Today, it would not be wrong to say that globalization is at its full pace & India, being a developing economy of the world, contributes a good share in various services & products. India is the second largest producer of fruits in the world, contributing 10.23%and 14.45%of the total world production of fruits. India has made a fairly good progress on horticulture map of world with total annual production of the horticulture crops touching over 149 million tons. India has been contribute with wide range of climate and physiographical conditions and as such is most suitable for growing various kinds of horticultural crops such as fruits, vegetables, flowers, nuts, spices and plantation crops.
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It is diverse agro climatic conditions allow production of a wide range of tropical, sub tropical and temperate fruits. The annual production is estimated to be nearly 46 million tonnes accounting for about 10% of the world production. Indian fruit production yields and exports grew faster than the average for the world production at 5.33% compared to 2.2% and exports at 8.21% compared to nearly 2%. India’s share in the global exports of fruits is less than 5%. Trade in fruits has become steadily more important over the last decades. The volume, consumption and direction of this trade have changed as income and insistence on quality has grown on the demand side, while the technology and trade agreements have determine the supply side. Lower prices and greater availability of produce years have raised the layout of fruits in global consumer’s basket of goods. Other factor is healthy diet and improved handling and transportation has furthered the globalization of fruit trade. Globalization of markets is likely to continue as the factors of supply are combined with invention in technology and trade barriers enabling suppliers to meet the preferences of a more wealthy business. Developed countries will continue to persist global trade in fruits.
Global imports are forecast to reach 4.3 million tonnes by 2010 with 87% or 3.8 million tonnes specified from developed country market. The fruit export grew 41% in 2009-10 and value wise export in 2008-09 also rose by 50% to Rs. 3, 65,915 over Rs. 2, 43,713 in 2007- 08 said by Mr. Anand Sharma Commerce minister of India.
The EU anticipated remaining the world’s largest import market followed by the United States. The export market for fresh fruits is highly competitive among the top exporters. Making access to foreign market is critical to countries that are large exporter. Free trade agreements are one means to provide increased market approach and encourage increased export. In addition to negotiating trade agreement top exporter use various export promotion and marketing techniques to increase their market share in foreign market.
Introduction of the Company:
Adani Agrifresh Ltd.:-
I choosing a existing company which is situated in Maharashtra named Adani Agrifresh Ltd. Maharashtra is the one of the largest state in the production of fruits (19%) of the total fruit production in the country. The state produces around 9 million tonnes of fruits having productivity of 16 MT per hectare, which is fairly good when compared to country’s average of 12 MT. It grows commodities like grapes, pomegranate, mango, oranges, lime and strawberry, jack fruits etc in large quantity .The state holds prestigious position in vegetable production contributing 5% of the production and stands 7 in the country. The state has comparative advantage in export because Mumbai port and metropolitan market are there. Usually very little quantity of export quality grapes comes to APMCs. Export grapes are usually procured at the fare gate. Traders and exports go directly to farms 20-25 days before harvest and they fix a procurement price based on the grade.
In certain commodities the state has occupied unique and prestigious position , e.g. mango ,pomegranate, grapes and onion.
Highly spoilable nature of his fruits makes their marketing system more costly and complex. Timely and procurement of fruits in bulk is of immense importance for exporters. Transportation plays an important role in fruits marketing.
The exporter has to meet the specific qualitative and quantitative requirements of the importer. The packaging, residue testing, documentation and phyto-sanitary certification have to be met in order to export. So establishing an efficient backward linkage is must for exporting fruits.
Maharashtra is a leading state in production of Grapes in whole country. In regards to agriculture land under grapes cultivation & grapes production, Nasik & Sangli districts are at vanguard in the state. Apart from these grapes are also grown in the districts of Ahmednagar, Pune , Satara , Solapur and Osmanabad. Now a day’s grapes produced in Latur district of Marathwada. However, Nasik and Sangli districts are ahead in the production of grapes in a scientific manner. During very first season (2007-08) Adani Agrifresh Ltd. exported 50 Container of Grapes to European Nations from Nashik District.
