Mozart Chocolate Energy Drink

59
1 Preferred Marble&Granite Pvt.Ltd. INTERNSHIP REPORT “To Check Import Feasibility of Various Products in India from USA.” May-June, 2008 VIVEK TIWARI

description

Energy drinks market and its feasibility in india..contact me [email protected]

Transcript of Mozart Chocolate Energy Drink

Page 1: Mozart Chocolate Energy Drink

1

Preferred MarbleampGranite PvtLtd

INTERNSHIP REPORT

ldquoTo Check Import Feasibility of Various Products in India from USArdquo

May-June 2008

VIVEK TIWARI

PGDBM (IBampMARKETING)

BIIB PUNE

2

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this research thesis and project work I want to thank MrAnil Jain (CFO) and the company ldquoPreferred marble amp Granite Pvt Ltd Bangalore for giving me permission to commence this project in first instance to do the necessary research work and to use company data

I have furthermore to thank Mrs Ranjana for her stimulating support and guidance

I am deeply indebted to Mr Balaji Reddy amp Mr Kiran whose help stimulating suggestions and encouragement helped me in all the time of research for and documenting this report

I am highly obliged to my seniors in company Mr Joy Raj and MrSaroj for their help support interest and valuable hints

3

INDEX

Contents Page No

Introduction of company 5

A Mozart chocolate energy drinks 6-23

Research objective 7

Company amp product profile 7

Types of energy drink 8-9

Competitors 10

Market scenario 10-11

Market survey 14-18

SWOT analysis 19

Import obligations 20-21

Conclusion 22

Bibliography 23-24

B Luster Products 25-33

Research objective 26

Company profile 26

Product profile 27-28

Competitors 29

Market scenario 30

Import obligation 31-32

Conclusion 32

Bibliography 33

4

C Zurion multivitamin 34

Objective of research 34

Company profile 34

Product profile 34-35

Competitors 36-37

Market scenario 37-38

Import obligation 38

Conclusion 38

Bibliography 38

DCC Pollen products 39

Research objective 39

Company profile 39

Product profile 40

Competitors 41-42

Market scenario 42-43

Analysis and findings 43-44

Conclusion 44

Bibliography 45

5

COMPANY INTRODUCTION

Established ten years ago Preferred Marble amp Granite Pvt Ltd is one of the largest sources of Granite Marble and Natural Stone Companyrsquos keen passion is to grow and earn recognition has enabled it to create niche for itself in the natural stone industry including prefabricated granite counterparts black granite counterparts Its total commitment is towards quality and main aim is customer satisfaction Company boasts of having a huge collection of natural stones under one roof Over the years quality has enabled them to make a mark for themselves in the natural stone domain

Preferred Marble amp Granite have always laid due importance to quality and have never compromised on it whatever may have been the condition Strict quality measure leaves no room for any discrepancy in the product

Preferred Marble amp Granite is a branch office of Lotus Exim International Inc that has its head office in New Jersey USA Mr Rajendra Kankariya is the chairman of the company who has always strived for quality and company which was trading for single container for about four months in starting today markets ten containers a week Company has shown extraordinary growth in the industry without compromising on quality 90 of customers are repeat customers of the company

CORPORATE HEADQUARTERS

LOTUS EXIM INTERNATIONAL INC

16 Leliarts Lane

Elmwood Park NJ 07407 USA

P 201-475-2810

Website- wwwlotuseximcom

Indian Office

Preferred Marble amp Granite Pvt Ltd

1043rd Cross 8th Main

3rd Block Kormangala

Bangalore 560034 P 080-41148501

Website- wwwpreferredmarbleandgranitecom

6

Mozart Energy Drink

Research objective

To examine the feasibility of import of Mozart chocolate energy drinks in India

COMPANY PROFILE

Mozart energy drink is registered in Salzburg Austria but the home operating office is in Europa Mississippi and San Antonio Texas in USA

Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance

CONTACT DETAILS

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 2: Mozart Chocolate Energy Drink

2

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this research thesis and project work I want to thank MrAnil Jain (CFO) and the company ldquoPreferred marble amp Granite Pvt Ltd Bangalore for giving me permission to commence this project in first instance to do the necessary research work and to use company data

I have furthermore to thank Mrs Ranjana for her stimulating support and guidance

I am deeply indebted to Mr Balaji Reddy amp Mr Kiran whose help stimulating suggestions and encouragement helped me in all the time of research for and documenting this report

I am highly obliged to my seniors in company Mr Joy Raj and MrSaroj for their help support interest and valuable hints

3

INDEX

Contents Page No

Introduction of company 5

A Mozart chocolate energy drinks 6-23

Research objective 7

Company amp product profile 7

Types of energy drink 8-9

Competitors 10

Market scenario 10-11

Market survey 14-18

SWOT analysis 19

Import obligations 20-21

Conclusion 22

Bibliography 23-24

B Luster Products 25-33

Research objective 26

Company profile 26

Product profile 27-28

Competitors 29

Market scenario 30

Import obligation 31-32

Conclusion 32

Bibliography 33

4

C Zurion multivitamin 34

Objective of research 34

Company profile 34

Product profile 34-35

Competitors 36-37

Market scenario 37-38

Import obligation 38

Conclusion 38

Bibliography 38

DCC Pollen products 39

Research objective 39

Company profile 39

Product profile 40

Competitors 41-42

Market scenario 42-43

Analysis and findings 43-44

Conclusion 44

Bibliography 45

5

COMPANY INTRODUCTION

Established ten years ago Preferred Marble amp Granite Pvt Ltd is one of the largest sources of Granite Marble and Natural Stone Companyrsquos keen passion is to grow and earn recognition has enabled it to create niche for itself in the natural stone industry including prefabricated granite counterparts black granite counterparts Its total commitment is towards quality and main aim is customer satisfaction Company boasts of having a huge collection of natural stones under one roof Over the years quality has enabled them to make a mark for themselves in the natural stone domain

Preferred Marble amp Granite have always laid due importance to quality and have never compromised on it whatever may have been the condition Strict quality measure leaves no room for any discrepancy in the product

Preferred Marble amp Granite is a branch office of Lotus Exim International Inc that has its head office in New Jersey USA Mr Rajendra Kankariya is the chairman of the company who has always strived for quality and company which was trading for single container for about four months in starting today markets ten containers a week Company has shown extraordinary growth in the industry without compromising on quality 90 of customers are repeat customers of the company

