Executive Summary:_________________________________

Jute is a versatile, natural fiber that has been used for thousands of years to make things such as rope, twine, hessian bags, rugs, and much more. While it is still being used extensively around the world, it is not as popular as it could have been. Given the increasing focus on environmental issues these days, jute good products can be put into the lime light, as they are environment friendly. Taking in view the prospects, this is the high time to promote the export of the jutediversified products using limited resources. Although Bangladesh is famous for jute and allied fibers, garments industries swept in and have developed due to relative advantage and cheap labor cost. As there is the Multi fiber concept of merger jute with other natural and synthetic fibers, jute has bright future for using them in the various textile areas. It needs wide support for production and marketing of such diversified products. As a result, the Govt. of Bangladesh initiated policy programmed for the production of diversified jute goods through private sector. The government’s new jute policy is expected to focus on enhancement of the country’s production capacity, diversification of the product base and growth of export earnings. It would be good if it were complemented with good corporate governance practices within the remaining BJMC (Bangladesh Jute Mills Corporation) mills to ensure that both public and private mills can compete on equal footing. In France, there are many types of products in terms of Cloths, Bags, Wallets, Purses, Mats, Rugs, Carpets, Decoration Pieces, Gifts & Crafts, Sacks, Hessian Cloths, and Burlap Bags in today’s market. As variety in such products is accepted there, we sense the opportunity to create a niche market here for biodegradable jute products, which will not only be eco friendly but also be less costly.

Origin of the Project
This project titled Marketing Jute Products in France is prepared as the project paper for the International Marketing (MKT 382) course to fulfill a partial course requirement. This report has a formal approval of Mr. Syed Kamrul Islam, Senior Lecturer, School of Business, North South University.

Objective of the Project
The main objectives of the project would be: o Identifying the target market o Understanding the taste and preferences of the target market o Identify the major competitors and try to get a competitive edge over the competitors.

This report has emphasized mostly on the international marketing strategy planning. A complete business plan along with detailed financial analysis is not covered in this report.
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o Comprehensive national and global jute market stats may not be available o No past market research on jute products usage in France is easily available o Plenty of time is required to perform adequate research on entering a new country, which is not available. o At times we may need to use logical estimations or projection about the market which may not be accurate.

First we will collect secondary data using these sources o Journals and periodicals o Books o Internet Then we will collect primary data by interviewing experts in Bangladesh jute industry. Finally we will be putting these all together and analyze everything.

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Company Overview:_________________________________
Heritage Jute Products Ltd. is a public limited company. It came into being in the year 2003. Initially, it conducted its operation within the country of its origin, Bangladesh. Later on in 2007, it expanded its activity by involving in international business through exporting. Heritage Jute Products Ltd. Company’s only job is to deal with the golden fiber of Bangladesh that is jute. It is a trading company, which deals with almost every possible variety of jute products. The company offers raw jute as well as various customized jute products. Jute can be utilized in producing several objects that are capable of using in different phases of life. There is virtually no end of it. Jute can even be used in decorating the interior of a luxury car. Basically Heritage Jute Products Ltd. plays the role of an intermediary to transfer the jute from the producers to the ultimate users of it. It makes our job even harder. At the same time, we need to satisfy both the parties. Given that, our tone of negotiation is completely different for both the parties. As, we need to make people understand in their own language. We give our best efforts in maintaining a healthy relationship with our clients who remain in two different directions. Besides, we keep on searching for innovators who are producing newer items from jute.

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Our Offerings:______________________________________
Heritage Jute Products Ltd. Company offers various Jute Products at unbeatable quality & price. The traditional excellence of Company artisans are reflected in a wide range of jute handicrafts of utility, decoration, and novelty. A beautiful mosaic of Jute handicrafts that comprises of carpets & floor coverings, wall coverings & window dressings, table mats & table-wares, swings, hammocks, office bags, table covers, table mats, pen and pencil stand, wall hangings & room decor, bedspreads & bedroom slippers, blankets & shawls, skirts & jackets, shopping & travel bags and a host of other home textile made-ups.

