CountryNotebook %281%29

8/3/2019 CountryNotebook %281%29

1/23

1

III. Market Audit and Competitive Market Analysis

Guideline

I. Introduction

Regenerated yarns industry started in Europe specially Italy & Spain then moved to Turkey &

Egypt at the same time also moved to Far East China & Indonesia according to the high labor

& power cost.

Regenerated Yarns simply considered the cheapest Yarns as there is no comparison between the

cotton price & the cotton waste price.

II. The product

Chief value cotton regenerated yarn mixed with different percentages of polyester and acrylicin white and coloursAcrylic regenerated yarn in white & colours. Yarn Counts From Ne 3 (Nm 5) to Ne 12 (Nm 20.3)in single & twisted.

*. Evaluate the product as an innovation as it is perceived by the intended market

The usage of the regenerated yarns provide the blending flexibility & the yarns cost controlling

1. Relative advantageThe advantage of regenerated yarns is that it match the global trend of environmental approach as the

regenerated yarns deducting the usage of dying chemicals with the respect of the buyer quality needs.

2. Compatibility

The product match the green industry concept providing the same level of quality .

3. Complexity

No special skills needed to use the product much more its more simple than using the normal cottonyarns .

4. Trial ability

To produce the company we could offer an industrial trails .

5. Observability


2/23

2

Most of end consumers appreciate the recycled products but if the final product will be exported

outside euorpe maybe we should do some educatinal actions if this concept is not a cultural

accepted.

III. The market

Our customers are the knitting & weaving producers, the strength we have & we could build a goodmarketing plan on it that our yarns is cheap with the worldwide quality standards ,the main constrainswe could face is the European competitors prices thats mean we have to make the balance of thelower price with the respect of the quality , as the European competitors quality is much better thanours but we could compete with them with our prices .

A. Describe the market(s) in which the product is to be sold

Our customers devided to two main categiories :

a- Knitting Manfacturers ( producers of sport socks and Knitting Fabrics T-shirts ).b- Weaving Manfacturers ( producers of Heavy fabrics used for tents , Furneture Fabrics)

1. Geographical region(s)

Location:

metropolitan France: Western Europe, bordering the Bay of Biscay andEnglish Channel, between Belgium and Spain, southeast of the UK;

bordering the Mediterranean Sea, between Italy and Spain

French Guiana: Northern South America, bordering the North AtlanticOcean, between Brazil and Suriname

Guadeloupe: Caribbean, islands between the Caribbean Sea and the North

Atlantic Ocean, southeast of Puerto RicoMartinique: Caribbean, island between the Caribbean Sea and North Atlantic

Ocean, north of Trinidad and Tobago

Mayotte: Southern Indian Ocean, island in the Mozambique Channel, abouthalf way between northern Madagascar and northern Mozambique

Reunion: Southern Africa, island in the Indian Ocean, east of Madagascar
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2144https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2144https://www.cia.gov/library/publications/the-world-factbook/fields/2144.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2144


3/23

3

Geographic coordinates:

metropolitan France: 46 00 N, 2 00 E

French Guiana: 4 00 N, 53 00 W

Guadeloupe: 16 15 N, 61 35 W

Martinique: 14 40 N, 61 00 W

Mayotte: 12 50 S, 45 10 E

Reunion: 21 06 S, 55 36 E

Map references:

metropolitan France: Europe

French Guiana: South America

Guadeloupe: Central America and the Caribbean

Martinique: Central America and the Caribbean

Mayotte: Africa

Reunion: World

Area:

total: 643,801 sq km; 551,500 sq km (metropolitan France)

country comparison to the world:43

land: 640,427 sq km; 549,970 sq km (metropolitan France)

water: 3,374 sq km; 1,530 sq km (metropolitan France)

note:the first numbers include the overseas regions of French Guiana,Guadeloupe, Martinique, Mayotte, and Reunion

Area - comparative:

slightly less than the size of Texas

Land boundaries:

metropolitan France - total: 2,889 km

border countries: Andorra 56.6 km, Belgium 620 km, Germany 451 km,Italy 488 km, Luxembourg 73 km, Monaco 4.4 km, Spain 623 km,Switzerland 573 km
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2011https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2011https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2145https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2145https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2147https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2147https://www.cia.gov/library/publications/the-world-factbook/rankorder/2147rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=43#frhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2147rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=43#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2023https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2023https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2096https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2096https://www.cia.gov/library/publications/the-world-factbook/fields/2096.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2096https://www.cia.gov/library/publications/the-world-factbook/fields/2023.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2023https://www.cia.gov/library/publications/the-world-factbook/rankorder/2147rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=43#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2147.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2147https://www.cia.gov/library/publications/the-world-factbook/fields/2145.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2145https://www.cia.gov/library/publications/the-world-factbook/fields/2011.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2011


