Aloe Vera world report primer

Aloe Vera World Report

1

This proposal has been prepared by:

Database Ref: 11199AV_L


Aloe Vera

Producers & Manufacturers

Distribution Channels & End Users

Contents Aloe Vera........................................................................................................................................... 1

Producers & Manufacturers ............................................................................................................... 1

Distribution Channels & End Users ................................................................................................... 1

Part 2.1 Aloe Vera Distribution Channels ............................................................................................. 4

DISTRIBUTION CHANNELS ............................................................................................................ 4

1. Producer owned channels ......................................................................................................... 4

2. Importers .................................................................................................................................... 7

3. Wholesalers ............................................................................................................................... 8

4. Retailers ..................................................................................................................................... 9

DISTRIBUTION FACTORS ............................................................................................................ 10

5. Distribution Channel Facilities .................................................................................................. 10

6. Distribution Factors .................................................................................................................. 10

7. Distribution Channels in the Industry ....................................................................................... 11

8. Inventory Carried by the Distribution Channels ........................................................................ 11

9. Distribution Targets .................................................................................................................. 12

10. Distribution Service Customers .............................................................................................. 12

11. Future Distribution Targets .................................................................................................... 12

12. Distribution Channel Development Plans ............................................................................... 13

Distribution Development ............................................................................................................. 13


2

Distribution Product / Market Expansion Grid .............................................................................. 13

Market Development Objectives .................................................................................................. 14

DISTRIBUTION ANALYSIS ............................................................................................................. 15

13. Internal analysis ..................................................................................................................... 15

Logistic chain ............................................................................................................................... 15

Value chain .................................................................................................................................. 15

Infrastructure ................................................................................................................................ 15

Human Resources ....................................................................................................................... 16

Technology .................................................................................................................................. 16

Procurement ................................................................................................................................ 16

Inbound logistics .......................................................................................................................... 17

Outbound logistics ....................................................................................................................... 17

Marketing and Sales .................................................................................................................... 17

Service ......................................................................................................................................... 17

14. The Macro Environment for Distribution ................................................................................. 18

Political Factors ........................................................................................................................... 18

Economical and Geographical Factors ........................................................................................ 19

Socio-Cultural Factors ................................................................................................................. 19

Technological Factors .................................................................................................................. 19

15. The Micro Environment for Distribution Channels .................................................................. 20

Buying behaviour SOR ................................................................................................................ 20

Buyer behaviour ........................................................................................................................... 21

Competitors ................................................................................................................................. 21

Distribution Channel type ............................................................................................................. 22

Media Influence ........................................................................................................................... 22

16. The competitive situation ....................................................................................................... 23

Suppliers bargain power .............................................................................................................. 23

Threats from new entrants to the Distribution Channels .............................................................. 23

Competition from alternative Distribution modes ......................................................................... 24

Buyers bargain power .................................................................................................................. 24

Competitor Rivalry ....................................................................................................................... 24

DISTRIBUTION OBJECTIVES ........................................................................................................ 25

17. Capital Investments, Premises, Stocking, Staff and Locations ............................................. 25

18. Marketing activities ............................................................................................................... 25

19. Penetrate and raise awareness in the targeted market......................................................... 26

20. Achieving a higher profit margin............................................................................................ 26

21. Building the customer base ................................................................................................... 26

22. Expansion potential............................................................................................................... 26


3

23. Reputation for service ........................................................................................................... 26

Part 2.2 Aloe Vera Trade Buyers .................................................................................................... 27

2.2 TRADE BUYERS..................................................................................................................... 27

1. Trade Buyers ........................................................................................................................... 28

2. Trade Buyers Purchases by Application .................................................................................. 31

BUYER FACTORS .......................................................................................................................... 35

3. Buyer Objectives ..................................................................................................................... 35

Buyer Objectives .......................................................................................................................... 35

4. Purchasing Factors .................................................................................................................. 36

5. Sellers’ Sales Strategy ............................................................................................................ 39

6. Buyers’ Strategic Alliances ..................................................................................................... 40

7. Buyer Operations .................................................................................................................... 40


4

Part 2.1 Aloe Vera Distribution Channels

DISTRIBUTION CHANNELS

Aloe Vera is grown in many tropical and sub-tropical areas. The cultivation of the many varieties of

the plant have in recent year been encouraged and sponsored by government and semi-government

agencies in many countries, especially Africa, China, the Indian sub-content, and Central America. In

addition to cultivation, the installation of processing plant close to sources of the raw material has also

been encouraged and this led to the supply of semi-finished and finished products.

This analysis deals with the primary supply of Aloe Vera Powder, Gel, Juice, Concentrates, Extracts,

Tablets, and associated products and by-products, to commercial buyers.

Aloe Vera products covered:-

1. Aloe Vera Extracts

2. Aloe Vera Concentrates

3. Aloe Vera Gel

3. Aloe Vera Powders

Distribution channels:-

1. Producer owned channels or Logistic arrangements

2. Importers

3. Wholesalers

4. Retailers

There are over significant 3,000 Aloe Vera growers in the world, and many producers are processing

their crops locally.

1. Producer owned channels

The relatively short time frame between the harvesting of Aloe Vera and the degradation of the active

ingredients has meant that the economics of the products favours the rapid processing of the raw

materials into more stable products.

The processing methods used in the manufacture of Aloe Vera products are usually:

a. Whole Leaf processing whereby the entire leaf is used to manufacture whole leaf gels, whole leaf

concentrates, and whole leaf powders.

b. Aloe Vera gel processing in which only the inner gel fillet is used to manufacture gels,

concentrates, and powders.


