International Marketing-Assignment2

Exporting Indian Product –Destination

Colombia

Presented By : Ashutosh Pandey

PRN : 17020448011
MBA-EXEC - 2nd Sem
International Marketing-Assignment2
Exporting Indian Product –Destination
Colombia
In 2016 India's exports to Colombia
amounted to $945.9 million or 2.1%
of its overall imports.
1. Organic chemicals: $104.7 million
2. Cotton: $94 million
3. Vehicles: $78.2 million
4. Pharmaceuticals: $54.8 million
5. Machinery: $45.9 million
6. Electronic equipment: $34.1
million
7. Aluminum: $31.7 million
8. Plastics: $29 million
9. Manmade filaments: $28.7 million
10. Iron and steel: $28 million

Presented By : Ashutosh Pandey

PRN : 17020448011
MBA-EXEC - 2nd Sem
 Fountain of Youth
“fuente de la juventud”

A product by “Nisarg Products”

 Introduction
• “Nisarga Products” is an
Indian consumer goods
company with revenues of Rs
200 crores with interests in
hair care and Health care
products with emphasis on
use of Herbal ingredients. For
past 10 years we have been
dedicated to providing nature-
based solutions for a healthy
and holistic lifestyle. Through
our comprehensive range of
products, we touch the lives of
all consumers, in all age
groups, across all social
boundaries.
 Executive Summary
• “Nisarga Products” is going to launch a new product called
“Fountain of Youth” in Colombian market. This product which is
biscuits made from “ChyawanPrash” is already a popular product
in India and some countries in Europe. It is a herbal product that
helps maintain youthfulness by regenerating tissues and
counteracting aging process. It has been regarded as an epitome of
total healthcare. It is composed largely of avla, a rich source of
vitamins and amino acids rejuvenates, nourishes and strengthens
the body, providing energy and vitality and builds body . Although
this is new product in Colombia, sizable profit exists for a product
that can deliver specific benefits most valued by target segments.
Our marketing priorities include building brand awareness, forming
relationships with importers, distributers, generating sales ,
breaking even by the end of second year. Targeting agreesive sales
increase for next 5 years. After which we need to come up with
other variant as the product will reach the maturity stage.
Physical Maps of India and Colombia
 Market overview
The Republic of Colombia is the fourth largest economy in Latin
America, after Brazil, Mexico, and Argentina, and has the third
largest population with approximately 49 million inhabitants.
Aided by major security improvements and steady economic
growth in recent years, Colombia has increased its commercial
and investment ties to the United States, Europe, Asia and the
rest of Latin America. Political stability, a growing middle class,
the signing of the peace accord between the government and the
Revolutionary Armed Forces of Colombia (FARC) guerrillas, and a vastly
improved safety and security environment have supported an
optimistic outlook and moderate economic growth in recent years in
Colombia. Fitch Ratings affirmed Colombia’s BBB credit rating and
revised its outlook from negative to stable in March 2017
 India’s Trade relations with Colombia
• India and Colombia have friendly and cordial bilateral relations.
Colombia is an important member of the NAM and G15 and hosted
NAM Summit in 1995. Both countries have considerable
coincidence of views on global issues and have closely collaborated
in various multilateral fora.
• In the recent years, Colombia has become one of the main
destinations for India’s exports in Latin America. India Colombia
business organizations have been interacting on regular basis .
Colombia India Chamber of Commerce was formed in Bogota in
September 2008 by Indian and Colombian firms to take up issues of
bilateral business interest with the support of Embassy.
• Exports from India to Colombia increased from US $ 503.82 million
to US $ 1123.80 in the period 2009-2012.
 India’s Trade relations with Colombia
Indian Investment in Colombia
• ONGC Videsh acquired 50% of Omimex Colombia in
September 2006 in a joint venture with the Chinese company,
Sinopec.
• OVL’s investment in Mansarovar Colombia increased from US
$ 425 mn in 2006 to about US $ 600 million in 2009.
• Reliance Industries Ltd. has signed a 6 phase contract for
exploration of oil in the Pacific coast for an estimated US $ 50
million.
• Several brands of motorcycles manufactured in India such as
Bajaj, TVS and Hero Honda, are being assembled in Colombia.
• Evo Colombia is a branch of chemical group United
Phosphorous.
• SW Steel and Ispat have entered in Met coal mining
 India’s Trade relations with Colombia
Bilateral Agreements
• Trade Agreement – 1970.
• Cultural Agreement – 1974.
• Agreement for facilitation of Visas to Businessmen -2001.
• MoU on Cooperation in the field of IT -2002.
• MoU on Cooperation in Science & Technology -2005.
• MoU on Cooperation in Urban Development 2007.
• Bilateral Investment Promotion & Protection Agreement
(BIPPA) signed in November 2009.
• MOU on Business Development Cooperation, April 2010.MOU
for cooperation in IT Sector between NASSCOM and
FEDESOFT in May 2013
 Product
• “Fountain of Youth” are biscuits
made from “ChyvanPrash”. It is a
safe Ayurvedic formula that can
be consumed by people of all age
groups- from young children to
elderly
• It is a herbal product that helps
maintain youthfulness by
regenerating tissues and
counteracting aging process.
• Composed largely of avla, a rich • Comes in a pack of 50 biscuits .
source of vitamins and amino • Comes in 3 different flavors.
acids rejuvenates, nourishes and
strengthens the body, providing • Sugar Free variant is also there for
people having sugar issues.
energy and vitality and builds
body. • HACCP (Hazard analysis critical control
point)approved for International sales.
• NCL (National Chemical laboratories
India) for domestic sales.
 Product
As different age-groups like different flavors “Fountain of Youth” biscuits
come in 3 distinct flavours. “Strawberry”, “Chocolate and standard Vanilla .
Pricing for all 3 variants is same.
 Market Barriers/Key Challenges
• Stiff competition from US companies with products satisfying similar
needs as US made products are not subject to import duties under the
US-Colombia Trade promotion agreement (TPA) of 2012.
• Indian companies like “Dabur” already exporting “ChyvanPrash” to
Colombia.
• As Colombians are not much familiar with concept of Herbal/Aayurveda
creating brand awareness is challenging.
• This being a Oral product convincing people about it’s purity and safety is
a big challenge.
• Keeping price affordable is another challenge as export and distribution
costs are large.
• In Colombia there is a tendency for regulations to change without
adequate notification given to the World Trade Organization, industry, and
other relevant stakeholders.
• For sales and promotions, large dependence on locals because of language
barrier.
• Not much historical data to do proper forcasting.
 Market Opportunities

