international marketing of wrist watch at nigeria

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Page 1: International Marketing of Wrist Watch at Nigeria

qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqw

International Marketing

Oron Watch Corp. – entering Nigeria

Submitted by : Afreen . J Khan (19) Shabahan MeethalPratik ChoudharyTausif Khan

Submitted To:Prof. Quresh Moochhala

MMS (sem - III)BES’s IMSR, MazgaonDate: 12/10/2010

Visit us at: www.oronwatches.com

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Acknowledgement:

We are solemnly thankful of Prof. Quresh Moochhala for

being our mentor and guide throughout the journey of learning

“International Marketing”. We thank Prof. Shikhare for letting us

know the horizons of knowledge in the college. We would also thank

librarians Mr. Noor Mohammed Khan and Mrs. Mugadha Odak. Last

but not the least, we are thankful to all friends who have been with

us all the time, being an inspiration. And first and last thank to my

Lord, the most beneficent and merciful, who made us all capable to

learn, understand and pen !

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Contents:

Cultural Analysis

I. Introduction

II. Brief history of

III. Geographical settings

IV. Social institutions

V. Religion and aesthetics

VI. Living conditions

VII. Language

VIII. Executive summary

Economic analysis

I. Introduction

II. Population

III. Economic statistics and activity

IV. Development in science and technology

V. Channels of distribution (macro analysis)

Marketing plan

I. Marketing plan

II. Pro forma of financial statements and budgets

III. Resource requirements

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IV. Executive summary

V. Sources of information

I . Introduction : Oron Watch Corporation is an Indian watchmaker. We

specialize in sports watches. Globalization has opened the doors to

international market, so this is our first optimistic and ambitious step

towards internationalization. We believe in best quality and positive efforts.

We are good enough but want to be one of the bests among watchmakers.

Vision : To provide the timepiece at right time to every ambitious

sportsperson.

Mission : To be the best in quality, reliability and technology so that we can

be the first choice of every sports person.

Objectives: we have following objectives:

To come up with the best quality sports watch.

To inculcate the culture of continuous improvement.

To build a strong brand in the Global market.

To make a strong relationship with the customers.

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To generate customer delight and loyalty.

Oron Watches: Oron is one of the best quality sports watches with

following features:

High-Sensitivity, Watch-Like GPS Receiver That Provides

Exceptional Signal Reception

1 Piece Training Assistant That Provides Athletes With Precise

Speed, Distance & Pace Data

Includes Training Center Software, Which Allows Users To

Download Workout Data For A Detailed Analysis

Used For Multiple Sports Such As Cycling, Cross- Country

Skiing & Windsurfing.

We are willing to trade with Nigeria, one of the growing economies. It has

found a large potential for the best sports people in it. And we are targeting

the same potential target market.

(http://www.state.gov/r/pa/ei/bgn/2836.htm)

III. Geographical Setting:

A. Location

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Source: ( www.mapsofworld.com )

Nigeria is located in Western Africa(as shown in the map above) , and

borders the Gulf of Guinea, between Benin on the west and Cameroon on the

east. It has a compact area of 923,768 square kilometers (356,376 square

miles). The country's land mass extends from the Gulf of Guinea in the south

to the Sahel (the shore of the Sahara Desert) in the north. Comparatively,

Nigeria is slightly more than twice the size of California, or the size of

California, Nevada, and Arizona combined. Abuja, the capital city of the

Federal Republic of Nigeria, replaced the former capital city, Lagos, in

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December 1991, because of its more central location, among other reasons.

Lagos remains Nigeria's commercial capital. Other major Nigerian cities

include Ibadan, Kaduna, Kano, Maid-uquri, Jos, Port Harcourt, Enugu,

Calabar, and Aba.

B. Climate :

As in most of West Africa, Nigeria's climate is characterized by strong

latitudinal zones, becoming progressively drier as one moves north from the

coast. Temperatures throughout Nigeria are generally high; diurnal

variations are more pronounced than seasonal ones. Highest temperatures

occur during the dry season; rains moderate afternoon highs during the wet

season. Average highs and lows for Lagos are 31° C and 23° C in January

and 28° C and 23° C in June. Although average temperatures vary little from

coastal to inland areas, inland areas, especially in the northeast, have

greater extremes. There, temperatures reach as high as 44° C before the

onset of the rains or drop as low as 6° C during an intrusion of cool air from

the north from December to February.

C. Topography:

The topography of Nigeria consists of plains in the north and south

interrupted by plateaus and hills in the centre of the country. The Sokoto

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Plains lie in the northwestern corner of the country, while the Borno Plains in

the northeastern corner extend as far as the Lake Chad basin. The Lake

Chad basin and the coastal areas, including the Niger River delta and the

western parts of the Sokoto region in the far northwest, are underlain by

soft, geologically young sedimentary rocks.Gently undulating plains, which

become waterlogged during the rainy season, are found in these areas. The

characteristic landforms of the plateaus are high plains with broad, shallow

valleys dotted with numerous hills or isolated mountains, called inselbergs;

the underlying rocks are crystalline, although sandstones appear in river

areas. The Jos Plateau rises almost in the centre of the country; it consists of

extensive lava surfaces dotted with numerous extinct volcanoes. Other

eroded surfaces, such as the Udi-Nsukka escarpment (see Udi-Nsukka

Plateau), rise abruptly above the plains at elevations of at least 1,000 feet

(300 metres). The most mountainous area is along the southeastern border

with Cameroon, where the Cameroon Highlands rise to the highest points in

the country, Chappal Waddi (7,936 feet [2,419 metres]) in the Gotel

Mountains and Mount Dimlang (6,699 feet [2,042 metres]) in the Shebshi

Mountains.

IV. Social Institution:

A. Family: A family, which is usually made up of people who are related

by blood, marriage, or adoption, is very important to most Nigerians.

There are two major family types; the nuclear family, which is made up 8

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of one man, his wife, and their unmarried children, and the extended

family, which is usually made up of a series of nuclear families.

Culturally, most Nigerian cultural groups practice patrilineal descent,

have patriarchal authority, have patrilocal rule of residence, and are

generally patricentric in outlook. The children are socialized with this

arrangement in mind, and female children are consciously socialized to

serve and be subordinate to males.

