Professional Documents
Culture Documents
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International Marketing
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Oron Watch Corp. – entering Nigeria
Submitted by :
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Afreen . J Khan (19)
Shabahan Meethal
Pratik Choudhary
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Tausif Khan
Submitted To:
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Prof. Quresh Moochhala
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BES’s IMSR, Mazgaon
Date: 12/10/2010
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Visit us at: www.oronwatches.com
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Acknowledgement:
but not the least, we are thankful to all friends who have been
with
us all the time, being an inspiration. And first and last thank to
my
2
Contents:
Cultural Analysis
I. Introduction
VII. Language
Economic analysis
I. Introduction
II. Population
Marketing plan
3
I. Marketing plan
V. Sources of information
efforts. We are good enough but want to be one of the bests among
watchmakers.
sportsperson.
4
• To inculcate the culture of continuous improvement.
Oron Watches: Oron is one of the best quality sports watches with
following features:
We are willing to trade with Nigeria, one of the growing economies. It has
found a large potential for the best sports people in it. And we are
(http://www.state.gov/r/pa/ei/bgn/2836.htm)
5
III. Geographical Setting:
A. Location
Source: ( www.mapsofworld.com )
borders the Gulf of Guinea, between Benin on the west and Cameroon on
square miles). The country's land mass extends from the Gulf of Guinea
in the south to the Sahel (the shore of the Sahara Desert) in the north.
6
Comparatively, Nigeria is slightly more than twice the size of California,
capital city of the Federal Republic of Nigeria, replaced the former capital
major Nigerian cities include Ibadan, Kaduna, Kano, Maid-uquri, Jos, Port
B. Climate :
highs during the wet season. Average highs and lows for Lagos are 31° C
and 23° C in January and 28° C and 23° C in June. Although average
reach as high as 44° C before the onset of the rains or drop as low as 6°
February.
7
C. Topography:
interrupted by plateaus and hills in the centre of the country. The Sokoto
Plains lie in the northwestern corner of the country, while the Borno
Plains in the northeastern corner extend as far as the Lake Chad basin.
The Lake Chad basin and the coastal areas, including the Niger River
delta and the western parts of the Sokoto region in the far northwest, are
are high plains with broad, shallow valleys dotted with numerous hills or
rise abruptly above the plains at elevations of at least 1,000 feet (300
with Cameroon, where the Cameroon Highlands rise to the highest points
in the country, Chappal Waddi (7,936 feet [2,419 metres]) in the Gotel
Mountains and Mount Dimlang (6,699 feet [2,042 metres]) in the Shebshi
Mountains.
8
IV. Social Institution:
Nigerians. There are two major family types; the nuclear family,
subordinate to males.
B. education:
Nigerian law requires compulsory education for all students between the
ages of 6 and 15. Students in primary and secondary school attend three
junior secondary, and three senior secondary school grades, but the rigid
9
School (JSS), Senior Secondary School (SSS), and higher education,
certain powers held by the states and others reserved to the federal
D. Legal system:
The legal system is based on English common law, Islamic law, and
customary law.
The Nigerian legal system has had a lot of influence from English law on
it's growth. Right now, English law forms a substantial part of Nigerian
law. However, the Nigerian legal system is somewhat complex, and has
several sub-systems.
• At the lower levels, each state (including Abuja) has it's own legal
system.
1. Nigerian legislation
2. English law
3. Customary law
11
4. Judicial precedents: the principle of law on which a judicial decision
is based.
LEGISLATION
October 1, 1954.
CUSTOMARY LAW
(http://www.motherlandnigeria.com/legal.html)
e. Social Organizations:
12
The nightclub culture is quite prevalent in Nigeria and the young
Nigerians often visit discotheques and beach parties. The urban crowd
art forms such as jazz dancing and western singing that provide them
urbanized Nigerians. NEFA film festival is one of the most popular film
great movies from across the world. There are different organizations
(http://www.mapsofworld.com/nigeria/tourism/entertainment.html)
the traditional religion of Nigeria. Islam mainly dominated the northern part of
13
Nigeria, while Christianity was prevalent in the southern part of Nigeria, among
the Yoruba and the Igbo ethnic groups. Yoruba people inhabiting in Nigeria are
mainly practitioners of Protestantism, while Igbo and the groups residing in the
culture.
