CASE STUDY-2CASE STUDY-2

IDENTIFICATION OF IDENTIFICATION OF INTERNATIONAL MARKETING INTERNATIONAL MARKETING

OPPORTUNITIES FOR OPPORTUNITIES FOR BASMATI RICE FROM INDIABASMATI RICE FROM INDIA

GROUP-5GROUP-5

INTRODUCTIONINTRODUCTION

The case analysis is about India as a major The case analysis is about India as a major producer and exporter of premium quality producer and exporter of premium quality rice i.e. Basmati rice. The data in the case rice i.e. Basmati rice. The data in the case shows the export of Basmati rice from India shows the export of Basmati rice from India in terms of value and quality from period in terms of value and quality from period 1999-2003.It also says about the major 1999-2003.It also says about the major markets of Indian Basmati rice and the markets of Indian Basmati rice and the comparison of direction of India’s Basmati comparison of direction of India’s Basmati exports in the year 1999 & 2003.exports in the year 1999 & 2003.

SALIENT FEATURESSALIENT FEATURES

Rice – the most significant staple food of more Rice – the most significant staple food of more than 70% of world’s population.than 70% of world’s population.India has the largest area (31% of total area) India has the largest area (31% of total area) under rice cultivation in the world.under rice cultivation in the world.India – 2India – 2ndnd largest producer of rice in the world largest producer of rice in the world after China.after China.Developing countries – main players in the Developing countries – main players in the world’s rice production & trade.world’s rice production & trade.Basmati rice – India and Pakistan.Basmati rice – India and Pakistan.Major markets of Indian Basmati.Major markets of Indian Basmati.

OBJECTIVEOBJECTIVE

To look for market with high To look for market with high potential for Indian Basmati in potential for Indian Basmati in international marketinternational market

Direction of India's Basmati rice exports (1999)

73%

9% 5% 1%4% 8%

S.ARABIA UK KUWAITUSA UAE OTHERS

Direction of India's Basmati rice exports (2003)

52%

10%8%

5% 4% 21%

S.ARABIA UK KUWAITUSA UAE OTHERS

STATUSSTATUS

CURRENT STATUSCURRENT STATUS – India’s Basmati rice – India’s Basmati rice export has undergone a sea change in export has undergone a sea change in terms of markets in other countries (i.e. terms of markets in other countries (i.e. 21% increased as compared to 8% in 21% increased as compared to 8% in 1999). Thus change in direction of export 1999). Thus change in direction of export of Indian Basmati in 2003.of Indian Basmati in 2003.PROPOSED STATUSPROPOSED STATUS – To look for more – To look for more international markets having high potential international markets having high potential and growth for export of Indian Basmati.and growth for export of Indian Basmati.

ANSOFF MODELANSOFF MODEL

MARKET DEVELOPMENTMARKET DEVELOPMENT – –

New geographical markets : exploring New geographical markets : exploring opportunities in international markets opportunities in international markets for export of Basmati rice from India to for export of Basmati rice from India to new country(s).new country(s).

KEY PROBLEMKEY PROBLEM

Despite large quantity of rice grown Despite large quantity of rice grown and its dynamic growth, the and its dynamic growth, the international rice market remains thin international rice market remains thin i.e. low growth of global trade of rice.i.e. low growth of global trade of rice.

BCG MATRIXBCG MATRIX

CURRENT STATUS :CURRENT STATUS : STAR – STAR –

1.1. It is because high growth and potential for entering in It is because high growth and potential for entering in new markets .new markets .

2.2. High market share – #1 exporter of Basmati rice in the High market share – #1 exporter of Basmati rice in the world.world.

PROPOSED STATUSPROPOSED STATUS : :

CASH COWS –CASH COWS –1.1. Low market growth – matured, successful business Low market growth – matured, successful business

and hence little need for investment on new market.and hence little need for investment on new market.2.2. Thus retaining a huge market share as well.Thus retaining a huge market share as well.

QUES. & ANS. - (1)QUES. & ANS. - (1)

INTERNATIONAL MARKET RESEARCH ON INTERNATIONAL MARKET RESEARCH ON POTENTIAL MARKETS:POTENTIAL MARKETS:

1.1. Collect statistics of Basmati rice exported to Collect statistics of Basmati rice exported to various countries.various countries.

2.2. Identifying the large fast - growing markets for Identifying the large fast - growing markets for Basmati.Basmati.

3.3. Then looking for the market growth whether it is Then looking for the market growth whether it is consistent or not over the past 3 to 5 years in the consistent or not over the past 3 to 5 years in the target areas.target areas.

4.4. Also selecting some smaller emerging markets of Also selecting some smaller emerging markets of high potential to have a greater competitive high potential to have a greater competitive advantage over the competitors and further study advantage over the competitors and further study of these markets for more future opportunities.of these markets for more future opportunities.

ANALYSING TARGET MARKETS :ANALYSING TARGET MARKETS :

1.1. Examine the trends of the new market which can Examine the trends of the new market which can influence demand of Basmati.influence demand of Basmati.

2.2. Calculating the overall consumption of rice or Calculating the overall consumption of rice or similar product (other than Basmati ) and then similar product (other than Basmati ) and then identifying the amount imported by the new identifying the amount imported by the new market.market.

3.3. Identifying what can affect the marketing and use Identifying what can affect the marketing and use of Basmati rice in each potential market such as of Basmati rice in each potential market such as distribution channel, cultural differences and distribution channel, cultural differences and business practices.business practices.

4.4. Identifying any foreign barrier (tariff or non-tariff) Identifying any foreign barrier (tariff or non-tariff) for import of Basmati into the target country as for import of Basmati into the target country as well as India’s barrier affecting export to that well as India’s barrier affecting export to that country.country.

5.5. Also looking for the foreign govt. as well as our Also looking for the foreign govt. as well as our govt. incentives for promoting Basmati export to govt. incentives for promoting Basmati export to the target country.the target country.

DRAWING CONCLUSIONDRAWING CONCLUSION

After analyzing the data , we can After analyzing the data , we can take decision on which markets or take decision on which markets or countries there is huge potential countries there is huge potential and opportunities for growth of and opportunities for growth of Basmati export.Basmati export.

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