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Status: British Overseas TerritoryArea: 153 sq km (59 sq miles)Population: 27,000 (estimate for 2005)Capital: Road Town, Tortola

Languages: EnglishReligion: ChristianCurrency: US Dollar Major political parties: National Democratic Party(NDP), Virgin Islands Party (VIP).

Governor: His Excellency David PeareyPremier: The Honourable Ralph Telford O¶Neal OBE



` The British Virgin Islands, or BVI, comprise more than 40 Caribbean islands andislets with subtropical vegetation, white sandy beaches and coral reefs.

` The British overseas territory forms part of an island chain, alongside theneighbouring US Virgin Islands.

` Tourism and offshore finance dominate the economy. Beef Island airport opened in1968 and, a year later, the first yacht charter business was established, heralding the

growth of a lucrative tourist industry.` The Organization for Economic Cooperation and Development (OECD) removed the

territory from its list of uncooperative tax havens in 2002.` The Leewards were administered under a federal system until 1956. After the

Leewards had been de-federated, the BVI were granted separate colony status in1960 and were awarded a limited degree of self-rule in 1967.

` In 2002 the British Overseas Territories Act granted British citizenship to theislanders, who can hold British passports and may work in the UK and EU. The

territory has tightened its immigration regulations; illegal migrants have used theislands as a springboard to the US.` A new constitution adopted in 2007 established a greater degree of self-government.

Under this constitution, the post of premier replaced that of chief minister as head of government.



` The company is NATURE¶s HAVEN one of thelargest organized sector enterprises in the Indianfood industry. The company has made a mark for

itself in the individual quick freezing processedfruits and vegetable segment. Currently businessincludes frozen fruits, vegetables, marine foodsand ready to eat food in both domestic and

international markets.



` Agriculture accounts for a small percentage of the islands¶ GDP with omly 20% arableland and 6.67% permanent crops.

` Food in Daily Life. The BVI diet features johnnycake, peas and rice, fish and saltfish, mutton and goat, "ground provisions" such as tania, sweet potatoes andplantains, and an array of soups: fish soup, bullfoot soup, goat head soup, pea soup,and pumpkin soup. Most food is highly seasoned, and soups are commonly servedwith dumplings. A favorite local dish is fungi (cornmeal and okra) and fried fish;favored beverages are drinks made from local fruits, and include limeade, soursop,mauby, and passion fruit. Other Caribbean foods, such as jerk chicken, roti (a curry-filled pancake), and patties (meat and fish-filled dumplings) also are making their wayinto the BVI diet, as are imported processed foods and snacks.

` BVI attracts tourists from the worldover, hotels and tourist resorts and variouseateries also constitute a major need segment.



` A vast array of fruits and vegetables and marineproducts covering different countries. The sheer range of available produce will be very high.

` Speciality Indian herbs.` Freshness achieved through use of superior

technology and minimal lead time in delivery.

` International range of items.



` Caters to both the islanders and the tourists.

` Bulk purchases in hotels, villas and eateries.

` It can be sold in industries where food is the

primary raw material used and needs to bestocked in the lean season.

` Alternative ready to eat options for budgettravellers.

` Local households.` Retail outlets.

` Student community.



` Positioning is that unique attribute that may betangible/intangible which the consumer identifiesthe product with.

` In this case the positioning will be ³farm fresh´ and³exoticism.´

` A range of exotic fruits, vegetables, ready to eatand marine food from the world over and the IQF

technology to support the positioning.



` Product: Packaged foods.

` Price: Value for money and will come withg guaranteesin case of spoilage before the specified time.

` Place: Tie-ups with Local distribution channels. Onlinebooking of orders accepted.

` Promotion:

` Retailer training, education and incentives.

` Company literature and profile to be used.

` Experiential marketing.

` Brand awareness and image to be established.



` Direct export

` The company will export directly in the Island.

` Necessary trade permits will be obtained and

market research done for the purpose.` Localized professional marketing services may be

employed and franchising agreement will beformed with local retail outlets to stock the

products



` Special ³food theme´ events at retail stores and popular touristspots.

