LOGISTIC PROJECT

Course: Logistics and Marketing

Jovel Gomez Juan David

Montoya Juan Camilo
Lamprea Julián David

Universidad Politecnico Grancolombiano

Faculty of Business, Management and sustainability
Bogotá D.C
 11/04/2021
ABSTRACT
During the product research process we found that there was a gap in the market for

healthy products and that it was a new flavor since generally all these products have a

flavor that characterizes them, when we found this opportunity we decided to take

advantage of it by implementing coffee as the main ingredient for our new formula of

healthy cookies low in sugars. The project consists of the following steps: Problem

Statement: The first step consists of choosing a product (non-commodity) with export

potential and explaining the problem or situation around this product. Why this product is

the best option to be exported? How will the export of this product contribute to the

Colombia’s competitiveness? Also, a theoretical framework should be included to explain

the basis of the research, as well as to justify the potential of the chosen product.

Development of the work: This step consists of developing a marketing pre-selection

matrix to select a country to export to and to think about the potential of the chosen

product. Select a country for export and think of a brand name for the product. This is

followed by market segmentation based on market research. Next, an international

marketing plan is created and, finally, an international logistics and distribution plan.

Analysis of results: At this level of the project, the student must analyze the results of the

research and propose an international marketing and logistics strategy to be competitive in

international markets, as well as to take advantage of the benefits of free trade.

Competitiveness is a process so we must innovate by taking products that already exist and

improving them is the best example of product reinvention.

 INTRODUCTION

According to the World Trade Organization, Colombia has been the third largest exporter

of coffee in the world with 9.59 million bags. The main export destinations are the United

States, Japan and Belgium as we can see our target market has a fascination for flavor so

our product is in high demand. The following work was created to explain our export plan

where we use all our knowledge in logistics to bring our product that we hope will

revolutionize the U.S. market during the research process we have found that healthy

nutrition cookies for high performance athletes have an unpleasant taste so we decided to

use coffee as Colombia produces the best quality coffee in the world proven by the WTO.

Our company is focused on distribution of coffee cookies sweetened with stevia and a high

quality of nutrition for Athletes ,Based on previous investigations we could identify that our

market objetive is united states because according with the stats of exportations from 2018

growing up 8% to 2018 of production that healthy products was exported to usa into

another's advantage is the actual tlc with usa for this reason our product join with 0% of

taxes,the exchange of dollar currency is mutual benefits for the two parts because we recibe

$3.593.500 per one dollar.

Objective

objective general: To offer our customers the option of tasting a cookie with multiple

health benefits based on sagu floor and the best colombian coffee beans in a cookie that is

simply unique.

objective specific:

● create a new market in the united states where we can distribute our product with a

very high nutritional value

● Our company wants to provide a better innovation and health experience with our

product by making the buyer consume our

● It will be a logo, a slogan, a promise of value (healthy - Natural)

Branding Strategy

❖ Color Palettes:

● Blue Our brand is represented by the color blue, since it transmits calm and

confidence in what we do, offer and teach, show and is reflected in our daily

content, product and platforms to our clients or consumers.

● The color pink, provides and represents softness and elegance, this is reflected in

our cookies since they are soft and like all delicate cookies, not to mention that

elegance is seen in our type of delivery and logo

 ● Brown: This color represents naturalness but also food, therefore it is chosen in

order to associate it with our biscuit manufacturing products (coffee and brown

sugar) representing healthy and natural foods.

● Identity: The objective of our brand is to transmit to our, Followers, viewer,

consumers, clients, etc., a feeling, sensation and emotion of naturalness, health,

elegance and confidence so that the person who decides to buy, follow or see us,

wants keep learning, buying, feeling sure of the quality of the product that we are

offering and that person consuming.

● Typeface: (SCRIPT) Italic type is ideal for logos, large headlines and also for small

details to give a nice touch to something handmade and for this reason we choose

this typeface for our brand.

