Participants	Project Work	My Tour

International Marketing

5^th. November. 1999 to 31^st. October. 2000

Market Research
For Leather and Shoes Marketing
From Bangladesh and Nepal to Germany

Mr. Masadur, Rahaman (Bangladesh) Rishilpi Development Project	Mr. Joshi, Ramesh Kumar (Nepal) Kiran Shoes Manufactures

Projekt   Contents

1. Problemstellung und Projekt ziel

1.1 - Problemstellung

�        Qualit�te sind nicht Ma�stab f�r EU l�nder
�        Technishe Problem
�        Besser Grund stuffe Problem
�        Gestaltung Problem
�        Kommunikation Problem
�        Markt information Problem
�        Capacit�t Problem

1.2 - Projekt ziel

�        Identifizieren  Markt Chance f�r Leader und Schuh marketing
�        Identifizieren Leader und Schuh einf�rer
�        Idee entwvicklung
�        Idee austausch
�        Konkurrence analyse
�        Identifizieren  Produkts Problem
�        Information zammeln �ber einf�hr und ausf�hr

2. Situationsanalyse

2.1 - Marktpotenzial (chancen und risiken des markets)

�        Deutsch ist ein Handel  Partner
�        Markt Forschung und real Begriff
�        Bev�lkerung und kauftkraft

2.1.1 - Chancen

�        Bekommen die anschrift einf�hrer
�        Beteiligung in Markting seminar
�        Aufbauen basic relations mit einf�hrer
�        Geben informations �ber unserer product zum Handel  Verband
�        Kommunikation durch Internet
�        Kontakt kn�pfen mit Dutschen AHK (Nepal German Chamber of Commerce)
�        Bilateral economic Bezeiung
�        Beteiligung in Internationale Messe

2.1.2 - Risiken

�        St�rk Konkurrenz
�        Ziet Factor und Produkt kosten
�        Finanziell Bedingungen
�        Qualit�t und gestaltung Kontrolle 
�        Kommunikation problems
�        Regierung  Regel
�        Viel verkehrsmittel kosten

2.2 - Wettbewerbsanalyse

2.2.1 - Hauptst�rken

�        Preis  vergleish
�        Geschickt  Management
�        Mehr Ausenhandle Erfahrung
�        Mehrer gestaltung
�        Finanziell Kapazit�t
�        Kommunikations M�glichkeiten
�        Verpackung  M�glichkeiten

2.2.2 - Hauptschw�chen

�        Abh�ngig  zum Lieferer
�        Rohstoff  Problem
�        zentral  platzieren
�        Viel Instandhaltung kosten

 2.  2.3 - Company potential goal

�        Entwicklung neue id�e
�        Vergrosser ausenhandle
�        Markting idee austausch
�        Neue Markt erreichen
�        Markt beobachten
�        Markt forschung durchf�rehn
�        Wirtchaft beizung Entwicklung mit Duetsch Regierung

3. SWOT analysis

3.1 - St�rken

• Besser Qualit�te
• Niedrig  Preis
• Exclusiv gestaltung
• Gute Absicht
• Bequem
• Umwelt freundlich

3.2 - Schw�chen

�        Grund stuffe Problem
�        Technische Problem
�        Farbe Problem
�        Decikon Slicagel problem
�        Qualit�te Problem
�        Marketing mix Problem
�        Politische Problem

3.3 Chancen

�        Nidrige Preis
�        N�tzlich
�        Einfach liferung
�        Mehr combination
�        Nidrige Preis in blue weight Leader

3.4 - Risiken

�        Liferung Risiko
�        Preis fluctuation Risiko
�        Farbe, Scharf und temparature Risiko
�        Pakung Risiko
�        Information austauschen Risiko

4. Leitbilder und Globalzielsetzung

4.1 - Unternehmenphilosophie f�r marketing bei leader goods und Schus in

German markt

�        Besser Produkt Qualit�t
�        Nidrige Preis
�        Neue gestaltung
�        Indirekt liferung
�        Konkurenz beobachtung
�        Schnell kommunikation
�        Produkt segment
�         Markt Segment

4.2 - Marketing ziel

�        Vergrosser aussenhandel
�        Neue Markt offen
�        Langfristig Markt
�        Wirtschaft beizung entwicklung mit Deutschland
�        Technisch austausch
�        Markt gewinnen

5. Strategieprofile

5.1 - Marktssegmentierungsstrategie

�        Basis von verbraucher
�        Reich verbraucher
�        Mittle verbraucher
�        Basis von Produkt
�        Echt Leader Produkt
�        Leader und Stoff Produkt
�        Leader und Jute Produkt
�        Echt PVC und Senthetic Cloth
�        Basis von Alt
�        Basis von m�nnlich