` Gourmet evenings with special invitees from the industry.

` Theme based parties with popular cuisines being presented.

` Free samples and product testing.` Good customer service support at both retail level and in case of

bulk buying.

` Inviting feedback.

` Publication of a magazine on world cuisine and gifting to buyers.



British Virgin Islands



` POLITICAL STABILITY:` Executive authority in British Virgin Islands is invested in The

Queen and is exercised on her behalf by the Governor of theBritish Virgin Islands.

` A new constitution came into force when the Legislative Council

was dissolved for the 2007 general election. The Head of Government under the new constitution is the Premier (prior tothe new constitution the office was referred to as Chief Minister),who is elected in a general election along with the other members of the ruling government as well as the members of theopposition. A Cabinet is nominated by the Premier and appointedby the Governor. The Legislature consists of the Queen

(represented by the Governor) and a unicameral House of Assembly made up of 13 elected members plus the Speaker andthe Attorney-General.



THE ROLE OF GOVERNMENT IN BUSINESS The British Virgin Islands Government is a significant purchaser in the domestic

market. It is estimated that at least 40% of all government spending on goods andservices has gone to small and mediumenterprises.

The procurement policies and procedures are such that any enterprise or individualproperly licensed to operate can do business with the BVI Government.

There are many jobs or contracts in the Government that are not subject to the openbidding process. These are normally called Petty Contracts and must be worth lessthan $60,000, according to policy. The Public Works Department uses the pettycontract system on all of its small construction jobs.

There are approximately 40 units, departments or ministries, which purchase goodsand services from local businesses via the purchase order system.. There are manyopportunities for doing business with the Government, but businesses must be awareof, and follow, the established procedures, especially as they relate to the purchaseorder system.

According to government policy, almost all purchases of goods and services valuedmore than $60,000, as a total package, must be tendered.



` Taxes` The British Virgin Islands has almost no taxation. Although there is technically income

tax in the British Virgin Islands, the effective rate is zero. There is no capital gainstax, gift tax, sales tax, value added tax or inheritance tax. The only real tax burdensimposed in the jurisdiction are:

` Payroll tax on employees within the Territory.` Stamp duty, which usually only applies to transfers of land, and transfers of shares in

companies which own land.

` Customs import duty.

` Land tax and house tax.

` EU withholding tax on interest payments to individuals resident in the EU who have

not elected to exchange information.` Various minor ancillary taxes and permit fees.

` The British Virgin Islands generally appears on most lists of recognised tax havens.



` As a tax haven, the British Virgin Islands enjoys one of the more prosperous economies of the Caribbean region, with a per capita GDP of around $38,500 (2004 est)

` The "twin pillars" of the economy are tourism and financial services.` Tourism accounts for 45% of the National Income and employs a greater number of people

within the Territory, and a larger proportion of the businesses in the tourist industry arelocally owned.

` The islands are a popular destination for U.S. citizens. The BVI are known as one of the

world's greatest sailing destinations, and charter sailboats are a very popular way to visitless accessible islands. A substantial number of the tourists who visit the BVI are cruiseship passengers.

` Economically however, financial services associated with the territory's tax haven statusare by far the more important. 51.8% of the Government's revenue comes directly fromlicence fees for offshore companies, and considerable further sums are raised directly or indirectly from payroll taxes relating to salaries paid within the trust industry sector (whichtend to be higher on average than those paid in the tourism sector).

` Agriculture and industry account for only a small proportion of the islands' GDP. Agricultural

produce includes fruit, vegetables, sugar cane, livestock and poultry, and industries includerum distillation, construction and boatbuilding.` Since 1959, the official currency of the British Virgin Islands has been the US dollar.



` Inflation rate (consumer prices):7.1% (2008 est.) 2% (2005)

` Unemployment rate:3.6% (1997 est.)

` GDP (purchasing power parity):$853.4 million (2004 est.)

` GDP (official exchange rate):$1.095 billion (2003)

`

GDP - real growth rate:-0.6% (2008 est.)

