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lexi pens international business


Internati onal Marketin g Africa

Rahul Avasthy For Lexi Pens Pv

VisionTo be a global leader in business of writing instruments by 2020 - heightened sensitivity to consumer needs and aspirations, setting new standards in quality products and capitalizing on new business opportunities in our Industry.

Global pens/markers market is estimated at USD 12.3 billion China has amarketshare of 10 per cent * approx globalwriting instrumentsindustry China exports Rs 5,000 crore * worth pens every year, India barely exports pens worth Rs 200 crore * Entry of Reynolds through GM Pens India in 1990 1500 cr growing at the rate of slightly above the GDP Organized sector accounts for more than 60 per cent., Gel pens in India estimated Market size 350 cr Ink marketwhere the unorganized sector has largely been wiped out Major players : Chelpark, Camel and Parker Terms of quality of pens, India ranks amongst the best in the world, well ahead of even China.* Figure as of Dec

Profit Margins Advertisement spend Luxor plans to have an outlay of between 15 per cent to 20 per cent of sales. Linc's ad-spend is about eight per cent of its sales turnover and this year would see a shift in marketing to more above-the-line activity

Objective Enhance customer base Increase market penetration Evoke market potential Strengthen product promotion

Large continent, 53 countries Buy in bulk from 6/10 have cell suppliers retail selling in their phone own countries Internet is not very widely used.

Increase in the number of educational institutions as well as commercial organizations -> Demand for stationery products has registered a two-fold increase in most East African countries

Many nongovernment organizations and UN offices operating from within Africa, greater emphasis on education and vocational training, demand for stationery and related products

27% increase stationary Cash The liberalization of Customers the Kenyan Repeat economy orders Average South African household income R5 633,51 per month 2007


Environmental influences on international marketingLegal



Econom ic

Technologic al

Africa - Socio/Cultural Region : World's second-largest and second most populouscontinent, 61 territories, 53 countries Population : Over a billion : 14.8% of theWorld'shumanpopulation Some states with more than half of the population under 25 years of age Climate : tropical to subarctic on its highest peak Language : 4 major language, English & French Sports : Football & Cricket Religion : Islam, Christianity, Hindu Afropolitan ; Black Proud ;

Africa - Economic Economy World's poorest and most Underdeveloped continent Rate of economic growth increased averaging 5% since 2005 Human rights violations, Lack of central planning, high levels of illiteracy, Liberalization Lack of access to foreign capital, Rich in Natural resources Bottom 25 ranked nations (151st to 175th) were all Africa Chinese companies invested a total of US$1 billion in Africa

Per Capita Income South Africa $10,270 Central African Republic $1,080 Sub-Saharan Africa $1,770 Middle east&North Africa $5,700 *South Africa, Tanzania, Tunisia, Algeria, Kenya, Internet Morocco, Egypt, 36 countries active capitals Mauritius, Zambia, 11 countries active online Ghana 43 countries reach

CompetitionDubai Already developed extensive network of retailers Geographical proximity to the East African coast ,low freight Well developed warehousing and stocking facility and, of course, a reputation for reliability - Low import duties and direct supplies form manufacturers in the Far East and China -

- Excellent shipping connections - UAEs trade with Africa has more than doubled in the past two years. - Jebel Ali Free Zone - of Rwanda, Congo and Tanzania Low prices, easy availability.



Lexi Pens : Quality for a good price Affordability and ease of writing

Entry barriers Cartels on transport prices Low transport quality (breakages) across country borders New players(Transport) not entering the market Customs regulations Market access restrictions Restrictions through freight sharing schemes Corruption Restrictive practices, such as air transport agreements Supplier agreement Freight Sharing Schemes Queuing system for delayed transport

BTL Activities School Lexi play programs Direct Mail Consumer Competitions Promotions Sponsorships In-Store Displays Brochures Trade Marketing Public Relations

Sales aids and presentations Promotional gifts and corporate clothing Loyalty programs Interactive devices; scratch cards, mystery discounts, keys etc. 'product amplifier'. B2B Corporate Segment For gift and customizedwritinginstrumen

Critical Success FactorsVisible commitment from senior company management and the board of directors. Initial launch and communication campaign of the products. Ongoing and appropriate awareness and marketing initiatives. Conformity to delivery time (10 Days) Commitment to follow up and investigate tip-off reports as well as to conduct appropriate follow up and corrective action. Quality of the product Balance between conformity and creativity

Winning Strategy

Linear model of the negotiation process for African ContinentNon-task sounding

Task-related exchange of information Persuasion

Concession and agreement

Tariff/Non Tariff Barriers Non-tariff barriers exists in spite of liberalized economy in few countries Tariff information - (SAFTO), Import tariffs?South Africas import tariffs range from 0-45% Import surcharges are assessed on the customs value Import permit is required Certificate of Origin required to export product Customs and entry procedures Basic documents required for shipments to South Africa include: 1) A commercial invoice which shows the price charged to the importer in addition to the cost of placing goods on board ship for export; 2) Bill of Lading; 3) insurance documents; and 4) Packing list. An agent is highly recommended, but not required

Stakeholders of Lexi pensHome country Shareholders government Expatriate staff Individual Suppliers politicians and civil servants Distributors Host country & retailers government Local workers Customers and their organisations Local Pressure competitors Competitorgroups MNEs

Social Media in Africa Mobile Penetration : The average is 30.4% and there are 280 million subscribers in total. Afrigator(a South African aggregator of African blogs and news) Zoopy(a YouTube/Flickr like service also out of South Africa) Ushahidi(an SMS crisis reporting and mapping engine from Kenya) Muti.co.za(a Digg-like South African news site) Sokwanele.com(an SMS/mapping application similar to Ushahidi) Amatomou(a South African news and social media aggregator) BlogSpirit(a Ugandan blog aggregator based on the open source Gregarious) Mzalendo(portal for tracking the actions of Kenya's Parliament)

Outdoor: 25 capital cities, 300+ sites Outdoor: 200 banner boys, kiosks Credit card loyalty Bonus pens On Ground - Coffee shops discounted coupons exclusive pens Signature Analysis Kiosks Frequent flyer Mileage points premium pens Youtube Virals Online Promotions Orkut, Facebook Radio Promotions ON Air Promotions Kids show, News channels

Thank You


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