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					           Table of Contents

Serial           Contents            Page No.
  1            Introduction             2
  2       Background of Product         3
  3       Processing of Mandarin        3
  4           Documentation             4
  5       Selection Of The Market       6
  6        SWOT Analysis of UK          9
  7      SWOT Analysis of Russia       10
  8        Comparative Analysis        11
  9           PEST Analysis            14
 10      Introduction to UK Market     18
 11        Procedure for Export        20
 12           Marketing Mix            21
 13        Budgeting and Costing       22


The product which we have chosen to export is Mandarin, locally known as Kinoo with the
brand name `The Mandarin`. Pakistan is placed as Fifth among the world’s largest Mandarin
producers after US, Brazil, China and Mexico respectively. But in a particular type of kinoo
Pakistan is the largest producer in the world. Last year export figures show a significant portion
of Kinoo being demanded all over the world with 30-40% demanded by Indonesia and Srilanka,
but due to heavy import duty in both countries the demand suddenly fell till 6%. Among other
countries demand of mandarin arise from Russia, UAE, UK and Iran. But the country we have
selected as the 1st mean for us to be global is United Kingdom due to its (political, legal,
exchange rate, population, GDP, per capita income, per-unit selling price etc).
If we talk about the exporters of mandarin in the world than we face direct competition with U.S,
and India but as far as U.S is concerned it is difficult for them produce in such an economic price
that Pakistan can. As far as India’s export is concerned Pakistan does not face any competition
with India due to the climate and export cycle (Pakistan May to September where as India
February to May).
Background of Product:
Kinnow (or kinoo) is a variety Mandarin (citrus fruit) often grown in Punjab Pakistan and to a
lesser extent in north Indian states, mainly Punjab and Rajasthan. The Kinnow was developed by
H.B. Frost at the University of California at Riverside in 1935, by cross-pollinating the King
tangor and the Willow Leaf.
Kinnow is a hybrid of two citrus cultivars; "King" and "Willow Leaf" and is classified as
Kinnow mandarin. It was introduced from California to the Punjab Agricultural College and
Research Institute, Lyallpur (now University of Agriculture, Faisalabad) in the sub-continent in
1943-44. This "easy peel" citrus has assumed special economic importance and export demand
being acknowledged for its high juice content, special flavor, and as a rich source of vitamin C.
Pakistan is the fifth largest producer of mandarin hybrid and oranges in the world, with a
production of 2.1 million tons per annum. Kinoo is only grown in Pakistan and its aroma and
taste has obtained a good reputation and acceptability in the international markets.
Types of Mandarin According to seeds shape:
      Diploid
      Tetraploid
      Triploid (Seedless)
Seedless variety of Washington Naval Orange and Marsh variety of grapefruit is developed in
the US and the Citrus Research Centre in the University of California, Riverside is engaged in
developing seedless kinoo variety which may not be costly to import but could challenge our
Processing of Mandarin:


Registration for Export

For doing the export/import an exporter/importer will have to do the following functions:-

              Mandarin
              We Registered Mandarin with the Income Tax Department for having Income Tax
               Number (NTN);
              We open will current account in Barclays that will handle our Export Transaction.

   Selection of Market:

   We cannot go to every country in the world to persuade people to buy our product. Even the
   largest international firms do not trade with the whole world and not every country can or
   will buy what a particular exporter may sell to them. In view of scarce resources and shortage
   of experienced marketing personnel, we have to be selective and concentrate on markets
   which could yield the best results. For this we have examine.

   i)    The economic position of the country.

   ii)       Size of the Market and whether it is expanding or shrinking.

   iii) Market growth in a given product.

   iv) Unit price of the product. Whether it is more or less than other countries.

   v)    Import regime (litigations) in the importing country.

    vi) Location of the market etc.