5

Aloe Vera concentrates are produced removing the water content, to varying degrees, by reverse

osmosis, thin film evaporation, vacuum distillation, and associated process. Aloe Vera gel will often

have 0.5% solids; however more commonly a concentrate up to 20% solids is produced giving a 40:1

concentrate.

Aloe Vera powders produced by Freeze drying or Spray drying are usually a 200:1 pure powder made

from the inner gel, or a 100:1 pure whole leaf powder from the leaf.

Because of the relatively low capital equipment investments (US$300,000) needed to process Aloe

Vera into a marketable product, increasingly local growers are combining to process their output

locally and thereby add value to their sales.

With the increased use of online marketing, many producers now sell their products directly to

wholesalers and retails via sites like Alibaba; and a few have established online retail sales.

The largest single vertically integrated supplier of Aloe Vera products is Forever Living Products

International, Inc which cultivates Aloe Vera in the U.S.A., Latin America and the Caribbean. The

company processes Aloe Vera and produced finished products which are sold via a multi-level

marketing company in some 70m countries. The company allegedly uses some 9.5 million sales

agents; however this number has not been verified. The company’s retail revenues are estimated as

being US$ 1.9 Billion.

Significant Aloe Vera growers whom then manufacturer finished or semi-finished products include:

Aloe Farms, Inc. USA

Agromayal Botanical S.A. de C.V. (T/A AMB Wellness), Mexico

Aloe Jaumave S.A. de C.V., Mexico

Aloe Laboratories, USA

Aloecorp (Hainan Aloecorp), China & Mexico

Aloe King / Southern Fields Aloe Inc., USA

Biofactoria Naturae et Salus, S.A., Spain

Evergreen Group, China

Laboratorios 2000, S.A. de C.V., Mexico

Lily of the Desert, USA

Lorand Laboratories LLC, USA

Mexialoe Laboratorios, S.A. de C.V., Mexico

Natural Aloe de Costa Rica, Costa Rica

Terry Laboratories Inc., USA

Many producers have been encouraged to process their crop in-house, or as part of a co-operative arrangement; and then market the product themselves or through tied distributors. In India, for example, the DataGroup Surveys reveal the following Aloe Vera Growers and Processors have been receiving support from government and semi-government agencies, and have been encouraged to market their output directly:-

1. Aakruti Enterprises 2. Adisan Limited 3. Aditi Mumbai 4. Aloe 1 Herbals 5. Aloe India Private Limited


6

6. Aloe Vera Products Company 7. Amritha Exports 8. Anand Vatika 9. Anuja Exporters 10. Arthi Ayurvedic 11. Bhoodevi Herbals 12. Chakri Herbal & Naturals 13. Channel One International 14. Chemical and Mineral Industries 15. Deccan Traders 16. Discovery 17. Divine Aloe Labs 18. Divine International 19. Evergreen Herbotiques 20. Excel Extracts And Exports 21. Farmwealth Bio Tech 22. G. K. Herbs 23. Geneca Pharma Private Limited 24. Govind Herbal 25. Green Agri Biotech 26. Green Syndicate 27. Greens 28. Halcyon Herb Farms Private Limited 29. Haritha Horticultural Technologies 30. Harschal Enterprises 31. Herbal House 32. Herbal India Private Limited 33. Horizon Agrochem 34. J. J. Overseas 35. J. N. Agrotech 36. J. S. Enterprise 37. Jaizeal Enterprise 38. Jasco Agro Farms 39. Katyani Plantation 40. King Farms 41. Kuber Botanicals 42. Kunal 43. Labland Biotechs Private Limited 44. M. N. J. Herbs 45. M. S. Enterprises 46. Maiam Trading 47. Mansarover Herbal Farm 48. Manu Impex 49. Maruti Agro Enterprises 50. Merlion Tech 51. Muk Agro Center 52. Mukti Herbs & Aromatics 53. N. K. S. Cosmetics 54. Nandan Agro Farms Private Limited 55. Natural Herb 56. Natural Herbal Products 57. Naveen Herbals 58. Neemax Private Limited 59. Nikki Herbals 60. Nipun Herbals 61. Nirmiti Agrotech 62. Nutan Orgachem 63. O. N. S. Exports 64. P. Forest Development Corporation Limited 65. P Manek Biofarms Private Limited


7

66. P. N. B. Organic Farms 67. Parfet Import Export 68. Patel Bhagwandas Raychand & Co 69. Patel Herbal 70. Patil & Patil Company 71. R. K. Aromas 72. Rajkamal Herbs & Aromatics Private Limited 73. Ramayan Aleovera 74. Ravi Raj Herbs 75. Rightex Pharmceuticals Private Limited 76. Rishabh Herbs 77. Sachins Aloe 78. Sai Herbal Co. 79. Satish Agro Products 80. Scarlet Trade 81. Seven Seas 82. Shah & Patil Farms 83. Shingla Farms 84. Shree Laxmi Agro Tech 85. Siva Agrotec 86. Sowvij Trading International 87. Sri Saileela 88. Super Exporters 89. Surya Enterprises, Pune 90. Susi Biotech 91. Tannu Exports 92. Trident Herbal Products 93. Tulsi Private Limited 94. Vaibhav Agrotech 95. Vaidik Agro Products 96. Vazeer India Private Limited 97. Veenus Enterprises 98. Venus Herbal 99. Viscolube Corporation 100. Voyage Exports Company 101. Wonder Herbs Private Limited 102. Yash Exports 103. Yeturu Overseas Limited 104. Yugandhar Agro Biotech

This demonstrates that the distribution channels from growers to trade buyers are being reduced as

many trade buyers are purchasing directly from growers (whom are processing their own crops into

finished or semi-finished products).