CORPORATE HEADQUARTERS

LOTUS EXIM INTERNATIONAL INC

16 Leliarts Lane

Elmwood Park NJ 07407 USA

P 201-475-2810

Website- wwwlotuseximcom

Indian Office

Preferred Marble amp Granite Pvt Ltd

1043rd Cross 8th Main

3rd Block Kormangala

Bangalore 560034 P 080-41148501

Website- wwwpreferredmarbleandgranitecom

6

Mozart Energy Drink

Research objective

To examine the feasibility of import of Mozart chocolate energy drinks in India

COMPANY PROFILE

Mozart energy drink is registered in Salzburg Austria but the home operating office is in Europa Mississippi and San Antonio Texas in USA

Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance

CONTACT DETAILS

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 3: Mozart Chocolate Energy Drink

3

INDEX

Contents Page No

Introduction of company 5

A Mozart chocolate energy drinks 6-23

Research objective 7

Company amp product profile 7

Types of energy drink 8-9

Competitors 10

Market scenario 10-11

Market survey 14-18

SWOT analysis 19

Import obligations 20-21

Conclusion 22

Bibliography 23-24

B Luster Products 25-33

Research objective 26

Company profile 26

Product profile 27-28

Competitors 29

Market scenario 30

Import obligation 31-32

Conclusion 32

Bibliography 33

4

C Zurion multivitamin 34

Objective of research 34

Company profile 34

Product profile 34-35

Competitors 36-37

Market scenario 37-38

Import obligation 38

Conclusion 38

Bibliography 38

DCC Pollen products 39

Research objective 39

Company profile 39

Product profile 40

Competitors 41-42

Market scenario 42-43

Analysis and findings 43-44

Conclusion 44

Bibliography 45

5

COMPANY INTRODUCTION

Established ten years ago Preferred Marble amp Granite Pvt Ltd is one of the largest sources of Granite Marble and Natural Stone Companyrsquos keen passion is to grow and earn recognition has enabled it to create niche for itself in the natural stone industry including prefabricated granite counterparts black granite counterparts Its total commitment is towards quality and main aim is customer satisfaction Company boasts of having a huge collection of natural stones under one roof Over the years quality has enabled them to make a mark for themselves in the natural stone domain

Preferred Marble amp Granite have always laid due importance to quality and have never compromised on it whatever may have been the condition Strict quality measure leaves no room for any discrepancy in the product

Preferred Marble amp Granite is a branch office of Lotus Exim International Inc that has its head office in New Jersey USA Mr Rajendra Kankariya is the chairman of the company who has always strived for quality and company which was trading for single container for about four months in starting today markets ten containers a week Company has shown extraordinary growth in the industry without compromising on quality 90 of customers are repeat customers of the company

CORPORATE HEADQUARTERS

LOTUS EXIM INTERNATIONAL INC

16 Leliarts Lane

Elmwood Park NJ 07407 USA

P 201-475-2810

Website- wwwlotuseximcom

Indian Office

Preferred Marble amp Granite Pvt Ltd

1043rd Cross 8th Main

3rd Block Kormangala

Bangalore 560034 P 080-41148501

Website- wwwpreferredmarbleandgranitecom

6

Mozart Energy Drink

Research objective

To examine the feasibility of import of Mozart chocolate energy drinks in India

COMPANY PROFILE

Mozart energy drink is registered in Salzburg Austria but the home operating office is in Europa Mississippi and San Antonio Texas in USA

Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance

CONTACT DETAILS

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 4: Mozart Chocolate Energy Drink

4

C Zurion multivitamin 34

Objective of research 34

Company profile 34

Product profile 34-35

Competitors 36-37

Market scenario 37-38

Import obligation 38

Conclusion 38

Bibliography 38

DCC Pollen products 39

Research objective 39

Company profile 39

Product profile 40

Competitors 41-42

Market scenario 42-43

Analysis and findings 43-44

Conclusion 44

Bibliography 45

5

COMPANY INTRODUCTION

Established ten years ago Preferred Marble amp Granite Pvt Ltd is one of the largest sources of Granite Marble and Natural Stone Companyrsquos keen passion is to grow and earn recognition has enabled it to create niche for itself in the natural stone industry including prefabricated granite counterparts black granite counterparts Its total commitment is towards quality and main aim is customer satisfaction Company boasts of having a huge collection of natural stones under one roof Over the years quality has enabled them to make a mark for themselves in the natural stone domain

Preferred Marble amp Granite have always laid due importance to quality and have never compromised on it whatever may have been the condition Strict quality measure leaves no room for any discrepancy in the product

Preferred Marble amp Granite is a branch office of Lotus Exim International Inc that has its head office in New Jersey USA Mr Rajendra Kankariya is the chairman of the company who has always strived for quality and company which was trading for single container for about four months in starting today markets ten containers a week Company has shown extraordinary growth in the industry without compromising on quality 90 of customers are repeat customers of the company

CORPORATE HEADQUARTERS

LOTUS EXIM INTERNATIONAL INC

16 Leliarts Lane

Elmwood Park NJ 07407 USA

P 201-475-2810

Website- wwwlotuseximcom

Indian Office

Preferred Marble amp Granite Pvt Ltd

1043rd Cross 8th Main

3rd Block Kormangala

Bangalore 560034 P 080-41148501

Website- wwwpreferredmarbleandgranitecom

6

Mozart Energy Drink

Research objective

To examine the feasibility of import of Mozart chocolate energy drinks in India

COMPANY PROFILE

Mozart energy drink is registered in Salzburg Austria but the home operating office is in Europa Mississippi and San Antonio Texas in USA

Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance

CONTACT DETAILS

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 5: Mozart Chocolate Energy Drink

5

COMPANY INTRODUCTION

Established ten years ago Preferred Marble amp Granite Pvt Ltd is one of the largest sources of Granite Marble and Natural Stone Companyrsquos keen passion is to grow and earn recognition has enabled it to create niche for itself in the natural stone industry including prefabricated granite counterparts black granite counterparts Its total commitment is towards quality and main aim is customer satisfaction Company boasts of having a huge collection of natural stones under one roof Over the years quality has enabled them to make a mark for themselves in the natural stone domain

Preferred Marble amp Granite have always laid due importance to quality and have never compromised on it whatever may have been the condition Strict quality measure leaves no room for any discrepancy in the product