Exporters and Importers

Country                                   Export (000MT)
World                                           11,308
Spain                                           3,535
USA                                             960
South Africa                                    990
Turkey                                          862
Morocco                                         521
Egypt                                           480
Argentina                                       620
Mexico                                          360
China                                           418
Others                                          2,261
Country                                   Importers (000MT)
World                                           9,700
Germany                                         1,116 12%
USSR                                            1,056 11%
France                                          1,054
UK                                              806 8%
Netherlands                                     659
Japan                                           498
USA                                             452
Canada                                          418
Belgium                                         360
Others                                                             3,249

Major Orange & Mandarin Producing Countries - Production & Yield

Country                              Production (000MT)                     Utilization (000MT)
World                                        92,775                               25,533
Brazil                                       18,313                               11,723
USA                                          10,397                               7,164
China                                        13,930                               396
Spain                                        6,091                                895
Italy                                        3,171                                1,389
Egypt                                        2,251                                Not Available
Argentina                                    2,660                                1,185
Turkey                                       2,264                                Not Available
South Africa                                 1,560                                355

  Others                                     25,589                                s1,119


We are about to have a analysis of United Kingdom, Russia and Iran:

United kingdom:

The United Kingdom is a major developed capitalist economy. It is currently the world's sixth
largest by nominal GDP and the seventh largest by purchasing power parity. It is the third largest
economy in Europe after Germany's and France's in nominal terms, and the third largest after
Germany's and Russia's in terms of purchasing power parity.

The profile of UK is

      Population 61 million (61,000,000), (Ranked 22nd)
      Per capita income US$ 43,089 p.a., (Ranked 18th)
      GDP $2.674 trillion (2008 est. nom.)( Ranked 7th)
      GDP growth 0.1%
      GDP by sector agriculture (1%), Industry (23%) and services (76%)
      Inflation (CPI) 5.7%

      Population below poverty line 14%
      By occupation Services (81%), industry (18%) and agriculture (1%)
      Unemployment 7.8%
      Imports $621.4 billion (2007 est.)
      Main import partners Germany 14.2%, US 8.6%, China 7.3%, Netherlands 7.3%,
       France 6.9%, Belgium 4.7%, Norway 4.7%, Italy 4.2% (2007)
      The prime minister Gordon Brown
       1 Pound Sterling = 140 PKR
      8% Importer of overall kinoo which it meets from Germany and USA etc.

Main industries machine tools, industrial equipment, scientific equipment, shipbuilding,
aircraft, motor vehicles and parts, electronic machinery, computers, processed metals,
chemical products, coal mining, oil production, paper, food processing, textiles, clothing and
other consumer goods.

Economic condition of Iran:

      Population is 71 million—(Ranked 18th)
      GDP per capita $11,202—(Ranked 73th)

       The economy of Iran is the seventeenth largest economy in the world by purchasing
        power parity.
       GDP $830.06 billion (Ranked 17th)
       GDP growth 6.5%,
       GDP by sector agriculture (10.8%), industry (44.3%), services (44.9%)
       Inflation (CPI) 15.0%
       Population below poverty line 18%
       shortage of skilled labor
       Unemployment 12.5% according to the Iranian government
       Main industries petroleum, petrochemicals, fertilizers, caustic soda, car manufacture,
        pharmaceuticals, home appliances, electronics, telecom, energy, textiles, construction,
        cement and other construction materials, food processing (particularly sugar refining
        and vegetable oil production), ferrous and non-ferrous metal fabrication, armaments
       The President of Iran is Mahmood Ahmadinejad
       1 PKR= 116 Irani rial (IRR)

Economic Condition Of Russia:

The economy of Russia is the ninth largest economy in the world by nominal value and the
sixth largest by purchasing power parity (PPP). Russia has an abundance of natural gas oil,
coal, and precious metals. It is also rich in agriculture.