` GDP - per capita (PPP):$38,500 (2004 est.)



` Demographics` The population of the Islands is around 21,730 in 2003. The majority of

the population (83%) are Afro-Caribbean, descended from the slavesbrought to the islands by the British. Other large ethnic groups includethose of British and other European origin.

` The 2004 census reports:` 83.4% Black` 7% White` 9.6% Others*` * includes Indian and mixed` The islands are predominantly Protestant Christian (86%). The largest

individual Christian denominations are Methodist (33%), Anglican

(17%), and Catholic (10%).` The islands are heavily dependent upon migrant labour. In 2004

migrant workers accounted for 50% of the total population. 32% of workers employed in the British Virgin Islands work for the Government.



Class Structure and Education

` BVI society is divided into "belongers" and "nonbelongers." As a term of identity "belonger" refers to people of BVI parentage or birth who holdBVI citizenship. Individuals of parentage from other Caribbeancountries, and who constitute half of the total BVI population, are

designated "nonbelongers," regardless of whether they were born inthe BVI. Belongers have unrestricted rights to landownership and aregiven preference in hiring and in the allocation of trade licenses.

Education

` The British Virgin Islands operates several government schools as well

as private schools. There is also a community college, Hamilton LavityStoutt Community College, that is located on the eastern end of Tortola.



` Culture

` BVI women hold the majority of positions in education and occupy a significant number of senior positions in the civil service. BVI men occupy almost all public offices as well as asignificant number of upper-level management positions in the private sector. Nationalsfrom other Caribbean countries are the majority of service workers.

` Both men and women have suffrage at age of eighteen.

` The status of men and women alike is measured in terms of the strong independent andentrepreneurial spirit that is held to be characteristic of British Virgin Islanders.

` Individuals may enter into unions without marriage, although there is social preference for and a higher social status accrues to a legal marriage union.

` While households made up of a married couple and their children are held to be the norm,the basic BVI family structure is extended.

` The family is the basis for social identity and standing and is a primary source of social andeconomic support. Members of an extended kindred tend to live in the same area or

community. BVI family names are associated with specific BVI places or communities, andthese in turn are associated with particular activities (such as sailing, business, agriculture,education) or proclivities.



` Leisure Activities` The traditional music of the British Virgin Islands is called fungi after the

local cornmeal dish with the same name. The special sound of fungi isdue to a unique local fusion between African and European music. Itfunctions as a medium of local history and folklore and is therefore acherished cultural form of expression that is part of the curriculum in

BVI schools.. Apart from being a form of festive dance music, fungioften contains humorous social commentaries, as well as BVI oralhistory.

` Sailing is regarded as one of the foremost sports in all of the BVI. Manysailing events are held in the waters of this country, the largest of whichis a weeklong series of sailing races called the Spring Regatta.

` This is the premier sailing event of the Caribbean. The Spring Regatta

is part race, part party, part festival. There are races, games, and musicduring the day, and some crazy partying at night. The Spring Regatta isnormally held on the first week of April, annually.



` Attitudes` British Virgin Islanders place great importance on

mannerly behavior. The right of individuals to privacyalso is held dear.

`

The business culture in BVI is a mix of local, Americanand European values. Consumers except businesspractices and codes of conduct equivalent to those inthe industrialized world of which they are quite aware.BVIslanders like the personal touch and they seekvalue for money.

` Businesses in the BVI have a long record of contributing to worthy social and community objectivesand consumer look forward to this goodwill continuing.



` The BVI is a small but sophisticated market whichis very open and well-connected to the rest of theworld through telecommunications, marine

shipping and commercial air transport and USAsatellite television.

