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I.

PRODUCT

a. Product Definition

The product is Camu Camu Marmalade presented in 250 gram jars, with curled
lid and labeled. The main ingredient, camu camu fruit pulp, grows in the
Peruvian Amazon and has unique characteristics such as the level of ascorbic
acid. By means of a mixing process, the other ingredients, sugar, pectin, sodium
hypochlorite and acid are added. Camu camu jam is catalogued as a gourmet
product, consumed as a complement to breakfast and to make exotic desserts.

b. Tariff Heading

c. Commercial Name

Camú Camú Marmalade


d. Common name / Scientific name

Myrciaria dubia

e. Composition

The product is Camu Camu Jam. It is a product made from pieces of ripe camu
camu fruit and sugar. Concentrated by heating, bottled in glass containers of 250
grams with curled lid, sterilized and labeled. The fruit content is 50 percent of the
final product. The jam has the color and flavor characteristic of the fruit. The shelf
life of the product is two years. The product will be sold in the United States
through brokers in specialty stores and supermarkets.

Source Book: "La composición de los alimentos peruanos", author COLLAZOS,


Instituto de Nutrición-Ministerio de Salud. (ADEX Library)
Marmalade Nutritional Chart

The substitutes or complementary products to the Camu Camu jam are the jams
of other fruits with similar nutritional values (rich in Ascorbic acid) such as
pineapple jam, orange jam, strawberry jam, Maracuya jam, lemon jam, Guava
jam, among others.

f. Benefits

Camu Camu Marmalade rescues the nutritional benefits of Camu Camu in its
natural state, with the high carbohydrate content of the jam.
The main use of this product is as a complement to breakfast. Its high energy
value provides energy for people who consume it and the high value of ascorbic
acid, better known as vitamin C, is necessary for the production of collagen,
which is the largest protein component. Vitamin C also aids in the formation of
hemoglobin which serves as an oxygen-carrying element to the blood cells. It
also serves as an antioxidant and enhances the immune system for optimal
resistance against viruses and infections.

II. GLOBAL DEMAND


a. Countries that most demand the product

As we can see in the table the countries that most demand Camú Camú is Japan
and the United States in greater percentage with 42% and 32% followed by United

Kingdom with 4.83%, Chile 2.56%, Germany 2.50 %, Australia 1.96%, Netherlands
and others with 5.95% respectively.

b. Projection of World Demand


PROJECTION OF DEMAND UP TO 2022 (US$)
countries 2017 2018 2019 2020 2021 2022
Estados 160245.98 174458.2 189117.48 205408.08 219587.17 234653.06
Unidos

Canadá 104508.25 113777.08 123337.49 133961.79 143209.02 153034.6

Reino 48770.515 53095.973 57557.495 62515.501 66830.877 71416.148


Unido
Otros 34836.082 37925.695 41112.496 44653.929 47736.341 51011.534

Source Feasibility study thesis of a Camú Camú jam plant in Amazonas.

As can be seen in the following table shows the projection of the demand for
Camú Camú up to 2022 US$. The United States is the country with the highest
projection with 234,653.6 US$ that is expected to reach until 2022, followed by
Canada with a projection until 2022 of 153,034.6 US$, and with 234,053.6 US$.
menos proyección Reino Unido y otros países con un monto de 71 416.148 US$
and 51 011.534 US$ .

III. WORLD OFFER

a. Countries that offer the product the most

As we can see in the table of the countries that most offer Camú Camú jam
product, between 2018, is leading the United States with 13,442.33 US$, followed
by Chile which has an offer of 6,807.84 US$, Canada with 988.11 US$, Puerto Rico
with 704.48 US$, Australia with 548.90 US$, Netherlands with 50.213 US$, Spain
with 223.6 US$, Mexico with 180.81 US$, Peruvian Free Zones with 128.51 US$
and other countries with 355.63 US$ in the Camú Camú jam offer as we can see in
this table the bidding countries have a high or low offer depending on the year
and the market.

b. Projection of the Global Offer

IV. INTERNATIONAL MARKETING PLAN SCHEME


a. Short- and medium-term objectives

Short-term objectives

- Achieve optimum production yields


- To train the personnel in the elaboration of the jam.
- To achieve the acceptance of the product in the American market.

