International Marketing

Business PlanBy Hardik Salot

S Y MMS – BRoll No - 115

Product

• Re-Processed various varietes of Rice.• Various varietes of Rice is Processed in the

State of the Art Factory at Goa.• USP of Product – Rice is processed to reduce

the enzymes that causes sleep and laziness after eating the rice.

• This rice is made especially to solve grievances of the countries importing rice from Indian Rice.

Why Goa ? • Major Seaport of Panaji and Marmagoa are

present in Goa.• Close proximity to Karnataka, Andhra Pradesh

and Tamil Nadu Some of Top Rice Producing state in India.

• Major Input in Factory is the Power which is relatively cheaper than other states in India.

• Also Distance Between India and Middle east countries is also reduced being on western seacoast of India where major ship carriers operates.

Country Of Export

• The Country of export is Saudi Arabia.• It is one of top Rice importing nation in the

world.• In the Year 2011-12, It imported 1,558,730

M.T of rice and Its Rice Imports are slated to grow @ 9-12% anually according IRRI Report 2011-12.

Top Rice Producing States

Seaports in India

Saudi Arabian Market• India Rice is already Popular in Saudi Arabia which can be seen by the

fact• Rice is the staple in Saudi Arabia with an annual per capita consumption

of around 42 kilograms, but the country has to rely completely on rice imports to meet the domestic requirement of about 1.14 million tons per year. Overall rice consumption in Saudi Arabia is likely to increase in future, according to the USDA.

• While U.S. long grain rice is well known in Saudi Arabia, consumers’ preference has shifted to the basmati varieties in recent years, with Indian rice exports benefitting the most, says the USDA. In 2012-13, rice imports by Saudi Arabia are expected to be around 1.5 million tons, and imports are expected to increase by around 9% in 2013-14.

• India’s share in the Saudi market in 2012-13 increased to 72%. During January to November 2012, India exported about 796,239 tons of rice to Saudi Arabia, up about 9% from around 730,589 tons in the full year 2011-12, when India’s share in the Saudi rice market stood at around 64%, according to USDA data.

Competitors

• Indian competitors in Saudi Arabian Markets – Satnam Global, KRBL Ltd (India Gate,Nur Jahan etc), Amira foods ltd etc.

• Other Competitors from the world – Thailand,Vietnam,Pakistan,China.

• However amid vast competiton Indian rice occupies mammoth 72% share in saudi arabian market.

Positioning

• We would Position Our Product in Premium rice segment.

• Since Our Product’s USP is Basmati Rice without Enzymes that produces sleep on eating them Our Target customers are from age group 18 - 45 who want to be active and Fit without compromising on taste of a Basmati Rice.

Financials

• Good quality Basmati rice From @ Rs 1600 per quintal Directly from the Farmers who have have agreed to sow the super specialised seeds given to them by the company which is major cost to the company.

• Power is also major input.• We Expect to break Even In period of 3 yrs.

Cost StructureParticulars Cost ( per Quintal)

Direct Cost

Raw material consumed 1800

Direct Wages 40

Direct Expenses 60

Prime Cost 1900

Indirect Cost

Factory Overheads

Power and fuel 145

Factory Rent 15

Office and Admin Overheads 40

Selling and Distribution Overheads 300

COGS 2400

Profit margin (50%) 1200

Selling Price 3600

Marketing Strategy

• We want to reach Major metro Cities of Saudi Arabia.

• Our target group includes Bulk Customers like hotels, Restaurant etc. and also individual customers who belong to affluent class and are looking for Healthy Indian Basmati Rice Brand.

• The Packaging will be done in packages of 5 Kg,20 Kg, 50 Kg and 100 Kg.

Distribution Strategy

• We would appoint a 3 lead Overseas Distributors/ Stockist of our Product top reach all Metros at a stretch.

• Stockist will Supply to Various Dealers and Bulk Consumers.

• This Dealers will then reach Various Retail Stores and Supermarkets.

• These Retail Stores will reach the ultimate consumer.

Pie Chart Of Profit margin Distribution

Thank you