export promotion bureau uttar pradesh
TRANSCRIPT
Combined Issue Oct-Nov.2015
e-magazine
Featuring
EXPORT MARKETING
&
UTTAR PRADESH EXPORT PROMOTION COUNCIL
EXPORT PROMOTION BUREAU EXPORT PROMOTION BUREAU EXPORT PROMOTION BUREAU EXPORT PROMOTION BUREAU
UTTAR PRADESHUTTAR PRADESHUTTAR PRADESHUTTAR PRADESH
We welcome your suggestions/feedback. Do write to [email protected]
EDITORAL BOARD
Patron:
Dr. Rajneesh Dubey , IAS
Export Commissioner/ Principal Secretary,
MSME & Export Deptt. Govt. of U.P.
Editor: Arvind Kumar Singh, IAS
Addl. Export Commissioner/ Special Secretary,
MSME & Export Deptt. Govt. of U.P.
Executive Editor: R.K.Singh,
Joint Export Commissioner
Associate Editor: Umesh Chandra- Dy. Commissioner,
Rajesh Kumar- Asstt.. Commissioner
Compiler: Veena Sharma-
Addl. Statistical Officer
Contents Pg
Editorial
Export Marketing 1 - 2
Export Marketing Strategies 3 - 6
Challenges to Export Marketing 7 - 7
Bureau News 8 - 8
Media Buzz 9 - 9
GOs/Circulars/Notifications 10 – 11
Indian Handicrafts and Gifts Fair (IHGF) Autumn 2015 12 - 13
Published by:
Export Promotion Bureau U.P. PICUP Building , A-Block, Ground Floor. Vibhuti Khand,
Gomti Nagar, Lucknow -226010,
Telefax: 0522-2721194, 4012211
Website: www.epbupindia.com
Email: [email protected]
From the Desk of Editor………………………
Dear Readers,
In a constantly declining trend of exports in the current FY, exports during
September, 2015 valued at US$ 21844.98 million (Rs. 144652.67 crore) stood 24.33
per cent lower in Dollar terms (17.67 per cent lower in Rupee terms) than the level of
US$ 28867.71 million (Rs.175703.03crore) during September, 2014, owing to
decreased global demands. This trend has concerned the policy makers at each level
and measures are being taken to cope with the situation by GoI.
In lines with this, Government of Uttar Pradesh have approved the formation of "Uttar
Pradesh Export Promotion Council" (UPEPC) to promote, support, protect, maintain
and increase the export of Uttar Pradesh thus giving a thrust to exports of major
exporting items of the State. The Council will address and cater to the problems/needs
of fifteen major export product groups/areas of the State which also includes
'Transport, tourism and hospitality' by preparing a strategy for growth for each of
these fifteen groups. I believe that strategies to be adopted by UPEPC will lead to a
better scenario for exporters and exports from the State as well.
Wishing you all a happy and prosperous Diwali !
(R.K.Singh)
Joint Export Commissioner
EXPORT MARKETING
According to B. S. Rathor “Export marketing includes the
management of marketing activities for products which
cross the national boundaries of a country”.
“Export marketing means marketing of goods and services beyond
the national boundaries” i.e. to other countries of the world as per
the procedures framed by the exporting country as well as by the
importing country.
Export marketing has wider economic significance as it offers various advantages to the national
economy. It has brought back several nations back from the dead.
FEATURES
Systematic Process – Export marketing is a systematic process of developing and distributing
goods and services in overseas markets. The export marketing manager needs to undertake
various marketing activities, such as marketing research, product design, branding, packaging,
pricing, promotion etc.
Large Scale Operations – Normally, export marketing is undertaken on a large scale. Emphasis
is placed on large orders in order to obtain economies in large sole production and distribution of
goods.
Dominance of Multinational Corporations – Export marketing is dominated by MNCs, from
USA, Europe and Japan. They are in a position to develop worldwide contacts through their
network and conduct business operations efficiently and economically.
Trade barriers – Export marketing is not free like internal marketing. There are various trade
barriers because of the protective policies of different countries. Tariff and non-tariff barriers are
used by countries for restricting import.
Documentation – Export marketing is subject to various documentation formalities. Exporters
require various documents to submit them to various authorities like bill of lading.
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Need / Importance of Export Marketing at the National Level:
1) Earning foreign exchange – Exports bring valuable foreign exchange to the exporting country,
which is mainly required to pay for import of capital goods, raw materials, spares and
components as well as importing advance technical knowledge.
