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A

SUMMER PROJECT REPORT


ON

A STUDY OF VARIOUS INTERNATIONAL MARKETING TOOLS USED
BY EXPORTERS AND EXPLORING MARKET POTENTIAL IN
GERMANY

For
ECONOMIC TRADE (GUJARAT) PVT. LTD.

Submitted to
Marwadi Education Foundations Group of Institution
Faculty of Management, Rajkot.

In partial fulfilment of the requirement of the award for the degree of
Master of Business Administration

Affiliated With
Gujarat Technological University

Under the guidance of
Faculty Guide: Company Guide
Prof. Anupama Dave Mr. Khushru Dossabhoy
Assistant Professor General Manager

Submitted by
Jasmeen Changani
Enrollment Number: 138280592021
MBA SEM III















































































DECLARATION

I Jasmeen Changani hereby declare that the proj ect report on A study of
various international marketing tools used by exporters and exploring market
potential in Germany for partial fulfillment of the requirement of degree of
Master of Business Administration (MBA) is my original work carri ed out
duri ng 6
t h
June, 2014 to 21
t h
Jul y, 2014 and not submitted for the award
of any other degree, Diploma, Fellowship or other similar title or prizes.







Place: Rajkot

Date: Jasmeen Changani


















PREFACE

A man without practical knowledge is just like a rough diamond. To shine like a
real diamond one must have practical exposure of what he has learnt. For the
management students, theoretical knowledge is just like lock without key, so
practical knowledge is of utmost importance.

It is quite true that world outside your cozy home is many times quite different
from what you have perceived. Similarly it is possible that theoretical knowledge
acquired in the classroom may differ from the practical knowledge.

As a curriculum part of M.B.A. course, the candidate is required to undertake a
Summer Internship Programmed and for the same purpose I have acquired my
training at Economic Traders (Gujarat) Pvt. Ltd. Rajkot.

I have chosen the topic of A study of various international marketing tools used
by exporters and exploring market potential in Germany with the help of data
provided to me at my training time.

It is my pleasure to present this project after completion of Training. This project
has expanded my horizon of knowledge in practical as well as theoretical, which
is vital for student in management level studies. Only the basic understanding
of the principles of management is not sufficient but their application is also
equally important.












ACKNOWLEDGEMENT

The PROJECT TRAINING REPORT is one step ahead towards attaining my
MBA degree successfully. I owe to a lot of people who have genuinely guided
my efforts in the right direction and made it a successful endeavor. I would like
to extend my heartfelt gratitude to all those people who have helped me in
preparation & presentation of this project, guiding me towards the achievement
of its purpose.

First and foremost, I would like to thank Mr. Saurin Vora, who is the director of
Economic Traders (Gujarat) Pvt. Ltd. Rajkot, for giving me an opportunity to
conduct study in his esteemed organization and for giving most valuable
knowledge, to utilize in study.

It gives me great pleasure and privilege to acknowledge to Dr. S. C. Reddy,
Dean, Faculty of Management, Marwadi Education Foundation Group of
Institutions, Rajkot and Prof. Anupama Dave (Assistant Professor, MEFGI), and
project guide for their support and thanks to all my faculty members.

I am also thankful to Mr. Khushru Dossabhoy and all the team member of the
company who gave me fundamental knowledge of the work and for guiding me
in project work.
I am also thankful to friends, Mr. Abdul Hadi, Mr. Jimish Lotia, Mr. Aakash
Parekh, Mr. Chintan Raiyani and Mr. Wahiddulla Gharanai, who helped a much
in this project report. And all Industrialist people who helped me to make my
survey done. I am very thankful to their great responses. I wish, my work also
help them for better decisions.

Thank You

Jasmeen Changani




Executive Summery

Economic Traders (Gujarat) Pvt. Limited is a company incorporated in 1972.
The company is a 100% export oriented unit and one of the leading One
Star export house form India, recognized by the Ministry of Commerce,
Government of India. Due to 1991 reform of trade policies, international
companies grew at rapid speed.

With reference to topic A study of various international marketing tools used
by exporters and exploring market potential in Germany, two kind of studies is
been handed, primary study as well as secondary study.

Methodology used for primary research is structured questionnaire to study
international marketing tools, the population is Gujarat region. And secondary
study is been handed for finding a market potential in various sectors of
Germany.

The report discuss the brief overview about international trade and various
international marketing tools used for by exporter. And various sectors of
Germany has been viewed for searching a potential market in Germany. As
German market has not been touched by ETGPL. And it is third largest country
by GDP.

The research is been handed for studying a various international marketing
tools and finding a market potential in various sectors of Germany for expanding
business of Economic Trade(Gujarat)Pvt. Ltd.

Index
Sr. no Particulars Page no.

1 Industry overview 10
1.1 International Trade 11
1.2 History, Growth and Development 13
1.3 Parties involvement in international trade 16
1.4 Importer Exporter code number 17
1.5 Director general of foreign trade 19
1.6 Term of shipment (INCOTERMS) 21
1.7 Modes of payments 23
1.8 Financial risk in international trade 26
1.9 Receiving payment 27
1.10 Schemes 29


2 Company Overview 33
2.1 History, growth and development 34
2.2 Company profile 36
2.3 Management of company 37
2.4 Product Range 38
2.5 Infrastructure and quality assurance 38
2.6 Detailed department overview 40
2.7 SWOT Analysis 46


3 International Marketing Tools 49


4 Research 59
4.1 Background of Study 60
4.2 Literature Review 61
4.3 Research Problem 62
4.4 Objective of the study 62
4.5 Contribution and learning 63
9

5 Research Methodology 64
5.1 Research Design 65


6 Interpretation of Data 67


7 Study of Market Potential in Germany 82


8 Results and Findings 101


9 Suggestions and Conclusion 103


10 Limitation of the Study 105


11 Bibliography/Annexure 106











10










INDUSTRY
OVERVIEW


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1.1: International Trade

International trade is the exchange of capital, goods, and services across
international borders or territories. In most countries, such trade represents a
significant share of gross domestic product (GDP). While international trade has
been present throughout much of history, its economic, social, and political
importance has been on the rise in recent centuries.
Its common knowledge that the world is growing smaller and smaller every day
and this movement could not be more true than in the business world. While
running a small business is already a massive undertaking, the need to think
globally from the start is vital if you want your company to grow to its utmost
potential.
Agricultural trade is not an end in itself, but a means to meet demand, remedy
shortage, and enhance prosperity for farmers, processors, consumers, and the
rural economy in general.
Indian Automobile industry is flourishing its twigs worldwide and is close to a
fruition of triumph in the global competition. The spine of the industry is its
suppliers of auto components and accessories which is also an exclusive
industrial segment.
Industrialization, advanced transportation, globalization, multinational
corporations, and outsourcing are all having a major impact on the international
trade system. Increasing international trade is crucial to the continuance of
globalization. Without international trade, nations would be limited to the goods
and services produced within their own borders.
The main difference is that international trade is typically more costly than
domestic trade. The reason is that a border typically imposes additional costs
such as tariffs, time costs due to border delays and costs associated with country
differences such as language, the legal system or culture.
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A diesel engine is been traded internationally from so long. Its main market in
developing countries and underdeveloped countries. There is different kind of
mills and huller for various countries from specification to capacity. ETGPL is
dealing in the construction machinery and automobile parts from many years.
There is large international trade history of agriculture equipment and
commodities also.
ETGPL is dealing in international market since last more than three decades in
various products. It has a successful international trade in various countries and
mainly in the gulf countries.
One report in 2012 suggested that international trade was increased when a
country hosted a network of immigrants, but the trade effect was weakened when
the immigrants became assimilated into their new country
International trade is also a branch of economics, which, together with
international finance, forms the larger branch of international economics.


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1.2: History, Growth and Development
Any time you walk into a super market and pick up any stuff like a knife or a toy
and chances are that the item has been manufactured in China or assembled in
Mexico. Pick up coffee pods and you will see that they have been imported from
Africa. When you shop for clothes, it is quite likely that you will see Made In
China label.
International trade has been in vogue for centuries and all civilizations carried on
trade with other parts of the world. The need for trading exists due to the
variations in availability of resources and comparative advantage. In the present
context where technology and innovation in all fields have thrown open borders
to globalization, no country can afford to remain isolated and be self-sufficient.
International trade has a rich history starting with barter system being
replaced by Mercantilism in the 16th and 17th Centuries. The 18th Century
saw the shift towards liberalism. It was in this period that Adam Smith, the
father of Economics wrote the famous book The Wealth of Nations in 1776
where in he defined the importance of specialization in production and brought
International trade under the said scope. David Ricardo developed the
Comparative advantage principle, which stands true even today.
All these economic thoughts and principles have influenced the international
trade policies of each country. Though in the last few centuries, countries have
entered into several pacts to move towards free trade where the countries do not
impose tariffs in terms of import duties and allow trading of goods and services
to go on freely.
The 19th century beginning saw the move towards professionalism, which
petered down by end of the century. Around 1913, the countries in the west
say extensive move towards economic liberty where in quantitative restrictions
were done away with and customs duties were reduced across countries. All
currencies were freely convertible into Gold, which was the international
monetary currency of exchange.
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Establishing business anywhere and finding employment was easy and one can
say that trade was really free between countries around this period.
The First World War changed the entire course of the world trade and countries
built walls around themselves with wartime controls. Post world war, as many as
five years went into dismantling of the wartime measures and getting back trade
to normalcy. But then the economic recession in 1920 changed the balance of
world trade again and many countries saw change of 1fortunes due to fluctuation
of their currencies and depreciation creating economic pressures on various
Governments to adopt protective mechanisms by adopting to raise customs
duties and tariffs.
The need to reduce the pressures of economic conditions and ease international
trade between countries gave rise to the World Economic Conference in May
1927 organized by League of Nations where in the most important industrial
countries participated and led to drawing up of Multilateral Trade Agreement.
This was later followed with General Agreement of Tariffs and Trade (GATT) in
1947.
However, once again depression struck in 1930s disrupting the economies in all
countries leading to rise in import duties to be able to maintain favorable balance
of payments and import quotas or quantity restrictions including import
prohibitions and licensing.
Slowly the countries began to grow familiar to the fact that the old school of
thoughts were no longer going to be practical and that they had to keep reviewing
their international trade policies on continuous basis and this interns lead to all
countries agreeing to be guided by the international organizations and trade
agreements in terms of international trade.
Today the understanding of international trade and the factors influencing global
trade is much better understood. The context of global markets have been
guided by the understanding and theories developed by economists based on
Natural resources available with various countries.
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For professionals who are occupying management or leadership positions in
Organizations, understanding the background to the international trade and
economic policies becomes necessary as it forms the backdrop for the business
organizations to charter their course for growth.