       Population 141.8 Million (Ranked 9th)
       GDP per capita $11,807 (Ranked 52nd)
       GDP $1.676 trillion (Ranked 6th)
       GDP growth -8.5%
       GDP by sector agriculture: 4.6%, industry 39.1%, services 56.3%
       Inflation (CPI) 11.9%
       Population below poverty line 15.8%
       by occupation agriculture 10%, industry 31.9%, services 58.1%
       Unemployment 8.9%
          1 Pakistani Rupee (PKR) = 0.36 RUBULE (RUB)

Main industries coal, oil, gas, chemicals, and metals; all forms of machine building from rolling
mills to high-performance aircraft and space vehicles; defense industries including radar, missile
production, and advanced electronic components, shipbuilding; road and rail transportation
equipment; communications equipment; agricultural machinery, tractors, and construction
equipment; electric power generating and transmitting equipment; medical and scientific
instruments; consumer durables, textiles, foodstuffs, handicrafts.

Country wise Opportunities and threats for exporting Mandarin:

United Kingdom:


      Population 61 million (61,000,000), (Ranked 22nd)
      Per capita income US$ 43,089 p.a., (Ranked 18th)
      GDP $2.674 trillion (2008 est. nom.) (Ranked 7th)
      Once goods have been admitted into the market they cannot be subjected to customs
       duties, discriminatory taxes or import quotas, as they travel internally.
      Seedless ―Kino‖ demand is high because of stomach disorder of natural kinoo seeds.


      Other exporters USA, New Zealand and some of Arab states besides Spain and Morocco
      England population is Health conscious



      Iran recently announced a cut in their import duty app 40%
      Population is 71 million—(Ranked 18th)
      GDP per capita $11,202—(Ranked 73th)
      Most Iranian resides in densely populated urban areas.


      Currency value weak, making our goods costly (1 PKR= 116 Irani rial (IRR)

      Last year Iranian custom authorizes decided to raise the price till 1300per metric ton from
       400per.metric.ton so, Iran custom authorities can raise up the issue again.



      Population 141.8 Million (Ranked 9th)
      GDP per capita $11,807 (Ranked 52nd)
      GDP $1.676 trillion (Ranked 6th)
      GDP growth -8.5%


      Kino used as a raw material for making Vine
      Supplying Kino by many exporters of Pakistan, India, and U.S
      Being among the largest Importer (fierce competition faced)
      Lowering margins

Currency not as strong as UK. One Kinoo cost them 1160 Irani Rial (IRR)

Selected Market to serve and reasons:

After having a thorough analysis of United Kingdom, Iran and Russia we conclude to start our
verge of global marketing from United Kingdom on the following grounds and the reason from
choosing UK is although the population is half as Russian is its currency is strong, giving good

margin and with GDP growth of only (0.1%) the agriculture sector of UK is only 1% which
opens the doors of opportunities for an agrarian country like Pakistan.

      United Kingdom                         Russia                             Iran
          Population 61                    Population 141.8                Population is 71
           million                           Million (Ranked                  million—(Ranked
           (61,000,000),                     9th)                             18th)
           (Ranked 22nd)                    GDP per capita                  GDP per capita
          GDP Per capita                    $11,807 (Ranked                  $11,202—(Ranked
           income US$                        52 )                             73th)
           43,089 p.a.,                     GDP $1.676                      GDP $830.06 billion
           (Ranked 18th)                     trillion (Ranked                 (Ranked 17th)
          GDP $2.674                        6th)                            GDP growth 6.5%,
           trillion (2008 est.              GDP growth -8.5%                GDP by sector
           nom.)( Ranked                    GDP by sector                    agriculture (10.8%),
           7th)                              agriculture: 4.6%,               industry (44.3%),
          GDP growth                        industry 39.1%,                  services (44.9%)
           0.1%                              services 56.3%                  1 PKR= 116 Irani
          GDP by sector                    1 Pakistani Rupee                rial (IRR)
           agriculture (1%),                 (PKR) = 0.36                    06 Days shipment
           Industry (23%) and                RUBULE (RUB)                     time
           services (76%)                   30 Days shipment
          1 Pound Sterling
           = 140 PKR
          22 Days shipment

Quoting A Price:

          It is easy to quote price at home. For this one has just to calculate cost of production with
   packing and transportation charges and add profit. But in case of export, quoting of price
   means many things. For this one has to examine several things including the following:-

   i. What price to charge to remain competitive abroad.

   ii.      While calculating prices one has to think about all the cost including, packing,
   insurance, credit, agents commission, octroi duties, documentation fee, marking charges,
   transportation charges, export duties etc.

   iii.. For securing good price one has also to check up price of the same product abroad. If
   there is a good mark up in price in foreign market, one should not loose sight of it. TDAP can
   help you get price information further its trade offices posted abroad.