Even though Islam and Christianity are the main Nigeria religions the people are
(http://www.mapsofworld.com/nigeria/culture/religion.html)
Aesthetics:
Nigerian art is an important part of Nigeria culture. Art in Nigeria has been
leather and calabash. Pottery, painting, clothe weaving and glass and
afrosoul, fuji, afrobeat, juju, apala, gospel, sakara, reggae, jazz, hip hop
and a lot more. The most musical important instruments are percussion
14
and string instruments. Art in Nigeria includes the Nigerian literature.
(http://www.mapsofworld.com/nigeria/culture/art.html)
(http://www.mapsofworld.com/nigeria/culture/music.html)
The name Nigeria is taken from the Niger River, which plays an important part in
Nigerian lives.
People of the northern region (mostly Muslim, whose beliefs prohibit eating pork)
have diets based on beans, sorghum (a type of grain), and brown rice. The Hausa
people of this region also like to eat meat in the form of tsere or suya (kebabs,
which are chunks of roasted, skewered meat). Muslims love to drink tea, making
The people from the eastern part of Nigeria, mostly Igbo/Ibo, eat gari (cassava
powder) dumplings, pumpkins, and yams. Yams are usually eaten in place of
potatoes and are an important part of the Nigerian diet. However, African yams
are different than Western yams. They are pale, barely sweet, and are not
15
commonly found in United States supermarkets.
(http://www.foodbycountry.com/Kazakhstan-to-South-Africa/Nigeria.html)
B. Housing:
The rate of urbanization in Nigeria has witnessed tremendous increase in the last
two
decades. Census in the early Fifties showed that there were about 56 cities in the
country
and about 10.6% of the total population lived in these cities. Given the expected
the country is enormous. According to the National Rolling Plan (NRP) the national
prevailing
Relating annual requirements for housing with the Gross Domestic Product of
N82.53 billion in 1988 and 85.82 billion estimates for 1989, and over 88 billion in
1991 as
well as per capital income of N3,000.00, financing becomes a major factor of the
16
(http://www.fig.net/pub/proceedings/nairobi/ajanlekoko-CMWS1-1.pdf)
c. Clothing:
multi-ethnic, there are lot of ethnic groups and each of them have their
traditional dress code. Clothing in Nigeria have a great variety. In the north,
people prefer their outfit based on their work. In the south, people are
Important materials for Clothing of Nigeria are lace, jacquard, adire, ankara.
Nigerians are also fond of tie and die materials. Nigerian Clothing for
Nigerian Clothes for men comprises of buba, fila, sokoto, abeti-aja and
agbada
(http://www.mapsofworld.com/nigeria/culture/clothing.html)
festivals, dances and music. There are other forms of entertainment and
17
recreation in Nigeria such as participating in games and sports activities,
watching good Nigerian movies and also taking substantial interest in the
(http://www.mapsofworld.com/nigeria/tourism/entertainment.html)
Nigerian sports, though always exercised, was noted first in the 1950s. Nigeria
had it's first appearance in the Helsinki Olympic Games in 1952, and it's first
victory in 1954, when Emmanuel Ifeanjuna won a gold medal in the high jump at
In 1962, the Nationals Sports Council was set up, and in 1971, the National Sports
(http://www.motherlandnigeria.com/sports.html)
have been in place since 1942 starting with the workmen’s compensation.
maternity and sickness. All these have been going on without a unified
(http://www.nigeriavillagesquare.com/articles/anyanate-ephraim/social-security-
policy-for-nigeria-matters-arising.html)
F. Health care:
National Health Policy.The goal of the National Health Policy is to bring about a
• promotive
• protective
• preventive
• restorative and
• rehabilitative
19
• Tertiary Health Care
(http://www.motherlaigeria.com/health.htmlndn)
VII. Language:
There are more than 500 language in Nigeria, which are spoken by
Nigeria, yet more than 50% of the people of Nigeria can not speak in it. It is
The most popular local Nigerian languages are Yoruba, Edo, Igbo, Hausa-
Fulani, Tiv, Kanuri, Ibibio. Among these the North Nigerian languages are
Kanuri, Tiv and Hausa while the languages spoken in Southern part of
Executive Summary:
Capital: Abuja
20
Area: 923,768 sq km (356,669 sq miles)
Nigeria's media scene is one of the most vibrant in Africa. State radio and TV
have near-national coverage and operate at federal and regional levels. All 36
states run their own radios, and most of them operate TV stations.