International marketing is the export, franchising, joint venture or full direct
entry of a marketing organization into another country. This can be achieved by
exporting a company's product into another location, entry through a joint
venture with another firm in the target country, or foreign direct investment into
the target country. The development of the marketing mix for that country is then
required - international marketing. It can be as straightforward as using existing
marketing strategies, mix and tools for export on the one side, to a highly
complex relationship strategy including localization, local product offerings,
pricing, production and distribution with customized promotions, offers, website,
social media and leadership. Internationalization and international marketing
meets the needs of selected foreign countries where a company's value can be
exported and there is inter-firm and firm learning, optimization and efficiency in
economies of scale and scope.


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1.3: Parties Involved in International Trade



Importer:
Thus an import is any good or service brought in from one country to
another country in a legitimate fashion, typically for use in trade. It is a
good that is brought in from another country for sale. Import goods or
services are provided to domestic consumers by foreign producers. An
import in the receiving country is an export to the sending country.

Exporter:
The term export is derived from the conceptual meaning as to ship the
goods and services out of the port of a country. The seller of such goods
and services is referred to as an exporter who is based in the country of
export whereas the overseas based buyer is referred to as an importer.
In International Trade, exports refers to selling goods and services
produced in home country to other markets






Parties
Involved
Importer Exporter CHA Shipping Line Bank
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CHA:
Custom House Agent means a person licensed, temporarily or
otherwise, under the regulations made under sub-section (2) of section
146 of the Customs Act, 1962. (Section 65(22) of Finance Act, 1994 as
amended)

A person is permitted to operate as a customs house agent who
processed the paperwork for the import and export of goods into and out
of a country.

Shipping Line:

A shipping line is a business that operates ships that it may or may not
own. Shipping line means any person who owns or charters a ship and
includes an enterprise which operates or manages the business of
shipping.

Bank:
Issuing Bank: importers bank who issues the L/C.
Beneficiary: the party to whom the L/C is addressed. The seller or supplier
of goods.
Advising Bank: issuing banks branch or correspondent bank in the
exporters country to which the L/C is sent for onward transmission to the
beneficiary.
Confirming Bank: the bank in beneficiarys country which guarantees the
credit on the request of the issuing bank. (Many a times the advising bank
and confirming bank are one and the same).
Negotiation Bank: the bank to whom the beneficiary present his
documents for Payment u Under L/C.
Reimbursing Bank: the bank which will reimburse the negotiating bank for
the value of the credit.
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1.4: Importer Exporter Code Number (IEC)

The Customs Authorities will not allow the exporter to export or import goods into
or from India unless he holds a valid IEC number. Before applying for IEC
number it is necessary to open a bank account in the name of the company with
any commercial bank authorized to deal in foreign exchange. The duly signed
application form should be supported by the following documents.

Bank receipt ( in duplicate ) / Demand Draft for payment of the fees of Rs.
1000/-
Certificate from the banker of the applicant firm as per Annexure 1 to the
form given.
One copy of PAN number issued by Income Tax Authorities duty attested
by the applicant.
One copy of Passport Size photographs of the applicant duly attested by
the banker to the applicant.
Each importer/exporter shall be required to file importer/exporter profile
once with the licensing authority shall enter the information furnished in
Appendix 2 in their database so as to dispense with changes in the
information given in Appendix-2, importer/exporter shall intimate the
same to the licensing authority.

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APPLICATION FOR OBTAINING AN IEC NUMBER:
For obtaining IEC number apply in the prescribe form along with the
documents listed above to Regional Licensing Authority (Office of the
Regional DGFT). The registered office or the head office may apply for
allotment of IEC No.
Whenever, there is a change in the name, address or constitution of the
holder of IEC No., such change should be intimated within 30 days to the
concern authorities.
IEC certificate will be issued in the form (copy enclosed). A copy of IEC
No. is also endorsed to the concerned banker.
VALIDITY
The IEC No allotted to a firm/company will be valid for all its
branches/divisions units/factories as indicated in the IEC No.
Import/Export of any commodity by that firm/company.
There being no date of expiry, the IEC once allotted is valid till it is
revoked. But, if no import or export is affected in the previous financial
year, the same will be made inoperative. However, this can be made
operative by a formal request to the DGFT.












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1.5: Director General of Foreign Trade (DGFT)
Any person in India who wants to do any imports or export for business is
required to obtain permission from the Director General of Foreign Trade (
DGFT), the importer exporter code number, popular known as IEC number. In
addition, DGFT will allot a PAN base Business Identification Number (BIN) Both
IEC number and BIN should be quoted by the exporter on all the regulatory
documents prepared for exports.
The registered office or the head office of the exporter should apply in the
prescribed format to DGFT for allotment for IEC number. The application will
contain the details of all the offices and branches of the exporter. The IEC
number allotted to the head office should be used by the head office and all
offices/branches of the exporter.









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1.6: Term Of Shipments (INCO terms)
The INCOTERMS (International Commercial Terms) is a universally recognized
set of definition of international trade terms, such as FOB, CFR & CIF, developed
by the International Chamber of Commerce (ICC) in Paris, France. It defines the
trade contract responsibilities and liabilities between buyer and seller. It is
invaluable and a cost-saving tool. The exporter and the importer need not
undergo a lengthy negotiation about the conditions of each transaction. Once
they have agreed on a commercial terms like FOB, they can sell and buy at FOB
without discussing who will be responsible for the freight, cargo insurance and
other costs and risks.
The INCOTERMS was first published in 1936and it is revised periodically to keep
with changes in the international trade needs. Under INCOTERMS 2000, the
international commercial terms are grouped into E, F, C and D, designated by
the first letter of the term, relating to the final letter of the term.
The purpose of Inco terms is to provide a set of international rules for the
interpretation of the most commonly used trade terms in foreign trade. The scope
of Inco terms is limited to matters relating to the rights and obligations of the
parties to the contract of sale with respect to the delivery of goods. Inco terms
deal with the number of identified obligations imposed on the parties and the
distribution of risk between the parties.
In international trade, it would be best for exporters to refrain, wherever possible,
from dealing in trade terms that would hold the seller responsible for the import
customs clearance and/or payment of import customs duties and taxes and/or
other costs and risks at the buyers end, for example the trade terms DEO
(Delivery Ex Quay) and DDP (Delivered Duty Paid).
Similarly, it would be best for importers not to deal in EXW (Ex Works) which
would hold the buyer responsible for the export customs clearance, payment of
export customs charges and taxes, and other costs and risks at the sellers end.

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Contract Terms for Carriage Sea Transport
FREE ON BOARD (FOB):
The delivery of goods on the board the vessel at the named port of origin
(Loading) at sellers expense. Buyer is responsible for the main carriage/freight,
cargo insurance and other costs and risks. In the export quotation, indicate the
port of origin (loading) after the acronym FOB, for example FOB Vancouver and
FOB Shanghai. The term FOB is used for ocean freight only.
COST AND FREIGHT (CFR):
The delivery of goods to the named port of destination (discharge) at the
sellers expenses. Buyer is responsible for the cargo insurance and other costs
and risks. The term CFR was formerly written as C&F. Many importers and
exporters worldwide still use the term C&F. In the export quotation, indicate the
port of destination (discharge) after the acronym CFR, for example CFR Karachi
and CFR Alexandria.
COST, INSURANCE AND FREIGHT (CIF):
The cargo insurance and delivery of goods to the named port of
destination (discharge) at the sellers expense. Buyer is responsible for the
import customs clearance and other costs and risks. In the export quotation,
indicate the port of destination (discharge) after the acronym CIF, for example
CIF Pusan and CIF Singapore.
Contract Terms for Carriage by Any Mode of Transport
Ex WORKS (EXW):
EXW applies to goods available only at the sellers premises. Buyer is
responsible for loading the goods on truck or container at the sellers premises
and for the subsequent costs and risks.

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DELIVERED DUTY UNPAID (DDU):
The delivery of goods and the cargo insurance to the final point at
destination, which is often the project site or buyers premises, is at sellers
expense. Buyer assumes the import customs clearance, payment of customs
duties and taxes. The seller may opt not to insure the goods at his/her own risks.
DELIVERED DUTY PAID (DDP):
The seller is responsible for most of the expenses which include the cargo
insurance, import custom clearance, and payment of custom duties, and taxes
at the buyers end, and the delivery of goods to the final point of destination,
which is often the project site or buyers premise. The seller may opt not to insure
the goods at his/her own risk. In the export quotation, indicate the point of
destination (discharge) after the acronym DDP, for example DDP Bujumbura and
DDP Mbabane.

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1.7: Modes of Payments
There are five methods of payment depending upon the terms of payment, and
each method of payment involves varying degrees of risks for the exporter. The
methods are:
1. Documents against Acceptance.
2. Cash on Delivery.
3. Consignment Sale.
4. Open Account.
5. L.C (Letter of credit)
Documents against Acceptance:
The export documents will be released by the collecting bank to the
importer when he accepts the bill of exchange. Hence, this method is
known as documents against acceptance or DA in short.
No payment is made by the importer when he accepts the bill and
receives the document. He can get possession of the goods by using the
export documents. He will pay the amount due on the bill to the collecting
bank on its due date.
Cash of Delivery:
Sent on COD basis. The importer should make payment to the courier at
the time of `receiving the goods. This is not a popular method of
settlement for export of regular goods.
Consignment Sale:
The exporter may have his selling agents abroad to whom the goods are
dispatched. They receive the goods without making any payment.
The goods are sold by the selling agents on behalf of the exporter and as
and when the sale proceeds are received they are remitted to the
exporter. Throughout, the goods remain at the risk of the exporter.
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Open Account:
The situation recommending open account business is the reverse of that
for advance remittance. Under this method goods are dispatched directly
to the buyer who takes delivery of them without making payment.
He is free to dispose of the goods as he pleases his arranged that he will
make payment to the seller at a predetermined future date, say, two
months after each shipment. Open account as a method of settlement is
possible where the commodity commands buyers market.
Letter of Credit:
To say in simple language, this is an Undertaking by a Bank associated
with the buyer to make the payment for the supply of goods by a seller
subject to compliance of various requirements that may be specified in
the document of undertaking by the Bank. This document is known as
Documentary Credit. A Documentary Credit is also called a Letter of
Credit (L/C).
Generally, though exporters are complacent once they get the letter of
Credit on hand feeling that their payment is secured.











