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9\2\2010

EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY


AND COUNTRIES THEY OPERATE

EXPORT HOUSE ITS MARKETING


STRATEGY, PRODUCT STRATEGY
AND COUNTRIES THEY OPERATE

EXPORT-IMPOT PEOCUDURES
AND DOCUMENTATION
EN
PRESENTED BY-

ASHISH KHATU. 13
PRASAD OTAWKAR. 18
SANKET GAIKWAD. 07

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
AND COUNTRIES THEY OPERATE

SR. TOPIC
NO
1 INTRODUCTION
2 Leadership by Vision
3 Organogram
4 Products
5 Core Strengths
6 Operations office
7 Sales design office newyork
8 Operations surat knit factory
9 Scope
10 De Facto appointed to Aloka Europe -
London-based
11 About Aloka Europe
12 Product Strategy for Export
13 After-Sales Service
14 Pricing Strategy for Export
15 CONCLUSION

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Intro
Established in 1980, our company has emerged as a leading provider
of high fashion accessories to high - end buyers across Europe, USA,
Australia & Japan. What began as a merchant export firm has now
grown into a fully integrated, self sufficient organization having a well -
structured nationwide operation with 20 multipurpose units, including
sales & design offices in New York to cater to clients in the western
world. As a house of total fashion accessories, we follow total
integration of the entire production processes with minimal
outsourcing to assure our clients - total quality, attention to detail,
value-addition and timely delivery to meet export schedules. As
veterans in this field, we keep pace with the latest trends and
advances in fashion.
A leadership that's distinguished by its foresight and vision, a well-
structured team that believes in R&D and quality and a commitment to
offer its best to the world of fashion helps us to stand head and
shoulders above the rest.

Leadership by Vision
Established in 1980, we began as a small enterprise undertaking job
work. We have, since gradually grown to emerge stronger as a family-
owned partnership firm, under the able leadership of Mr. C.M. Agarwal
& Mr. Alok Agarwal. Under their tutelage, our operations have
metamorphosed into a multi-locational, fully integrated and
internationally respected Export House that has made a name for itself
in fashion accessories.

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
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Organogram

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
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Products

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
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Scarves
A fascinating range of colourful and trendy scarves manufactured from
the choicest array of material - like polyester, viscose, silk, velvet and
others.
Wraps
A wonderful combination of aesthetic value and functional comfort, the
wraps collection by Aloka never ceases to allure the fashion conscious.
Semi Garments
A breathtaking collection of kurta, shrugs, capelets, ruannas among
others in varying styles and patterns - from prints, knits, wovens,
embroidered, etc.

Core Strengths

A fine balance of independent


facilities & resources, best
industry talent, latest

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
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technology, streamlined production systems and a visionary


leadership make Aloka Exports an organisation that's marked for
long-term success and leadership.
Our Core Strengths are:
• Fully integrated, self-reliant multiple facilities.
• Customised product development as per customer needs.
• Better process control with integrated units.
• Continuous R & D for better product development.
• Regular Trend analysis.
• Full-fledged In house Studio Facility.
• New York Office for representing interests in western
countries.

Operations mumbai head office

Our Head Office at Wadala, Mumbai enjoys a central and strategic


location, lying close to textile and fashion sourcing centres. The HO
is an integrated multi-divisional operation that houses production,
sample offices and in-house studio in a common facility. It offers an
elaborate line up with production department, two sample
departments, a label tag department, two fully-equipped well-
cataloged showrooms, quality control department, accounts section
and the shipping department. In terms of equipment and machinery,
all facilities at the HO enjoy self sufficiency with the latest
infrastructure, including fully computerised systems, latest testing
tools like color matching box, croaking tests, etc. and weight
machines in all departments.
With a well-synchronised, experienced and professionally qualified
team, the HO forms the hub of core functions including:

In-house Studio

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Our in-house studio facility at the HO is specially designed to


provide full-service design support covering an array of key design
functions like Graphic Design, Color separation, Design innovations,
Digital textile printing and more. Our studio is a designer's dream
come true with fully computerised design technologies, digital
textile printing systems, plotters and an exhaustive archive of books
& reference material on print, embroidery, art & design and an in-
house library of sequins and beads for the designer. It is home to a
talented team of international designers who enjoy complete
creative & R& D freedom and excel at creating styles that make a
sensation in international design circles.

