exports

HSY sports 2012

Export Marketing

By Nadeem Akhtar Janjua

Project Report on HSY sports

By: Saad Asghar (08108182)

Haider Ijaz Butt (08108138)

On: 20/02/2012

Export Marketing Page 1

HSY sports 2012

Acknowledgement:

We are very thankful to everyone who all supported us, for we have

completed our project effectively and more over on time.

We are equally grateful to our teacher Mr. Nadeem Akhtar. Who gave us

moral support and guided us in different matters regarding the topics. He

had been very kind and patient while suggesting us the outlines of this

project and correcting our doubts. We thank him for his overall supports.

Last but not the least, We would like to thank our parents and our partners

who helped us a lot in gathering different information, collecting data and

guiding each other from time to time in making this project . We all friends

put a team effort to complete and make it a great project.


HSY sports 2012

This project is dedicated to Great Almighty Allah who is most merciful and

beneficial. This report is also dedicated to my parents and Respectable

instructor whose knowledge & Struggles brought me to this Height of

Knowledge. In the end I would like to dedicate this project to all those people

who encouraged me a lot to make this effort timely.


HSY sports 2012

Purpose of Entering Exporting Business

The purpose of entering export business is

increased revenues and profits

Alternatives to stagnant domestic markets

improving efficiency

attracting better employees and shareholders

Purposes for your export business plan:

The goal of this export plan is to gain affiliations with upcoming the most successful country

regarding sports and sports products. If successful in Germany HSY sports has the potential to

substantially expand its trade beyond the boundaries of Italy and later on some of the European

countries that are having a high markup at the present time.

To prepare best strategy in order to enter in the Germany market successfully

Overall purposes of your export business plan:

To enter in the foreign market with accurate action plans; based on reliable information

Business expansion

Goals aimed at overall purpose:

- Profit maximization

- Provision of quality and unique products

- Develop brand later on.

- Seeking response resulting whether to install the self manufacturing plant


HSY sports 2012

Background

Product line:

Knee pads

Boxing gloves

Motorbike shoes

Selected product:

Boxing gloves

Background:

Boxing gloves are cushioned gloves that fighters wear on their hands during boxing matches.

The term also refers to gloves used in training, though these often differ from competition

gloves. Modern boxing gloves were developed to protect the hands of the striker. Specialized

gloves are now available for competitions, sparring practice and other types of training. The use

of modern boxing gloves typically results in fewer superficial facial injuries but does not reduce

the risk of brain damage for participants, and may even increase it because of the ability to throw

stronger punches to the head without hurting the hands.

Gloves used in amateur boxing are frequently red or blue, with a white "scoring area" to help

judges more easily see and record points. Common weights for gloves in the United States are

sixteen, twelve and eight ounces. Many athletes train with heavier gloves than they will use in

competition as a way to increase endurance.


http://en.wikipedia.org/wiki/Amateur_boxing

http://en.wikipedia.org/wiki/Boxing

http://en.wikipedia.org/wiki/Glove

HSY sports 2012

History

The use of hand protection in fighting contests undertaken for sport has been known since at

least Ancient Greece. In the 2nd century, Clement of Alexandria credited the mythological

Amycus, son of Poseidon and King of the Bebryces in Anatolia, with having invented boxing

gloves.

It is generally acknowledged that the inventor of the modern boxing glove was an English

champion fighter named Jack Broughton. Broughton fought, as did all boxers of his day, with

bare knuckles. Broughton developed his gloves—known as mufflers—so that the gentry could

practice boxing at the gymnasium without inflicting serious damage. The gloves were reserved

for such uses; all public contests were still fought with bare fists. In 1743, Broughton codified

the first modern rules of boxing. Strangely, his rules make no mention of gloves. Then in 1867,

John Graham Chambers, a member of London's Amateur Athletic Club, published the Marquis

of Queensberry rules. Line eight of the rules reads, "The gloves to be fair-sized boxing gloves of

the best quality, and new." (The rules also mention that no shoes with springs are to be used.)