Medium-term objectives

- Consolidate a portfolio of fixed and trustworthy clients in the U.S.


- Achieve a continuous and sufficient supply of raw
material.
- Permanently improve production processes to reduce
costs.
b. Marketing mix

Product

Product Design: It is a thick mixture of fruit and sugar (and often pectin),
which is cooked to leave pieces of fruit soft and almost uniform - the
texture is one of thick purée. It may also contain an amount of fruit rind,
usually some citrus in this case camu camu.

Packaging: the glass bottle, the lid and the label. The packaging would
be in corrugated cardboard box.
In the design of the glass container should be considered various details,
such as are:
Container capacity: in this case 250 gram containers will be used.

Glass colour: the natural colour of the glass was chosen since a good
appearance of the product is required for sale.
Temperatures and pressure: he container must withstand sudden
changes in temperature during washing, filling or heat treatment.
Shape and dimensions: It is difficult to choose completely free form,
since these are already clearly imposed according to the rules,
commercial customs or machinery to be used.

Label:
There are general labeling requirements, according to FDA (2015). There
are two ways to label containers:
Place all required labels on the main display panel.
Place some data on the main display panel label and the rest of the
required labeling on the information panel.
The main display panel should contain the product name and the
declaration of net content while the labelling panel will contain:
nutrition information, name and address of the manufacturer (packaging
plant or distributor) and the declaration of ingredients.
Price

The FOB sale price is 2 dollars per 250 gram bottle. The pricing criterion
is based on historical FOB prices per kilo of jam that the United States
has imported over the past 5 years (see table 5.25). Also, analyzed our
costs that will be detailed in chapter IX. Finally, it takes into account the
differentiation of our product, which is catalogued as exotic and
gourmet for having as main input the Camu Camu, Amazonian fruit, for
this reason, the fixed price is above the average price of strawberry
jams, apple, peach and other fruits known.

Plaza

Our company will be in charge of the production and export of Camu


Camu jam to the American market, the transfer of the product to the
country of destination will be through the sea and the product will be
sold in first instance in specialized stores and according to the
acceptance we will pass to supermarkets.
Promotion

As for the promotion of our Camu Camu Marmalade, this will not be
direct, but the broker will carry out through promoters in the main
supermarket chains and stores of selected products, in those places will
be held the tasting of the jam so that our target audience can see how
pleasant the taste of our product. This entire introductory campaign will
last for 6 months. Elaboration of a web page where potential buyers will
be able to request proformas and make their orders through the net.
Participation in international fairs of agricultural products to show the
quality of our product, in addition to serving as advertising around the
world. As for the form of sales, the marketing of the product will be
done in the form of cash payment.
Direct Export

From the second year onwards, transactions will be made directly between
the Peruvian seller and the Japanese importer/wholesaler, which
represents the additional advantage of the latter being able to offer
promotional services. Entering the market through an agent or broker (first
year) and then changing channels by negotiating directly with the
importer/wholesaler (second year) brings as advantages: cost reduction
and revenue improvement, simplification of the intermediation chain and
therefore greater efficiency.

Indirect Export

In the particular case of the camu camu jam product, the services of an
Agent or Broker will be used during the first six months, who will act as
mediator between seller and buyer to facilitate commercial transactions.
For the seller it is of vital importance that the agent watches the effective
arrival of the product to the distributor and verifies the conformity of this
one with the one, looking for the strengthening of the confidence between
seller and buyer (distributor). With this, what is sought is to assure the
entrance to the market in a safe and satisfactory way, guaranteeing the
buyer the delivery of the product in agreed quality, quantity and time.
Roads of Communication and Transport

The raw material will be transported from each of the producing areas
to Lima through a land transport agency and the output of the product
to the different states of the U.S. is through maritime transport using
the services of a shipping company. Transport by truck, given its great
flexibility (door to door movement) is the most appropriate way to move
small volumes over relatively short distances.