B . education:

Nigerian law requires compulsory education for all students between the

ages of 6 and 15. Students in primary and secondary school attend three

equally divided sessions from January through December, with about a

month vacation between sessions.

In 1982, Nigeria switched to the American system of six primary, three junior

secondary, and three senior secondary school grades, but the rigid

examination system remained. To qualify for entry into Junior Secondary

School (JSS), Senior Secondary School (SSS), and higher education,

nationwide examinations are held each year. Because exam scores

determine a student's future educational choices, schools tend to stress

memorization of facts, rather than creative problem solving. There are not

enough senior secondary schools in Nigeria, so most students who finish JSS

go into the workforce.

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Subjects taught in primary education include English, mathematics, bible

knowledge, science subjects, and 3 native languages – Hausa, Yoruba, and

Ibo. Students are required to take the Common Entrance Examination after 6

years to be admitted into the Federal and State Government schools. State-

owned secondary schools get funds from each state government while

private secondary tend to be more expensive with annual average tuition

fees of $1000-$2000.

Nigeria has major control of university education. English is the official

medium of instruction in the higher education. The academic year starts in

October and ends in September. There are 13 Federal and 14 State owned

polytechnic colleges in the country. Nigerian universities are usually grouped

on the following categories:

C. Political System: Nigeria is constitutionally a federalist state, with

certain powers held by the states and others reserved to the federal

government. According to the Constitution, the president is to be elected

every four years by popular vote, and the judiciary is to consist of state and

federal courts.

D. Legal system:

The legal system is based on English common law, Islamic law, and

customary law.

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The Nigerian legal system has had a lot of influence from English law on it's

growth. Right now, English law forms a substantial part of Nigerian law.

However, the Nigerian legal system is somewhat complex, and has several

sub-systems.

At the Federal level, there is a general federal legal system that is

applicable throughout the country.

At the lower levels, each state (including Abuja) has it's own legal

system.

Also, local customs are applicable laws in some states.

The sources of Nigerian law are:

1. Nigerian legislation

2. English law

3. Customary law

4. Judicial precedents: the principle of law on which a judicial decision is

based.

LEGISLATION

Nigerian legislation consists of:

Statutes : laws enacted by the Legislature (which is a part of the

government). This further consists of:

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Ordinances: laws passed by the Nigerian Central Legislature before October

1, 1954.

CUSTOMARY LAW

Customary law consists of customs that people in a certain community hold

as being binding to them, and recognized as law by them. Customary laws

may be relevant for certain ethnic groups, or certain religions, and

sometimes even for certain states.

(http://www.motherlandnigeria.com/legal.html)

e. Social Organizations:

The nightclub culture is quite prevalent in Nigeria and the young Nigerians

often visit discotheques and beach parties. The urban crowd watches

Nigerian movies (Nollywood movies) and engages in different art forms such

as jazz dancing and western singing that provide them great entertainment

and recreation. The consumption of liquor is also said to be one of the

primary recreational activities amongst the urbanized Nigerians. NEFA film

festival is one of the most popular film festivals in Nigeria, which celebrates

the art of cinema by exhibiting great movies from across the world. There

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are different organizations and entertainment set-ups in Nigeria such

“Ariztos”, which takes care in providing full-time entertainment to the people

of Nigeria. The rural section of the society engages in local activities such as

fishing, hunting, singing and dancing. These are their main sources of

entertainment around which their daily lives revolve.

(http://www.mapsofworld.com/nigeria/tourism/entertainment.html)

V . Religion and Aesthetics:

Nigeria religion comprises a number of religions, mainly Christianity, Islam and

the traditional religion of Nigeria. Islam mainly dominated the northern part of

Nigeria, while Christianity was prevalent in the southern part of Nigeria, among

the Yoruba and the Igbo ethnic groups. Yoruba people inhabiting in Nigeria are

mainly practitioners of Protestantism, while Igbo and the groups residing in the

nearby areas are followers of Catholicism. Nigeria religion represents Nigerian

culture.

Even though Islam and Christianity are the main Nigeria religions the people are

also tolerant towards all the other minor religions.

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(http://www.mapsofworld.com/nigeria/culture/religion.html)

Aesthetics:

Nigerian art is an important part of Nigeria culture. Art in Nigeria has been

important for more than 2000 years. As multi-ethnicity exists in Nigeria,

art of Nigeria is influenced by many tribes and ethnic groups.

Nigerian art comprises of ivory carving, grass weaving, wood carving,

leather and calabash. Pottery, painting, clothe weaving and glass and

metal works are other important forms of Nigerian art

Music is another important Art of Nigeria. Popular music includes highlife,

afrosoul, fuji, afrobeat, juju, apala, gospel, sakara, reggae, jazz, hip hop

and a lot more. The most musical important instruments are percussion

and string instruments. Art in Nigeria includes the Nigerian literature.

Literature typically followed an oral tradition in Nigeria, like it did in other

parts of Africa. However presently Nigerian literature has gained wide

popularity not only within the country, but internationally.

(http://www.mapsofworld.com/nigeria/culture/art.html)

(http://www.mapsofworld.com/nigeria/culture/music.html)

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VI. Living conditions:

A. Diet and Nutrition:

The name Nigeria is taken from the Niger River, which plays an important part in

Nigerian lives.

People of the northern region (mostly Muslim, whose beliefs prohibit eating pork)

have diets based on beans, sorghum (a type of grain), and brown rice. The Hausa

people of this region also like to eat meat in the form of tsere or suya (kebabs,

which are chunks of roasted, skewered meat). Muslims love to drink tea, making

coffeehouses popular places to socialize.

The people from the eastern part of Nigeria, mostly Igbo/Ibo, eat gari (cassava

powder) dumplings, pumpkins, and yams. Yams are usually eaten in place of

potatoes and are an important part of the Nigerian diet. However, African yams

are different than Western yams. They are pale, barely sweet, and are not

commonly found in United States supermarkets.

