INB 355 COUNTRY RISK ANALYSIS

(Section 2)

Final

Report

Topic:

International Expansion of Kazi & Kazi Tea

from Bangladesh to Philippines

Executive Summary
The report contains a detailed research of the country risk analysis of Philippines and the
feasibility of Kazi & Kazi Tea entering the Philippines market. From the research conducted, it
was found that there are indeed underlying political and legal risks of entering the nation. It takes
around a month on average to get a business started and there many bureaucratic obstacles
during startup. The elections are to be held on May, 2016, which is why business may be best
served if started after the elections take place. The Philippines is also ranked high in the
corruption index and has a weak judicial system.
The economy is showing positive signs. Unemployment has reduced and consumer spending is
rising along with their disposable incomes. A very important figure is that 45% of total
household spending is mainly done on food and beverages. This gives a positive vibe for KK tea
as it is looking to sell beverage in the foreign market. Consumers are also looking for healthy
alternatives and growth in organic tea market has risen 2% in the past year. There arent many
competitors in the organic tea industry but Lipton has a 32% market share. The Philippine people
have unique business cultures and are more relationship oriented people.

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The market entry strategy suggested is export, as this would not require too much investment.
The products manufactured would be sold directly to distributors and retailers in the Philippine
market. Promotional activities could be done through media like print advertising, online
promotion, public relations, etc. Any other form of entry would be highly risky due to the weak
legal framework. More intermediaries will slow down the process. The major challenge for KK
would be the higher demand for coffee against tea. However, due to the demand for chilled
drinks, the organic tea bags may actually be successful as Organic Ice Tea.

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Table of Contents

Topic

Page Number

Introduction

Political Analysis

Economic Analysis

Market Prospects

16

Cultural Analysis

22

Market Entry Mode

25

Key Challenges

27

Conclusion

27

References

28

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Introduction
Kazi & Kazi Tea Estate Ltd. (KKTE) is a private limited company and a sister concern of
Jemcon Group, and the only organic garden located in Bangladesh. It situated at the district of
Panchagarh. Around 2,300 workers, mostly women, are employed at the huge Kazi and Kazi Tea
Estate (KKTE) at Tetulia. Kazi & Kazi Tea Estate Ltd. is the only internationally-certified
organic tea grower in Bangladesh and is inspired to produce high-quality organic teas to meet the
growing demands of both local and foreign markets. (Islam, 2012)
Company Analysis:
Kazi Kazi Tea products are currently available internationally under the Teatulia brand, mainly in
Singapore, USA and UK. Teatulia has become the first branded Bangladeshi organic tea for
international export. . The company has exported around 30,000 kg tea in the year 2008. The
prices of the brands are fixed at Tk 88 for 40 tea bags per packet (Daily Star, 2009)
Product Offerings:
KK tea has a range of organic tea flavors including black tea, jasmine green tea, ginger tea, tulsi
tea and green tea.

KK also has different packages with 40 single-flavored bags in each pack. They also introduced
a Medley pack which has an assortment of the different flavors.

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Unique Selling Proposition:

KK tea produces internationally certified organic tea products and maintains premium quality in
their products. They use natural pesticides to make sure no chemicals or harmful substances get
mixed with the product. They provide a healthy alternative at reasonable rates and with attractive
packaging. (Bangladesh Economic News, 2009)
SWOT Analysis of KK Tea:
Strengths

Weaknesses

Strong brand name locally

Less online activity

Healthy and premium quality

Only organic flavors

Export certified

Global presence
Opportunities

Threats

New flavors

Online promotions

New entrants

Rise in demand for Coffee

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Greater Global reach

Healthy customer lifestyle

1: Political Analysis of Philippines

1.1 Political system and structure
Philippines are a democratic and republican state. It is mainly arranged and operated by families
of families rather than organized around the voting for political parties. Sovereignty resides in
the people and all government authority emanates from them. The government is based on a
separation of power between the executive presidency a bicameral legislature and an independent
judiciary. (Official Gazette) However the main political risk includes a weak judicial system
with a poor record in case disposition with procedural delays and technicalities.

