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    EXPORT HOUSE ITS MARKETING STRATEGY, PRODUCT STRATEGY

    AND COUNTRIES THEY OPERATE9\2\2010

    E X P O R T - I M P O T P E O C U D U R E S A N D

    D O C U M E N T A T I O N

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    EXPORT HOUSE ITS MARKETING

    STRATEGY, PRODUCT STRATEGY

    AND COUNTRIES THEY OPERATE

    EXPORT- IMPOT PEOCUDURES

    AND DOCUMENTATIONEN

    PRESENTED BY-

    ASHISH KHATU. 13PRASAD OTAWKAR. 18SANKET GAIKWAD. 07

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    SR.NO

    TOPIC

    1 INTRODUCTION

    2 Leadership by Vision

    3 Organogram

    4 Products

    5 Core Strengths

    6 Operations office

    7 Sales design office newyork

    8 Operations surat knit factory

    9 Scope

    10 De Facto appointed to Aloka Europe -

    London-based

    11 About Aloka Europe

    12 Product Strategy for Export

    13 After-Sales Service

    14 Pricing Strategy for Export

    15 CONCLUSION

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    Intro

    Established in 1980, our company has emerged as a leading providerof high fashion accessories to high - end buyers across Europe, USA,Australia & Japan. What began as a merchant export firm has nowgrown into a fully integrated, self sufficient organization having a well -structured nationwide operation with 20 multipurpose units, includingsales & design offices in New York to cater to clients in the westernworld. As a house of total fashion accessories, we follow totalintegration of the entire production processes with minimaloutsourcing to assure our clients - total quality, attention to detail,value-addition and timely delivery to meet export schedules. Asveterans in this field, we keep pace with the latest trends andadvances in fashion.

    A leadership that's distinguished by its foresight and vision, a well-structured team that believes in R&D and quality and a commitment tooffer its best to the world of fashion helps us to stand head andshoulders above the rest.

    Leadership by Vision

    Established in 1980, we began as a small enterprise undertaking jobwork. We have, since gradually grown to emerge stronger as a family-owned partnership firm, under the able leadership of Mr. C.M. Agarwal& Mr. Alok Agarwal. Under their tutelage, our operations havemetamorphosed into a multi-locational, fully integrated andinternationally respected Export House that has made a name for itselfin fashion accessories.

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    Organogram

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    Products

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    Scarves

    A fascinating range of colourful and trendy scarves manufactured fromthe choicest array of material - like polyester, viscose, silk, velvet andothers.

    Wraps

    A wonderful combination of aesthetic value and functional comfort, thewraps collection by Aloka never ceases to allure the fashion conscious.

    Semi GarmentsA breathtaking collection of kurta, shrugs, capelets, ruannas among

    others in varying styles and patterns - from prints, knits, wovens,

    embroidered, etc.

    Core Strengths

    A fine balance of independentfacilities & resources, bestindustry talent, latest

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    technology, streamlined production systems and a visionaryleadership make Aloka Exports an organisation that's marked forlong-term success and leadership.

    Our Core Strengths are: Fully integrated, self-reliant multiple facilities.

    Customised product development as per customer needs.

    Better process control with integrated units.

    Continuous R & D for better product development.

    Regular Trend analysis.

    Full-fledged In house Studio Facility.

    New York Office for representing interests in western

    countries.

    Operations mumbai head office

    Our Head Office at Wadala, Mumbai enjoys a central and strategiclocation, lying close to textile and fashion sourcing centres. The HOis an integrated multi-divisional operation that houses production,sample offices and in-house studio in a common facility. It offers anelaborate line up with production department, two sampledepartments, a label tag department, two fully-equipped well-cataloged showrooms, quality control department, accounts sectionand the shipping department. In terms of equipment and machinery,all facilities at the HO enjoy self sufficiency with the latest

    infrastructure, including fully computerised systems, latest testingtools like color matching box, croaking tests, etc. and weightmachines in all departments.With a well-synchronised, experienced and professionally qualifiedteam, the HO forms the hub of core functions including:

    In-house Studio

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    Our in-house studio facility at the HO is specially designed toprovide full-service design support covering an array of key designfunctions like Graphic Design, Color separation, Design innovations,Digital textile printing and more. Our studio is a designer's dream

    come true with fully computerised design technologies, digitaltextile printing systems, plotters and an exhaustive archive of books& reference material on print, embroidery, art & design and an in-house library of sequins and beads for the designer. It is home to atalented team of international designers who enjoy completecreative & R& D freedom and excel at creating styles that make asensation in international design circles.