` In addition this way connectedness is extendedthrough the INTERNET and integration into North

American and European banking and financialsystems



` The BVI were one of the first countries in the region to establish aGovernment department directly responsible for the management of theenvironment. In addition, the National Parks Trust was established tomanage the system of land and marine national parks. Even with theheavy flow of incomes from financial services today, the environmentmakes tourism the most dynamic sector in the economy. The BVI

environment is fragile, very productive and contributes substantially tothe present standard of living.` Settlement planning and the rational use of land and other natural

resources have become increasingly important in the BVI in recentyears. The population has increased by 47% in the last ten years, andapproximately 34% of the population resides in the Greater Road Townarea. Of the 38,248 acres (15,499 ha) of land that make up the Islands,approximately 61% is privately owned and 39% is considered CrownLand and belongs to the BVI Government.



` Constitutional Law` A new constitution was granted on 13 June 2007, coming into effect

fully after the 2007 general election.` The first drafts of the new constitution focussed heavily on a distinct

cultural identity, contain commitments to uphold human rights, the ruleof law, and professes a national belief in God. The drafts of the new

constitution expressly preserve the right to discriminate against non-belongers in relation to taxation and employment.` Contract Law` British Virgin Islands contract law is almost entirely based upon English

common law. The British Virgin Islands has no equivalent of theContract (Rights of Third Parties) Act 1999.

` Import licences are required for a small number of goods, mostlyfoodstuffs. ( Heavy fines and long jail sentences are imposed for thepossession, sale or use of narcotics



` Property Law` The principle legislation dealing with property rights is the

Conveyancing and Law of Property Act (Cap 220), which isbased on much earlier English legislation.

` Non-residents wishing to purchase property in the British Virgin

Islands must obtain a Non-Belongers Land Holding License.

` Trusts and equity` The British Virgin Islands law relating to trusts and equity is

derived directly from English law, but has been modified bylegislation to reflect the position of the Territory as an offshorefinancial centre. The usual features for offshore trusts are allempowered by statute in the Territory - non-charitable purposetrusts, extended perpetuity periods, abrogation of the rule inBartlett v Barclays Bank and widened investment powers.



` Labour law - The British Virgin Islands labour law has been entirely designed aroundprotecting the local workforce from outside competition. Any person who does not havebelonger status requires either a work permit or an exemption; local employers areprohibited from employing foreigners where there is a suitably qualified local person.

` Immigration law - Similarly, the British Virgin Islands takes an extremely restrictiveposition in relation to immigration. Even birth in the country is not sufficient to grantbelongers status (unless the person is born to parents who are themselves belongers).Laws in the British Virgin Islands openly discriminate against non-belongers. For example,

stamp duty on the purchase of land is 4% for belongers and 12% for non-belongers.` Investigatory laws -. There is a raft of legislation designed to investigate and curb

unlawful tax evasion, money laundering and terrorist financing. The unfortunate result of this is a patchwork quilt of rules of regulations that are extremely complex to follow, evenfor experienced practitioners and judges. Some of the laws reflect bilateral agreementswith specific countries, some relate to specific times of crime, and some have genericapplication.

` Under the Income Tax Act, businesses are required file financial statements at prescribedtimes after which certain penalties may occur. Presently the rate of income taxes onbusinesses is 15% on net profits.



` Specific Laws` Generally speaking, commercial law is relatively

well developed in the British Virgin Islands. Thecompany law and insolvency law statutes are

cutting edge. New legislation has been introducedto try and foster e-commerce in the jurisdiction.Other legislation is slightly variable; legislationrelating to arbitration and bills of exchange are not

so modern, but still operate effectively.



` Competition law

` In the British Virgin Islands, there is almost no competition law to speak of. In fact, theposition is actually the reverse. A number of specific statutory monopolies are protectedand preserved by legislation in the Territory,[and in other areas, new entrants to themarkets are carefully scrutinised, and may be barred from entering where they mightprovide competition for local businesses.

` Company law

` In 2004, the BVI Business Companies Act, 2004 was incorporated and it is the corporatestatute.

` The BVI Business Companies Act is based largely on New Zealand company law, but hasbeen modified to include many of the characteristic features of offshore financial centres(such as removing restrictions on financial assistance and thin capitalization, andpermitting distribution in spec i e). It has also adopted some slightly novel and radical steps,such as abolishing the concept of share capital and rules relating to share premium. Someof these developments were a little advanced even for the offshore market, and have taken

some time to bed down.` It is also possible to form limited liability partnerships in the British Virgin Islands under the

Partnerships Act, 1994.