(http://www.foodbycountry.com/Kazakhstan-to-South-Africa/Nigeria.html)

B. Housing:

The rate of urbanization in Nigeria has witnessed tremendous increase in the last

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two

decades. Census in the early Fifties showed that there were about 56 cities in the

country

and about 10.6% of the total population lived in these cities. Given the expected

increases in Urban population, the magnitude of housing problem in

the country is enormous. According to the National Rolling Plan (NRP) the

national

housing requirement is between 500,000 and 600,000 units considering the

prevailing

occupancy ratio of between Three and Four persons per room.

Relating annual requirements for housing with the Gross Domestic Product of

N82.53 billion in 1988 and 85.82 billion estimates for 1989, and over 88 billion in

1991 as

well as per capital income of N3,000.00, financing becomes a major factor of the

housing problem especially long term funding.

(http://www.fig.net/pub/proceedings/nairobi/ajanlekoko-CMWS1-1.pdf)

c. Clothing:

Nigerian Clothing is completely based on the Nigeria Culture. As Nigeria is a

multi-ethnic, there are lot of ethnic groups and each of them have their

traditional dress code. Clothing in Nigeria have a great variety. In the north,

people prefer their outfit based on their work. In the south, people are 16

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pretty much fond of dressing up.

Important materials for Clothing of Nigeria are lace, jacquard, adire, ankara.

Nigerians are also fond of tie and die materials. Nigerian Clothing for

women includes buba, kaba, iro, gele and iborun or ipele.

Nigerian Clothes for men comprises of buba, fila, sokoto, abeti-aja and

agbada

(http://www.mapsofworld.com/nigeria/culture/clothing.html)

D. Recreation , sports and other leisure activities:

Nigerian Entertainment comprises of Nigerian religious festivals, film

festivals, dances and music. There are other forms of entertainment and

recreation in Nigeria such as participating in games and sports activities,

watching good Nigerian movies and also taking substantial interest in the

country's rich tradition literature and art.

(http://www.mapsofworld.com/nigeria/tourism/entertainment.html)

Nigerian sports, though always exercised, was noted first in the 1950s. Nigeria

had it's first appearance in the Helsinki Olympic Games in 1952, and it's first

victory in 1954, when Emmanuel Ifeanjuna won a gold medal in the high jump at 17

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the Commonwealth games in Cardiff.

In 1962, the Nationals Sports Council was set up, and in 1971, the National Sports

Commission was established.

(http://www.motherlandnigeria.com/sports.html)

E. Social security : Social security is a human right, as well as an economic

and political necessity. In Nigeria piecemeal social security programmes

have been in place since 1942 starting with the workmen’s compensation.

Others are benefits for temporary and permanent disability,

unemployment, maternity and sickness.  All these have been going on

without a unified policy with no clear funding. Following a resolution of 11th

International Labour Organisation African Regional Meeting (Addis Ababa,

24-27 April 2007) a tripartite African ILO members committed themselves

to develop national action plans to build  basic social security to all and

Nigeria is an active player in the International Labour Organisation's (ILO)

affairs and playing host to the labour watchdog since 1960.

(http://www.nigeriavillagesquare.com/articles/anyanate-ephraim/social-security-

policy-for-nigeria-matters-arising.html)

F. Health care:

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Traditionally, health was taken care of by 'medicine-men'. Now Nigeria has

National Health Policy.The goal of the National Health Policy is to bring about a

comprehensive health care system, based on primary health care that is

promotive

protective

preventive

restorative and

rehabilitative

There is a three-tier system of health care, namely: Primary Health Care,

Secondary Health Care, and Tertiary Health Care.

Primary Health Care

Secondary Health Care

Tertiary Health Care

(http://www.motherlaigeria.com/health.htmlndn)

VII. Language:

There are more than 500 language in Nigeria, which are spoken by

different tribes and groups. Though English is the official language of

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Nigeria, yet more than 50% of the people of Nigeria can not speak in it. It is

commonly used for conducting official affairs.

The most popular local Nigerian languages are Yoruba, Edo, Igbo, Hausa-

Fulani, Tiv, Kanuri, Ibibio. Among these the North Nigerian languages are

Kanuri, Tiv and Hausa while the languages spoken in Southern part of

Nigeria are Igbo, Edo, Yoruba and Ibibio.

Executive Summary:

Full name: The Federal Republic of Nigeria

Population: 154.7 million (UN, 2009)

Capital: Abuja

Largest city: Lagos

Area: 923,768 sq km (356,669 sq miles)

Major languages: English (official), Yoruba, Ibo, Hausa

Major religions: Islam, Christianity, indigenous beliefs

Life expectancy: 47 years (men), 48 years (women) (UN)

Monetary unit: 1 Nigerian naira = 100 kobo

Main exports: Petroleum, petroleum products, cocoa, rubber

GNI per capita: US $1,160 (World Bank, 2008)

Internet domain: .ng

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International dialling code: +234

President: Goodluck Jonathan

Goodluck Jonathan was sworn in as president when his predecessor, Umaru

Yar'Adua, died after a long period of illness in May 2010.

Mr Jonathan, elected along with Mr Yar'Adua as his vice-president in 2007, had

already been appointed temporary acting president by parliament in February

2010, after lengthy political wrangling.

Nigeria's media scene is one of the most vibrant in Africa. State radio and TV

have near-national coverage and operate at federal and regional levels. All 36

states run their own radios, and most of them operate TV stations.

Press:

The Guardian - influential, privately-owned national daily

The Champion - Lagos-based daily

The Daily Times - Lagos-based government daily

The Punch - privately-owned daily

New Nigerian - government daily, separate editions in Lagos and Kaduna

The Daily Independent - Lagos State-based daily

Daily Trust - Abuja-based daily

Leadership - Abuja-based daily

Vanguard - Lagos-based, widely-read daily

This Day - widely-read Lagos-based daily

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The Daily Sun - Lagos-based

Economic Analysis:

1.Introduction:

The Nigerian economy is one of the most developed economies in

Africa. According to the UN classification, Nigeria is a middle-income

nation with developed financial, communication and transport sectors. It

has the second largest stock exchange in the continent.