1.2 Stability of government

The Philippines were ranked 41st in terms of political stability. They are expected to fall further
in the near future. The average value for the Philippines political stability index is -0.06. The
government is pursuing to adapt a framework of sustained inclusive growth. However the
government procurement is relatively slow and bureaucratic. (BMI Research, 2015)

1.3 Future political risk

The government is planning to introduce a good governance agenda with reforms to counter
corruption and increase fiscal transparency. The key future political challenge will be to sustain
the momentum of institutional reforms and move beyond low lying fruits of catch up growth in
the last half decade. (Palatino, 2016)

1.4 Bribery and corruption risk

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Philippines suffer from widespread corruption the corruption perception index showed that the
situation in the country has improved slightly but still remained serious. It ranked 85 in the list
out of 175 countries. (BMI Research, 2015)

1.5 Summary of political factors affecting KK tea:

So we can summarize our political risk in the followings:
Government is very unstable and fluctuates very frequently.
Change in the power - make institutional reform with the fiscal transparency.
A weak judicial system.
Bribery and corruption rates are very high in Philippines.
As we have discussed the political risk above so we may definitely have an impact on our
business in Philippines. It is discussed below:
Unstable Philippines government can cause a huge loss in KK tea business, if the new
government may cancels or changes all the agreements.
A weak judicial system is always a legal threat for all foreign investment including KK
tea.
When the bribery and corruption rates are very high then KK tea may have to wait a
longer time to get work done legally as bureaucrats may look to acquire bribes.

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2: Economic Analysis of Philippines

2.1 Overview of Philippine Economy:
According to 2014 International Monetary Fund statistics, the economy of the Philippines is one
of the emerging markets and in addition, it is the 39th largest in the world. (World Economic
Outlook Database, 2015) So, exporting Kazi & Kazi tea from Bangladesh to over there is
definitely a good choice.
The Philippines is considered a newly industrialized country and it is currently one of Asia's
fastest growing economies. However, there are major problems remain regarding the alleviation
of the wide income and growth disparities between the country's different regions and
socioeconomic classes, reducing corruption, and investing in the infrastructure necessary to
ensure future growth. (International Monetary Fund, 2014)
2.2 Inflation Level:
In February 2016, consumer prices in Philippines unexpectedly rose 0.9 percent slowing from a
1.3 percent increase in January. This figure is the lowest since November 2015, as cost of
housing and utilities declined at a faster pace while food inflation eased. In Philippines, the most
important categories in the CPI (Consumer Price Index) are food and non-alcoholic beverages
(39 percent of total weight). Moreover, cost for heavily-weighted food and non-alcoholic
beverages slowed to 1.5 percent from 1.7 percent in the previous month. (Trading economics,
2016)

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Philippine Peso Rates table

Philippine Peso

1.00 PHP =

US Dollar

0.022 USD

Bangladeshi Taka

1.69 BDT

2.3 Currency Exchange Rates:

2.4 Education and Literacy Level:

In the Philippines, for children who are between the ages of 7 and 12, education is compulsory
and free. Although some families send their children to private school, most children attend

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public school. In the schools, English is the main language of instruction. The literacy rate of the
adult population is about 94%. (Asianinfo, 2010)

2.5 Labor Rates:

Labor Force Participation Rate in Philippines remained unchanged at 63.30 percent in the first
quarter of 2016 staying constant at 63.30 percent in the fourth quarter of 2015. (Trading
economics, 2016)

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2.6 Trading Blocs of Philippines

Regional trade blocs are intergovernmental associations that manage and promote trade activities
for specific regions of the world. This process made trade among the members as an integrated
activity, as members within regional blocks assists each other in economic, political, security,
climatic, and other issues that affects the region. (Rosaliene Bacchus, 2016)

Membership of Philippines in Regional and Economic Trading Bloc:

Asian developing members: One of the member of 31 other negotiating
members
APEC (Asia pacific economic cooperation forum): A negotiating member along
with 21 other members
ASEAN (Association of Southeast Asian Nations): The group is consisted of 10
members along with Philippine.
Cairns Group: Coalition for agricultural exporting nations lobbying for
agricultural trade liberalization. It has 23 members
G-20: Unlike G-20 committee of finance ministers groups this is a rather group
of countries addressing ambitious reform of agriculture in developed countries.
G-33: Also called Friends of Special Products in agriculture. Coalition of
developing countries pressing for flexibility for developing countries to undertake
limited market opening in agriculture.
NAMA-11(Non Agricultural Market Access): Coalition of developing countries
seeking flexibilities to limit market opening in industrial goods trade.
(World Trade Organization, 2016)

2.7 Foreign Trade Statistics of the Philippines

The countrys total external trade in goods for the first semester of 2015 reached $59.610 billion,
representing a decrease of 2.7 percent from $61.264 billion for the same period in 2014.
(Philippine Government Census, 2015)

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The negative growth of the external trade was due to the decrease of both inward and outward
trading of goods. Total imports decelerated by 2.3 percent.
Top Exports: Aggregate revenue of the top ten exports in 2015 amounted to $23.902 billion or
82.7 percent of total exports receipts. It decreased by 2.8 percent from $24.598 billion reported
in the same period of 2014 (Philippine Government Census, 2015)

The top five exports were Electric products, other manufactures, Machinery and Transport,
Furniture, and chemicals.