5.2 - Marketeintrittsstrategie

�        Markt beobachtung und vorschung
�        Nidrige Preis
�        Besser qualit�t
�        Besser pakum
�        Attraktiv angebot
�        Einfach liferung
�        Neue gestaltung
�        Konkurenz analuse
�        folgen Regel
�        Identifizieren Liferung system

5.3 - Wettbewerbsstrategie

�        Preis
�        Qualit�t
�        Gestaltung
�        Markt Bef�rderung
�        Schnell Kommunikation
�        Neue id�e und Technisch entwicklung
�        Markt beobachtung
�        Bef�rderung in Internatunal messe
�        Besser beziehung mit kaufer und International handel Verband
�        Aussuchen ziel Markt

5.4 - Innovation strategy

• Designer schiken zum ausland f�r neue technisch
• Folgen ausland Magazine
• Neue technologie austausch
• Bezeiung mit gestaltung Institute
• Beobachtung International messe
• Analyse Markt trend
• Suchen im Internet
• Beobactung wettbewerber Produkt

6. Marketing mix

6.1 - Communicationpolitik

• Catalogue
• Magazine
• Brouschere
• Website

6.2 - Product and Markenpolitik

• Plannung und entwicklung
• Unterst�tzung  Produkte
• Standardization und grading
• Pakung
• Branding

6.3 - Pricepolitik

• Markup Preis ( 35% f�r Rishilpi)
• Rabatt
• Fest Preis
• FOB Preis (Air und Sea)

6.4 - Distribution politik

• Indirekt distributionpolitik

7. Ergebnisse

• Bekommen viel information �ber einf�hrer
• Idee entwicklung �ber Preis
• Idee entwicklung �ber gestaltung
• Idee austausch �ber Produkt
• Concept entwicklung �ber Markt forschoung
• Concept entwicklung �ber qualit�t
• Concept entwicklung �ber Verbraucher
• Concept entwicklung �ber Produkt presentation
• Website entwicklung
• Konkurrence beobachted
• International messe besucht
• Identifizieren produkt problem

8. Schlu�folgerungen

• Besser qualit�t product
• Preis muss nidrig oder Preiswert sein
• Gestalltung muss creative und attraktiv sein
• Indirket distributionpolitik is besser f�r Deutschen Markt
• Brauchen besser kommunikationpolitik
• Brauchen neue technisch f�r Production
• Grundstuffe ausf�ren von Deutschland (Accessories)
• Stellen neue Bildung und investition mehrer Kapital
• Beteiligung International messe
• Beteiligung Marketing Seminar
• Farbe und Kulture ist sehr notwendig f�r Deutsche Markt
• Brauchen gute bezeiung mit Deutsche Botschaft

Problems and project goal

1.1 - Problems

There are many problems in our production for exporting our products in Germany and EU countries. Such problems are given as below �

�        Quality problem - Our products qualities are not standards for Germany. From our practical experience and from the existing market we have seen the Leather and Shoes products are more higher qualitative than our products.
�        Technical problems � The technics, which we are using, are not sufficient for mass production.
�        Better raw materials problem � The accessories, which we are using, are not suitable for quality full products. Besides it also takes time to import raw materials from other countries which disturbance in productions.
�        Design problems � German designs are always changeable. Each season they change their designs and the design quality is very high. But we have lack of design because of good designer and for design institute. We always use traditional and almost same design.
�        Communication problem � Communication plays a vital roll for marketing. But we have less proper communication possibilities. We have seen the communication through Internet, TV, Radio, International magazine, which we have no so many chances for using these media like here because of expensive and lack of knowledge.
�        Market information problem � German market are always changeable. In this period we have seen the changing of design according to the season. Due to the far distance we could not expect more information, which is important for the marketing of our products.
�        Capacity problem - We are using traditional and not advance as todays, but for exporting products we need more modern machineries, technology and concept to increase the capacity of the products.