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1.8: Financial Risk in International Trade
As an exporter while selling goods abroad, you encounter various types of risks.
The major risks which you have to undergo are as follows:
1. Credit Risk
2. Currency Risk
3. Carriage Risk
4. Country Risk
You can protect yourself against the above risks by initiating appropriate steps.
Credit Risks:
You can cover your credit risk against the foreign buyer by insisting upon
opening a letter of credit in your favour. Alternatively one can avail of the
facility offered by various credit risk agencies. A specific insurance cover
can also be obtained from ECGC (Exports Credit & Guarantee
Corporation) to cover your country risk besides covering credit risk.
Currency Risks:
As regards covering the currency risk, due to the exchange rate
fluctuations, you can request your banker to book a forward contract.
Carriage Risk:
The carriage risk can be covered by taking an appropriate general
insurance policy.
Country Risk:
ECGC provides cover to protect the exporter from country risks. Detailed
procedures how an exporter can get him protected against the above risks
are given in separate chapters later.

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1.9: Receiving Payments




Circulation of money plays vital role in any national or international trade. In any
economic transaction, Payment of goods or services is necessary for smooth
working of business organization.
As stated earlier, in international trade exporter and importer decide the terms of
payment at the time of agreement. For transfer of money there is specific
procedure fixed by the banks. Steps of the procedure are as follows:
After shipment of goods, exporter asks the importer for the payment as per their
agreement.
In Making and receiving payment of goods, bank plays vital role. Payment
receiving process in international transaction is summarized as below:
IMPORTER IMPORTER'S BANK
HEAD OFFICE OF
IMPORTER'S BANK IN
IMPORTER'S
COUNTRY
HEAD OFFICE OF
EXPORTER'S BANK IN
IMPORTER'S
COUNTRY
RBI
INDIAN HEAD OFFICE
OF EXPORTERS
BANK
EXPORTERS BANK EXPORTER
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First Importer transfers money in his bank in his own country in USD (US Dollar)
or Currency of his country, and ask his bank to convert it into Currency of the
country decided in advance.
Then Importers bank transfers this money to the Head Office of it in his own
country from where payment is transferred into Head Office of the exporters
bank (Indian Bank) in the importers country.
Exporters bank in Importers country sends money to Reserve Bank of India.
Reserve Bank of India makes record of it and then transfers it to the Indian Head
Office of Exporters Bank. This Indian Head Office transfer money to its local
branch through which exporter has made his international transaction.
This local bank then give payment to the Indian Exporter after converting money
in Rupees as per the market foreign exchange rate or as per the forward
exchange contract made by an exporter (if any).











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1.10: Schemes

1.11.1 Forward Exchange Contract:
Forward contract is a device which can afford adequate protection to an
importer or an exporter against exchange risk. Under a forward contract
a banker and a customer or another banker enter into a contract to buy
or sell a fixed amount of foreign currency on a specified future date at a
predetermined rate of exchange.
Our exporter, for instance, instead of groping in the dark or marking a wild
guess about what the future rate would be, enters into a contract with his
banker immediately.
He agrees to sell foreign exchange of specified amount and currency at
a specified future date. The banker on his part agrees to buy this at a
specified rate of exchange.
The exporter is thus assured of his price in the local currency.
Ex.: The exporter may enter into a forward contract with the bank for 3
month delivery at Rs.49.50. This rate, as on the date of contract, is
known as 3 months forward rate.
When the exporter submits his bill under the contract, the
banker would purchase it at the rate of Rs. 49.50 irrespective of the
spot rate then prevailing.

1.11.2 ECGC:
ECGC (Export Credit and Guarantee Corporation) is one of the schemes
which help the exporter with a sort of guarantee or a sort of cover for the
exporter.
ECGC offers various types of insurance cover to protect the exporters
interest. For each type of cover an exporter has to take Policy specific to
the respective requirements. The Policy that is most commonly taken by
the exporters is the Standard Policy or otherwise called the Shipments
(Comprehensive Risks) Policy.

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1.11.3 DUTY DRAWBACK:

For a product exported from India, the manufacturer would have paid duties
as under:
I. Import duties on raw materials and components imported; and
II. Excise duty on the items manufactured in India.

The Customs and Central Excise Duty Drawback Rules, 1971 provide for refund
of such duties to the exporter on the export being completed.
Duty drawback is allowed only in respect of all items wherein such raw materials
and components have been used on which duty either of customs or excise has
been paid.

1.11.4 ADVANCE AUTHORISATION:

An advance authorization enables the exporter to import inputs for his export
commodity free of customs duty. Three types of advance authorizations are
issued:
I. Advance authorization for physical export is granted to a manufacturer
exporter or a merchant-exporter for the import of inputs required for the
manufacture of goods.
II. Advance authorization for intermediate supplies is granted to a
manufacture-exporter for the import of inputs required in the
manufacture of goods to be supplied to the ultimate exporter holding an
advance license.
III. Advance authorization for deemed exports is granted to a manufacturer
exporter for import of inputs required for manufacture of goods for
deemed exports.

1.11.5 DUTY ENTITLEMENT PASS BOOK:
Duty Entitlement Pass Book Scheme (DEPB) is an export incentive
scheme. Under the DEPB, the exporter is given a duty entitlement Pass
Book Scheme at a pre-determined credit on the FOB value.
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The DEPB rates are allows import of any items except the items which
are restricted for imports. Writing instruments, components of writing
instruments and watches are not eligible for benefit under the DEPB
scheme.
The DEPB Rates are applied on the basis of FOB value or value cap
whichever is lower. For example, if the FOB value is Rs.700/- per piece,
and the value cap is Rs.500/- per piece, the DEPB rate shall be applied
on Rs.500/-.
Under this scheme, an exporter is eligible to claim credit as a specified
percentage of FOB value of exports of specified commodities made in
freely convertible currency. The credit thus earned can be used to import
any freely importable commodity without payment of customs duty.
DEPB is granted against export already made. The DEPB and/or the
items imported against it are freely transferable. The DEPB is valid for a
period of 24months.

1.11.6 DUTY FREE IMPORT AUTHORISATION:

A Duty Free Import Authorisation is issued to allow duty free import of
inputs which are used in the manufacture of the export product (making
normal allowance for wastage), and fuel, energy, catalyst, etc. which are
consumed or utilised in the course of their use to obtain the export
product.

1.11.7 EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME:

The scheme aims at enabling the exporters upgrade and create
production capabilities at lesser cost. EPCG scheme allows import of
capital goods including computer software, at 3% customs duty by
general exporters and at zero duty by exporters of agricultural products.


32

1.11.8 VISHESH KRISHI AND GRAM UDYOG YOJANA:
(Special Agriculture and Village Industry Scheme)
The objective of the scheme is to promote export of fruits, vegetables,
flowers, minor forest produce, and their value added products, by
incentivising exporters of such products.
The Duty credit may be used for import of inputs or goods including capital
goods, as may be notified, provided the same is freely importable.
1.11.9 PRODUCT-MARKET FOCUS:

The twin schemes of Focus Product and Focus Market aim at providing
additional stimulus to,
a. Promote export of products having large employment potential, and
b. Penetration of strategic markets by Indian products, especially markets in
which our exports are comparative low.
Focus Product Scheme:
FPS provides incentives to export of products which have high employment
potential in rural and semi urban areas in order to offset the inherent
infrastructure bottlenecks and other associated costs involved in marketing of
such products.
Focus Market Scheme:
FMS allows duty credit facility @ 2.5% of the FOB value of exports to fifty
percent of the export turnover of notified products such as value added fish
and leather products, stationery items, sports goods, fireworks, handloom
mark







33









COMPANY
OVERVIEW

34

2.1: History, Growth and Development

Discovery & invention has been part and parcel of human life. Man has always
an instinct to find something new which would help him to carry on his work of
live more easily and with less effort. Such an instinct led to the discovery of fire,
lever etc. and some equipment and tools which would help him in import and
export purpose.

Export and import are the backbone of economic progress, peaceful co-
existence, harmonious relationship, and well-rounded development of any State
or country. Every product of requirement is not produced or available everywhere
and hence, there is need for exports and imports in a city, State, country, or the
world.

Being a management student I have visited to ECONOMIC TRADERS
(GUJARAT) Pvt. Ltd. for the purpose of industrial training.

Economic Traders (Gujarat) Pvt. Limited is a company incorporated in 1972.
The company is a 100% export oriented unit and one of the leading One
Star export house form India, recognized by the Ministry of Commerce,
Government of India.

ETGPL are one of the multifaceted, multi product group popularly known as
the Economic Group of Companies. The group is involved in diverse business
activities in the field of manufacturing as well as trading of Engineering Goods,
Agricultural Produce, Textiles, Chemicals, Plastics, Paper and Paper Products,
Finance, Real estate etc.

The company has won several institutional, state and national awards for the
contribution in exports, academics and social services.


35

The company specializes in the exports of agricultural and industrial engineering
equipment manufactured by sister group companies as well as quality products
of other reputed and established companies.

ETGPL have been exporting " ALFA " brand range of diesel engines from 5 HP
to 25 HP, Spares for Diesel Engines, Water Pumps, Rice Hullers, Thrashers,
Flour Mills, PVC Pipes, V-Belts, Transmission Belts, Bolts & Nuts, Oil Mills,
Jewellery Design Machines, Exercise Note Books, Writing Pads, Registers,
Masoor Dal, Rice, Sugar, Derivatives of Castor Oil (First Special Grade Castor
Oil and Hydrogenated Castor Oil) etc.

These products are being exported since 1972 to majority markets in over 35
countries of the Middle East Asia, South East Asia, Africa, Europe and America.
ETGPL have earned high reputation in trade. The "ALFA" brand has become
synonymous with quality, reliability, durability and value for money. The company
has also successfully executed project export orders for various plant and
machinery.

A dynamic and professional team of Technocrats, Engineers, Accountants,
Administrators is headed by Managing Director Mr. I.V. Vora who himself is
B.Tech with honors from Indian Institute of Technology.

This growth oriented company is today busy consolidating its business in the
existing markets and expanding its business and at the same time venturing into
new markets and products to expand and achieve growth in geometric
progression. The company today invites business enterprises from around the
world to join hands for mutually beneficial business association.




36

2.2: Company Profile

Name : Economic Traders (Gujarat) Pvt. Ltd.