4/23

4

French Guiana - total: 1,183 km

border countries: Brazil 673 km, Suriname 510 km

Coastline:

total: 4,853 km

metropolitan France: 3,427 km

Maritime claims:

territorial sea: 12 nm

contiguous zone: 24 nm

exclusive economic zone: 200 nm (does not apply to the Mediterranean)

continental shelf: 200 m depth or to the depth of exploitation

Climate:

metropolitan France: generally cool winters and mild summers, but mild

winters and hot summers along the Mediterranean; occasional strong,cold, dry, north-to-northwesterly wind known as mistral

French Guiana: tropical; hot, humid; little seasonal temperature variation

Guadeloupe and Martinique: subtropical tempered by trade winds;moderately high humidity; rainy season (June to October); vulnerable todevastating cyclones (hurricanes) every eight years on average

Mayotte: tropical; marine; hot, humid, rainy season during northeasternmonsoon (November to May); dry season is cooler (May to November)

Reunion: tropical, but temperature moderates with elevation; cool and dry(May to November), hot and rainy (November to April)

Terrain:

metropolitan France: mostly flat plains or gently rolling hills in north and

west; remainder is mountainous, especially Pyrenees in south, Alps ineast

French Guiana: low-lying coastal plains rising to hills and small mountains

Guadeloupe: Basse-Terre is volcanic in origin with interior mountains;Grande-Terre is low limestone formation; most of the seven other islandsare volcanic in origin

Martinique: mountainous with indented coastline; dormant volcano
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2060https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2060https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2106https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2106https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2059https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2059https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2125https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2125https://www.cia.gov/library/publications/the-world-factbook/fields/2125.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2125https://www.cia.gov/library/publications/the-world-factbook/fields/2059.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2059https://www.cia.gov/library/publications/the-world-factbook/fields/2106.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2106https://www.cia.gov/library/publications/the-world-factbook/fields/2060.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2060


5/23

5

Mayotte: generally undulating, with deep ravines and ancient volcanic peaks

Reunion: mostly rugged and mountainous; fertile lowlands along coast

Elevation extremes:

lowest point: Rhone River delta -2 m

highest point: Mont Blanc 4,807 m

note:in order to assess the possible effects of climate change on the ice and

snow cap of Mont Blanc, its surface and peak have been extensivelymeasured in recent years; these new peak measurements have exceededthe traditional height of 4,807 m and have varied between 4,808 m and

4,811 m; the actual rock summit is 4,792 m and is 40 m away from theice-covered summit

Natural resources:

metropolitan France: coal, iron ore, bauxite, zinc, uranium, antimony,arsenic, potash, feldspar, fluorspar, gypsum, timber, fish

French Guiana: gold deposits, petroleum, kaolin, niobium, tantalum, clay

Land use:

arable land: 33.46%

permanent crops: 2.03%

other: 64.51%note:French Guiana - arable land 0.13%, permanent crops 0.04%, other

99.83% (90% forest, 10% other); Guadeloupe - arable land 11.70%,permanent crops 2.92%, other 85.38%; Martinique - arable land 9.09%,permanent crops 10.0%, other 80.91%; Reunion - arable land 13.94%,permanent crops 1.59%, other 84.47% (2005)

Irrigated land:

total: 26,950 sq km;

metropolitan France: 26,700 sq km (2008)

Total renewable water resources:

189 cu km (2005)
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2020https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2020https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2111https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2111https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2097https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2097https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2146https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2146https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2201https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2201https://www.cia.gov/library/publications/the-world-factbook/fields/2201.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2201https://www.cia.gov/library/publications/the-world-factbook/fields/2146.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2146https://www.cia.gov/library/publications/the-world-factbook/fields/2097.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2097https://www.cia.gov/library/publications/the-world-factbook/fields/2111.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2111https://www.cia.gov/library/publications/the-world-factbook/fields/2020.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2020


6/23

6

https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html

2. Forms of transportation and communication available in that (those)

region(s)

Freshwater withdrawal(domestic/industrial/agricultural):

total: 33.16 cu km/yr (16%/74%/10%)

per capita: 548 cu m/yr (2000)

Natural hazards:

metropolitan France: flooding; avalanches; midwinter windstorms; drought;forest fires in south near the Mediterranean

overseas departments: hurricanes (cyclones); flooding; volcanic activity(Guadeloupe, Martinique, Reunion)

Environment - current issues:

some forest damage from acid rain; air pollution from industrial and vehicleemissions; water pollution from urban wastes, agricultural runoff