Sales design office newyork

Our Sales & Design Office at New


York acts as an important
business arm, especially when it
comes to serving the western
markets. Our New York office is
headed by veteran designer
Susan Siegal, who oversees
complete designing and trend
analyses, based on latest
international movements in the industry. She is also in charge of
organising and expediting sales meeting with buyers in US and
other western markets.

Operations surat knit factory

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Strategically based in the textile town of Surat, the sprawling two-


storeyed knit factory is one of the oldest and well-structured units of
the company. While being located in the textile hub gives us an
edge in terms of sourcing diverse types of yarns, knit techniques
and structures, the factory itself is elaborately laid out with fully
automatic machines kept in air conditioned environment. The
ground floor offers mending, pressing, checking and packing facility
and a magnificent office, while the first and second floors host
manual knitting machines (2.5 to 16 gauge) in addition to the yarn
stores and linking area. To top it all, the Surat factory carries out a
lot of R&D activity with lots of new innovations & process
development on a large scale.

Operations alok-kalyan
As the biggest and most modern facility in our company, the 3-
storeyed Aloka Kalyan unit acts as the hub for key operations covering
- dyeing (yarn & fabric), screen making, printing & finishing. The
facility is professionally designed and expertly laid out to fully
streamline and integrate the entire process, while avoiding
unnecessary blockages, bottlenecks and wastage.
The unit is modeled on lines of flexibility - in line with our policy for
maintaining a fine mix of manual and machine processes so as to have
the best of both worlds. While samples are best produced by hand,
effective bulk production happens best with machinery. This is where
our Kalyan unit scores on both fronts. The unit is designed undertakes
both - hand / table printing as well as machine printing using rotary /
flatbed system. Unlike others in its class, the facility offers an
unmatched 14-colour printing, available only with chosen few
companies.
A great work atmosphere with lavish gardens and open space
surrounding the unit, a dedicated R&D team of seniors that's
constantly working on process / product improvements and a fully-
equipped lab fulfilling crucial needs like colour testing - make Aloka
Kalyan - a unit that makes us proud and helps us ensure better quality
products for our clients.
- Financial and Strategic Analysis Review
ALOKA CO., LTD. (Aloka) is engaged in the manufacturing and sale of
diagnostic ultrasound systems, nuclear diagnostic systems,

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osteoporosis diagnostic systems, sample testing systems and


therapeutic/surgical systems for healthcare industry. The systems
developed by the company are used in the treatment of
Obstetrics/Gynecology, Radiology, Surgical and Veterinary fields. It has
presence across Japan, Western Europe, Asia and other regions. The
company is headquartered in Tokyo, Japan
Global Markets Direct's Aloka Co., Ltd. - Financial and Strategic
Analysis Review is an in-depth business, strategic and financial
analysis of Aloka Co., Ltd.. The report provides a comprehensive
insight into the company, including business structure and operations,
executive biographies and key competitors. The hallmark of the report
is the detailed strategic analysis of the company. This highlights its
strengths and weaknesses and the opportunities and threats it faces
going forward.

Scope
• Provides key company information for business intelligence
needs.
• The company's strengths and weaknesses and areas of
development or decline are analyzed. Financial, strategic and
operational factors are considered.
• The opportunities open to the company are considered and its
growth potential assessed. Competitive or technological threats
are highlighted.
• The report contains critical company information - business
structure and operations, the company history, major products
and services, key competitors, key employees and executive
biographies, different locations and important subsidiaries.
• The report provides detailed financial ratios for the past five
years as well as interim ratios for the last four quarters.
• Financial ratios include profitability, margins and returns, liquidity
and leverage, financial position and efficiency ratios.
Reasons to buy
• A quick "one-stop-shop" to understand the company.
• Enhance business/sales activities by understanding customers'
businesses better.

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
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• Get detailed information and financial and strategic analysis on


companies operating in your industry.
• Identify prospective partners and suppliers - with key data on
their businesses and locations.
• Capitalize on competitor's weaknesses and target the market
opportunities available to them.
• Compare your company's financial trends with those of your
peers / competitors.
• Scout for potential acquisition targets, with detailed insight into
the companies' strategic, financial and operational performance.