1.2 - Project Goal

The main goal of this project are defined as follow -

�        Identification Market opportunity for Leather and Shoes marketing
�        Identification Leather and Shoes importer
�        Concept development
�        Concept exchange
�        Competition analysis
�        Identification Products Problem
�        Information collection of Importers and Exporters

Situation Analyse

2.1 - Market Potential (Opportunity and risk)

The market possibilities are as bellows:

• German as a Trading Partner � Because of Trading Partner, German wants to increase business all over the world. If the Shoe export and Leather proposal is acceptable according to country�s situation, cultural and need, there are the possibilities of Shoe and Leather export. Wasserfall � Strategie can proceed to explore the business in EU countries because of Trade Partner.
• Trade Fair - There are International Shoe and Leather trade fairs arranging every year. There are so many chances to make good trade relations with Shoe and Leather importers participating in trade fairs. German is very popular to arrange the trade fare Internationally. Not only the chance to make trade links with inland as well as with whole EU countries also.
• Market research and real concept � From visiting fairs and observing many shops, we saw that we have some problem but if we can remove that problem easily we can sell our product in German market. This problem is for pure leather goods, but for leather and jute combination, leather and fabric combination product has a great demand.
• Populations and purchasing Capacity � The population in Germany is highest as in other EU countries and purchasing capacity of the people is also more than other EU countries. Due to low price of our product, high technology, different styles, comfortable and different sizes, people can afford according to theirs choice. It is the great potential to explore the shoe and Leather market.

(See more data of German populations � Page 1 2 3)         

• Get the information and addresses of German distributors � There are so many media, for example � Internet, Address CD, Chambers of commerce, associations from where we got information and addresses of distributors. Which is the tool to introduce the product on German market.
• Participate in Marketing Seminars � Marketing Seminar is the place where the marketing people will gather. There are the chances to meet marketing people and introduced our product.
• Now make basic relations with distributors doing correspondences � It is the great chance to us to give information, make basic business relation with distributors doing correspondence via mail, email, and direct meeting any way.
• Given information of our product to associations concern with subject � This is the better way to introduce the product on the market giving detail information of the product in association. Because association is the organization of the marketing organizations of the whole country. The association relay all information of our product to all the members, which is the very short way to reach near the all-marketing organizations.
• Communications throw Internet � Internet is the best media to search the business all over the world and fast media in communication. Threw the Internet we can give our product information to the business organization immediately with in a second.
• Contact to Nepal German Chamber of Commerce � Chamber of commerce is the source of data of the business organization, for eg import, export, business sources, business opportunity etc. From where we can get the most of the information. Not only that, we can put the business proposal to explore the market in Germany.
• Bilateral economic-relationships - Deutschland ist nach Indien mit einem Handelsvolumen von 263 Mio DM (1997) derwichtigste Abnehmer der nepalischen Export (1997: 225 Mio DM) und nimmt bei den nepalischen Importen mit 38 Mio DM den 8 Platz ein. Handgekn�pfte Wollteppiche, mehr als die H�lfte des nepalischen Gesamtexports, machten 1997 trotz r�ckl�ufiger Tendenz rund 94 % der deutschen Einfuhren aus Nepal aus. Hinzu kommen Bekleidung und elektronische Erzeugnisse.

2.2.2 - Risk.

• Strong Competition � To introduce the Shoe and leather market is very difficult. In Germany the import of Sport Shoes are mostly from USA, Asian Countries (for eg. China, Taiwan etc). So it is very difficult to do competition with these countries because they already had good reputation with German distributors. Not only that the supply of demand is also difficult. The productions of Sport Shoes are very less in compare with these countries. Some German company they establish their production centre in Bangladesh and they are making high quality leather goods, such as pigard.
• Time factor and cost of product � Nepal is the landlocked country. Only possible fast transportation is air (by Air cargo). By Air transport the cost of the shoe becomes very high as compare with Sea transport. That means it is very difficult to match the price with Sea cargo is very less possibilities. To send by Sea cargo, it takes long time. If the goods are not reach at declared time, that will be the great risk of order cancelled.
• Financial Condition � The demand of Shoes order will be heavy quantities. It means heavy investment. If the purchase order is cancelled by any cause for eg. Quality, time factor, pricing etc. the company will be collapsed. That is the great risk to introduced Shoe market.
• Quality Control and Design � Quality control is one of the main factors for introducing new market. In German most of the imported goods are highly qualitative. The design will be change every season. Even we are using highly technology machines, if there comes defect in quality, all the goods will be reject. And it is very difficult to change the design in every season. Because it needs high investment and cost will be increase.