2) International Relations – Almost all countries of the world want to prosper in a peaceful
environment. One way to maintain political and cultural ties and peace with other countries is
through international trade.
3) Balance of payment – Large – scale exports solve BOP problem and enable countries to have
favourable BOP position. The deficit in the BOT and BOP can be removed through large-scale
exports.
4) Reputation in the world – A country which is foremost in the field of exports, commands a lot
of respect, goodwill and reputation from other countries.
5) Employment Opportunities – Export trade calls for more production. More production opens
the doors for more employment opportunities, not only in export sector but also in allied sector
like banking, insurance etc.
Need / Importance of export marketing
1)Reputation – An organization which undertakes exports can become famous not only in the
export markets, but also in the home market. For example, firms like Phillips, , Sony, coca cola,
Pepsi, enjoy international reputation.
2) Optimum Production – A company can export its excess production after meeting domestic
demand. Thus, the production can be carried on up to the optimum product
3) Spreading of Risk – A firm engaged in domestic as well as export marketing can spread its
marketing risk in two parts. The loss is one part (i.e. in one area of marketing) can be
compensated by the profit earned in the other part / area.
4) Higher profits – Exports enable a business enterprise to earn higher prices for goods. If the
exporters offer quality products, they can charge higher prices than those charged in the home
market and thereby raise the profit margin.
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Export Marketing Strategies
Export marketing is a serious issue for most growing companies in today's interconnected global
economy. Whether to export or not, where to and how to, are the major questions for companies
willing to expand their international markets.
Export marketing is not just a process to find buyers/importers and approach them with the
expectation of export orders but a well planned strategic marketing process one should follow
and perform well to get success in International Market.
Action plan for Strategic marketing:
Strategic marketing action plan is a set of key functional areas of export marketing which should
be performed well and followed step by step to get succeed in Export marketing. Performing
following key tasks step by step will give you a rapid success in export marketing with
sustainable and profitable export sales growth.
Step-1 : Identify your target market
First step of export marketing is to identify target market and market needs where your
products/services has good market potential and demand. There are many countries in world and
you should pick right one(s) for your product and services. If you know your target market and
market needs, you could easily get export orders from those countries. You can identify target
market by conducting International Market research activity that will give you detailed
knowledge of opportunities in International market.
Step-2 : Developing Export Marketing strategies
After identifying target market, second step of export marketing is to develop a right Export
Marketing Strategies including market entry strategy, positioning strategy, product strategy,
pricing strategy, branding strategy, supply strategy and promotional strategy according to target
market needs. Based on the conclusions of the International market research, you will be able to
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develop the strategy to meet your export marketing objectives. Your Export Marketing strategies
should be able to develop a sense,
• To enter in right market where your products/services has good market potential and demand
• To position appropriately that give you and edge over competitor• To develop products/services
that satisfy needs of buyer,
• To offer prices that give both of you and your buyer a competitive advantage,
• To offer own brand or private label solution
• To supply as per ready stock or buyer’s requirements
• To promote your company that creates awareness among buyers/importers
If you have developed right export marketing strategies you could enter and develop
international market faster with sustainable export sales growth.
Step-3 : Preparing Marketing Communication tools
Once you have developed strategies based on target market needs, third step is to prepare
informative and appealing marketing communication tools like Company Profile, Sales letter,
Product Catalogue, Brochures, Website etc. that can supports in positioning and promoting your
company. Your all marketing communication tools should be well designed, informative,
professional and appealing that can deliver all necessary information of your company and
products/services to prospective buyers/importers and influence their decision to start business
communication with you.
Step-4 : Promotion
After preparing marketing communication tools, next step is Promotion which plays a major role
in export marketing success. Main objective of promotion is to create awareness among
buyers/importers of what you are and what you offer. Promotional mix should be cost effective
and should deliver right message, in right time and at right place. Promotion should lead
buyers/importers to get attention, capture interest and take action in initiating business
communication with you. Internet is the best cost effective and fastest promotion tool in present
export marketing practices. It has been seen that major buyers/importers using search engines,
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B2B portals and directories to find and contact genuine suppliers. So presence of your company
profile and products/services in major search engines like Google, yahoo and B2B portals like
Alibaba.com will give your company a global exposure and creates awareness among
buyers/importers effectively. Participating in Trade fairs, Exhibitions and catalogue shows is also
a good offline promotional strategy which can generate a direct and live contact with
buyers/importers.