The rules were gradually adopted for amateur competition, and the use of thinly padded or

skintight leather mitts became more widespread. Still, most public and professional bouts were

fought with bare knuckles.

Boxing experienced a revival in Britain around the 17th century. Subsequently, the popularity of

bare knuckle fights has waned, and they are now of dubious legality in some countries.


http://en.wikipedia.org/wiki/File:Ouch-boxing-footwork.jpg

http://en.wikipedia.org/wiki/File:Ouch-boxing-footwork.jpg

HSY sports 2012

The modern padded glove owes its origin to Jack Broughton, who created a form of boxing

glove (referred to as 'mufflers') in the 19th century.

Raw Materials

The skin of a boxing glove is top grain tanned leather, most often cowhide

or goatskin because of their durability and flexibility. Lesser-quality gloves

will be made from vinyl, but most sanctioning bodies—amateur and

professional—require leather gloves. Some manufacturers line their gloves

with another layer of leather, but the majority use nylon taffeta. Gloves are

stitched with nylon thread and padding is of high-density polyurethane,

A pair of boxing gloves.

Latex, or polyvinyl chloride (PVC) foam delivered in sheet form. Historically, cotton batting has been used as padding and many manufacturers still use this material to pad some portion of their models. Some manufacturers also use horsehair.

Design

The primary design consideration involves the glove's padding. In order for a padding material to

be effective, it must absorb energy by compressing. The more it compresses, the more energy it

absorbs. If a material compresses too much, it ceases to be useful because it becomes simply a

thin layer of dense material. Partly because of this, different weight classes require gloves of

different weights. A glove's weight is changed by adding or removing layers of padding. If the

same glove weight was required for all weight classes, blows thrown by the largest and heaviest


http://www.madehow.com/Volume-6/Cotton.html

http://en.wikipedia.org/wiki/Jack_Broughton

HSY sports 2012

boxers would compress the padding beyond its useful range, while blows thrown by the lightest

boxers would barely compress the material at all. In addition, many materials that offer excellent

energy absorption also display a characteristic known as memory. Once compressed, these

materials maintain their deformed state for an extended period of time so that the initial blow

with a glove offers normal protection, but subsequent blows are virtually unpadded.

The Manufacturing Process

Patterns and cutting

All boxing gloves are cut, assembled, stitched, stuffed, and finished by hand. The manufacture of

a glove begins with a pattern of the individual pieces. While every manufacturer has a different

pattern, the basic pieces are the palm, which is cut with a slit down its middle that will eventually

form the closure section of the glove; the knuckle area, which is always made from a single piece

of leather to avoid seams; the thumb, which is made from two halves; the cuff, which is cut as a

wide strip; and a thin strip that will be folded over and sewn onto the edge of the cuff and the

closure area to finish the glove. The knuckle piece is cut to be larger than its finished size so that

space is left for stuffing.

Leather arrives from the tannery in large pieces and is laid out on large cutting tables.

The patterns are placed on the leather and arranged to make the most efficient use of that

piece. The patterns are then traced onto the leather and the pieces are cut with large

scissors. Meanwhile, similar patterns are traced onto the lining material and those pieces

are cut. Pieces are made to line the palm, the thumb, the cuff, and the knuckle area.

Assembly and stitching

The leather shell of a boxing glove is first sewn together inside out. Stitching is often

done on an industrial sewing machine with some of the smaller pieces and finish work

being completed by hand. Many of the higher quality gloves are stitched entirely by hand,

and double stitching is used throughout all quality gloves.

The oversized knuckle piece is stitched to the palm piece. The two pieces are fitted over a

buck to assure the correct shape and the seam is gathered so that the knuckle piece


HSY sports 2012

balloons slightly. Gathering the seam also causes the glove to take on its trade-mark

clenched fist shape.