2.2 - Competitors Analyse

2.3 - Organization Potential Goal

• Development new ideas � The main goal of Rishlipi and Kiran shoes is to develop new idea for the global market and for facing the competition.
• Enlarge export business � We are producing more products for internal and foreign market. The actual goal of our organization is to increase export business near future.
• Exchange marketing ideas � On the other way our goal is to exchange our ideas with other companies and countries.
• Create new market � Our product development and our ideas always involved for creating a new market.
• Market observation � Our main goal is to observe the existing market for expansion our market internationally.
• Market search � For developing the new market we always emphasis the market research directly and with different medias such as Internet, Magazines etc.
• Economic relationship with German government - Deutschland ist nach Indien mit einem Handelsvolumen von 263 Mio DM (1997) derwichtigste Abnehmer der nepalischen Export (1997: 225 Mio DM) und nimmt bei den nepalischen Importen mit 38 Mio DM den 8 Platz ein. Handgekn�pfte Wollteppiche, mehr als die H�lfte des nepalischen Gesamtexports, machten 1997 trotz r�ckl�ufiger Tendenz rund 94 % der deutschen Einfuhren aus Nepal aus. Hinzu kommen Bekleidung und elektronische Erzeugnisse.

(See Company Profile of Kiran Shoes Manufacturers and Rishilpi Development Project)

3. SWOT analysis on the basis of product

3.1 � Strong ness

1.      Good Quality         
2.      Good will of the company              
3.      Suitable design and size as per peoples want          
4.      Cheep price           
5.      Imported raw materials      
6.      High technology     
7.      Comfortable          

3.2 - Weakness

1.      Raw materials problems     
2.      Lack of machineries           
3.        Not competitive price of raw materials       
4.        Chemical combination problems     
5.      Finishing problems 
6.        Less advertisement                

3.3 - Opportunity

1.      More comfortable              
2.      Useability                          
3.      Easy supply                       
4.      Low price                          
5.      Suitable for all people        
6.      Different varieties               

3.4 - Thread

1.      Product supply risk
2.      Price fluctuation risk           
3.      Cutting risk            
4.      Temperature risk               
5.      Political risk                       

According to the SWOT analysis we have good chance to export the product Sport Shoes and Leather in Germany because of strength ness of our product have good quality, qualitative raw materials, most of the design are modern which is brought from Italy, Taiwan and Singapore.

The second important point is cheep price, which already clarify that the cost of our product are (average) very cheep compare with another countries products.

Also goodwill of the company helps the export the product. Due to the strong strangeness our company Kiran Shoes Manufacturers has strong goodwill in South East Asia.

We have so many weaknesses also. We have no product of raw materials in our country. We have to import mostly. Sometime it is very difficult to do product due to raw materials late arrival, changing of price time to time. Now days we are using two machines which are not enough to produce Sport Shoes in high quantities.

Our advertisement is less. Internet advertisement cost is very expensive. In Internet the website cost is also very expensive in Nepal.  The political situation is also great problem due to unstable government. In this situation it is very difficult to do government official work.

The problems of chemical combination and final finishing we have already 90 % solved. Even we have sometime technical problems.

We have good opportunity to export the Sport Shoes and due to strong strength ness.

4. System of goal

4.1 � Organization philosophy for selling of Sport shoes and Leather goods in German

The main goal of our organization for selling of Shoes and Leather products in German market are given as below -

�        Better quality product
�        Low price
�        New design
�        Indirect supply
�        Observing competition
�        Quick communication
�        Produkt segment
�        Markett Segment

4.2 - Marketing goal

Our marketing goal are given as below -

�        Export business increases
�        Open new market
�        Long term market
�        Development economical relation with German
�        Exchange of technique
�        Market gain

5. Strategy Profile

5.1 � Market Segmentation Strategy

We do segment our market on the basis of consumers, on the basis of product and basis on age. Basis of consumers-

�        Basis on consumers
�        Rich consumers
�        Middle consumers

Basis on Products-

�        Pure leather products
�        Leather and fabric product
�        Leather and Jute Product
�        Pure PVC and synthetic products

Basis on age-

�        Basis on sex

5.2 � Market Entry Strategy

Our market entry strategy in German market are given as below-

�        Market research and observed
�        Low price
�        Better quality
�        Attractive packing
�        Attractive offer
�        Easy supply
�        New design
�        Competition analysis
�        Follow the German rule
�        Identify the supply system

5.3 � Competitor Strategy

For facing the competition we follow the following strategy:

• Price
• Quality
• Design
• Market
• Market promotion
• Quick communication
• Developed new idea and technique
• Market observing
• Better relationship with customer and international trade association
• Find out marketing goal
• Participation in international fair

5.4 - Innovatation strategy

For facing the competition and for creating new market, we always emphasis on innovation. For this purpose we follow some strategy.  The important strategy are given as below:

• Sending designer to foreign countries for new design technique
• Follow foreign magazine
• Exchange new technology
• Develop relationship with design institute
• Observing International trade fair
• Analysis market trend
• Internet research
• Observing competitor product
  

6. Marketing mix

Concept of Marketing Mix � In modern age the process from goods production to give the satisfaction to the customer all the decision comes into Marketing Mix. Therefore the entire specification brand, design, quality gives full satisfy to the customer. Also we can reach to the customer by different media such as advertisement, promotion etc. These functions of the marketing, which can directly effect in to the sales and can control by businessman is known as Marketing Mix.