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Top Imports: The top ten imports for the first semester of 2015 accounted for 73.1 percent or
$22.467 billion of the total imports. It registered a negative growth of 4.8 percent from $23.590
billion during the first semester of 2014. (Philippine Government Census, 2015)

The top five imports were recorded as electronics, Mineral Fuels, Transport equipment,
Industrial Machinery, and other food and live animals.

Major Trading Partners: Philippines major exports were to Japan as of 21.4 % followed by
USA (15.3%) and China (10.6%). (Philippine Government Census, 2015)

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On the other hand, their majority of imports came from China (15%), USA (10.8%) then
followed by Japan (8.4%). (Philippine Government Census, 2015)

2.8 Legal System:

Intellectual Property Right (IPR) IPR is very important for a business to sustain and grow. Lack of IPR may call ruin for a
company or a brand it gets counterfeited. In Philippine IPR can be divided into 17 classes. These
are listed from A to Q. While all the classes listed are specifically for copyrighted material,
trademarks and other forms of intellectual property, depending on what it is, are covered as well.
Patents do not have a category. These classes are Literature, periodicals, Computer programs,
Broadcasts etc. Beside these 17 classes there are other laws addressing IPR such as Fair use
Moral rights, Ownership of Copyrights etc. (Intellectual Property Office of the Philippines,
2016)

Enforcement of Contracts -

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Time and cost are tracked following the evolution of a sale of goods dispute, from the moment
the plaintiff files the lawsuit until actual payment. The Quality of Judicial Processes Index tracks
the availability of a series of good practices that promote quality and efficiency in the
commercial court system. (Doing Business, 2016)

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3: Market Prospects in Philippines

3.1 Current Market Scenario

KK is the only internationally certified organic tea grower in Bangladesh and is widely popular
in the Bangladesh market (Rahman, 2015). KK has a very wide product line which includes
classic black tea, which again ranges to 3 different teas, such as Black tea, First Flush Tea, and
orthodox black tea. Green flavors ranges to Green tea, Jasmine Green Tea and Orthodox green
tea. There are also herbal tea, tulsi tea and the best, medley tea (Kazi and Kazi Tea, 2015). KK
tea is now sold in countries like United States, United Kingdom, New Zealand and Malaysia
(Rahman F. , 2015). The Philippines market share is lead by Lipton with its impressive black tea
and green tea (Euromonitor International, 2016). Therefore, there is an opportunity for KK tea to
enter the Philippines market with its own brand.

3.2 Division of Tea Market

The Philippines Tea Market can be divided into three segments. Each market portrays different
demand patterns for consumption:
a. Ready to Drink (RTD) Tea: Annual growth in demand for RTD Tea was forecasted to be
between 6.6% and 8.3% from 2011 to 2016. This growth is driven by the rapid
urbanization and increase in income of the people (Soft Drinks International, 2013). The
ready to go tea sellers use traditional flavors to adjust to the regional preferences. In the
future, the market is expected to grow further at moderate rates for Ready to Drink (RTD)
tea (The Entrepreneur, 2011).

b. Organic Tea: The overall market for organic tea also looked strong. Health conscious
customers brought a rise in demand for organic tea flavors. Black tea, Green tea, and
other organic tea flavors with nutritional benefits that improve health have given a boost
for the market potential (The Freeman, 2015).The annual growth for organic tea flavors

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was at 2% for 2015 and is expected to remain constant in the following year. (Food
Editorial, 2016)

c. Milk Tea: Philippines milk tea shops have been doing good business in recent years.
Currently, there are a many tea shops around the nation; however demand does not seem
to be lessening. In fact, the small scale shops can are actually making most of the profits
by selling around 200-300 sold drinks per day on average. For example PHNI (Popular
Household Names Inc.), which is a popular supplier of bubble tea products in the country,
has also been enjoying a profitable venture (Valdez, 2014)