• The post-peace accord environment in Colombia is expected to generate

a period of stability and economic prosperity that will see development of
several key sectors. This will lead to economic growth , employment and
disposable income.
• A sizable number of Indian expatriates and people of Hindu origin in
Colombia who are familiar with the benefits of Chyavanprash provide
for a good market. Using this channel as brand ambassadors for
convincing the local populace to use this product can increase the
market size significantly.
• With increasing awareness of potential harm of inorganic products , use
of organic products is becoming popular.
• Yoga has become popular everywhere in world. This fact can be leveraged
by showing the Yoga experts using this product.
 Product - Benefits

• Healthy Heart
• Prevents Infections.
• Enhanced Energy
• Improves digestion.
• Revitalizes Skin cells
• Promotes Healthy Chlorestol.
• Nourishes reproductive tissues.
• Clear respiratory passages.
• Normalizes blood pressure.
• Improves Strength.
 Price
• Initial Prices of USD $10/box are kept
competitive keeping similar products in mind and
the average spending capacity of consumers. It
may be revisited depending on the market
conditions and consumer reaction. The expected
profits depend on volume sales.
• The above price has been arrived at after
considering product, distribution costs and profit
margin, import duties. A sales of 100000 units
will allow to reach at break-even.
 Promotion
• Fully fledged advertising campaign will be launched .
This will help in making the customers aware of all
the company’s products, their prices, their main
features and the places where the buyers can buy
them easily.
• Holding press conferences in targeted cities.
• Social media will be heavily used.
• Company’s website is optimized for search engines.
• Network of importers and distributors will be used to
promote the product.
• Testimonials from Indian and other European
countries users
 Promotion
• Popular TV stars, Atheletes, will be used as Brand
Ambassadors.
• Substantial discounts to retailers, distributors to make
them interested.
• Gifts and Prizes for first 100 customers.
• Popularity of YOGA can be linked and taken advantage of.
• Reward points to customers
• Decoy inquiry.
• Sponsorship of local events.
• Use of Indian expatriates to promote the product.
• Popular TV stars, Atheletes, will be used as Ambassadors
 Place
• Product will be available to consumers directly from
distributors and also from retailers. It will also be
available online. Based on customer response several
outlets of the company will be opened in several cities.
All major shopping malls, places of entertainment will
house this product.
• Product will also be made available during local social
events to have more visibility.
• From India the product will be exported to importers
via sea-route in tightly sealed water proof containers to
avoid in transit damages.
 Projected Sales
250000

200000

150000
Sales
100000 Year

50000

0
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