Environment - international agreements:

party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-

Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic

Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes,Law of the Sea, Marine Dumping, Marine Life Conservation, OzoneLayer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber

94, Wetlands, Whaling

signed, but not ratified: none of the selected agreements

Geography - note:

largest West European nation

Airports - with paved runways:
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2021https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2021https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2032https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2032https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2033https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2033https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2113https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2113https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2030https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2030https://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2030https://www.cia.gov/library/publications/the-world-factbook/fields/2113.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2113https://www.cia.gov/library/publications/the-world-factbook/fields/2033.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2033https://www.cia.gov/library/publications/the-world-factbook/fields/2032.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2032https://www.cia.gov/library/publications/the-world-factbook/fields/2021.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2021https://www.cia.gov/library/publications/the-world-factbook/fields/2202.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202


7/23

7

total: 297

over 3,047 m: 14

2,438 to 3,047 m: 27

1,524 to 2,437 m: 98

914 to 1,523 m: 83

under 914 m: 76 (2010)

Airports - with unpaved runways:

total: 177

914 to 1,523 m: 69

under 914 m: 108 (2010)

Heliports:

1 (2010)

Pipelines:

gas 15,276 km; oil 2,939 km; refined products 5,084 km (2010)

Railways:

total: 29,640 km


standard gauge: 29,473 km 1.435-m gauge (15,361 km electrified)

narrow gauge: 167 km 1.000-m gauge (63 km electrified) (2009)

Roadways:

total: 951,200 km (metropolitan France; includes 11,100 km of expressways)


note:there are another 5,100 km of roadways in overseas departments (2008)

Waterways:

metropolitan France: 8,501 km (1,621 km accessible to craft of 3,000 metrictons) (2010)
https://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2031https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2031https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2019https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2019https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2117https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2117https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2121https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2121https://www.cia.gov/library/publications/the-world-factbook/rankorder/2121rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=9#frhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2121rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=9#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2085https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2085https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=8#frhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=8#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2093https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2093https://www.cia.gov/library/publications/the-world-factbook/fields/2093.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2093https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=8#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2085.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2085https://www.cia.gov/library/publications/the-world-factbook/rankorder/2121rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=9#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2121.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2121https://www.cia.gov/library/publications/the-world-factbook/fields/2117.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2117https://www.cia.gov/library/publications/the-world-factbook/fields/2019.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2019https://www.cia.gov/library/publications/the-world-factbook/fields/2031.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2031


8/23

8

https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html

3. Consumer buying habits

We have two main segments in our market :

1- The industrial (factories).2- The traders.

Buying habitsThe consumer buying habits depend on his production plans so usually its a long term contracts

with huge quantities

4. Distribution of the product

Traditional distribution channels recommended . . Product sales by other middlemen

Traders or middlemen will be useful in market penetration

5.Advertising and promotion

. Sales promotions customarily used (sampling)Only the sampling could be useful

6. Pricing strategy

We will use our normal strategy as there is no need for change.


Merchant marine:

total: 167


by type: bulk carrier 2, cargo 8, chemical tanker 36, container 25, liquefiedgas 12, passenger 11, passenger/cargo 44, petroleum tanker 17,

refrigerated cargo 1, roll on/roll off 11

foreign-owned: 57 (Belgium 7, China 5, Denmark 12, French Polynesia 12,Germany 1, New Caledonia 3, Norway 1, NZ 1, Singapore 3, Spain 1,

Sweden 6, Switzerland 5)

registered in other countries: 146 (Bahamas 19, Belgium 5, Bermuda 1,

Canada 1, Cyprus 16, Egypt 1, Hong Kong 3, Indonesia 1, Italy 2,Luxembourg 16, Malta 13, Morocco 4, Netherlands 2, Norway 4, Panama13, Saint Vincent and the Grenadines 2, Singapore 3, South Korea 1,Taiwan 1, UK 33, US 4, unknown 1) (2010)

Ports and terminals:

Calais, Dunkerque, Le Havre, Marseille, Nantes, Paris, Rouen
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2093rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=16#frhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2093rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=16#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2108https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2108https://www.cia.gov/library/publications/the-world-factbook/rankorder/2108rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=38#frhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2108rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=38#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2120https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2120https://www.cia.gov/library/publications/the-world-factbook/fields/2120.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2120https://www.cia.gov/library/publications/the-world-factbook/rankorder/2108rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=38#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2108.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2108https://www.cia.gov/library/publications/the-world-factbook/rankorder/2093rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=16#fr


9/23

9

B. Compare and contrast your product and the competitions product(s)The competition could be divided into two main groups:1- The quality. Our product is in the second category of quality after the European

product & after it the Turkish on the 3rd grade then finally the Asian2- The price. Our product & the Turkish are in the second category after the Asian

products

1. Competitors product

The following description ofcompetitors products (European ,Turkish & Asian )

a. Brand name

No sounded names in the yarn industry.b. Features

Regenerated color yarns From Ne. 3/1 to Ne. 12/1 , cotton / Polyester Blends from 70/30 to 50/50

c. Package

Wooden Pallets / Plastic Bags.