    Sales design office newyork

    Our Sales & Design Office at NewYork acts as an importantbusiness arm, especially when itcomes to serving the westernmarkets. Our New York office isheaded by veteran designerSusan Siegal, who overseescomplete designing and trendanalyses, based on latestinternational movements in the industry. She is also in charge oforganising and expediting sales meeting with buyers in US andother western markets.

    Operations surat knit factory

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    Strategically based in the textile town of Surat, the sprawling two-storeyed knit factory is one of the oldest and well-structured units ofthe company. While being located in the textile hub gives us anedge in terms of sourcing diverse types of yarns, knit techniques

    and structures, the factory itself is elaborately laid out with fullyautomatic machines kept in air conditioned environment. Theground floor offers mending, pressing, checking and packing facilityand a magnificent office, while the first and second floors hostmanual knitting machines (2.5 to 16 gauge) in addition to the yarnstores and linking area. To top it all, the Surat factory carries out alot of R&D activity with lots of new innovations & processdevelopment on a large scale.

    Operations alok-kalyanAs the biggest and most modern facility in our company, the 3-storeyed Aloka Kalyan unit acts as the hub for key operations covering- dyeing (yarn & fabric), screen making, printing & finishing. Thefacility is professionally designed and expertly laid out to fullystreamline and integrate the entire process, while avoidingunnecessary blockages, bottlenecks and wastage.

    The unit is modeled on lines of flexibility - in line with our policy formaintaining a fine mix of manual and machine processes so as to have

    the best of both worlds. While samples are best produced by hand,effective bulk production happens best with machinery. This is whereour Kalyan unit scores on both fronts. The unit is designed undertakesboth - hand / table printing as well as machine printing using rotary /flatbed system. Unlike others in its class, the facility offers anunmatched 14-colour printing, available only with chosen fewcompanies.

    A great work atmosphere with lavish gardens and open spacesurrounding the unit, a dedicated R&D team of seniors that'sconstantly working on process / product improvements and a fully-equipped lab fulfilling crucial needs like colour testing - make AlokaKalyan - a unit that makes us proud and helps us ensure better qualityproducts for our clients.

    - Financial and Strategic Analysis Review

    ALOKA CO., LTD. (Aloka) is engaged in the manufacturing and sale ofdiagnostic ultrasound systems, nuclear diagnostic systems,

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    osteoporosis diagnostic systems, sample testing systems andtherapeutic/surgical systems for healthcare industry. The systemsdeveloped by the company are used in the treatment ofObstetrics/Gynecology, Radiology, Surgical and Veterinary fields. It has

    presence across Japan, Western Europe, Asia and other regions. Thecompany is headquartered in Tokyo, Japan

    Global Markets Direct's Aloka Co., Ltd. - Financial and StrategicAnalysis Review is an in-depth business, strategic and financialanalysis of Aloka Co., Ltd.. The report provides a comprehensiveinsight into the company, including business structure and operations,executive biographies and key competitors. The hallmark of the reportis the detailed strategic analysis of the company. This highlights itsstrengths and weaknesses and the opportunities and threats it facesgoing forward.

    Scope Provides key company information for business intelligence

    needs.

    The company's strengths and weaknesses and areas ofdevelopment or decline are analyzed. Financial, strategic andoperational factors are considered.

    The opportunities open to the company are considered and itsgrowth potential assessed. Competitive or technological threatsare highlighted.

    The report contains critical company information - businessstructure and operations, the company history, major productsand services, key competitors, key employees and executivebiographies, different locations and important subsidiaries.

    The report provides detailed financial ratios for the past fiveyears as well as interim ratios for the last four quarters.

    Financial ratios include profitability, margins and returns, liquidityand leverage, financial position and efficiency ratios.

    Reasons to buy A quick "one-stop-shop" to understand the company.

    Enhance business/sales activities by understanding customers'businesses better.

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    Get detailed information and financial and strategic analysis oncompanies operating in your industry.

    Identify prospective partners and suppliers - with key data on

    their businesses and locations. Capitalize on competitor's weaknesses and target the market

    opportunities available to them.