Preferred Marble amp Granite is a branch office of Lotus Exim International Inc that has its head office in New Jersey USA Mr Rajendra Kankariya is the chairman of the company who has always strived for quality and company which was trading for single container for about four months in starting today markets ten containers a week Company has shown extraordinary growth in the industry without compromising on quality 90 of customers are repeat customers of the company

CORPORATE HEADQUARTERS

LOTUS EXIM INTERNATIONAL INC

16 Leliarts Lane

Elmwood Park NJ 07407 USA

P 201-475-2810

Website- wwwlotuseximcom

Indian Office

Preferred Marble amp Granite Pvt Ltd

1043rd Cross 8th Main

3rd Block Kormangala

Bangalore 560034 P 080-41148501

Website- wwwpreferredmarbleandgranitecom

6

Mozart Energy Drink

Research objective

To examine the feasibility of import of Mozart chocolate energy drinks in India

COMPANY PROFILE

Mozart energy drink is registered in Salzburg Austria but the home operating office is in Europa Mississippi and San Antonio Texas in USA

Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance

CONTACT DETAILS

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 6: Mozart Chocolate Energy Drink

6

Mozart Energy Drink

Research objective

To examine the feasibility of import of Mozart chocolate energy drinks in India

COMPANY PROFILE

Mozart energy drink is registered in Salzburg Austria but the home operating office is in Europa Mississippi and San Antonio Texas in USA

Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance

CONTACT DETAILS

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 7: Mozart Chocolate Energy Drink

7

Mozart Sales Staff

Phone 5049146149 Fax 5096965431

Email 888MozartEnergycom Website wwwmozartenergycom

PRODUCT PROFILE

INRODUCTION-

Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort

The Worlds First Chocolate Energy Drink what our product have as its unique selling proposition (USP) CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation

MOZART has antioxidant property that not only helps the body in killing the free radicals but also speeds up the recovery process of the body after any damage through illness or otherwise

NURITIONAL VALUE

CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation These flavonoids can have positive cardiovascular effects which provide a better quality of life Chocolate when used as part of a total weight-loss program can give you a special edge quelling your carbohydrate cravings while helping to reshape your body

TAURINE enhances the efficiency of the body functions Promotes and helps maintain general well-being provides energy boost after exertion and promotes rapid recovery

VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy needed for healthy cellular growth

GINSENG fights fatigue stress and increases endurance

GINKGO is a strong antioxidant that helps promote mental concentration

ENERGY BLEND provides the needed energy to get your day off to a great start

IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart

TYPES OF ENERGY DRINK

Energy drinks can be classified on the basis of the ingredients on which they are based Check out the main types of energy drinks found in the market today

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 8: Mozart Chocolate Energy Drink

8

Caffeine-based Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people Usually the amount of caffeine in an energy drink is somewhere between 100-200 mg Some of the caffeine-based drinks are Redbull Monster and Rockstar

Taurine-based Taurine is the active ingredient in the product called OHM which is majorly used in energy drinks Taurine is that it not only maintains the energy level in the body but also helps the body cope up with stress

Guarana-based Guarana is an ingredient found in plants that grow in South America It mainly helps in increasing the level of awareness as well as the energy levels of the body It can be compared to quite an extent with caffeine

Vitamin B-based Considered to be amongst the best energy drinks in the market the ones based on Vitamin Bs are believed to help in kick-starting the body into action

Ginseng-based Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks The potential benefits of Ginseng are increase in energy levels and alleviation of stress

Ginkgo Biloba-based Ginkgo Biloba is another popular herb that is receiving interest from health drink makers There are a number of benefits according from it namely improvement of memory concentration levels and blood circulation along with regulation of stress levels

Antioxidants-based Antioxidants are being used for making many energy drinks these days They not only help the body in killing the free radicals but also speed up the recovery process of the body after any damage through illness or otherwise

OUR PRODUCT

Our product ldquomozart chocolate energy drinkrdquo comes under the antioxidant-based energy drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 9: Mozart Chocolate Energy Drink

9

Competitors

Red bull-Rs 75250ml

Effect ndashRs 75250ml

PepsiCorsquos Gatorade ndashRs-25200ml

Gujrat co-operativersquos Stamina ndashRs 12200ml

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 10: Mozart Chocolate Energy Drink

10

Godrejrsquos soya milk-Rs 13200ml

Coca colarsquos Shock ndashRs 30200mlLIFT(going to be launched)

Amul kool-Rs 20200ml

United spiritrsquos- Vladivar vodka based

POWER HOUSE ENERGY DRINK

NHSPL are the importers and distributors of Red Bull for India

RED BULL HAS ALMOST 70 OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA

Very promising segment particularly with the organized retail shops growing in India Have a 50-80 growth every year

MARKET SCENARIO

The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water This segment has been driven by grassroots promotions a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers

Energy drinks are consumed to vitalize body and mind It can be had directly or mixed with alcohol

Energy drink market is growing with good pace of 50 annually According to market research firm Datamonitor Plc the energy drinks market in India is

estimated at Rs4992 crore and is still at a nascent stage

The energy drinks market in India grew at 50 a year between 2002 and 2007

The energy drinks market is expected to reach Rs1100 crore by 2010(IN INDIA)

Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai Chennai and Delhi) in 8 months

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 11: Mozart Chocolate Energy Drink

11

Good news is that till now in ldquochocolate energy drinkrdquo segment no well known firm yet came in the market in India

Notably in China and India where malt drinks have long been drunk as a substitute for milk Now strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks Hope Lee of market analysts Euromonitor reports on the latest trends

Mozart chocolate energy drink is a luxury energy drink

The drink will be sold at retail joints pubs and clubs

Energy drink market (in $ sales)

Worldrsquos top 15 energy drink brands with market share (sales in USD)

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 12: Mozart Chocolate Energy Drink

12

CURRENT MARKET

Soft Drink -39

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 13: Mozart Chocolate Energy Drink

13

Domestic Beer -12

Energy Drinks +53

Bottled Water +25

RTD Tea +23

Sports Drinks +19

Energy drinks consumption is at 20-22 million cans in India IN 2007

Energy drink market is amazingly growing and everyone knows it With that everyone would like to try it out for a change because they want to earn more profits in the business easily The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living

GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY

Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment(MARCH 2008)

The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles rising disposable incomes of the growing middle class and increasing urbanization

In addition to this increasing numbers of foreign tourists create a demand for familiar foods in India Five-star hotels have access to duty free quota which can be used to source imported food and beverages

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 14: Mozart Chocolate Energy Drink