2. Competitors prices

European products 20% higher. $3.00 to $2.50

Turkish products same price. $2.50 to $2.50

Asian products 20% less .$ 2.00 to $2.50

3. Competitors promotion and advertising methods

Exhibitions are the Basic advertising methods & promotions only could happened in sampling

4. Competitors distribution channels

Direct B2B sales + trading agents.

C. Market size

According to personal invistgations with our european agents we found that france is a good potentialfor our product & there is a good chance to penetrate this market.

*. Estimated sales for your company for the planning year

720 Tons of Yarns

D. Government participation in the marketplace

* . Agencies that can help you

The French chamber of commerce


10/23

10

IV. Preliminary Marketing Plan

Guideline

I. The marketing planOur plan to penetrate this market is to contact customer direct through our Marketing team + findingout 2 agents , also we should increase our presence in the European textile exhibitions

A. Marketing objectives

1. Expected sales 2012

720 Tons.

2. Profit expectations 2012

$ 712,000

3. Market penetration and coverage

Market Coverage is impossible but penetration is possible

B. Promotion mix

A. PromotionsOnly sampling

B. AdvertisingOnly Through exhibitions

D. Distribution: From origin to destination

1. Port selection

Final selection depends on customer preferences.a. Origin port

Alexandriab. Destination port

Marseille& Paris

2. Mode selection: Advantages/disadvantages of each modeA. Ocean carriersMost of the European ports have The Same shipping costB. Motor carriersTruck available with the same prices we have in the European area

3. Packing


11/23

11

Wooden Pallets covered with stretcha. Marking and labeling regulationsThe standard required labeling for the global trade.b. Containerization

Goods must be loaded carefully in a way which insure that the discharging of the container will go

without any problems with mechanical equipments .c. Costs

The normal cost will be enough & no need to add any additional costs.

4. Documentation required

a. Bill of ladingb. Commercial invoice

c. Pro forma invoiced. Shippers export declaratione. Statement of origin

f. Euro 1 certificate

E. Channels of distribution (micro analysis)

Only agents are the available & required distribution channel.

1. Import/export agents

Agents useful for business introducing as they already have customers with previous business relations& it will be easier to convince new buyers to try our products.Good agent could distribute at least 100 tons monthly .

F. Price determination

To penetrate this market we dont have to change prices what we have to do is sending industrial

samples free of charge to the customers.

1. Cost of the shipment of goods

From $ .10 to $.11 per Kg.

2. Insurance costs

About .005 % from the goods value.

3. Customs duties

Duty Free

4. Companys gross margins

$ 720,000 for the first year.


12/23

12

G.Terms of sale

Always the term of sales negotiable & we have to

1. EX works, FOB, C&F, CIF

2. Advantages/disadvantages of each

All the same For our product

H. Methods of payment

In markets penetrations & new business LCs is the most preferred method of payment.

1. Cash in advance

Not applicable

2. Open accounts

Not applicable.

3. Sight, time, or date drafts

Not applicable.

4. Letters of credit

Required & comfortable for all parties.

II. Pro forma financial statements and budgets

A. Marketing budget

Total needed budget $ 10,000

1. Advertising/promotion expense

Around $3,000 as a sampling cost.

2. Distribution expense

3% commission from the total sales

B. Pro forma annual profit and loss statement (first year and fifth year)


13/23

13

This data is confidential.

III. Resource requirements

A. Finances

No finance needed.

b. Production capacity

11 tons daily.

IV. Executive summary

From reviewing the country data we found that its a good potential market , we could compete &

penetrate this market for the following reasons :

1- We have the (Euro - 1) Agreement, thats mean that our product will be much cheaper thanother countries by 19.6% which is the VAT rate.

2- We have the chance to convince a lot of buyer using the environmental approach as ourproduct is recycled & there is a strong demand on these products in Europe.

3- The quality we will offer will be in the European acceptance zone.4- The faster delivery than the Asian competitors will give advantage to satisfy the customers.5- Also the distance gives us another advantage in the ocean freight rates.6- We have the same packing criteria as the European producers.7- Understanding the cultural background could give us the credibility needed to penetrate this

market.

8- We dont have to change our pricing policy or make any modifications in our product . 9- The profit margins we will achieve from penetrating this market is reasonable comparing withthe cost of this penetration.

