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Energy drinks market and its feasibility in india..contact me -big.vivek@gmail.com

Energy drinks market and its feasibility in india..contact me -big.vivek@gmail.com

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    Mozart Chocolate Energy Drink Mozart Chocolate Energy Drink Document Transcript

    • 1 Preferred Marble&Granite Pvt.Ltd. INTERNSHIP REPORT “To Check Import Feasibility of Various Products in India from USA.” May-June, 2008 VIVEK TIWARI PGDBM (IB&MARKETING) BIIB, PUNE
    • 2 ACKNOWLEDGEMENT I would like to express my gratitude to all those who gave me the possibility to complete this research thesis and project work. I want to thank Mr.Anil Jain (CFO) and the company “Preferred marble & Granite Pvt. Ltd; Bangalore for giving me permission to commence this project in first instance, to do the necessary research work and to use company data. I have furthermore to thank Mrs. Ranjana for her stimulating support and guidance. I am deeply indebted to Mr. Balaji Reddy & Mr. Kiran whose help, stimulating suggestions and encouragement helped me in all the time of research for and documenting this report. I am highly obliged to my seniors in company Mr. Joy Raj and Mr.Saroj for their help, support, interest, and valuable hints.
    • 3 INDEX Contents Page No. Introduction of company 5 A. Mozart chocolate energy drinks 6-23 Research objective 7 Company & product profile 7 Types of energy drink 8-9 Competitors 10 Market scenario 10-11 Market survey 14-18 SWOT analysis 19 Import obligations 20-21 Conclusion 22 Bibliography 23-24 B. Luster Products 25-33 Research objective 26 Company profile 26 Product profile 27-28 Competitors 29 Market scenario 30 Import obligation 31-32 Conclusion 32 Bibliography 33 C. Zurion multivitamin 34
    • 4 Objective of research 34 Company profile 34 Product profile 34-35 Competitors 36-37 Market scenario 37-38 Import obligation 38 Conclusion 38 Bibliography 38 D.CC Pollen products 39 Research objective 39 Company profile 39 Product profile 40 Competitors 41-42 Market scenario 42-43 Analysis and findings 43-44 Conclusion 44 Bibliography 45 COMPANY INTRODUCTION
    • 5 Established ten years ago, Preferred Marble & Granite Pvt. Ltd. is one of the largest sources of Granite, Marble and Natural Stone. Company’s keen passion is to grow and earn recognition has enabled it to create niche for itself in the natural stone industry including prefabricated granite counterparts, black granite counterparts. Its total commitment is towards quality and main aim is customer satisfaction. Company boasts of having a huge collection of natural stones under one roof. Over the years quality has enabled them to make a mark for themselves in the natural stone domain. Preferred Marble & Granite have always laid due importance to quality and have never compromised on it whatever may have been the condition. Strict quality measure leaves no room for any discrepancy in the product. Preferred Marble & Granite is a branch office of Lotus Exim International Inc. that has its head office in New Jersey, USA. Mr. Rajendra Kankariya is the chairman of the company who has always strived for quality and company which was trading for single container for about four months in starting; today markets ten containers a week. Company has shown extraordinary growth in the industry without compromising on quality. 90% of customers are repeat customers of the company. CORPORATE HEADQUARTERS LOTUS EXIM INTERNATIONAL INC. 16 Leliarts Lane Elmwood Park NJ 07407, USA P: 201-475-2810 Website- www.lotusexim.com Indian Office: Preferred Marble & Granite Pvt. Ltd. #104,3rd Cross, 8th Main 3rd Block, Kormangala Bangalore 560034 P: 080-41148501 Website- www.preferredmarbleandgranite.com
    • 6 Mozart Energy Drink Research objective To examine the feasibility of import of Mozart chocolate energy drinks in India. COMPANY PROFILE Mozart energy drink is registered in Salzburg, Austria but the home operating office is in Europa, Mississippi, and San Antonio, Texas in USA. Tim Kershenstein, a graduate of Tulane School of Public Health and Tropical Medicine, put together a team of professionals to develop the formulation of Mozart Energy Drink in January, 2008 with an emphasis on wellness. The wellness goal is a state of optimal energy that is achieved by a nutritional balance, which maximizes an individual’s potential performance. CONTACT DETAILS Mozart Sales Staff
    • 7 Phone: 504.914.6149 Fax: 509.696.5431 Email: 888@MozartEnergy.com Website: www.mozartenergy.com PRODUCT PROFILE INRODUCTION- Sugars can be easily assimilated by organism to which they give a boost in low period or during physical effort. quot;The World's First Chocolate Energy Drinkquot; what our product have as its unique selling proposition (USP). CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation. MOZART has antioxidant property that not only helps the body in killing the free radicals, but also speeds up the recovery process of the body after any damage through illness or otherwise. NURITIONAL VALUE CHOCOLATE is a potent antioxidant and contain chocolate compounds called flavonoids that can help maintain a healthy heart and good circulation. These flavonoids can have positive cardiovascular effects which provide a better quality of life. Chocolate when used as part of a total weight-loss program, can give you a special edge, quelling your carbohydrate cravings while helping to reshape your body TAURINE enhances the efficiency of the body functions. Promotes and helps maintain general well-being, provides energy boost after exertion and promotes rapid recovery. VITAMIN B6 + B12 in this combination are essential in the conversion of carbohydrates into energy, needed for healthy cellular growth. GINSENG fights fatigue, stress and increases endurance. GINKGO is a strong antioxidant that helps promote mental concentration. ENERGY BLEND provides the needed energy to get your day off to a great start. IMMUNE BLEND helps build your immune system and contains CoQ10 for a healthy heart. TYPES OF ENERGY DRINK Energy drinks can be classified on the basis of the ingredients on which they are based. Check out the main types of energy drinks found in the market today.  Caffeine-based: Caffeine is the ingredient found in most of the energy drinks as it acts as a stimulant for people. Usually, the amount of caffeine in
    • 8 an energy drink is somewhere between 100-200 mg. Some of the caffeine- based drinks are Redbull, Monster, and Rockstar.  Taurine-based: Taurine is the active ingredient in the product called OHM, which is majorly used in energy drinks. Taurine is that it not only maintains the energy level in the body, but also helps the body cope up with stress.  Guarana-based: Guarana is an ingredient found in plants that grow in South America. It mainly helps in increasing the level of awareness as well as the energy levels of the body. It can be compared, to quite an extent, with caffeine. Vitamin B-based: Considered to be amongst the best energy drinks in the market, the ones based on Vitamin Bs are believed to help in kick-starting the body into action. Ginseng-based: Ginseng is the name of an herb that is now-a-days being used as a major ingredient in energy drinks. The potential benefits of Ginseng are increase in energy levels and alleviation of stress.  Ginkgo Biloba-based: Ginkgo Biloba is another popular herb that is receiving interest from health drink makers. There are a number of benefits according from it, namely improvement of memory, concentration levels and blood circulation, along with regulation of stress levels.  Antioxidants-based: Antioxidants are being used for making many energy drinks these days. They not only help the body in killing the free radicals, but also speed up the recovery process of the body after any damage through illness or otherwise.  OUR PRODUCT  Our product “mozart chocolate energy drink” comes under the antioxidant-based energy drink.