The means of transporting jams will be determined by the distance, time


and cost of travel and the characteristics, requirements and value of the
product. All means have comparative advantages and disadvantages
over the others in terms of transport capacity, speed, safety, cost of
service and flexibility.

Maritime transport is the main means used in the international trade of


processed fruits and vegetables. It is considered the most economical
and specialized means for exporting large quantities of both fresh and
processed products. Depending on the distances and volume to
mobilize, the operation is carried out in refrigerated ships or in
containers equipped with refrigeration systems. Table 55 shows the
characteristics of maritime containers.

Contenedor Longitud Ancho Alto Volumen


(metros) (metros) (metros) Total
(metros3)

Convencional 20’ 5.90 2.35 2.39 33.2


Convencional 40’ 12.02 2.35 2.39 67.7
Refrigerado 20’ 5.49 2.26 2.27 28.2
Refrigerado 40’ 11.61 2.26 2.23 58.8
Characteristics of Maritime Containers

Required Documentation
According to PROMPEX (2015), the documentation required for the jam

export process is as follows:

Commercial Invoice: Where it must appear the name of the importer,


description of the merchandise, price, place and definitive conditions of
sale.
Packing List or "packing list": Detail of all goods shipped or all
components of the same merchandise..
Bill of lading: Receipt that proves the shipment of the merchandise,
without this title the merchandise cannot be picked up at the place of
destination. According to the means of transport takes the specific name
(Bill of Lading if by sea or Airway Bill if by air).
Certificate of Origin: Allows to identify and guarantee the origin of the
goods, allowing exporters to make use of the tariff preferences granted
by the importing country. This document is issued by the Chamber of
Commerce of both Lima and provinces.
Quality certificate, issued by DiGESA for food and beverages. For other
types of products the certificates can be issued by a company authorized
by INDECOPI. International quality certificates can also be obtained
through private certifiers such as SGS, Bureau Veritas recognized
internationally.

V. COUNTRY OF DESTINATION
Within the political aspects
Of greater incidence we have: a. The Free Trade Agreement is a set of rules
that the three countries agree to sell and buy products and services in
North America. It is called a "Free Trade Zone" because the rules that are
set out define how and when tariff barriers will be eliminated to achieve
the free passage of goods and services between the three participating
nations; that is, how and when permits, quotas and licenses, and
particularly tariffs and tariffs, will be eliminated, this being one of the main
objectives of the treaty. In addition, the FTA calls for "conditions of fair
competition" among participating nations and offers not only protection
but also enforcement of intellectual property rights.
Country of Export Destination
General Data of the Country
Geographic Location and Map of the United States
Graphic.

Geographic Location
The United States of America is located in the center of the region.
North of the American continent. It is bordered on the north by Canada, on
the South to Mexico, east to the Atlantic Ocean and west to the Ocean
Pacific.
Consumer Profile in the Target Market
Market Characteristics
The U.S. is not a single market. Considering the size of the country, its
diverse geography, the varied ethnic and religious composition of its
population, the social, cultural and income differences, we have as a result
the existence of numerous different markets or sub markets, which
although they have common patterns among them, present at the same
time their own characteristics in terms of tastes, needs and behavior. This
existence of sub markets makes it possible to maintain that there will
always be a niche in which to venture, as long as the product is
competitive. Thinking of the U.S. as a market is a generally mistaken
concept, the size of the market and probably the volume of our offer will
make it advisable to make efforts in a region, a state or perhaps only in a
city. It is a market in permanent evolution, very market in permanent
evolution, very permanent evolution, very competitive, open, and with a
great offer of goods and services, result both of its great internal
production and the enormous influx of imported products. Due to this
competitiveness, a new exporter will need to develop marketing strategies
that not only highlight the attributes of its product but also differentiate
itself.

