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The market project is done on the certain productlike readymade garment, tea brand cigarette, edibleoil to find out the risk involved and how to competein a foreign market. The project is done on asystematic information to give proper knowledgeabout the risk and competition.INTRODUCTION
Indian readymade garment industry is the one the largest exportingsector to the European union and U.S.A . Indian readymade garmentindustry is a Labor intensity sector which gives a lot of employmentopportunity to the rural people . The Indian readymade garmentIndustry which exporting to the European union and to U.S.A which contributes to theexport earnings of the India.READYMADE GARMENT INDUSTRY
Competition from other exporting countries(China and Bangladesh )• Exchange rate fluctuation• Diversification of goods in the foreign market• Dynamic change in fashion• Restriction from entering a new market• Have to compete with countries that have low labor cost and lowraw material cost .• Delay in delivering time (lead period)• non availability of workers.risk and to compete in entering foreign market for readymadegarment industry?
Garment industry must be competitive by providing quality and fashionable goods• buy the currency at current rate so that change in rate will not be effected• The foreign market required a diversified product line which should be provided tocompete with the other players.• known your customer• go to other country which have no trade restriction to increases market share• government support is required to easily avail raw material and availability of laborforce• new technology , method and process should be implemented to reduces leadtime and increases efficiency and effectiveness.How to overcome this situation?
••TEA IS AN AROMATIC BEVERAGE PREPARED BY ADDINGCURED LEAVES OF THE CAMELLIA SINENSIS PLANT TO HOTWATER.•TEA IS THE MOST WIDELY CONSUMED BEVERAGE IN THEWORLD.•IT HAS A COOLING, SLIGHTLY BITTER, ASTRINGENT FLAVORWHICH MANY ENJOYTEA
BLACK TEA:•BLACK TEA IS THE MOST OXIDIZED AMONG THE VARIOUS KINDS OFTEA.•IT IS ALSO STRONGER AND HAS RELATIVELY MORE CAFFEINECONTENT THAN THE OTHER VARIETIES.•IN THE PROCESS OF OXIDIZATION, THE WATER IN THE TEA LEAVESEVAPORATES, AND THE LEAVES ABSORB MORE OXYGEN.Types of tea
GREEN TEA:GREEN TEA IS THE LEAST OXIDIZED VARIETY OF THE TEA.IT IS ALSO ASSOCIATED WITH SEVERAL HEALTH BENEFITS. ONEOF THE MOST PROMINENT HEALTH BENEFITS OF THE GREENTEA CONSUMPTION, ON REGULAR BASIS, IS THAT IT REDUCESTHE CHANCES OF HEART ATTACKS AND CERTAIN TYPES OFCANCER TO A GREAT EXTENT
OOLONG TEA:ONE OF THE MOST POPULAR TEA IN CHINA, OOLONG TEA ISMORE OXIDIZED THAN THE GREEN TEA, BUT LESSER THANTHAT OF THE BLACK TEA.IT IS ALSO ONE OF THE MOST EXPENSIVE KINDS OF TEA.IT IS AN IDEAL CHOICE FOR PEOPLE WHO ARE WARY OF THESTRONG FLAVOR
WHITE TEA:WHITE TEA UNDERGOES MINIMAL OXIDIZATION; HOWEVER THE TEALEAVES CHOSEN TO PREPARE THIS VARIETY ARE PICKED FROMYOUNG BUDS.THE WHITE TEA HAS A NATURAL SWEETNESS ASSOCIATED WITH IT.
GLOBAL COMPETITIONThe major competitive countries in tea in the world are SriLanka, Kenya, China and Indonesia.Another important point is that, U.K has substantial interest in tea cultivation inKenya. Most of the sterling companies, due to implementation of FERA Actstarted tea cultivation in Kenya. So, it makes business sense for U.K. to buytea from Kenya and Kenya became the largest supplier of tea to U.K
importerwholesaler retailersMarketing channel in foreignexporter importer distributerconsumersconsumerexporter
Competition by low cost production countries like china, sri lanka andKenya.• culture prefers different type of tea• availability of market• government regulation• countries taste and preferences• consumer buying habitsRISK AND WAY OF COMPETING IN A FOREIGN MARKET OF THE INDIANTEA ?
• Should market tea as to cultural, taste and preferences eg : Chinese andJapanese prefers green.• should focus on economy of scale• Indian government should help in the promotion and smooth working in othercountry• different tea should be marketed to the need of the marketHow to Competing with the foreign market
• Edible oil imports have been liberalized since the 19--’s and now attract lowertariffs•No import duty on crude oils in contrast to finished products (refined oils andhydrogenated fat)• India is the world’s largest importer of edible oils and market demand isexpected to sustain• Loose or unbranded oil accounts for bulk of sales compared to branded andEDIBLE OILMarket
Characteristics•Demand for imported oils to remain strong due to growingconsumption and constrained supplies• Organized sector, earlier disadvantaged due to sales taxregime, is not growing its market share• Domestic production faces supply-side constraints andinefficiencies thereby ensuring the dependence on large levels ofedible oil imports
•Rising consumption accompanied by increasing domesticproduction but large imports are still necessary to bridge the gap•Palm and soybean oils account for bulk of imports due to theirlow prices• Prices have risen at a% p.a. with a dip observed only in 2005 -2006Trends
• Government restriction in exporting or entering a foreign market.• lack of raw material• lack of technology• competition by other big players• In India demand for edible oil is surplus• less productionRisk and way to compete in foreign market for edible oil of Indian company?