    • 9 Competitors Red bull-Rs 75/250ml Effect –Rs 75/250ml PepsiCo’s Gatorade –Rs-25/200ml Gujrat co-operative’s Stamina –Rs 12/200ml
    • 10 Godrej’s soya milk-Rs 13/200ml Coca cola’s Shock –Rs 30/200ml,LIFT(going to be launched) Amul kool-Rs 20/200ml United spirit’s- Vladivar vodka based POWER HOUSE ENERGY DRINK  NHSPL are the importers and distributors of Red Bull for India.  RED BULL HAS ALMOST 70% OF MARKET SHARE IN ENEGY DRINK MARKET IN INDIA.  Very promising segment, particularly with the organized retail shops growing in India. Have a 50-80% growth every year. MARKET SCENARIO  The billion dollar energy drink market is the hottest segment in the beverage sector since bottled water. This segment has been driven by grassroots promotions, a very well defined consumer base and proactive producers that have responded quickly and efficiently to the changing demands of consumers.  Energy drinks are consumed to vitalize body and mind. It can be had directly or mixed with alcohol.  Energy drink market is growing with good pace of 50% annually.  According to market research firm Datamonitor Plc., the energy drinks market in India is estimated at Rs499.2 crore and is still at a nascent stage.  The energy drinks market in India grew at 50% a year between 2002 and 2007.
    • 11 The energy drinks market is expected to reach Rs1,100 crore by 2010.(IN INDIA) Red Bull says it has sold 5 lakh cans in three Indian cities (Mumbai, Chennai and Delhi) in 8 months.  Good news is that till now in “chocolate energy drink” segment no well known firm yet came in the market in India.  Notably in China and India where malt drinks have long been drunk as a substitute for milk. Now, strong economic growth in these markets is seeing middle class consumers trading up to added-value hot drinks. Hope Lee of market analysts, Euromonitor, reports on the latest trends.  Mozart chocolate energy drink is a luxury energy drink.  The drink will be sold at retail joints, pubs and clubs. Energy drink market (in $ sales) World’s top 15 energy drink brands with market share (sales in USD)
    • 12 Red Bull 45 Monster 40 Rockstar 35 Full Throttle 30 Sobe No Fear 25 AMP 20 Sobe Adrenaline Rush 15 Tab Energy MonsterXXL 10 Private Lable 5 Rip It 0 Market Share Sobe Lean Boo Koo CURRENT MARKET  Soft Drink -3.9%
    • 13  Domestic Beer -1.2%  Energy Drinks +53%  Bottled Water +25%  RTD Tea +23%  Sports Drinks +19% 60 50 40 30 20 %growth 10 0 -10 soft energy RTD tea drink drink  Energy drinks consumption is at 20-22 million cans in India IN 2007  Energy drink market is amazingly growing and everyone knows it. With that, everyone would like to try it out for a change because they want to earn more profits in the business easily. The reason why energy drink market has increased is because people are after work for almost 24 hours in a day just to make a living.  GOVERNMENT IS PLANNING TO REDUCE THE IMPORT DUTY ON ENERGY DRINKS IN INDIA TO SUPPORT THE INDUSTRY.  Health or energy drinks are the fastest growing category in the beverages market and it is estimated that over 50 percent of the volume comes from this segment.(MARCH 2008)  The factors responsible for the spectacular growth of the food and beverages industry in India are changing life-styles, rising disposable incomes of the growing middle class and increasing urbanization.  In addition to this, increasing numbers of foreign tourists create a demand for familiar foods in India. Five-star hotels have access to duty free quota, which can be used to source imported food and beverages.