The petroleum industry is central to the Nigerian economic profile. It is the

12th largest producer of petroleum products in the world. The industry

accounts for almost 80% of the GDP share and above 90% of the total

exports. Outside the petroleum sector, the Nigerian economy is highly

amorphous and lacks basic infrastructure. Several failed efforts have been

made after 1990 to develop other industrial sectors.   (Source: CIA World

Factbook)

The country ranks 151 out of 177 on the UN Development Index. During

2003-07, the government initiated strategic economic reforms to eradicate

poverty and bring economic

(equalityhttp://www.economywatch.com/world_economy/nigeria/)

Population:

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a. Total:

The population of Nigeria in 2003 was estimated by the United Nations at

124,009,000, which placed it as number 10 in population among the 193

nations of the world. It is the most populated country in Africa. In 2003

approximately 3% of the population was over 65 years of age, with another

44% of the population under 15 years of age. There were 101 males for every

100 females in the country in 2003. According to the UN, the annual

population growth rate for 2000–2005 is 2.53%, with the projected population

for the year 2015 at 161,726,000. The population density in 2002 was 141 per

sq km (364 per sq mi). Regional differences are significant; population is

densest in the south and sparsest in the north.

b.Distribution of population : Nigeria is a plural or multinational state,

with 250 ethnic or nationality groups. The most populous and politically

influential of the nationality groups include the Hausa-Fulani (29 percent)

in the north, the Yoruba (21 percent) in the southwest, the Igbo (18

percent) in the southeast, and the Ijaw (10 percent) in the Niger Delta. In

the year 2000, nearly 25 percent of the Nigerian population were urban

dwellers. At least 24 cities have populations of more than 100,000. Lagos,

the largest city, had a population of 9.8 million in 1995, 12.5 million in

2000, and is projected to have a population of 25 million in 2015.

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c. Economic statistics and activities:

GDP (purchasing power parity):

$353.2 billion (2009 est.)

$340.3 billion (2008 est.)

$323.1 billion (2007 est.) 

note: data are in 2009 US dollars 

[see also: GDP (purchasing power parity) country ranks ]

GDP (official exchange rate):

$165.4 billion (2009 est.) 

[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:

3.8% (2009 est.)

5.3% (2008 est.)

6.4% (2007 est.) 

[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):

$2,400 (2009 est.)

$2,300 (2008 est.

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a. Distribution of wealth: The Office of Statistics indicated that GDP grew

6.0 percent annually (adjusted for inflation) between FY (fiscal year) 1959

and FY 1967. GDP shrank at an inflation-adjusted annual rate of 1.1 percent

between FY 1967 (which ended two months before the secession of the

Eastern Region) and FY 1970 (which ended three months after the war).

(http://countrystudies.us/nigeria/55.htm)

b. Minerals and resources:

Kogi state is rich in mineral resources .Most of these minerals are avaliable

in commercial quantities and these include coal at KotonKarfe, Okaba and

Ogboyaga; limestone and marble at Jakura, Ososo, Ajackuta, Osara,

Ekinrin Adde and ltobe; kaolin at Agbaja and iron ore at Agbaja plateau and

Itakpe hills.

Coal was mined here during the Nigerian civil war; limestone and marble

are exploited at Jakura and iron ore at Itakpe hills. Other minerals include

feldspar at Okene and Osara; clay, cassiterite, columbite and tantalite at

Egbe; gold at Isanlu, gems, quartz, mica and crude oil at Idah

(http://www.onlinenigeria.com/links/kebbiadv.asp?blurb=309)

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c. Surface transportation: There are a number of different ways to travel by

land.

One way is by road, and the methods by which road can be traveled include

cars (commonly called motto), buses, taxi cabs, bicycles, motorcycles, etc.

Also, I believe animals are used in certain parts of the country, like horses,

etc.

The other main way is by railroad. There are over 3500 km of railway. The

main routes run from Lagos to Kano, Porta Harcourt to Maiduguri, Zaria to

Gusau and Kaura Namoda.

The most popular international airport is the Murtala-Muhammed airport in

Lagos (Airport Code: LOS). There are other international airports in Kano

(Airport Code: KAN) and Abuja (Airport Code: ABV).

(http://www.motherlandnigeria.com/transportation.html)

d. Communication system: Computing and Telecommunications is Nigeria’s

fastest growing sector. With the advent of Global System of Mobile

Communication (GSM), the springing up of social, educational and

commercial activities driven by ICT and the increasing awareness of

Information and Communications Technologies (ICT), ICT is on the rise in

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e.Working conditions:

Nigeria had an estimated labor force of 42.844 million in 1999. Women

comprised 36 percent of that force, which included talented and well-

educated entrepreneurs. Conditions for workers in Nigeria are far from ideal.

Civil servants and employees of private companies (foreign) have relatively

good offices and facilities, health care, and wages, but that is not the case

for most of the others. Conditions in the pre-collegiate schools and the

universities have deteriorated markedly because of repression,

underfunding, and irregular payment of salaries.

(http://www.nationsencyclopedia.com/economies/Africa/Nigeria-WORKING-

CONDITIONS.html)

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e.Principal industries:

Since oil was discovered in the wilderness of Nigeria, it became one of

the biggest oil exporters in the World. The Agriculture industry is also

highly prominent in Nigeria as most of its people are traditionally

farmers. The cities of Lagos, kano and Onitsha are the homes of

several industries like the Cotton, Textile, Garment manufacturing as

well as the Leather industry which thrive in these cities Foreign

investments: In 1992, the Nigerian Free Zone Act was passed

establishing the Nigerian Export Processing Zone Authority (NEPZA.

a.International trade statistics:

Exports

Oil and natural gas are the most important export products for Nigerian

trade. The country exports approximately 2.327 million barrels per day,

according to the 2007 figures. In terms of total oil exports, Nigeria ranks 8 th

in the world. According to the 2009 figures, the country’s total export

volumes stand at US$45.43 billion. Major items of export are oil products,

cocoa and timber. The UK and the US are the largest trade partners for

Nigerian exports.

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Imports

The United States is the largest foreign investor in Nigeria. The stock of U.S.

foreign direct investment (FDI) in Nigeria in 2006 was $339 million, down

from $2 billion in 2004. U.S. FDI in Nigeria is concentrated largely in the

petroleum/mining and wholesale trade sectors. Exxon-Mobil and Chevron are

the two largest U.S. corporate players in offshore oil and gas production.