Area under grapes in Maharashtra is 35236 hectare out of which Nasik and Sangli districts contribute 24174 hectare and 8255 hectare respectively. Maharashtra produces around 988722 MT of grapes annually, in which Nasik and Sangli districts contribution is 500406 MT and 231635 MT. Total export of Grapes from India is 26793.83 MT valuing 105.89 crores out of which nearly 80 % is exported from Maharashtra. The Varieties grown in Maharashtra are Thompson seedless, Tas-e-Ganesh, shared seedless, Flame seedless and Sonaka.
ADANI GROUP PROFILE
I have selected a existing company name Adani Agrifresh Ltd. It is a organisation of Adani Group. Adani Group, founded in 1988, is one of the fastest growing business houses in India. The Adani Group has its roots in its flagship company, Adani Enterprises Ltd. (formerly known as Adani Exports Ltd.), which has been established by Mr. Gautam S Adani in 1988 as a partnership firm with an initial capital of Rs. 5 lacs. Through his entrepreneurial vision, global aspirations, hard work, quality standards and customer centric approach, Mr. Gautam Adani has transformed the Group in one of its kinds which has crossed the total revenue of INR 180 billion on March 31, 2007.
Other company of adani group-
Adani wilmar ltd
Adani logistics ltd
Adani enterprise ltd
ADANI AGRI FRESH LTD.
Prolonging the shelve life of fruits and vegetables and thereby creating a business plan.
Project conceived by June 2005 and completed in 14 months, 3 CA stores within a year including procurement of land.
Strong backward integration for product availability.
Developing procedures and systems in both infrastructure and manpower to meet the world standards.
To tap potential of Indian market.
To provide safe, hygienic, and fresh quality fruits.
Investment in technology and infrastructure to build and integrated supply chain of fruits and vegetables.
Build strong network with farmers, right from their growing by assisting them in technology.
To bring transparent product handling system that will benefit farmers.
Started in 2006 by investing Rs. 200 crores to set up controlled atmospheric pack houses in Shimla district at three different placed Viz. Rampur, Sainj and Rohru.
First time in India introduced Controlled Atmospheric storage facility.
First time in India introduced Optical Sorting-Grading facility for fruits.
Procured 18000 MT apples from Shimla and Kinnor district of Himachal Pradesh.
Set up strong marketing network in 30 Major towns of India.
Introduced first brand “Farm Pik” in apple.
New Market selection of Adani Agrifresh Ltd. for Grapes Fresh (HSC 080610) –
For expanding a Market of Adani Agrifresh Ltd. I select UK market. Because Adani Agrifresh Ltd. already exporting product in developed countries like Germany, Sweden, Netherland and Denmark etc. It will be beneficial for the organization because it could be easily control the business operation in UK.
1: Demand of Grapes in U.K.:
The total consumption of grapes in the U.K. market is very high due to demand of wine in the market. And fresh grapes are consumed by the people.
EXPORT OF GRAPES
Varieties in Demand in UK market-
Name of the Varity
Round berries green color, Seed less variety.
16 mm to 18 mm
January to April
Elongated berries,green less variety.
16 mm to 18 mm
January to April
Round berries,Blackish red colour,seedless variety.
16 mm to 18 mm
January to April
Round berries,Blackish red colour,seedless variety.
16 mm to 18 mm
January to April
Clone and Tash-e-Ganesh are also having demand to some extend in Dubai and Middle East.*Thompson seedless constitutes nearly 95% of grapes export to Eupore and UK.but for dubai and Middle East market ,along with Thompson seedless ,Sharad seedless ,Sonaka,2-A clone and Tas-e -Ganesh are preferred.
Factors such as market penetration, market share, profit margins, budgets, financial analysis, capital investment, government actions, demographic changes, emerging technology and cultural trends are also addressed. There are two major components to your marketing strategy:
How you will implement and support your day to day operations.
How your enterprise will address the competitive marketplace.
In the process of creating a marketing strategy you must consider many factors. Of those many factors, some are more important than others:
If the market is not especially attractive, but your enterprise is one of the strongest in the industry then an effective marketing and sales effort for your offering will be good for generating near term profits.