    • 14 TARGET MARKET SEGMENT THE INITIAL TARGET MARKET SEGMENT WOULD BE  METROCITIES (DELHI,BOMBAY,KOLKATA,CHENNAI,BANGALOREetc) TARGET GROUP-  YOUNG WORKING CLASS (BELOW AGE 35)  TEEN’S AND YOUTHS  WORKING AND NON WORKING WOMENS  GAMERS ,EXTREME SPORTS ENTHUSIASTS AND HIP HOP CROWD The design and packaging should also be according to target customers. MARKET SURVEY OF ENERGY DRINKS:- A primary data was collected with the framed questionnaire based on customer preferences in energy drinks. The responses provided are very positive and market seems to be very price sensitive. The pricing of the product should be done in keeping the target customer group and their buying capacity. Age group:-a) 15-25years and b) 25-35years a) Generally students and young working generation. b) Generally working youths and professionals. 1. What kind of drink do you have often?
    • 15 Drinks preferred energy drink 12% milk additives 11% soft drinks 30% fruit juices 47% 2. Have you ever tried any energy drink? TRIED ENEGY DRINK NO 29% YES 71% 3. Which energy drink do you have often?
    • 16 Brand of others Drink tried 1% lift 14% gatorade red bull 28% 57% 4. How frequently you have energy drink? once a week 0% frequency of intake once a month 12% once a while 88%
    • 17 5. What do you think of energy drink with chocolate flavor? chocolate drink good will try once 37% 31% can't say 31% bad 1% 6. At what price chocolate energy drink should be available for 250ml? price Rs50-75 below Rs50 40% 45% Rs101-125 Rs76-100 5% 10%
    • 18 Conclusion of survey:- The market survey of customers reveals that in India majority drin king habit is of 1. Fruit juices 2. Soft drinks Energy drinks yet to gain a pace among the customers. The red bull brand is leading among energy drinkers but frequency of intake is very poor. Chocolate taste is well preferred one and showing mix response as customers are interested to try the taste and product. Major concern will be the price of the product. The price of the product should be in between Rs60-75, as its nearest rival red bull is pricing at Rs75/can. MOZART ENEGY DRINK’S “SWOT” ANALYSIS Strength Weakness -World’s first chocolate energy drink. -Chocolate taste may not attract youths. -Antioxidant in nature. -Very high price of product after import. -Chocolate taste attracts. -Very niche market segment. -Luxury energy drink and exclusive in its -Not very prominent brand so may cost market segment. very high in promotions. Opportunities Threats
    • 19 -Market growth rate is very fast, 50-80% annually. -New local entrants may compete on -As such no big rival in chocolate energy taste as well as price. drink market. -Big players in industry may take over on - The energy drinks market is expected to promotions as well as distribution. reach Rs1, 100 crore by 2010, so overall a -Local and Indianized energy drinks may great market growth. give stiff competition. -Mozart chocolate energy drink may serve as substitutes for fruit and flavored drinks. IMPORT OBLIGATIONS AND EXCISE DUTY CALCULATION IMPORT OBLIGATIONS –The energy drink having chocolate base can be imported freely without any import obligation under India’s foreign trade policy 2004 -2009. So, as it is no import obligation. EXCISE DUTY CALCULATION- : UNDER CHAPTER -22 of excise duty obligations of imported products in India comes under beverages, spirits and vinegars. (Under section IV). WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETEN-ING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009. H S CODE -: 2202 will be the HS code of MOZART CHOCOLATEENERGY DRINK. 2202.90.00 will be sub code it include chocolate and brown products. LANDED COST FOR 40 FEET CONTAINER:-
    • 20 DUTY TILL MARCH 2008 Customs basic duty-30 Add. Duty (CDV)-0 Spl. Duty (add.CDV)-4 Excise cess -0 Customs cess-3 All duty will be in terms of %. So, finally for 2888 cases (69312 can), the price comes out to be Rs.22, 87,296 and the customs duty on that value will be Rs.834802.65. The landed cost will be Rs.3122098 for 69312 canes (40 feet container). The cost/can =Rs.45.05 (excluding shipping cost) If we consider shipping cost as US$3000/container(40feet) then total cost /can will be =Rs 46.8/can in India. THE LANDED COST OF MOZART CHOCOLATE ENERGY DRINK WILL BE ALMOST Rs.46.8/can. The good thing is to be done is that we should order the drink in bulk and since the life of Mozart chocolate drink is almost 9months so, it would have enough time to make its sale and retain in market. If the shipping time is reduced to 1-1.5 months the product can make a good market and selling time. OVERALL OBJECTIVE ANALYSIS AND FINDINGS-: The overall market potential is very good and the market growth rate is almost 50% annually. Since there is no prominent player yet in chocolate based energy drink market so initial market penetration will be easier .The coming future trend of energy drinks to its target customers are also showing positive signs. Indian youths and working class are accepting the energy drinks. The sales price of the drink can also be negotiated for bulk orders and thus can be imported at profitable cost and further competitive price of product may be quoted in market. The direct rival for “Mozart chocolate energydrinks” in the market will be well established players like RED BULL and PEPSICO. These products may give stiff competition.
    • 21 Since the landed cost of Mozart chocolate energy drink comes up to Rs46.8/can, so we can price our product at a good competitive price in markets in Indian metro cities. In India due to following reasons people are preferring energy drinks- 1. Health consciousness 2. Hectic lifestyle 3. Instant energy requirement during long working hours 4. Increased spending capacity MOZART’S PRICE LIST WITH SHIPPING COST Customs HS code for custom purposes is # 2202.90.00 Ground Shipment Packed: Per Pallet 144 cases Case –24 /8.4 oz cans Truckload: 20 pallets (2880 cases) Sea Shipment Packed: 40 ft. Container 2888 Cases Case –24 /8.4 oz cans (250 ml) Price USD18.88 F.O.B. Factory, WI USA Delivery Time: 6 Weeks Terms Terms: 50% down with order and 50% due before put on Truck/Vessel CONCLUSION-: “Mozart chocolate drink” will be new in Indian market and has potential to gain good market share in its niche segment.