4 Marketing Jute Products In France

The jute handicrafts of Bangladesh are a unique blend of aesthetic sense and utility. Artisans have experimented with the fiber. Jute Yarn, Cloths, Bags, Wallets, Purses, Mats, Rugs, Carpets, Decoration Pieces, Gifts & Crafts, Sacks, Hessian Cloths, Burlap Bags, Ropes/Twine etc. made of high quality Jute are offered by Heritage exclusively. Since jute is very much environment or eco friendly, products made of jute are becoming the most popular home appliance around the world for everyday use.

Product Market:_____________________________________
The Product Outline
The basic feature of that product will be that it will come only from natural fibers. There will be no artificial and chemical plastic or synthetic raw materials. The raw materials of the products will be the fresh natural fibers and they will be collected mainly from various places (Dinajpur, Rajshahi, Barisal, Shylet etc) of the country. The company already has contract with some mills for preserving fibers and there will be quality assurance teams to look after them. Raw Jute will be preserved naturally and will be free from the chemical. As we are mainly concentrating on the natural aspects, the mission statement of our product is “Use natural products to save the nature.”
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Product Life Cycle
Despite of being a vintage business, the Jute Industry is yet to mature in our country. Our company is in its growing stage and to explore the market we are now planning to go to France. Jute products have a good market, domestic as well as in foreign countries like USA, UK, Germany, Australia, and the Middle East. The products in demand include jute shopping bags, blankets, apparels, handicrafts, wall hangings, and floor coverings. While new markets are under exploration through consumer awareness and product promotion programs, it will not be surprising to find this natural fiber become a material for regular use by consumers all over the world. Although Heritage Jute Products Ltd. has been exporting jute products to many European countries, it has never export any products to France. Recently it has taken steps to export jute made products in that country. For this, it has set up an ongoing campaign to create attention of its product.

Market Feasibility in France
In France, there are many types of products in terms of Cloths, Bags, Wallets, Purses, Mats, Rugs, Carpets, Decoration Pieces, Gifts & Crafts, Sacks, Hessian Cloths, and Burlap Bags in today’s market. However, not all these companies come from natural aspects. Therefore, we have sought out this market as a niche market and have chosen to launch a fresh product, which will not only be eco friendly but also be less costly. Customers, being more health conscious; now want to take something comes directly from nature. Consequently, many French are shifting their taste over the trend. All these have influenced us enough to make a step in this ground. The Heritage Jute Company along with its client French companies surveyed different people from the different areas, age groups and came to know that now they want something new and refreshing. Keeping this in view, we have chosen something innovative by adding some new and refreshing jute products in the market.
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Customers, mainly children and old person face skin cancer problem for using low quality artificial and plastic products. On the other hand, patients suffering from various diseases also seek for the natural fiber made products for their health. So far, we can say that our product will be the first priority, as it is made from the fresh natural fibers and the products will have no side effects, as we are not using any artificial color or objects. Therefore, the market growth for this particular product is reasonable.

History and Culture:_________________________________
France is an independent nation in Western Europe and the center of a large overseas administration. It is the third-largest European nation (after Russia and Ukraine). In ancient times, France was part of the Celtic territory known as Gaul or Gallia. Its present name is derived from the Latin Francia, meaning "country of the Franks," a Germanic people who conquered the area during the 5th century, at the time of the fall of the Western Roman Empire. It became a separate country in the 9th century. Since the 17th century, France has played a major role in European and world events. In the 20th
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century, it has experienced numerous crises, including the devastation of two world wars, political and social upheavals, and the loss of a large empire in Indochina, Algeria, and West and Equatorial Africa. It has, however, survived and emerged from the ruins of World War II to become an important world supplier of agricultural and industrial products and a major partner in the EUROPEAN COMMUNITY (EC, or Common Market).

Today, the term metropolitan France refers to the mainland departments and CORSICA, a large island located in the Mediterranean Sea off the coast of Italy that has been a part of France since 1768. France has six overseas departments: FRENCH GUIANA in South America; GUADELOUPE and MARTINIQUE in the West Indies; MAYOTTE, an island formerly part of the Comoros, located in the Indian Ocean; REUNION, an island in the Indian Ocean; and SAINT PIERRE AND MIQUELON, islands off the east coast of Canada. In addition, France has numerous small possessions called overseas territories. These include a group of widely scattered islands in the South Pacific, which are administered from Tahiti and are known collectively as FRENCH POLYNESIA; FRENCH SOUTHERN AND ANTARCTIC TERRITORIES; NEW CALEDONIA and WALLIS AND FUTUNA ISLANDS; and many small islands in the southern oceans, including the Kerguelen and Crozet archipelagos and the islands of St. Paul and Amsterdam (Indian Ocean). The overseas departments and territories are represented in the French National Assembly.