Office : Economic Traders (Gujarat) Pvt. Ltd.
301, Sterling Apartments.
Jawahar road,
Rajkot-360001

Date of incorp. : 19
th
September 1972

Bankers : State Bank of India

Managing Director : Mr. Indulal Vora

Auditor : N.D. Manek & co.

Legal adviser : Mr. C.H. Patel

No. of employees : 110

Weekly off : Sunday
Saturday half day

Website : www.etgpl.com

E-mail id : etgl@hotmail.com

Telephone no : +91-281- 2222911- 12 - 13 14

Fax : +91-281- 2226490, 2237306

37

2.3: Management of Company



NAME

DESIGNATION

Mr. Indulal Vora

Managing Director
Mr. Sauvrin Vora

Mr. Sudhir Vora

Mr. Prashant Vora

Mr. Bharat Vora



Directors

Mr. Khushru Dossabhoy

General Manager
(Sale & Marketing)

Mr. Atul Udani

Accounts, Finance & HR
Manager

Mr. Mahendra Doshi

Chief Engineer & Purchasing
Manager







38

2.4: Product Range

Diesel Engine
High Speed Water Cooled
Diesel Engine
High Speed Air Cooled
Diesel Engine
High Speed Double Cylinder
Diesel Engine
Slow Speed Diesel Engine Coupled Set
Mills & Hullers
Rice Hullers Maize Mills Flour Mills
Flour Millstone Corn Grinding Machines
Construction Machinery
10/7 CFT Concrete Mixer 7/5 CFT Concrete Mixer Tower Hoist & Scaffolding
Automobile Spares
Liners/ Sleeves & Blocks Connecting Rods Bearing & Bushes
Valves & Guides Crank Shafts
Agriculture Implements
Hoes Mattock Shovels
Pickaxe
Pipes & Ropes
P.E / P.P Ropes PVC Flexible Hose Pipes
Commodities
Sesame Seeds Tamarind Wheat
Cumin Seeds Rice Sugar
Red Lentils (Splitted /Bold)
Diesel Engine Spares
Centrifugal Water Pump





39

2.5: Infrastructure & Quality Assurance

Quality is forte and ETGPL give utmost importance to the quality management
activities. The range of products is environment friendly and is in compliance
with the industry standards. Company have a dedicated quality control
department, where quality controllers stringently check the quality of the
products on different parameters, with a view to deliver quality assured range in
the market. Company products are passed through following parameters:
Performance
Durability
User Friendliness
Load Bearing Capacity

A well congregated infrastructure forms the backbone of company. Robust
infrastructure of ETGPL is loaded with all the latest machinery and a dexterous
workforce that ease to meet the varied demands of clients at the shortest span
of time. Team members are conversant with latest technology, which makes
them capable of operating our installed equipment & machines efficiently. It is
segregated into different departments such as production unit, quality control
unit, Research and development, warehouse and packaging unit etc.









40

2.6: Detailed Department Overview

2.6.1 Storage

Generally, industries dealing with industrial goods always go for bulk buying of
their raw materials, this would avail them with the advantage of economies of
scale. Economic Traders (Gujarat) Pvt. Ltd. Is no exception to this general rule
as such bulk buying would also reduce the frequency of ordering and hence the
ordering cost.

A stores head is appointed who is in charge of stores and keeps a stock book
regarding the inflow and outflow of the material from his department.




41

2.6.2 Assembly

In this department, the parts are assembled and then the engine is made. As
soon as the inspection is over, the parts are taken for assembling procedure,
which is as follows.

Crankshaft is fitted in crankcase
Crankcase is fitted in piston.
Piston is put in cylinder liner.
Cylinder head and valves are fitted in cylinder block
Fitting of fly wheel
Fitting of extra accessories like air band, exchange plunger, water
outset, water inset, exhaust cylinder, starting handle etc. are joined
with diesel engine.
Fitting of all nuts and bolts and studs.



42

2.6.3 Testing Department

All the assembled engines are tested in testing department. Each engine is
tested for 3.5 hours in the testing department. 10 engines are tested at a time.
Testing procedure is done in the following particulars.


Nut bolt checking
Engine running capacity
Revolution per minute
Fuel consumption
Load capacity








43

2.6.4 Galvanizing Department

Here, first of all the machines have been cleaned up, and then a treatment of
primer has been given so as to prevent rusting of engines. This process is also
called galvanizing. Then the colors are paste on machines, commonly sand
stone orange, bottle green and olive green colors are used. The machines are
painted through spray paints and put aside for drying, and then they are sent to
the packing and dispatch department.





44

2.6.5 Packing and Dispatch

The painted engines are packed according to their brand name and capacity in
wooden case with tool box and manufacturing mark. Economic Traders (Gujarat)
Pvt. Ltd. is exporting its products under the brand name of Alfa.






45

2.6.6 Labeling and Coding

After the completion whole process labeling must do. Labeling and the coding
are necessary for the product, so that importer can identify the goods. Labeling
and coding will differ from importer to importer.


















46

2.7: SWOT Analysis





SWOT analysis is a strategic planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a project or
in a business venture. It involves specifying the objective of the business venture
or project and identifying the internal and external factors that are favorable and
unfavorable to achieve that objective.


47

STRENGTH

Distribution channel
ETGPL having agent in more than 35 countries and they are working for
the development of the company

Customer loyalty/ Relationship
Its been more than forty years that ETGPL is serving customers in
market. And many customers are more than thirty years old.

Leading Brands
ETGPL having ALFA brand, which is very popular in the gulf countries.

Superior quality of product
The quality provided by ETGPL is certified. And having passed through
many inspections.

Employees
Employees of ETGPL are very much efficient to take firm at higher
scale. They are very loyal to the firm.

WEAKNESS
Lack of new products and services
ETGPL having a limited products to manufacture. They rely on
merchandizing a most.

Traditional assembly line
ETGPL does not having an atomized assembly line. So, they can
produce a very limited units in a day.



48

OPPORTUNITY

Cover domestic market
ETGPL are mainly focused on international market (mainly gulf
countries). They can focus domestic Indian market as it is one of the
fastest growing country.

Export more agriculture goods
Indian agriculture products having a very high demand in foreign
nations. So ETGPL should focus more regarding that.

THREATS
There are cut thought competition in market. Which requires high level
of awareness in market.

The steel prices are going high which is a threat for the company

Technological advances is a threat because people are going for
electrical motors rather than diesel engines.

Government policies and high fluctuations in the currency market is the
biggest threat for the ETGPL.






49



International
Marketing
Tools

50

3. Introduction

Globalization is at top speed now. Various companies are focusing on various
markets. This is the era of tough competition. To get benefit of era, a company
has to take an efficient and effective decision at each stage of progress.
It is well said that right business at wrong place is wrong business. As like that,
right marketing tools at wrong situation or at wrong place is wrong marketing
tools. The decision of choosing marketing tools is getting very essential.
ETGPL has used a various international marketing tools for various market place
as well as for various products. It is very essential to get clear that effective
marketing tools can enhance a business.












51

Trade show:

A trade fair (trade show, trade exhibition or expo) is an exhibition organized so
that companies in a specific industry can showcase and demonstrate their latest
products, service, study activities of rivals and examine recent market trends and
opportunities. Trade fairs often involve a considerable marketing investment by
participating companies.

These trade fairs are usually organized by government, chambers, industry
associations, or by specialized exhibition companies.

Different forms of trade fairs:
Trade fairs differ markedly from one another. Some are specialized; others
general. Some have an industry focus; others have a consumer focus. Some are
local; others international. Some are aimed at buyers; others at sellers. The table
below provides a broad classification of trade fairs.
Characteristics Type of trade fair
Origin of participants Local, regional, national or international trade fairs
Range of goods
offered
Universal/general, special interest or industry-
specific
Type of goods Consumer goods or industrial goods
Involved associations Chambers, governments, international
organisations, industry associations, specialised
exhibitions firms
Direction of Sales Import/buying or export/selling
Principal Task Exchange, information or promotion


52





53

Journals and Publications:

Journals and publications can be distributed through the mail; through sales by
newsstands, bookstores, or other vendors; or through free distribution at
selected pick-up locations.

Sales models for distribution fall into three main categories.

-paid Circulation


Paid Circulation
In this model, the publications is sold to readers for a price, either on a per-issue
basis or by subscription, where an annual fee or monthly price is paid and issues
are sent by post to readers.

Non-paid Circulation
This means that there is no cover price and issues are given away, for example
in street dispensers, airline in-flight magazines, or included with other products
or publications.
Example Air India: Air India Magazine

Controllable Circulation
This is the model used by industry-based publications distributed only to
qualifying readers, often for free and determined by some form of survey.
Example, in the United Kingdom a number of computer-industry magazines,
including computer weekly and Computing, and in finance, Waters Magazine



54

Online:

Modern approach for doing marketing of over product is Internet. In internet most
favorable are websites and social sites. Now a day, people are more familiar with
internet and most of people are using internet. So, best approach for doing
marketing of over product is internet rather than traditional approach.

Online marketing is a popular method to gain international audiences. For
example, Email has become one of the most successful channels for marketers
in world, which means that companies interested in selling to the world online
market should take advantage of this popular medium.



Websites and social sites are accessible in computer and mobile also. So, easily
open over website in mobile anytime and anywhere.

So, any buyer get information from anywhere they need and sellers add
information and doing update on available information anytime of their product
information. So, buyer get right information and seller attach right information
anytime.


55

Online Marketing Ideas:

Broadcast your website like a phone number.

Include your web address on all printed material (brochures,
stationery, business cards, and press materials).
Include your web address in your email signature file.

Entice customers and prospects to visit your website again and again.

Update your site regularly.

Use your online stuff for sales and customer service.

Provide a street map to your business location on the Web.
Create a link to your email on every page in your website
Make sure your customers can find you by searching with keywords.

Use something like Google AdWords to target customers actively
searching for what you sell.






56

Direct Visit to Various Countries:

Peoples are visit various country directly because of maximizing their product
benefits and minimizing costs and doing marketing of their products in that
country. You have to find out where in the world your product will be in greatest
demand. Market research is a powerful tool for exploring and identifying the
fastest-growing, most penetrable market for your product.
We have to identify that in which country over product demand is more. That can
be identifying from magazines, websites and through email. Example, for
engineering goods used magazine is Indian Engineering Export. From this
magazine get country wise report about which product needed and doing
communication with country committee.