CO POTENTIAL COMPETITORS
Is any company dedicated to the marketing of jam with Capacity and
resources for export to the United States of America.

Threat of substitute products

Within Substitute Products we have the threat of jams made from various
fruits such as: orange, strawberry, pineapple, passion fruit, among others.
However, the advantage of Camu Camu Marmalade is that the substitute
products have lower concentration of vitamin C per unit of measure. In the
niche market of Natural Health Products, the competition is acerola and
rosehip, two powerful sources of natural vitamin C, with prices relatively
similar to those of camu camu, but also with less vitamin C content per unit
of measure.
Market trends
For some years now, there has been an increasing trend towards natural
products, which greatly benefits the agro-industrial sector, the sector in
which our project is developed. There is also a tendency to highlight the
beneficial qualities of natural products such as cat's claw, maca, etc., in our
case would be the high concentration of vitamin c that roughly exceeds the
substitutes. However, not all current market trends are good. There is a
constant change in people's lifestyles, everything is faster and faster you
have less and less time so less and less people sit down to eat breakfast,
even less a lunch, this trend definitely reduces the consumption of
products such as jam.

Economy
Exports of Peruvian jams and purees to the United States have been
increasing in recent years, for example, in the period 2012-2015 increased
by about 5% to reach sales of almost US$ 5 million, reported the
Commercial Office of Peru (Ocex) in Los Angeles (United States).
Additionally, only during the first five months of 2016 Peruvian exports of
this product have increased by 17.2%, attesting to the positive trend that
currently exists in this area for Peruvian products, he said.
Peruvian supply of jams and purées is concentrated mainly in grape and
strawberry jams, accounting for about 85% of production.
U.S. market According to data from the U.S. International Trade
Commission (USITC) imports of these products to the U.S. market
experienced an increase of 3.1% in 2015 over the previous year, reaching
sales of more than US$ 242 million.
Approximately 1.2 billion pounds of fruit spreads (jams, jellies, citrus jams,
fruit butters, and honey) are produced annually in the United States. Per
capita consumption is nearly 4.4 pounds per year.
The flavors most demanded by U.S. consumers add dozens of options and
varieties, from grape jelly to the most exotic chocolate jam.

Sector analysis

Current Competitors
At present there are no companies dedicated to the export of Camu Camu
jam, but to the manufacture of this locally. Potential competitors are
Peruvian companies that currently export jam to the United States..
Client bargaining power

Customers do not exert pressure on the selling price. Given the nature of
the product that is not geared to satisfying basic needs, the bargaining
power of customers does not exist as they are not affected in any way by
their existence or provenance. It is a product that comes from the realm of
tastes and preferences and therefore of unpredictable behaviours.
FODA of the destination country

FORTALEZAS DEBILIDADES
• En el Perú es una frita estacionaria.
• Beneficioso para la salud.
• Ser nuevos exportando al extranjero y no ser
• Fruto con mayor concentración de acido ascórbico conocidos.
• Producto exótico valorado por los estadounidenses. • Fruto poco conocido en el mercado.
• Bajo costo de producción en estacionalidad. • Falta de infraestructura en el transporte.
• Propiedades terapeuticas de la vitamina C. • Ausencia de cultura exportadora en la zona.
• Incremento de OPORTUNIDADES
las empresas dedicadas al acopio yFODA AMENAZAS
• Baja capitalización de los agricultores.
procesamiento de Camu Camu.
•Creciente demanda internacional de productos • Potencial incremento de los productos sustitutos.
naturales.
• Crecientes exigencias fitosanitarias en los mercados
• Principal pais consumidor de mermeladas. internacionales.
• El 50% de los alimentos consumidos en EEUU son los • Riesgo de depredación de recurso por deficiente
envasados. proceso de recolección.
• Ferias Internacionales donde se puede conocer el • Presencia de plagas y enfermedades en la
producto domesticación del camu camu.
• Base para el desarrollo agroindustrial de la • Aparicion de potenciales productores de camu camu
Amazonia. en la región (Bolivia, Brasil y Colombia).
• Acuerdos internacionales (TLC, Mercosur)