Then, the liner pieces are stitched onto this assembled section and the palm is stuffed

with padding. The liner is left open at the bottom of the glove, where the cuff will be

attached. On many models, the back halve of the thumb piece is cut as part of the knuckle

piece, and the inner half is sewn onto the knuckle and palm pieces. On others, the thumb

is stitched together separately; its lining is attached, and its padding is stuffed. The

assembled thumb piece is then stitched onto the glove.

Stuffing the glove

The entire glove assembly is now turned right side out. As it is more

economical for manufacturers to purchase padding material in standard

sheet form, the padding for the knuckle area is made by layering sheets of

the material and then cutting it to the desired shape. This also allows glove

makers to use one standardized thickness of padding for many glove weights

and specifications rather than purchasing or manufacturing a different

molded piece for every glove model.

The pattern for the glove being made is traced onto the padding material

and it is cut. Depending on the manufacturer, pattern pieces may be cut in

mass beforehand and kept in stock for assembly.

The cut pieces are layered to the specified thickness and are stuffed into the

pocket between the knuckle area and its lining.

Finishing the glove

The last piece to be stitched to the glove is the cuff. The cuff and its lining are stitched

together, and the piece is stuffed. The ends of this assembly are not stitched together as

the piece will eventually form part of the gloves closure area.

The assembly is stitched to the open end of the glove piece, closing off all the open

pockets and sealing the glove's padding.


HSY sports 2012

On If the glove is to be closed with laces, a template is laid over the opening now formed

on the glove's underside by the slit in the palm and the open ends of the cuff, and laces

holes are punched with an awl. Each hole is strengthened with stitching, and the entire

lace area is finished with several rows of stitching.

If the gloves are to be closed with hook and loop material, the loop side is sewn onto the

outside face of the cuff, and the hook side is stitched onto the cuff's opposite edge.

A single thin strip of leather is folded over the open edge of the cuff and the lace area and

is stitched in place to finish the glove. The maker's label and any required sanctioning

body labels are sewn onto the back of the cuff and the finished gloves are packaged for

shipping.

Quality Control

Virtually every country and state has a boxing commission that regulates professional bouts.

Every one of these commissions has its own rules and regulations governing the conduct and

equipment of a boxing match. Most amateur competitions in the United States are governed by

USA Boxing or Golden Gloves, and each of these bodies specify particular requirements for

gloves used in their bouts. What most gloves used today have in common is that they have been

tested by the Wayne State University Sports Biomechanics Department in Detroit, Michigan.

The University tests a boxing glove by fitting it onto a maple block in the approximate shape of a

human fist. The block is attached to a hydraulic ram that can be fired at predetermined rates of

acceleration. The gloved block is fired at a biometric human form (a test dummy) that has been

fitted with sensors that measure impact. The impact readings for various accelerations are

translated onto a scale called a severity index and gloves must fall within a certain range to be

acceptable.

The Future

The most surprising aspect of boxing gloves is how little they have changed.

The first gloves were leather mitts with little or no padding. Today's gloves

have added padding to a greater or lesser degree but not much else. Boxing

in general seems to be highly resistant to both change and regulation. For

over a hundred years, fighters resisted wearing gloves at all. And since

then, they have thwarted most efforts at innovation. The movement to


HSY sports 2012

remove the thumbs from gloves, for example, has only succeeded in a few

arenas. Gloves have become more heavily padded in recent years and the

padding materials themselves have grown more resilient, but many experts

insist that this simply allows fighters to punch harder and inflict more

damage.

List of Sources of product & industry information:

Cospo agencies

Company Name COSPO AGENCIES(PVT)LTD.

Contact Person MR.MUHAMMAD AHMED SARWAR

Products Range WORKING GLOVES, FANCY GLOVES,LEATHER GOODS.

Phone Number 6526049 6527340 (Country Code: +92, City Code: 52)

Fax Number 6527190/527199

Address Motor bike Textile and leather Garment, Motorbike Gloves, Leather goods, Safety Apparels, All kind of working gloves including Boxing Gloves and Fancy Gloves.

Email Address cospo skt.comsats.net.pk


HSY sports 2012

Star Pak martial Arts

Starpak Group of Companies

Multi-National Group of Manufacturers, Exporters, Importers & Distributors.

