Combined Issue Oct-Nov.2015

e-magazine

Featuring

EXPORT MARKETING

&

UTTAR PRADESH EXPORT PROMOTION COUNCIL

EXPORT PROMOTION BUREAU EXPORT PROMOTION BUREAU EXPORT PROMOTION BUREAU EXPORT PROMOTION BUREAU

UTTAR PRADESHUTTAR PRADESHUTTAR PRADESHUTTAR PRADESH

We welcome your suggestions/feedback. Do write to upepblko@gmail.com

EDITORAL BOARD

Patron:

Dr. Rajneesh Dubey , IAS

Export Commissioner/ Principal Secretary,

MSME & Export Deptt. Govt. of U.P.

Editor: Arvind Kumar Singh, IAS

Addl. Export Commissioner/ Special Secretary,

MSME & Export Deptt. Govt. of U.P.

Executive Editor: R.K.Singh,

Joint Export Commissioner

Associate Editor: Umesh Chandra- Dy. Commissioner,

Rajesh Kumar- Asstt.. Commissioner

Compiler: Veena Sharma-

Addl. Statistical Officer

Contents Pg

Editorial

Export Marketing 1 - 2

Export Marketing Strategies 3 - 6

Challenges to Export Marketing 7 - 7

Bureau News 8 - 8

Media Buzz 9 - 9

GOs/Circulars/Notifications 10 – 11

Indian Handicrafts and Gifts Fair (IHGF) Autumn 2015 12 - 13

Published by:

Export Promotion Bureau U.P. PICUP Building , A-Block, Ground Floor. Vibhuti Khand,

Gomti Nagar, Lucknow -226010,

Telefax: 0522-2721194, 4012211

Website: www.epbupindia.com

Email: upepblko@gmail.com

From the Desk of Editor………………………

Dear Readers,

In a constantly declining trend of exports in the current FY, exports during

September, 2015 valued at US$ 21844.98 million (Rs. 144652.67 crore) stood 24.33

per cent lower in Dollar terms (17.67 per cent lower in Rupee terms) than the level of

US$ 28867.71 million (Rs.175703.03crore) during September, 2014, owing to

decreased global demands. This trend has concerned the policy makers at each level

and measures are being taken to cope with the situation by GoI.

In lines with this, Government of Uttar Pradesh have approved the formation of "Uttar

Pradesh Export Promotion Council" (UPEPC) to promote, support, protect, maintain

and increase the export of Uttar Pradesh thus giving a thrust to exports of major

exporting items of the State. The Council will address and cater to the problems/needs

of fifteen major export product groups/areas of the State which also includes

'Transport, tourism and hospitality' by preparing a strategy for growth for each of

these fifteen groups. I believe that strategies to be adopted by UPEPC will lead to a

better scenario for exporters and exports from the State as well.

Wishing you all a happy and prosperous Diwali !

(R.K.Singh)

Joint Export Commissioner

EXPORT MARKETING

According to B. S. Rathor “Export marketing includes the

management of marketing activities for products which

cross the national boundaries of a country”.

“Export marketing means marketing of goods and services beyond

the national boundaries” i.e. to other countries of the world as per

the procedures framed by the exporting country as well as by the

importing country.

Export marketing has wider economic significance as it offers various advantages to the national

economy. It has brought back several nations back from the dead.

FEATURES

Systematic Process – Export marketing is a systematic process of developing and distributing

goods and services in overseas markets. The export marketing manager needs to undertake

various marketing activities, such as marketing research, product design, branding, packaging,

pricing, promotion etc.

Large Scale Operations – Normally, export marketing is undertaken on a large scale. Emphasis

is placed on large orders in order to obtain economies in large sole production and distribution of

goods.

Dominance of Multinational Corporations – Export marketing is dominated by MNCs, from

USA, Europe and Japan. They are in a position to develop worldwide contacts through their

network and conduct business operations efficiently and economically.

Trade barriers – Export marketing is not free like internal marketing. There are various trade

barriers because of the protective policies of different countries. Tariff and non-tariff barriers are

used by countries for restricting import.

Documentation – Export marketing is subject to various documentation formalities. Exporters

require various documents to submit them to various authorities like bill of lading.

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Need / Importance of Export Marketing at the National Level:

1) Earning foreign exchange – Exports bring valuable foreign exchange to the exporting country,

which is mainly required to pay for import of capital goods, raw materials, spares and

components as well as importing advance technical knowledge.