If the market is very attractive but your enterprise is one of the weaker ones in the industry you must concentrate on strengthening the enterprise, using your offering as a stepping stone toward this objective.
If the market is very attractive and your enterprise is one of the strongest in the industry you will want to invest your best resources in support of your offering.
If the market is not especially attractive and your enterprise is one of the weaker ones in the industry you should promote this offering only if it supports a more profitable part of your business.
Having selected the direction most beneficial for the overall interests of the enterprise, the next step is to choose a strategy for the offering that will be most effective in the market.
It is one of creating a product or service that is perceived as being unique throughout the industry. The emphasis can be on brand image, packing, proprietary technology, special features, quality assurance, superior service, a strong distributor network or other aspects that might be specific to your industry.
Cost Leadership Strategy:
It is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. It is used in the initial stage of the company or newly entry in the global market. These low costs should translate to profit margins that are higher than the industry average i.e. capital, good process engineering skills, close management of labor, products designed for ease of manufacturing and low cost distribution.
It may be the most sophisticated of the generic strategies, in this strategy more intense form of either the cost leadership or differentiation strategy. It is designed to address a focused segment of the marketplace, product form or cost management process and is usually employed when it isn’t appropriate to attempt an across the board application of cost leadership or differentiation.
There are three basic strategies to set the price of a product in the global market.
If Adani Agrifresh offering has enough differentiation to justify a high price and desire quick cash and have minimal desires for significant market penetration and control, then they set or captured the market very quickly.
If near term income is not so critical and rapid market penetration for eventual market control is desired, then you set your prices very low. And the company will available the product in off season.
Comparable Pricing Strategy:
If Adani Agrifresh is not the market leader in the industry, then the leaders will most likely have created a price expectation in the minds of the marketplace. In this case price offering comparably to those of competitors.
There are many strategies for advertising an offering the product. Some of these include:
Product Comparison advertising:
In a market where offering is one of several providing similar capabilities, if offering stacks up well when comparing features then a product comparison ad can be beneficial.
Product Benefits advertising:
To promote offering without comparison to competitors, the product benefits ad is the correct approach. This is especially beneficial when introduced a new approach to solving a user need and comparison to the old approaches is inappropriate.
When variety of offerings and audience is fairly broad, it is often beneficial to promote enterprise identity rather than a specific offering.
There are many factors in the macro-environment that will affect the decisions of the managers of any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyze these factors managers can categorize them using the PESTEL model. This classification distinguishes between:
Political factors: These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system.
Economic factor: These include interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the “Foundations of Economics” book economic change can have a major impact on a firm’s behaviour. For example:
Higher interest rates may deter investment because it costs more to borrow
A strong currency may make exporting more difficult because it may raise the price in terms of foreign currency
Inflation may provoke higher wage demands from employees and raise cost
Higher national income growth may boost demand for a firm’s products
Social factors: Changes in social trends can impact on the demand for a firm’s products and the availability and willingness of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms such as Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines has increased whereas demand for toys is falling.
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Technological factors: new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organizations providing the products.
Environmental factors: environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities.
Legal factors: these are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms’ behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation’s actions. Legal changes can affect a firm’s costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).
e.g. EU enlargement, the euro, international trade, taxation policy
e.g. interest rates, exchange rates, national income, inflation, unemployment, Stock Market
e.g. ageing population, attitudes to work, income distribution
e.g. innovation, new product development, rate of technological obsolescence
e.g. global warming, environmental issues
e.g. competition law, health and safety, employment law
Successful Export Marketing
Export marketing is a serious issue for most growing companies in today’s global economy. Export marketing is not just a process to find buyers/importers and approach them with the expectation of export orders but a well planned strategic marketing process one should follow and performed well to get success in International Market.
Strategic marketing action plan is a set of key functional areas of export marketing which should be performed well and followed step by step to get succeed in Export marketing.
Identify your target market
To identify target market and market needs where your products/services has good market potential and demand. There are many countries in world and you should select right one for your product and services. If you know your target market and market needs, you could easily get export orders from those countries. You can identify target market by conducting International Market research activity that will give you detailed knowledge of opportunities in International market.