Main Factories Located At: Wazirabad Road, Ugoki, Sialkot, Pakistan

Tel: 92- 52-3556611 FAX: 92-52-3556615

e-mail: [email protected] web: www.starpak.com.pk

Starpak is multi national group whose roots go back to three generations since 1935.We were the first company in Pakistan to develop and start producting high quality Boxing and Martial Arts Protection products in 1984 and thus a new industry was born. Starpak now literally acts as an institution for this industry.

Sarrar industry

Company Name SARRAR INTERNATIONALContact Person MR.MUHAMMAD FAROOQProducts Range GLOVES/LEATHER GARMENTS

Phone Number6527192 6526049 6526965 (Country Code: +92, City Code: 52)

Fax Number 6527190-527199Address 12 KM DASKA ROAD, GHUINKI,

SIALKOT

TOP-IN-TOWN sports co


http://www.starpak.com.pk/

mailto:[email protected]

HSY sports 2012

TOMPAKO industries

Tompako industries

43 Aziz Shaheed Colony

Sialkot Cantt , 51310

Pakistan

Mobile : +92-3006121811

Email : [email protected]

Email : [email protected]

Manufacturers and exporters of all kind of leather jackets, boxing gloves, winter gloves, motorbike gloves, cycling gloves, mechanics gloves, protective gloves, industrialgloves, safety gloves, boxing groin guards, boxing headguards, boxing chest guards, boxing focus pads, boxing shorts, boxing bag gloves, boxingshoe, speed balls, boxing equipments, martial arts products, karate shoe,leather garments, cordura jacketsManufacturers and exporters of all kind of leather jackets,boxing gloves, winter gloves, motorbike gloves, cycling gloves, mechanics gloves, protective gloves, industrialgloves, safety gloves, boxing groin guards, boxing headguards, boxing chest guards, boxing focus pads, boxing shorts, boxing bag gloves, boxing shoe, speed balls, boxing equipments, martial arts products, karate shoe,leather garments, cordura jackets.....

List of Sources of product & industry information:

Secondary sources

http://en.wikipedia.org/wiki/Boxing_glove

Fcci.com.pk

http://www.topintown.com/

http://www.messe-berlin.com/

http://www.expertboxing.com/boxing-equipment/what-boxing-gloves-to-use

Primary sources

Starpak martial arts

W-bros

Cospo agencies


http://www.expertboxing.com/boxing-equipment/what-boxing-gloves-to-use

http://www.messe-berlin.com/

http://www.topintown.com/

http://en.wikipedia.org/wiki/Boxing_glove

mailto:[email protected]

mailto:[email protected]?subject=General%20Informations

HSY sports 2012

Role of similar businesses:

Other sports Gloves manufacturing companies of similar size are playing vital role in the market.

. Our competitors will try their level best to compete us in terms of pricing as well as service and

quality

HSY sportsMISION

To be the recognized sports products leader in export, through total commitment to customer

service, by maintaining our uncompromising integrity, in the support and development of our

People, Communications and Systems in sustained growth and profitability.

VISION

To set the standard for excellence in global export through total commitment to quality in people

and customer service, with superior financial results. To solve reliable export services to the

needs of the business community. Reliable services means on-time delivery, undamaged goods,

and correct documentation in case of deviations. To perform continuous business improvement

in order to meet and exceed customer expectation,

Quality :-

By maintaining high standards of quality in the work culture and products that is in exports and

the services that it provide.

Cost:-

By always remaining competitive by world standards and maintaining or else by using market

penetration strategy.

Export:

levels that achieve economies of scale.


HSY sports 2012

Delivery:

By delivering goods on time with excellent planning and cutting down the overall lead time.

Development:-By developing cost effective and innovative products without compromising on

quality.

Safety:-By providing a world class, safe and hazard free work environment to its

employees.

Moral:

By always keeping its moral standards high and conducting its business with dignity according to

the established rules and regulations.

