1. Submitted by Jayasankara
Iconz second semester
macfast

2. The market project is done on the certain product
like readymade garment, tea brand cigarette, edible
oil to find out the risk involved and how to compete
in a foreign market. The project is done on a
systematic information to give proper knowledge
about the risk and competition.
INTRODUCTION

3.  Indian readymade garment industry is the one the largest exporting
sector to the European union and U.S.A . Indian readymade garment
industry is a Labor intensity sector which gives a lot of employment
opportunity to the rural people . The Indian readymade garment
Industry which exporting to the European union and to U.S.A which contributes to the
export earnings of the India.
READYMADE GARMENT INDUSTRY

4.  Competition from other exporting countries(China and Bangladesh )
• Exchange rate fluctuation
• Diversification of goods in the foreign market
• Dynamic change in fashion
• Restriction from entering a new market
• Have to compete with countries that have low labor cost and low
raw material cost .
• Delay in delivering time (lead period)
• non availability of workers.
risk and to compete in entering foreign market for readymade
garment industry?

5.  Garment industry must be competitive by providing quality and fashionable goods
• buy the currency at current rate so that change in rate will not be effected
• The foreign market required a diversified product line which should be provided to
compete with the other players.
• known your customer
• go to other country which have no trade restriction to increases market share
• government support is required to easily avail raw material and availability of labor
force
• new technology , method and process should be implemented to reduces lead
time and increases efficiency and effectiveness.
How to overcome this situation?

6. ••TEA IS AN AROMATIC BEVERAGE PREPARED BY ADDING
CURED LEAVES OF THE CAMELLIA SINENSIS PLANT TO HOT
WATER.
•TEA IS THE MOST WIDELY CONSUMED BEVERAGE IN THE
WORLD.
•IT HAS A COOLING, SLIGHTLY BITTER, ASTRINGENT FLAVOR
WHICH MANY ENJOY
TEA

7. BLACK TEA:
•BLACK TEA IS THE MOST OXIDIZED AMONG THE VARIOUS KINDS OF
TEA.
•IT IS ALSO STRONGER AND HAS RELATIVELY MORE CAFFEINE
CONTENT THAN THE OTHER VARIETIES.
•IN THE PROCESS OF OXIDIZATION, THE WATER IN THE TEA LEAVES
EVAPORATES, AND THE LEAVES ABSORB MORE OXYGEN.
Types of tea

8. GREEN TEA:
GREEN TEA IS THE LEAST OXIDIZED VARIETY OF THE TEA.
IT IS ALSO ASSOCIATED WITH SEVERAL HEALTH BENEFITS. ONE
OF THE MOST PROMINENT HEALTH BENEFITS OF THE GREEN
TEA CONSUMPTION, ON REGULAR BASIS, IS THAT IT REDUCES
THE CHANCES OF HEART ATTACKS AND CERTAIN TYPES OF
CANCER TO A GREAT EXTENT

9. OOLONG TEA:
ONE OF THE MOST POPULAR TEA IN CHINA, OOLONG TEA IS
MORE OXIDIZED THAN THE GREEN TEA, BUT LESSER THAN
THAT OF THE BLACK TEA.
IT IS ALSO ONE OF THE MOST EXPENSIVE KINDS OF TEA.
IT IS AN IDEAL CHOICE FOR PEOPLE WHO ARE WARY OF THE
STRONG FLAVOR

10. WHITE TEA:
WHITE TEA UNDERGOES MINIMAL OXIDIZATION; HOWEVER THE TEA
LEAVES CHOSEN TO PREPARE THIS VARIETY ARE PICKED FROM
YOUNG BUDS.
THE WHITE TEA HAS A NATURAL SWEETNESS ASSOCIATED WITH IT.

11. GLOBAL COMPETITION
The major competitive countries in tea in the world are Sri
Lanka, Kenya, China and Indonesia.
Another important point is that, U.K has substantial interest in tea cultivation in
Kenya. Most of the sterling companies, due to implementation of FERA Act
started tea cultivation in Kenya. So, it makes business sense for U.K. to buy
tea from Kenya and Kenya became the largest supplier of tea to U.K

12. importer
wholesale
r retailers
Marketing channel in foreign
exporter importer distributer
consumers
consumer
exporter

13. Competition by low cost production countries like china, sri lanka and
Kenya.
• culture prefers different type of tea
• availability of market
• government regulation
• countries taste and preferences
• consumer buying habits
RISK AND WAY OF COMPETING IN A FOREIGN MARKET OF THE INDIAN
TEA ?

14. • Should market tea as to cultural, taste and preferences eg : Chinese and
Japanese prefers green.
• should focus on economy of scale
• Indian government should help in the promotion and smooth working in other
country
• different tea should be marketed to the need of the market
How to Competing with the foreign market

18. • Edible oil imports have been liberalized since the 19--’s and now attract lower
tariffs
•No import duty on crude oils in contrast to finished products (refined oils and
hydrogenated fat)
• India is the world’s largest importer of edible oils and market demand is
expected to sustain
• Loose or unbranded oil accounts for bulk of sales compared to branded and
EDIBLE OIL
Market

19. Characteristics
•Demand for imported oils to remain strong due to growing
consumption and constrained supplies
• Organized sector, earlier disadvantaged due to sales tax
regime, is not growing its market share
• Domestic production faces supply-side constraints and
inefficiencies thereby ensuring the dependence on large levels of
edible oil imports

20. •Rising consumption accompanied by increasing domestic
production but large imports are still necessary to bridge the gap
•Palm and soybean oils account for bulk of imports due to their
low prices
• Prices have risen at a% p.a. with a dip observed only in 2005 -
2006
Trends

21. • Government restriction in exporting or entering a foreign market.
• lack of raw material
• lack of technology
• competition by other big players
• In India demand for edible oil is surplus
• less production
Risk and way to compete in foreign market for edible oil of Indian company?

