. Threats of substitution – Low, –threats –high, -attractiveness –high
3. Bargaining power – low, -threats- high-, attractiveness- low
4. Numbers of suppliers – low, threats- high, attractiveness- low
5. Current rivalry – high, threats- low, attractiveness –high

Five Forces Model Threats Attractiveness

Threats of new entrants LOW HIGH

Threats of substitution HIGH HIGH

Bargaining power HIGH LOW

Numbers of suppliers HIGH LOW

Current rivalry LOW HIGH

SWOT analysis of
Kazi & Kazi Tea Estate Ltd.


✓ Discoverer of natural tea farm in Bangladesh.

✓ Nationally well renowned.
✓ Healthy and superior quality.
✓ Provides a healthy unlike at cheap rates and with attractive packaging.
✓ Taste and smell of the tea is unique.
✓ Best quality product at reasonable rate.
✓ Different flavors ensure the serving various type of customers.
✓ Qualified management team closely inspect work.
✓ Export specialized.
✓ Existence in prominent markets. (USA, UK)
✓ Use natural insecticides to form sure no chemicals or harmful materials get
mixed with the products.


✓ Cannot produce all type of tea products.

✓ Less coverage and less use of promotional tools.
✓ They are only focusing on producing natural tea not in the variety.


✓ Own shipping system to allocate products in all over the Bangladesh.

✓ They have well established R&D program, which are trying to predict the demand
and produce all categories tea products.

✓ They are exporting and expanding their business.
✓ Organic tea is a solid drink accessible with variety. Green tea is getting to be
noticeable among all ages while youths are taking to frosted tea. Need to elevate
tea to take into account the cola dependent youthful era.
✓ The future equally has a place with Natural ensured homemade tea, green tea, white
tea, purple tea and other claim to fame teas.
✓ Accessible improvements and distinct offering.
✓ Greater Worldwide reach and raising comfort knowledge among client group.


✓ Existence of numerous competitors (M. M. ISPAHANI LTD, FINLEY, National

Tea Company Limited).
✓ Increasing popularity of Black coffee.
✓ If customers of Bangladesh are not appreciative about the profits of use of organic
and natural product, it may also a threat for the Company.
✓ Unable to produce all categories of products
✓ Climate change can threaten the quality of tea production
✓ Labor shortage and non-appearance

Almost 80% of the collective cost of tea production has little degree for depletion and the
wage segment organize more than 60% of total cost of production.


As so much as abroad business, Kazi and Kazi Tea Estates ltd. we want to serving in New
Zealand underneath "Tetulia" brand. Their monstrous accomplishment in abroad market
within such a restricted capability to focus time could be a pointer that it is unlimited
conceivable outcomes of accomplishment within a lot of noteworthy worldwide market.
We tend to feel that, it will serve those business sectors considerably a lot of proficiently
seeable of its current open doors. There is an incredible plausibleness of accomplishment
in those business sectors in lightweight of organization's inner quality. Its solid image
name and premium quality item that helps in achieving market success. Its closeness

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within the main market can provides it a straightforward passage to the market. Item
characteristics like style and fragrance, accessibility of varied flavors at a moderate rate
with appealing bundling can snatch consumer thought. Above all, its solid administration
can guarantee its flexibility within the market. In spite of those qualities, we will not
overlook its weaknesses that may hurt the accomplishment of the organization within the
worldwide market. For catching any new market or get, client's thought solid restricted
time movement has no possibility. However, from its past execution in alternative
universal market its primary weakness is followed to less restricted time action. Then
again, results of Kazi and Kazi tea home ltd is differentiated which may raise the danger
of losing financial gain from the event any defenseless circumstance. KKTE is focusing
simply on natural tea. In any case, those nation people like low for his or her breakfast.
Also, one thing else is, it's tough to form tea since it’s would like ten minutes, but coffee
making simply need two minutes. So, that’s additionally a biggest weakness.

Existing possibilities of KKTE be may utilized to hide the weaknesses. Simply acceptable
execution of the open doors will provide it the market edge. Raising prosperity awareness could
be a pattern that is maybe about to quicken the interest for natural Kazi and Kazi Tea in those
business sectors. By advancing, the item through on the online and individual giving KKTE
will guarantee additional noteworthy shopper reach. Also, advancing new item and fitting few
things as indicated by the requirement of the vernal era KKTE will guarantee action in those
business sectors. Organization will likewise enhance their item by utilizing additional
fashionable innovation and data accessible therein market.