   Signing Of A Contract:

   When prices are accepted then a contract is signed with the firm for supply of goods which
   becomes binding on both the buyer & seller. Contract is a document which normally

   I.       Name of exporter

   ii.     Name of importer

   iii.    Item of sale

   iv.     Unit price

   v.      Total quantity

   vi.     Terms of delivery (FOB (Free on Boards), C&F, CIF (Time and Place of delivery) etc.)
vii. Terms of payment (Consignment, deferred payment, LC irrevocable, LC confirmed,

       revolving LC)

viii. Mode of shipment (Sea, Air, Road)

xi.    Currency in which transaction Will be made.

x.     Validity period of a contract & delivery period.

xi. Shipping marks if any.

xii. Arbitration clause. (Bank)

Terms Of Delivery:

      When the exporter is making an offer, he quotes the price of his product. If the offer is
accepted then a contract is signed between the buyer & the seller. The contract includes
terms and conditions under which goods are delivered.

The buyer sitting in the overseas market is normally not interested to receive charge of goods
at one's factory site but he may be interested to get charge of goods on FOB basis which
means free on Board at airport or seaport. It means that charges of the consignment are fully
paid up to that point and the rest of the freight is paid by the buyer. Terms of delivery are not
only important for quoting price but it also makes clear as to who is responsible for the goods
if anything goes wrong. The most frequently used terms of delivery are as under:-

Financing For Export:

      The exporter should accept order which he can fulfil easily. He should have the necessary
finances or access to finances for effecting shipment and the capacity to wait till the sale
proceeds are received. In this connection, term of payment plays an important role as it

     should be timed to keep you solvent at the time of need. For export pre-shipment and post-
     shipment credits are available from the Govt; on concessionaire rate. The exporter can make
     use of it.

                  Packing should be sea, air and road worthy. The container should be in a position
         to carry contents to the destination in perfect condition. For reduction in cost most
         economical packing material be used. Pakistan Packing Institute can help you.

      Light and costly items are normally sent by air where as heavy items are shipped by sea. In
each case the most economical mode should be used to reduce cost.


     Insurance is necessary to recover cost in case of loss. But where the exporters are sure that
the chances of loss are minimum they do not insure consignment. In case the buyer insists on
Insurance then it must be done.

United Kingdom selected for export:

PESTEL analysis of United Kingdom

There are many factors in the macro-environment that will effect 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

    Tony Blair became the first Labor Prime Minister ever to win a third consecutive term when he
    was re-elected on May 5, 2005. Labor has a 62-seat majority in the House of Commons. The
    Conservative (Tory) Party and Liberal-Democrats (LibDems) form the major opposition
    parties. Blair stepped down as Prime Minister in June 2007. Labor Party leader Gordon Brown
    succeeded him. The main British parties support a strong transatlantic link, but are increasingly
    absorbed by European issues as Britain's economic and political ties to the continent grow in
    the post-Cold War world. Prime Minister Brown has continued Blair’s policy of having the
    United Kingdom play a leading role in Europe even as the United Kingdom maintains its
    strong bilateral relationship with the United States.