    • 22 The cost effectiveness with value provided to customers and perceived value of the product will decide the future of the product. If we can sell this product at around Rs60 to Rs 75/can, it can get good response in the market. The points of major concerned will be-: • A market with forecasted growth exceeding 50% over the next few years. • Retail and foodservice support growing • Dominant brand still in place, but many well supported and independent Challengers competing well • Future growth in the consumer market includes younger buyers (>14 years) • Taste is an important consideration for buyers• Health trend entering this segment, fruit juices, and unsweetened, healthy additives may play significant role in future. References -: 1. www.mozartenergydrink.com 2. www.energydrinks.com 3. www.wikipedia.com 4. www.amazon.com 5. www.foodindustryindia.com 6. www.businessweek.com 7. www.BevNet.COM 8. www.icontact.com 9. www.justdrinks.com 10. www.rediffnews.com 11. www.x-rates.com 12. www.balance32000.stores.yahoo.net 13. www.coinmill.com 14. www.energyfiend.com 15. www.beveragedaily.com
    • 23 16. www.infodrive.com 17. www.bharatbook.com 18. www.buvoice.com 19. www.alibaba.com 20. www.foodandbeverages.com 21. www.datamonitor.com 22. www.fnBnews.com 23. www.globalsuccess.com 24. www.factexpert.com 25. www.marketingprof.com 26. www.metromint.com 27. www.pepsico.com 28. www.coke.com 29. www.drinkhint.com 30. www.google.com 31. Email received from Mozart energy drink.
    • 24 LUSTER PRODUCTS Luster hair care products
    • 25 Objective of Research To examine the feasibility of Import of “Luster hair care products” to India. Company profile Luster products inc. is a leading African-American owned and operated manufacturer of premium personal care products servicing people of African descent worldwide. Luster Products' brands include the Pink Brand, products for women; S-Curl, products for men; PCJ Pretty-n-Silky & Smooth Roots, children products; YOU, unisex products and Designer Touch, products for stylists. The company was founded by Mr.Luster as Luster Products, Inc. in 1957. Inspired by the support of his family, Mr. Luster guided the company from a modest storefront operation into a multi- million dollar, worldwide enterprise. In spite of his huge success, Fred Luster, Sr. remained a lifelong supporter of organizations committed to the economic and educational advancement of African Americans. Today, Luster Products, one of the most respected African-American businesses in America, is under the leadership of Jory Luster, president, Fred Luster II, vice president of Research and Development; and Sonja Luster-Munis, vice president of Systems Administration. The company's main facility -- corporate offices, plant and warehouse -- is situated on 17 acres in Chicago's Stockyard Industrial Park. An aerosol production plant is located in suburban Blue Island, Illinois. The company also has branch offices in London and South Africa. Established in 1989 by the late Fred Luster, Sr., as the philanthropic arm of Luster Products, Inc., the Black Heritage Foundation is a non-profit, charitable foundation whose primary purpose is to support community-based organizations that promote positive values, community service and asp rational role models for the African-American community. Awards of luster in 2003  National Exemplary Exporter of the Year
    • 26  Local Exemplary Exporter of the Year  Regional Exemplary Exporter of the Year  Minority Business Exporter of the Year Product of the Year 2002 (ARTEFFEX) Contact: 1104 w 43rd street Chicago, IL, 60609-3342, US Phone -773-579-1800 FAX-773-579-1912 Website-www.lusterproducts.com PRODUCT PROFILE The products of luster are divided into two categories: 1. Consumer products 2. Salon products Consumer products are: a) New Renutrients: Revita-shine sheen spray b) Luster Short Looks Color laxer :color,relaxer,conditioner 3in formulae 1 c) You Smooth Gel-lightweight gel formulated to provide shine and loose hair.
    • 27 d) Pink Hot Oil Treatment- after washing your hair with shampoo use pink hot oil treatment to condition and moisturize your hair and scalp. e) PCJ Wet-n-EZ detangling spray contains protein and leave –in conditioners that help stop breakage and tames the tangle hairs.ink Hot Oil Treatment after shampooing to condition and moisturize your hair and scalp and repair split Salon Products: a) Designer touch: Rs.145/kit, One Touch-Up Application. The only relaxer kit created to touch-up new growth. Patented triple action conditioners for silky smooth hair. Compatible with all other relaxers. No lye. Luster's Pink is the only brand to bring you Pink Protection. Kit Contents: Pink No-Lye Conditioning Relaxer; Pink Color Mix Activator; Pink Color Alarm Conditioning & Neutralizing Shampoo; Pink Conditioner and Pink Oil Moisturizer Lotion. b) Straight shade: Rs.130/170gm, Results in straight with shine and natural flowing softness. Wheat Protein and Pantheon protect hair against heat and styling damage. You Straight seals in moisture to keep hair healthier until the next application. c) Straight fix: Revives dull, dry hair with natural oils that smooth and seal the hair's cuticle layers. This marvelous gloss helps eliminate frizz without leaving a heavy coating or buildup. Leaves hair with a fabulous gloss. Great on wet and dry hair. d) ArtEffex-Hairstraightens:Rs.430/200ml A superb premium range of salon quality hair products with specially created formulation for Afro-Caribbean and textured hair types.