SWOT Analysis:

Strengths

Business strengths are its resources and capabilities that can be used as a basis for developing a

competitive-advantage. Examples of such strengths include:

Patents(exclusive rights granted by a sovereign state to an inventor or their assignee for a

limited period of time in exchange for the public disclosure of an invention.)

Good reputation among customers

Easy access to finance

A creative design team

Cost advantages from proprietary know-how.

Exclusive access to high grade natural resources.

Favorable access to distribution networks.


http://en.wikipedia.org/wiki/Invention

http://en.wikipedia.org/wiki/Sovereign_state

http://en.wikipedia.org/wiki/Exclusive_right

HSY sports 2012

Weaknesses

The absence of certain strengths may be viewed as a weakness. For example, each of the

following may be considered weaknesses:

Lack of patent protection.

A weak brand name.

Poor reputation among customers.

High cost structure.

Lack of access to the best natural resources.

Lack of access to key distribution channels.

Opportunities:

The external environmental analysis may reveal certain new opportunities for profit and growth.

Some examples of such opportunities include:

An unfulfilled customer need.

Increase in the number of gyms and leisure centres will provide new opportunities for the

products involved.

This is general shift towards more indoor fitness activities due to lifestyle changes.

Arrival of new technologies.

Loosening of regulations.

Sports participation in Germany is increasing day by day

Removal of international trade barriers.

Threats

Changes in the external environmental also may present threats to the firm. Some examples of

such threats include:

Shifts in consumer tastes away from the firm's products

Emergence of substitute products.

New regulations.


HSY sports 2012

Increased trade barrier

According to Porter (1990), the structure analysis of an industry is

1) The threat of new entrants.

2) The threat of substitute products or services.

3) The bargaining power of suppliers.

4) The bargaining power of buyers.

5) The rivalry among existing competitors.

Background of our product line:

We have selected one product to export. According to our market research Germany is most

interested country in terms of sports products and one of the leading country regarding sports and

related products

- Gloves


HSY sports 2012

Methods of Exporting

Direct Exporting:

Direct exporting means you export directly to a customer interested in buying your product. You

are responsible for handling the logistics of shipment and for collecting payment.

The advantages of this method are:-

Your potential profits are greater because you are eliminating intermediaries.-

You have a greater degree of control over all aspects of the transaction.-

You know who your customers are.-

Your customers know who you are.

They feel more secure in doing business directly with you.-

Your business trips are much more efficient and effective because you can meet directly

with the customer responsible for selling your product.-

You know whom to contact if something isn't working.-

Your customers provide faster and more direct feedback on your product and its

performance in the marketplace.-

You get slightly better protection for your trademarks, patents and copyrights.-

You present yourself as fully committed and engaged in the export process.-

You develop a better understanding of the marketplace.-

As your business develops in the foreign market, you have

Greater flexibility to improve or redirect your marketing efforts

The disadvantages:

- It takes more time, energy and money than you may be able to afford.- It requires more "people power" to cultivate a customer base.- Servicing the business will demand more responsibility from every level of your

organization.- You are held accountable for whatever happens. There is no buffer zone.- You may not be able to respond to customer communications as quickly as a local agent

can.-


HSY sports 2012

You have to handle all the logistics of the transaction.- If you have a technological product, you must be prepared to respond to technical questions, and to provide on-site start-up training and ongoing support services.

Indirect Exporting:

Indirect exporting means selling to an intermediary, who in turn sells your products either

directly to customers or to importing wholesalers. The easiest method of indirect exporting is

to sell to an intermediary in your own country. When selling by this method, you normally are

not responsible for collecting payment from the overseas customer, nor for coordinating

the shipping logistics. An export management company (EMC) is one such intermediary. A good

one will act in all respects as a global extension of your own sales-and-service presence -- more

or less what you are attempting to do on behalf of a manufacturer! EMCs offer a wide range of

services, but most specialize in exporting a specific range of products to a well-defined customer

base in a particular country or region.