Organizations will conceal its weakness by enhancing its execution or by legitimate utilization
of its possibilities but dangers square measure one thing that a company cannot administration
that the main path is to brink its execution to the degree wherever the organization will
guarantee its extreme gainfulness. Environmental amendment and work provide cannot be
controlled but the organization will figure any conceivable natural amendment previous and
might expand its creation limit once the climate is good. Therefore, it will battle any adjustment
in atmosphere or works advertise by having some further item within the capability. Ascend
within the creation price will smother the item quality which can squarely influence the
shoppers request. By any ways, nature of the item cannot be listed off no matter the chance that
it is harming the financial gain stream. Since, if the standard drops in one universal market, it

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will influence the shoppers of various markets additionally. Ascend current price are often
controlled by utilizing innovation which will enhance development strategy or can advance
price skillful technique. Closeness of substitute item will never be forgotten. Solid substitute
for Tea is low which are square measure worldwide players for serving shoppers with the most
effective low in those business sector. In any case, we will build up our item within the buyer's
psyche as a solid drink, which may ne'er be contrasted and occasional concerning medical
blessings. For this example, we must always teach our objective shoppers and solid marking.
So, that at no matter purpose they think about having one thing sound simply KKTE things are
their 1st call. In any new market, native market contenders can take once our impressions. On
the opposite hand, we tend to may have to confront outside contenders. We would like to form
solid countering by utilizing our qualities with the goal that contenders will not be capable take
piece of the business. Be that because it might, we tend to ought not to overlook contention to
some extent is helpful for quickening market development and for any item amendment.

Possible to expansion the company in foreign country

Being renowned company in Bangladesh, we have found diverse purposes behind getting into
foreign country like New Zealand. In local market of Bangladesh, tea industry is stablished and
there is a weight to boost deals and benefits. An extremely aggressive deals and benefit targets
have been gained by Kazi & Kazi tea estate ltd. If such figures must be recognized, associations
need to move out of their household markets and outside in foreign divisions.

Sometimes organizations have to move out of their residential markets once their rivals have
done in and of itself, on the off likelihood that they have to stay up their piece of the general
trade. Kazi & Kazi tea is enouncing this condition. Its rivals have begun extending their
business in numerous nations; it is unavoidable for Kazi and Kazi tea to contemplate creating
a footstep. Export is a phenomenal way to deal with broaden the business with things that are
more largely recognized the world over. Kazi and Kazi tea can take this favored angle besides
need to influence a strong brand to picture in the worldwide market. Along these lines, they
can achieve noteworthy size of economy.

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New Zealand’s PESTEL analysis

Political factors:

There is a huge effect on the performance of the business due to the existence of political
environment in that country. Politics affects the citizens of New Zealand and so the
business needs to work accordingly to cope up with their political situations. Our company
can be affected by different political factors due to government attitudes and trade
relationships between the exporters and the importers, the government will interfere into
that trading. The political change in New Zealand happens every 3 years after and as a
result, the rules and regulation systems are changed in every three years.

Therefore, we should be aware of the changes occurring into the business due to the
changes in the political systems. The government is very strict regarding their political
issues and lending rates are high so high tax is to be paid which can reduce the profit of
our business. But then again the country encourages free trade to the companies to business

Tax system of New Zealand

Personal Income Above $70000 - 33%

$48001 to $70000 - 30%

$14001 to $48000 - 17.5%

$0 to $14000 - 10.5%
Company Income 28%
Sales and Excise Tax (GST) 15%
Fringe benefit Tax 49.25%
Gift Duty None
Estate Tax None
Capital gains Applies to foreign debt and equity
investment and not in NZ investments.
Dividends Imputation system to avoid double tax.

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Tax on saving Distributions are tax free as at source
tax paid at normal income level.

Others Key features of New Zealand‘s tax system include:

▪ No health care tax, apart from a minimal accident compensation tax.
▪ No general capital gains tax
▪ No social security tax
▪ No payroll tax
▪ No local or state taxes apart from property rates paid to local authorities
▪ No inheritance tax

Economic factors:

Over the last 30 years, it is observed that the economy of New Zealand has become one of
the most regulated and free market based in economies. They have ranked as the world’s
easiest place to start a business in 2015 and have ranked as the third freest economy. They
have a managed monetary policy along with a low inflation environment. In addition, they
have a very flexible and long-standing exchange rate. According to the statistics the GDP
of New Zealand is about US $ 173.2 billion (2016 PPP) and GDP growth 3.5% (2014 FY)
and inflation in 1% (YTD September 2014) and the unemployment rate falls from 5.7 %in
the year 2014 to 4.9% in 2016, therefore employment grows.