Developing Export Marketing strategies
After identifying target market, develop a right Export Marketing Strategies including market entry strategy, positioning strategy, product strategy, pricing strategy, branding strategy, supply strategy and promotional strategy according to target market needs. Based on the conclusions of the International market research, you will be able to develop the strategy to meet your export marketing objectives.
To enter in right market where your products/services has good market potential and demand.
To position appropriately that give you an edge over competitor.
To develop products/services those satisfy needs of buyer.
To offer prices that gives both of you and your buyer a competitive advantage.
To supply as per ready stock or buyer’s requirements.
To promote your company that creates awareness among buyers/importers.
If you have developed right export marketing strategies you could enter and develop international market faster with sustainable export sales growth.
Preparing Marketing Communication Tools
Once you have developed strategies based on target market needs, and then prepare informative and appealing marketing communication tools like Company Profile, Sales letter, Product Catalogue, Brochures, Website etc. that can supports in positioning and promoting your company.
And after that make a promotion plan which plays a major role in export marketing success. Main objective of promotion is to create awareness among buyers/importers of what you are and what you offer. Promotional mix should be cost effective and should deliver right message, in right time and at right place. Promotion should lead buyers/importers to get attention, capture interest and take action in initiating business communication with you. Internet is the best cost effective and fastest promotion tool in present export marketing practices. It has been seen that major buyers/importers using search engines, B2B portals and directories to find and contact genuine suppliers.
Generating Export Inquiries
Success in export Marketing begins with generating genuine export inquiries from prospective buyers/importers which requires expertise and focused work of promotion, sourcing genuine buyers and approaching them professionally. One should study buyer’s profile and/or buy leads to know whether you can offer them what they require. It has been seen that many suppliers contact majority of those buyers/importers who have no interest in their product/services without understanding their profile and needs. A Buyer/importer can send you inquiry only when he needs your products/services either better than his existing supplier in terms of Quality, Price, Services and/or developing more suppliers and/or for other reasons. So contact them by offering competitive advantage which can get them interested to send you inquiries which can be converted in to export orders by communicating and negotiating professionally.
Whether you own a sole proprietorship offering consulting services or manage a 1500-person manufacturing facility, exporting offers you opportunities for growth, increased sales and diversified markets.
Exporting takes time and effort. It also takes resources and a strong commitment to compete beyond your current borders. If you are focused and have assessed your readiness to enter the global market and it also helps exporters identify their priorities as they prepare to export.
The secret to export success is preparation and a carefully researched export plan. This is your source of direction as you embark on your journey into foreign markets. An export plan helps you to act – rather than react – to the challenges and risks encountered in international business. And in addition to helping you implement your export strategy, it can help you obtain financial assistance, investors or other strategic partners required to make your export venture a success.
An export plan comprises many elements – a description of your company, its market and industry, and your business objectives; information on your products or services; an analysis of the target market and industry, including trends and forecasts; an examination of the competition and their strengths and weaknesses in contrast to your own; international marketing strategies, including customer profiling and the development of sales and distribution channels; employment and training issues; financial requirements and forecasts; and much more.
Conduct research to find the right market
Thorough market research helps you make sound export marketing decisions by giving you a clear picture of the economic, political and cultural factors that affect your ability to sell your product or service. Ultimately, market research saves you time, money and effort by reducing your exposure to unknowns.
There are two main types of market research. Secondary market research consists of information collection from published sources (books, newspapers, market reports, studies, and periodicals) and the Internet. Researchers will find trade statistics, market and industry information, even potential partners and trade leads. Secondary research helps you fine-tune your information needs.
Primary market research helps you fill in the critical gaps through direct contact with key experts, customers or other sources of information. Primary research frequently involves personal contact techniques such as interviews and consultations and is best attempted after you have familiarized yourself with the potential market through your secondary research efforts.