57

Participation in Buyer-Seller Meet:

Objectives
To provide an opportunity to prospective importers to interact with Indian
counterparts about their requirements.
To provide an opportunity to Indian exporters to adjudge the acceptability
of their products in the above markets, so that they are in a position to
plan their strategy accordingly.


Federation of Indian Chambers of Commerce and Industry (FICCI)
organizes 40-50 Buyer-Seller Meetings every year in association with Govt. of
India, Industry Associations, Overseas Chambers of Commerce and trade
promotion bodies. These Buyer-Seller Meetings comprise of overseas business
delegations visiting India and Indian businesses who wish to meet delegates
individually. FICCI organizes one-to-one meetings between overseas business
delegates and interested Indian participants. Any Indian business may meet one
or more overseas business delegate(s) individually.

EPC (Export Promotion Council) is organizing buyer-seller meet. EPC invite
major importer in a country to know buyer-seller each other. They are arranging
meeting for buyer and seller personally and professionally. They are giving time
slot for buyer and seller for meeting. So, they know each other very well. If both
parties are agree then deal is done there.
EPC is announcing date and products name for Buyer-Seller meet. Interested
people have to do registration and after that they are participate for Buyer-Seller
meet. Importer, exporter, dealers, distributors and wholesalers are participating
in Buyer-Seller meet.


58

Business Network/References:

Business networking is an effective low-cost international marketing tool for
developing sales opportunities and contacts, based on referrals and
introductions - either face-to-face at meetings and gatherings, or by other contact
methods such as phone, email, and increasingly social and business networking
websites.

A business network of contacts is both a route to market for you, and a marketing
method. Business networking offers a way to reach decision-makers which might
otherwise be very difficult to engage with using conventional advertising
methods. In addition, business networking brings with it the added advantage of
recommendation and personal introduction, which are always very helpful for
developing business opportunities at global scale.

"It's not what you know, it's who you know... work for you.

Networking is an essential for most business houses, but especially
for entrepreneurs. The strong association between the entrepreneur as a person
and his or her business demands that entrepreneurs get out into the world and
create and maintain business relationships.








59





RESEARCH














60

4.1 Background of the Research

Marketing research is the process collecting and analyzing marketing
information and ultimately arrived at certain conclusion.
World is getting smaller day by day. Globalization is at top in 21
st
century. Every
business has a desire to work at international level. For same, Business entities
have to market their business worldwide. There are various international
marketing tools, which is different than traditional tools. There are various latest
international marketing tools which make business quite smooth and efficient. It
is essential to look that, which one is mostly used in corporate field and which
one is perceived as effective tool in international business etc.

So, in primary research, researcher will make a study of various international
marketing tools. The way of this primary research is by questionnaire. In this
research, researcher will try to understand marketing tools and effectiveness of
that from exporter perspective.

Germany's market economy has presence of a sound political system, legal
framework, skilled and world-class manpower availability and other resources
ensure lasting business opportunities through various avenues. Germany
creates an array of opportunities, which remain uncharted. There is great
mutuality of benefit.

So that, its become an essential to study the market of worlds third largest
economy and find a business opportunity over there for current products of
ETGPL as well as to find an opportunity for the new product.

Researcher has done a secondary research for exploring a market potential and
opportunities in Germany. Researcher will try to find out various sectors to
business in Germany. In this research, the data which researcher has taken is
from authenticated agencies and entities.


61

4.2 Literature Review

Review 1.
Title: Comparative review of marketing assessment method, tools & approaches
Author: Nanthilde Kamara
Year: September, 2013
Published: For World food programme to Federal Ministry for Economic
Cooperation and Development of Germany.
Abstract: In this article, author has describe a various marketing assessment
methods, tools and approaches. And their use and impact for food industries. I
helps to be aware of many facts about the Germany food market. The
recommendations for the international companies who want to effectively control
global marketing activities and benefit from think global, act local control
strategy.
Review 2.
Title: Global Marketing Control
Author: Galina Zhiltsova & John Rance
Year: December, 2009
Published: Han Business Publications
Abstract: The reasoning issue of this work is to research and define the efficient
methods of global marketing control. The report is focused on the following
aspects: the importance of the control systems in global marketing environment,
the relationship between planning and controlling, types and the process of
establishment of the control systems, common problems and approaches to
control.
Review 3.
Title: Decision Driven Marketing
Author: Aditya Joshi, Eduardo Gimenez
Year: July, 2014
Published: Harward Business Review
Abstract: An article was talking about the various decision making situation and
the various international marketing tools effectiveness on that situation. There
was many challenges, solutions and decision perspective was describe in the
article, which helps me in this research.
62

4.3 Research Problem

What are the international marketing tools that exporters use the most in
21st century?
What is the effectiveness of international marketing tools perceived by
exporters?
How economy of Germany is currently performing?
Which are the major business sectors to access German market?

4.4 Objective of the Research

Primary Research Objective:

To identify and find out an initial understanding of the marketing tools that
exporters currently use for their marketing purposes.

To measure and evaluate the effectiveness of these tools as per exporters
perspective.

Secondary Research Objective:
To study a market potential in Germany market refers to various sectors
like Agriculture and processed food export, Wool & woollen export,
Automobile components Export, Leather export, chemical and Pharma
Export, Textile

To know the norms and regulations of Germany about import.








63

4.5 Contribution and learning from Project


My specialization subject is International Business, so I would consider a joining
of ETGPL is my best decision, it is well-known one star exporting firm, who
exporting a various goods to more than 35 countries. I learnt many things from
the company related to methods of doing exports, export production, finance,
marketing, pros and cons of exports, etc. It was really worth time to be at
company and specially, talking to guider.

By doing project on international marketing tools and exploring market potential
in Germany. I Learnt use and effectiveness of the international marketing tools
and also about various potential sectors in Germany market. I believe that
research work done by me will be definitely useful to the company for their
international marketing decision and especially German market decision.














64

5 Methodology

Methodology is the systematic, theoretical analysis of the methods applied to a
field of study. It comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge.

5.1 Research Design

Research design is the based framework, which provides guidelines for the
research process. It is a map or blue print according to which the research is to
be conducts. The research design specifies the methods for data collection &
data analysis determine the source of data etc....

Approach to Research:

There are mainly three kind of research approach like explorative approach,
descriptive approach and causal approach.

Exploratory research is research conducted for a problem that has not been
clearly defined. Investigation into a problem or situation
which provides insights to the researcher.

Descriptive research, is used to describe characteristics of a population or
phenomenon being studied. It does not answer questions about how/when/why
the characteristics occurred.

Causal research, as the name specifies, tried to determine the cause underlying
a given behavior. It finds the cause and effect relationship between variables.

Researcher has used a descriptive research approach for studying international
marketing tools. And explorative research approach for studying & exploring the
Germany market.

65

Sampling Method:

There are mainly two types of sampling method:

Probability Sampling
A probability sampling is one in which every unit in the population has a
chance of being selected in the sample, and this probability can be
accurately determined.

Non-Probability Sampling
Non-probability sampling is any sampling method where some elements
of the population have no chance of selection or where the probability of
selection can't be accurately determined.

Here, researcher has used non-probability convenient sampling for the purpose
of the Survey because it is easiest method to find the exporter for the survey.

Sample Size:

50 company (export business firm)

Data Collection:

Primary data collection:

Primary research consists of a collection of original primary data collected by the
researcher or data observed or collected directly from first-hand experience.

Online Questionnaire
Use of E-mail and Linked in Network
Offline Questionnaire
Visit of the business houses

66

Secondary data collection:
A data collected by someone other than the user is called as Secondary data.
Journals, Internet, Reports, Govt. entity, Indo-German Agreements Etc.

Data Processing & Analysis:

After collecting a data, the method of converting raw data into meaningful
statement; includes data processing, data analysis, and data interpretation and
presentation.

Data processing refers to the process of converting data from one format to
another. It transforms plain data into valuable information and information into
data. A data processing is all about presenting a data in a simple format so that
large data would become an easy to understand and analyze. It is vital in
marketing research.

For this project, researcher has used google.com analysis and MS Excel. And
researcher have used my analytical skill to analyze the data and information.














67









Data Analysis
And
Interpretation











68

1. Companies involved in following kind of business:



Merchant Export 5 12%
Manufacturing Export 24 47%
Merchant & Manufacturing Export 21 41%

Interpretation:

In this research project, 47 percent manufacture exporter, 41 percent
manufacture and merchant exporter and 12 percent merchant exporter
has been surveyed.

A research shows that, there are very less number of companies, who is
dealing in only merchandizing. Most of the business are either only
manufacturing exporter or merchant plus manufacturing exporters.

A current study shows that, merchant exporter has very important role in
international trade. But even though, that kind of business are not getting
much preference in world market.






69

2. International marketing tools used by companies:

Three most popular and used international marketing tools are online
marketing, trade shows and journals and publications.



Interpretation:

A current study show that there are 86 percent companies use online
marketing, 60 percent use journals and publications and 55 percent use
trade fairs.

Research finds that there are 7 percent companies, which uses all there
major tools. And 2 percent companies uses none of it.

Majority of companies use the online marketing as their international
marketing. As it is getting much popular in 21
st
century and e-commerce
are getting higher.








70

3. Companies preference for use of online marketing tools for
international marketing.

There are various components of online marketing like websites, blogs, E-
mails, social media, B2B portals.





Interpretation:

Current study shows that majority of the companies prefer to have their
own websites and utilizing them as online marketing tools. The data
gathered shows 85% of the companies prefer online marketing tools for
performing their marketing campaigns.

Companies also prefer B2B portals and E-mails for international
marketing. But, Companies less preference is on social media and blogs.

71

4. B2B Portals used by companies:





Interpretation:

Research shows that alibaba.com and exportindia.com are major
preference and treadindia.com and indiamart.com are getting a average
preference for B2B marketing.

Others are less popular and used among companies. Recently,
alibaba.com has issued one of the largest E-commerce IPO.


72

5. Kind of journals & publications used by companies for advertisement.






Interpretation:

A study shows that companies mostly prefer a general publication and
industry specific publications for advertising respectively 35 percent and
40 percent. It is most popular among companies as its focused
characteristics.

A data also finds that product specific publications are also been used at
much extend. And area specific publications is getting a moderate
response.

It seems that publication and journals are much useful in international
business, as companies are not ignoring this tool.





73

6. At frequency, companies participated in trade fairs:




Yes, always 4 12%
Yes, most of the time 4 12%
Yes, sometimes 22 67%
Yes, Seldom 3 9%

Interpretation:

A research shows that companies are not regularly participate in the trade
fairs. Majority of companies gets sometimes participate in trade fairs.