14

TARGET MARKET SEGMENT

THE INITIAL TARGET MARKET SEGMENT WOULD BE

METROCITIES (DELHIBOMBAYKOLKATACHENNAIBANGALORE etc)

TARGET GROUP-

YOUNG WORKING CLASS (BELOW AGE 35) TEENrsquoS AND YOUTHS WORKING AND NON WORKING WOMENS GAMERS EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD

The design and packaging should also be according to target customers

MARKET SURVEY OF ENERGY DRINKS-

A primary data was collected with the framed questionnaire based on customer preferences in energy drinks The responses provided are very positive and market seems to be very price sensitive The pricing of the product should be done in keeping the target customer group and their buying capacity

Age group-a) 15-25years and b) 25-35years

a) Generally students and young working generation

b) Generally working youths and professionals

1 What kind of drink do you have often

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 15: Mozart Chocolate Energy Drink

15

2 Have you ever tried any energy drink

3 Which energy drink do you have often

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 16: Mozart Chocolate Energy Drink

16

4 How frequently you have energy drink

5 What do you think of energy drink with chocolate flavor

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 17: Mozart Chocolate Energy Drink

17

6 At what price chocolate energy drink should be available for 250ml

Conclusion of survey-

The market survey of customers reveals that in India majority drinking habit is of

1 Fruit juices

2 Soft drinks

Energy drinks yet to gain a pace among the customers The red bull brand is leading among energy drinkers but frequency of intake is very poor

Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product Major concern will be the price of the product The price of the product should be in between Rs60-75 as its nearest rival red bull is pricing at Rs75can

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 18: Mozart Chocolate Energy Drink

18

MOZART ENEGY DRINKrsquoS ldquoSWOTrdquo ANALYSIS

Strength

-Worldrsquos first chocolate energy drink

-Antioxidant in nature

-Chocolate taste attracts

-Luxury energy drink and exclusive in its market segment

Weakness

-Chocolate taste may not attract youths

-Very high price of product after import

-Very niche market segment

-Not very prominent brand so may cost very high in promotions

Opportunities

-Market growth rate is very fast 50-80 annually

-As such no big rival in chocolate energy drink market

- The energy drinks market is expected to reach Rs1 100 crore by 2010 so overall a great market growth

-Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks

Threats

-New local entrants may compete on taste as well as price

-Big players in industry may take over on promotions as well as distribution

-Local and Indianized energy drinks may give stiff competition

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 19: Mozart Chocolate Energy Drink

19

IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION

IMPORT OBLIGATIONS ndashThe energy drink having chocolate base can be imported freely without any import obligation under Indiarsquos foreign trade policy 2004 -2009

So as it is no import obligation

EXCISE DUTY CALCULATION-

UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages spirits and vinegars (Under section IV)

WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009

H S CODE -

2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK

22029000 will be sub code it include chocolate and brown products

LANDED COST FOR 40 FEET CONTAINER-

DUTY TILL MARCH 2008

Customs basic duty-30Add Duty (CDV)-0Spl Duty (addCDV)-4Excise cess -0Customs cess-3

All duty will be in terms of

So finally for 2888 cases (69312 can) the price comes out to be

Rs22 87296 and the customs duty on that value will be Rs83480265

The landed cost will be Rs3122098 for 69312 canes (40 feet container)

The costcan =Rs4505 (excluding shipping cost)

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 20: Mozart Chocolate Energy Drink

20

If we consider shipping cost as US$3000container (40feet) then total cost can will be

=Rs 468can in India

THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can

The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time

OVERALL OBJECTIVE ANALYSIS AND FINDINGS-

The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks

The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market

The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition

Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities

In India due to following reasons people are preferring energy drinks-

1 Health consciousness2 Hectic lifestyle

3 Instant energy requirement during long working hours

4 Increased spending capacity

MOZARTrsquoS PRICE LIST WITH SHIPPING COST

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 21: Mozart Chocolate Energy Drink

21

Customs

HS code for custom purposes is 22029000

Ground Shipment

Packed Per Pallet

144 cases

Case ndash24 84 oz cans

Truckload 20 pallets (2880 cases)

Sea Shipment

Packed 40 ft Container 2888 Cases

Case ndash24 84 oz cans (250 ml)

Price

USD1888

FOB Factory WI USA

Delivery Time 6 Weeks

Terms

Terms 50 down with order and 50 due before put on TruckVessel

CONCLUSION-

ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment

The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product

If we can sell this product at around Rs60 to Rs 75can it can get good response in the market

The points of major concerned will be-

bull A market with forecasted growth exceeding 50 over the next few years

bull Retail and foodservice support growing

bull Dominant brand still in place but many well supported and independent Challengers competing well

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 22: Mozart Chocolate Energy Drink

22

bull Future growth in the consumer market includes younger buyers (gt14 years)

bull Taste is an important consideration for buyersbull Health trend entering this segment fruit juices and unsweetened healthy additives may play significant role in future

References -1 wwwmozartenergydrinkcom

2 wwwenergydrinkscom

3 wwwwikipediacom

4 wwwamazoncom

5 wwwfoodindustryindiacom

6 wwwbusinessweekcom

7 wwwBevNetCOM

8 wwwicontactcom

9 wwwjustdrinkscom

10 wwwrediffnewscom

11 wwwx-ratescom

12 wwwbalance32000storesyahoonet

13 wwwcoinmillcom

14 wwwenergyfiendcom

15 wwwbeveragedailycom

16 wwwinfodrivecom

17 wwwbharatbookcom

18 wwwbuvoicecom

19 wwwalibabacom

20 wwwfoodandbeveragescom

21 wwwdatamonitorcom

22 wwwfnBnewscom

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 23: Mozart Chocolate Energy Drink

23

23 wwwglobalsuccesscom

24 wwwfactexpertcom

25 wwwmarketingprofcom

26 wwwmetromintcom

27 wwwpepsicocom

28 wwwcokecom

29 wwwdrinkhintcom

30 wwwgooglecom

31 Email received from Mozart energy drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 24: Mozart Chocolate Energy Drink

24

LUSTER PRODUCTS

Luster hair care products

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 25: Mozart Chocolate Energy Drink

25

Objective of Research

To examine the feasibility of Import of ldquoLuster hair care productsrdquo to India