    • 28 Containing a wide range of nature’s extract and botanical ingredients providing a complete choice to suit ones individual hair care needs. Art-Effex the complete hair care regime to suit your chic,confident or bold style. The products are basically for the hair pattern of Afro-Caribbean origin and the company is committed to serve the people of African and American origin at reasonable prices. Products are of premium quality to general one and are priced to serve every end of customers from common to premium end in cosmetics and hair care market. Competitors 1. Shahnaz Husain’s –shagrow herbal shampoo and conditioner Rs670/200ml. The contents are herbal such as Brahmi, bhringraj and Himalayan cherry which helps to maintain the oil balance of hair and scalp.
    • 29 2. HUL’s DOVE: Rs.210/355ml the leading FMCG firm HUL have introduced “dove” in hair care and shampoo segment. Except dove HUL has A) Clinic plus B) Clinic all clear shampoo C) Lakme D) Ponds etc. And HUL has +70% market shares in skin care, hair care and cosmetics market segment. 3. Dabur’s: In hair care and shampoo segment Dabur has market share of about +10%, and growing at 13%/annum. 4. Marico’s: In coconut oil products and coconut based shampoo and also in hair styling Gel Marico is doing a healthy business and its growth is +20% in its market segment. 5. Himalaya’s: In herbal and ayurvedic product segment Himalaya has its stronghold and is also showing a remarkable growth. P&G Pantene Herbal Essence Head & Shoulders Infusium 23 Aussie Clairol Unilever Dove Suave ThermaSilk Sunsilk Alberto Culver Alberto VO5 Just for Me Nexxus Soft & Beautiful
    • 30 TRESemme TCB Consort Motions L’Oreal Vive Redken Matrix Kerastase L’Oreal Kids Garnier Fructis Market scenario At Rs42.4 billion (US$957 million), India’s hair care market is a far smaller prospect than the developed markets in the West and comes in behind the other BRIC markets of Brazil, Russia and China too. But with between a third and a half of the entire world’s hair and a fast-emerging economy that saw real GDP growth of 8% in 2006, it is little wonder India is drawing the attention of international hair care giants such as Procter & Gamble. Local consumers are also attracted to traditional natural and Ayurvedic haircare and this too gives domestic players an edge in the Indian market. Herbal shampoo brands such as Chik and Nyle provide strong competition to the big-name international labels, including Sunsilk, Head & Shoulders and Lux. Seven of the top ten players in India’s hair care market are home-grown and account for 42% of total value sales. There are only five in the top ten for the cosmetics and toiletries market as a whole and the share they hold is less than 18% suggesting consumers are less drawn to the prestige brands of the West in hair care. The Indian hair care market is forecast to expand by almost 40% between 2006 and 2011 and Euromonitor International expects competition between local and international players to heat up over this period. The total Hair Care market reached about $12 billion. (Market growth increase + 3% from 2005) Hair Care Category consists of: Salon Hair Care Shampoo Conditioners Styling Agents Colorants 2 in 1 product Perms & Relaxants The Indian market will continue to grow due to the risin incomes of the ever larger g number of middle-class and urban consumers. But despite the high concentration of wealth in urban areas, the rural market, where three quarters of Indian live, is important. For example, the rural market for shampoo is three times the size of the urban. Companies report that rural demand is rising fast. According to the Economist sales of soap by Unilever are growing twice as fast in the
    • 31 countryside as in the cities; Benetton says that 75% of its expansion will be in small towns. There are huge opportunities for cosmetics companies. The low market penetration of many personal care products leaves room for growth. Current consumption of many products is well below that of more developed countries in Asia. For example, only 4% of Indian women use home hair dyes compared with 42% of their Japanese counterparts. The oil industry is about Rs 1,800 crore in value, of which value-added oil constitutes 50%. Import Obligations The products of hair care and cosmetics can be imported freely under foreign trade policy of India 2004-2009. According to Indian customs duty and import duty of “PREPARATIONS FOR USE ON THE HAIR”, under chapter 33 of customs duty (subsection IV) HS code 3305; the duty calculation is as follows Basic duty- 10 Add CVD- 14 Spl.CVD- 4 Excise cess- 3 Customs cess-3 All in % Objective analysis & findings The luster hair care products are basically served to the people of African and American origin and the hair pattern of those are quite different from Indian patterns and hair type in physiological and natural terms. The products of luster hair care are good but it’s difficult to find out the segment of its products in India. The content of luster products is also such that they will suit to African origin people. The pricing of the products are at par with Indian market and they can give good competition to existing products but in India multinational players like HUL, P&G, and L’Oreal, Marico and Dabur have very stronghold in their respective consumersegments and have strong market share.