● Publicitary estrategy

Our advertising strategy to publicize our product will be as follows:

• Initiative and advertising channels, (Website, the website will be informative, educational

for our ideal client)

• Facebook eh Instagram (Generate valuable content for our ideal client)

• Reels (manufacturing processes)

• Post (of the benefits of the cookie)

• Carruceles (where testimonials from our clients are evidenced)

• Videos (packing and packaging processes)

• Blog (content will be written about the benefits of the cookie for our ideal client)

• information (on daily consumption to obtain greater benefits)

• Advertise relevant ads on Facebook segmenting our ideal client, generating traffic and

consideration for our website

• Google, generating traffic to our website

• We are going to make a sales funnel where it begins in the following steps, irrelevant use

that directs to a landing page, on the landing page, there will be the product, the description

and then the purchase can be made through paypal payment

• The arrival of the product will be made within 24 hours that began at the time you made

the payment

❖ Workforce

● Customer type

Age: (16 - 50)

Gender: Male, Female and Unknown

Location: United States

Country: United States ,Miami (Florida)

● Income 2000 USD / Month

Our product is focused on people who want to maintain or lead a healthy life, having a

commitment to their body and lifestyle, which helps prevent diabetes, obesity,

cardiovascular problems and dental caries, which are some of the diseases that can be

obtained by consuming high levels of sugar and thus we can provide a higher quality of life

and less risk of contracting this type of disease.

● Product Adaptation:

We constantly carry out surveys related to the product, service (handling of applications

such as shipping, order and others)

Apart from this, we also offer a message page so that customers, followers and viewers can

leave their concerns, complaints and claims in order to clarify their questions and also have

a better relationship.

All this gives us a better analysis after the launch of the product to know if there were sales,

how many people react to the ads, how many only see it and thus know if our product is

adapted correctly to our buyer person

❖ Key Words

● Buyer Person

The ideal customer will be the person who buys a certain product or service because they

have found in it the perfect solution to their problem or need and, in addition, they meet
these 4 requirements: They are satisfied with the product or service that has solved their

problem or need.

● Funnel

Instrument for transferring liquids to narrow-mouthed containers without spilling them; It

consists of a hollow plastic, glass, porcelain or metal cone with a protruding tube-shaped

apex; It is used by inserting the tube into the neck of the container to be filled and leaving

the wide part of the cone, through which the liquid is poured, on the outside of the

container.

● Branding

Is used in marketing that refers to the process of making and building a brand (in English,

brand equity) through the strategic management of the total set of assets directly or

indirectly linked to the name and or symbol (logo) that identify to the brand influencing the

value of the brand, both for the client and for the company that owns the brand.

● Healthy

● Biscuits

● Coffee

❖ Internationalization mode selection

● New Innovative business model : It is an innovative product because many times we

find healthy cookies in the market based on oatmeal, coconut, almonds. These

cookies are made from sagu flour characterized by offering benefits such as
 containing antioxidants, reducing blood pressure, improving digestion, increases

body energy and is ideal for athletes as it is rich in carbohydrates that through

metabolic development provides energy to the body. It contains coffee extracted

from the Colombian lands, famous for its aroma and flavor, which is very desirable

worldwide for such characteristics. As you can see in the subheading is a product

that has similar or similar products, but not of these characteristics in the

international market, since the vast majority are handled with whole wheat flour

and/or oats.

International trade terms

For the celebration of the commercial exchange of our product towards the United States

from Colombia we must respect the Rules of Origin and Origin Procedures but that are

these terms mainly, They are general and specific provisions of the FTAs that establish the

technical criteria for a product to be considered as originating from a State party to a Trade

Agreement, in order to benefit from the negotiated tariff advantages. If these rules are not

respected the merchandise will be returned as our cookie is a 100% Colombian product and

the ingredients we use are Colombian, there is no problem.

For the commercialization of our product we have the invima registration that is

homologable in the United states to have adequate industry protection. In the United States
the norms are stricter and ask for a greater control but we have the advantage that the

invima registration is homologable.

Export Logistic Cost

The logistics costs are based on 18 thousand units of biscuits distributed in 720 packages

containing 4 units, departing from Bogota by land to the port of Cartagena from where it

handles less transport time that is a total of 9 days and less frequency of arrival of ships that

are every 7 days to the Miami/United States post. Apart fr U om the costs involved in the

maritime environment, it is necessary to comply with the sanitary costs guaranteed by the

Invima that inspect the cargo in order to comply with all sanitary regulations.

There are 2 types of pallet that helps us load and resist our product for its respective export

process, this is known as a universal pallet, since it has measurements of (1,200 x 1,000

mm), weight of 25 kg and its load resistance capacity is 1,200 kg, for the capacity of 22 and

a half boxes with a content of 33 packages, in which each package contains 6 small but 4

cookies, meeting our monthly shipping target.