Company profile

Luster products inc is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide Luster Products brands include the Pink Brand products for women S-Curl products for men PCJ Pretty-n-Silky amp Smooth Roots children products YOU unisex products and Designer Touch products for stylists The company was founded by Mr Luster as Luster Products Inc in 1957 Inspired by the support of his family Mr Luster guided the company from a modest storefront operation into a multi-million dollar worldwide enterprise In spite of his huge success Fred Luster Sr remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans

Today Luster Products one of the most respected African-American businesses in America is under the leadership of Jory Luster president Fred Luster II vice president of Research and Development and Sonja Luster-Munis vice president of Systems Administration

The companys main facility -- corporate offices plant and warehouse -- is situated on 17 acres in Chicagos Stockyard Industrial Park An aerosol production plant is located in suburban Blue Island Illinois The company also has branch offices in London and South Africa

Established in 1989 by the late Fred Luster Sr as the philanthropic arm of Luster Products Inc the Black Heritage Foundation is a non-profit charitable foundation whose primary purpose is to support community-based organizations that promote positive values community service and asp rational role models for the African-American community

Awards of luster in 2003

National Exemplary Exporter of the Year Local Exemplary Exporter of the Year

Regional Exemplary Exporter of the Year

Minority Business Exporter of the Year

Product of the Year 2002 (ARTEFFEX)

Contact

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 26: Mozart Chocolate Energy Drink

26

1104 w 43rd street

Chicago IL 60609-3342 US

Phone -773-579-1800

FAX-773-579-1912

Website-wwwlusterproductscom

PRODUCT PROFILE

The products of luster are divided into two categories

1 Consumer products 2 Salon products

Consumer products are

a) New Renutrients Revita-shine sheen spray

b) Luster Short Looks Color laxer colorrelaxerconditioner 3in1 formulaec) You Smooth Gel-lightweight gel formulated to provide shine and loose haird) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment

to condition and moisturize your hair and scalpe) PCJ Wet-n-EZ detangling spray contains protein and leave ndashin conditioners that help stop

breakage and tames the tangle hairsink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split

Salon Products

a) Designer touch Rs145kit One Touch-Up Application The only relaxer kit created to touch-up new growth Patented triple action conditioners for silky smooth hair

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 27: Mozart Chocolate Energy Drink

27

Compatible with all other relaxers No lye Lusters Pink is the only brand to bring you Pink Protection Kit Contents Pink No-Lye Conditioning Relaxer Pink Color Mix Activator Pink Color Alarm Conditioning amp Neutralizing Shampoo Pink Conditioner and Pink Oil Moisturizer Lotion

b) Straight shade Rs130170gm Results in straight with shine and natural flowing softness Wheat Protein and Pantheon protect hair against heat and styling damage You Straight seals in moisture to keep hair healthier until the next application

c) Straight fix Revives dull dry hair with natural oils that smooth and seal the hairs cuticle layers This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup Leaves hair with a fabulous gloss Great on wet and dry hair

d) ArtEffex-HairstraightensRs430200ml

A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types

Containing a wide range of naturersquos extract and botanical ingredients providing a complete choice to suit ones

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 28: Mozart Chocolate Energy Drink

28

individual hair care needs Art-Effex the complete hair care regime to suit your chicconfident or bold style

The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market

Competitors

1 Shahnaz Husainrsquos ndashshagrow herbal shampoo and conditioner Rs670200mlThe contents are herbal such as Brahmi bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp

2 HULrsquos DOVE Rs210355ml the leading FMCG firm HUL have introduced ldquodoverdquo in hair care and shampoo segment Except dove HUL has A) Clinic plusB) Clinic all clear shampooC) LakmeD) Ponds etcAnd HUL has +70 market shares in skin care hair care and cosmetics market segment

3 Daburrsquos In hair care and shampoo segment Dabur has market share of about +10 and

growing at 13annum4 Maricorsquos In coconut oil products and coconut based shampoo and also in hair styling Gel

Marico is doing a healthy business and its growth is +20 in its market segment5 Himalayarsquos In herbal and ayurvedic product segment Himalaya has its stronghold and

is also showing a remarkable growth

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 29: Mozart Chocolate Energy Drink

29

PampGPantene Herbal EssenceHead amp Shoulders Infusium 23Aussie ClairolUnileverDove SuaveThermaSilk SunsilkAlberto CulverAlberto VO5 Just for MeNexxus Soft amp BeautifulTRESemme TCBConsort MotionsLrsquoOrealVive RedkenMatrix KerastaseLrsquoOreal Kids Garnier Fructis

Market scenario

At Rs424 billion (US$957 million) Indiarsquos hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil Russia and China too But with between a third and a half of the entire worldrsquos hair and a fast-emerging economy that saw real GDP growth of 8 in 2006 it is little wonder India is drawing the attention of international hair care giants such as Procter amp Gamble

Local consumers are also attracted to traditional natural and Ayurvedic hair care and this too gives domestic players an edge in the Indian market Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels including Sunsilk Head amp Shoulders and Lux Seven of the top ten players in Indiarsquos hair care market are home-grown and account for 42 of total value sales There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18 suggesting consumers are less drawn to the prestige brands of the West in hair care

The Indian hair care market is forecast to expand by almost 40 between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period

The total Hair Care market reached about $12 billion(Market growth increase + 3 from 2005)1048707 Hair Care Category consists of1048707 Salon Hair Care1048707 Shampoo1048707 Conditioners1048707 Styling Agents

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 30: Mozart Chocolate Energy Drink

30

1048707 Colorants1048707 2 in 1 product

1048707 Perms amp Relaxants

The Indian market will continue to grow due to the rising incomes of the ever larger number of middle-class and urban consumers But despite the high concentration of wealth in urban areas the rural market where three quarters of Indian live is important For example the rural market for shampoo is three times the size of the urban Companies report that rural demand is rising fast According to the Economist sales of soap by Unilever are growing twice as fast in the countryside as in the cities Benetton says that 75 of its expansion will be in small towns

There are huge opportunities for cosmetics companies The low market penetration of many personal care products leaves room for growth Current consumption of many products is well below that of more developed countries in Asia For example only 4 of Indian women use home hair dyes compared with 42 of their Japanese counterparts

The oil industry is about Rs 1800 crore in value of which value-added oil constitutes 50

Import Obligations

The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009

According to Indian customs duty and import duty of ldquoPREPARATIONS FOR USE ON THE HAIRrdquo under chapter 33 of customs duty (subsection IV)

HS code 3305 the duty calculation is as follows

Basic duty- 10

Add CVD- 14

SplCVD- 4

Excise cess- 3

Customs cess-3

All in

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 31: Mozart Chocolate Energy Drink