    • 32 The growth of Indian cosmetics and hair care market is slow but steady, 4-6%annum, (During 2006-2007). The major growth of hair care products are expected from Rural market and low income segment, so the target market should be lower income segment of Indian population which constitute of about +70% consumer market. Conclusion The products of “LUSTER HAIR CARE” have good brand recognition in US and American continent and company has products for all range of consumer and market segment. The major strength of LUSTER PRODUCTS is “BRAND RECOGNITION” in their customer segment with quality and exclusiveness to its target market. The competitive pricing in their market segment and product benefits are the other factors of LUSTER’s products. The major discouraging statement about “LUSTERPRODUTS” is their focus on “AFRICAN HAIR” pattern and the products maynot click to Indians as the hair patterns are very different and also the climate of India. The hair care market is also somewhat full of competitors and multinational players having excellent distribution channels and market capture. The trend of hair care industry is also shifting a bit in herbal segment having players like SHAHNAZ HUSSAIN and HIMALAYA, so it may be a tough task to enter in Indian market with such a different product. The deciding factors of market success would be – A) The market segment and target market B) The distribution channels C) The buying pattern D) Product’s offerings and suitability to consumers. References 1. www.lusterproducts.com 2. www.bharatbook.com 3. www.economictimes.indiatimes.com
    • 33 4. www.goliath.ecnext.com 5. www.diagonalreports.com 6. www.in-cosmetics.com 7. www.thehindubusinessline.com 8. www.reportlinker.com 9. www.hair.co.in 10. www.in.reuters.com 11. www.indiainfoline.com 12. www.himalayahealthcare.com 13. www.zoocosmetics.com 14. www.infodriveindia.com 15. www.professionalbeauty-expo.com 16. www.all-bizz.info.com 17. www.amway.com
    • 34 Objective of Research To examine the feasibility of “Zurion”,a multivitamin product to Import in india. COMPANY PROFILE Health products corporation was established in 1973 in New York,USA. Mr Joseph Lewin is president of the company.Customer base includes the international distributors, drug and pharmaceutical wholesalers, importers, supermarkets, mail order companies, and home shopping networks. These marketers are based in the United States, Canada, South America, Asia, Africa, the Middle East, and Europe. Contact details HEALTH PRODUCTS CORPORATION 1060 Nepperhan Ave. Yonkers, New York 10703-1432 U.S.A. Telephone: (914) 423-2900 Fax: (914) 963-6001 PRODUCT PROFILE MULTI VITAMIN- ZURION 100
    • 35 PRODUCT ● Zurion is a multiple vitamin and mineral supplement designed to provide the nutritional support that body needs. ● Zurion contains the antioxidant group of vitamins. ● Zurion supplies entire vitamin and mineral needs in one easy to swallow film coated tablet. PRODUCT BENEFITS/COMPETITIVE EDGE: ● Zurion® helps boost the immune system to protect the body from illness and disease. ● Zurion® provides Vitamin A which helps the immune system, and is important for the skin, respiratory system, and the gastrointestinal system. ● Vitamin E is necessary for healthy muscles, lungs, liver and heart and is also an antioxidant. ● B Vitamins are essential for healthy nerves, skin, hair, liver and mouth. They are important for good muscle tone. B Vitamins are necessary for the metabolism of carbohydrates, fats and proteins, and give us energy. ● Zurion contains Vitamin C, an antioxidant that is required for tissue growth and repair, and helps to reduce the effects of stress, protects against infection and cancer, and increases the absorption of iron. ● Zurion contains iron, which is found in al of our cells. Iron is used in the production of l hemoglobin and oxygenation of red blood cells. Iron helps to reduce susceptibility to infection. ● Zurion provides Calcium which is vital for the formation of strong bones and teeth, for maintaining a regular heartbeat, and for the health transmission of nerve impulses. Calcium helps to lower cholesterol and against cardiovascular disease. ACTIVE INGREDIENTS A,C,D,E,K,B6,B12 Biotin, Iodine , Chromium, Vitamins, Thiamin, Pantothenic Acid, Magnesium, Molybdenum, Riboflavin, Calcium, Zinc, Chloride, Niacin amide, Iron, Copper, Nickel, Folic Acid, Phosphorus, Potassium, Tin, Boron, Vanadium, Selenium, Silicon
    • 36 COMPETITORS Zurion 100: Rs1016/100 tablets (Rs10.16/tablet) Cipla’s –Neutrolin B capsule: Rs.53/10 tablets (Rs5.3/tablet) Pfizer’s-Becosules: Rs8/10 capsules (Rs.0.80/capsule) Ranbaxy’s-Revital: Rs150/30capsules (Rs.5/capsule) ZURION Vs REVITAL Factors Zurion 100 Ranbaxy’s Revital Parent company Health products corporation, since Ranbaxy is a multi national 1973 and basically deals in company from India, 1973 and is distribution of drugs at national andoperating in 49 countries. Global international level. Sales at US$ 1,619 Mn. In generic drugs market Ranbaxy is among top 10 companies. Ingredients Vitamin A, B-complex, c and minerals Ginseng as base, Revital has with trace elements. vitamin A, B-complex,C,D and E,minerals and other trace elements. Market share No data available. 77% to 84% in vitamins and minerals segment, with 27% growth in market globally. Price Rs.10.16/tablet Rs.5/tablet Being a multinational and well established and reputed company in pharmaceutical industry, Ranbaxy has capital as well as market share strength. The distribution channel of Ranbaxy is also very strong.
    • 37 With 77-84% market share and low price in its market segment, Revital has very strong and remarkable position. The brand name and popularity as well as credibility of Ranbaxy in Indian market are very powerful. Ranbaxy is famous for its high quality and low-cost generic drugs, so competing with Ranbaxy will be a tough task. MARKET SCENARIO Globally ranked fourth by volume and 13th in value, the Indian pharmacy industry is a leading producer of high-quality, low-cost generic drugs. Its 14% share of the USD 57 billion world generic market is expected to increase to 50% by 2010. The overall global market of vitamins is $3.5billion and in India the market is of 62 cr (INR). The vitamin market is growing at 9%/annum rate in India. India is gaining in importance as a manufacturer of pharmaceuticals. Between 1996 and 2006, nominal sales of pharmaceuticals were up9% per annum and thus expanded much faster than the global pharmaceutical market as a whole (+7% p.a.). Demand in India is growing markedly due to rising population figures, the increasing number of old people and the development of incomes. As a production location, the country is benefiting from its wage cost advantages over western competitors also when it comes to producing medicines. India’s pharmaceutical industry currently comprises about 20,000 licensed companies employing approx.500, 000 staff. Besides many very small firms these also include internationally well-known companies such as Ranbaxy, Cipla or Dr. Reddy’s. With sales of roughly EUR 1 bn, Ranbaxy is currently the world’s seventh largest generics manufacturer.