A large portion of the imports arrive from the EU, particularly the

Netherlands, the UK, France and Germany. China, the US and South Korea

are also major import trade partners.

b. Exchange rates

nairas (NGN) per US dollar - 150.48 (2009), 117.8 (2008), 127.46 (2007),

127.38 (2006), 132.59 (2005)

Trade restrictions: The federal government levies customs duties on most

imports, but these duties were substantially reduced in 1986 and in 1995.

The import duty varies from 5% to 60%, averaging 12%. All imports are also

subject to a 7% port surcharge and a 5% value-added tax (VAT). The

paperwork necessary for exporting and importing is lengthy. The taxation

system has been widely avoided and valuations are arbitrary.

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c. Extent of economic activities not included in cash income

activities

d. Labor force:

Labor force:

47.33 million (2009 est.) 

[see also: Labor force country ranks ]

Labor force - by occupation:

agriculture: 70% 

[see also: Labor force - by occupation - agriculture country ranks ] 

industry: 10% 

[see also: Labor force - by occupation - industry country ranks ] 

services: 20% (1999 est.) 

[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:

4.9% (2007 est.).

a. Inflation rates:

Inflation rate (consumer prices):

11.5% (2009 est.)

11.6% (2008 est.)

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I. Development in science and technology:

It is on record that the electronic digital computer made its first

appearance in Nigeria in 1963, in connection with the analysis of the

1962/63 national census data.

( http://www.unu.edu/unupress/unupbooks/uu19ie/uu19ie0e.htm#2.)

growth of information technology

Nigeria has launched three satellites into space. The first satellite, the

Nigeriasat-1, was launched from Russia on 27 September 2003.

Nigeriasat-1 is part of the world-wide Disaster Monitoring Constellation

System.

Nigeriasat-2, Nigeria's second satellite, is a high-resolution earth

satellite built by a United Kingdom-based satellite technology

company, Surrey Space Technology Limited.

I. Channels of distribution:

II.

a. Retailers : The formal retail sector of the Nigerian economy is small and

under-developed, but growing fast.

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Between 2001 and 2004 the retail sector of the Nigerian economy grew

by 10% per annum. By 2006 the combined contribution to gross domestic

product of the retail, wholesale and hospitality industries was 15%.Most

Nigerians shop at markets or purchase their goods from traders and

street vendors but city and state governments are seeing the tax benefits

of more formalized trading. Lagos is at the forefront in building shopping

malls. The Lagos City Mall is a well-established complex while the Silver

bird Galleria, completed in 2004, offers the city’s only multi-cinema

complex.

Some of the shopping malls in Nigeria:

Palms Shopping Mall , Lagos

SilverBird Galleria

Lafayette Mall

Lagos City Mall

William Dokpesi Store

My Blue Store Nigeria , Online store www.mybluestoreng.com

Popping Tags Online Boutique , Online store www.poppintags.com

Ceddi Plaza

Shashilga Seven

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MyBlueStore

Nigeria www.mybluestoreng.biz, www.mybluestoreng.com

Popping Tags Online Boutique , Online store www.poppintags.com

Tinapa City Resort Emporiums

Marketing Plan:

A.Marketing objectives:

1. Target markets : we are the manufacturers of sports watches and Nigeria is

going to be a tough target for us. We want to target a market which is not been

targeted before. World has now come to know the athletic and sport potential of

Nigeria. It has grown and improved in past few years tremendously. Taking this

point under the consideration, we, Oron Watches, are going to target the

potential youth. Every person interested in sports and wants to play in times, is

our target market.

Geographically we would be targeting the main cities like Abuja (capital of the

country), Lagos & Enugu. These are the most populous cities and of course

crowd of athletes come from these cities only.

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Beside these cities we will be targeting students of universities and colleges in

Nigeria.

2. Expected sales year : 10,000 *1200 = 1,20,00,000 INR

3. Profit expectation year: 360 * 10,000 = 36,00,000 INR

B. Market penetration & coverage : the market penetration or entry

strategy would be “strategic alliance”. It will provide us enormous scope to enter

and expand into the Nigerian market. Our ultimate goal is to leverage critical

capabilities, increase the flow of innovation and increase flexibility to respond

the demand and technological revolution around the country.

B.Product adaptation or modifications

1. Core component : we are watch manufacturers. Our core component would

be high quality steel. We are making water resistant, heat resistant sport

watches. We would be installing Gps tracking system in the metallic dial with

plastic acrylic mirror sheets.The bimetallic temperature compensated balance

wheel would be made obsolete by the discovery of low temperature coefficient

alloys invar and elinvar. A balance wheel of invar with a spring of elinvar was

almost unaffected by temperature changes, so it replaced the complicated

temperature compensated balance.

2. Packaging component : we are into contract with Nigerian based

packaging company who will take care of entire packaging procedure.

3. Thrifty square boxes would be used while transporting

C. Promotion mix 35

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1. Advertising : We have planned our advertising based on the target market.

We have dedicated 1.7 lakh INR for advertising only. Our product is for sportive

youngsters, so we are going to advertise using print media and electronic media

both.

We would be advertising our watches in newspapers like” daily trust”, and

“leadership” both are published from capital Abuja. Magazines for

advertisement would be “Crystal Magazine” published from Abuja and few other

magazines like “Celebrity” & “City People”.

When it comes to electronic media, we would be showing our advertisement on

Nigerian radio and Television. The language of communication would be English.

2. Sales promotions: As our product is a product for sports, we will promote

our brand through various Competitions of football and other athletics. We will

be organizing a mega sport event in capital Abuja to introduce the brand.

3. Personal selling : yes, personal selling would be done on an extent but we

are not more focused on push strategy. As we are positioning our product as a

high quality trusted brand, we just can’t give more emphasis on personally

convincing the target audience.

4. Other promotional methods : other promotional method would include

public relation. We will be appointing PR manager in Oron head office, Abuja

who will take care of the brand promotions.

Distribution: from origin to destination :

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Port selection: The origin port for shipment would be Mumbai destined to

port of Lagos. This is the easiest way to carry the products.

Mode selection: there are various modes like railroad, air carriers, ocean

carriers and motor carriers. But we have chosen ocean carriers taking the

following points under the consideration:

Advantages of ocean carriers:

They are the most reliable carriers.