31

Objective analysis amp findings

The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms

The products of luster hair care are good but itrsquos difficult to find out the segment of its products in India The content of luster products is also such that they will suit to African origin people

The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL PampG and LrsquoOreal Marico and Dabur have very stronghold in their respective consumer segments and have strong market share

The growth of Indian cosmetics and hair care market is slow but steady 4-6annum (During 2006-2007)

The major growth of hair care products are expected from Rural market and low income segment so the target market should be lower income segment of Indian population which constitute of about +70 consumer market

Conclusion

The products of ldquoLUSTER HAIR CARErdquo have good brand recognition in US and American continent and company has products for all range of consumer and market segment

The major strength of LUSTER PRODUCTS is ldquoBRAND RECOGNITIONrdquo in their customer segment with quality and exclusiveness to its target market The competitive pricing in their market segment and product benefits are the other factors of LUSTERrsquos products

The major discouraging statement about ldquoLUSTER PRODUTSrdquo is their focus on ldquoAFRICAN HAIRrdquo pattern and the products may not click to Indians as the hair patterns are very different and also the climate of India

The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA so it may be a tough task to enter in Indian market with such a different product

The deciding factors of market success would be ndash

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 32: Mozart Chocolate Energy Drink

32

A) The market segment and target marketB) The distribution channels C) The buying pattern D) Productrsquos offerings and suitability to consumers

References

1 wwwlusterproductscom 2 wwwbharatbookcom 3 wwweconomictimesindiatimescom 4 wwwgoliathecnextcom 5 wwwdiagonalreportscom 6 wwwin-cosmeticscom 7 wwwthehindubusinesslinecom 8 wwwreportlinkercom 9 wwwhaircoin 10 wwwinreuterscom 11 wwwindiainfolinecom 12 wwwhimalayahealthcarecom 13 wwwzoocosmeticscom 14 wwwinfodriveindiacom 15 wwwprofessionalbeauty-expocom 16 wwwall-bizzinfocom 17 wwwamwaycom

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 33: Mozart Chocolate Energy Drink

33

Objective of Research

To examine the feasibility of ldquoZurionrdquoa multivitamin product to Import in india

COMPANY PROFILE

Health products corporation was established in 1973 in New YorkUSA

Mr Joseph Lewin is president of the companyCustomer base includes the internationaldistributors drug and pharmaceutical wholesalers importers supermarkets mail order companies and home shopping networks These marketers are based in the United States Canada South America Asia Africa the Middle East and Europe

Contact details

HEALTH PRODUCTS CORPORATION1060 Nepperhan Ave

Yonkers New York 10703-1432USA

Telephone (914) 423-2900 Fax (914) 963-6001

PRODUCT PROFILE MULTI VITAMIN- ZURION 100

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 34: Mozart Chocolate Energy Drink

34

PRODUCT Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional

support that body needs Zurion contains the antioxidant group of vitamins

Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet

PRODUCT BENEFITSCOMPETITIVE EDGE

Zurionreg helps boost the immune system to protect the body from illness and disease

Zurionreg provides Vitamin A which helps the immune system and is important for the skin

respiratory system and the gastrointestinal system

Vitamin E is necessary for healthy muscles lungs liver and heart and is also an antioxidant

B Vitamins are essential for healthy nerves skin hair liver and mouth They are important

for good muscle tone B Vitamins are necessary for the metabolism of carbohydrates fats and

proteins and give us energy

Zurion contains Vitamin C an antioxidant that is required for tissue growth and repair and

helps to reduce the effects of stress protects against infection and cancer and increases the

absorption of iron

Zurion contains iron which is found in all of our cells Iron is used in the production of

hemoglobin and oxygenation of red blood cells Iron helps to reduce susceptibility to infection

Zurion provides Calcium which is vital for the formation of strong bones and teeth for

maintaining a regular heartbeat and for the health transmission of nerve impulses Calcium

helps to lower cholesterol and against cardiovascular disease

ACTIVE INGREDIENTS

ACDEKB6B12

Vitamins Thiamin

Riboflavin

Niacin amide

Folic Acid

Boron

Biotin

Pantothenic Acid

Calcium

Iron

Phosphorus

Vanadium

Iodine

Magnesium

Zinc

Copper

Potassium

Selenium

Chromium

Molybdenum

Chloride

Nickel

Tin

Silicon

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 35: Mozart Chocolate Energy Drink

35

COMPETITORS

Zurion 100 Rs1016100 tablets (Rs1016tablet)

Ciplarsquos ndashNeutrolin B capsule Rs5310 tablets (Rs53tablet)

Pfizerrsquos-Becosules Rs810 capsules (Rs080capsule)

Ranbaxyrsquos-Revital Rs15030capsules (Rs5capsule)

ZURION Vs REVITAL

Factors Zurion 100 Ranbaxyrsquos Revital Parent company Health products corporation since

1973 and basically deals in distribution of drugs at national and international level

Ranbaxy is a multi national company from India 1973 and is operating in 49 countries Global Sales at US$ 1619 Mn In generic drugs market Ranbaxy is among top 10 companies

Ingredients Vitamin A B-complex c and minerals with trace elements

Ginseng as base Revital has vitamin A B-complexCD and Eminerals and other trace elements

Market share No data available 77 to 84 in vitamins and minerals segment with 27 growth in market globally

Price Rs1016tablet Rs5tablet

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 36: Mozart Chocolate Energy Drink

36

Being a multinational and well established and reputed company in pharmaceutical industry Ranbaxy has capital as well as market share strength The distribution channel of Ranbaxy is also very strong

With 77-84 market share and low price in its market segment Revital has very strong and remarkable position

The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful Ranbaxy is famous for its high quality and low-cost generic drugs so competing with Ranbaxy will be a tough task

MARKET SCENARIO

Globally ranked fourth by volume and 13th in value the Indian pharmacy industry is a leading producer of high-quality low-cost generic drugs Its 14 share of the USD 57 billion world generic market is expected to increase to 50 by 2010

The overall global market of vitamins is $35billion and in India the market is of 62 cr (INR)

The vitamin market is growing at 9annum rate in India

India is gaining in importance as a manufacturer of pharmaceuticals Between 1996 and 2006 nominal sales of pharmaceuticals were up9 per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7 pa) Demand in India is growing markedly due to rising population figures the increasing number of old people and the development of incomes As a production location the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 37: Mozart Chocolate Energy Drink