2. Importers Numerically there are limited numbers of independent importers on Aloe Vera products in each country due to the relative ease of purchasers to source supplies directly from producers and the local wholesalers representing those producers.


8

3. Wholesalers The producer’s wholesalers tend to trade internationally and will supply overseas purchasers though direct exports. The DataGroup Surveys reveal the following population of Aloe Vera Importers and Wholesalers:- .

Domestic Importers or Wholesalers

Argentina 6

Australia 41

Bangladesh 4

Belgium 2

Brazil 7

Bulgaria 5

Cameroon 1

Canada 27

Chile 1

China 357

Colombia 1

Croatia 3

Cyprus 2

Czech Republic 4

Denmark 1

Dominican Republic 1

Ecuador 2

Egypt 6

Estonia 2

Finland 2

France 4

Georgia 1

Germany 16

Ghana 2

Greece 18

Hong Kong 76

Hungary 6

India 247

Indonesia 15

Iran 7

Ireland 3

Israel 21

Italy 46

Japan 131

Jordan 3

Kenya 6

Latvia 3

Lebanon 3


9

Lithuania 1

Macau 3

Madagascar 1

Malaysia 18

Mauritius 1

Mexico 6

Morocco 15

Netherlands 3

New Zealand 7

Nigeria 6

Pakistan 64

Peru 6

Philippines 17

Poland 4

Portugal 3

Puerto Rico 1

Romania 2

Russia 3

Saudi Arabia 7

Seychelles 5

Singapore 4

Slovakia 12

Slovenia 1

South Africa 1

South Korea 114

Spain 31

Sri Lanka 7

Sweden 3

Switzerland 1

Taiwan 116

Thailand 115

Turkey 93

Ukraine 4

United Arab Emirates 12

United Kingdom 24

United States 65

Venezuela 3

Vietnam 49

4. Retailers Where retailers purchase finished products, they will tend to purchase then directly from producers or

wholesalers in the source country.


10

DISTRIBUTION FACTORS

5. Distribution Channel Facilities

Excellent Good Average Not Good

Locations

Distribution Efficiency

Storage Facilities

Storage Technology

Investment Portfolio

Locations: Distribution of Aloe Vera feedstock and products for re-sale are generally located in the

countries of production.

Capital Investment: During the last decade there has been a steady increase in Capital

Investment amongst both producers and distributors.

6. Distribution Factors

Very

Good Good Average Not Good

Logistics Effectiveness

Warehousing & Inventory Handling

Number / Location of Distribution Facilities

Third Party Logistics

Distribution Channel Inventory Handling


11

7. Distribution Channels in the Industry Essential Important Functional Marginal

Manufacturer owned Distribution Channels

Third Party Distribution Channels


OEM Channels

Logistic Partners

Own-Brand Distribution

Importers

Wholesalers

Distributors

Franchises

Retail

Joint-Ventures

8. Inventory Carried by the Distribution Channels

Very Good Good Average Not Good

Products Carried

Inventory Turn

Supply Availability

Delivery Logistics

Customer Differentiation & Segmentation

Product Branding for Resellers

Stock Re-ordering

Services Offered


12

9. Distribution Targets Vital Important Functional Marginal Unavailable

Local:

National:

Regional:

International:

Trans-National Markets:

10. Distribution Service Customers Vital Important Functional Marginal Unavailable

Joint-Ventures / Partners

Manufacturers

Sub-contractors

Trade Buyer & Wholesalers

End User & Customer:

11. Future Distribution Targets Substantial

Targets

Important

Targets

Functional

Targets

No New

Targets

Unavailable

Local:

National:

Regional:

International:

Trans-National Markets:


13

12. Distribution Channel Development Plans

Distribution Development

The strategic thrust of all business is in defining the future direction in market developments, generally

meaning selling current services to new customer segments or in new geographic areas.

Implementing this strategy would need one to evaluate the service profitability, and the individual

services in the service offering which would fit into the new markets being contemplated.

At first glance, what is the strategy in respect of market development?

Does the Distribution Channel have a realistic business perspective?

Does the Distribution Channel normally go for the low risk option and stay with their existing

services in their existing market?

Do the Distribution services work in the market and are there few market surprises?

Does the Distribution Channel expose itself to a new level of risk by either moving into a new

market with existing services, or developing new services for an existing market?

Do the new markets have radically different Distribution needs and dynamics?

Can the Distribution services realistically be commercially successful?

By moving two quadrants and targeting a new market with a new product will the Distribution

Channel increase risk to yet higher level!?

Distribution Product / Market Expansion Grid Market Development Diversification

Target different geographical markets.

Use different to sales channels.

Target customer segments

Acceptable Risk

Differentiation of services achievable

Differentiation of the customer(s)

Market Penetration Product Development

Increased advertising.

Customer sales promotion.

Increased logistic coverage.

Service Segmentation

Increase of products carried.

Improve customer services.


14

Market Development Objectives

Target

Markets

New

Market Base

Development

Partial

Diversification Diversification

Expanded

Market Base

Expansion

Limited

Diversification

Partial

Diversification

Existing

Market Base

Penetration

Product Range

Extension

Product Range

Development

Existing Modified New

Products & Services Carried


15

DISTRIBUTION ANALYSIS

13. Internal analysis

Logistic chain Significant Important Moderate Average Insufficient

Logistic chain durability

Logistic chain efficiency

Logistic chain flexibility

Logistic chain management

Supply chain regulation and control

Value chain By using the value chain model, one can analyse the distribution channel’s value-creating activities.