Press:
Economic Analysis:
1.Introduction:
industry accounts for almost 80% of the GDP share and above 90% of
the total exports. Outside the petroleum sector, the Nigerian economy is
22
have been made after 1990 to develop other industrial sectors.
The country ranks 151 out of 177 on the UN Development Index. During
(equalityhttp://www.economywatch.com/world_economy/nigeria/)
Population:
a. Total:
another 44% of the population under 15 years of age. There were 101
males for every 100 females in the country in 2003. According to the UN,
the annual population growth rate for 2000–2005 is 2.53%, with the
density in 2002 was 141 per sq km (364 per sq mi). Regional differences
north.
23
b.Distribution of population: Nigeria is a plural or multinational
state, with 250 ethnic or nationality groups. The most populous and
(29 percent) in the north, the Yoruba (21 percent) in the southwest,
the Igbo (18 percent) in the southeast, and the Ijaw (10 percent) in
the Niger Delta. In the year 2000, nearly 25 percent of the Nigerian
more than 100,000. Lagos, the largest city, had a population of 9.8
24
c. Economic statistics and activities:
annual rate of 1.1 percent between FY 1967 (which ended two months
before the secession of the Eastern Region) and FY 1970 (which ended
(http://countrystudies.us/nigeria/55.htm)
Ajackuta, Osara, Ekinrin Adde and ltobe; kaolin at Agbaja and iron ore
Coal was mined here during the Nigerian civil war; limestone and
marble are exploited at Jakura and iron ore at Itakpe hills. Other
columbite and tantalite at Egbe; gold at Isanlu, gems, quartz, mica and
26
(http://www.onlinenigeria.com/links/kebbiadv.asp?blurb=309)
Namoda.
(http://www.motherlandnigeria.com/transportation.html)
27
d. Communication system: Computing and
in Nigeria.
e.Working conditions:
relatively good offices and facilities, health care, and wages, but that is
not the case for most of the others. Conditions in the pre-collegiate
28
(http://www.nationsencyclopedia.com/economies/Africa/Nigeria-
WORKING-CONDITIONS.html)
29
e.Principal industries:
are traditionally farmers. The cities of Lagos, kano and Onitsha are
Authority (NEPZA.
Exports
Oil and natural gas are the most important export products for Nigerian
trade. The country exports approximately 2.327 million barrels per day,
according to the 2007 figures. In terms of total oil exports, Nigeria ranks
8th in the world. According to the 2009 figures, the country’s total export
volumes stand at US$45.43 billion. Major items of export are oil products,
30
cocoa and timber. The UK and the US are the largest trade partners for
Nigerian exports.
31
Imports
The United States is the largest foreign investor in Nigeria. The stock of
U.S. foreign direct investment (FDI) in Nigeria in 2006 was $339 million,
Chevron are the two largest U.S. corporate players in offshore oil and gas
production.
A large portion of the imports arrive from the EU, particularly the
Netherlands, the UK, France and Germany. China, the US and South
b. Exchange rates
most imports, but these duties were substantially reduced in 1986 and in
1995. The import duty varies from 5% to 60%, averaging 12%. All
lengthy. The taxation system has been widely avoided and valuations
are arbitrary.
32
c. Extent of economic activities not included in cash income
activities
d. Labor force:
• Labor force:
agriculture: 70%
industry: 10%
• Unemployment rate:
a. Inflation rates:
33
I. Development in science and technology:
( http://www.unu.edu/unupress/unupbooks/uu19ie/uu19ie0e.htm
• Nigeria has launched three satellites into space. The first satellite,
Constellation System.
I. Channels of distribution:
II.
Between 2001 and 2004 the retail sector of the Nigerian economy
34
grew by 10% per annum. By 2006 the combined contribution to gross
from traders and street vendors but city and state governments are
SilverBird Galleria
Lafayette Mall
Ceddi Plaza
Shashilga Seven
MyBlueStore
Marketing Plan:
A. Marketing objectives:
which is not been targeted before. World has now come to know the athletic
and sport potential of Nigeria. It has grown and improved in past few years
tremendously. Taking this point under the consideration, we, Oron Watches,
are going to target the potential youth. Every person interested in sports
the country), Lagos & Enugu. These are the most populous cities and of
in Nigeria.