Step-5 : Generating Export Inquiries
Success in export Marketing begins with generating genuine export inquiries from prospective
buyers/importers which requires expertise and focused work of promotion, sourcing genuine
buyers and approaching them professionally. One should study buyer's profile and/or buy leads
to know whether you can offer them what they requires. It has been seen that many suppliers
contact majority of those buyers/importers who have no interest in their product/services without
understanding their profile and needs. A Buyer/importer can send you inquiry only when he
needs your products/services either better than his existing supplier in terms of either Quality,
Price, Services and/or developing more suppliers and/or for other reasons. So contact them by
offering competitive advantage which can get them interested to send you inquiries which can be
converted in to export orders by communicating and negotiating professionally.
All above steps are inter connected and can only give results if each step performed or
performing well. Export marketing is a continuous process and all those key functions can be
reviewed and modified time to time as per changing global economic and market situation.
IMPORTANCE OF EXPORT MARKETING
1)Increased Sales and Profits. Selling goods and services to a market the company never had
before boost sales and increases revenues. Additional foreign sales over the long term, once
export development costs have been covered, increase overall profitability.
2)Enhance Domestic Competitiveness Most companies become competitive in the domestic
market before they venture in the international arena. Being competitive in the domestic market
helps companies to acquire some strategies that can help them in the international arena.
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3)Gain Global Market Shares. By going international companies will participate in the global
market and gain a piece of their share from the huge international marketplace.
4)Diversification. Selling to multiple markets allows companies to diversify their business and
spread their risk. Companies will not be tied to the changes of the business cycle of domestic
market or of one specific country.
5)Lower Per Unit Costs. Capturing an additional foreign market will usually expand production
to meet foreign demand. Increased production can often lower per unit costs and lead to greater
use of existing capacities.
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CHALLENGES TO EXPORT MARKETING
1 Technological differences- The developed countries are equipped with sophisticated
technologies less developed countries, on the other hand, lack technical knowledge and latest
equipments.
2 Reduction in export Incentives– Over the years, the Govt. of India has reduced export
incentives such as withdrawal of income tax benefits for majority of exporters. The reduction in
export incentives de-motivates exporters
3 Several competitions in global marketing– Export marketing is highly competitive. Indian
exporters face three-faced competition while exporting.
4 Problem of product standards– Developed countries insist on high product standards from
developing countries like India. The products from developing countries are subject to product
tests in the importing countries.
5 Problem in preparing Documents– Export involves a large number of documents. The
exporter will have to arrange export documents required in his country and also all the
documents as mentioned in the documentary letter of credit. In India, there are as many as 25
documents.
CONCLUSION
Marketing is defined as using all of the resources of the organization to satisfy customer needs
for a profit. The difference between export marketing and domestic marketing is simply that it
takes place across national borders. This means that the exporters have to face with barriers to
trade. They may need to account for getting the product half-way across the globe to distant
markets and pay the import duties imposed on these products by the importing country. Export
marketing also involves preparing an offering that will entice the foreign buyer and customer.
This offering comprises a product that is offered at a certain price and that is made available or
distributed to the foreign customer. At the same time, the offering is communicated or promoted
to the buyer using certain communication or promotion channels. These elements the product,
price, distribution (place) and promotion are called the marketing mix.
Source: http://www.ikonmarket.com
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Bureau News
UP Govt. announces export promotion
council for the State
In order to promote export from the State, the UP cabinet granted its approval on setting
up 'UP Export Promotion Council' to encourage exports by way of creating a favorable
atmosphere, identifying new markets, quality control and packaging as per the international
standards, apprising the industry with the new techniques among others for helping in export
promotion. The referred Council will focus on preparing strategies for export promotion in
following 15 product/services group:
1. Agriculture and Meat 2. IT & Electronics
3. Handicrafts 4. Handlooms
5. Carpets and Durries 6. Perfumery, Fragrances & Essential Oils
7. Pharmaceuticals & Menthol 8. Marble, Stone, Ceramics & Pottery
9. Leather & Leatger Products 10. Readymade Garments
11. Sports Goods 12. Engineering Goods
13. Horticulture & Food processing 14. Tourism, Transport & Hospitality
15. Others
For this, Panel Committees shall be constituted for each product/services group
comprising of a convener and four other members from respective trade fields.
The Council shall work for up-gradation of ICD/CFS as per transaction volume and
better connectivity to rail and road network, setting up of warehouses/ showrooms in overseas
markets, establishing design centre, design lab, design bank, tool rooms, formation of SHG for
new exporters, innovation for export of new value added products and for establishing of Raw
Material Banks (RMB).