The advantages are:-

- It's an almost risk-free way to begin.-

- It demands minimal involvement in the export process.-

- It allows you to continue to concentrate on your domestic business.-

- You have limited liability for product marketing problems –

- there's always someone else to point the finger at. You learn as you go about international

marketing.- Depending on the type of intermediary with which you are dealing, you don't

have to concern yourself with shipment and other logistics.- You can field-test your

products for export potential.- In some instances, your local agent can field technical

questions and provide necessary product support.

The disadvantages are:-


HSY sports 2012

- Your profits are lower.-

- You lose control over your foreign sales.-

- You very rarely know who your customers are, and thus lose the opportunity to tailor

your offerings to their evolving needs.-

- When you visit, you are a step removed from the actual transaction.

- You feel out of the loop.-

Direct or indirect exporting???

We approach customers directly in Berlin state of Germany who are working as whole

sellers.

Our choice between a direct or indirect approach to overseas markets is important as often we

cannot do both. If we commit to an intermediary they may not want to see us selling directly to

customers in ‘their’ market at the same time resulting in a reduced profit margin.


HSY sports 2012

International Skills

Export assistance and service providers:

- B2B

- Sales Representatives.

Export Assistance

Globes enterprisesAbout Us

We take great pleasure in introducing Globez importer & exporter, lahore, Pakistan. The owner mr.

Shafique ur rehman & mr. Zahid akram established business with exporting all sports goods, handicrafts,

crystal salt lamps & wide range of garments

We wish that we would become good partners in this field for mutual benefits in the coming times.

The basic business policy of globez importer & exporter is to develop long-term business relationships

with customer and the only way to achieve this is to ensure customer satisfaction. Hence we provide

unmatched customer service along with timely deliveries. We strive towards perfection we sell experience

a client is not just a buyer, he is our partner in success. We welcome you to be a partner in our path to

success.

At the same time if you have inquiries please feel free to discuss so that we can submit samples

accordingly.

For the sake of supporting you to sell our products in your market better, we promise that we could submit

you most favorable offer among the relevant manufactures. Meanwhile, we could also supply you the best

services for the products. So we warmly welcome your any requirements or suggestions about our

products.

Thank you in advance for your kind attention to this matter and look forward to hear from you in future.


HSY sports 2012

Company Profile

Basic Information

Company Name: GLOBEZ Importer & Exporter

Business Type: Manufacturer, Trading Company, Other

Product/Service(We Sell):

Boxing Range,Martial Arts Range,Wooden Handi Craft,Crystal Rock Salt Lamps

Address: H No 16 St No 3 Mian Amir uddin Park Astanae Ayyubia

Number of Employees: 11 - 50 People

Ownership & Capital

Year Established: 2004

Areas of export related skills where we need assistance:

Safe transportation of products to specific point

In time deliveries

Foreign exhibitions related to our products.

Personnel Required:


HSY sports 2012

- Marketing manager.

- Export/Import Manager.

- Merchandising Manager.

- Customer Relations Manager.

Outside Resources Required:

- Embroidery Services.

- Screen Printing Services.

- Rubber Inject Services.

- Logo Manufacturers.

C.E.O:

Mr.Saad Asghar

FINISHING AND PACKING:

Mr. Yousaf Rehman(Production executive)

Mr. Najaf Ali(Packing supervisor)

ACESSORIES STORE:

Mr. Haad Naveed(Store executive)

QUALITY CONTROL:

Mr. Abdullah Tahir(Quality controller)

Mr. Uzair Zia(Quality controller)

ACCOUNTS:

Mr. Haider Ijaz


HSY sports 2012

Finance Manager:

Mr. Umair Zia

PERSONAL-

Mr. Ahmad Aly(Personal manager)

Transportation-

Mr. Hassan Saleem(Transportation manager)

Products


HSY sports 2012

Evaluation of the products to be exported:

Specification

Sizes S M L XL

Weight 12oz 14oz 16oz 18oz


HSY sports 2012

Color Blue, Black,

Red

Blue, Black,

Red

Blue, Black,

Red

Blue, Black

Price 650/= 650/= 650/= 650/=

Packing Details:

