project

EXPORT MARKETINGFINAL PROJECT REPORT

JAW’s MANUFACTURING & TRADING

INSTRUTOR

Mr. NADEEM AKHTAR JANJUA

GROUP MEMBERS

JASSIM MANSHA 07108075

ASAD MAHMOOD 07108102

WAQAR MUBARIZ 07208017

GIFT BUSINESS SCHOOL

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ACKNOWLEGEMENT

This project report of “Export Marketing” is the result of idea and Knowledge to us by

Mr. Nadeem Akhtar Janjua.

We have received unfailing encouragement and inspiration of Mr. Nadeem Akhtar

Janjua’s exceptional knowledge and unparalleled behavior is full of ardent inspiration in

it. However, we can never adequate thank all those who have their assistance, guidance,

cooperation criticism contributed to the improvement of this report. We are ebullient in

expressing our intense in debtless heartiest gratitude to all of them.

Since performance feedback is essential for effective communication, mistakes and

creative feedback of the report may be unhesitatingly communicated to us, who will be as

far as possible duly acknowledged and most welcome.

In this report, whatever is beneficial comes from Allah Almighty, and whatever is faulty

are us.

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Contents

ACKNOWLEGEMENT.......................................................................................................iSUMMARY.......................................................................................................................iiiPURPOSE OF ENTERING EXPORTING BUSINESS.....................................................1

Purposes for our Export Business Plan............................................................................1Overall Purposes of our Export Business Plan................................................................1Goals................................................................................................................................1

BACKGROUND.................................................................................................................1Background of Selected Industry.....................................................................................1Sources of Industry Information......................................................................................2The sources of industry are mentioned in the references section....................................2Define role of businesses of similar size.........................................................................2Describe background of your selected product...............................................................2

METHODS OF EXPORTING............................................................................................3Direct Exporting..............................................................................................................3Indirect Exporting............................................................................................................3Decision on direct or indirect exporting methods............................................................4

INTERNATIONAL SKILLS..............................................................................................4Export Assistance and Service Providers........................................................................4Areas of Export Related Assistance................................................................................4

PERSONNEL......................................................................................................................5Needed Staff and Resources............................................................................................5Outside Resources Required............................................................................................5Determine where to develop needed written policies......................................................5

PRODUCTS........................................................................................................................6Identification and Evaluation of Products to be Exported...............................................6Adaptation to Products for Export.................................................................................10

TARGETING MARKETS AND CUSTOMERS..............................................................10Estimated Export Sales Levels......................................................................................10Customers within Targeted Market...............................................................................10Distribution....................................................................................................................11

COMPETITIVE ANALYSIS............................................................................................11Major Domestic Competitor..........................................................................................11Compression with our Competitors...............................................................................12

EXPORT MARKETING STRATEGY.............................................................................12Export Pricing Strategy..................................................................................................12Terms of Sale and Payment...........................................................................................13Determine Promotional Strategy...................................................................................13Establish Customer Service Responsibility For Export.................................................13

REFERENCES..................................................................................................................14

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SUMMARY

This report presents the project of Export Marketing in which we selected new name for

our company i.e. JAWS Manufacturing & Trading. We manufacture various types of

leather products. We have developed exporting department recently and stepped into

export business, and selected our gloves to export to foreign market. Selected country for

export is Germany. The data from Trade Development Authority Pakistan shows that an

increase of 3% annually of exports to Germany.

This project report tells the way of entering in foreign market in direct mode by

eliminating intermediaries. The report also includes the background of selected product

and its complete description. Here we also discussed our price quotation compared to that

of our competitors. We have also mentioned about the domestic market and researched

on the competitor who has same destination of target market i.e. Germany.

The report shows which personnel is responsible for what task, as well as the resources

need to manufacturing and delivering the order to the airport. The report also shows the

mean of exporting i.e. air transport.

The analysis done on competitor shows us what strategy on pricing should be adopted

and how much profit margin should be kept in order to earn breakeven point as well as

compete with the competitors to capture maximum market share. We have also discussed

the mode of payment and promotional strategies which will show our customers that they

are in safe hands.

We are really thankful to our professor Mr. Nadeem Akhtar Janjua, for providing us with

huge knowledge and applying it in practical world of export. This report will be helpful

for those who want to step there business in exporting stage to Germany or any other

country.

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PURPOSE OF ENTERING EXPORTING BUSINESS

Purposes for our Export Business Plan

The purpose of export business plan is to create such a strategy in order to enter in the

Germany sports market successfully. This will also make us popular in the foreign market

and create relations with foreign customers.

The main purpose of starting export business is to increase our product line and expand

our business in other countries as well and create a brand name. Later we will establish a

showroom that country where the demand of our product will be more.

Overall Purposes of our Export Business Plan

The overall purpose is mentioned in above point.

Goals

The goals are to

1. Earn more profit

2. Make reputation in the foreign market

3. Capture the market

4. Make brand name among the renowned brands of the world

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BACKGROUND

Background of Selected Industry

Germany is among the most popular tourist destinations in every season. For those

seeking an active holiday the country offers an immense variety of sports and activities;

therefore, physical effort, fun and culture are combined in an unforgettable experience.