Devise marketing strategies for your target market
These strategies are captured in the international marketing plan, a flexible document that will likely be reviewed, revised and modified throughout your exporting activities. Marketing is a continuous activity and so is marketing planning because you can never know enough about your customers and how to meet their needs. The basic marketing formula – the four “P’s” of product, price, promotion and place – is just the beginning when it comes to international marketing. Your plan will need to address many other factors, such as payment, paperwork, practices, partnerships and protection and many more.
Enter the market
There are as many market entry strategies as there are markets; however, these strategies can be loosely grouped into three categories. Direct exports, as the name implies, involve direct marketing and selling to the client. In a reasonably accessible market such as the United States, direct exporting of products or services may be a viable option. But in less familiar markets, with different legal and regulatory environments, business practices, customs and preferences, direct exporting may not be an option. A local partner, for example, may be better able to manage these complexities and serve your potential clients better.
Indirect exporting is frequently used to enter new markets. Businesses selling products enter into an agreement with an agent, distributor or a trading house for the purpose of selling the products in the target market. Due diligence is critical when selecting an agent or distributor for indirect exporting.
The third market entry strategy involves strategic partnerships with other companies or individuals with complementary skills and capabilities. A partner can often provide the insight, contacts and expertise that fill the gap in your export readiness. A strategic alliance with a company selling a complementary product or service can provide more effective market access, resulting in more foreign sales in less time. As with indirect exporting relationships, contractual agreements with partners must be stated in clear terms and, whenever possible, refer to Canadian laws for the protection of the Canadian company.
Get your product or service to market
Every market has its own set of rules and regulations covering safety, health, security, packaging and labeling, customs and duties among other things. Additionally, these rules and regulations may vary depending on the product or service you are exporting. It is critical that you understand the rules and regulations that apply to you before you ship your goods or open your foreign business location. Product-based businesses with shipping requirements will benefit from developing a relationship with a freight forwarding company and a customs broker.
Explore financing options
While there are overnight export success stories, most companies must be prepared to invest both time and financial resources to see the return on their investment and the subsequent success. Consequently, financial stability and a secure cash flow are important during this period. In some cases, businesses can rely on their domestic sales to sustain their early export efforts. If this is not possible, it is a good idea to know what financing options are available. Exporters must develop a financial plan to understand and address the diverse costs associated with exporting, complete with a two- to three-year cash budget to cover expenses and a capital budget. A capital budget is a cost-benefit assessment of your export objectives and serves as your operating plan for measuring expenditures and revenues.
Understand the legal and regulatory issues
There are numerous international conventions, treaties and national, regional and municipal rules that can affect your ability to operate successfully in foreign markets. Exporters may also encounter disputes with agents or distributors. It is important to understand your rights and obligations when resolving disputes, selling goods or services and protecting intellectual property.
Export Process for Grapes: –
As we know that before go through the export process harvesting the grapes. Grapes harvesting is done in early morning because at that time the temperature is low. And every bunch of grapes are carefully placed a single layer in crates. And after that the carets are kept in the shade.
After harvesting the grapes removal the unwanted berries and grading according to berries size and bunches size and colour.
The grapes are packed according to the berries size and packed under supervised and hygenic condition. And the packeg boxes of grapes is different, it is folded/corrugated pack.
In the package boxes of grapes the SO2 pads inserted in the box which is help in keeping fungus free grapes. After the packed the grapes in the boxes the packed boxes are transported to the cooled storage which is known as member societies for pre-cooling treatment. Where the grapes are pre-cooled to two degree C to sustain it’s life from 60 days to 90 days.
Grapes pre-cooled by forced air cooling method
Thereafter the boxes containing in 40 feet reefer container in which the temperature fixed 2 C are filled with the packed produce under supervision of a Central Excise and Custom supervisor and the grapes are leaving to the port. And then the grapes are stuffed in the container. The stuffing condition of the grapes are checked by the shipping officer and sealed by the Excise and Custom inspector.
India did export of 13,928 tonnes of grapes in 2009. And this figure is excluded from UK because UK import very few from India but UK is a big potential market for consumption of grapes because UK is a cold region so people use to drink wine to be warm. But India Export grapes in EU market so India has a great opportunity and control the trade in UK. So UK can be a good potential market to export the grapes. For this I made a marketing plan which can generate profit.
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