2) International Relations – Almost all countries of the world want to prosper in a peaceful

environment. One way to maintain political and cultural ties and peace with other countries is

through international trade.

3) Balance of payment – Large – scale exports solve BOP problem and enable countries to have

favourable BOP position. The deficit in the BOT and BOP can be removed through large-scale

exports.

4) Reputation in the world – A country which is foremost in the field of exports, commands a lot

of respect, goodwill and reputation from other countries.

5) Employment Opportunities – Export trade calls for more production. More production opens

the doors for more employment opportunities, not only in export sector but also in allied sector

like banking, insurance etc.

Need / Importance of export marketing

1)Reputation – An organization which undertakes exports can become famous not only in the

export markets, but also in the home market. For example, firms like Phillips, , Sony, coca cola,

Pepsi, enjoy international reputation.

2) Optimum Production – A company can export its excess production after meeting domestic

demand. Thus, the production can be carried on up to the optimum product

3) Spreading of Risk – A firm engaged in domestic as well as export marketing can spread its

marketing risk in two parts. The loss is one part (i.e. in one area of marketing) can be

compensated by the profit earned in the other part / area.

4) Higher profits – Exports enable a business enterprise to earn higher prices for goods. If the

exporters offer quality products, they can charge higher prices than those charged in the home

market and thereby raise the profit margin.

2

Export Marketing Strategies

Export marketing is a serious issue for most growing companies in today's interconnected global

economy. Whether to export or not, where to and how to, are the major questions for companies

willing to expand their international markets.

Export marketing is not just a process to find buyers/importers and approach them with the

expectation of export orders but a well planned strategic marketing process one should follow

and perform well to get success in International Market.

Action plan for Strategic marketing:

Strategic marketing action plan is a set of key functional areas of export marketing which should

be performed well and followed step by step to get succeed in Export marketing. Performing

following key tasks step by step will give you a rapid success in export marketing with

sustainable and profitable export sales growth.

Step-1 : Identify your target market

First step of export marketing is to identify target market and market needs where your

products/services has good market potential and demand. There are many countries in world and

you should pick right one(s) for your product and services. If you know your target market and

market needs, you could easily get export orders from those countries. You can identify target

market by conducting International Market research activity that will give you detailed

knowledge of opportunities in International market.

Step-2 : Developing Export Marketing strategies

After identifying target market, second step of export marketing is to develop a right Export

Marketing Strategies including market entry strategy, positioning strategy, product strategy,

pricing strategy, branding strategy, supply strategy and promotional strategy according to target

market needs. Based on the conclusions of the International market research, you will be able to

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develop the strategy to meet your export marketing objectives. Your Export Marketing strategies

should be able to develop a sense,

• To enter in right market where your products/services has good market potential and demand

• To position appropriately that give you and edge over competitor• To develop products/services

that satisfy needs of buyer,

• To offer prices that give both of you and your buyer a competitive advantage,

• To offer own brand or private label solution

• To supply as per ready stock or buyer’s requirements

• To promote your company that creates awareness among buyers/importers

If you have developed right export marketing strategies you could enter and develop

international market faster with sustainable export sales growth.

Step-3 : Preparing Marketing Communication tools

Once you have developed strategies based on target market needs, third step is to prepare

informative and appealing marketing communication tools like Company Profile, Sales letter,

Product Catalogue, Brochures, Website etc. that can supports in positioning and promoting your

company. Your all marketing communication tools should be well designed, informative,

professional and appealing that can deliver all necessary information of your company and

products/services to prospective buyers/importers and influence their decision to start business

communication with you.

Step-4 : Promotion

After preparing marketing communication tools, next step is Promotion which plays a major role

in export marketing success. Main objective of promotion is to create awareness among

buyers/importers of what you are and what you offer. Promotional mix should be cost effective

and should deliver right message, in right time and at right place. Promotion should lead

buyers/importers to get attention, capture interest and take action in initiating business

communication with you. Internet is the best cost effective and fastest promotion tool in present

export marketing practices. It has been seen that major buyers/importers using search engines,

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B2B portals and directories to find and contact genuine suppliers. So presence of your company

profile and products/services in major search engines like Google, yahoo and B2B portals like

Alibaba.com will give your company a global exposure and creates awareness among

buyers/importers effectively. Participating in Trade fairs, Exhibitions and catalogue shows is also

a good offline promotional strategy which can generate a direct and live contact with

buyers/importers.