Export Costs Concept

Unit Cost : 1,77 USD
Exw value: 1.274 USD
DIRECT COST
Palletizing : 10,92 USD
Local Exporter M : 36,84 USD
Documentation : 2.241 USD
Local Transportation : 434 USD+
Warehouse : 40 USD
Preshipping Manipulation : 526,32 USD
National Insurance : 29,67 USD
Bank : 8 USD
Agents : 11,51
INDIRECT COST
Administratives : 500 USD
Capital Stock : 27,42
COST OF THE DISTRIBUTION IN EXPORTING COUNTRY
CIF : 6.411 USD

3. Members of the logistics distribution chain

international distribution is the result of this logistical process that places the cookies in the

U.S. international market according to the terms negotiated between the seller and the

buyer.

With good logistics and international distribution, the time, price and risks in transporting

the goods will be reduced and customers will be more satisfied.

The distribution will be by the customers of the wholesale stores that will make us a large

order and therefore it will be easier the issue of distribution when they ask us through social

networks the form of distribution will be through these naturist stores since we do not have

a fixed point of sale in Miami but we will be able to sell our products in Miami.

The strategy according to the destination country’s requirements

Unite State

In order to define our country of destination, we had to carry out a study that was reflected

in a matrix where we defined several important aspects of our export. One of the reasons

why we chose the country of the United States is because of its growth in the fitness

industry (foods low in fat, sugars, dyes, additives and others) and confectionery.

Apart from this, we can say that the currency in these cases can benefit us, since we would

be receiving a profit from its currency to be able to continue with the process and

development of our product, giving us a better to continue with a better preparation,

machinery, personnel and others and on the other hand its high export value is exposed in

the matrix giving us a clear signal of opportunities, benefits and profits when exporting

such a product in this country

Miami

Our objective when selling a product like this in a more specific city like Miami is due to

its high rate of fitnes who like to lead a healthy life, taking into account the knowledge that

such a life is not only due to exercise, but not because of the awareness they get from

knowing that food and rest are part of leading a healthy and long-lasting life.

Apart from this, it is important to say that in Miami there is a high percentage of people

who are part of the famous life where it can be observed and reflected that these people

maintain a healthy life in matters not only aesthetics, but also for fitness and life. This

motivates since more people join in one way or another to want to obtain a healthy life,
improving their physical appearance, their mentality, vitality, energy, passion, commitment

and other approaches that allow us exercise, rest and nutrition to obtain a better life quality.

Maritime

Incoterm / Cif

We decided to implement export by sea since many of the benefits presented by this

medium are complementary to our objectives, times, costs, shipping, protection and others,

providing help both to us and to our clients since we take into account our obligations,

commitments and responsibilities with our clients and being aware of their responsibility,

obligations and others as buyers.

Container

Taking into account that our product is considered not fragile, neither with a high index of

danger, heavy load or others, we decided to carry it in a 20 feet dry container since our

product is relatively small compared to other products that require a type of container

Different from us it is better to have this one, since it satisfies our need for the export of the

product, however our objective is also to incorporate it with other companies since renting

one of these would be expensive and in consideration we prefer to ally ourselves with other

companies, brands or industries to export in this way, reducing costs and providing joint

help with those companies to export in this way.

Distribution Channels
We choose the indirect channel, since our objective is to start making our product as a

business opportunity arises since we can make a budget for everything and we can make

our delivery to distributors and they to wholesalers and retail stores with the so that our

product can reach more people, giving the opportunity to know the healthy gastronomic and

pastry quality for all those people who want a healthy life and within reach of any place

Types of intermediaries

As the type of intermediaries we decided to choose the distributors since they provide

security and confidence to our brand, product, company and staff since they are interested

in obtaining a closer relationship with customers and suppliers, apart from this it is

important to know that they obtain the product and wait until they sell it all, these benefits

us by knowing that part of the types of intermediaries are not going to sell or take more

products from the competition to the market and thus obtain an advantage and profit on that

situation and decision by the distributors.

Conclusions

we as a company found several points during the different stages of our project we

evaluated that one of the barriers to generate an export process requires a high level of

leverage because the investment to export is significant in terms of money the interest rates

in Colombia are not favorable for entrepreneurs to compare our target country which is the

United States we found that the interest rate in that country is close to 1% EA to conclude
we believe that the Colombian government should offer better rates to have a greater

economic opening.

The growth that healthy food has been having today creates great opportunities for

emerging products. United States in its data proves to be a good place for flours, coffee

products that could enhance our product in the market , and more in a city that has a great

diversity of cultures because of the welcome that it has to people from other countries and

that within the perceived world of social networks , is a great environment where people

care about their image and their health.

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