Submitted by Jayasankar. S

Iconz second semester

macfast

The market project is done on the certain product

like readymade garment, tea brand cigarette, edible

oil to find out the risk involved and how to compete

in a foreign market. The project is done on a

systematic information to give proper knowledge

about the risk and competition.

INTRODUCTION

Indian readymade garment industry is the one the largest exporting

sector to the European union and U.S.A . Indian readymade garment

industry is a Labor intensity sector which gives a lot of employment

opportunity to the rural people . The Indian readymade garment

Industry which exporting to the European union and to U.S.A which contributes to the

export earnings of the India.

READYMADE GARMENT INDUSTRY

Competition from other exporting countries(China and Bangladesh )

• Exchange rate fluctuation

• Diversification of goods in the foreign market

• Dynamic change in fashion

• Restriction from entering a new market

• Have to compete with countries that have low labor cost and low

raw material cost .

• Delay in delivering time (lead period)

• non availability of workers.

risk and to compete in entering foreign market for readymade garment industry?

Garment industry must be competitive by providing quality and fashionable goods

• buy the currency at current rate so that change in rate will not be effected

• The foreign market required a diversified product line which should be provided to

compete with the other players.

• known your customer

• go to other country which have no trade restriction to increases market share

• government support is required to easily avail raw material and availability of labor

force

• new technology , method and process should be implemented to reduces lead

time and increases efficiency and effectiveness.

•labor worker should be reallocated to places that require them.

How to overcome this situation?

••TEA IS AN AROMATIC BEVERAGE PREPARED BY ADDING

CURED LEAVES OF THE CAMELLIA SINENSIS PLANT TO HOT

WATER.

•TEA IS THE MOST WIDELY CONSUMED BEVERAGE IN THE

WORLD.

•IT HAS A COOLING, SLIGHTLY BITTER, ASTRINGENT FLAVOR

WHICH MANY ENJOY

TEA

BLACK TEA:•BLACK TEA IS THE MOST OXIDIZED AMONG THE VARIOUS KINDS OF

TEA.

•IT IS ALSO STRONGER AND HAS RELATIVELY MORE CAFFEINE

CONTENT THAN THE OTHER VARIETIES.

•IN THE PROCESS OF OXIDIZATION, THE WATER IN THE TEA LEAVES

EVAPORATES, AND THE LEAVES ABSORB MORE OXYGEN.

Types of tea

GREEN TEA:

GREEN TEA IS THE LEAST OXIDIZED VARIETY OF THE TEA.

IT IS ALSO ASSOCIATED WITH SEVERAL HEALTH BENEFITS. ONE

OF THE MOST PROMINENT HEALTH BENEFITS OF THE GREEN

TEA CONSUMPTION, ON REGULAR BASIS, IS THAT IT REDUCES

THE CHANCES OF HEART ATTACKS AND CERTAIN TYPES OF

CANCER TO A GREAT EXTENT

OOLONG TEA:ONE OF THE MOST POPULAR TEA IN CHINA, OOLONG TEA IS

MORE OXIDIZED THAN THE GREEN TEA, BUT LESSER THAN

THAT OF THE BLACK TEA.

IT IS ALSO ONE OF THE MOST EXPENSIVE KINDS OF TEA.

IT IS AN IDEAL CHOICE FOR PEOPLE WHO ARE WARY OF THE

STRONG FLAVOR

WHITE TEA:

WHITE TEA UNDERGOES MINIMAL OXIDIZATION; HOWEVER THE TEA

LEAVES CHOSEN TO PREPARE THIS VARIETY ARE PICKED FROM

YOUNG BUDS.

THE WHITE TEA HAS A NATURAL SWEETNESS ASSOCIATED WITH IT.

GLOBAL COMPETITION

The major competitive countries in tea in the world are Sri Lanka, Kenya,

China and Indonesia.

Another important point is that, U.K has substantial interest in tea cultivation in

Kenya. Most of the sterling companies, due to implementation of FERA Act

started tea cultivation in Kenya. So, it makes business sense for U.K. to buy

tea from Kenya and Kenya became the largest supplier of tea to U.K

importerwholesale

r retailers

Marketing channel in foreign

exporter importer distributer

consumers

consumer

exporter

Competition by low cost production countries like china, sri lanka and

Kenya.

• culture prefers different type of tea

• availability of market

• government regulation

• countries taste and preferences

• consumer buying habits

RISK AND WAY OF COMPETING IN A FOREIGN MARKET OF THE INDIAN TEA ?

• Should market tea as to cultural, taste and preferences eg : Chinese and

Japanese prefers green.

• should focus on economy of scale

• Indian government should help in the promotion and smooth working in other

country

• different tea should be marketed to the need of the market

How to Competing with the foreign market

• Edible oil imports have been liberalized since the 19--’s and now attract lower

tariffs

•No import duty on crude oils in contrast to finished products (refined oils and

hydrogenated fat)

• India is the world’s largest importer of edible oils and market demand is

expected to sustain

• Loose or unbranded oil accounts for bulk of sales compared to branded and

hydrogenated oils

EDIBLE OIL

Market

Characteristics

•Demand for imported oils to remain strong due to growing

consumption and constrained supplies

• Organized sector, earlier disadvantaged due to sales tax regime,

is not growing its market share

• Domestic production faces supply-side constraints and

inefficiencies thereby ensuring the dependence on large levels of

edible oil imports

•Rising consumption accompanied by increasing domestic

production but large imports are still necessary to bridge the gap

•Palm and soybean oils account for bulk of imports due to their

low prices

• Prices have risen at a% p.a. with a dip observed only in 2005 -

2006

Trends

• Government restriction in exporting or entering a foreign market.

