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CASE STUDY-2

IDENTIFICATION OF
INTERNATIONAL MARKETING
OPPORTUNITIES FOR BASMATI
RICE FROM INDIA

GROUP-5
INTRODUCTION
The case analysis is about India as a major
producer and exporter of premium quality rice
i.e. Basmati rice. The data in the case shows the
export of Basmati rice from India in terms of
value and quality from period 1999-2003.It also
says about the major markets of Indian Basmati
rice and the comparison of direction of India’s
Basmati exports in the year 1999 & 2003.
SALIENT FEATURES
Rice – the most significant staple food of more
than 70% of world’s population.
India has the largest area (31% of total area)
under rice cultivation in the world.
India – 2nd largest producer of rice in the world
after China.
Developing countries – main players in the
world’s rice production & trade.
Basmati rice – India and Pakistan.
Major markets of Indian Basmati.
OBJECTIVE
To look for market with high
potential for Indian Basmati in
international market
Direction of India's Basmati rice
exports (1999)

9% 5% 1%4% 8%

73%

S.ARABIA UK KUWAIT
Direction of India's Basmati rice
exports (2003)

5% 4% 21%
8%
10%

52%

S.ARABIA UK KUWAIT
STATUS
CURRENT STATUS – India’s Basmati rice
export has undergone a sea change in
terms of markets in other countries (i.e.
21% increased as compared to 8% in
1999). Thus change in direction of export
of Indian Basmati in 2003.
PROPOSED STATUS – To look for more
international markets having high potential
and growth for export of Indian Basmati.
ANSOFF MODEL
MARKET DEVELOPMENT –

New geographical markets : exploring


opportunities in international markets
for export of Basmati rice from India to
new country(s).
KEY PROBLEM
Despite large quantity of rice grown
and its dynamic growth, the
international rice market remains thin
i.e. low growth of global trade of rice.
BCG MATRIX
CURRENT STATUS :
STAR –
1. It is because high growth and potential for entering in
new markets .
2. High market share – #1 exporter of Basmati rice in the
world.

PROPOSED STATUS :
CASH COWS –
1. Low market growth – matured, successful business and
hence little need for investment on new market.
2. Thus retaining a huge market share as well.
QUES. & ANS. - (1)
INTERNATIONAL MARKET RESEARCH ON
POTENTIAL MARKETS:
1. Collect statistics of Basmati rice exported to various
countries.
2. Identifying the large fast - growing markets for
Basmati.
3. Then looking for the market growth whether it is
consistent or not over the past 3 to 5 years in the
target areas.
4. Also selecting some smaller emerging markets of
high potential to have a greater competitive
advantage over the competitors and further study of
these markets for more future opportunities.
ANALYSING TARGET MARKETS :
1. Examine the trends of the new market which can
influence demand of Basmati.
2. Calculating the overall consumption of rice or
similar product (other than Basmati ) and then
identifying the amount imported by the new
market.
3. Identifying what can affect the marketing and use
of Basmati rice in each potential market such as
distribution channel, cultural differences and
business practices.
4. Identifying any foreign barrier (tariff or non-tariff)
for import of Basmati into the target country as
well as India’s barrier affecting export to that
country.
5. Also looking for the foreign govt. as well as our
govt. incentives for promoting Basmati export to
the target country.
DRAWING CONCLUSION

After analyzing the data , we can


take decision on which markets or
countries there is huge potential
and opportunities for growth of
Basmati export.
THANK
YOU