The primary activities consist of the up-stream activities of product supply and the downstream

activities of product distribution and selling to buyers. Support activities are designed to integrate the

value chain's primary activities.

Significant Important Moderate Average Insufficient

Physical value chain management

Virtual value chain management

Trans-National Level value chain

National Industry Level value chain

Distribution Channel Level value chain

Infrastructure


Vertical Integration

Inventory Carried

Inventory Turn

Distribution

Logistics

Marketing


16

Human Resources Significant Important Moderate Average Insufficient

Managerial Executives

Supervisory Staff

Functional Employees

Technical

Warehousing

Logistics

Marketing

Selling

Technology Significant Important Moderate Average Insufficient

Technology Used

Technology Development

New Services Development

Delivery / Transit Times

Procurement


Inputs

Inventory Management

In-house Handling

Order Placement

Stock Control

Product Source Development

Supplier Prices

Supplier Sales Terms


17

Inbound logistics Significant Important Moderate Average Insufficient

Supply Channels

Materials Reception

Storage & Handling

Stock Levels

Stock Efficiency (stock days)

Outbound logistics Significant Important Moderate Average Insufficient

Warehousing

In-house Distribution Logistics

Transit points

Distribution Hubs

Distribution Modes


Wholesaling Networks

Marketing and Sales Significant Important Moderate Average Insufficient

Marketing Organisation

Sales Organisation

Marketing Channels

Advertising Activities

Promotional activities

In-house Marketing to End Users

Third Party Marketing to End Users

Service Significant Important Moderate Average Insufficient

Customer Handling

Returns Handling

After-Sales Services

Customer Satisfaction


18

14. The Macro Environment for Distribution

To illustrate the macro environment for the Distribution Channels one can use of the PEST model.

Political Factors Significant Important Moderate Average Insufficient

Sustainable growth in existing markets due to Political Factors

Sustainable growth in new markets due to Political Factors

Overall Risk due to Political Factors

Overall New Market weaknesses due to Political Factors

Bureaucratic obstructions

Countervailing and anti-dumping duties

Import bans and restrictions

Intellectual property rights protection

Non-tariff barriers

Non-transparent and restrictive regulations and standards

Obstacles to the establishment and provision of services

Overall regulatory frameworks

Product subsidies

Quotas

Regulations regarding Distribution Channel formation and operation

Regulatory and inconsistent customs administration

Restricted market access

Subsidies which sustain loss making local enterprises

Tariff barriers

Technical barriers to trade

Voluntary import restraints


19

Economical and Geographical Factors Significant Important Moderate Average Insufficient

National economic conditions in existing markets

National economic conditions in new markets

Demographic changes

Disposable incomes

Financial factors

GDP

Product Consumption growth

Trade agreements

Unemployment

Socio-Cultural Factors Significant Important Moderate Average Insufficient

Socio-cultural factors

Customer aspirations

Democratic institutions

Education

Effects on Distribution Channels

Ethnicity

Human development

Language

Marketing message

Democratic Norms

Technological Factors Significant Important Moderate Average Insufficient

Automated operations

Investments in technology

Minimize Storage costs

Systems consistency

Storage process

Reduction of Storage time


20

15. The Micro Environment for Distribution Channels

Buying behaviour SOR Significant Important Moderate Average Insufficient

Buyer Survey attitudes

Purchasing Behaviours

Customer Loyalty

External stimuli:

Advertising

Media coverage

Prices

Branding

Location Efficiency

Location Stimuli

Organism:

Customer psychology

Consumption characteristics

Cultural background for Products

Influence-able

Learning abilities

Lifestyle

Memory & recall

Motivational factors

Perceptions

Personal factors

Personal values

Pliability

Response:

Impulsive

Considered

Deferred


21

Buyer behaviour Significant Important Moderate Average Insufficient

Marketing Stimuli

Environmental Stimuli

Buyer Attitudes

Buyer Motivation

Buyer Perceptions

Buyer Personality

Buyer Lifestyle

Buyer Knowledge

Buyer problem recognition

Buyer information search

Buyer alternative evaluation

Buyer purchasing decision mode

Buyer post-purchase behaviour

Buyer product choices

Buyer brand choices

Buyer point of sale choice

Buyer purchase timing

Buyer purchase amount

Competitors


Competitive Financial Strengths

Competitive Product Strengths

Competitive Marketing Strengths

Competitive Facilities

Competitive Management Strengths

Competitive Product Distribution

Competitive Customer Base

Competitive Economies of Scale

Competitive Product Innovation


22

Distribution Channel type Significant Important Moderate Average Insufficient

Intensive Distribution Levels

Selective Distribution Levels

Exclusive Distribution Levels

Intensive Distribution Buyer Levels

Selective Distribution Buyer Levels

Exclusive Distribution Buyer Levels

Media Influence Significant Important Moderate Average Insufficient

Broadcast & Media

Online & Social

Trade Press

Billboards

On-site

Endorsement


23

16. The competitive situation

Suppliers bargain power


Differentiation of inputs

Dynamic Pricing policies

Supplier power

Input Cost / Differentiation

Potential Supplier forward integration

Substitute inputs

Supplier concentration

Supplier distribution channels

Supplier Speculation with input pricing

Supplier Switching

Threats from new entrants to the Distribution Channels Significant Important Moderate Average Insufficient

Barriers to entry

Absolute cost of entry

Access to distribution logistics

Reputation of new entrants

Capital requirements

Cost disadvantages independent of size

Customer loyalty to established distributors

Economies of scale

Expected competitor reaction

Government policies

Industry profitability

Operating cost differences

Product Offering differentiation

Switching costs / Sunk costs


24

Competition from alternative Distribution modes Significant Important Moderate Average Insufficient