De Facto appointed to Aloka Europe - London-


based team to promote the recently rebranded
company
De Facto Communications, part of the Bell Pottinger Group, has been
appointed to provide PR support to Aloka Holding Europe AG, the
worlds leading pioneer of diagnostic ultrasound systems for
healthcare. Recently rebranded with the strap line ‘Illuminate the
Change’, Aloka Europe already has a strong market share in all key
European countries.
Aloka has commissioned the De Facto team with raising the profile of
Aloka across Europe, promoting its range of Prosound systems,
specifically designed for cutting edge medical imaging in Obstetrics
and Gynaecology, General Imaging, Cardiovascular, Surgical and
Endoscopic applications in medicine.
Aloka already has an excellent reputation throughout the healthcare
community and De Facto will expand upon the company’s innovations
and achievements to generate further market awareness through the
delivery of news stories, Key Opinion Leader case studies and articles

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EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY
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illustrating how Aloka’s leading edge systems are benefitting the


healthcare industry.
Commenting on the appointment of De Facto, Carlos Faustmann, Chief
Operating Officer of Aloka Europe, remarked: “De Facto are able to
provide us with the PR and marketing support to deliver our message
to our audiences. With their expertise and knowledge of the diagnostic
healthcare market, we know De Facto will help us expand our market
reach by providing us with the targeted communications to connect to
our markets”

About Aloka Europe


Aloka has been the world’s leading pioneer of ultrasound systems for
the medical and health science industries for nearly 60 years.
Providing solutions to the Obstetrics/Gynaecology, General Imaging,
Cardiovascular, Surgical and Endoscopic Ultrasound fields through an
array of cutting edge medical imaging techniques, Aloka is dedicated
to excellence providing the systems needed to ensure the best quality
of life for patients. Its international headquarters are located in Tokyo,
Japan, the U.S. headquarters in Wallingford, CT and its European
headquarters in Zug, Switzerland.

Product Strategy for Export


The export firm may find a foreign market for its existing product
without the need on any kind of redesign. Very often, some minor
modifications may be necessary to capture a share of the foreign
market.
The modifications may be due to legal requirements, for example:
product labeling regulations, weight and measures, language or may
be dictated by the local culture or climate.

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From the export point of view, a firm's product can be divided into
three aspects:
1. The physical product itself.
2. The package in which the product is sold and the name.
3. The service that is provided together with the product.
1. The Physical Product
The existing products should be exposed in the foreign market to
determine their reactions by sending samples to prospective Export
agents, Export merchant, Import agent or distributors.
The size of the product may also be a consideration. For example,
people in Asia are generally smaller, requiring smaller sizes in clothing
and footwear.
Units of measurement also vary or food products will have to comply
with health regulations and electrical products having to meet safety
requirements.

Climate often affects the design requirements: The ability to withstand


extreme heat, cold, dryness and humidity.
Religion and other cultural differences may also determine whether the
product is saleable in its present form or otherwise.
For example: branding your IT anti-spam software product Amor which
mean "Love" in Spanish will present a different impression of your
product selling them in Spanish speaking countries.

Product Package and Name checklist


The package used to enclose the product for local market may not be
suitable for export. Questions to be answered should include:

(a) Does the product need extra protection from rough handling, or
climatic extremes?
(b) Is the product easily recognizable and appealing to the foreign
customer?

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(c) Does the label conform to local regulations?


(d) Does the label clearly indicate the contents, even to persons who
may be illiterate?
(e) Does the label need to be in a foreign language?
(f) Does the logo or brand name have another, perhaps undesirable
meaning in the local language?
(g) Does the package need to be larger or smaller than the one sold
locally? Perhaps local consumers can only afford to buy smaller
quantities of it.
(h) Have the brand name and trademark been registered in the foreign
country?
After-Sales Service
Many products such as food require little or no after-sales service.
However, machinery and equipment require a certain level of service
which can determine whether the customer buys the product or
someone else's. Usually, the best way to handle after-sales service is
to let the distributor provide it.