According to Dr. R.S.Davor, the policies by manufacturers to attain success in the market constitute Marketing Mix and W.J.Station, Marketing Mix is the terms that is used to describe the combination of the four inputs that constitute the core of company�s marketing system � the Product, the Price structure, the Promotion activities and the Distribution system.

The structure of P4 element

Product and Brand Policy

The important basic step of Marketing Mix is product. The businessman should know detaily consumer�s want and purchasing capacity.  In the basis of the consumer�s want and pre calculation, then he must to take decision in product line, new product, packing, branding etc.

�        Planing & Development � The consumers need, want and satisfaction are end less. The sport shoes in the market have mostly thick (high) hill, colourful and packing is very nice. So changing these characters it is possible to get market.
�        Standardization  & Grading � Standardization and grading divides the production different level according to its quality, quantity etc. Our product have standardization and in different grading. So there are possibilities to the consumers to choice according to their choice and capacity.
�        Packing � The important thing is goods must be reach near the consumers without any damage. So packing should be according to the design and attractive which helps increase the consumer�s interest in purchasing. We also do the packing in attractive design.
�        Branding � Branding helps to separate the product from another product. Our all product has branding such as Spark, Goldstar, Karate, Condor etc which help us to standardized the goods and fixed up the price. It helps to consumer to know our products. �        Supporting Product � For facing competition we always emphasis on supporting products such as leather and jute bags, leather and fabric bags, sport shoes and sandals etc.

Distribution Policy (Place)

Consumer will satisfy when they received the goods on time and right place. According to the goods nature selection of right place, storage and means of transport is important.

�        Indirect distribution

According to distribution policy for sport shoes and Leather goods for German market, the best channel is indirect distribution.

Communication Policy (Promotion)

In this competition age, promotion plays great roll in marketing. The businessman should be able to communicate with different distribution channels by different media to increase the sales. The factors of promotion are-

�        Internet

Internet is the effective part of the market promotion. The advertisement gives only information to create the interest but the Internet marketing directly effect in to the distributors interest and as well as to the consumers force to buy the goods. By Internet all the important information can show and send with in the second. So in sales promotion, Internet is the best, fast and reliable communication media. Not only that, all the business transection, agreement and necessary things can do in the short time.

• Catalogue
• Magazine
• Brochure
• Service after selling

Marketing will not complete after selling the goods. To give the satisfaction to the distribution service after selling such as guarantee, to take back of the goods if the costumers are not satisfy are essential. Due to this distributors will positively believe on the product.

Price Policy

Pricing plays great roll on the company�s economical development. When the pricing of the product will reasonable, customers take the interest to buy the goods and make continues relation in marketing. It also creates close relation with distribution channels when discount and commission are better.

�        Selling Price (Mark-up Price and FOB Price for Air and Sea)

It plays important roll in between company�s profit, income source and demand of the goods. The selling price should keep resalable that helps to increase the demand. In this case, we will give whole sole special price to the distributors. The market price will define by distributors adding all expensive, tax and profit. By this process there is no more headache for producer. But we always follows FOB Price.

�        Discount and Commission

There are so many steps in marketing of products such as distributors, agents, wholesalers and consumers who looks profit from pricing. The manufacturers must to give good commission and discount looking on the background of the distributors. That means the commission will depends on the quantity of goods order. If the order is high quantity, naturally the commission will also high.

7. Results

From this market research and analysis all the information and from practical concept we got the following results-

• To get more information about Leather and Shoes importer in Germany
• Idea development in pricing
• Idea development in designing the products
• Idea exchange in product areas
• Develop market research concept
• Develop concept in quality management
• Concept development about consumers
• Concept development about product presentation
• Website development
• Observe competition
• Visit in International trade fair
• Identification product problems

8. Recommendation

For our organization and selling for our product in German market we can follow the following recommendations and our next assignment we have to determine on the basis of this recommendation-

• Better quality product
• Price must be cheep and reasonable
• Design must be creative and attractive
• Indirect marketing is better for German market
• Need better communication policy
• Need better production technique
• Import of raw materials from Germany
• Investment more capital
• Participation in International trade fairs
• Participate in marketing seminar
• Color and culture are very necessary for German market
• Need good relationship with German government