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Export documentation

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Assignment On Export co-ordination, communication and documentation

Submitted to: Ms. Nethravati Ashish Omar

Submitted by:

Pramod Kumar Nitin Verma Krishanu Bose Neeraj Km. Ravi (M.F.MIInd sem)

Acknowledgement We are thankful to Ms. Nethravati for giving us the opportunity to work on assignment export co-ordination, communication and documentations. The assignment was beneficial to us in many respects and we learned a lot about export communications, how orders are placed,

NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BANGALORE

importance of documents, and how exports co-ordinates with sources and buyer and many more.

Thanking you

From: Ashish Omar Pramod Kumar Nitin Verma Krishanu Bose Neeraj Kr. Ravi

Content:

NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BANGALORE

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Selecting the market Foreign market research Foreign market selection process Selecting prospective buyers Selecting channels of distribution Negotiating with buyers Processing an export order Entering into export contract Specimen of contract form for sale purchase transaction Export pricing and costing Procuring goods for export and inspection by authorities Export documentations Commercial documents Regulatory documents Auxillary documents Other documents Octroi Marine insurance policy Shipping and custom formalities Excise clearance Methods of receiving payments Annexures Bibliography

Selecting the markets Target markets should be selected after careful consideration of various factors like political embargo, scope of exporter's selected product, demand stability, preferential treatment to

NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BANGALORE

products from developing countries, market penetration by competitive countries and products, distance of potential market, transport problems, language problems, tariff and non-tariff barriers, distribution infrastructure, size of demand in the market, expected life span of market and product requirements, sales and distribution channels. For this purpose you should collect adequate market information before selecting one or more target markets. The information can be collected from various sources like Export Promotion Council (EPCs)/Commodity Boards, Federation of Indian Export Organization, (FIEO), Indian Institute of Foreign Trade (IIFT), Indian Trade Promotion Organization (ITPO), Indian Embassies Abroad, Foreign Embassies in India, Import Promotion Institutions Abroad, Overseas Chambers of Commerce and Industries, Various Directories, Journals, Market Survey Reports.

Foreign Market Research Understanding a markets key characteristics requires gathering a broad range of primary and secondary research, much of which you can source without cost from the internet. Primary research, such as population figures, product compliance standards, statistics and other facts can be obtained without any cost from international organizations like United Nations (UN) and World Trade Organizations (WTO). Analysis of export statistics over a period of several years helps an individual to determine whether the market for a particular product is growing or shrinking. Secondary research, such as periodicals, studies, market reports and surveys, can be found through government websites, international organizations, and commercial market intelligence firms. Foreign Market Selection Process Step 1: Gather Information on a Broad Range of Markets Market selection process requires a broad range of informations depending upon the products or services to be exported, which includes:y y y y y y y y

The demand for product/service. The size of the potential audience. Whether the target audience can afford product. What the regulatory issues are that impact on exports of product. Ease of access to this market proximity/freight. Are there appropriate distribution channels for product/ service? The environment for doing business language, culture, politics etc. Is it financially viable to export to selected market?

NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BANGALORE

You can gather much of the first step information yourself from a variety of sources at little or no cost. Sources of information include:y y y y

Talking to colleagues and other exporters. Trade and Enterprise web site, publications, call centre. The library. The Internet.

Step 2: Research a Selection of Markets In-Depth From the results of the first stage, narrow your selection down to three to five markets and undertake some in-depth research relating specifically to your product. While doing so, some of the questions that may arise at this stage are:y

y y y y y y y y y y y y y y y y y y y

What similar products are in the marketplace (including products that may not be similar but are used to achieve the same goal, e.g. the product in our sample matrix at the end of this document is a hair removal cream. As well as undertaking competitor research on other hair removal creams, we would also need to consider other products that are used for hair removal, i.e. razors, electrolysis, wax). What is your point of difference? What makes your product unique? What are the key selling points for your product? How do people obtain/use these products? Who provides them? Are they imported? If so from which countries? Is there a local manufacturer or provider? Who would your major competitors be? What are the key brands or trade names? What is the markets structure and shape? What is the markets size? Are there any niche markets, and if so how big are they? Who are the major importers/ stockiest / distributors / agencies or suppliers? What are the other ways to obtain sales/representation? What are the prices or fees in different parts of the market? What are the mark-ups at different distribution levels? What are the import regulations, duties or taxes, including compliance and professional registrations if these apply? How will you promote your product or service if there is a lot of competition? Are there any significant trade fairs, professional gathers or other events where you can promote your product or service? Packaging do you need to change metric measures to imperial; do you need to list ingredients? Will you need to translate promotional material and packaging? Is your branding colors, imagery etc., culturally acceptable.

Selecting prospective Buyers

NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BANGALORE

You can collect addresses of the prospective buyers of the commodity from the following sources: y y Enquiries from friends and relatives or other acquaintances residing in foreign countries. Visiting/ participating in International Trade Fairs and Exhibitions in India and abroad. Contact with the Export Promotion Councils, Commodity Boards and other Government Agencies. Consulting International Yellow Pages (A Publication from New York by Dun & Bradstreet, USA or other Yellow Pages of different countries like Japan, Dubai Etc.) Collecting addresses from various Private Indian Publications Directories available on cost at Jain Book Agency, C-9, and Connaught Place, New Delhi-1. (PH. 3355686, Fax.3731117). Collecting information from International Trade Directories/ Journals/periodicals available in the libraries of Directorate General of Commercial Intelligence and Statistics, IIFT, EPCs, ITPO etc. Making contacts with Trade Representatives of Overseas Govt. in India and Indian Trade and Other Representatives/ International Trade Development Authorities abroad. Reading biweekly, fortnightly, monthly bulletins such as Indian Trade Journal, Export Service Bulletin, Bulletins and Magazines issued and published by Federation of Exporters' Organizations, ITPO, EPCs, Commodity Boards and other allied agencies. Visiting Embassies, Consulates etc. of other countries and taking note of addresses of importers for products proposed to be exported. Advertising in newspapers having overseas editions and other foreign newspapers and magazines etc. Consulting ITPO, IIFT, etc. Contacting authorized dealers in foreign exchange with whom exporter is maintaining bank account.

y y

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y y y y

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Overseas importers can be contacted or informed about the products by the following methods: By corresponding and sending brochures and product literature to prospective overseas buyers. By undertaking trips to foreign markets and establishing personal rapport with overseas buyers. The number of trips will depend on your budget and resources. But it is essential for long-term success in international marketing to establish personal rapport. Foreign trip will provide first-hand information regarding the market, overseas customers, their requirement, taste, preference and better out communication of the merits of exporters' products. Participation in buyer-seller meets and meeting the members of foreign delegation invited by Export Promotion Councils concerned. Participation in international trade fairs, seminars. Advertisement and publicity in overseas reputed newspapers and magazines. Facilities of free publicity can be availed from Import Development Centers.

NATIONAL INSTITUTE OF FASHION TECHNOLOGY, BANGALORE

Selecting channels of distribution The following channels of distribution are generally utilized while exporting to overseas markets:y y y y y

Exports through Export Consortia Export through Canalizing Agencies Export through Other Established Merchant Exporters or Export Houses, or Trading Houses Direct Exports Export through Overseas Sales Agencies.

Negotiating with Prospective Buyers Whatever the channel of distribution for exporting to the overseas countries is proposed to be is utilized, it is essential that the exporters should po

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