Facts and Statistics:__________________________________
Western Europe, bordering Andorra 56.6 km, Belgium 620 km, Germany 451 km, Italy 488 km, Luxembourg 73 km, Monaco 4.4 km, Spain 623 km, Switzerland 573 km


Generally cool winters and mild summers, but mild winters and hot summers along the Mediterranean; occasional strong, cold, dry, north-to-northwesterly wind known as mistral
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60,424,213 (July 2004 EST.)

Ethnic Make-up
Celtic and Latin with Teutonic, Slavic, North African, Indochinese, Basque minorities

Roman Catholic 83%-88%, Protestant 2%, Jewish 1%, Muslim 5%-10%, unaffiliated 4%


$2.086 trillion

Per capita

Culture of France
Paris is a city for art of every form, and has hundreds of art boutiques, art and antique dealers, art galleries, special art exhibits, the symphony, the ballet, cinema and the theatre. Therefore, French people posses a very artistic mind. They love to decorate their house with colorful cloths and carpets. By using jute, we can make such attractive and beautiful product, which has a big
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demand in France.

Business Culture
To export jute product in France we need to know their business cultures. If we can understand their business culture then it will help us to build a satisfactory long-term relationship.

French Society & Culture Cuisine
  Food is one of the great passions of the French people. French cooking is highly refined and involves careful preparation, attention to detail, and the use of fresh ingredients.  It varies by region and is heavily influenced by what is grown locally.

French Family Values

The family is the social adhesive of the country and each member has certain duties and responsibilities.

 

The extended family provides both emotional and financial support. Despite their reputation as romantics, the French have a practical approach towards marriage.

Families have few children, but parents take their role as guardians and providers very seriously.

Relationships - Public vs. Private  The French are private people and have different rules of behavior for people within their
social circle and those who are not.

and family that they are free to be themselves.

 Friendship brings with it a set of roles and responsibilities, including being available
should you be needed. Friendship involves frequent, if not daily, contact.

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 Although the French are generally polite in all dealings, it is only with their close friends

Business Meetings Etiquette
  Appointments are necessary and should be made at least 2 weeks in advance. Appointments may be made in writing or by telephone and, depending upon the level of the person you are meeting, are often handled by the secretary.  Schedule meetings during July or August should not be made, as this is a common vacation period.    If you expect to be delayed, telephone immediately and offer an explanation. Meetings are to discuss issues, not to make decisions. Avoid exaggerated claims, as the French do not appreciate hyperbole.

Business Negotiation
    French business emphasizes courtesy and a fair degree of formality. Wait to be told where to sit. Maintain direct eye contact while speaking. Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to protocol.     Avoid confrontational behavior or high-pressure tactics. It can be counterproductive. The French will carefully analyze every detail of a proposal, regardless of how minute. Business is hierarchical. Decisions are generally made at the top of the company. The French are often impressed with good debating skills that demonstrate an intellectual grasp of the situation and all the ramifications.
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Never attempt to be overly friendly. The French generally compartmentalize their business and personal lives.

 

Discussions may be heated and intense. High-pressure sales tactics should be avoided. The French are more receptive to a lowkey, logical presentation that explains the advantages of a proposal in full.

When an agreement is reached, the French may insist it be formalized in an extremely comprehensive, precisely worded contract

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The Market:________________________________________
Marketing Mix
Market Segmentation
While preparing the marketing mix for jute products, first of all, we definitely want to segment the market properly. Here we have done the segmentation based on these criteria:

o o Day-to-day use Occasional use

o o o Urban Suburban Rural

o o Age Income level

Usage-based Segmentation:
Products such as clothes, shoes, bags etc are used daily. Some products such as handicrafts, showpieces, and room decoration items are used occasionally. Therefore based on this usage type or pattern, we focused on usage-based segmentation. Geographic Segmentation: This is a pretty straight forward one. Based on where our potential customers live or purchase,
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this segmentation identifies three types of places: Urban, sub-urban, and rural. Demographic Segmentation: While doing the segmentation analysis, this demographic segmentation got maximum emphasis. This is simply because buyers’ demography directly relates to the marketing strategy to be followed. Among various demographic criteria, we choose to focus on age and income level of the buyers.