3.3 Consumption Pattern

The drinking habits of the people in Philippines can be traced back to when they were colonized
by Americans and the Spaniards, which is why eating and drinking patterns were influenced by
those cultures. This has led to them largely being coffee and soda drinkers. However, in recent
years, the health benefits of organic tea flavors have led to a rise in tea consumption. Milk tea,
especially, has gained a craze which is also known as pearl tea or sometimes as bubble tea or
boba tea (Desilver, 2013). Filipinos love to have cold drinks. With a tropical climate, people
naturally want chilled beverages to cool down from the regular heat. This is why even coffee
shops realized that chilled and shaken products are in higher demand. Also, the local taste for
sweets means creamy and sugary milk tea drinks are popular with most people of different ages
(The Entrepreneur, 2011). According to recent annual per capita consumption of tea, it is seen
that Philippines are languishing at no.143 among 156 countries, consuming only 0.014 kg, which
is very low. The annual per capita coffee consumption is 1.2 kg. So, it is evident that coffee is
very much favored over tea in the country. (World Library, 2009)

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3.4 Competitor Analysis

The direct substitute for tea is coffee in the Philippines. However, other hot and cold beverages
like juice, sodas, etc are also substitutes. Overall, tea still comes second when compared to coffee
in overall hot drinks (World of Coffee and Tea, 2016). Universal Robina Corp is the leading
company in RTD tea, with a market share of 76% in 2015. Behind them are PepsiCo
International and The Coca-Cola Export Corp (Euromonitor International, 2016). The market
share for organic and milk tea is led by Lipton at a substantial 32%, and it is the worlds best
selling tea brand (Unilever), so it might be a bit difficult to move customers from Lipton to KK.

3.5 Available Distribution Channels

Common Distribution Channels in Philippines

Supermarkets

Example - Walter Mart

Shopping Centers
Example Robinsons

Local shops

Example 7 Eleven

Drugstores

Cash and Carry

Example - Makro

Hypermarkets

Example Mercury

Example Save More

Drug

Hypermarket

(Santander Trade Portal, 2016)

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Most of the companies use the services of agents, distributors, and intermediaries for distribution
that are mainly located in Manila. Starting business in the Philippines requires going through a
broad network of subcontractors. Thus, the best way to enter the Philippine retail market is to
obtain a local partner. It can be a franchisee, distributor or an equity partner. Completely foreignowned retail businesses are also allowed under certain conditions. The business partnership
model can solve local administrative issues, build its brand and sell in the Philippines. The local
partner can also help in finding reliable distribution channels, formulate promotional strategies
for the local market and manage the product mix based on areas and seasons. (Santander Trade
Portal, 2016)
KK tea should look to enter the Philippines market using local distribution channels like
supermarkets, groceries or local shops mainly. As tea is a household product that is consumed on
a daily basis in most cases, it needs to have a wide reach on the target customer base.

3.6 Major Advertising Media

The traditional methods for advertising used in Philippines are:

Advertising Media

Brochures

TV Commercials

Newspaper and Magazine ads

Flyers

Radio broadcasts

Digital Marketing

(NetRev Marketing, 2015)

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KK tea can make use of a combination of these traditional methods along with supplementary
marketing techniques. These are needed for customer engagement, special promotions and
increasing online presence. (NetRev Marketing, 2015) Digital marketing methods are also
important media channels needed to be used to tap into the Philippines market. The table below
shows the methods best fit for KK Teas promotional campaigns.
Digital Marketing Methods
Email Marketing

Content Marketing

Social Media Marketing (SMM)

Online Public Relations

(Digital Marketing Philippines)

3.7 Total market size and potential

Around half of the total household spending (45%), is on food and beverage items by consumers
in the Philippines. This shows the potential for beverage businesses in the nation. Philippines are
also the nation which spends most on food and beverage in comparison to other nations in the
ASEAN.

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The Philippines is going through a rapidly growing number of dual-income families. The
increasing level of income is forcing changes in consumer preferences and the want for a greater
choice of food products and beverages. Especially, young workers and affluent consumers are
ever more interested in high-quality foreign F&B (food and beverage) brands. Filipino customers
are open to new kinds of cuisines, food products and beverages. Due to the improving living
standards, health-consciousness is also on the rise. Most Filipino consumers are now demanding
healthier foods, like sugar-free and organic products. (HKTDC Research, 2014)

3.8 Target market and demographics

Total Population

107 million

Population Aged 15 and Above

70.62 million (66%)

Population estimated to drink all types of Tea

21.2 million

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Population estimated to drink Organic Tea 7.5 million

Flavors
Initial Reach (expected)

2 million

KK tea will be targeting the population aged 15 and above. Most of the tea drinkers in the nation
fall under this age group. However, the whole population will not be drinking tea as they have
substitutes like Coffee. Again, the remaining segment can again be broken into people who
prefer Milk tea, Organic tea and Ready-to-drink tea.