Packing’s Available: 25kg, 50kg, 100kg

Selected packing: 100 kg

No. of small pairs in 100 kg pack= 295 pairs (1oz = 28.35gms)

No. of medium pairs in 100 kg pack= 252 pairs

No. of large pairs in 100 kg pack = 220 pairs

No. of x-large pairs in 100 kg pack= 198 pairs

Flows of commodities and services in Euro billion

ItemJune

January toJune

May JuneJanuary to

June

2010 2009

Discrepancies in the totals may occur due to rounding.

1 Exports (f.o.b.) 86.5 458.4 77.4 67.3 387.7


HSY sports 2012

Flows of commodities and services in Euro billion

ItemJune

January toJune

May JuneJanuary to

June

2010 2009

2 Imports (c.i.f.) 72.4 383.8 67.7 54.9 328.5

Balance of

3 Foreign trade (1-2) 14.1 74.6 9.8 12.3 59.2

4 Services –1.1 –4.0 –1.7 –2.7 –3.5

5 Factor income (net) 3.3 12.1 –3.5 3.7 11.9

6 Current transfers –2.5 –19.5 –1.5 0.2 –16.4

7 Supplementary trade items –0.9 –5.5 –1.3 –0.7 –4.8

8 Current account (3+4+5+6+7) 12.9 57.8 1.8 12.8 46.3

Groups of countries

ItemJune 2010

January toJune 2010

Percentage change from

June 2009January toJune 2009

Euro billion %

Total exports 86.5 458.4 28.5 18.2

Including:

EU Member States 52.6 279.9 23.5 13.7

Euro area 35.7 191.1 22.0 12.2

Non-euro area 16.9 88.8 26.6 16.8

Third countries 33.8 178.4 37.3 26.2

Total imports 72.4 383.8 31.7 16.8

Including:

EU Member States 45.9 244.5 26.1 15.2

Euro area 32.5 173.5 25.4 14.3

Non-euro area 13.4 70.9 27.8 17.4

Third countries 26.4 139.3 42.8 19.8

Geographic segmentation

Germany is a large country in size alongwith the GDP growth, and different styles exist in

different parts of the country. Differences continue to exist between luggage and leather goods

purchasing in urban as opposed to rural areas. In these areas people tend to use items longer, and


HSY sports 2012

are more rational and price conscious. They have more conservative design tastes. Further

moving Berlin in the state of Berlin is the best option for export on the basis of population and

growing trends of sports. In the wealthier urban areas, particularly Berlin, people pay more

attention to the latest techniques and designs in sports, especially for boxing gloves.

Distribution:

As we are neither opening our brand in Germany nor we are self supplying to end consumers so

we don’t need to focus on different distribution channels. Therefore we have a very simple

model:

Manufacturer à HSY sports à Export to Berlin àCustomer recieve goods from port.

Competitive Analysis:

Competitors in Target market:

ESTRELLA INTERNATIONAL

ABOUT US

Name of Company: ESTRELLA INTERNATIONAL, AIMNA ABAD ROAD, HAPPU GARHA, SIALKOT-PAKISTAN.Year of Establishment: 1979

No. of Employees : Management 10Skilled 20Semi & Unskilled 250

Production Capacity: Soccer Balls, T-Shirts, Polo Shirts, Boxing Gloves


HSY sports 2012

Member of Associations:

1- Chamber of Commerce & Industry Sialkot2- Pakistan Gloves Manufacturers & Export Association Sialkot.3- Sports Goods Manufactures & Exports Association Sialkot. 4- ISO - ILO 9001-20005- Associate member of W.F.S.G.I Switzerland

Export To Country: GERMANY, Berlin

Customers in target market

- Felix Ackermann Import Export

- Iroko Productions and distribution

We are into fashion distribution and looking at getting into fashion manufacturing in the

near future

- Maxxmen fashion

We are a young and rising company in Germany and interested to import all kind of high

qualified clothes for men with overweight, such as sports wear, hand gloves, boxing gloves, knee

pads, safety apparels, shirts, polo-shirts, and pants. So we are looking for a responsible and

serious exporter, who is able to supply us with all or a part of those mentioned garments.