    • 38 In 2006, India’s pharma industry exported products worth EUR 3 bn,up from only EUR 650 m in 1996,which was due to the fact that demand for low-cost generic drugs is strongly on the rise, above all in the US, Europe and Japan. At 22%, export growth in 2006 was even twice as high as the global average and in Germany (roughly 11% each). Meanwhile, India’s export ratio has reached 32% –about double the figure registered ten years ago. For some time now, India has exported more pharmaceutical products than it imports. Over the last ten years, the export surplus has risen from about EUR 370 m to currently just under EUR 2 bn. Ranbaxy exports its products to 125 countries, has subsidiaries in nearly 50 countries and production plants in more than 10 countries. The US has become its most important sales market. Sales to the US recently amounted to just fewer than 30% of Ranbaxy’s total sales, while sales to Europe came to nearly 20%.Overall, approx. 80% of the manufacturer’s total sales are generated abroad. Target market segment The target market segment for multivitamins would be: 1. The working class of high income in cities and metro cities. 2. The working women and mothers in metro cities. IMPORT OBLIGATIONS: The pharmaceutical products of multivitamin can be imported freely under foreign trade policy of India 2004-2009. Under chapter 29 of Indian customs duty general exemptions, section (VI) products of chemicals or allied industries, import duty is as follows- Basic duty of customs - 7.5 Additional duty (CVD) - 14 Excise Education cess- 3 Customs education cess- 3 Special additional duty- 4 (All in %) CONCLUSION: The company “Health Products Corporation”, New York, USA, is basically deals with the marketing and distribution of health products all over the world. The company is not a well known one and the recognition of product is also a problem. The direct rival is Ranbaxy’s “Revital” multivitamin having market share of more than 80% globally. The key concern points will be – -the content of the Zurion is almost same except few advances in Revital. -The strong hold, establishment and distribution network of Ranbaxy.
    • 39 -Indian pharma market is very price sensitive, so high price of zurion is unfavorable. -Target market segment is limited and substituting revital is great challenge and costly affair. -Pharma market growth is somewhat is stagnant (8-9%), at such stage launch of new product as a substitute of existing product is a great risk. REFRENCES: 1. www.in.msn.com 2. www.smartbrief.com 3. www.indiabizclub.com 4. www.indianexpress.com 5. www.quackwatch.com 6. www.infodriveindia.com 7. www.nppaindia.nic.in 8. www.youqa.com 9. www.m2c.com 10. www.domainb.com 11. www.financialexpress.com 12. www.indiamarkets.com 13. www.rediffnews.com 14. www.naturetherapy.com 15. www.contractpharma.com 16. www.bechna.com 17. www.hpc7.com 18. www.tribuneindia.com 19. www.hammernutrion.net 20. www.forbes.com 21. www.ranbaxy.com 22. www.ncbi.nlm.nih.gov 23. www.businessreports.worldpress.com 24. www.mims.com 25. www.pharmaceutical-drugmanufacturer.com 26. www.yahooindia.com 27. www.google.com 28. www.emerckindia.com 29. www.timesofindia.com 30. www.rmahq.org
    • 40 CC POLLEN CO; USA Research objective To examine the feasibility of import of CC Pollen Co.Products in India. COMPANY PROFILE Bruce R. Brown, Carol M. Brown, and Royden Brown are principals of the company. The cc pollen company basically deals in Bees, beehive social structure, and Super foods from the beehive - Bee Pollen, Royal Jelly and Bee Propolis. Contact CC Pollen Co. Phoenix, Arizona, USA High Desert Beehive Products 1-800-875-0096 or 602-957-0096 PRODUCT PROFILE
    • 41 1. Bee pollen products: Bee Pollen comes in assortment of loose granules, capsules and tablets. Bee Pollen is only U.S. Bee Pollen, and it has been collected from diverse geographic areas. 2. Bee propolis products: Bee Propolis comes in capsules, tablets and loose powder. Propolis is manufactured in state-of-the-art manufacturing facility in Phoenix, Arizona. The High Desert Propolis extract is of unparalleled quality. The propolis extraction procedures utilized by C C Pollen are the result of extensive research and considerable expenditure. This proprietary process removes all foreign matter and impurities while at the same time preserving the bioactivity of the propolis and its flavonoids. 3. Royal jelly products: Royal Jelly comes in capsules, tablets, loose powder and liquid in honey. Royal Jelly is lyophilized to preserve the integrity of the nutrients. 4. Aller Bee-Gone: Aller Bee-Gone is a powerful mixture of 27 different herbs in addition to our High Desert Bee Pollen. Aller Bee-Gone is the product that proved the value of natural alternative products to Sen. 5. Total Enzyme Balance: Enzymes are the workhorses of the body - nothing in the body would function without enzymes. In a trade-off for shelf life and convenience, our modern day food processing techniques sacrifice a great deal of the nutritional integrity of our foods, and enzymes are the first nutrients to degrade! Total Enzyme Balance is designed to help with the digestion and absorption of the nutrients in food. 6. Skin Creams: Royal Jelly skin cream is a great beauty and wrinkle cream. Propolis skin cream is wonderful for damaged skin or used as a skin protector for sun and wind exposure. Bee Clear skin masque contains Bee Pollen, Royal Jelly and Propolis in a base of Honey, for the best honey facial. 7. High Desert Honey Products: Royal Jelly in Honey tastes great is easy to use, convenient to carry, and every teaspoon is packed with 1000 mg of pure, raw, liquid Royal Jelly in a Honey base. COMPETITORS AND PRODUCT COMPARISON