They are speedy enough for the carriage of products.

Ocean carriers are cost effective and reduce transportation cost.

(http://www.tradecarview.com/ship/oceancarriers.aspx)

Disadvantages of ocean carriers: The only disadvantage with ocean

carrier is that it is at risk. If something goes wrong with the climate or ocean,

there may be very high damage to the ship and products kept inside.

Naturally speaking, risk factor is attached with every aspect now a days, but

entrepreneurship demands risk taking ability, so we don’t mind opting for

ocean carriers.

Packing: The basic principle of packaging is known as the "unit load'

concept or "unitization." Unitization is based upon the theory that all

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shippers should pack their cargo so it may be moved and handled entirely by

mechanical equipment, such as lifts and cranes, throughout the distribution

network. As per unitization, our watches would be enclosed in triple wall

containers to avoid damage. Second, the boxes or containers should be

secured to four ways entry pallets cushioned with shrink-wrap or steel

strapping.

(http://www.susta.org/export/packingetc.html)

Marking and labeling regulations: Markings has to be done to a

minimum. Trademarks or product descriptions should not be added to the

box. Marks should be applied with waterproof ink to three surfaces of the

container. Cautionary markings should be in English, the language of the

country of destination and the international graphic-handling symbol.

Containerization : the containerized type is when the product is loaded into

containers and moved from door-to-door without the contents being

handled. It is the most common method used to transport high-value or

value-added agricultural exports.

Cost: The shipping cost from India to Lagos, Nigeria is approximately 675

INR (i.e. 15 $) per cubic foot.

(http://uboxworldwide.com/international-shipping/nigeria/)

4 . Documents Required:

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1 . Bill of Lading: A bill of lading is a type of document that is used to

acknowledge the receipt of a shipment of goods. A transportation company

or carrier issues this document to a shipper. In addition to acknowledging the

receipt of goods, a bill of lading indicates the particular vessel on which the

goods have been placed, their intended destination, and the terms for

transporting the shipment to its final destination.

(http://www.wisegeek.com/what-is-a-bill-of-lading.htm)

2 . Dock Receipt: we will be forwarding our products through Great

Eastern shipping company, Mumbai. This receipt will be given by

shipping company to acknowledge that goods have been received for

shipment. Dock receipt transfers the accountability for the safe custody of

the cargo from the shipper to the carrier, and serves as the basis for

preparing the bill of lading

(http://www.businessdictionary.com/definition/dock-

receipt.html#ixzz11tKOFz4w)

3 . Commercial Invoice: Document required by customs to determine true

value of the imported goods, for assessment of duties and taxes. A

commercial invoice (in addition to other information), must identify the

buyer and seller, and clearly indicate the

(1) date and terms of sale,

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(2) quantity, weight and/or volume of the shipment,

(3) type of packaging,

(4) complete description of goods,

(5) unit value and total value, and

(6)insurance,shipping and other charges (as applicable).

(http://www.businessdictionary.com/definition/commercial-

invoice.html#ixzz11tL66zDx)

4 . Pro forma invoice: Abridged or estimated invoice sent by a seller to a

buyer in advance of a shipment or delivery of goods. It notes the kind and

quantity of goods, their value, and other important information such as

weight and transportation charges. Pro forma invoices are commonly used

as preliminary invoices with a quotation, or for customs purposes in

importation.

(http://www.businessdictionary.com/definition/pro-forma-

invoice.html#ixzz11tLYBc66)

5 . shipper’s export declaration : Shipper's Export Declaration (SED) filing

is generally required by the U.S. Census Bureau for U.S. exports that contain

a single commodity's value exceeding US$2,500.00. All SED information is

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provided to the U.S. Census Bureau and is used for export compliance and

governmental reporting. 

(https://www.ups.com/content/us/en/shipping/international/documents/

intl_forms/declaration.htm)

6 . Statement of origin: The manufacturer's statement of origin, also

known as the manufacturer's certificate of origin, certifies the country where

goods were made. It is one of many documents that may be involved with

the import and export of manufactured products.

The Definition of Manufacturer's Statement of Origin | eHow.com

(http://www.ehow.com/facts_6850703_definition-manufacturer_s-statement-

origin.html#ixzz11tMLmvrn)

5 . Insurance claims: Many of the issues surrounding shipping insurance

come to bear either before you actually ship the item in question or while

you’re standing at the counter and/or filling out necessary forms (online or

not) to ship it. Here are some of the most important.

1 . Pack well for shipment

2 . Take a photo of your packaging before you ship

3 . Buy as much insurance as the item is actually worth.

4 . Use a traceable shipment method

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5 . Keep all shipping documentation

6 . Making a Claim

(http://ebay.about.com/od/shippingitems/qt/ct_insurance.htm)

6 . Freight forwarder: Freight forwarding is a service used by companies

that deal in international or multi-national import and export. While the

freight forwarder doesn't actually move the freight itself, it acts as an

intermediary between the client and various transportation services. Sending

products from one international destination to another can involve a

multitude of carriers, requirements and legalities. A freight forwarding

service handles the considerable logistics of this task for the client, relieving

what would otherwise be a formidable burden.

(http://www.wisegeek.com/what-is-freight-forwarding.htm)

E . Channels of Distribution

Products delivered at port are carried to various retail outlets through

road transport. Wholesalers distribute to other retail outlets to various

cities through road transport. Cost incurred to transport the product to the

retail outlets is included Maximum Retail Price (MRP).

1. Retailers.

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a) There are 7 shopping malls in Nigeria and each shopping mall consists

of one retail outlets. There are nine distributors who distribute the

product to 3 cities of Nigeria.

b) Each retail outlets will be earning 2263 Naira per watch. Other retail

chains in the city will be earning 342 Naira per watch.

c) Transaction will be in cash as well as credit. Credit period for

wholesaler is 30 days.

2. Wholesale and Middlemen.

a) There are 9 wholesalers for the product who will distribute to 3 main

cities of Nigeria.

b) Each distributor will earn 684 Naira for each watch.

c) Transaction will be in cash as well as credit. Credit period for

wholesaler is 30 days.

d) Scale of operation will be in large.