The economic activities of New Zealand are based on the natural environment. In the early
90s, 93% export income of New Zealand came from the grass related products. By value,
New Zealand ranked 12th largest agricultural exporter and ranked as number one in
exporting sheep meat and dairy products, also ranked as the second biggest wool exporter
in the world. 30% of the economy (GDP) represents the goods and services they export.
The important sectors that they want to focus for their economic development are-

o Biotechnology
o Food and beverages
o Reconstruction
o Creative industries

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Therefore, the economic condition is very much preferable to do business in New Zealand
for the product of Kazi & Kazi Tea. It indicates to hold a positive side in the economic
growth and inflation rate and a good rate of income profit from this business. Therefore,
the economy of this country has a natural balance sheet and therefore continues to become
more strong and leading to more expansions of their business according to our

Social factors:

It is very much important in maintaining a well-functioning society for a sustainable

development in the field of business. The contribution of the society also influences the
wellbeing of the society as well. It is very important to have a strong unity and bonding
within the society in order to achieve long term goals, building up trust and networks and
responding to changing conditions.

The social system of New Zealand is dependent on the business and trades of the other
countries, therefore the change in the external demand can influence the country’s
economic condition. The country depends on the external new technology that which
makes them spending low in R&D activities. Therefore, due to low risk and stable
economy of New Zealand the government welcomes and encourages foreign direct
investments without any hesitation or discrimination. New Zealand has a population of
4million people and has a majority of European heritage. There are two types of people in
the earliest inhabitants namely Maori and Polynesians, these two groups have in a way
similar ways of life but slightly different when it comes to cultural and social aspects. The
people of Maoris are into tattoos and their greetings are like pressing noses of each other.
The standard living of these people is high having 100% of literacy rate in their country,
provides different social services for the welfare of the citizen giving much reference on
the health care programs. People of this country are very much free and forward thinkers
believing in individualism

New Zealand comprises of different culture having majority of Christian dominated

religion, so it is seen that during the time of Christmas the people of New Zealand heavily
consumes on food and beverages also electronic gadgets.

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Coping up with their social and cultural environment is also not that difficult for us if we
are planning to set up a business of tea product in this country, especially because of their
warmth and welcoming behavior. In research, it is seen that they intend to have teas at the
afternoons and evenings. Most of the people, who are working, thrives for individualism
are tea lovers and especially they are fond of organic tea. There’s one thing to be very
much careful about is honesty and to keep it simple as much we can as for them they are
very much impressed in honest marketing and very simple to understand how benefited
can be this product. Therefore, we should not use hyperbolic languages or avoid the
promises that we cannot make while marketing or introducing our product.

Technological factors:

New Zealand is well known for adopting new technology very faster comparing to other
countries and their technological sector is developing day by day. The advance of knowledge
technology has considerably altered each side of recent New Zealand (NZ) society. In
everywhere, they are using technology such as social, professional, political and government
spheres in NZ society. ''BYOD'' in the workplace in New Zealand. ‘Bring your own device’
computing, or BYOD, is one in every of the most important trends within the current business
and computing surroundings.

In New Zealand, their physical, demographic, social, economic and political condition relevant
to the use of IT in New Zealand and 88% of NZ businesses using computers for some form of
E-business. Another successful innovation was Project PROBE where schools and
communities get high speed Internet on a region-by-region basis. Other policy responses by
the New Zealand government square measure summarized during this presentation like the
sponsored broadband network and rural broadband initiative. The government-subsidized
ultra-fast broadband network aims to ensure 100mbps to 70% of New Zealand customers by

It is clear that New Zealand society has been influenced greatly by developments in data
technology. Policy makers and businesses must put great effort into understanding
society’s needs when developing current IT strategies. The success of on-line tools like
TradeMe, Xero, and the NZ government’s on-line portal demonstrates that New Zealand
is willing to fast embracery new and rising on-line activities and moving towards

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becoming a true ‘e-society.’ New Zealand is an IT driven society and in far future, it will
continue to develop in this area in the years to come.

Environmental factors:

New Zealand lies about 1,600 km from both Australia and Polynesia. New Zealand’s climate
is cool to temperate, but can vary widely, even within one day. It is very hard to assumption
the weather forecasting in here. The low rainfall is 325 mm in Central Otago to an average of
5-8,000 mm in Fiordland. The low land area is naturally build up cultivate land for rainfall In
the island, the high Southern Alps, that run north south, cause a marked distinction between
the west and East Coast climates. Nearly 30% of the land mass of recent island is publically
possession and has a point of protection. Earthquakes are common, though usually not severe;
the level of protection varies according to the land status. Because of the climate the business
transactions go down which is bad for any business. The combination of external factors such
as climate change and invasive species. Flooding is the most regular natural hazard. Few
regions have escaped winter floods. Settlements area unit sometimes on the point of hill-
country areas, that expertise abundant higher downfall than the lowlands thanks to the
orographic result the distribution channels conjointly disintegrate.