    • 42 1. Raw Honey Product; CC Pollen Honey Rs.290/100gm (including shipping cost) Wipro’s –SANJEEVANI Rs40/100gm Dabur’s Honey Rs.37/100gm In India the honey market is basically deal by local and small players. The local raw honey cost is almost Rs.25-45/kg, and even more cheaper in rural areas. 2. Bee Pollen Products: CC Pollen’s –Rs.791/1500mg (90 chewable tablets) In India till now there is no pollen’s market is yet known. 3. Bee propolis product:-Rs.664/500mg (60 tablets) Bee propolis is imported through internet shopping and as it there is no known and organized producer in India. 4. Royal Jelly Products: Rs.625/30gm (tablets) The royal jelly is imported through internet shopping and as it there is no known and organized producer in India. Raw honey and its refined derivatives are well consumed in India. 5. Aller Bee-Gone: Rs.1581/144 tablets. Available on internet shopping sites and no known and organized producer in India. 6. Total Enzyme Balance: Rs.833/90 capsules. Available on internet shopping sites and no known and organized producerin India. 7. Skin Creams: Rs.625/50gm (CC Pollen’s) Shahnaz Flower Power: Rs581/40gm Well known products with Shahnaz’s brand name. Wellness-shop: Rs.863/15ml. (Honey base cream) MARKET SCENARIO
    • 43  China is currently by far the largest honey-producing nation in the world, with around a 40 per cent slice of the market. The next biggest producers are the US, Argentina and Ukraine.  The key exporters in the world honey market are China supplying 30 to 35 per cent, Mexico supplying 20 per cent and Argentina supplying 15 to 20 per cent.  The three biggest honey importers are Germany, Japan and the United States. Germany is the world's largest consumer, importing 90,000 tones of honey products annually.  The per capita consumption of honey in Germany is 1.5 kg compared to a dismal 3 g in India. WORLD HONEY MARKET INDIAN MARKET SCENARIO  India produces a total of 70,000 tones of honey every year, of which 25,000-27,000 tones are being exported to more than 42 countries including the EU, the Middle East and the US.  Punjab, Haryana, Uttar Pradesh, Bihar and West Bengal are the major honey producing states.
    • 44  The honey exports from India fetched around Rs 200 crore in foreign currency in the fiscal 2002-03.  The sale price of honey by beekeepers in India varies fromRs 25 to Rs 45 per kg Wherea in countries like the USA, Argentina and Brazil, the price varies from Rs50to Rs 80/ kg. Price, supply, purity and service are the major determinants in the honey industry.  The honey market in India is currently dominated by the unorgan ized sector, which contributes 42,000 tones of the tota annual output of 70,000 tones -- worth Rs 1200 crore l (Rs 12.5 billion). ANALYSIS AND FINDINGS During the data collection and research over the company and company profile, I have found some objectionable and revealing facts about the company and its past background .The CC Pollen company, phoenix based in US was under the charge of false claim and misrepresentation of their products in public as well as in advertisement . “The CC Pollen Company, a Phoenix-based firm, and its owners have agreed to pay $200,000 to settle Federal Trade Commission(FTC)charges that they falsely represented that products containing bee pollen could cause consumers to lose weight, alleviate permanently their allergy symptoms, and reverse the aging process, among other claims. The FTC also alleged that some of the claims were made in quot;infomercialsquot; that CC Pollen misrepresented to be objective news or documentary programs, rather than the paid ads that they were.(In1992 and revised in 1999). The FTC also charged CC Pollen's principals, Bruce R. Brown, Carol M. Brown, and Royden Brown, all of Phoenix (collectively,CC Pollen). All have signed the proposed settlement agreement. The FTC also alleged that, in these infomercials as well as the print ads, CC Pollen falsely represented that consumption of bee-pollen products: -- cannot result in an allergic reaction; -- Will alleviate permanently all of the consumer's pollen-allergy symptoms. -- slows, prevents, or reverses the aging process ; -- can cure, prevent, or alleviate impotence or sexual dysfunction; and - Cause weight loss. In addition, CC Pollen allegedly represented that bee pollen products are an effective antibiotic for human use. None of these claims are true, the FTC charged.
    • 45 CONCLUSION The background and credibility of company cc pollen is not at par in their own national (US) as well as international market and company was already charged with the false claim and misrepresentation of its products in market by Federal Trade Commission (FTC). FTC was created in 1914, with the purpose to prevent unfair methods of competition in commerce and is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develo policy and research tools through hearings, ps workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies. The products of the company are of high price and in India (if imported), as local honey market and its price is cheap. The Honey market in India is basically consist of local and regional players and ofunorganized sector so, import of honey and its derivatives will be a costly affair. So, from business point of view, in simple words there is no possibility of any kind of business with CC Pollen Company. BIBLIOGRAPHY 1. www.rajamb.com 2. www.beezhoney.com 3. www.indianexpress.com
    • 46 4. www.rediffnews.com 5. www.quackwatch.com 6. www.nextag.com 7. www.goliath.ecnext.com 8. www.kejriwalhoney.com 9. www.andhranews.com 10. www.oneindia.com 11. www.topnews.com 12. www.infodriveindia.com 13. www.bharatbook.com 14. www.yahoonews.com 15. www.ftc.gov/ 16. http://www.skamberg.com/honey.htm 17. http://www.beekeeping.com 18. www.greathoney.com 19. www.beelinker.com 20. www.ccpollen.com 21. www.wellness-shop.in 22. www.kejriwalgroup.co.in 23. www.imporiumonnet.com 24. www.wikipedia.com 25. www.thehindu.com 26. www.thehindubusinessline.com
    • 47