 Economic factors

    The United Kingdom has the sixth-largest economy in the world, is the third-largest economy
     in the European Union, and is a major international trading power. A highly developed,
     diversified, market-based economy with extensive social welfare services provides most
     residents with a high standard of living. Unemployment and inflation levels are amongst the
     lowest within the European Union.
    The United Kingdom’s economy was hit by turmoil in the financial markets. It entered a
     recession in the third quarter of 2008, accompanied by rising unemployment which increased
     from 5.2% in January 2008 to 7.9% in July 2009. In response, the British Government
     implemented a wide-ranging stability and recovery plan that included a fiscal stimulus
     package, bank recapitalization, and credit stimulus schemes.
    London remains a leading international financial center, but has been affected by recent
     financial market turbulence. London banks have laid off workers and many have scaled back
     their international operations. Two U.K. banks, Northern Rock and Bradford & Bingley,
     have been nationalized while the British Government has taken a significant share in two
     others. London’s financial exports contribute greatly to the United Kingdom’s gross domestic
     product, but its contribution is expected to be considerably lessened in the next few years.
     London is a global leader in emissions trading and is home to the Alternative Investment
     Market (AIM). It is also a government priority to make London the leading center of Islamic
    The United Kingdom is the European Union's only significant energy exporter. It is also one
     of the world's largest energy consumers, and most analysts predict a shift in U.K. status from
     net exporter to net importer of energy by 2020, possibly sooner. Oil production in the U.K. is
      leveling off. While North Sea natural gas production continues to rise, gains may be offset by
      ever-increasing consumption. North Sea oil and gas exploration activities are shifting to
      smaller fields and to increments of larger, developed fields, presenting opportunities for
      smaller, independent energy operators to become active in North Sea production.

     Social factors

The United Kingdom's population in 2004 surpassed 60 million--the third-largest in the
European Union. Its overall population density is one of the highest in the world. Almost one-
third of the population lives in England's prosperous and fertile southeast and is predominantly
urban and suburban--with about 7.5 million in the capital of London, which remains the largest
city in Europe. The United Kingdom's high literacy rate (99%) is attributable to universal public
education introduced for the primary level in 1870 and secondary level in 1900. Education is
mandatory from ages 5 through 16. The Church of England and the Church of Scotland are the
official churches in their respective parts of the country, but most religions found in the world
are              represented             in            the            United             Kingdom.

A group of islands close to continental Europe, the British Isles have been subject to many
invasions and migrations, especially from Scandinavia and the continent, including Roman
occupation for several centuries. Contemporary Britons are descended mainly from the varied
ethnic stocks that settled there before the 11th century. The pre-Celtic, Celtic, Roman, Anglo-
Saxon, and Norse influences were blended in Britain under the Normans, Scandinavian Vikings
who had lived in Northern France. Although Celtic languages persist in Wales, Scotland, and
Northern Ireland, the predominant language is English, which is primarily a blend of Anglo-
Saxon and Norman French.

     Technological factors

The growth of the internet has threatened traditional package holiday companies as consumers
book directly for themselves; this is why this industry has seen substantial consolidation as firms
rationalize to become more efficient.

   Environmental factors
The Climate of UK is generally mild and temperate; weather is subject to frequent changes but
to few extremes of temperature. Within the UK the Confederation of British Industry (CBI) also
represents the interests of British firms in discussions with government on a wide range of issues
such as economic policy, Europe and environmental issues.

   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' behavior. 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 organization’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).

Different categories of law include:

   Consumer laws; these are designed to protect customers against unfair practices such as
    misleading descriptions of the product
   Competition laws; these are aimed at protecting small firms against bullying by larger firms
    and ensuring customers are not exploited by firms with monopoly power
   Employment laws; these cover areas such as redundancy, dismissal, working hours and
    minimum wages. They aim to protect employees against the abuse of power by managers
   Health and safety legislation; these laws are aimed at ensuring the workplace is as safe as is
    reasonably practical. They cover issues such as training, reporting accidents and the
    appropriate provision of safety equipment

Introduction to UK market

The UK retail market for fresh fruit and vegetables was worth £8.34bn in 2008, which was
8.3% higher than in 2007 and 24.3% up on 2004. High food price inflation, especially for fresh
fruit and vegetables, contributed to the growth in the value of the market in 2008.

Fresh fruit and fresh vegetables are the two main sectors of the market. Fresh fruit includes
products such as apples and pears, bananas, berries, grapes, tropical fruits, stone fruits and citrus
fruits. The vegetables sector includes products such as salads, potatoes, root vegetables, brassicas
and legumes. Fresh fruit was the fastest-growing sector between 2004 and 2008, due to the
continuing            popularity       of       a           wide      range         of        fruits.