Even that, there are few companies, which are actively participate in all
kind of focused trade fairs and getting benefits of that.

Few companies are not at all interested in participating in the trade fairs.

The reason for that could be list of. Government also promoting a
participation in trade fairs, even though companies are not that much
interested to participate excluding few companies





74

7. Types of trade fairs, companies get participate.



General Trade Fairs 15 45%
Industry Specific Trade Fairs 12 36%
Area Specific Trade Fairs 0 0%
Product Specific Trade Fairs 6 18%
Innovation and Technology Specific Trade Fairs 0 0%

Interpretation:

A study shows that there are few number of companies, who participate
actively in all trade fairs. And few companies are showing moderate
response towards participating in trade fairs.

Out of those, majority of companies (45 percent) get part in general trade
fairs, while most of the companies (36 percent) get part in industry specific
trade fairs. And few companies participate in the product specific trade
fairs.

As most of the companies are merchant and manufacturer firm, they are
targeting general and industry specific trade fairs a most.




75

8. Embassy contacted by companies.

Embassy plays an important role in international business as a role of
commercial wing.



Yes, Many Times 5 10%
Yes, Some Times 15 29%
Yes, Few Times 22 43%
Not at all 9 18%

Interpretation:

A study shows that majority of companies does not contact embassy
frequently. They contact embassy few times as, need arise. There are few
companies, which are not at all contacted with embassy.

But, There are companies, whose business are much higher, and they
need help of embassy a lot, have contact embassy many a times.

As in role of commercial wing, embassy helps to find a buyer, to verify the
buyer etc. these things are very much important in the international trade.




76

9. Reasons, companies contact to embassy



For business entity verification 36 33%
For the issue of commercial visa 12 11%
For taking info. about business opportunities in the target country 30 28%
For business/product registration 31 28%


Interpretation:

A research shows that companies mostly contact embassy for business
entity verification. As it is very essential while working at international
level.

Many firm contact embassy for the business registration or about find a
business opportunities in target country. Embassy help regarding these
thing also. And they contact embassy for taking information about
business opportunities in the target country.

There are very less number of companies, who contact embassy for the
commercial visa purpose.





77

10. Frequency of country visit by company:

In the past, it was very much necessary to visit a country for the expansion
of the business. But now a days, it is not that much required, as a
development of e-commerce and communications. But even through,
companies has to visit a country.




Yes, Frequently 4 8%
Yes, Usually 5 10%
Yes, Occasionally 21 41%
Yes, Seldom 13 25%
Never 8 16%

Interpretation:

Research shows that, companies are not visiting a country much for the
business dealing. Most of them do seldom, and few companies have
never visit a country.

Majority of companies do visit of country regarding business occasionally.
But, there are few companies, who do frequently and usually visit a
country for business.


78

11. Various reasons for country visit by companies:

There are various reasons for which, companies has to visit a foreign nation.


To meet with buyer 41 41%
To visit an expo. 27 27%
To know about culture of country 3 3%
For legal Activities 5 5%
Other Reasons 24 24%

Interpretation:

A study shows that companies goes to foreign nation to meet buyers a
most. There could be a various reasons to meet a buyer.

There a majority of companies, who visit a foreign nation to get part in
trade fairs. Companies rarely goes abroad for legal needs or to know the
culture.

As business having a wide scope, there are various other reasons
companies visit foreign nations for their business




79

12. Companies depends on references in target country for strengthening
the business.




All the time, depends on references 5 10%
Most of the time depends on references 17 33%
Sometimes depends on references 24 47%
Rarely depends on references 1 2%
Not at all depends on references 4 8%

Interpretation:

A research shows that companies are not much dependent on the
references for strengthening their business. At somewhat extend they
depends upon that.

There are few companies, which are all the times depends upon the
references for strengthening their business. And few are not at all gets
dependent on references for strengthening their business.

Researcher have observe that, a companies which have traditional way
to run a business are mostly dependent on the referances.


80

13. Perception about effectiveness of international marketing tools by
companies







Interpretation:

A research shows that most of the companies believes that, online
marketing is very effective tool for international business followed by
references.

They also perceived that advertisement in journals and publications and
participation in the trade fairs and help of embassy are also moderately
effective.

Companies are believing that direct visit of companies are not much
effective.
81

14. Expanse incurred by company for international marketing.

Nothing is free in international trade. Every comma and dots have some
meaning & every paper have some cost.







Interpretation:

A research data shows that Most of the companies are spending a highest
money for online marketing as it is perceived as one of the effective tool
of international marketing. And lowest money for the references and
embassy as it does not require much money.

Companies spend average money for trade fairs participation, advertising
in journals & publications as it does getting important by constraining a
feature of focus area. Companies also spend money for the direct visit of
a country also.



82











Market Potential
in Germany














83

Introduction:

Countries around the world have built great partnerships to create a global
economy. India and Germany are important countries in this increasingly
globalized world. India has achieved an impressive GDP growth of over 6
percent per annum in the last few years. Germany on the other hand enjoys the
status of being Europe's largest economy.

Both India and Germany's market economy, presence of a sound political
system, legal framework, skilled and world-class manpower availability and other
resources ensure lasting business opportunities through various avenues.
There is immense potential for FDI increase significantly in both countries by
utilizing each other strengths. This will not only assist in unlocking each country's
true potential but also foster the strategic dimension of bilateral relations
between them.

Till date, the economic relations between India and Germany have been
strategic in nature. Both countries are democracies with a federal-structure and
share a broad range of similar values as well as common views on international
issues.

Economic relations between these two countries date back to the 16 century. In
fact, between the 16 and 18 century, several German companies were
established to trade with India and other East Asian countries. Both India and
Germany create an array of opportunities for one another, which remain
uncharted. There is great mutuality of benefit in building upon their past
partnership.

This timely thought leadership will further assist in developing the bilateral ties
between India and Germany in the political, cultural, scientific and technological
field, thereby, creating a laissez-faire economy which is in harmony with the new
global economic order.

84

India and Germany- An Economic Overview


The Indian Economy:
India with its recent 'trillion dollar economy' status has seen remarkable
economic growth over the last couple of years. Last fiscal, India registered a
growth rate of 4.9 percent, making it one of the fastest growing economy.
Interplay of economic reforms combined with sound policy regime, favorable
demographics and increased integration with the world economy, have been the
prime drivers of this stupendous economic development with positive indicators
such as consistent 7-8 percent annual growth, rising foreign exchange reserves
of close to USD 300 billion, a booming capital market, increasing Foreign Direct
Investment (FDI) inflows of USD 6.4 billion in this fiscal, and more than 30
percent surge in exports, it is not hard to fathom why India is a leading destination
for foreign investment. The Indian economy is expected to remain strong this
year, driven by booming investment and consumption.

The German Economy:
As Europe's largest economy and second most populous nation, Germany is a
key member of the continents economic, political, and defense organizations.
Germany is also one of the most highly developed industrial nations in the world.
Also, after the U.S. and Japan, Germany has the world's largest national
economy.
In the international arena German companies have an excellent reputation. They
represent Made in Germany, known as a seal of quality the world over. They
represent innovation, quality and cutting-edge technology. Germany specializes
in developing and manufacturing complex industrial goods, primarily capital
goods and innovative production technologies.
85

The most important sectors of industry are automotive manufacture, mechanical
engineering, electrical engineering and chemicals. These four sectors alone
provide work for 2.9 million people.

After a long period of stagnation, with an average growth rate of 0.7 percent from
2001-05 and chronically high unemployment, heightened growth has led to a
considerable fall in unemployment to about 7 percent at the end of 2006. The
German economy is expected to grow by 4 percent in 2014.

Composition of German Economy:
Agriculture: 0.8%
Industry : 28%
Services : 71.2%








86

Indo-German Economic Relations:

With trade history that spans more than 500 years, India and Germany share a
strategic partnership that has its basis in strong business and economic links.
Over the years, not only has the bilateral trade increased, but German firms have
discovered new investment opportunities in India and so have the Indian firms in
Germany.
Indo-German economic relations have an interesting history. The first economic
links between India and Germany date as far back as the 16th century. Jakob
Fugger, a merchant and banker from Augsburg, financed the voyage of the first
German ships to Goa, thus opening up the trade route between Germany and
India. Between the 16th and the 18th centuries, a number of German companies
were established with the aim of trading with Indian and other East Asian
countries. In the 19th century it was the German company Siemens who built the
first telegraph connection between Kolkata and London, via Berlin.
India & Germany as Trading Partners:

For the year 2010, Indo-German trade relations achieved a new high, with trade
volume crossing the 15 billion mark. According to figures released by the
German Federal Statistics Office, between Januarys to December 2010, the total
volume of bilateral trade increased by 17.9 per cent compared to a negative
percentage in 2009. First 5 months of this year has shown an outstanding growth
of 28% in total volumes.



87


Germany and India have set a bilateral annual trade target of 20 billion by 2012.
The bilateral trade picked up tremendous momentum in the post-liberalization
era. The trade volume has increased nearly six times since 1991 -- with exports
to Germany increasing five times and imports from Germany to India almost
seven times.

The new century led to even stronger growth indicators in bilateral trade, which
has grown by an average of 29 per cent per annum since 2003. A new milestone
was reached in 2006, when the total volume of trade crossed the 10 billion
threshold, three years earlier than expected. The bilateral trade numbers
continued on an upward swing in 2007 and 2008, with volume of trade reaching
12.07 billion and 13.41 billion respectively. The recession affected the bilateral
trade in 2009, but only marginally, with the figures declining to 13.10 billion.

Bilateral Trade:

India and Germany are important partners on the international stage. In recent
years, the political bilateral relations have intensified considerably.

Indo-German bi-lateral trade has crossed EUR 25 billion mark in 2014
Indian imports from Germany has expected growth of 1.7 percent in 2014-
15
Indian exports to Germany showed a healthy increase by 18 percent in
2014.
Today Germany is India's fourth largest trading partner (after U.S., U.K.
and Japan)
Germany's trade with India accounts for just over 0.5 percent of Germany's total
trade thus there's ample room for much growth Textiles and leather remain the
thrust areas within the composition of Indian exports to Germany, followed by
food items, chemicals, electro technical products, pharmaceuticals and
machinery.
88

Important German exports to India are machinery (one third of the share of the
total German exports to India), electro technology as well as plants and metal
products. Also on the list are plastics and plastic products chemicals and
pharmaceuticals, and automobile products and components.