- Iroko internation

We are into unique sports products distribution and looking at getting into fashion manufacturing

in the near future

- Some else whole sellers


HSY sports 2012

Export Marketing Strategy

Competitive Advantage

- Cost leadership- Product quality- Inventory turnover

- Expansion strategy

Expanding the business beyond the global boundaries for the sake of an increased profit and secure transactions.

- Differential pricing:

In adopting this approach, the demand-oriented exporter takes advantage of different price levels

in various countries by establishing a different price, based on what the market will bear, for

each export market. The success of differential pricing depends to a large degree on the extent to

which markets can be kept separate. Where markets are integrated, such as in the EU, for

example, problems could arise where the product is purchased at a low price in one country and

resold at a higher price in another country.

Price structure

Margins on sporting are recently at peak due to increasing trends in Germany in recent years, as

a result of intense competition in the supply chain, and fierce competition between retailers who

have been fighting for market share. The consolidation of the market is also bringing additional

pressures on margins, particularly at the wholesale level.

In each trade channel different margins and prices apply, with a total mark-up (including VAT)

of 3.5 up to 4.5 of the Cost Including Freight (CIF) price. The margin figures quoted in Table 2.2


HSY sports 2012

are calculated as a percentage of the price purchased from whom they buy in the chain, not as a

percentage of the CIF price.

Terms of sale and payment:

75% Advance payment and 25% on CAD (Cash against documents).

L/C Irrevocable.

Promotional Strategy:

Social Networking.

Sponsorships on sports events

Mass media advertisement

Advertising of sport and sports associations such as the Olympics, Spanish Football league and

the NFL.

Use of sporting events, sporting teams and individual athletes to promote it.

Promotion of sport to the public in order to increase participation

“Street marketing of sport” which considers sport marketing through billboards on the street and

also through urban elements (street lighters and sidewalks, etc.)

Sponsoring different clubs & races.

Perceived image in Germany: dynamic and innovative

comfortable

uniqueness


http://en.wikipedia.org/wiki/Street_marketing

HSY sports 2012

reliable and well-established

analytical solution to observed problems

We will promote our company in such ways that it come up to the above mentioned points.

Tag line“HSY ensures you the success without any damage”

USP

The Unique Selling Proposition: Finding Your "Competitive Edge"We will use our USP to promote our company. Imagine that three suppliers provide the same

service or deliver the same product.

A USP that dynamically addresses an obvious void in the marketplace can make a true difference

in establishing your Company’s image.

USP?????

When we were creating our USP we went through following questions:

Answering the following questions will help you create your USP:

• What do our customers expect from our products or services? (Quality Products)

• Which characteristics do we find unique about our company, products or services?

- In house Production.

- Sales Representative in Italy Milano.

- High quality products.

- R&D.

- Self Import of Fabric.

- Good Customer Relationship management.


HSY sports 2012

- In time production.

- Fastest sampling.

- Stop Child Labor Campaigns.

• Which advantages do these characteristics offer our customers?

- Quick Production.

- In-time strategy

- Less Defected products.

- Unique designs and innovative products.

- Attractive colors

• Can we really fulfill the promise of the USP? (Yes)

Customer service responsibility for export:

No late delivery of orders.

Consistent quality.


HSY sports 2012

Transporting MethodTransporting or sending of products to Germany will all take place through Air.

Different service providers with precise price range are as follows

Cargo intl

Pakistan cargo service

Ace cargo service

National cargo ltd

Lahore cargo

Price Range

Rs.200 to Rs.400

Appointed service provider

Lahore cargo


HSY sports 2012

Less than 500 kg = 360/-

More than 500 kg = 250/-

Packing details

Customized on the basis of requirement


Documents

exports