Target Market
In a glance, this is our target market:

Heritage Jutes’ Target market o The upper class, the upper-middle and the middle class people o Aging between 25- 50 o Living in the urban and suburban areas

o The upper class, the upper-middle and the middle class people When we talk about the jute products, it is not always the cheapest one actually. Even in Bangladesh if we observe the market price of jute products and alternative products of the same category, we would see that jute products’ price are not significantly cheap, rather it is at times even higher. Therefore, when we consider export logistics cost, and promotional cost in a foreign market, all these costs add up pretty high and we therefore cannot really position it as a ‘cheap’ product. Therefore, our primary target market will be people of solvent income category, that is, the upper class, the upper-middle, and the middle class income people. o People aged between 25 - 50 The age group we would be targeting is people aged 25 to 50 years. Reason is obvious – people of this age group are generally the purchase decision-makers in households. In addition, we would try to emphasize attracting women buyers, as generally they are more willing to spend on home decoration and furnishing items. o Living in the urban and suburban areas Initially we would focus on launching in urban areas and gradually moving to suburban areas. Therefore, based on our reach, we target buyers of urban and suburban areas.
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Product Positioning
Market positioning will play the big role in determining the product’s success. We have this basic plan to position jute products in France:

Appeal to buyers’ LOGICAL mind


With eye-catchy design

o Ger ‘More-for-less’

Appeal to buyers’ EMOTIONAL mind


Use of bio-degradable product to save environment

o Appeal to buyers’ logical mind: First of anything we need to give buyers a good reason why they may buy products made of jute when alternatives are easily available. We appeal to them logically saying that jute products are equally well designed and good to eyes (compared to the alternatives produced using artificial raw materials) if not better. As these products are environmentally friendly, buyers are actually getting more value paying less (or same). o Appeal to buyers’ emotional mind: We want to place the product in the buyers’ emotional mind by stating boldly that they are actually being environmentally responsible when they are using jute-made products. As Europeans are more willing to use eco-friendly products, applying this strategy successfully will ensure a big edge for us over competitors.
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Communication & Distribution strategy
o Push marketing As a new firm with limited budget in the international arena, we plan to go with Push Marketing strategy for initial years. The reason is as following: Internationally jute is growing popular day-by-day, but it still is not a very familiar name in French market. If we go for pull strategy, that is to create demand from the consumers’ end directly, we will require huge investments to first familiarize the product and then promote it. So we want to attract the channel members first to push the products through. o Indirect marketing channel As we are going with Push marketing, we definitely have to go through an indirect channel that is from us [manufacturer and importer] to importer/agency, distributor/wholesaler, and retailer.




o Trade shows For promotion of jute products, we plan to participate all major trade shows, trade fairs and similar events in France. This is because in these events we find more businesspeople who are looking for lucrative business opportunities whom we want to attract to promote our products. o Traditional ads As we grow gradually, we would aim to target consumers directly using traditional ads and media.
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Competitive Analysis:________________________________
Competitors within the industry
In jute product market in France, we have to compete with firms of other major jute-producer countries.

Compete with firms of
      India China Myanmar Nepal Thailand Vietnam

Indian firms are particularly dominant here in French market. Majority of the market share is captured by big Indian jute-diversified-product firms. In addition, there is competition from newcomer firms in the industry that is from Vietnam, Thailand etc. countries.

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Competition from alternative and substitute products
o Competition from alternative products: As a raw material, jute has hundreds of artificial alternatives such as Rayon, Acetate, Nylon, Polyester, Olefin etc. Most of these fibers are cheap and used heavily for consumer and industrialized products. o Competition from substitute natural fibers: Apart from Jute, there are dozens of other natural fibers that is used to produce products of the same category. Some of the competing natural fibers are: cotton, flax, ramie, sisal etc.

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SWOT Analysis:____________________________________
 The strength of the industry lies in the concentration of mills predominantly in one geographical region – Bangladesh, which is climatically ideal for the cultivation of jute. Though our main competitor India is the largest producer of raw jute in the world, Bangladesh produces the best quality fiber. Therefore, our jute products have the quality, which will become very successful in France’s sophisticated, quality-conscious, high tech, and competitive market.