Step-5 : Generating Export Inquiries

Success in export Marketing begins with generating genuine export inquiries from prospective

buyers/importers which requires expertise and focused work of promotion, sourcing genuine

buyers and approaching them professionally. One should study buyer's profile and/or buy leads

to know whether you can offer them what they requires. It has been seen that many suppliers

contact majority of those buyers/importers who have no interest in their product/services without

understanding their profile and needs. A Buyer/importer can send you inquiry only when he

needs your products/services either better than his existing supplier in terms of either Quality,

Price, Services and/or developing more suppliers and/or for other reasons. So contact them by

offering competitive advantage which can get them interested to send you inquiries which can be

converted in to export orders by communicating and negotiating professionally.

All above steps are inter connected and can only give results if each step performed or

performing well. Export marketing is a continuous process and all those key functions can be

reviewed and modified time to time as per changing global economic and market situation.

IMPORTANCE OF EXPORT MARKETING

1)Increased Sales and Profits. Selling goods and services to a market the company never had

before boost sales and increases revenues. Additional foreign sales over the long term, once

export development costs have been covered, increase overall profitability.

2)Enhance Domestic Competitiveness Most companies become competitive in the domestic

market before they venture in the international arena. Being competitive in the domestic market

helps companies to acquire some strategies that can help them in the international arena.

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3)Gain Global Market Shares. By going international companies will participate in the global

market and gain a piece of their share from the huge international marketplace.

4)Diversification. Selling to multiple markets allows companies to diversify their business and

spread their risk. Companies will not be tied to the changes of the business cycle of domestic

market or of one specific country.

5)Lower Per Unit Costs. Capturing an additional foreign market will usually expand production

to meet foreign demand. Increased production can often lower per unit costs and lead to greater

use of existing capacities.

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CHALLENGES TO EXPORT MARKETING

1 Technological differences- The developed countries are equipped with sophisticated

technologies less developed countries, on the other hand, lack technical knowledge and latest

equipments.

2 Reduction in export Incentives– Over the years, the Govt. of India has reduced export

incentives such as withdrawal of income tax benefits for majority of exporters. The reduction in

export incentives de-motivates exporters

3 Several competitions in global marketing– Export marketing is highly competitive. Indian

exporters face three-faced competition while exporting.

4 Problem of product standards– Developed countries insist on high product standards from

developing countries like India. The products from developing countries are subject to product

tests in the importing countries.

5 Problem in preparing Documents– Export involves a large number of documents. The

exporter will have to arrange export documents required in his country and also all the

documents as mentioned in the documentary letter of credit. In India, there are as many as 25

documents.

CONCLUSION

Marketing is defined as using all of the resources of the organization to satisfy customer needs

for a profit. The difference between export marketing and domestic marketing is simply that it

takes place across national borders. This means that the exporters have to face with barriers to

trade. They may need to account for getting the product half-way across the globe to distant

markets and pay the import duties imposed on these products by the importing country. Export

marketing also involves preparing an offering that will entice the foreign buyer and customer.

This offering comprises a product that is offered at a certain price and that is made available or

distributed to the foreign customer. At the same time, the offering is communicated or promoted

to the buyer using certain communication or promotion channels. These elements the product,

price, distribution (place) and promotion are called the marketing mix.

Source: http://www.ikonmarket.com

7

Bureau News

UP Govt. announces export promotion

council for the State

In order to promote export from the State, the UP cabinet granted its approval on setting

up 'UP Export Promotion Council' to encourage exports by way of creating a favorable

atmosphere, identifying new markets, quality control and packaging as per the international

standards, apprising the industry with the new techniques among others for helping in export

promotion. The referred Council will focus on preparing strategies for export promotion in

following 15 product/services group:

1. Agriculture and Meat 2. IT & Electronics

3. Handicrafts 4. Handlooms

5. Carpets and Durries 6. Perfumery, Fragrances & Essential Oils

7. Pharmaceuticals & Menthol 8. Marble, Stone, Ceramics & Pottery

9. Leather & Leatger Products 10. Readymade Garments

11. Sports Goods 12. Engineering Goods

13. Horticulture & Food processing 14. Tourism, Transport & Hospitality

15. Others

For this, Panel Committees shall be constituted for each product/services group

comprising of a convener and four other members from respective trade fields.