    Compare your company's financial trends with those of yourpeers / competitors.

    Scout for potential acquisition targets, with detailed insight intothe companies' strategic, financial and operational performance.

    De Facto appointed to Aloka Europe - London-

    based team to promote the recently rebranded

    company

    De Facto Communications, part of the Bell Pottinger Group, has beenappointed to provide PR support to Aloka Holding Europe AG, theworlds leading pioneer of diagnostic ultrasound systems forhealthcare. Recently rebranded with the strap line Illuminate theChange, Aloka Europe already has a strong market share in all keyEuropean countries.

    Aloka has commissioned the De Facto team with raising the profile ofAloka across Europe, promoting its range of Prosound systems,specifically designed for cutting edge medical imaging in Obstetrics

    and Gynaecology, General Imaging, Cardiovascular, Surgical andEndoscopic applications in medicine.

    Aloka already has an excellent reputation throughout the healthcarecommunity and De Facto will expand upon the companys innovationsand achievements to generate further market awareness through thedelivery of news stories, Key Opinion Leader case studies and articles

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    illustrating how Alokas leading edge systems are benefitting thehealthcare industry.

    Commenting on the appointment of De Facto, Carlos Faustmann, Chief

    Operating Officer of Aloka Europe, remarked: De Facto are able toprovide us with the PR and marketing support to deliver our messageto our audiences. With their expertise and knowledge of the diagnostichealthcare market, we know De Facto will help us expand our marketreach by providing us with the targeted communications to connect toour markets

    About Aloka EuropeAloka has been the worlds leading pioneer of ultrasound systems forthe medical and health science industries for nearly 60 years.Providing solutions to the Obstetrics/Gynaecology, General Imaging,Cardiovascular, Surgical and Endoscopic Ultrasound fields through anarray of cutting edge medical imaging techniques, Aloka is dedicatedto excellence providing the systems needed to ensure the best qualityof life for patients. Its international headquarters are located in Tokyo,

    Japan, the U.S. headquarters in Wallingford, CT and its Europeanheadquarters in Zug, Switzerland.

    Product Strategy for ExportThe export firm may find a foreign market for its existing product

    without the need on any kind of redesign. Very often, some minormodifications may be necessary to capture a share of the foreignmarket.

    The modifications may be due to legal requirements, for example:product labeling regulations, weight and measures, language or maybe dictated by the local culture or climate.

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    From the export point of view, a firm's product can be divided intothree aspects:

    1. The physical product itself.

    2. The package in which the product is sold and the name.3. The service that is provided together with the product.

    1. The Physical ProductThe existing products should be exposed in the foreign market todetermine their reactions by sending samples to prospective Exportagents, Export merchant, Import agent or distributors.

    The size of the product may also be a consideration. For example,people in Asia are generally smaller, requiring smaller sizes in clothingand footwear.

    Units of measurement also vary or food products will have to comply

    with health regulations and electrical products having to meet safetyrequirements.

    Climate often affects the design requirements: The ability to withstandextreme heat, cold, dryness and humidity.

    Religion and other cultural differences may also determine whether theproduct is saleable in its present form or otherwise.

    For example: branding your IT anti-spam software product Amor whichmean "Love" in Spanish will present a different impression of your

    product selling them in Spanish speaking countries.

    Product Package and Name checklist

    The package used to enclose the product for local market may not besuitable for export. Questions to be answered should include:

    (a) Does the product need extra protection from rough handling, orclimatic extremes?

    (b) Is the product easily recognizable and appealing to the foreigncustomer?

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    (c) Does the label conform to local regulations?

    (d) Does the label clearly indicate the contents, even to persons whomay be illiterate?

    (e) Does the label need to be in a foreign language?(f) Does the logo or brand name have another, perhaps undesirablemeaning in the local language?

    (g) Does the package need to be larger or smaller than the one soldlocally? Perhaps local consumers can only afford to buy smallerquantities of it.

    (h) Have the brand name and trademark been registered in the foreigncountry?

    After-Sales ServiceMany products such as food require little or no after-sales service.

    However, machinery and equipment require a certain level of servicewhich can determine whether the customer buys the product orsomeone else's. Usually, the best way to handle after-sales service isto let the distributor provide it.