10-As France considered from the biggest fashion & textile countries its a big gain to put ourbusiness position with French companies in our company profile.


14/23

14

III. Market Audit and Competitive Market Analysis

Guideline

I. Introduction

Regenerated yarns industry started in Europe specially Italy & Spain then moved to Turkey &Egypt at the same time also moved to Far East China & Indonesia according to the high labor &power cost.

Regenerated Yarns simply considered the cheapest Yarns as there is no comparison betweenthe cotton price & the cotton waste price.

II. The product

Chief value cotton regenerated yarn mixed with different percentages of polyester and acrylic

in white and coloursAcrylic regenerated yarn in white & colours. Yarn Counts From Ne 3 (Nm 5) to Ne 12 (Nm

20.3) in single & twisted.

*. Evaluate the product as an innovation as it is perceived by the intended marketThe usage of the regenerated yarns provide the blending flexibility & the yarns cost controlling

Relative advantageThe advantage of regenerated yarns is that it match the global trend of environmental approach

as the regenerated yarns deducting the usage of dying chemicals with the respect of the buyer qualityneeds.

2. CompatibilityThe product match the green industry concept providing the same level of quality .

3. Complexity

No special skills needed to use the product much more its more simple than using the normalcotton yarns .

4. Trial abilityTo produce the company we could offer an industrial trails .5. Observability

Most of end consumers appreciate the recycled products but if the final product will beexported outside euorpe maybe we should do some educatinal actions if this concept is not a culturalaccepted.

III. The market


15/23

15

Our customers are the knitting & weaving producers, the strength we have & we could build agood marketing plan on it that our yarns is cheap with the worldwide quality standards ,the mainconstrains we could face is the European competitors prices thats mean we have to make the balanceof the lower price with the respect of the quality , as the European competitors quality is much better

than ours but we could compete with them with our prices .

A. Describe the market(s) in which the product is to be sold

Our customers devided to two main categiories :Knitting Manfacturers ( producers of sport socks and Knitting Fabrics T-shirts ).b- Weaving Manfacturers ( producers of Heavy fabrics used for tents , Furneture Fabrics)

1. Geographical region(s)

Location:

metropolitan France: Western Europe, bordering the Bay of Biscay and English Channel,between Belgium and Spain, southeast of the UK; bordering the Mediterranean Sea, between Italyand Spain

French Guiana: Northern South America, bordering the North Atlantic Ocean, betweenBrazil and Suriname

Guadeloupe: Caribbean, islands between the Caribbean Sea and the North Atlantic Ocean,southeast of Puerto Rico

Martinique: Caribbean, island between the Caribbean Sea and North Atlantic Ocean, northof Trinidad and Tobago

Mayotte: Southern Indian Ocean, island in the Mozambique Channel, about half waybetween northern Madagascar and northern Mozambique

Reunion: Southern Africa, island in the Indian Ocean, east of Madagascar

Geographic coordinates:

metropolitan France: 46 00 N, 2 00 EFrench Guiana: 4 00 N, 53 00 WGuadeloupe: 16 15 N, 61 35 WMartinique: 14 40 N, 61 00 WMayotte: 12 50 S, 45 10 EReunion: 21 06 S, 55 36 E

Map references:

metropolitan France: Europe

French Guiana: South AmericaGuadeloupe: Central America and the CaribbeanMartinique: Central America and the CaribbeanMayotte: AfricaReunion: World

Area:

total: 643,801 sq km; 551,500 sq km (metropolitan France)
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2144https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2011https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2145https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2147https://www.cia.gov/library/publications/the-world-factbook/fields/2147.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2147https://www.cia.gov/library/publications/the-world-factbook/fields/2145.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2145https://www.cia.gov/library/publications/the-world-factbook/fields/2011.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2011https://www.cia.gov/library/publications/the-world-factbook/fields/2144.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2144


16/23

16

country comparison to the world: 43land: 640,427 sq km; 549,970 sq km (metropolitan France)water: 3,374 sq km; 1,530 sq km (metropolitan France)note:the first numbers include the overseas regions of French Guiana, Guadeloupe,

Martinique, Mayotte, and Reunion

Area - comparative:

slightly less than the size of Texas

Land boundaries:

metropolitan France - total: 2,889 kmborder countries: Andorra 56.6 km, Belgium 620 km, Germany 451 km, Italy 488 km,

Luxembourg 73 km, Monaco 4.4 km, Spain 623 km, Switzerland 573 kmFrench Guiana - total: 1,183 kmborder countries: Brazil 673 km, Suriname 510 km