The beautiful and diverse landscape and mild climate provide a large number of options

for tourists, from walking or cycling throughout the country, skiing in the majestic Alps,

swimming in the North Sea, Baltic Sea, or in warm mountain lakes in the summer, or just

having some active leisure time in the big cities. These are among many other

possibilities that await you in Germany.

Therefore the selected product is very much suitable in this industry due the love of

sports among the people of Germany and tourist. Following are the sports where the

selected product is beneficial to be used.

Water Sports

Cycling

Skiing

Football

We have selected few sports at the start, Water Sports, GYM and Cycling. After

establishing the name of our business we add more products on demand in market.

Sources of Industry Information

The source of industry information is gathered from various websites including

governmental websites as well research articles and reports published over websites. The

links are mentioned in the References section.

Define role of businesses of similar size

In Pakistan there are many players in the industry of similar size. Sialkot industry plays

vital role in this type of industry, number of players exists here. Many businesses are

dealing with the importers and customers in Germany, but we have come across on name

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which has direct link in Munich i.e. Mellow Industries from Sialkot. Hence, these

competitors are threats for us because they are very old in this business.

Describe background of your selected product

We have selected three products to export. According to our market research Germany is

cold country of Europe.

Workout Gloves

Cycling Gloves

Sailing Gloves

METHODS OF EXPORTING

Direct Exporting

Advantages of Direct Exporting

Potential profits are greater due to elimination of intermediaries.

We know who our customers are.

Our customers know who we are. They feel more secure in doing business

directly.

If something goes wrong we can easily contact who is responsible.

The communication between our customers remains direct which helps in

providing quick and direct feedback on product and its worth in the

marketplace.

Disadvantages of direct Exporting

It is time consuming which takes more time, energy and money.

Servicing the business will demand more responsibility from every level of

your organization.

We have to handle all the logistics of the transaction.

If you have a technological product, you must be prepared to respond to

technical questions.

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Indirect Exporting

Advantages of Indirect Exporting

It is risk-free way for the beginners of any business.

There will be less involvement in the export process.

We learn about international marketing.

We don’t have to get involved ourselves with shipments and logistics;

therefore we depend on the intermediary with whom we deal.

You can field-test your products for export potential.

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Disadvantages of Indirect Exporting

Less profits due to intermediary.

No control over sales in foreign market.

Here we rarely know who our customers are.

The intermediary might also be offering products of our competitors, to the

same customers instead of providing representation.

Our product then lies in the hands of others which make it insecure in sense

of its presentation.

Decision on direct or indirect exporting methods

The company is registered in chamber of commerce and has ISO Certification. Hence, we

will go for direct exporting

INTERNATIONAL SKILLS

Export Assistance and Service Providers

As we are well established with the all facilities, but we need assistance in carrying the

order from factory to airport.

Logistics

The logistics is used for carrying the order from factory to airport. There are various

kinds of logistics companies which provide services for factories. We will choose the one

who will offer us with best price.

Areas of Export Related Assistance

We are dealing directly with the customers, therefore we don’t need any assistance

because we just export the order to foreign country and rest of the part is played by the

customers who will customs clear his order in his home country. Plus we will need

services of bank through which all the transaction of payments will be looked after.

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PERSONNEL

Needed Staff and Resources

Three members of the group will be looking after the all operations,

1. JASSIM MEHAR

Jassim Mehar will be looking after logistics, banks and all the paper works done

during the exporting, in short he will be responsible for all the process of exporting.

2. WAQAR MUBARIZ

Waqar Mubariz will be responsible in manufacturing process. He will be managing the raw material and quality control of the finish products.

3. ASAD MAHMOODAsad Mahmood will be responsible for all the office works, contacting the customers

as well as suppliers for raw material.

Outside Resources Required

As we have well established manufacturing and trading business, we only require

outsourcing over raw materials.

Raw Materials The raw leather is purchased from tannery and some special kind of material is purchased

from the importers who purchase from foreign country. This special leather is used when

any customer demand for such special product. Then we also purchase other materials

which helps in making glove in its finish condition.

Determine where to develop needed written policies

The payment policy will be simple; we will go for letter of credit method. Once the order

is placed there will be no refund or changes made in the order. Any damage product in

the order will be replaced with only same kind of article but there will be no refund on

that.

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PRODUCTS

Identification and Evaluation of Products to be Exported

Selected products for export are leather gloves. The pictures and descriptions are

mentioned below.

Workout Gloves: JAW-001

Description

This glove is made in Amara with reinforcement of Kevlar on palm and back side is

made in Four-way and cuff neoprene and Velcro strap closer.

Price: 8.80$ C&F by Air (Including Profit and Freight Charges)

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Sailing Gloves: JAW-002

DescriptionThis gloves is made in Amara with reinforcement of Amara on palm and back side is

made in neoprene with Velcro strap closer.


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Cycling Glove Summer: JAW-003

DescriptionThis glove is made in Amara with reinforcement of Amara on palm and back side is

made in four-way, cuff neoprene with Velcro strap closer.