Buyer Propensity to change

Ease of change

Economic rationale for change

Price Performance of changes

Service Differentiation

Switching costs

Service Efficiency differentiation

Service Efficiency of substitutes

Range of available options

Buyers bargain power Significant Important Moderate Average Insufficient

Bargaining leverages

Buyer concentration

Buyer dependency on sources

Buyer price sensitivity

Buyer (RFM) Values

Existing substitutes

Market Information available

Price elasticity

Price negotiation by Buyer

Service uniqueness

Total market size

Competitor Rivalry Significant Important Moderate Average Insufficient

Marketing activities of competitors

Competitive mode of service supply

Competitive Strategy - Market Share

Competitive transparency

Competitor advantage durability

Competitor concentration


25

DISTRIBUTION OBJECTIVES

17. Capital Investments, Premises, Stocking, Staff and Locations

Eff

icie

nt

Tim

ely

Dep

en

da

ble

Fle

xib

le

Co

st

eff

ecti

ve

Ine

ffe

cti

ve

Un

kn

ow

n

Capital investment & premises

Stocking efficiencies

Staff hiring and training

Distribution Logistics Systems

18. Marketing activities

Eff

icie

nt

Tim

ely

Dep

en

da

ble

Fle

xib

le

Co

st

eff

ecti

ve

Ine

ffe

cti

ve

Un

kn

ow

n

Research

Planning

Strategy

Buyer Targeting

Organisation

Advertising

Sales

Distribution Logistics

After-Sales Services


26

19. Penetrate and raise awareness in the targeted market


Target Market Penetration

Raising awareness amongst target buyers

20. Achieving a higher profit margin


Profit Margin achievements

21. Building the customer base


Local Customer Base building

National Customer Base building

Regional Customer Base building

International Customer Base building

22. Expansion potential Significant Important Moderate Average Insufficient

Business expansion

Service Range expansion

23. Reputation for service


General Service Reputation

General Reputation for Efficiency

National Reputation

International Reputation


27

Part 2.2 Aloe Vera Trade Buyers

2.2 TRADE BUYERS

This section will investigate the following Aloe Vera Trade Buyers in the Aloe Vera World markets.

The data is based on a series of existing DataGroup databases.

Products purchased by Trade Buyers:-

1. Aloe Vera Extracts

2. Aloe Vera Concentrates

3. Aloe Vera Gel

3. Aloe Vera Powders

Trade Buyers analysed by industry:-

1. Cosmetic Products

2. Health & Dietary Supplements

3. Personal Care Products

4. Pharmaceuticals

5. Traditional Medicines

6. Other Applications

Major Manufacturers:

Calmino group AB, Sweden

Chemolee Lab Corporation, USA

Concentrated Aloe Corporation, USA

Health Natural Solution Int., USA

Lifestream International Ltd., New Zealand

Natural Technology, Inc. USA

Optima Health & Nutrition Ltd, UK

Perfect Source Natural Products Inc., USA

Pharmachem Laboratories, Inc., (incorporating Improve USA), USA

Santrel International, Canada


28

Major Manufacturers with a Retail operation:

Aloe Life International, USA

Aloe Vera Group ApS, Denmark

Aloevin Corporation, USA

Coats Aloe International Inc, USA

Cosway Corporation Berhad, Malaysia

Nature's Way Products, Inc., USA

Nu Life International (Asia) Ltd., Hong Kong

PHARMOS NATUR GREEN LUXURY GmbH, Germany

RBC Life Sciences, USA

Major Distributors and Retailers:

Aloe Vera of America / Forever Living Products International, USA (Also are growers)

Herbalife International of America Inc, USA – Multi-level retailer

Lexli International, USA

LR Health & Beauty Systems GmbH. Germany – Direct marketing

Miracle of Aloe / Winning Solutions, Inc., USA

1. Trade Buyers

The DataGroup Surveys reveal the following population of Aloe Vera Trade Buyers:-

Trade Buyers

Argentina 45

Australia 171

Austria 3

Bahamas 3

Bangladesh 46

Belgium 13

Benin 1

Brazil 26

British Virgin Islands 5

Bulgaria 46

Cameroon 16

Canada 101

Chile 10

China 6132

Colombia 11

Costa Rica 3

Cote D'Ivoire 2

Croatia 20

Cyprus 24


29

Czech Republic 27

Denmark 5

Dominican Republic 7

Ecuador 17

Egypt 31

El Salvador 2

Estonia 13

Ethiopia 4

Finland 14

France 40

Georgia 9

Germany 89

Ghana 17

Greece 99

Guatemala 1

Guyana 2

Hong Kong 272

Hungary 27

India 1901

Indonesia 115

Iran 34

Ireland 38

Israel 88

Italy 137

Japan 629

Jordan 69

Kenya 38

Kuwait 6

Latvia 18

Lebanon 19

Lithuania 16

Macau 24

Madagascar 6

Malaysia 154

Maldives 1

Mauritius 10

Mexico 44

Mongolia 1

Morocco 60

Nepal 3

Netherlands 43

New Zealand 43

Nigeria 35

Norway 2

Oman 4

Pakistan 317


30

Panama 4

Peru 24

Philippines 85

Poland 41

Portugal 18

Puerto Rico 5

Romania 19

Russia 15

Saint Lucia 1

Saudi Arabia 35

Senegal 4

Serbia 1

Seychelles 19

Singapore 57

Slovakia 60

Slovenia 6

South Africa 54

South Korea 899

Spain 113

Sri Lanka 40

Sudan 2

Sweden 9

Switzerland 14

Taiwan 763

Tanzania 3

Thailand 322

Trinidad and Tobago 8

Turkey 552

Uganda 4

Ukraine 22

United Arab Emirates 150

United Kingdom 246

United States 1201

Uzbekistan 6

Venezuela 20

Vietnam 248

Zambia 1

Zimbabwe 2


31

2. Trade Buyers Purchases by Application

The DataGroup Surveys reveal that Trade Buyers are making Aloe Vera purchases for use in the following products:-