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4: Cultural Dimensions of Philippines

4.1 Major religion, ethnic group and language
Religion: Roman Catholic is the dominant religion in where 86% of the total population follows
this religion. 6% goes to the nationalized Christian cults while the protestant carries only 2%.
While 4% are Muslim and the rest of the 2% is carried on by the non-western, indigenous beliefs
and practices. (Ethnologue)

Ethnic group: The largest ethnic group in Philippines which is 28.1% of the country is the
Tagalog which is an Austronesian language. 13.1% belongs to Cebuano, Ilocano took 9% while
Bisaya with 7.6%. The rest is divided among Hiligaynon, Bikol and Waray with 7.5%, 6%, and
3.4% respectively. (Ethnic Groups of the Philippines)
Languages: The vast majority of Philippine people language is Filipino and English. Some
Philippine citizens still think of themselves first as British, French, Danish, Italian, etc., and are
not wary of giving up national culture. (Ethnologue)

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4.2 Major Sports and Recreation:

Philippines people have a few major sports including basketball, football, billiard and volleyball.
The sport is called culture of recreation & sports, a Filipino term for sandpaper. (Hernandez,
2015)

4.3 Major differences in beliefs, values, customs, and behaviors, role of family
The Filipino people are very rich in customs and traditions. There is a very strong connection
among the family members. They easily convert their business relationships into personal
relationships. However the foreign visitors are treated with the utmost respect. They prefer to
settle down in one place and be near family. The society is driven more by competition and
success. Philippines is described to be the nation of strong women. They are involved in every
sector of the country say it business or government or any agencies etc. (Gazi, Sarker, &
Hossain, 2015)

4.4 Unique Business Customs that must be taken into consideration:

Business Meetings:
Plans, date and related materials must be convey to the participants well ahead of
a meeting.
New comers are treated absolutely formally.
(Hamlett, C.)
Time and Decision makings:
Time is strictly maintained, late arrivals are considered rude.
Elders are to speak first whether by organisation hierarchy-wise or age-wise.
(Center for Intercultural learning, 2012)
Conversations:
Asking about social activities like marital status, childrens name is considered to
be an act of fostering warm relationship rather than considering rude.
Raising voice, anger, deconstructive debates are considered shameful.
(Hamlett, C.)
Business relationships:
Its customary to offer business cards in initial personal introduction.
After receiving a card sparing a few moments on it is a good gesture.
Address individuals by full names in the initial meetings.
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Handshakes are standard greeting protocol in most business sectors.

(Center for Intercultural learning, 2012)
Gifts:
The beautification of the wrapping of the gifts is most important.
Books, small electronics items, unique items of an individuals own country are
appropriate as business gifts.
If invited to a colleagues home, always take flowers (with the exception of lilies
and chrysanthemums). Avoid anything else.
(Hamlett, C.)

4.5 Unique aspects of written, oral and non-verbal communication:

All the business activities must have written records of them.

Raising voice is unacceptable.
Not having direct eye contact, pointing fingers are considering truly offensive.
(Brad, D. University of San Francisco)

4.6 Philippines culture analyzed using Hofstedes model:

Power Distance: Philippines scored 94 which indicate that there is a really high emphasis

on power and control.

Individualism: Philippines scored 32 which indicate that they prefer to work in groups

rather than working alone.

Masculinity: Philippines scored 64 which indicated that the country is pretty much male-

dominated.
Uncertainty Avoidance: Philippines scored 44 which indicate that a bit more people have
the ability to speak the unwanted truth than the people who do not.
(Geert Hofstede, 2015)

5: Market Entry Mode

5.1 Entry Mode: Export
Tea has continued to show positive growth in the Philippines in 2015 and awareness of the health
benefits of tea continued to grow. Given the analysis conducted it seems that the best way for KK
tea to enter the Philippines is through exporting. Exporting is the direct sale of domesticallyproduced goods in another country. In this case, export is less risky than any other entry modes
as it requires smaller investment initially. Export will help us to avoid any huge investment costs

