DEVELOPMENT OF A PROFITABLE BUSINESS MODEL TO PROMOTE CONSULTANCY ON FOOD SAFETY THROUGH EVALUATING CURRENT PRACTICES IN TEA INDUSTRY

Abstract

The local tea industry provides opportunities for earning foreign currencies and livelihood for the majority of estate labourers. A study was carried out to develop a profitable business model to promote consultancy on the food safety in tea industry improving efficiency, hygienic standards and awareness. The objectives were to achieve a leap value through value innovation while breaking away from existing competition, to evaluate the current level of understanding and practices of food safety applications in order to ensure food safety awareness among factory owners, managers, factory officers and workforce. Thirty (30) tea factories were randomly selected and persuaded for analyses. Open ended discussions held were focused on buyer requirements and prices for value added consulting. The Blue Ocean Strategy was used to achieve a leap value through value innovation without entering in to existing competition. The market boundaries were reconstructed using value curve development through strategic canvas and marketed with selected samples. Out of 30 factories selected for the study, the majority responded positively; 18 volunteered to meet and Gaps were conducted for 9. Five of them rescheduled the opportunity to a later date, while the rest refused. The Gap analysis was carried out using written parameters against GMP while photographing total plant for specific activities. Data was analyzed comparing generic conditions verses current practices while offering numerical values for specific areas of GMP requirements and their importance. The traditional marketing approach failed mainly due to lack of reputation rather than the lack of expertise. New strategic approach created opportunities to enter the market with 55% success rate for conducted Gaps. Factory owners tend to buy with a leap in value. Consultancy can be promoted as a customary package. Middle level pricing and long-term system maintenance will open up mass market and long-term cash inflow. It supports developing a comprehensive food safety management system by enhancing available quality tools or food safety systems and integrating relevant trainings into system development.

Key Words: Food Safety, Tea Industry, Consultancy

For full paper: fmscresearch@sjp.ac.lk