Figures of Indo-German Export Market

Overall the export industry is growing day by day and the figures indicate a rise
in the trade between the two countries. The textile industry accounts for the
highest trade with figures of export touching Euro 1.5 Billion. The second position
is occupied by the chemical products which are worth about Euro 585 million.
Data processing, electronic and optical equipment with 579 million come next
to it. The fourth and fifth spots are taken by machinery with 418 million and
leather products with 396 million.



















89

Primary reasons for doing business with Germany:

Largest economy in Europe with a 22 percent share of Eurozone GDP
and access to 454 million consumers. Productivity has risen by more than
30 percent in the past five years.
World's second largest exporter - 'Made in Germany' is a seal of quality
recognized around the world.
Located in the heart of Europe and shares borders with every major
economy in central Europe, providing instant access to both established
markets in Western Europe and emerging markets in Central and Eastern
Europe.
Highly sophisticated infrastructure; motorways, railroads and a state-of-
the-art telecommunications network ensure that goods and IT-services
are delivered quickly and dependably.
Most innovative nation in Europe, (more than 20 percent of European
patents are held by Germans).
International capital market, a liberal and stable social market and
financial services are its distinct advantages.
Over 22,000 foreign companies operate in Germany, employing in excess
of 2.1 million staff, generating trillions of euros in turnover.
The WEF ranks Germany 3rd in its Business Competitiveness Index.


90




Potential sectors to Trade with
Germany





Agriculture and Processed Food Export:

Agricultural and processed food exports from India are likely to set a record this
financial year, despite unfavorable global economic sentiment. There are strong
demand for Indias ready-to-eat and raw food products from foreign market.
Overall exports of agriculture and processed foods might surpass Rs.125000
Cr. by the end of this financial year, said Apeda official.

Trade shows like Anuga has helped Indian exporters tremendously to target their
consumers in European countries where realization is understandably much
higher than that in Indian markets. Hence, more and more companies are
interested in participating in such trade shows resulting into exhibitors ramping
up from 29 in 2001 to 112 in 2011. This year, however, this number would go
further up.





91

In Europe, Germany continues to remain a major destination for rice products,
coffee, dried and preserved vegetables and poultry products.
Source: DGCIS Annual Export


India Export of Agro Food Products
Country Report/Product Group Wise
Value in Rs Lacs
Qty in MT
Country: Germany


2012-13 2013-14
Product Qty Value Qty Value
Guar gum 12,084.87 37,549.03 16,956.65 33,222.12
Dried & Preserved Vegetables 8,102.93 10,008.64 5,853.92 11,459.43
Basmati Rice 15,990.80 8,696.96 9,295.35 8,335.90
Poultry Products 1,786.49 3,697.23 2,282.03 6,118.26
Floriculture 3,715.28 5,675.43 2,841.16 5,928.94
Cucumber and Gherkins( Prepd. &
Presvd)
7,242.14 2,320.85 12,424.22 4,546.35
Fresh Grapes 2,190.12 1,590.33 3,158.24 3,201.57
Walnuts 415.49 1,450.07 404.59 1,977.14
Mango Pulp 1,559.15 1,141.84 24,248.64 1,631.34
Non-Basmati Rice 1,175.42 320.10 1,437.42 582.57
Groundnuts 202.00 168.90 380.08 262.14
Natural Honey 4.69 8.35 119.67 192.15
Albumin( Eggs & Milk ) 0.57 4.97 23.44 192.01
Fresh Mangoes 148.11 88.84 103.67 115.95
Pulses 123.51 70.53 139.75 88.06
Fresh Onions 162.32 14.66 91.12 28.80
Dairy Products 0.80 1.52 0.55 1.90
92

Wool & Woolen Export:
India is the seventh largest producer of wool and contributes 1.8% to total world
production. In sheep population, India ranks among the leading five countries in
the world. However, at 0.8 kg/sheep/year, wool productivity in India is much
lower than the world average of 2.4 kg/sheep/year.
Global trading partners in wool & woolen products

The main woollen items producing states of India are Jammu and Kashmir,
Himachal Pradesh, Punjab, Haryana, Rajasthan, Uttar Pradesh, Uttrakhand,
Gujarat, Maharashtra, Andhra Pradesh and Karnataka.

India produced 46.4 million kg of indigenous raw wool during 2013-14. Out of the
total indigenous raw wool production, only 5 per cent is apparel grade, while 10
per cent is coarse grade. The remaining 85 per cent is used for carpet
manufacturing, which is a major source of export earnings.

93

Wool & Woollens Export Promotion Council
The Wool & Woollens Export Promotion Council (WWEPC) participates in
various international trade fairs and exhibitions, and facilitates member visits and
trade delegations, etc.



Key Markets and Export Destinations
In 2013-14, wool exports (including wool yarn, fabrics, made-ups and
readymade garments of wool) stood at US$ 2326 million
UK, Italy, USA, Dominican Republic and UAE are the major countries for
Indias exports of woollen yarn, fabrics and made-ups, while USA, UAE,
UK, Germany and France are the leading markets for Indias exports of
readymade wool garments.
The US and the EU are the major importers of Indian wool and wool-
blended products. In 2013-14, the US (US$ 33 million) was the largest
market for India woollen yarn, fabrics and made-ups, followed by
Germany (US$ 8.9 million) and UK (US$ 5.7 million)
94

Automobile Components Export:
The Indian auto sector has been experiencing high growth. The Indian auto
component sector has been growing at 20% per annum since 2000 and is
projected to maintain the high-growth phase of 15-20% till 2015.

Exports of auto parts are expected to touch US$ 40-45 Billion by 2020 (more
than a third of output in revenue terms). Major destinations are Europe and USA.
More than 70 percent of auto component exports from India are directed to
famous names like General Motors, Daimler and Ford Motor among others (Dun
and Bradstreet 2006). The said report listed 22 auto component manufacturers
among the top 500 companies in India with combined turnover exceeding US$
3 billion. Imports of motor vehicles and components totalled more than EUR 81.5
billion in 2012 by Germany



The industry is geared to meet the entire needs of the automobile industry like
body and chassis parts, suspension and braking parts, engine parts, drive
transmission parts and electrical parts. Some of the leading manufacturers of
auto components in India are Bosch Industries, Motor Industry Company of
India, Bharat Forge, Sundaram Fasteners, Wheels India, Amtek Auto,
Motherson Sumi, Rico Auto and Subros. 80 % of Indian exports are to global
original equipment manufacturers (OEMs) and tier I companies.

The US remains India's biggest component export market.Exports to Germany,
the second largest market, registered 8.6 per cent increase at $780 million, while
it was up 3.6 per cent to the UK, the third largest, at 580 million.

95

Leather Export:
In view of its immense potential for employment, growth and exports, leather
industry occupies an important place in Indian economy. The sector is spread
across the formal as well as informal sectors and produces a comprehensive
range of products from raw hides to fashionable shoes.
Today, the sector is amongst top 8 export earners for the country and employs
around 2.5 million people. A major part (about 60-65%) of the production is in
the small / cottage sector. Endowed with 10% of the world raw material, the
export of country constitutes about 2% of world trade.

Some of the important leather products exported by India include -
Leather Footwear
Footwear Components (Shoe Uppers, Soles etc.)
Leather Garments
Leather Goods (Including Harness & Saddlery, Leather Gloves etc.)
Finished Leather
Major Market of India's Export of Leather Export of Leather Products (2008-
14)
Country 2008-09 2009-10 2010-11 2011-12 2012-13
USA 342.78 286.89 246.44 251.58 279.7
Germany 307.17 304.46 272.53 329.82 336.69
UK 270.09 248.89 24096.00% 250.65 299.21
Italy 241.07 263.11 25592.00% 285.02 242.6
Hong Kong 98.32 121.43 16570.00% 22697.00% 236.52
(Value in Million US$)
(Ministry of Commerce)

Indian leather industry has the capability to increase its share in global leather
trade. At present, Indian leather exports account for 3% of the global trade with
USA, Germany, UK and Spain as major markets. The leather sector offers a
good potential which Indian entrepreneurs can exploit in Germany and other EU
markets characterised by ever growing competitiveness in terms of price and
quality.
96

Chemical & Pharmaceutical Export:
The pharmaceutical industry in India ranks third in the world in terms of volume
and contributes 10% to the global pharmaceutical production. According to the
Department of Pharmaceuticals, the Indian pharmaceutical industry is pegged
at Rs 810 bn, which includes domestic sales and exports.

India is a globally-acknowledged source of high quality affordable medicines with
a rich vendor base. It is emerging as not only a global manufacturing base of the
pharmaceutical industry, but also as the hub for contract research, clinical trials,
biotechnology and clinical data management services.




In 2012, Germany's chemical production ranked fourth worldwide and was
number one in Europe. Primary products include goods like plastics, lacquer and
synthetic fibres for the production of industrial products, and consumer products
include pharmaceuticals, detergents and cosmetics.

(In USD billion)
2012 2013 2014
(estimated)
2015
(estimated)
Total Market Size 18,600,000 19,700,000 21,220,000 21,840,000
Total Local
Production
39,500,000 40,700,000 41,920,000 43,200,000
Total Exports 70,500,000 73,000,000 75,200,000 77,500,000
Total Imports 49,600,000 52,000,000 54,500,000 56,100,000
(Source: BPI-German Pharmaceutical Industry Association)



97

Since 2005, the amount of chemical products' imports into Germany has
increased steadily and is projected to expand even further. Many of
these chemicals are also imported as raw materials, processed within Germany
and then re-exported afterwards. There are 2,000 chemical companies active in
Germany; approximately ninety percent are small to medium sized enterprises.
Many of these chemical companies are interested in importing raw materials
from reliable suppliers in order to secure their production.

Germany is the second largest market for Indian drug exporters after the US for
the past several years. The $49 billion (Rs2.3 trillion) a year German market,
currently the third biggest pharmaceutical market in the world after the US and
Japan. Currently almost 40% of the $300-350 million worth Indian drug exports
to Germany.

The pharmaceutical exports were worth Rs 384.3 bn and the pharmaceutical
industry is one of the major export earners for India.


















98

Textiles and Clothing:
A long history of manufacturing, innovation and flexibility has made the textile
and clothing industry in Germany one of the most important sectors in the
country.