3. Import/export agents.

We have already made a contract with Great Eastern shipping Co.

Mumbai which will be taking care our reliable agent for exporting our

product.

4. Warehouse

We have our mother warehouse in destination port which is Lagos and the

daughter warehouse is at capital city of Nigeria- Abuja, rest of

warehousing would be taken care by the wholesalers themselves.43

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F . Price Determination :

1. Cost of the shipment of goods

According to standard of Indian shipping they charge 15 dollars that is

675 approx Indian Rupees per cubic foot. So including all charges of

shipment from Indian port to Nigerian port would be Rs. 4, 00,000. The

cost of transportation and handling expenses (which includes carriage

charges and freight) will be included in the same.

2. Insurance costs

Our product is insured with Oriental Insurance company and the amount

charge by them is Rs. 3, 00,000.

3 . Custom duty

As per Indian government law we are paying 20% custom duty on our

product which is Rs-36, 07,499

5. Value added tax

As per Indian government law we are paying 5% Value added tax (VAT)

for our product which is Rs-9, 01,875.

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6. Discounts

Discounts will be given only in retail outlets and the discount strategy

would depend upon strategies of competitors.

7. Company gross margin

As per the expected sale for the first year that us 10000 units our profit is

expected to be Rs.3, 600,000 (price for one unit is Rs 1200)

8. Retail Price.

Maximum Retail Price is Rs- 1500.

G . Terms of Sale:

1 . EX works: Term of sale signifying that the price invoiced or quoted by a

seller includes charges only up to the seller's factory or premises. All charges

from there on are to be borne by the buyer

(http://www.businessdictionary.com/definition/ex-works.html#ixzz11tl69TuN)

Ex Works pricing is also more accurate as an indicator of the product's price

in any region as seller’s perception of the local price of that product is not

affected by the transportation cost.

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EX WORKS or EXW is buying based on a price quoted to a buyer without

transportation or delivery to his/her site. It just means he buys at a price

where the manufacturer has the limited duty for producing and placing the

finished goods at his factory or warehouse, and then the buyer collects it

with his own transporter.

(http://ezinearticles.com/?What-is-Ex-Works?&id=1866174)

FOB: A trade term requiring the seller to deliver goods on board a vessel

designated by the buyer. The seller fulfills its obligations to deliver when the

goods have passed over the ship's rail.

When used in trade terms, the word "free" means the seller has an

obligation to deliver goods to a named place for transfer to a carrier.

(http://www.investopedia.com/terms/f/fob.asp)

Here, the buyer has to bear all the costs and risks of damage or loss to the

goods from that point. The FOB term requires the seller to clear the goods

for export. This term can be used only for sea or inland water way transport.

(http://www.iccwbo.org/incoterms/preambles/pdf/FOB.pdf)

FAS:

C & F: Term of sale signifying that the price invoiced or quoted by a seller

for a shipment does not include insurance charges, but includes all expenses

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up to a named port of destination. In comparison, carriage paid to (CPT)

terms include all transport charges (but not insurance) up to a named place

(usually the buyer's warehouse) of destination.

(http://www.businessdictionary.com/definition/cost-and-freight-C-

F.html#ixzz11tqnFWoy)

Seller owns goods until they are loaded on vessel; selling price includes all

costs so far plus cost of ocean freight.

(http://www.lectlaw.com/def/c001.html)

CIF: Cost, Insurance and Freight (-named port of destination) It is most

frequently used term in export transactions and includes FOB price plus cost

of ocean freight and marine insurance, upto the port of destination. In C.I.F.

quotation, care must be taken to state the name of port to which the goods

are intended to be shipped. However, if the “CIF price is applicable all over

the world, the quotation should be “CIF Main Port”. CIF does not, however,

include any charges for unloading the goods or for import duties, if any, in

the country of importation.

(http://www.eximkey.com/copycon/disparch.asp?archid=425)

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Methods of payment

As we are entering the market for the first time we have adopted comfortable

methods of payment. Taking Nigeria economy under the consideration we would

offer cash in advance, open accounts and letter of credit methods of payment.

Marketing Budget

Advertising and promotion expense

As we are advertising our product through various print media such as

newspapers, magazines etc; television channels of Nigeria (national channel)

and also through various FM radio channels. As we are entering the market for

the first time various sales promotion activities are also done along with the sale

of the product. So total expense incurred for advertising and sales promotion is

Rs 17,500,000.

Distribution expense

As wholesalers would be distributing the product to various retailers the entire

distributing charges would be born by the wholesaler itself. There are 9

wholesalers who are going to distribute the product to different retail outlets.

Product cost

Raw material Price (RS.) Quantity Total (RS)

Gps tracking system 135 per

machine

50000 64,50,000

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Plastic acrylic mirror

sheets

80 per sq. ft 30000 sq. Ft 24,00,000

metal 180 per kg. 3000 kg 5,40,000

Packing material

(contract )

30 per case 50000 cases 15,00,000

Export packaging (Thrifty

Square Box)

42 per box 50000 box 21,00,000

Labour 50 per unit 50,000 25,00,000

Production 50,000

watches(weight is 90

grams per watch)

Total 1,54,90,000

Other cost

Our vision is to provide a time piece to every person who wants to play. We are

pioneer to take initiative of building a brand in the economy like Nigeria. To provide

more credibility, trust and access to Oron watches we need to make our own official

website. Oron is taking care of its customers in both the market either physical or

online. Our official website is www.oronwatches.com

Other cost also include maintenance cost which cost Rs-12, 00,751

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Profit and loss account for first year i.e., 2010-11

Particulars Amount(in

Rs)

Particulars Amount(i

n Rs)

By Opening stock

(50000 units of Rs 840)

42000000

42000000

To sales (10000 units of

Rs 1200)

To gross loss c/d

1200000

0

3000000

0

4200000

0

Profit and loss account for the fifth year

Particulars Amount (in

Rs)

Particulars Amount(

in Rs)

By Opening

stock(50000 units of Rs

840)

By Gross profit c/d

42000000

18000000

To sales (50000 units of

Rs 1200)

6000000

0

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60000000

6000000

0

III. Resources requirements:

1. Finances : We, Oron watch Corporation has got budget of 5 crore INR. The

distribution of finances has taken place as follows:

A. The major portion of total amount i.e. approximately 4.2 crore INR is

apportioned right from manufacturing till distribution up to the retail stores.