37

Indiarsquos pharmaceutical industry currently comprises about 20000 licensed companies employing approx500 000 staff Besides many very small firms these also include internationally well-known companies such as Ranbaxy Cipla or Dr Reddyrsquos With sales of roughly EUR 1 bn Ranbaxy is currently the worldrsquos seventh largest generics manufacturer

In 2006 Indiarsquos pharma industry exported products worth EUR 3 bnup from only EUR 650 m in 1996which was due to the fact that demand for low-cost generic drugs is strongly on the rise above all in the US Europe and Japan At 22 export growth in 2006 was even twice as high as the global average and in Germany (roughly 11 each) Meanwhile Indiarsquos export ratio has reached 32 ndashabout double the figure registered ten years ago

For some time now India has exported more pharmaceutical products than it imports Over the last ten years the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn

Ranbaxy exports its products to 125 countries has subsidiaries in nearly 50 countries and production plants in more than 10 countries The US has become its most important sales market Sales to the US recently amounted to just fewer than 30 of Ranbaxyrsquos total sales while sales to Europe came to nearly 20Overall approx 80 of the manufacturerrsquos total sales are generated abroad

Target market segment

The target market segment for multivitamins would be

1 The working class of high income in cities and metro cities2 The working women and mothers in metro cities

IMPORT OBLIGATIONS

The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009

Under chapter 29 of Indian customs duty general exemptions section (VI) products of chemicals or allied industries import duty is as follows-

Basic duty of customs - 75Additional duty (CVD) - 14Excise Education cess- 3Customs education cess- 3Special additional duty- 4

(All in )

CONCLUSION

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 38: Mozart Chocolate Energy Drink

38

The company ldquoHealth Products Corporationrdquo New York USA is basically deals with the marketing and distribution of health products all over the world The company is not a well known one and the recognition of product is also a problemThe direct rival is Ranbaxyrsquos ldquoRevitalrdquo multivitamin having market share of more than 80 globally The key concern points will be ndash -the content of the Zurion is almost same except few advances in Revital-The strong hold establishment and distribution network of Ranbaxy -Indian pharma market is very price sensitive so high price of zurion is unfavorable-Target market segment is limited and substituting revital is great challenge and costly affair-Pharma market growth is somewhat is stagnant (8-9) at such stage launch of new product as a substitute of existing product is a great risk

REFRENCES1 wwwinmsncom 2 wwwsmartbriefcom 3 wwwindiabizclubcom 4 wwwindianexpresscom 5 wwwquackwatchcom 6 wwwinfodriveindiacom 7 wwwnppaindianicin 8 wwwyouqacom 9 wwwm2ccom 10 wwwdomainbcom

11 wwwfinancialexpresscom 12 wwwindiamarketscom 13 wwwrediffnewscom 14 wwwnaturetherapycom 15 wwwcontractpharmacom 16 wwwbechnacom 17 wwwhpc7com 18 wwwtribuneindiacom 19 wwwhammernutrionnet 20 wwwforbescom 21 wwwranbaxycom 22 wwwncbinlmnihgov 23 wwwbusinessreportsworldpresscom 24 wwwmimscom 25 wwwpharmaceutical-drugmanufacturercom 26 wwwyahooindiacom 27 wwwgooglecom 28 wwwemerckindiacom 29 wwwtimesofindiacom 30 wwwrmahqorg

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 39: Mozart Chocolate Energy Drink

39

CC POLLEN CO USA

Research objective

To examine the feasibility of import of CC Pollen CoProducts in India

COMPANY PROFILE

Bruce R Brown Carol M Brown and Royden Brown are principals of the company The cc pollen company basically deals in Bees beehive social structure and Super foods from the beehive - Bee Pollen Royal Jelly and Bee Propolis

Contact

CC Pollen Co

Phoenix Arizona USAHigh Desert Beehive Products1-800-875-0096 or 602-957-0096

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 40: Mozart Chocolate Energy Drink

40

PRODUCT PROFILE

1 Bee pollen products Bee Pollen comes in assortment of loose granules capsules and tablets Bee Pollen is only US Bee Pollen and it has been collected from diverse geographic areas

2 Bee propolis products Bee Propolis comes in capsules tablets and loose powder Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix Arizona The High Desert Propolis extract is of unparalleled quality The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids

3 Royal jelly products Royal Jelly comes in capsules tablets loose powder and liquid in honey Royal Jelly is lyophilized to preserve the integrity of the nutrients

4 Aller Bee-Gone Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen Aller Bee-Gone is the product that proved the value of natural alternative products to Sen

5 Total Enzyme Balance Enzymes are the workhorses of the body - nothing in the body would function without enzymes In a trade-off for shelf life and convenience our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods and enzymes are the first nutrients to degrade Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food

6 Skin Creams Royal Jelly skin cream is a great beauty and wrinkle cream Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure Bee Clear skin masque contains Bee Pollen Royal Jelly and Propolis in a base of Honey for the best honey facial

7 High Desert Honey Products Royal Jelly in Honey tastes great is easy to use convenient to carry and every teaspoon is packed with 1000 mg of pure raw liquid Royal Jelly in a Honey base

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 41: Mozart Chocolate Energy Drink

41

COMPETITORS AND PRODUCT COMPARISON

1 Raw Honey Product

CC Pollen Honey Rs290100gm (including shipping cost)

Wiprorsquos ndashSANJEEVANI Rs40100gm

Daburrsquos Honey Rs37100gm

In India the honey market is basically deal by local and small players

The local raw honey cost is almost Rs25-45kg and even more cheaper in rural areas

2 Bee Pollen Products

CC Pollenrsquos ndashRs7911500mg (90 chewable tablets)

In India till now there is no pollenrsquos market is yet known

3 Bee propolis product-Rs664500mg (60 tablets)

Bee propolis is imported through internet shopping and as it there is no known and organized producer in India

4 Royal Jelly Products Rs62530gm (tablets)

The royal jelly is imported through internet shopping and as it there is no known and organized producer in India Raw honey and its refined derivatives are well consumed in India

5 Aller Bee-Gone Rs1581144 tablets

Available on internet shopping sites and no known and organized producer in India

6 Total Enzyme Balance Rs83390 capsules

Available on internet shopping sites and no known and organized producer in India

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 42: Mozart Chocolate Energy Drink

42

7 Skin Creams Rs62550gm (CC Pollenrsquos)

Shahnaz Flower Power Rs58140gm

Well known products with Shahnazrsquos brand name

Wellness-shop Rs86315ml (Honey base cream)