• lack of raw material

• lack of technology

• competition by other big players

• In India demand for edible oil is surplus

• less production

Risk and way to compete in foreign market for edible oil of Indian company?

•Increase in production to international standard

• increase availability of raw material by increasing cultivation

• identify foreign market that have high demand for edible oil

• implement to new technology

Competing in foreign market

•THE CIGARETTE INDUSTRY IS ONE OF THE OLDEST INDUSTRIES IN INDIA.

•IT IS AN IMPORTANT AGRO BASED INDUSTRY.

•IT IS HIGHLY LABOR INTENSIVE & PROVIDES LIVELIHOOD TO ABOUT 5 MILLION PEOPLE

DIRECTLY AND INDIRECTLY.

•CIGARETTE IS AN ITEM FALLING UNDER THE FIRST SCHEDULE TO THE INDUSTRIES

(DEVELOPMENT & REGULATION) ACT, 1951 AND REQUIRES AN INDUSTRIAL LICENSE.

•IT EXPORTS A GOOD AMOUNT OF CIGARETTE IN VARIOUS COUNTRIES, WHICH

GENERATES A HANDSOME AMOUNT OF REVENUE FOR THE COMPANY.

cigarette industry

•CIGARETTE EXPORTS DURING 2007-08 INCREASED BY 11 % IN VOLUME

TERMS OVER THE EXPORTS OF PREVIOUS YEAR.

• MAJOR MARKETS FOR CIGARETTES ARE UAE AND USA, ROMANIA, SAUDI

ARABIA AND IRAQ WHERE THE DEMAND FOR GENERIC LOW COST

CIGARETTES IS GROWING.

cigarette industry

LIST OF MAJOR PLAYERS IN INDIAN CIGRATTE INDUSTRY

Godfrey Phillips

(India) Ltd.

V.S.T. Industries

Ltd.

ITC Limited

G.T.C. Industries

Ltd.

One of India’s premier private limited groups with

over 99 years.

Large & established Distribution Networks.

It has more then 21,000 employees at more then 60

location across India with 4,86,000 shareholders.

Ranks No. 4 among Indian listed Private Sector

Companies by market cap. (@ April 09)

Rated as- one of India’s Most Respected Companies

(IMRB-Business world Survey 2006)

ITCONE OF INDIA’S MOST VALUABLE CORPORATIONS

ITC HISTORY OF THE COMPANYOn 24th Aug. 1910 the company was incorporated as a

private company under the name, Imperial Tobacco Co.

of India ltd.

On 27th Oct. 1954 the company was converted into a

public limited company.

The name of the company was changed from the

Imperial Tobacco co. of India ltd., to India Tobacco co.

ltd. In May 1970.

On Oct. 1972 company entered into Hotel business.

On 2000 company has launched a project “ e- choupal”

in Bhopal to Web-enable farmers to make a beginning in

Agriculture e-trade.

During the same year ITC has launched Wills sport, a

full range of internationally styled premium wear for Men &

Women.

The second largest player in the Indian

cigarette industry.

Has two major stakeholders, one of India's

leading industrial houses - the K. K. Modi Group

and one of the world's largest tobacco

companies, Philip Morris.

GODFREY PHILLIPS INDIA LTD.

Incorporated in India in 1936, the Company

established its own manufacturing facilities in 1944

On 1946 GODFREY PHILLIPS became a Public Ltd.

Co. with its manufacturing operations in Mumbai

Its products are distributed through an extensive India

wide network comprising 484 exclusive distributors and

over 800,000 retail outlets

GPIHISTORY OF THE COMPANY

oGPC is a professionally managed organization in the field of

tobacco and tobacco related products.

oEstablished in the year 1930 by the late Shri Narsee Monjee.

oGTC is the first wholly owned company specializes in

manufacturing & exporting an exclusive range of Cigarettes,

Flavor Cigar & Non Tobacco smoking product.

oGTC has manpower strength of 2000 employees spread across

manufacturing.

oThe Company has two major production facilities in Mumbai as

well as Baroda.

GOLDEN TOBACCO LIMITEDPROFILE

Vazir sultan Tobacco. Industries ltd

The company was incorporated in 1930 at Hyderabad .

The third largest player of Cigarette industry in India.

In 1984 the name of the Company was changed from The Vazir Sultan

Tobacco Co. Ltd. to VST Industries Ltd.

The Company manufactures and distributes Cigarettes The products are sold

under the trade names `Charminar Specials', `Shah-I-Deccan', `Qila', `High

Court', `Vazir' and `Ambassador'.

•Health hazards

Foreign competition

• Trade barriers

• Market distribution risk

COMPETING IN FOREIGN MARKET

• Target countries that have lot of consumers(smokers).

•Use different market channel

Risk and the way to compete in a foreign market

The information helped in find the

risk involved in the foreign market how to compete in foreign market. As

the world becomes a globalized village which opened up new market

which gave a huge demand for goods and services. By opening up of new

market has lead to compete in competitive environment which has lead

to do a project in this manner .

conclusion