B. The second big portion is for the events and promotions of the brand. We

have apportioned 50 lakh INR for mega sport events in Abuja & Lagos.

C. Remaining 20 lakh INR are specially for CSR activities. We believe in

philanthropy. We believe in being good, doing good and getting good.

Finally, we understand our social responsibilities.

2. Personnel: Oron Watch Corporation believes in people working for it. We

have seven outlets at seven shopping malls in the cities of Abuja, Lagos and

Enugu. Each outlet will have 1 store manager, 2 technicians and 3 salesmen.

The employees are part of us and we believe in excellence. They all will be

well trained and equipped with best selling skills.

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3. Production Capacity : Our production capacity is 50,000 units for now.

We hope, it will increase with time and our progress. We are hopeful we

would be able to win the trust of our customers and print our brand image in

their minds.

Executive Summary: We, Oron watch corporation started our

company with the fortune of 5 crorore INR only. Our expertise lies in our

technology. And we specialize in sports watches. We analyzed and studied

the entire global market. And we came to know that on one end, it is highly

diversified and varied. There is lots of competition, still so much demand. To

make our concept more clear we did a SWOT analysis of it;

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SWOT Analysis: -

Strengths: We can say that there is lots of demand available for the

products and services both. If you are expert and specialize in something,

then there is lots of scope. There are international players in the market and

it makes you too standardize your product up to that bench mark.

Weakness: the weakness of international market can be said it demanding

atmosphere. If certain player is not diversified or specialized, then market

won’t accept it.

Opportunities: international market has tremendous opportunities for

every sector and product. There is lots of scope for innovation and

uniqueness. There is tough competition and every product has to be very

competent to survive in the market. This nature of market not only

welcomes the new entrants but help them flourish.

Threat: the only threat of the international market is its diverse nature.

Besides all these factors, international marketing is exciting enough and we

decided to take risk to enter. We searched for the target audience is every

youngster which is sportive. We found Nigeria a good market. We went

through a short survey of Nigeria and we found following facts:

Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate

infrastructure, and poor macroeconomic management, has undertaken

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several reforms over the past decade. Nigeria's former military rulers failed

to diversify the economy away from its overdependence on the capital-

intensive oil sector, which provides 95% of foreign exchange earnings and

about 80% of budgetary revenues.. Since 2008 the government has begun

showing the political will to implement the market-oriented reforms urged by

the IMF, such as to modernize the banking system, to curb inflation by

blocking excessive wage demands, and to resolve regional disputes over the

distribution of earnings from the oil industry. In 2003, the government began

deregulating fuel prices, announced the privatization of the country's four oil

refineries, and instituted the National Economic Empowerment Development

Strategy, a domestically designed and run program modeled on the IMF's

Poverty Reduction and Growth Facility for fiscal and monetary management.

In November 2005, Abuja won Paris Club approval for a debt-relief deal that

eliminated $18 billion of debt in exchange for $12 billion in payments - a

total package worth $30 billion of Nigeria's total $37 billion external debt.

The deal requires Nigeria to be subject to stringent IMF reviews. Based

largely on increased oil exports and high global crude prices, GDP rose

strongly in 2007 and 2008, and less strongly in 2009. President YAR'ADUA

has pledged to continue the economic reforms of his predecessor with

emphasis on infrastructure improvements. Infrastructure is the main

impediment to growth. The government is working toward developing

stronger public-private partnerships for electricity and roads.

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Taking these points under then considerations, we are launching our first

Oron Sports Watch in Nigeria. It has got following features:

High-Sensitivity, Watch-Like GPS Receiver That Provides Exceptional

Signal Reception

1 Piece Training Assistant That Provides Athletes With Precise Speed,

Distance & Pace Data

Includes Training Center Software, Which Allows Users To Download

Workout Data For A Detailed Analysis

Used For Multiple Sports Such As Cycling, Cross- Country Skiing &

Windsurfing.

(http://gadgetophilia.com/top-10-sports-watch/)

Our Brand Logo:

Our brand tagline: time in your hand!

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http://gadgetophilia.com/top-10-sports-watch/

http://www.eximkey.com/copycon/disparch.asp?archid=425

http://www.lectlaw.com/def/c001.htm

http://www.businessdictionary.com/definition/cost-and-freight-C-

F.html#ixzz11tqnFWoy

http://www.iccwbo.org/incoterms/preambles/pdf/FOB.pdf

http://www.investopedia.com/terms/f/fob.asp

http://ezinearticles.com/?What-is-Ex-Works?&id=1866174

http://www.businessdictionary.com/definition/ex-

works.html#ixzz11tl69TuN

http://www.wisegeek.com/what-is-freight-forwarding.htm

http://ebay.about.com/od/shippingitems/qt/ct_insurance.htm

http://ebay.about.com/od/shippingitems/qt/ct_insurance.htm

56

Page 57: International Marketing of Wrist Watch at Nigeria

http://www.ehow.com/facts_6850703_definition-manufacturer_s-

statement-origin.html#ixzz11tMLmvrn

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intl_forms/declaration.htm

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invoice.html#ixzz11tLYBc66

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invoice.html#ixzz11tL66zDx

http://www.businessdictionary.com/definition/dock-

receipt.html#ixzz11tKOFz4w

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information technology

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WORKING-CONDITIONS.html

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http://www.motherlandnigeria.com/transportation.html

http://www.onlinenigeria.com/links/kebbiadv.asp?blurb=309

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entertainment.html

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http://www.fig.net/pub/proceedings/nairobi/ajanlekoko-CMWS1-1.pdf

http://www.foodbycountry.com/Kazakhstan-to-South-Africa/Nigeria.html

http://www.mapsofworld.com/nigeria/culture/art.html

http://www.mapsofworld.com/nigeria/culture/music.html

http://www.mapsofworld.com/nigeria/culture/religion.html

http://www.mapsofworld.com/nigeria/tourism/entertainment.html

http://www.motherlandnigeria.com/legal.html

www.mapsworld.com

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