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Cycling Gloves Winter: JAW-0031

DescriptionThis glove is made in Amara with reinforcement of Kevlar on palm and back side is

made in Four-way & Amara, cuff neoprene with Velcro strap closer.


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Adaptation to Products for Export

The glove will be packed in cardboard cartons; the packing of each pair of glove will be

packed in polyethylene plastic bags. If the customer demands special packing of

cardboard packing then extra price will be charged on each pack. The description of

packing is as under,

Carton size: 40 X 40 X 60 CM.

Quantity in one Carton: 225 – 250 (varies on type and size of Glove)

Weight of Carton: 19 KGs (varies on type)

TARGETING MARKETS AND CUSTOMERS

Estimated Export Sales Levels

Following table is showing increasing trend in export of selected commodities during

July – December 2011 – 12.

C O M M O D I T I E S JUL.-DEC.2011-12 JUL.-DEC.2010-11 ACTUAL INC.VALUE 000$ VALUE VALUE %

LEATHER SECTOR 330,567 295,478 35,089 11.88LEATHER 209,949 208,296 1,653 0.79LEATHER GLOVES 80,737 55,272 25,465 46.07LEATHER FOOTWEAR 39,881 31,910 7,971 24.98

Customers within Targeted Market

Following are the customers in Germany,

International Fashion Accessories

BOS Lederwaren GmbH

Fashion Point Co.

Shakil Sports GbR

Fuente Leather Wears e.K

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Distribution

COMPANY CARGO HOME AIRPORT FOREIGN AIRPORT IMPORTER

COMPETITIVE ANALYSIS

Major Domestic Competitor

The company main competitors in Sialkot include the following, Mellow Industries

Ichiban Corporation

Mallow Trading Corporation

We have found Mellow Industries are exporting the glove to Germany; therefore there

our direct competition is with Mellow Industries.

There price quotations are as follow,Mellow Industries

S. No. Products Unit Price (Rs.)

1 Workout Glove 777

2 Sailing Glove 478

3 Cycling Glove Summer 666

4 Cycling Glove Winter 772

Ichiban Corporation

S. No. Products Unit Price (Rs.)

1 Workout Glove 775

2 Sailing Glove 475

3 Cycling Glove Summer 665

4 Cycling Glove Winter 770

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Compression with our Competitors

The prices of our competitors are higher as compare to our prices. This will be

opportunity for us to compete with our competitor in foreign market. Plus this will be

competitive edge for our business to offer low price to the customers in Germany.

The threat to our company is that the competitors as already captured many markets and

has relations with the customers for many years and there product line is big as compared

to ours.

EXPORT MARKETING STRATEGY

Export Pricing Strategy

We will adopt Cost Oriented pricing strategy. The following are the components of cost

oriented approach to the pricing.

Cost-Plus Pricing

Here we will first calculate all the cost of product and add fixed profit margin to the total

calculated cost.

Following will show the calculation of invoice price,

S. No. Products Unit Price (Rs.) Unit Price ($) Quantity Price (Rs.) Price ($)

1 Workout Glove 800.80 8.80 2500 2002000 22000

2 Sailing Glove 500.50 5.50 3000 1501500 16500

3 Cycling Glove Summer 691.60 7.60 2000 1383200 15200

4 Cycling Glove Winter 796.25 8.75 2500 1990625 21875

Total 10000 6877325 75575

The above price mentioned are including C&F, the rate of Rs. 30 is charged as freight

charges on every single pair of any kind glove. It’s around $ 0.32 i.e. if unit price of

Workout Glove is $ 8.48 then the freight charges will be $ 8.80.

The profit of $ 1 is included on every pair i.e. Rs. 91 per pair of any kind i.e. if the cost of

Sailing Glove is $ 4.18 then the total price after including $ 1 will be $ 5.18, which will

be quoted for customers. Plus all carrying cost from factory to airport in Lahore is also

added on single pair.

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Terms of Sale and Payment

The sales and payment method will be used as CAD i.e. Cash Against Document system.

In this system the exporters as well as importers bank is involved, and this form if secure

mode of transactions transfer. This will also show our customers that we are well

knowledgeable about the system of export.

Determine Promotional Strategy

We stay in contact with the customers by means of phone calls, emails, etc. who so ever

places the order. This shows our customers that how important they are for us. Further

building relations with customers who comes to us repeatedly, we will offer then with

special promotions, which will make them our loyal customers.

Establish Customer Service Responsibility For Export

Customer services will be provided to customers in Pakistan i.e. the export process and

clearance of order from the airport.

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REFERENCES

Albaum, G. A., Strandskov, J. S. & Duerr, E. D. (2005). International Marketing and Export Management . India: Dorling Kindersley.

Johnson, T. E., & Bade, D. L. (2010). Export Import: Procedures and documentation . New York: AMACOM.

http://www.alibaba.com

http://importexport.about.com

http://www.tdap.gov.pk

http://www.scci.com.pk

http://www.nttfc.org/index.asp

http://www.fbr.gov.pk

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project

Documents

Transcript of project