Another major strength of the industry lies in its adaptation and surviving capabilities. Bangladeshi jute has a history of over hundred fifty years. In this long period, it has faced various odds and overcome many hurdles. The jute culture in Bangladesh is deep rooted and most importantly, there is no dearth of cheap labor. It will make our variable cost lower and thus give an advantage in French market.

Bangladeshi jute, like Brazilian coffee has a global image in developed countries like France.

 Like other Local bag makers, we have to buy jute fabric from the domestic market at higher prices than what foreign importers pay for the same fabric from Bangladesh. As bag makers in Bangladesh do not get export incentive - a setback that makes the local industry less competitive than its rival in India, the main importer of jute fabric and our main competitor in France.
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The major weakness is in the production process. Lack of advanced technology/machines and Lack of skilled labor and skilled designers in the jute sector leads to production of inferior quality products resulting in loss of competitiveness in the French market.

Inadequate R & D facilities at both public and private levels in the Jute sector leads to absence of continuous product innovation resulting in loss of growth opportunities whiling other major competitors like India and China are far ahead from us in this issue.

Lack of awareness as a result low demand of Jute diversified products in the domestic market is been a major obstacle in internationalization.

Bangladesh Jute Research Institute (BJRI) lacks close coordination with the Ministry of Textiles & Jute as well as Jute Industries as it is under the Ministry of Agriculture. This lack of coordination creates a problem in maintaining the supply chain of certified jute seeds on which the quality of Jute fiber vis-a-vis the production of quality Jute goods depends.

To market our product we have to depend on our “Area Distributor”. So we face difficulty in changing any strategy like pricing. Our sale is also dependent on their marketing effectiveness.

One of the major weaknesses of our company is financial problem. For this problem sometimes we cannot implement all necessary toward product development also management development.

 Jute is the only globally recognized and accepted ‘green packaging product’ from Bangladesh. Use of bio degradable products like jute is encouraged not only in packaging but also in many other industrial inputs as (a) Backing cloth in carpet industry, (b) Geo jute/jute reinforced composites in civil and road construction, (c) Alternative to wood products in many domestic and industrial uses (d) Automotive industry raw material for paper industry,
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(e) Production of various interior decorative products including flooring. Researchers suggest that use of renewable non-wood based materials like jute and sisal can reduce the use of traditional materials like wood, minerals and plastics. (Leao, 1998) Like Many countries, France has taken various initiatives to popularize biodegradable green products. This has definitely increased the prospect of launching jute products.  A global initiative for banning environment-unfriendly shopping bags and declaring the year 2009 as the International Year of Natural Fibers by United Nations has fuelled demand for jute bags. According to media reports, France and Germany will ban the use of non-biodegradable polythene bags next year. Also, the US is looking for a viable alternative to polythene bags. This move is likely to increase the use of jute, products.  Moreover, research on the development of jute pulp has opened up huge potential for this natural fiber. The International Jute Study Group (IJSG), which was earlier known as the International Jute Organization (IJO), has been successful in developing jute pulp in different laboratories all over the world. Among these two are from Bangladesh, namely Bangladesh Jute Research Institute (BJRI) and Bangladesh Chemical Industries Corporation (BCIC). These two institutions can work in coordination with Centre Technique du Papier (CTP) of France for successful commercialization of the proposed jute pulp technology would open up new vistas both for the jute and paper industry.

1. In the post MFA quota free era, different types of non tariff barriers (NTBs) with far reaching impact on the work place will hamper jute exports mainly to developed countries like France. The most likely NTBs will be in the areas of (a) Environment protection, (b) Social commitment Like Many EU countries, France has developed different standards of their own for the protection of the environment. Increased public awareness of environmental impact of products has prompted the rise of a new body of labeling called Eco-labeling or environmental labeling.
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The objective of the program is to provide necessary information for environmentally conscious consumers on products that have less environmental impact. The world’s first Eco-labeling scheme was introduced in France in 1988. This program encourages manufacturing industries to be actively involved in environmental protection and pollution control by designing and developing environmentally friendly products. However, during trade negotiations Eco-labels may be used as a non-tariff barrier also. UNCTAD studies showed that Eco-label had created difficulties for some sectors of products, in particular paper and pulp, bags and accessories from developing countries. 2. France Market is sophisticated, quality-conscious, high tech and competitive which will create a challenge for Our jute products. 3. Social and labor standards are increasingly being linked to the trade issues. The most commonly used criteria to judge ethical, social and labor practices are: (I) Fair Trade Labeling (ii) Social Accountability Standard (SA-8000). The concept of fair trade was introduced to address the issue of social responsibility in the production and marketing of products. Like other countries, France has emphasized in these issues, which are going to be a major challenge for our products.