Legal factors:

The public serving department of New Zealand, which is the ministry of foreign affairs
and trade (MFAT), is leading New Zealand’s free trade agreement (FTA). It is an
advantage for us to enter into the market, as they open up the market for new opportunities
different sort of streamline process, reducing cost, creating more security for the
companies that are doing business overseas.

New Zealand has a great partnership with Australia, China, Hong Kong, Singapore,
Malaysia, Thailand, Taiwan, and South Korea; they are also a member of Trans Pacific
Partnership Agreement. It is seen that New Zealand has a very close and low regulatory
economic relationship with the country Australia that also has a name as ANZCERTA, the
Australia-New Zealand Closer Economic Agreement. Moreover, this is one of the most
comprehensive agreements in the world. Therefore, if we are successful in the business
trade in Australia, we can surely enter easily in the market of New Zealand. Besides that

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are some business laws and regulations for doing business in New Zealand, which we have
to have knowledge about these are

o Trade laws
o Banking and credit laws
o Commercial and company laws
o Labor laws
o Securities laws
o Tax laws
o Bankruptcy and collateral laws
o Land and building laws

Over the past three decades the government of New Zealand has reformed the trade rules
by eliminating import barriers and export barriers and encouraged productive foreign
investments, they are known to be the most business friendly country in the world. In the
past 20 years, the country has taken few approaches to free trade, which is:

Trade Agreements: All international treaties must be vote in assembly before being signed and
must give full effect to its Treaty of Waitangi obligations. It must put the human rights of
peoples and Governments before those multinational company investors. Environmental
agreements through an International Trading Organization and regional trading agreements to
replace the WTO.
Human rights: It is prohibited importing goods produced by slave, prison or child labor.
Preserve the right of tangent when to protect themselves and their tango from trade and
investment related exploitation.
Ecological sustainability: It is ban trade in GMOs except under strict bio security controls for
contained use. Government reduces the introduction of unwanted foreign variety.
Just and sustainable production and trade: A government assurance to buy local reduce their
confidence on imported goods. For e.g. the food, it can grow here. Goods and services produced
or sold in NZ to meet up quality and sustainability standards for e.g. the energy and recycling
Support fair trade with developing countries that maintain sustainable growth. Preserve or
impose tariff, quotas or bans to stop unfair competition from unjust or indefensible production.
For e.g. forced labor, unsustainable classification.

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Resist trade deregulation in public services, goods and utilities & where pretty, roll back GATS
Investment safeguards to land ownership for New Zealand citizens and stable residents only.
More strict conditions on out of the country investment.


After observation of Pestle analysis of New Zealand, we have decided to explore Kazi &
Kazi tea to this country. We should not to go with ownership, Strategic alliances and
Contractual agreements. We will Export our manufactured product through the
international distribution channel in New Zealand.

▪ Ownership: Direct Foreign Investment a very huge amount investment for a

new entry in any country. At the initial, it is not necessary because the market
demand is not significant.
▪ Strategic Alliance: We want to establish the market by the product quality
and the brand itself. Therefore, we rejected the entry mode of any other
▪ Contractual Agreement (licensing and franchising): These can harm the
brand image. Therefore, the entry mode or strategy we have selected is to
Export tea to New Zealand from Bangladesh.

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Strategies to be followed in the new market

Process of Exporting: We will export throw our distribution channel and our agents will
collect marketing information and feedback.

First, we will analyses the market demand by the agents, take orders from agents, and get
an idea of the quantity of export. Second, we ship the finished goods to the agents. Third,
the agents will distribute to the local sales managers. Forth local sales managers will sell
to the Wholesaler, finally the wholesaler will sell it to the retailer. Customer will find the
products in retail shops.

From the beginning, we cannot work with a large distribution channel because it will be
high risk for us but gradually with time, we can extend the chain. However, we will
follow the same structure to run our business.

Distribution Channel:



Local Sales



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Tea is the most popular drink in the world today. It removes our tiredness, refreshes our mind;
stimulates our vigor and energy and it removes drowsiness and fatigue. Our report recommends
launching Kazi and Kazi Tea in New Zealand. Numerous other Asian food and drink businesses
have situated in New Zealand as of late and are getting a charge out of progress. Also given
that, New Zealand consumers are now more health conscious and require chilled drinks due to
the warm climate, Kazi and Kazi Tea may find a reasonable market for their organic tea
products. However, the company will succeed a must truth in every country if the marketing
plans are done and implemented properly. Kazi and Kazi (KK) is very hopeful about their
future, and with their successful venture into organic tea, they have every reason to be.

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