Coastline:

total: 4,853 kmmetropolitan France: 3,427 km

Maritime claims:

territorial sea: 12 nmcontiguous zone: 24 nmexclusive economic zone: 200 nm (does not apply to the Mediterranean)continental shelf: 200 m depth or to the depth of exploitation

Climate:

metropolitan France: generally cool winters and mild summers, but mild winters and hotsummers along the Mediterranean; occasional strong, cold, dry, north-to-northwesterly wind

known as mistralFrench Guiana: tropical; hot, humid; little seasonal temperature variationGuadeloupe and Martinique: subtropical tempered by trade winds; moderately high

humidity; rainy season (June to October); vulnerable to devastating cyclones (hurricanes) everyeight years on average

Mayotte: tropical; marine; hot, humid, rainy season during northeastern monsoon(November to May); dry season is cooler (May to November)

Reunion: tropical, but temperature moderates with elevation; cool and dry (May toNovember), hot and rainy (November to April)

Terrain:

metropolitan France: mostly flat plains or gently rolling hills in north and west; remainderis mountainous, especially Pyrenees in south, Alps in east

French Guiana: low-lying coastal plains rising to hills and small mountainsGuadeloupe: Basse-Terre is volcanic in origin with interior mountains; Grande-Terre is low

limestone formation; most of the seven other islands are volcanic in originMartinique: mountainous with indented coastline; dormant volcanoMayotte: generally undulating, with deep ravines and ancient volcanic peaksReunion: mostly rugged and mountainous; fertile lowlands along coast
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2147rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=43#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2023https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2096https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2060https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2106https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2059https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2125https://www.cia.gov/library/publications/the-world-factbook/fields/2125.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2125https://www.cia.gov/library/publications/the-world-factbook/fields/2059.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2059https://www.cia.gov/library/publications/the-world-factbook/fields/2106.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2106https://www.cia.gov/library/publications/the-world-factbook/fields/2060.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2060https://www.cia.gov/library/publications/the-world-factbook/fields/2096.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2096https://www.cia.gov/library/publications/the-world-factbook/fields/2023.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2023https://www.cia.gov/library/publications/the-world-factbook/rankorder/2147rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=43#fr


17/23

17

Elevation extremes:

lowest point: Rhone River delta -2 mhighest point: Mont Blanc 4,807 mnote:in order to assess the possible effects of climate change on the ice and snow cap of

Mont Blanc, its surface and peak have been extensively measured in recent years; these new peakmeasurements have exceeded the traditional height of 4,807 m and have varied between 4,808 mand 4,811 m; the actual rock summit is 4,792 m and is 40 m away from the ice-covered summit

Natural resources:

metropolitan France: coal, iron ore, bauxite, zinc, uranium, antimony, arsenic, potash,feldspar, fluorspar, gypsum, timber, fish

French Guiana: gold deposits, petroleum, kaolin, niobium, tantalum, clay

Land use:

arable land: 33.46%permanent crops: 2.03%

other: 64.51%note:French Guiana - arable land 0.13%, permanent crops 0.04%, other 99.83% (90%forest, 10% other); Guadeloupe - arable land 11.70%, permanent crops 2.92%, other 85.38%;Martinique - arable land 9.09%, permanent crops 10.0%, other 80.91%; Reunion - arable land13.94%, permanent crops 1.59%, other 84.47% (2005)

Irrigated land:

total: 26,950 sq km;metropolitan France: 26,700 sq km (2008)

Total renewable water resources:

189 cu km (2005)

Freshwater withdrawal (domestic/industrial/agricultural):

total: 33.16 cu km/yr (16%/74%/10%)per capita: 548 cu m/yr (2000)

Natural hazards:

metropolitan France: flooding; avalanches; midwinter windstorms; drought; forest fires insouth near the Mediterranean

overseas departments: hurricanes (cyclones); flooding; volcanic activity (Guadeloupe,Martinique, Reunion)

Environment - current issues:

some forest damage from acid rain; air pollution from industrial and vehicle emissions;water pollution from urban wastes, agricultural runoff

Environment - international agreements:

party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent OrganicPollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile OrganicCompounds, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, AntarcticSeals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol,
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2020https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2111https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2097https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2146https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2201https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2021https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2032https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2033https://www.cia.gov/library/publications/the-world-factbook/fields/2033.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2033https://www.cia.gov/library/publications/the-world-factbook/fields/2032.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2032https://www.cia.gov/library/publications/the-world-factbook/fields/2021.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2021https://www.cia.gov/library/publications/the-world-factbook/fields/2202.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2202https://www.cia.gov/library/publications/the-world-factbook/fields/2201.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2201https://www.cia.gov/library/publications/the-world-factbook/fields/2146.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2146https://www.cia.gov/library/publications/the-world-factbook/fields/2097.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2097https://www.cia.gov/library/publications/the-world-factbook/fields/2111.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2111https://www.cia.gov/library/publications/the-world-factbook/fields/2020.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2020