36
B. Market penetration & coverage: the market penetration or entry
enter and expand into the Nigerian market. Our ultimate goal is to leverage
would be high quality steel. We are making water resistant, heat resistant
C. Promotion mix
market. We have dedicated 1.7 lakh INR for advertising only. Our product is
for sportive youngsters, so we are going to advertise using print media and
37
We would be advertising our watches in newspapers like” daily trust”, and
English.
product as a high quality trusted brand, we just can’t give more emphasis on
Port selection: The origin port for shipment would be Mumbai destined
ocean carriers and motor carriers. But we have chosen ocean carriers
(http://www.tradecarview.com/ship/oceancarriers.aspx)
ocean, there may be very high damage to the ship and products kept
inside.
Naturally speaking, risk factor is attached with every aspect now a days,
(http://www.susta.org/export/packingetc.html)
the box. Marks should be applied with waterproof ink to three surfaces of
into containers and moved from door-to-door without the contents being
(http://uboxworldwide.com/international-shipping/nigeria/)
4 . Documents Required:
40
1 . Bill of Lading: A bill of lading is a type of document that is used to
particular vessel on which the goods have been placed, their intended
destination, and the terms for transporting the shipment to its final
destination.
(http://www.wisegeek.com/what-is-a-bill-of-lading.htm)
shipment. Dock receipt transfers the accountability for the safe custody
of the cargo from the shipper to the carrier, and serves as the basis for
(http://www.businessdictionary.com/definition/dock-
receipt.html#ixzz11tKOFz4w)
true value of the imported goods, for assessment of duties and taxes. A
41
(1) date and terms of sale,
(http://www.businessdictionary.com/definition/commercial-
invoice.html#ixzz11tL66zDx)
and quantity of goods, their value, and other important information such
importation.
(http://www.businessdictionary.com/definition/pro-forma-
invoice.html#ixzz11tLYBc66)
filing is generally required by the U.S. Census Bureau for U.S. exports
42
that contain a single commodity's value exceeding US$2,500.00. All SED
information is provided to the U.S. Census Bureau and is used for export
(https://www.ups.com/content/us/en/shipping/international/documents/in
tl_forms/declaration.htm)
(http://www.ehow.com/facts_6850703_definition-manufacturer_s-
statement-origin.html#ixzz11tMLmvrn)
insurance come to bear either before you actually ship the item in
necessary forms (online or not) to ship it. Here are some of the most
important.
43
3 . Buy as much insurance as the item is actually worth.
6 . Making a Claim
(http://ebay.about.com/od/shippingitems/qt/ct_insurance.htm)
While the freight forwarder doesn't actually move the freight itself, it
forwarding service handles the considerable logistics of this task for the
(http://www.wisegeek.com/what-is-freight-forwarding.htm)
E . Channels of Distribution
44
various cities through road transport. Cost incurred to transport the
1. Retailers.
b) Each retail outlets will be earning 2263 Naira per watch. Other
retail chains in the city will be earning 342 Naira per watch.
wholesaler is 30 days.
wholesaler is 30 days.
3. Import/export agents.
45
We have already made a contract with Great Eastern shipping Co.
Mumbai which will be taking care our reliable agent for exporting our
product.
4. Warehouse
46
F . Price Determination:
675 approx Indian Rupees per cubic foot. So including all charges of
2. Insurance costs
3. Custom duty
As per Indian government law we are paying 20% custom duty on our
47
6. Discounts
Discounts will be given only in retail outlets and the discount strategy
As per the expected sale for the first year that us 10000 units our
8. Retail Price.
G . Terms of Sale:
(http://www.businessdictionary.com/definition/ex-
works.html#ixzz11tl69TuN)
price in any region as seller’s perception of the local price of that product
48
EX WORKS or EXW is buying based on a price quoted to a buyer without
where the manufacturer has the limited duty for producing and placing
the finished goods at his factory or warehouse, and then the buyer
(http://ezinearticles.com/?What-is-Ex-Works?&id=1866174)
FOB: A trade term requiring the seller to deliver goods on board a vessel
designated by the buyer. The seller fulfills its obligations to deliver when
When used in trade terms, the word "free" means the seller has an
(http://www.investopedia.com/terms/f/fob.asp)
Here, the buyer has to bear all the costs and risks of damage or loss to
the goods from that point. The FOB term requires the seller to clear the
goods for export. This term can be used only for sea or inland water way
transport.