Pricing Strategy for Export


The price charged for the export product, should cover all the various
costs involved in producing and marketing it. Sometime, an exporter
may be satisfied with just breaking even or even incurring a loss - with
a view of getting established in a new market.
It is tempting to sell products at a price that covers only the variable
costs of each unit sold to make some contribution to the fixed costs or
factory overhead.
There is always the risk that the exporter can be accused of dumping
its products abroad and are required to pay anti-dumping import duty.
An exporter should calculate and determine all the costs involved in
selling its product in the foreign market, including:

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1. Foreign agent's commission.


2. It's own required profit, and then quote a price on that basis.
Market Research Strategies for Export
The manufacturer should determine which foreign market to target
first. Malaysian firm, for example, automatically looks North of the
border such as Thailand. Therefore, exporters should always consider
exporting Next Door.
In targeting likely foreign market, the exporter should use a "Checklist"
of factors. In practice, market research through the participation in a
trade fair, government sponsored export mission or personal visit to
foreign countries.
Once a preliminary survey has suggested one or a few countries for
closer investigation, the exporter should find out:
1. The potential size of the market for its product
2. The types of customers, competitor's products and
their prices
3. The most suitable channels of distribution
4. The best way of entering the market (agent,
joint venture, etc)
5. The existence of any market opportunities that would
provide a market "niche" and "competitive edge"

Smaller exporter may wish to reduce the costs of any market survey
by using government services available.
• Trade Commissioners stationed at embassies abroad are only too
willing to help the exporter assess the foreign market and
suggest likely distributors.

• So long as the export firm provides adequate product literature,


samples and other necessary information.
If the market research required, is beyond the scope of the Trade
Commissioner, he will suggest the names of some suitable local
market research firms.
Some manufacturer may decide not to export themselves, but employ
a trading house or export agent to act on its behalf in seeking market
opportunities, promoting and securing orders.
How to do Export Promotion?

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"Promotion is the term used to describe


marketing activities - to persuade potential
customers to buy your goods or services."
What are the various ways
to promote your products abroad?.
The exporter must consider, if he plans to use agents or distributors to
handle his product channels of distribution, his first task will then be to
promote the product and his company to them.
The next task is to consider, whether current brochures would be
suitable for use with foreign agents, distributors or buyers. Does the
promotional material needs to be translated into the local foreign
language to make it acceptable.
Promotion blend, in promoting the export of its product or products,
the exporter will have to decide on an appropriate blend of advertising,
selling and other sales activities.
Promotion budget, in practice the amount of money available to be
spent is often an arbitrary figure set by top management, varying
according to its keenness to get into the export market.
As a rule, the planned expenditure should be at a percentage of
expected sales.
As a guideline, the exporter could establish an initial export promotion
budget between 10% to 20% of expected sales.
This budget could be divided in one of the following suggested ways:
1. For consumer goods
45% advertising
35% selling
10% other promotion

2. For industrial goods


55% selling
25% advertising
10% other promotion (including trade fairs)
In the introduction stage of the exporter's product, emphasis must be
on informing consumers, making the product easily available, and
encouraging the foreign consumer to try it.

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In the market growth stage, the firm should concentrate on promoting


brand loyalty.
Later, in the market maturity stage, promotion can be placed on
product differentiation - trying to make the product as unique and
differential as possible from competitive ones.
Sales decline stage, if and when sales begin to slip, special promotion
efforts will be required.
The type of customers - Is the promotion aim at Industrial user or
middlemen. Advertising and samples are often the most efficient way
of persuading middlemen to try a new food product.
Whereas, personal selling is essential in reaching wholesalers. Trade
fairs and trade journals is an excellent way of reaching industrial users.
Looking for sales leads, there should be some systematic way e.g.
advertising in trade journals, direct mail to prospective buyers,
participation in trade shows, etc., or aware of buyer's guides and trade
directories for source of prospective agents, buyers, etc.
Finally, in the area of export promotion, you should consider a
systematic way to keep track of the company's promotional activities
in that foreign market, customers, other contacts made and decide
how often to follow-up and visit to the foreign market to develop
personal contacts.
Conclusion, an analysis of the promotion blend should help the
exporter decide in spreading its promotional effort in an optimum
combination of advertising, selling, and other promotional activities
such as credit, product warranties, training, special introductory offers,
samples, contests, displays, sales aids and after-sales service etc.

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