    Pricing Strategy for ExportThe price charged for the export product, should cover all the variouscosts involved in producing and marketing it. Sometime, an exportermay be satisfied with just breaking even or even incurring a loss - witha view of getting established in a new market.

    It is tempting to sell products at a price that covers only the variablecosts of each unit sold to make some contribution to the fixed costs or

    factory overhead.There is always the risk that the exporter can be accused of dumpingits products abroad and are required to payanti-dumping import duty.

    An exporter should calculate and determine all the costs involved inselling its product in the foreign market, including:

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    1. Foreign agent's commission.2. It's own required profit, and then quote a price on that basis.

    Market Research Strategies for Export

    The manufacturer should determine which foreign market to targetfirst. Malaysian firm, for example, automatically looks North of theborder such as Thailand. Therefore, exporters should always considerexporting Next Door.

    In targeting likely foreign market, the exporter should use a "Checklist"of factors. In practice, market research through the participation in atrade fair, government sponsored export mission or personal visit toforeign countries.

    Once a preliminary survey has suggested one or a few countries for

    closer investigation, the exporter should find out:1. The potential size of the market for its product2. The types of customers, competitor's products and

    their prices3. The most suitablechannels of distribution4. The best way of entering the market (agent, joint venture, etc)5. The existence of any market opportunities that would

    provide a market "niche" and "competitive edge"

    Smaller exporter may wish to reduce the costs of any market surveyby using government services available.

    Trade Commissioners stationed at embassies abroad are only toowilling to help the exporter assess the foreign market andsuggest likely distributors.

    So long as the export firm provides adequate product literature,samples and other necessary information.

    If the market research required, is beyond the scope of the Trade

    Commissioner, he will suggest the names of some suitable localmarket research firms.

    Some manufacturer may decide not to export themselves, but employatrading house or export agentto act on its behalf in seeking marketopportunities, promoting and securing orders.

    How to do Export Promotion?

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    "Promotion is the term used to describemarketing activities - to persuade potentialcustomers to buy your goods or services."

    What are the various waysto promote your products abroad?.

    The exporter must consider, if he plans to use agents or distributors tohandle his product channels of distribution, his first task will then be topromote the product and his company to them.

    The next task is to consider, whether current brochures would besuitable for use with foreign agents, distributors or buyers. Does thepromotional material needs to be translated into the local foreignlanguage to make it acceptable.

    Promotion blend, in promoting the export of its product or products,the exporter will have to decide on an appropriate blend of advertising,selling and other sales activities.

    Promotion budget, in practice the amount of money available to bespent is often an arbitrary figure set by top management, varyingaccording to its keenness to get into the export market.

    As a rule, the planned expenditure should be at a percentage ofexpected sales.

    As a guideline, the exporter could establish an initial export promotionbudget between 10% to 20% of expected sales.

    This budget could be divided in one of the following suggested ways:

    1. For consumer goods

    45% advertising

    35% selling

    10% other promotion

    2. For industrial goods

    55% selling25% advertising

    10% other promotion (including trade fairs)

    In the introduction stage of the exporter's product, emphasis must beon informing consumers, making the product easily available, andencouraging the foreign consumer to try it.

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    In the market growth stage, the firm should concentrate on promotingbrand loyalty.

    Later, in the market maturity stage, promotion can be placed on

    product differentiation - trying to make the product as unique anddifferential as possible from competitive ones.

    Sales decline stage, if and when sales begin to slip, special promotionefforts will be required.

    The type of customers - Is the promotion aim at Industrial user ormiddlemen. Advertising and samples are often the most efficient wayof persuading middlemen to try a new food product.

    Whereas, personal selling is essential in reaching wholesalers. Tradefairs and trade journals is an excellent way of reaching industrial users.

    Looking for sales leads, there should be some systematic way e.g.advertising in trade journals, direct mail to prospective buyers,participation in trade shows, etc., or aware of buyer's guides and tradedirectories for source of prospective agents, buyers, etc.

    Finally, in the area of export promotion, you should consider asystematic way to keep track of the company's promotional activitiesin that foreign market, customers, other contacts made and decidehow often to follow-up and visit to the foreign market to developpersonal contacts.

    Conclusion, an analysis of the promotion blend should help theexporter decide in spreading its promotional effort in an optimumcombination of advertising, selling, and other promotional activitiessuch as credit, product warranties, training, special introductory offers,samples, contests, displays, sales aids and after-sales service etc.