Strengths e ness

Opportunities Thre ts



` Established company and high quality standards.` Expertise in Individual Quick Freezing (-18 degreec)` IQF is the process of rapidly decreasing the temperature of

vegetable/fruit/ meat from -18c to -24 c.

` This rapid freezing halts the activities of all micro organisms that causedecay and destroy food stuff. The biggest advantage is that one doesnot have to defrost the entire package to take out a small portion andthe food remains fresh till the time of consumption. Further processingenhances shelf life of the produce and hence reduces wastage.

` Certification Global standard for food safety and ISO 22000: 2005certification i.e food safety management systems from India

` Customer Focus` Wide range of offerings.` Good demand segment in the market for the offering.



` Lack of detailed knowledge about local marketsand distribution channels.

` Marine business is a high volume and low margin

business with average margins of around 5-6%.

` Supply chain management.

` High operating cost for market entry andtransportation.

` Highly perishable product.



` Hotel & tourism is a lucrative sector. Packaged foods has a good demand in theislands in hospitality and retail sector.

` The British Virgin Islands generally appears on most lists of recognised tax havens.

` US dollar is the official currency in the BVI - therefore, by definition, there can be nocurrency controls and no artificial manipulation of money supply by the localgovernment.

` BVI are a British Overseas Territory, which provides for an outstanding politicalstability. The country also maintains a low international profile and a clean reputation.

` BVI has an independent judicial system based on English Common Law. Laws andregulations are routinely developed in consultation with the private sector.

` BVI is an independent country with a fairly high standard of living.

` The government is pro-business and gives incentive packages to welcome FDIs.

` BVI is easily accessible by sea and air, has modern telecommunications and is onUS Eastern Standard Time (1 hour behind EST in winters).



` Existing competitors who have marketing anddistribution channels already established.

` Lack of brand loyalty since it¶s a new introduction.

` Freshly produced local produce.` Low visiblility as it is majorly sold in bulk and

meant for B2B customers.

` The availability may be affected due to natural

causes like change in climatic conditions etc.





` These are direct or indirect limits or restrictions on the ability of potential suppliers to enter a particular market.. Amarket with such barriers to entry may see existing suppliers (known as incumbents) protected from competitionand the threat of competition.

` Entry barriers may also arise directly from actions taken by incumbent suppliers that make entry more difficult. For example, incumbents may raise the costs to buyers of switching to a new entrant. Regulations limiting who mayoperate in a particular market create direct barriers to entry.

` Regulatory barriers can operate to deny buyers choice and protect incumbents from any threat of competitionwithout correcting any market failure. In particular, quantitative entry restrictions (where there are direct limits on

the number of suppliers).

` Analysis

` Natural entry barrier in the chosen market because of difficulty inestablishing reputation.

` Government regulations favour the entry of new businesses.

`

High level of differentiation and R&D (IQF) provides certain immunity toNature¶s Haven.



` There is no threat of backward integration frombuyers as the product differentiation is high.

` Since sourcing is done from world over there

might be threat of availablity.` Due to large number of tourists demand for multi

cuisine product line of Nature¶s haven will be indemand.

` Concentration of suppliers in the chosen segmentand speciality is not very high.



` Bargaining power of buyers may be a threat if alarge number of suppliers enter the market.

` The volume of sale is high giving them high

bargaining power.` The high level of product attention, superior

technology, range and differentiation to ensurebuyer satisfaction.

` Promotional strategies and attention to buyer feedback and demands necessary.



` Threat of substitute products in the chosen category islow.

` There is a high level of differentiation in the products.

` Nature¶s Haven to establish brand in the market to

thwart competition from substitute products.

` Threat from local produce may arise but is limited asexoticism is one of the brand strengths.



` Threat from existing competitors with better distribution channels especially local supplierswith lower operating cost.

`

Low level of competition in the category.` Innovative product offering and good branding.



Apeksha Choudhury

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