Creams & Lotions & Body Products 33.5%

Cosmetics 18.7%

Face Products 16.3%

Feedstocks & Raw Materials 12.3%

Mixed Juices 3.6%

Sunscreen 3.4%

Facial Cleanser 3.4%

Flavoured Juice 2.7%

Extracts 1.9%

Dietary Juice 0.8%

Mixed Supplements 0.7%

Processed Products 0.6%

Dietary Products 0.6%

Beauty Products 0.3%

Fruit Products 0.2%

Food Products 0.15%

Pharmaceuticals 0.08%

Traditional Medicines 0.07%

Frozen Foods 0.03%

Dairy Foods 0.03%

The largest Application area specified by Trade Buyers is Personal Care Products, of for this

application the Trade Buyers report the following Aloe Vera purchases:-

Product Feedstock Usage

Moisturizers Aloe (Various) 13.2%

Other Skin Care Preparations Aloe (Various) 9.6%

Skin Cleansing Creams - Lotions Aloe (Various) 5.6%

Makeup Bases Aloe (Various) 5.5%

Body - Hand Skin Care Preparations Aloe (Various) 5.5%

Other Shaving Preparation Products Aloe (Various) 4.8%

Bath Soaps - Detergents Aloe (Various) 4.6%

Other Bath Preparations Aloe (Various) 4.5%

Hair Conditioners Aloe (Various) 4.2%

Suntan Gels - Creams - Liquids Aloe (Various) 3.8%

Shampoos Aloe (Various) 3.7%

Aftershave Lotion Aloe (Various) 3.7%

Blushers Aloe (Various) 3.3%

Shaving Cream Aloe (Various) 3.2%

Face - Neck Skin Care Preparations Aloe (Various) 3%

Deodorants Underarm Aloe (Various) 2%


32

Indoor Tanning Preparations Aloe (Various) 1.9%

Skin Fresheners Aloe (Various) 1.7%

Other Eye Makeup Preparations Aloe (Various) 1.5%

Paste Masks - Mud Packs Aloe (Various) 1.5%

Bath Oils - Tablets - Salts Aloe (Various) 1.4%

Eyeliner Aloe (Various) 1.4%

Face Powders Aloe (Various) 1.2%

Depilatories Aloe (Various) 1.2%

Feminine Deodorants Aloe (Various) 1%

Bubble Baths Aloe (Various) 0.9%

Other Personal Cleanliness Products Aloe (Various) 0.9%

Night Creams - Lotions - Powders Aloe (Various) 0.8%

Other Fragrance Preparations Aloe (Various) 0.6%

Other Hair Preparations Aloe (Various) 0.6%

Eye Makeup Remover Aloe (Various) 0.5%

Lipstick Aloe (Various) 0.5%

Eye Lotion Aloe (Various) 0.4%

Hair Tonics - Dressings Aloe (Various) 0.4%

Body - Hand Sprays Aloe (Various) < 0.1%


Moisturizers Aloe Extract 9.7%

Other Skin Care Preparations Aloe Extract 7.8%

Body - Hand Skin Care Preparations Aloe Extract 5.7%

Suntan Gels - Creams - Liquids Aloe Extract 5.4%

Other Bath Preparations Aloe Extract 4.6%

Skin Cleansing Creams - Lotions Aloe Extract 4.4%

Aftershave Lotion Aloe Extract 4%

Other Shaving Preparation Products Aloe Extract 4%

Eye Shadow Aloe Extract 3.9%

Shampoos Aloe Extract 3.7%

Makeup Bases Aloe Extract 3.7%

Bath Soaps - Detergents Aloe Extract 3.5%

Hair Conditioners Aloe Extract 3.4%

Shaving Cream Aloe Extract 3.4%

Blushers Aloe Extract 3.2%

Skin Fresheners Aloe Extract 2.4%

Face - Neck Skin Care Preparations Aloe Extract 2.2%

Indoor Tanning Preparations Aloe Extract 2.2%

Other Suntan Preparations Aloe Extract 1.9%

Bath Oils - Tablets - Salts Aloe Extract 1.7%

Other Eye Makeup Preparations Aloe Extract 1.7%

Face Powders Aloe Extract 1.6%

Bubble Baths Aloe Extract 1.3%

Paste Masks - Mud Packs Aloe Extract 1.3%


33

Eyeliner Aloe Extract 1.2%

Deodorants Aloe Extract 1.2%

Other Personal Cleanliness Products Aloe Extract 1.2%

Night Creams - Lotions - Powders Aloe Extract 1.2%

Baby Lotions - Oils - Powders - Creams Aloe Extract 1.1%

Feminine Deodorants Aloe Extract 0.8%

Depilatories Aloe Extract 0.8%

Other Fragrance Preparations Aloe Extract 0.6%

Lipstick Aloe Extract 0.6%

Other Baby Products Aloe Extract 0.5%

Other Hair Preparations Aloe Extract 0.5%

Eye Lotion Aloe Extract 0.4%

Eye Makeup Remover Aloe Extract 0.4%

Hair Tonics - Dressings Aloe Extract 0.4%

Mascara Aloe Extract < 0.1%

Colognes - Toilet Waters Aloe Extract < 0.1%

Powders Aloe Extract < 0.1%

Hair Sprays Aloe Extract < 0.1%

Hair Straighteners Aloe Extract < 0.1%

Rinses Aloe Extract < 0.1%

Foundations Aloe Extract < 0.1%

Rouges Aloe Extract < 0.1%

Other Makeup Preparations Aloe Extract < 0.1%

Cuticle Softeners Aloe Extract < 0.1%

Nail Polish - Enamel Aloe Extract < 0.1%