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for manufacturing and producing it in Philippines. Exporting can be profitable for businesses of
all sizes as it usually leads to a faster growth in sales. Direct export requires the use of
intermediaries which can be less of a hassle. A network of retail distributors need to be used to
place the product in the market. By exporting, KK tea will be able to diversify their portfolio.
5.2 Distribution
The KK products will be distributed in major groceries and retail shopsall over Philippines. KK
will enter the market with various existing tea flavors in Philippines and will also introduce some
new extra flavors for the local market, according to their taste and preference. Many
supermarkets and retail stores in Philippines have encouraged and established definite sections
selling organic and natural products where KK can have a good share. The supermarkets,
hypermarkets, grocery stores and retail stores are the major distributer and seller of packages
goods where half of these goods are from credible and reliable importers.
5.3 Food Market and Campaigns
Any food company will be willing to invest in the Philippine market due to its competitive and
open nature, basically welcoming foreign goods and retailers. Some well renowned and famous
packaged food brands such as Unilever, Kraftand Nestl have been in Philippines for a long time.
They have used a more family oriented marketing strategy to capture the market. They focused
more the need for family, relationships and togetherness and encouraging the young ones to take
part in the family get-together. Another advantageous move could be to concentrate on health
benefits. AS KK tea has tons of health benefits it would be easy for us to portray the benefits. All
together the country is racing its way towards urbanization leading to a fast development of the
food and beverage market.

5.4 Examples of Successful Foreign Business in Philippines

Tim Ho Wan: Tim Ho Wan is a Chinese dimsum restaurant chain that is set up in Philippines.
Dimsum is a form of Cantonese cuisine prepared, traditionally to be served in small steamer
baskets or on small plates. Here, fully cooked and ready to be served are catered around the
restaurant for customers to choose their orders while seated at their tables. Due to its innovative

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way of serving, and mostly because of its popularity increasing gradually, it expanded in 2014,
with the opening of a branch at SM Megamall in Philippines. Dimsum quickly become an
intriguing adventure worldwide,and the fascination of doing something like this is always
something Filipinos love to do.The market entry of such a wholesale name was through opening
a branch of it in the SM Megamall since then it has increased its popularity amongst Filipinos.

Lipton: Unilevers very own brand, Lipton, has maintained the lead in tea value sales with a
whooping market share of 32% in 2015. Lipton is one of the worlds greatest refreshment brands.
It is the worlds best selling tea brand ,and It has since been established for 126 years as off
now.It is now proudly available in more than 100 countries .With time ,comes the need for
different taste, Lipton now offers a different variety of tea-based drinks-from leaf tea to tea bags.
Liptons market entry to Philippines through exporting was a blessing for the tea lovers,as before
they had joined, there werent many of the charts brands. With Unilever leading by a mile, its
product portfolio spans a variety of tea products such as instant tea, fruit, and herbal tea has been
a USP for them in the Philippine market.

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Part 6: Key Challenges

KK tea is likely to go through an abundance of risk factors for doing business in the overseas.
6.1 Demand for coffee:
According to recent statistics, Philippines per capita consumption of tea is only 0.014kg and
coffee is 1.2kg, which makes it a substantial risk.
6.2 High market share of Lipton:
Lipton has a high market share of 32% in the Philippines tea market. So, a new brand like KK
might take an abundance of time to make customers switch from this ever reliable tea
manufacturer.
6.3 Political risk and economic instability:
The Philippines has experienced political and economical instability. Such as civil unrest and
terrorism, this could disrupt their whole business. Low Economic growth means that people may
not spend on buying KK tea, meaning they are able to conduct business the way that had in
mind.
6.4 Fluctuating exchange rate:
Exchange rate of Peso, the Philippine currency has been fluctuating a lot for the last 5-10 years.
It could be very difficult to keep up with the rates on a daily basis for KK tea.

Conclusion
Thus, entering Philippines may prove to be a risky bet for KK tea in terms of political and legal
risk factors as well as the overwhelming demand for coffee that exists in the market. However,
entering the Philippines market after the elections may lower any political risks involved. Many
other Asian food and beverage businesses have located in Philippines in recent years and are
enjoying success. Given, that Philippine consumers are now more health conscious and require
chilled drinks due to the warm climate, KK tea may find a reasonable market for their organic tea
products.

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Bangladesh Economic News. (2009, October 31). KK organic tea to hit market. Retrieved March
16th, 2016, from https://bangladesheconomy.wordpress.com/2009/10/28/kk-organic-teato-hit-market-nov-1/
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from

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Ethnic

Groups

of

the

Philippines.

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19th,

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from

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