The Council shall work for up-gradation of ICD/CFS as per transaction volume and

better connectivity to rail and road network, setting up of warehouses/ showrooms in overseas

markets, establishing design centre, design lab, design bank, tool rooms, formation of SHG for

new exporters, innovation for export of new value added products and for establishing of Raw

Material Banks (RMB).

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Media Buzz

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Notifications/Circulars/GOs

(To be Published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section ii)

Government of India Ministry of Commerce & Industry

Department of Commerce Udyog Bhawan

Notification No. 23 /2015-2020

New Delhi, Dated: 7 October, 2015

Subject:- Export Policy of rice. S.O. (E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992

(No. 22 of 1992), as amended, read with Para 1.02 of the Foreign Trade Policy, 2015-20, the Central Government

hereby makes the following amendment, with immediate effect, in Chapter 10 of Schedule 2 of ITC (HS)

Classification of Export & Import Items relating to export of rice:

2. The existing entries against Sl. No. 55, 56 & 58 of Chapter 10 of Schedule 2 of ITC(HS) Classification of Export

& Import Items are replaced as under:

Chapter 10

Cereals

Note 1 Export of wild variety of wheat and paddy seed is restricted. See chapter 12 for details.

Sl. No Tariff Item

HS Code Unit Item Description Export

Policy Nature of Restriction

55 1006 20 00 1006 30 1006 30 10 1006 30 90 1006 40 00

Kg. Non Basmati Rice

Free 1. Export to be made by private parties from privately held stocks. State Trading Enterprises (STEs) including M/s. NCCF & NAFED are also permitted to export privately held stocks of non-Basmati rice. 2. Export shall be through Custom EDI ports. Export is also permitted through the non-EDI Land Custom Stations (LCS) on Indo-Bangladesh and Indo-Nepal border subject to registration of quantity with DGFT. RAs Kolkata & Patna and such other RAs as notified by DGFT from time to time will be the designated RAs for the purpose of such registration of quantity.

56 1006 10 10 Kg Rice of seed quality Restricted Export permitted under license subject to following conditions: (i) submission of following documents to Customs at the time of export: (a) A license to carry on the business of a dealer in seeds

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issued under Section 3 of the Seed Control Order (1983) from the State Government; and (b) Declaration that the export consignment of seeds has been chemically treated and is not fit for human consumption; and (ii) Export packets will be labeled that seeds are treated with chemical insecticides and cannot be used for food or feed purposes.

58 1006 10 90 Kg Other [rice in husk (paddy or rough) other than seed quality]

Restricted Export permitted under license.

3. Effect of this notification: Export of rice of seed quality has been moved from ‘Free’ to ’Restricted’ category.

(Anup Wadhawan) Director General of Foreign Trade

E-mail: dgft[at]nic[dot]in

(Issued from File No. 01/91/180/775/AM10/ Export Cell)

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Indian Handicrafts and Gifts Fair (IHGF) Autumn 2015

Indian Handicrafts and Gifts Fair popularly known as IHGF, Autumn 2015 was organized by Export

Promotion Council for Handicrafts (EPCH) New Delhi from 14th to 18th October 2015 at India Expo

Centre & Mart, Greater Noida Expressway, Greater Noida, Delhi (NCR).

Product categories on display included:

1. HOUSEWARE,

2. BATHROON ACCESSORIES

3. GARDEN DECORATIVES

4. LAMPS, LIGHTING & ACCESSORIES

5. FURNITURE, FURNITURE HARDWARE & ACCESSORIES

6. HOME FURNISHINGS & MADEUPS

7. CARPETS, RUGS & FLOORINGS

8. FASHION JEWELLERY & ACCESSORIES

10. CHRISTMAS AND FESTIVE DECOR

11. CANDLES, INCENSE STICKS and POTPOURRI

12. DECORATIVE, GIFTS (INCLUDING CORPORATE GIFTS)

13. CANE, BAMBOO, NATURAL FIBER & ECO FRIENDLY PRODUCTS

14. BAGS, LUGGAGE & LEATHER GOODS

Manufacturers & exporters of handcrafted products drawn from all major export oriented districts of Uttar

Pradesh exhibited their merchandise at the show. The visitors were overseas buyers.

Export Commissioner , Uttar Pradesh Dr. Rajneesh Dube also visited the Fair.

Buyers at the stall exhibiting Metal art ware of Moradabad, U.P.

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Export Commissioner , Uttar Pradesh Dr. Rajneesh Dube visiting Agra marble work at the Fair

Aerial view of stalls at the Fair

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