Other Manicuring Preparations Aloe Extract < 0.1%

Preshave Lotion Aloe Extract < 0.1%

Body - Hand Sprays Aloe Extract < 0.1%


Moisturizers Aloe Gel 9.6%

Body - Hand Skin Care Preparations Aloe Gel 7.4%

Other Skin Care Preparations Aloe Gel 6.8%

Other Personal Cleanliness Products Aloe Gel 6.7%

Skin Cleansing Creams - Lotions - Liquids Aloe Gel 4.6%

Hair Dyes - Colors Aloe Gel 4.4%

Bubble Baths Aloe Gel 4.1%

Hair Tonics - Dressings Aloe Gel 3.8%

Face - Neck Skin Preparations Aloe Gel 2.6%

Skin Fresheners Aloe Gel 2.5%

Bath Soaps - Detergents Aloe Gel 2.3%

Shaving Cream Aloe Gel 2.2%

Other Shaving Preparation Products Aloe Gel 2.1%

Hair Conditioners Aloe Gel 10.2%

Shampoos Aloe Gel 10%


34

Aftershave Lotions Aloe Gel 1.7%

Indoor Tanning Preparations Aloe Gel 1.6%

Paste Masks - Mud Packs Aloe Gel 1.5%

Hair Bleaches Aloe Gel 1.4%

Other Fragrance Preparations Aloe Gel 1.3%

Suntan Gels - Creams - Liquids Aloe Gel 1.3%

Other Eye Makeup Preparations Aloe Gel 1%

Baby Lotions - Oils - Powders - Creams Aloe Gel 0.9%

Deodorants Aloe Gel 0.8%

Other Bath Preparations Aloe Gel 0.7%

Eye Makeup Remover Aloe Gel 0.7%

Other Baby Products Aloe Gel 0.6%

Hair Sprays Aloe Gel 0.6%

Permanent Waves Aloe Gel 0.6%

Other Manicuring Preparations Aloe Gel 0.6%

Eye Shadow Aloe Gel 0.5%

Powders - Dusting - Talcum Aloe Gel 0.5%

Wave Sets Aloe Gel 0.5%

Foundations Aloe Gel 0.5%

Other Makeup Preparations Aloe Gel 0.5%

Other Suntan Preparations Aloe Gel 0.5%

Bath Oils - Tablets - Salts Aloe Gel 0.4%

Eye Lotion Aloe Gel 0.4%

Rinses Aloe Gel 0.4%

Other Hair Preparations Aloe Gel 0.4%

Depilatories Aloe Gel 0.4%

Night Creams - Lotions - Powders Aloe Gel 0.4%

Mouthwashes - Breath Fresheners Aloe Gel 0.2%

Mascara Aloe Gel 0.1%

Colognes - Toilet Waters Aloe Gel 0.1%

Hair Straighteners Aloe Gel 0.1%

Hair Color Sprays - Aerosol Aloe Gel 0.1%

Face Powders Aloe Gel 0.1%

Makeup Bases Aloe Gel 0.1%

Cuticle Softeners Aloe Gel 0.1%

Baby Shampoos Aloe Gel < 0.1%

Eyebrow Pencil Aloe Gel < 0.1%

Eyeliner Aloe Gel < 0.1%

Lipstick Aloe Gel < 0.1%

Nail Creams - Lotions Aloe Gel < 0.1%

Douches Aloe Gel < 0.1%

Feminine Hygiene Deodorant Aloe Gel < 0.1%

Body - Hand Sprays Aloe Gel < 0.1%

Foot Powders - Sprays Aloe Gel < 0.1%


35

BUYER FACTORS

3. Buyer Objectives

Buyer Strategy

The buyer strategy is composed of several interrelated components which interact with the seller’s

marketing mix:

Buyer Objectives

One must consider if the buyers have themselves defined their objectives and the most basic

measure of this is their application of the standard and well know tools.

The important factor to consider is the S M A R T approach which means setting Specific,

Measurable, Assignable, Realistic, and Time-bound objectives.

Researchers and analysts interviewing purchasing managers will seek to tick as many boxes to

ascertain if the managers of the buying company have formulated their buying objectives or are aware

of their purchasing strategy.

Have purchasing managers produced formalised SMART

tools?

Very

Well

Well Not

Well

Badly

Specific

Can managers list specific targets for

procurement improvement, and what will be

the financial or other advantages seen?

Measurable How do managers quantify the indicators of

progress?

Assignable Can managers name the individual

responsible for the task(s)?

Realistic

Can managers specify what results can be

achieved, what resources must be applied to

the task(s), and what resources are available.

Time

Can managers specify when the first results

will be achieved, when the main task(s) will

be completed, and when the final results will

start to deliver a financial contribution?


36

4. Purchasing Factors Excellent Good Average Bad

Core Benefits which attract Purchasing Decisions

The physical services the being purchased.

Actual v- Expected: Purchasing Efficiency

Actual v- Expected: Service Features

Actual v- Expected: Purchasing Options

Actual v- Expected: On-Time Delivery

Actual v- Expected: Product Quality

Additional Services or Benefits.

