Abstract:
Ceylon cinnamon (Cinnamomum zeylanicum) is recognized as the world’s largest pure cinnamon
exporter, holding 90% of the global market share. Sri Lankan small and medium-scale cinnamon
exporters are struggling to enhance their market position amidst increasing global competition
and changing customer demands. The industry must sustain itself by developing value-added
products and implementing innovative marketing strategies. This study examined the current
status of exporting value-added products and conducted a SWOT analysis of existing marketing
strategies to propose improvement for cinnamon value addition. Primary data were collected
through a filed survey using a pretested semi-structured questionnaire with purposively selected
20 sample units (small- and medium-scale cinnamon exporters) from Galle and Matara districts
in Sri Lanka. Data were analysed using descriptive and inferential statistics. Results revealed that
exporters are producing medicinal products (80%), bark oil (75%) and leaf oil (75%) as their key
value additions. They use competitor-based pricing (90%) with distribution channels such as
direct exporting (78%), distributors (35%), online marketplaces (17%), and government trade
missions (21%). Promotional efforts focus on advertising (31%), digital marketing (84%), and
social media marketing (64%). The one-sample Wilcoxon signed-rank test showed that
perceptions of product quality (W = 180, p < 0.001), pricing strategies (W = 175, p < 0.01) and
promotional effectiveness (W = 170, p < 0.01) were significantly affect profitability. Key
significant strengths identified were product quality (mean = 3.9), efficient international
distribution (mean = 4.1) and competitive pricing (mean = 4.05). Distribution challenges (mean
= 3.62) and branding limitations (mean = 3.76) were noted as weaknesses. Further, rising global
demand (mean = 3.81) and growth of online sales (mean = 4.38) are key opportunities.
Regulatory changes (mean = 3.71) and competition from other countries (mean = 3.67) pose
significant risks. The study concludes that to grow sustainably amid rising global demand and
competition, the Ceylon cinnamon industry needs to enhance branding, distribution, and
marketing strategies. It is suggested that awareness and knowledge dissemination programs,
combined with adequate motivation, be promoted to encourage effective marketing trends and
tactics.