Comparative advantage

The United States tends to specialise in the production and export of those goods
which it manufactures at a relatively lower cost than the rest of the world. We can
translate this into U.S. exports of weapons, electronic equipment, vehicles,
medical technologies, agriculture, etc. And we see how one of the actions
implemented by the United States to remain an economic leader has been the
implementation of a technological change, that is to say, to develop the
technology in terms of production in order to obtain advantages in the different
markets and thus increase its production limit to compete with China, which has
the number one position in exports at a global level.

Advantage of the United States over the World:

 Technological change.
 Education and research
 Investment Programs
 Machinery
 Cheap labor
 Government interventionism
 Infrastructure
 Dollar

Strategies for entering the international market

Product presentation

Camu Camu Marmalade will be sold in small glass jars of 250 grams each, we have
selected this size taking into account the sector to which our product is directed to
be for NSE A and B.

Price Differentiation

The price that Camu Camu Marmalade will have in the United States will be a
higher price in approximately 15% of the rest of the jams, since one of our
differences with the competition will be the price that makes it a more exclusive
product.

Natural and Amazonian

Today the tendency of Americans is to consume products called "light" or natural


products, this product is distinguished by being a new product on the market and
made from an Amazon fruit, almost exclusive.

According to what has been mentioned, our product is exclusive for the American
market, and with a sign of distinction against the competition, which will allow it to
be progressively known and accepted by our target audience.

VI. DEMAND IN THE DESTINATION COUNTRY

This diagram, made by Siicex, indicates that the United States ranks second as a country that
imports Camu Camu, with a percentage of 31.78% in 2017.
This diagram shows the evolution of Camu Camu product exports, in which the United States
is in second place from 2013 to 2017.

VII. OFFER IN THE DESTINATION COUNTRY

Import

As we can see in the table the United States is in first place of major countries that
import Camu Camu, with 18% and 333.59 million U $.

Main supplying countries


The main countries that export Camu Camu to the United States are those that
can be seen in the table, with Canada in first place with 66% and Peru in tenth
place with 2%.

VIII. LOCAL PERUVIAN OFFER

Peruvian export of the product


As can be seen in the first table of Main Exporting Companies the one that
denotes is EMPRESA AGROINDUSTRIAL DEL PERU S.A. with 31% followed by
ECOANDINO S.A.C 30% , sending them to the main markets of Japan that buys
31%, followed by South Korea with 22% and the United States with 19%.

Production and collection centres

The national market for Camu Camu is incipient, only a few years ago it has shown
its presence in national markets in the form of direct consumption, except in its
own locality (Iquitos) and in a more incipient form in Pucallpa, although recent
research has confirmed that consumption in these regions have increased.
They also obtain products such as jams, yoghurts, sweets, ice cream, and liquors,
which are marketed locally. During the harvest its presence is significant in the
markets of the city, the demand for camu camu is permanent but scarce most of
the months, it is important to note that the population is often unaware of the
high citric acid content of this fruit.
In the national market, fruit enters gastronomy, retail (markets, shops and
supermarkets) and processing. In the future, the use of Camu Camu in sauces,
syrup and jams is expected to increase
.
VIII. PRINCIPALES LUGARES DE PRODUCCIÓN

• In Iquitos, the price of fresh camu camu to the consumer oscillates between:
Retails /. 1.50 a 2.0 kg.
WholesaleS/. 25 a 40 (25kg.)

Prices in Commercial Stores:

• In Lima, the price of camu camu varies between S/. 15 to 20 per kilo of fresh
Camu Camu fruit, as well as liquid consumption.

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