MARKET SCENARIO

China is currently by far the largest honey-producing nation in the world with around a 40 per cent slice of the market The next biggest producers are the US Argentina and Ukraine

The key exporters in the world honey market are China supplying 30 to 35 per cent Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent

The three biggest honey importers are Germany Japan and the United States Germany is the worlds largest consumer importing 90000 tones of honey products annually

The per capita consumption of honey in Germany is 15 kg compared to a dismal 3 g in India

WORLD HONEY MARKET

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 43: Mozart Chocolate Energy Drink

43

INDIAN MARKET SCENARIO India produces a total of 70000 tones of honey every year of which 25000-27000 tones

are being exported to more than 42 countries including the EU the Middle East and the US

Punjab Haryana Uttar Pradesh Bihar and West Bengal are the major honey producing states

The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03

The sale price of honey by beekeepers in India varies from Rs 25 to Rs 45 per kg Wherea in countries like the USA Argentina and Brazil the price varies from Rs50to Rs 80 kg

Price supply purity and service are the major determinants in the honey industry

The honey market in India is currently dominated by the unorganized sector which contributes 42000 tones of the total annual output of 70000 tones -- worth Rs 1200 crore (Rs 125 billion)

ANALYSIS AND FINDINGS

During the data collection and research over the company and company profile I have found some objectionable and revealing facts about the company and its past background The CC Pollen company phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement

ldquoThe CC Pollen Company a Phoenix-based firm and its owners have agreed to pay $200000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight alleviate permanently their allergy symptoms and reverse the aging process among other claims The FTC also alleged that some of the claims were made in infomercials that CC Pollen misrepresented to be objective news or documentary programs rather than the paid ads that they were(In1992 and revised in 1999)

The FTC also charged CC Pollens principals Bruce R Brown Carol M Brown and Royden Brown all of Phoenix (collectivelyCC Pollen) All have signed the proposed settlement agreement

The FTC also alleged that in these infomercials as well as the print ads CC Pollen falsely represented that consumption of bee-pollen products -- cannot result in an allergic reaction

-- Will alleviate permanently all of the consumers pollen-allergy symptoms -- slows prevents or reverses the aging process

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 44: Mozart Chocolate Energy Drink

44

-- can cure prevent or alleviate impotence or sexual dysfunction and

- Cause weight loss

In addition CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use None of these claims are true the FTC charged

CONCLUSION

The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC)

FTC was created in 1914 with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy The FTC pursues vigorous and effective law enforcement advances consumersrsquo interests by sharing its expertise with federal and state legislatures and US and international government agencies develops policy and research tools through hearings workshops and conferences and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies

The products of the company are of high price and in India (if imported) as local honey market and its price is cheap

The Honey market in India is basically consist of local and regional players and of unorganized sector so import of honey and its derivatives will be a costly affair

So from business point of view in simple words there is no possibility of any kind of business with CC Pollen Company

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-
Page 45: Mozart Chocolate Energy Drink

45

BIBLIOGRAPHY

1 wwwrajambcom 2 wwwbeezhoneycom 3 wwwindianexpresscom 4 wwwrediffnewscom 5 wwwquackwatchcom 6 wwwnextagcom 7 wwwgoliathecnextcom 8 wwwkejriwalhoneycom 9 wwwandhranewscom 10 wwwoneindiacom 11 wwwtopnewscom 12 wwwinfodriveindiacom 13 wwwbharatbookcom 14 wwwyahoonewscom 15 wwwftcgov 16 httpwwwskambergcomhoneyhtm 17 httpwwwbeekeepingcom 18 wwwgreathoneycom 19 wwwbeelinkercom 20 wwwccpollencom 21 wwwwellness-shopin 22 wwwkejriwalgroupcoin 23 wwwimporiumonnetcom 24 wwwwikipediacom 25 wwwthehinducom 26 wwwthehindubusinesslinecom

  • Tim Kershenstein a graduate of Tulane School of Public Health and Tropical Medicine put together a team of professionals to develop the formulation of Mozart Energy Drink in January 2008 with an emphasis on wellness The wellness goal is a state of optimal energy that is achieved by a nutritional balance which maximizes an individualrsquos potential performance
    • WATERS INCLUDING MINERAL WATERS AND AERATED WATERS CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED AND OTHER NON-ALCOHOLIC BEVERAGES NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009
    • H S CODE -
    • 2202 will be the HS code of MOZART CHOCOLATE ENERGY DRINK
    • 22029000 will be sub code it include chocolate and brown products
    • LANDED COST FOR 40 FEET CONTAINER-
    • All duty will be in terms of
    • So finally for 2888 cases (69312 can) the price comes out to be
    • Rs22 87296 and the customs duty on that value will be Rs83480265
    • The landed cost will be Rs3122098 for 69312 canes (40 feet container)
    • The costcan =Rs4505 (excluding shipping cost)
    • If we consider shipping cost as US$3000container (40feet) then total cost can will be
    • =Rs 468can in India
    • THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs468can
    • The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so it would have enough time to make its sale and retain in market If the shipping time is reduced to 1-15 months the product can make a good market and selling time
    • OVERALL OBJECTIVE ANALYSIS AND FINDINGS-
    • The overall market potential is very good and the market growth rate is almost 50 annually Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier The coming future trend of energy drinks to its target customers are also showing positive signs Indian youths and working class are accepting the energy drinks
    • The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market
    • The direct rival for ldquoMozart chocolate energy drinksrdquo in the market will be well established players like RED BULL and PEPSICO These products may give stiff competition
    • Since the landed cost of Mozart chocolate energy drink comes up to Rs468can so we can price our product at a good competitive price in markets in Indian metro cities
    • In India due to following reasons people are preferring energy drinks-
    • 1 Health consciousness
    • 2 Hectic lifestyle
    • 3 Instant energy requirement during long working hours
    • 4 Increased spending capacity
    • MOZARTrsquoS PRICE LIST WITH SHIPPING COST
    • Customs
    • HS code for custom purposes is 22029000
      • Ground Shipment
      • Packed Per Pallet
        • Sea Shipment
          • Packed 40 ft Container 2888 Cases
            • Price
            • Terms
              • ldquoMozart chocolate drinkrdquo will be new in Indian market and has potential to gain good market share in its niche segment
              • The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product
              • If we can sell this product at around Rs60 to Rs 75can it can get good response in the market
              • The points of major concerned will be-