International Logistics:_______________________________
Flow of goods to the final destination
The goal of the marketing logistics of our company is to provide the targeted level of customer service at the least cost. We will use distribution centers rather than warehouses in each city. These centers will be designed to take orders, fill them efficiently, and deliver goods to the exporting companies as quickly as possible. In shipping the product to the distribution centers. we have Chosen shipping as our primary mode of transportation and for intermodal
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transportation, we will use rail and truck. It will be less costly and will provide flexibility and convenience. Besides, we will use a simple, accessible process for sharing channel information. Telephone, Internet, & sales people will link all our distribution centers up to share sales information. This will certainly help us to maintain the delicate balance of the inventory management.

The Barriers to Face
Import Tariff The French customs tariff uses the Harmonized System (HS) for the classification of goods. Customs duties are levied per 100 kilogram Duty rate The standard duty rate is 7.6 percent, although there is a reduced rate of 2.4 percent for certain goods and services like agricultural products and necessary consumer goods Trade Barriers  Due to significant tariff and quota barriers for many agricultural products, combined with a restrictive approval process for biotech products  Switzerland has a strict regulatory regime for agricultural biotechnology products.  Over the past few years, Switzerland has taken steps to remove barriers to competition in its automotive, electricity, telecommunications, and postal sectors.
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Economical barriers Although overall economic condition of France is at a better situation for international trade, but the economic condition of France has slowed down recently for unusual global recession. For example, recession results in financial loss and decrease the purchasing power of the target consumers. They may be reluctant to buy this type of goods.

Cultural threat
Culturally, French people are homesick. If the consumers maintain the attitude of using own country’s product as a personal belief of patriotism, then it will be a big threat for the company.

Bargaining power of supplier
Bargaining power of supplier may be high because of only one exclusive area distributor. More dependency on the distributor may lead to loss of some control over the marketing of our product. It may become more difficult for us to have a final say in pricing and promotion.

How these threats can be opportunities?
o o o o o Strong political lobbying power Marketing research and forecasting of economical situation Special incentives or other arrangements on the unusual situation To show respect and create value to the culture of the target consumers Precision of agreements with the distributors on the basis of mutual business lows of two countries

The cost effective way
o To setup its own sales depot in Parris as a way of direct marketing. o To engage and employ some employees from France for better adaptation with the cultural environment. o To follow mass marketing at the matured stage. o To export cheap labor in Tripura for any additional task of product differentiation.

We accept 100% T.T. (Telegraphic Transfer) or Wire Transfer/Bank Transfer through SWIFT to our bank account as payment method. We also accept any kind of L/C (Letter of Credit) or D/C (Documentary Credit). We accept small payments for samples through Western Union too.

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Payment Method

Financial Plan:_____________________________________
Break-Even Analysis

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Heritage Jute has total fixed expenses of BDT 314,500000 and their average contribution margin is BDT 6000. The fixed expenses can be covered by selling 52, 417 units of its products which would give a contribution margin of BDT 6000 per unit in a year. In terms of BDT, Heritage Jute can reach its break even just when it makes a net profit of BDT 87,362 000. If we look at the forecasted net profit for five years we see that Heritage Jute Ltd reach it’s breakeven in 2006 that is it will take heritage 3 years to reach its break even.

Projected Revenue

Heritage Jutes estimates to continue revenue growth throughout 2010-2014.

Projected Revenue

Heritage Jutes estimated profit during 2010-2014 continues to grow.