Fresh fruit and vegetables are likely to become a battleground for the supermarkets in 2009, as
they cut their prices to remain competitive during the recession. This, in turn, will put pressure
on the suppliers who will be asked to reduce their own prices further and in the process trim their
already slim profit margins. The leading supermarket chains are also concerned that retail
discounters such as Aldi and Lidl will increase their share of the retail fruit and vegetables
market       during     the    recession,   a   situation     they   would     want      to   avoid.

The approval of a new pesticides directive by Members of the European Parliament (MEPs) has
sent shockwaves through the fruit and vegetable growing sector. The new directive will ban the
use of those chemicals in pesticides that are believed to cause serious illnesses. Growers already
have a limited range of products to protect horticultural crops, and in some instances there will
be no viable alternatives for treating common pests, which reduce yields and damage fresh
produce. The sector is worried that these further restrictions could lead to reductions in crop
yields and quality and a rise in food prices for household staples like potatoes and broccoli.

The UK retail market for fresh fruit and vegetables is forecast to show further growth in 2009,
although the impact of the recession on demand, together with lower levels of price increases for
fruit and vegetables, is expected to lead to a lower rate of retail sales growth in 2009 than in
2008. Some segments of the fruit and vegetables market, such as premium lines and organic
produce, may also be more affected by the recession than others, as shoppers look for more
economically advantageous alternatives.

Promotion in UK

In many European countries television advertisements appear in longer, but less frequent
advertising breaks. For example, instead of 3 minutes every 8 minutes, there might be around 6
minutes every half hour. European Union legislation limits the time taken by commercial breaks
to 12 minutes per hour (20%), with a minimum segment length of 20 or 30 minutes, depending
on the programme content.However, these are maximum limits and so specific regulations differ
widely from both within and outside the EU, and indeed from network to network. Unlike in the
United States, in Europe the advertising agency name may appear at the beginning or at the end
of the advert.

In the UK, the British Broadcasting Corporation (BBC) is funded by a license fee and does not
screen adverts. On the commercial channels, the amount of airtime allowed by the UK
broadcasting regulator Ofcom for advertising is an overall average of 7 minutes per hour, with
limits of 12 minutes for any particular clock hour (8 minutes per hour between 6pm and 11pm).
With 42-minute American exports to Britain, such as Lost, being given a one hour slot, nearly
one third of the slot is taken up by adverts or trailers for other programmes. Live imported TV
programmes such as WWE Raw show promotional material that is shown in place of US advert
breaks. Infomercials (known as "admags") were originally a feature of the main commercial
channel ITV when it was launched in 1955 but were banned in 1963.

The growth of multi-channel television has changed the face of TV advertising making the
medium effective for companies with niche products and a targeted audience. 30-second
advertisements on digital channels such as Sky News, MTV or E4 can be bought for less than
£50000 and adverts on more targeted channels like the Business Channel, Motors TV or Real
Estate TV for less than £500 per 30 seconds. New TV channels are launching every week in the
UK and advertising opportunities are plentiful.

The major reasons to select United Kingdom for exports are its population 61 million
(61,000,000), (Ranked 22nd), Per capita income US$ 43,089 p.a., (Ranked 18th), GDP $2.674
trillion (2008 est. nom.) (Ranked 7th), Once goods have been admitted into the market they
cannot be subjected to customs duties, discriminatory taxes or import quotas, as they travel
internally, and Seedless ―Kino‖ demand is high because of stomach disorder of natural Kino

Procedure to export in United Kingdom

                                      Performa Invoice
                       (Sent to buyer, containing cost, quantity, quality

                                       Opening of L.C

                               Bank Issue e-form (export form)

                        Detail of shipment to be produced sent to the

                       E-form sent to agent at Karachi port to clear the
                                   consignment at custom

                         Copy of documents dispatched to the buyer

                       (Bill of lading, Certificate from food inspector,                 20
                                 Certificate of origin, Invoice)
Marketing mix:


Citrus processing plant facility is available at Bhalwal, Sargodha in the center of Mandarin
orchards. After harvesting the mandarin, the processing line selects quality Mandarin. These are
washed, waxed and treated with Citra shine+ Fungazil 500EC+ TBZ. Then mandarin are
packed in corrugated paper Boxes of the required weight and /or number of pieces. The normal
packing required by the buyers is 10 kg, 8 kg or 6 kg in double walled corrugated paper (Gatta)
packing with (1kg weight of the Gatta). After that mandarin is kept in cold store. Then mandarin
retains fresh up to 50 to 60 days. After this process they are loaded to refer container for export
by Sea or by Road.

The Mandarin is using special designed corrugated boxes on which the company brand name,
logo and slogan are also mentioned.


The Mandarin is supplying directly to the wholesaler at London, who will carry the
consignment from London (phlexio port). This distribution channel has been adopted to avoid
any major risk at the time of exporting.


The Mandarin is using Refer Container for local and international markets because this mode of
transportation is best for their products safety and it also keep the quality of the product in the
best way. We know that it is costly but not costly than their products.


This is most important element of the business because through this The Mandarin will be able
to promote the concept of their business in a massive way. But when we are taking about exports

and with no direct linkage with the consumers it becomes a (Global cum Industrial Marketing)
so, the promotional strategy recommended here is through personal contacts and a website.


The Mandarin is used Cost Based Pricing while setting the prices of business products. They
have chosen this approach because it helps them to achieve their pricing goal in an efficient and
effective way. This pricing strategy is to minimize the price competition and it is much fairer to
the buyers as well for their business.

                                BUDGETING AND COSTING
General Information
Consignment = 40 feet (3150 cartons with 22,050 packs and each pack weighing 7 kg
7 kg carton contains Kino's= 32, 36, 38, 42 (depending on the customers requirement)
7 kg carton have 6 kg of Kino's and 1 kg its own weight
$ Rate 85, Pound Rate = 133
                   Cost of Kinno at Factory                                Cost        Measure
Supplier: Sheikh Kino Factory
Location: Bhalwal

Cost of a single carton (Packing Box)                                 Rs 44            1 kg
Cost of 1 kg Kino after processing (Purchsing Cost)                   Rs 18.5          1kg
1 carton contains 6kg Kinno's thus (6 x 18.5)                         Rs 118           Per carton
Cost of 1 carton with Kinno's = 44 (Gatta cost)                       Rs 155           Per carton
Total cost of a single container at the factory (Rs 155 x 3150 )      Rs 4,88,250      container

Cost (Factory to Karachi port)
Temperature maintenance 04 degree Celsius Through Plugging
Carriage + plugging (5 plugging Rs 1,000 each)                        Rs 70,000
Duration : 3 days (Factory to Karachi)
Unloading + Loading + Karachi terminal plugging + custom
clearance (Rs 3,500)                                                  Rs. 15,500
(Duration 2 days) Fine shall be imposed of $50 for each day delay

Total cost of carriage (Factory to Karachi port)                      Rs 85,500

Cost of shipment (Karachi port to phlexio port)
(Temperature maintenance 16 degree)
                                                                      $ 3650 (Rs
Freight ((Karachi – phlexio port carrier Merics ship)                 310250)

Total cost till London:
Total cost of a single container at the factory (Rs 155 x 3150 )      Rs 488250        container
Total cost of carriage (Factory to Karachi port)                      Rs 85,500
                                                                      $ 3650 (Rs
Freight (Karachi – phlexio port carrier Merics ship)                  310250)
Total cost                                                            Rs 884000
As, one container contains 3150 cartons
                                                                      Rs 282.22
Per carton cost at London (Rs 884000/ 3150)                           (pound 2.12)
Selling Price of per carton to the whole seller
Pound sterling 2.50 per carton
Profit per carton (2.50 – 2.12) = 38 pens
Profit per consignment = Pound 1197 (Rs 1,59,201)



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