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Media Buzz
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Notifications/Circulars/GOs
(To be Published in the Gazette of India Extraordinary Part-II, Section - 3, Sub-Section ii)
Government of India Ministry of Commerce & Industry
Department of Commerce Udyog Bhawan
Notification No. 23 /2015-2020
New Delhi, Dated: 7 October, 2015
Subject:- Export Policy of rice. S.O. (E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992
(No. 22 of 1992), as amended, read with Para 1.02 of the Foreign Trade Policy, 2015-20, the Central Government
hereby makes the following amendment, with immediate effect, in Chapter 10 of Schedule 2 of ITC (HS)
Classification of Export & Import Items relating to export of rice:
2. The existing entries against Sl. No. 55, 56 & 58 of Chapter 10 of Schedule 2 of ITC(HS) Classification of Export
& Import Items are replaced as under:
Chapter 10
Cereals
Note 1 Export of wild variety of wheat and paddy seed is restricted. See chapter 12 for details.
Sl. No Tariff Item
HS Code Unit Item Description Export
Policy Nature of Restriction
55 1006 20 00 1006 30 1006 30 10 1006 30 90 1006 40 00
Kg. Non Basmati Rice
Free 1. Export to be made by private parties from privately held stocks. State Trading Enterprises (STEs) including M/s. NCCF & NAFED are also permitted to export privately held stocks of non-Basmati rice. 2. Export shall be through Custom EDI ports. Export is also permitted through the non-EDI Land Custom Stations (LCS) on Indo-Bangladesh and Indo-Nepal border subject to registration of quantity with DGFT. RAs Kolkata & Patna and such other RAs as notified by DGFT from time to time will be the designated RAs for the purpose of such registration of quantity.
56 1006 10 10 Kg Rice of seed quality Restricted Export permitted under license subject to following conditions: (i) submission of following documents to Customs at the time of export: (a) A license to carry on the business of a dealer in seeds
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issued under Section 3 of the Seed Control Order (1983) from the State Government; and (b) Declaration that the export consignment of seeds has been chemically treated and is not fit for human consumption; and (ii) Export packets will be labeled that seeds are treated with chemical insecticides and cannot be used for food or feed purposes.
58 1006 10 90 Kg Other [rice in husk (paddy or rough) other than seed quality]
Restricted Export permitted under license.
3. Effect of this notification: Export of rice of seed quality has been moved from ‘Free’ to ’Restricted’ category.
(Anup Wadhawan) Director General of Foreign Trade
E-mail: dgft[at]nic[dot]in
(Issued from File No. 01/91/180/775/AM10/ Export Cell)
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Indian Handicrafts and Gifts Fair (IHGF) Autumn 2015
Indian Handicrafts and Gifts Fair popularly known as IHGF, Autumn 2015 was organized by Export
Promotion Council for Handicrafts (EPCH) New Delhi from 14th to 18th October 2015 at India Expo
Centre & Mart, Greater Noida Expressway, Greater Noida, Delhi (NCR).
Product categories on display included:
1. HOUSEWARE,
2. BATHROON ACCESSORIES
3. GARDEN DECORATIVES
4. LAMPS, LIGHTING & ACCESSORIES
5. FURNITURE, FURNITURE HARDWARE & ACCESSORIES
6. HOME FURNISHINGS & MADEUPS
7. CARPETS, RUGS & FLOORINGS
8. FASHION JEWELLERY & ACCESSORIES
10. CHRISTMAS AND FESTIVE DECOR
11. CANDLES, INCENSE STICKS and POTPOURRI
12. DECORATIVE, GIFTS (INCLUDING CORPORATE GIFTS)
13. CANE, BAMBOO, NATURAL FIBER & ECO FRIENDLY PRODUCTS
14. BAGS, LUGGAGE & LEATHER GOODS
Manufacturers & exporters of handcrafted products drawn from all major export oriented districts of Uttar
Pradesh exhibited their merchandise at the show. The visitors were overseas buyers.
Export Commissioner , Uttar Pradesh Dr. Rajneesh Dube also visited the Fair.
Buyers at the stall exhibiting Metal art ware of Moradabad, U.P.
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Export Commissioner , Uttar Pradesh Dr. Rajneesh Dube visiting Agra marble work at the Fair
Aerial view of stalls at the Fair
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