Potential: The seller’s product / service developments and changes which may occur over time.

- 1. Market selection

Very Well Well Not Well Badly

Is the Seller adequately targeting the needs of Buyers?

- 2. Service planning


Do the Sellers properly segment products / services for their customer segments?

Does the Seller’s products / services have features which uniquely target the Buyer?

- 3. Pricing


Does the Seller’s pricing strategy reflect a quantitative expression of the value of the product to the Buyer?

Is the Seller’s pricing designed like a feature consistent with the product?

Is the Seller’s Price –v- Features matrix realistic?

Are the commercialization of the purchase(s) sufficiently profitable?


37

Are the Seller’s pricing points flexible and capable of change if required?

Do the current product pricing points create demand rather than restrict purchases?

Do Buyers consider that the Seller is doing a good job in fairly pricing the product(s)?

- 4. Place

Very

Well

Well Not

Well

Badly

Is the Market Presence of Sellers placed for optimum effect?

Are the sales channels effective in delivering the product and service benefits to Buyers?

Is the product Branding or Uniqueness attractive to Buyers?

Does the Seller offer its products via effective distribution channels?

Can the Seller guarantee and control the current supply modes?

- 5. Promotion

Very

Well

Well Not

Well

Badly

a. Pull strategies:

Do the Sellers use a PULL strategy which encourages, through advertising and sales promotions, potential buyers to seek out the products?

b. Positioning:

Do the Sellers’ promotional messages state the purpose and benefits of the product?

c. Selling:

Is the Seller’s supply arrangement well placed and not have to rely on indirect sourcing which is subject to uncontrollable conditions?

d. Communications:

Are the Buyers adequately informed of the product features and benefits and thereby persuaded to buy?

Do the Sellers fully exploit branding or customization opportunities?

Do the Sellers use Product Benefit Advertising as key message content?


38

Do the Sellers use Product Comparison advertising as key message content?

Do the Sellers use Brand advertising as key message content?

e. Customer Support and Service:

Can the Sellers’ immediate Buyers rely on good customer support and service?

f. Decision Making Unit and the Decision Making Process The actual selling process breaks down into two components: the decision making unit (DMU) and the

decision making process (DMP).

The DMU decision making unit

The DMU consists of all of the people who will play a role in the decision to purchase a product. The

marketing mix program must understand the needs of each of these individuals and find a way to

communicate the marketing message to each of them. These people are typically identified as:

Vital Important Useful Marginal

Buyer – the person who actually pays for the product

Decider – the person that actually says this is the product wanted

Influencer – whomever helps the decider decide

User – the individual who actually uses the product and derives benefit from it

The DMP decision making process

The people included in the decision making unit (DMU) interact to make the purchasing decision.

The (DMP) is a description of this interaction. By understanding this process the Distribution Channel

can best understand who, how, and when to work on getting the customer to buy.

Very

Well

Well Not

Well

Badly

Do the Sellers adequately understand the DMU?

Do the Sellers adequately understand the DMP?


39

5. Sellers’ Sales Strategy

Is the Sellers’ Sales Strategy Customers oriented?

Do the Sellers understand the relative complexity of the market?

Do the Sellers differentiate themselves from their competitors?

Do the Sellers reap any benefits from the price –v- value function?

Do the Sellers understand the Buyer’s expected purchasing volumes and budgets?

Do the Sellers fully understand the Buyer’s purchasing needs:

Very

Well

Well Not

Well

Badly

The Buyers and End Users?

The relative complexity of the purchasing decision?

The differentiation in products and suppliers?

The price –v- value function?

The expected purchase volume?

Have the Sellers defined their target customers?

Have the Sellers determined their outreach and which sales strategy will be most effective with the target customers?

Do the Sellers know the needs and aspirations of their customers?

Are the Sellers able to deliver on promises and customer expectations and thereby build a relationship with their customers?

Do the Sellers adequately understand the critical aspects of their sales strategy?


40

6. Buyers’ Strategic Alliances Very Many Many Some Few

Supplier alliances

Manufacturing alliances

Logistic alliances

Supply Chain alliances

Joint ventures

Equity alliance

Non-equity alliance

Geographic alliances

7. Buyer Operations

Evaluation of the operations strategies which influences the Buyer’s performance:

Eff

icie

nt

Tim

ely

Dep

en

da

ble

Fle

xib

le

Co

st

eff

ecti

ve

Ine

ffe

cti

ve

Un

kn

ow

n

New product/service development strategy

Vertical integration strategy

Facilities strategy

Technology strategy

Workforce and organization strategy

Capacity adjustment strategy

Supplier development strategy

Inventory strategy

Planning and control systems strategy

Improvement strategy

Risk Reduction strategy


41

Published by The DataGroup Stiftung, Vaduz, Liechtenstein. Copyright © by DataGroup Stiftung. All rights reserved. No part of the contents of this document may be reproduced for third party distribution or transmitted to third parties in any form or by any means without the written permission of the publisher. DataGroup publications are available worldwide only through authorized distributors.

All trademarks are recognized and are used as only an identifier and as Fair Comment as allowed in United States copyright law and the decisions of the European Court. Microsoft, Word, Excel, Access, Windows, and associated logos and identifiers are trademarks of Microsoft Corporation. The copyright and trademarks of the U.S. Government Printing Office, Bureau of the Census, U.S. Department of Commerce, U.S. Office of Management and Budget, U.S. General Accounting Office, National Technical Information Service and other U.S. Government Departments and Agencies are recognized. The copyright and trademarks of all publishers and producers of ancillary documentation and software are recognized.