(http://www.iccwbo.org/incoterms/preambles/pdf/FOB.pdf)
FAS:
49
C & F: Term of sale signifying that the price invoiced or quoted by a
seller for a shipment does not include insurance charges, but includes all
(http://www.businessdictionary.com/definition/cost-and-freight-C-
F.html#ixzz11tqnFWoy)
Seller owns goods until they are loaded on vessel; selling price includes
(http://www.lectlaw.com/def/c001.html)
frequently used term in export transactions and includes FOB price plus
cost of ocean freight and marine insurance, upto the port of destination.
In C.I.F. quotation, care must be taken to state the name of port to which
applicable all over the world, the quotation should be “CIF Main Port”. CIF
does not, however, include any charges for unloading the goods or for
(http://www.eximkey.com/copycon/disparch.asp?archid=425)
50
Methods of payment
As we are entering the market for the first time we have adopted
Marketing Budget
channel) and also through various FM radio channels. As we are entering the
market for the first time various sales promotion activities are also done
along with the sale of the product. So total expense incurred for advertising
Distribution expense
entire distributing charges would be born by the wholesaler itself. There are
outlets.
Product cost
51
machine
sheets
(contract )
Square Box)
Production 50,000
watches(weight is 90
Total 1,54,90,000
Other cost
Our vision is to provide a time piece to every person who wants to play. We are
provide more credibility, trust and access to Oron watches we need to make our
own official website. Oron is taking care of its customers in both the market
Other cost also include maintenance cost which cost Rs-12, 00,751
52
Profit and loss account for first year i.e., 2010-11
30000000
To gross loss c/d
42000000 42000000
18000000
By Gross profit c/d
60000000
6000000
0
53
III. Resources requirements:
1. Finances: We, Oron watch Corporation has got budget of 5 crore INR.
A. The major portion of total amount i.e. approximately 4.2 crore INR is
stores.
B. The second big portion is for the events and promotions of the brand.
We have apportioned 50 lakh INR for mega sport events in Abuja &
Lagos.
Lagos and Enugu. Each outlet will have 1 store manager, 2 technicians
excellence. They all will be well trained and equipped with best selling
skills.
now. We hope, it will increase with time and our progress. We are
54
hopeful we would be able to win the trust of our customers and print our
company with the fortune of 5 crorore INR only. Our expertise lies in our
studied the entire global market. And we came to know that on one end,
much demand. To make our concept more clear we did a SWOT analysis
of it;
55
SWOT Analysis:-
Strengths: We can say that there is lots of demand available for the
the market and it makes you too standardize your product up to that
bench mark.
every sector and product. There is lots of scope for innovation and
Threat: the only threat of the international market is its diverse nature.
56
Oil-rich Nigeria, long hobbled by political instability, corruption,
Since 2008 the government has begun showing the political will to
modeled on the IMF's Poverty Reduction and Growth Facility for fiscal
exchange for $12 billion in payments - a total package worth $30 billion
of Nigeria's total $37 billion external debt. The deal requires Nigeria to
exports and high global crude prices, GDP rose strongly in 2007 and
57
continue the economic reforms of his predecessor with emphasis on
• (http://gadgetophilia.com/top-10-sports-watch/)
58
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• http://gadgetophilia.com/top-10-sports-watch/
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F.html#ixzz11tqnFWoy
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works.html#ixzz11tl69TuN
59
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statement-origin.html#ixzz11tMLmvrn
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s/intl_forms/declaration.htm
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invoice.html#ixzz11tLYBc66
http://www.businessdictionary.com/definition/commercial-
invoice.html#ixzz11tL66zDx
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receipt.html#ixzz11tKOFz4w
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60
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WORKING-CONDITIONS.html
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http://countrystudies.us/nigeria/55.htm
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html
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61
• www.mapsworld.com
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