Germany is a major player in foreign trade with textiles and clothing. The country
is the third largest exporter of textiles and clothing worldwide, registering an
export quota of 42 percent in 2012. At the same time, the country is also the
second largest textile importer after the United States and has become an
attractive market for many textile exporting countries since the 1980s. Especially
in the clothing segment, Germany imports a vast majority of apparel products,
thus offering an appealing opportunity for foreign companies.



In 2012, Germanys textile imports reached EUR 35.6 billion and exports
24.1 billion Euros.
Clothing made up 39% and textiles 61% of the total turnover in 2012.
Most of the imported textiles in 2012 came from Asia (more than 51%)
and the EU (30%).
E-commerce has become a popular channel for buying fashion.
According to a large German consumption and media study, almost 42%
of all online shoppers ordered apparel online. That makes clothings and
shoes the most attractive product group for online shopping.



99

Market Potential
Besides being the second largest textile importer in the world, Germany has
experienced an increasing demand for textiles and clothing in the past years.
The industry turnover stagnated with a growth rate of -1 percent in 2012. While
the demand on many European consumer goods markets is struggling, the
market research organization GfK expects the German retail turnover to grow by
0.5 percent up to EUR 412.1 billion in 2013.

This shows large opportunities for foreign textile and clothing companies to
increase their export volume by expanding their presence in the German market.
Textile companies from around the world will be able to increase their market
share successfully.






















100

Import Regulations:

Almost completely liberalized import of goods into Germany: In general no
import permit needed, but exceptions apply for special goods.
Import duties have been constantly reduced over the past years. In case of
such duties import licenses and surveillance documents may need to be
obtained before importing to Germany
Textiles and steel products from a few third countries are generally restricted
by import quotas and require an import license.
Specific import control regulations apply to products that may potentially pose
a risk to human health, public security or environmental protection (ex: medicine,
weapons or endangered species of plants and animals).
Specific labelling requirements apply to food products, textiles, electrical and
electronic equipment, and dangerous substances.
Packaging: vendor is obliged to take back packaging waste.

Customs and Tariffs
Imported goods must be accompanied by a customs declaration.
Custom duties derive from the value of the imported goods.
Import turnover tax (goods imported to Germany from non-EU-states): 19%
Customs procedure: Release for Free Circulation: Imported goods are subject
to normal customs duties and import taxation. The importer pays the duties and
may dispose of the goods freely.
European Single Market/Common Customs Tariff: No duties in between
member states.








101

8. Result and Findings

On the basis of this comprehensive study, the subsequent findings have been
concluded as the ultimate results for the commonly used international marketing
tools and measuring the effectiveness level for the same.


online Highly effective and used

Trade fairs Moderate effective and average used

Journals and publications Moderately effective and used

Direct marketing (country visit) Average effective and used

References Moderately effective and average
used

Embassy Moderately effective and average
used


India as an enhanced producer of the following products can export to other
countries whereas for the same the market potential in Europe particularly in
Germany is very high. This alignment of supply and demand markets may help
domestic and foreign exporters to make sensible and proper decisions for
exporting these products from India to Germany.






102

Herein, the study drafts a list of products with higher market opportunity in
Germany that encourages the entrepreneurs with providing them an initial
framework to make proper decisions regarding exporting these products from
India; however, some extra intensive and conclusive researches for acquiring
further and detailed information will be required to ensure their realization and
success in this respect.

Agriculture & Processed
Food Export
rice products, coffee, dried and preserved
vegetables

Wool & Woolen Export wool yarn, fabrics, made-ups and readymade
garments of wool

Automobile Components
Export
body and chassis parts, suspension and braking
parts, engine parts, drive transmission parts and
electrical parts

Leather Export Leather Footwear, Footwear Components,
Leather Garments, Finished Leather

Chemical &
Pharmaceutical Export
Lacquer and synthetic fibres for the production of
industrial products, and consumer products
include pharmaceuticals, detergents and
cosmetics.

Textiles and Clothing Apparel products









103

9. Suggestions

In the light of the findings of this study, the research offers the following
recommendations/suggestions.

As online marketing has been very effective for marketing purposes in
international markets due to being ubiquitous and cost effective. Thus, while
working in international market, its suggested to the businessmen to utilize
online marketing tools to make sure their business matches the fast
developing business of 21
st
century.

Its advised to international businessmen to utilize the opportunities provided
by the commercial wing of their country embassy to the target country. This
may help them to scale their business up. At the meantime, ETGPL would
need to take benefit of the embassys support for improving their business.

Its also suggested for companies to focus on product specific trade fair too
as it can help in growth of the business towards a specific direction.

Dependence on reference too much in business is not advisable for the
entrepreneurs, especially when they are newly trying to enter an international
market. However, its beneficial to be use at a lesser extent, finding new
alternatives for the same is more advisable.

Journals and publications are good and effective source of advertising.
ETGPL should also thought about this.

Companies are highly persuaded to focus on German market for exporting
goods from India. As the research has shown, there are much better
opportunities in German market for export of various Indian products. Those
who want to start doing business in German market, must keep in mind to
utilize proper and competitive marketing tools especially at the beginning.


104

Conclusion

A world is moving forward rapidly, the scope for business has become very wide
as the enterprises can work in very large scale worldwide. Since the scope for
businesses get larger at global level, international marketing tools are playing a
very significant role in corporate business world for keeping this development
successful. Proper usage of these tools by investors can scale the businesses
up significantly and can help in their rapid improvement that will lead to success,
but in the contrary improper use of these tools will result vice-versa.

As the research shows an ultimate result for the commonly used international
marketing tools and perception about effectiveness level for the Online
marketing tools or e-commerce which are mostly used and perceived as an
effective international marketing tool.

Proper use of resources at wrong place is the wrong use of resources. As this,
a proper use of international marketing tool for wrong product or place is wrong
marketing tool. So that is must to analyses the market, than should make a
decision about use of international marketing tool.

Germany is one of the countries with great potential for Indian products. The
research shows that there are very high scopes for agricultural products,
automobile components, textiles, lather, chemical and pharmaceutical products,
and woollen products. Despite being a liberal country regarding export of the
goods, Germany is extremely keen and serious regarding the imported products
which have to be taken under consideration.

If business can provide a good quality items and services than German market
could be the best place to export goods and earn lots of things as well as status
also. As Germany is one of the key nation in European country as has a various
strategic advantages.


105

10. Limitation of Study

All studies have limitations. However, it is important that you restrict your
discussion to limitations related to the research problem under investigation.

Sample size taken for primary research is 50 only, due to time constrain,
which seems so less. That will map a brief picture not wide.

To hide some information, respondent might have given a wrong answer.

There are possibility that respondents have misunderstood the question.
And answer given would might be totally opposite than actual.

A secondary research is done on bases of data gathered from third party,
it has many limitations itself.























106

11. Bibliography

Books:

1. Management: A global Entrepreneurial Perspective
By Heinz Weihrich, Mark V Cannice, Harold Koontz
2. International Business Environment
By Francis Cherunilam
3. Business Research Methods
By William G. Zikmund
4. Global Business
By Mike W. Peng, Deepak K. Srivastava
5. International Marketing: A Strategic Perspective
John B. Cullen, K. Praveen Parboteeah

Websites:
http://www.fnf-europe.org/
http://www.countrystudies.us/
http://www.economywatch.com/
http://www.europa.eu/
http://www.mecometer.com/
http://www.ixpos.de/
http://www.trade.gov/
http://www.infodriveindia.com/
http://www.agriexchange.apeda.gov.in/
http://www.exporthelp.co.za/
http://www.india.diplo.de/
http://www.indianembassy.de/
http://www.dgft.gov.in/
http://www.commerce.nic.in/
http://www.bmwi.de/
http://www.export.gov/



107

Annexure


1. Name of Firm

2. Location

3. What kind of international business your company is involved? Mark only
one oval.
Merchant Export

Manufacturing Export

Merchant & Manufacturing Export
4. Which of the following marketing tools does your company use? (You can
mark multiple options) Tick all that apply.
Online

Journal & Publication

Trade Fairs

All of them

None of them


5. Which of the following marketing tools does your company use? If Your
Answer is ''Online"... Grade Accordingly Mark only one oval per row.





) 1 (Least Preferred 2 3 4 ) 5 (Most Preferred
Website
Blog
Email
Social Media
B2B Portals
108

6. For online marketing, which of the following B2B portals do you prefer?
Grade Accordingly
Mark only one oval per row.


7. Which kind of publications does your company use for advertisement? If your
answer is "Journals & Publications"... Grade Accordingly Mark only one oval
per row.


8. How often does your firm participate in trade fairs? If Your Answer is "Trade
Fairs". Mark only one oval.
Yes, always

Yes, most of the time

Yes, sometimes

Yes, Seldom
9. Which type of trade fairs does your company mostly focus on? Mark only
one oval.
General Trade Fairs

Industry Specific Trade Fairs

Area Specific Trade Fairs

Product Specific Trade Fairs

Innovation and Technology Specific Trade Fairs

1 (Least Preferred ) 2 3 4 ) 5 (Most Preferred
General Publications
Industry Specific Publications
Area Specific Publications
Product Specific Publications
109

10. Has your company ever contacted any embassy to ask help for the companys business activities?
Mark only one oval.
Yes, Many Times

Yes, Some Times

Yes, Few Times

Not at all
11. For what reasons does your company usually contact the embassy?
If your answer is
"Yes"... Tick all that
apply.
For business entity verification

For the issue of commercial visa

For taking info. about business opportunities in the target country For
business/product registration
12. Has your company ever done a direct visit of a country for the purpose of international marketing
activities? Mark only one oval.
Yes, Frequently

Yes, Usually

Yes, Occasionally

Yes, Seldom

Never

13. For what business purpose do you visit a country directly? If your answer is "Yes" Tick all that apply.
Too meet with buyer

To visit an expo.

To know about culture of country

For legal activities

Other reasons


110

14. How much do you think that your company depends on references in target country for strengthening
the business? Mark only one oval.
All the time, depends on references

Most of the time depends on references

Sometimes depends on references

Rarely depends on references

Not at all depends on references
15. What do you think about effectiveness of following international marketing tools? Grade
Accordingly....
Mark only one oval per row.

16. Among these tools rate the tools of the expenses incurred by you?
Rate Accordingly...
Mark only one oval per row.

(Least Effective 1 ) 2 3 4 ) 5 (Most Effective
Online Marketing
Trade Fairs
Journals & Publications
Embassy
Direct Visit to Country
References
Highest Money
Spend
Average Money
Spend
Lowest Money
Spend
Online Marketing
Trade Fairs
Journals &
Publications
Embassy
Direct visit to country
References