•Increase in production to international standard• increase availability of raw material by increasing cultivation• identify foreign market that have high demand for edible oil• implement to new technologyCompeting in foreign market
•THE CIGARETTE INDUSTRY IS ONE OF THE OLDEST INDUSTRIES IN INDIA.•IT IS AN IMPORTANT AGRO BASED INDUSTRY.•IT IS HIGHLY LABOR INTENSIVE & PROVIDES LIVELIHOOD TO ABOUT 5 MILLION PEOPLEDIRECTLY AND INDIRECTLY.•CIGARETTE IS AN ITEM FALLING UNDER THE FIRST SCHEDULE TO THE INDUSTRIES(DEVELOPMENT & REGULATION) ACT, 1951 AND REQUIRES AN INDUSTRIAL LICENSE.•IT EXPORTS A GOOD AMOUNT OF CIGARETTE IN VARIOUS COUNTRIES, WHICHGENERATES A HANDSOME AMOUNT OF REVENUE FOR THE COMPANY.cigarette industry
•CIGARETTE EXPORTS DURING 2007-08 INCREASED BY 11 % IN VOLUMETERMS OVER THE EXPORTS OF PREVIOUS YEAR.• MAJOR MARKETS FOR CIGARETTES ARE UAE AND USA, ROMANIA, SAUDIARABIA AND IRAQ WHERE THE DEMAND FOR GENERIC LOW COSTCIGARETTES IS GROWING.cigarette industry
LIST OF MAJOR PLAYERS IN INDIANCIGRATTE INDUSTRYGodfrey Phillips(India) Ltd.V.S.T. IndustriesLtd.ITC LimitedG.T.C. IndustriesLtd.
One of India’s premier private limited groups withover 99 years.Large & established Distribution Networks.It has more then 21,000 employees at more then 60location across India with 4,86,000 shareholders.Ranks No. 4 among Indian listed Private SectorCompanies by market cap. (@ April 09)Rated as- one of India’s Most Respected Companies(IMRB-Business world Survey 2006)ITCONE OF INDIA’S MOST VALUABLE CORPORATIONS
ITC HISTORY OF THE COMPANYOn 24th Aug. 1910 the company was incorporated as aprivate company under the name, Imperial Tobacco Co.of India ltd.On 27th Oct. 1954 the company was converted into apublic limited company. The name of the company was changed from theImperial Tobacco co. of India ltd., to India Tobacco co.ltd. In May 1970.On Oct. 1972 company entered into Hotel business.On 2000 company has launched a project “ e- choupal”in Bhopal to Web-enable farmers to make a beginning inAgriculture e-trade.During the same year ITC has launched Wills sport, afull range of internationally styled premium wear for Men &Women.
The second largest player in the Indiancigarette industry.Has two major stakeholders, one of Indiasleading industrial houses - the K. K. Modi Groupand one of the worlds largest tobaccocompanies, Philip Morris.GODFREY PHILLIPS INDIA LTD.
Incorporated in India in 1936, the Companyestablished its own manufacturing facilities in 1944On 1946 GODFREY PHILLIPS became a Public Ltd.Co. with its manufacturing operations in MumbaiIts products are distributed through an extensive Indiawide network comprising 484 exclusive distributors andover 800,000 retail outletsGPIHISTORY OF THE COMPANY
oGPC is a professionally managed organization in the field oftobacco and tobacco related products.oEstablished in the year 1930 by the late Shri Narsee Monjee.oGTC is the first wholly owned company specializes inmanufacturing & exporting an exclusive range ofCigarettes, Flavor Cigar & Non Tobacco smoking product.oGTC has manpower strength of 2000 employees spread acrossmanufacturing.oThe Company has two major production facilities in Mumbai aswell as Baroda.GOLDEN TOBACCO LIMITEDPROFILE
Vazir sultanTobacco.Industries ltdThe company was incorporated in 1930 at Hyderabad . The third largest player of Cigarette industry in India. In 1984 the name of the Company was changed from The Vazir SultanTobacco Co. Ltd. to VST Industries Ltd.The Company manufactures and distributes Cigarettes The products are soldunder the trade names `Charminar Specials, `Shah-I-Deccan, `Qila, `HighCourt, `Vazir and `Ambassador.
•Health hazardsForeign competition• Trade barriers• Market distribution riskCOMPETING IN FOREIGN MARKET• Target countries that have lot of consumers(smokers).•Use different market channelRisk and the way to compete in a foreign market
The information helped in find therisk involved in the foreign market how to compete in foreign market. Asthe world becomes a globalized village which opened up new marketwhich gave a huge demand for goods and services. By opening up of newmarket has lead to compete in competitive environment which has leadto do a project in this manner .conclusion