18/23

18

Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, MarineLife Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber94, Wetlands, Whaling

signed, but not ratified: none of the selected agreements

Geography - note:

largest West European nation

https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html2. Forms of transportation and communication available in that (those)region(s)

Airports - with paved runways:

total: 297over 3,047 m: 142,438 to 3,047 m: 27

1,524 to 2,437 m: 98914 to 1,523 m: 83under 914 m: 76 (2010)

Airports - with unpaved runways:

total: 177914 to 1,523 m: 69under 914 m: 108 (2010)

Heliports:

1 (2010)

Pipelines:

gas 15,276 km; oil 2,939 km; refined products 5,084 km (2010)

Railways:

total: 29,640 kmcountry comparison to the world: 9standard gauge: 29,473 km 1.435-m gauge (15,361 km electrified)narrow gauge: 167 km 1.000-m gauge (63 km electrified) (2009)

Roadways:

total: 951,200 km (metropolitan France; includes 11,100 km of expressways)

country comparison to the world: 8note:there are another 5,100 km of roadways in overseas departments (2008)

Waterways:

metropolitan France: 8,501 km (1,621 km accessible to craft of 3,000 metric tons) (2010)country comparison to the world: 16

Merchant marine:

total: 167
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2113https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2030https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2031https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2019https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2117https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2121https://www.cia.gov/library/publications/the-world-factbook/rankorder/2121rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=9#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2085https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=8#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2093https://www.cia.gov/library/publications/the-world-factbook/rankorder/2093rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=16#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2108https://www.cia.gov/library/publications/the-world-factbook/fields/2108.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2108https://www.cia.gov/library/publications/the-world-factbook/rankorder/2093rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=16#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2093.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2093https://www.cia.gov/library/publications/the-world-factbook/rankorder/2085rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=8#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2085.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2085https://www.cia.gov/library/publications/the-world-factbook/rankorder/2121rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=9#frhttps://www.cia.gov/library/publications/the-world-factbook/fields/2121.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2121https://www.cia.gov/library/publications/the-world-factbook/fields/2117.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2117https://www.cia.gov/library/publications/the-world-factbook/fields/2019.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2019https://www.cia.gov/library/publications/the-world-factbook/fields/2031.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2031https://www.cia.gov/library/publications/the-world-factbook/fields/2030.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2030https://www.cia.gov/library/publications/the-world-factbook/fields/2113.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2113


19/23

19

https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html3. Consumer buying habitsWe have two main segments in our market :

The industrial (factories).The traders.Buying habitsThe consumer buying habits depend on his production plans so usually its a long term

contracts with huge quantities4. Distribution of the productTraditional distribution channels recommended .. Product sales by other middlemenTraders or middlemen will be useful in market penetration

5.Advertising and promotion. Sales promotions customarily used (sampling)

Only the sampling could be useful6. Pricing strategyWe will use our normal strategy as there is no need for change.Compare and contrast your product and the competitions product(s)

The competition could be divided into two main groups:The quality. Our product is in the second category of quality after the European product & after

it the Turkish on the 3rd grade then finally the AsianThe price. Our product & the Turkish are in the second category after the Asian products1. Competitors productThe following description ofcompetitors products (European ,Turkish & Asian )

a. Brand name

No sounded names in the yarn industry.b. FeaturesRegenerated color yarns From Ne. 3/1 to Ne. 12/1 , cotton / Polyester Blends from 70/30 to

50/50c. Package

country comparison to the world: 38by type: bulk carrier 2, cargo 8, chemical tanker 36, container 25, liquefied gas 12,

passenger 11, passenger/cargo 44, petroleum tanker 17, refrigerated cargo 1, roll on/roll off 11foreign-owned: 57 (Belgium 7, China 5, Denmark 12, French Polynesia 12, Germany 1,

New Caledonia 3, Norway 1, NZ 1, Singapore 3, Spain 1, Sweden 6, Switzerland 5)

registered in other countries: 146 (Bahamas 19, Belgium 5, Bermuda 1, Canada 1, Cyprus16, Egypt 1, Hong Kong 3, Indonesia 1, Italy 2, Luxembourg 16, Malta 13, Morocco 4,Netherlands 2, Norway 4, Panama 13, Saint Vincent and the Grenadines 2, Singapore 3, SouthKorea 1, Taiwan 1, UK 33, US 4, unknown 1) (2010)

Ports and terminals:

Calais, Dunkerque, Le Havre, Marseille, Nantes, Paris, Rouen
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2108rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=38#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2120https://www.cia.gov/library/publications/the-world-factbook/fields/2120.html#frhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html#2120https://www.cia.gov/library/publications/the-world-factbook/rankorder/2108rank.html?countryName=France&countryCode=fr&regionCode=eur&rank=38#fr


20/23

20

Wooden Pallets / Plastic Bags.2. Competitors pricesEuropean products 20% higher. $3.00 to $2.50Turkish products same price. $2.50 to $2.50Asian products 20% less .$ 2.00 to $2.50

3. Competitors promotion and advertising methodsExhibitions are the Basic advertising methods & promotions only could happened in sampling4. Competitors distribution channelsDirect B2B sales + trading agents.C. Market sizeAccording to personal invistgations with our european agents we found that france is a good

potential for our product & there is a good chance to penetrate this market.*. Estimated sales for your company for the planning year720 Tons of YarnsD. Government participation in the marketplace* . Agencies that can help you

The French chamber of commerce

IV. Preliminary Marketing Plan

GuidelineThe marketing planOur plan to penetrate this market is to contact customer direct through our Marketing team +

finding out 2 agents , also we should increase our presence in the European textile exhibitions

A. Marketing objectives1. Expected sales 2012720 Tons.2. Profit expectations 2012$ 712,0003. Market penetration and coverageMarket Coverage is impossible but penetration is possibleB. Promotion mix

PromotionsOnly sampling

AdvertisingOnly Through exhibitions

D. Distribution: From origin to destination1. Port selectionFinal selection depends on customer preferences.a. Origin portAlexandria


21/23

21

b. Destination portMarseille& Paris2. Mode selection: Advantages/disadvantages of each modeA. Ocean carriersMost of the European ports have The Same shipping cost

B. Motor carriersTruck available with the same prices we have in the European area

3. PackingWooden Pallets covered with stretcha. Marking and labeling regulationsThe standard required labeling for the global trade.b. ContainerizationGoods must be loaded carefully in a way which insure that the discharging of the container will

go without any problems with mechanical equipments .c. Costs

The normal cost will be enough & no need to add any additional costs.

4. Documentation requireda. Bill of ladingb. Commercial invoicec. Pro forma invoiced. Shippers export declaratione. Statement of originf. Euro 1 certificate

E. Channels of distribution (micro analysis)

Only agents are the available & required distribution channel.

1. Import/export agentsAgents useful for business introducing as they already have customers with previous business

relations & it will be easier to convince new buyers to try our products.Good agent could distribute at least 100 tons monthly .

F. Price determinationTo penetrate this market we dont have to change prices what we have to do is sending

industrial samples free of charge to the customers.1. Cost of the shipment of goodsFrom $ .10 to $.11 per Kg.2. Insurance costsAbout .005 % from the goods value.3. Customs dutiesDuty Free4. Companys gross margins


22/23

22

$ 720,000 for the first year.

G.Terms of saleAlways the term of sales negotiable & we have to1. EX works, FOB, C&F, CIF

2. Advantages/disadvantages of eachAll the same For our product

H. Methods of paymentIn markets penetrations & new business LCs is the most preferred method of payment.1. Cash in advanceNot applicable2. Open accountsNot applicable.3. Sight, time, or date draftsNot applicable.

4. Letters of creditRequired & comfortable for all parties.

II. Pro forma financial statements and budgets

A. Marketing budget

Total needed budget $ 10,000

1. Advertising/promotion expenseAround $3,000 as a sampling cost.

2. Distribution expense

3% commission from the total sales

B. Pro forma annual profit and loss statement (first year and fifth year)

This data is confidential.

III. Resource requirements

A. FinancesNo finance needed.b. Production capacity11 tons daily.


23/23

23

IV. Executive summary

From reviewing the country data we found that its a good potential market , we could compete

& penetrate this market for the following reasons :

We have the (Euro - 1) Agreement, thats mean that our product will be much cheaper thanother countries by 19.6% which is the VAT rate.We have the chance to convince a lot of buyer using the environmental approach as our

product is recycled & there is a strong demand on these products in Europe.The quality we will offer will be in the European acceptance zone.The faster delivery than the Asian competitors will give advantage to satisfy the customers.Also the distance gives us another advantage in the ocean freight rates.We have the same packing criteria as the European producers.Understanding the cultural background could give us the credibility needed to penetrate this

market.We dont have to change our pricing policy or make any modifications in our product .

The profit margins we will achieve from penetrating this market is reasonable comparing withthe cost of this penetration.

As France considered from the biggest fashion & textile countries its a big gain to put ourbusiness position with French companies in our company profile.

Documents

CountryNotebook %281%29