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From the above analysis we can say that it may fulfill the goal of international marketing to make exchange, provide satisfaction to the customers and earning more profit from the international market by the available opportunities in the market through geographical proximity, bilateral trade relationship between two countries, lower transportation cost, absence of effective competitors and lower pricing. But we will may face some problems like nationalistic view of French people, unsolved borders issues, and French government non-tariff barriers, etc. but we think it is wise for Heritage JDP to enter into French market, though there is some problems. But Heritage JDP may become successful through proper planning and promotional activities and this success may lead us to flourish our business in the Europe.

In the recommendation part, we can first focus on probable effective promotional activities of Heritage JDP Promotional Strategies: Heritage JDP should use promotions effectively through establishing goals, selecting appropriate strategies, and setting a budget. Some tips related to its objectives are: To gain and encourage new customers Maintaining brand image through maintaining quality of products at comparatively lower price
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Through using some combinations of push (Sales promotional effort) and pull (demand creation) strategy Promotions that cross the lines: The Core-Competitive advantage It should create competitive advantage through efficiency and superior quality of its products. It may gain efficiency by reducing unit cost with a large scale of production, gaining experience in the international marketing place and by adaptation with the latest technology, R & D strategy, and well-developed infrastructure of operation. Product Proliferation It may introduce its product lines gradually in its niche market. Pricing It can follow the expected pricing strategy that involves the use of a single well-known price for a long period. Strategic Alliances In case of Strategic Alliances Heritage JDP should follow credible long-term as well as shortterm commitments, it will maintain synergy and co-ordination with the distribution channels. It can develop co-marketing programs and co-branding programs with their retailers. It should maintain the consistent network of dealers. It may allow sales incentives occasionally to big purchasers.
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Before introducing their own sales point, it may focus on the width of distribution channels instead of length of distribution channels. Sponsorship and Event Marketing: It may promote the sales promotion in the France by sports sponsorships, festivals, fairs and event marketing.

Specialty Advertising: It may spend in advertising specialties by making calendar focused on the local culture of France just as a gift. Interactive and Internet Promotions: It may introduce its products by Internet promotions so those interested groups can get knowledge about their products e-mail for any inquiry and exercise e-commerce in the long run. It can also start telemarketing in the states of Northeast India. Loyalty Programs/Continuity Programs: It can follow the 4 mandates of loyalty programs: Identify the best customers Connect with those best customers Retain the best customers usually by rewarding them for their patronage Cultivate new “best customers” Public Relations: To build public awareness, it can communicate with local newspaper for their ad to maintain the flow of information. In addition, it can use the local language in the package of its products profiles for better understanding of local people. Other Issues: Growth Strategy: As a growth Strategy, it can focus on the geographical expansion that can broaden from French
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to other parts of France. It will focus on the following techniques: Economies of Scale by standardization and increasing sales volumes TQM Just In Time Strategy Budgeting:

It should take precaution in its budgetary policy so that it can be cost effective. At the initial stage, it may budget up to 10 lacks Bangladeshi Tk. Including all promotional costs. R & D: It will spend the effective amount in its R & D program for much proper understanding of the business environment in a better profitable way. Survival in the Competition: It will always watch the competitors in the market and to stay in better position by maintaining quality with cheaper price to gain the market share. Avoidance of Conflicts: It should be careful in avoiding conflicts with its stakeholders in the international market by mutual understanding of the interest of each group. Training: In future when it will introduce its own sale center in the niche market, then it must train its sales representatives properly so that they can understand the culture of the region and be close with the local people for promoting their products. Societal Responsibility: It must focus on maintaining the social value of customers by reflecting their dreams in designing its profiles. In this regard, it can use the creative dialogue of fulfilling the dreams of people in the society.

30 Marketing Jute Products In France

1. Czinkota, Michel R. International Marketing. Ilkka, A. Ronkainen. Ohio: Thomson, 2004. 2. Bangladesh, Export Promotion Bureau. Export Policy of Bangladesh. Dhaka. 1997. 3. Armstrong, Kotler. Principles of Marketing. 6th Edition. New Jersey: Pearson. 2002. 4. Khan Kawsar, G. (1999, July 13). Jute bag exports rise as shopping goes eco-

Correct, Retrieved December 20, 2004 from http://www.thedailystar.net/newDesign/newsdetails.php?nid=94737