22. •Increase in production to international standard
• increase availability of raw material by increasing cultivation
• identify foreign market that have high demand for edible oil
• implement to new technology
Competing in foreign market

23. •THE CIGARETTE INDUSTRY IS ONE OF THE OLDEST INDUSTRIES IN INDIA.
•IT IS AN IMPORTANT AGRO BASED INDUSTRY.
•IT IS HIGHLY LABOR INTENSIVE & PROVIDES LIVELIHOOD TO ABOUT 5 MILLION PEOPLE
DIRECTLY AND INDIRECTLY.
•CIGARETTE IS AN ITEM FALLING UNDER THE FIRST SCHEDULE TO THE INDUSTRIES
(DEVELOPMENT & REGULATION) ACT, 1951 AND REQUIRES AN INDUSTRIAL LICENSE.
•IT EXPORTS A GOOD AMOUNT OF CIGARETTE IN VARIOUS COUNTRIES, WHICH
GENERATES A HANDSOME AMOUNT OF REVENUE FOR THE COMPANY.
cigarette industry

24. •CIGARETTE EXPORTS DURING 2007-08 INCREASED BY 11 % IN VOLUME
TERMS OVER THE EXPORTS OF PREVIOUS YEAR.
• MAJOR MARKETS FOR CIGARETTES ARE UAE AND USA, ROMANIA, SAUDI
ARABIA AND IRAQ WHERE THE DEMAND FOR GENERIC LOW COST
CIGARETTES IS GROWING.
cigarette industry

25. LIST OF MAJOR PLAYERS IN INDIAN
CIGRATTE INDUSTRY
Godfrey Phillips
(India) Ltd.
V.S.T. Industries
Ltd.
ITC Limited
G.T.C. Industries
Ltd.

26. One of India’s premier private limited groups with
over 99 years.
Large & established Distribution Networks.

It has more then 21,000 employees at more then 60
location across India with 4,86,000 shareholders.
Ranks No. 4 among Indian listed Private Sector
Companies by market cap. (@ April 09)
Rated as- one of India’s Most Respected Companies
(IMRB-Business world Survey 2006)
ITC
ONE OF INDIA’S MOST VALUABLE CORPORATIONS

27. ITC HISTORY OF THE COMPANY
On 24th Aug. 1910 the company was incorporated as a
private company under the name, Imperial Tobacco Co.
of India ltd.
On 27th Oct. 1954 the company was converted into a
public limited company.
 The name of the company was changed from the
Imperial Tobacco co. of India ltd., to India Tobacco co.
ltd. In May 1970.
On Oct. 1972 company entered into Hotel business.
On 2000 company has launched a project “ e- choupal”
in Bhopal to Web-enable farmers to make a beginning in
Agriculture e-trade.
During the same year ITC has launched Wills sport, a
full range of internationally styled premium wear for Men &
Women.

28. The second largest player in the Indian
cigarette industry.
Has two major stakeholders, one of India's
leading industrial houses - the K. K. Modi Group
and one of the world's largest tobacco
companies, Philip Morris.
GODFREY PHILLIPS INDIA LTD.

29. Incorporated in India in 1936, the Company
established its own manufacturing facilities in 1944
On 1946 GODFREY PHILLIPS became a Public Ltd.
Co. with its manufacturing operations in Mumbai
Its products are distributed through an extensive India
wide network comprising 484 exclusive distributors and
over 800,000 retail outlets
GPI
HISTORY OF THE COMPANY

30. oGPC is a professionally managed organization in the field of
tobacco and tobacco related products.
oEstablished in the year 1930 by the late Shri Narsee Monjee.
oGTC is the first wholly owned company specializes in
manufacturing & exporting an exclusive range of
Cigarettes, Flavor Cigar & Non Tobacco smoking product.
oGTC has manpower strength of 2000 employees spread across
manufacturing.
oThe Company has two major production facilities in Mumbai as
well as Baroda.
GOLDEN TOBACCO LIMITED
PROFILE

31. Vazir sultan
Tobacco.
Industries ltd
The company was incorporated in 1930 at Hyderabad .
 The third largest player of Cigarette industry in India.
 In 1984 the name of the Company was changed from The Vazir Sultan
Tobacco Co. Ltd. to VST Industries Ltd.
The Company manufactures and distributes Cigarettes The products are sold
under the trade names `Charminar Specials', `Shah-I-Deccan', `Qila', `High
Court', `Vazir' and `Ambassador'.

32. •Health hazards
Foreign competition
• Trade barriers
• Market distribution risk
COMPETING IN FOREIGN MARKET
• Target countries that have lot of consumers(smokers).
•Use different market channel
Risk and the way to compete in a foreign market

33. The information helped in find the
risk involved in the foreign market how to compete in foreign market. As
the world becomes a globalized village which opened up new market
which gave a huge demand for goods and services. By opening up of new
market has lead to compete in competitive environment which has lead
to do a project in this manner .
conclusion