31 Marketing Jute Products In France

1. Czinkota, Michel R. International Marketing. Ilkka, A. Ronkainen. Ohio: Thomson, 2004. 2. Bangladesh, Export Promotion Bureau. Export Policy of Bangladesh. Dhaka. 1997. 3. Armstrong, Kotler. Principles of Marketing. 6th Edition. New Jersey: Pearson. 2002. 4. Khan Kawsar, G. (1999, July 13). Jute bag exports rise as shopping goes eco-

Correct, Retrieved December 20, 2004 from http://www.thedailystar.net/newDesign/newsdetails.php?nid=94737

The income statement of Heritage Jutes Ltd. for the year 2009 is shown below:

(000) (000) 730,000 0 321,200 29,200 292,000 438,000 108,000 144,000 7,200 800 4,800 4,500 32,000 36,000 10,000 4,000 32,000 383,300 54,700 30,000 24,700 0

Sales Revenue Less: Cost of Goods Sold: Beginning Inventory Add: Purchase Less: Ending Inventory Total Cost of Goods Sold Gross Profit Operating Expenses: Salaries expenses Rent expenses Research and Development Packaging and recycling Electricity Bill Trade License Advertising expense Motor vehicle expense Depreciation expense- Machinery & Equipment Depreciation expense- Motor Vehicle Miscellaneous Expense Total Operating Expenses Operating Profit(EBIT) Less: Interest Earnings Before Tax Less: Tax Net Profit


(000) Current Asset: Cash Bank Accounts Receivable Inventory Prepaid Rent Total Current Asset Fixed Asset Machinery & Equipment less: Accumulated Depriciation- Machinery & Equipment Net Book value of Machinery & Equipment Motor Vehicle less: Accumulated Depriciation- Motor Vehicle Net Book value of Motor Vehicle Furniture Total Fixed Asset Total Asset 40,000 -4,000 36,000 20,000 181,000 768,700 100,000 -10,000 125,000 100,000 384,500 34,000 29,200 40,000 587,700 (000) (000) (000)

Liabilities: Acoounts Payable Dividend Payable Long term loan Total Liabilities Owner's Equity: Issued Shares Capital Add: Net Profit Total Liabilities & Owner's Equity 250,000 250,000 24,700 768,700 22,000 22,000 200,000 244,000

Accounts Title 2010





Current Asset Fixed Asset Total Asset Liabilities Total Owner’s equity Total Liabilities & Owner’s equity

587,700 630,200 732,611 802,543 898,344 181,000 167,000 153,000 139,000 125,000 768,700 797,200 885,611 941,543 1,023,344 244,000 238,000 234,000 229,000 225,000 524,700 559,200 651,611 712,543 798,344 768,700 797,200 885,611 941,543 1,023,344

Accounts Title 2010 2011 2012 2013 2014

Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Operating Income (EBIT) Less: Interest Earning before tax Less: Tax Net Income

(000) (000) (000) (000) (000) 730,000 839,500 1,022,000 1241000 1368750 (292,000) 438,000 (383,300) 54,700 (30,000) 24,700 0 24,700 (365,000) 474,500 (389,800) 84,700 (25,500) 59,200 0 59,200 (423,400) 598,600 (399,800) 198,800 (20,434) 178,366 (26,754.9) 151,611 (525600) 715,400 (450,800) 264,600 (14,550) 250,050 (37,507.5) 212,543 (559,180) 809,570 (450,800) 358,770 (7,777) 350,993 (52,648.95) 298,344

Result of operations Total Revenue Operating Profit Profit before tax Net Profit after tax Financial position at year end

(000) 730,000 54,700 24,700 24,700

(000) 839,500 84,700 59,200 59,200

(000) 1,022,000 198,800 178,366 151,611

(000) 1,241,000 264,600 250,050 212,543

(000) 1,368,750 358,770 350,993 298,344


(000) 797,200 238,000 559,200

(000) 885,611 234,000 651,611

(000) 941,543 229,000 712,543

(000) 1,023,344 225,000 798,344

Total assets Total liabilities Total Owner’s equity Financial Ratios (Percentage) Return on Asset Return on Equity Gross Profit Margin Net Profit Margin

768,700 244,000 524,700

3.21% 4.94% 60% 3.38%

7.43% 11.84% 56.52% 7.05%

17.12% 30.32% 58.57% 14.83%

22.57% 42.51% 57.65% 17.13%

29.15% 59.67% 59.15% 21.8%