BUSINESS LEVEL STRATEGY

VISION
 To be recognized as the main supplier of high quality and sustainable
Peruvian garlic in the Mexican market.

MISSION

 To give our customers in Mexico a consistent supply of premium

Peruvian garlic, focusing on customer satisfaction, sustainability and
social responsibility.

GENERIC STRATEGY

 Overall Cost Leadership

The Overall Cost Leadership strategy is based on offering products at

lower prices than competitors while maintaining an acceptable profit
margin. This option is considered the best option for our garlic export
business to Mexico because of its ability to differentiate us in the market,
increase profitability by reducing costs, better withstand competitive
pressures and take advantage of growth opportunities by capturing a
larger market share.

Strict cost control will be implemented and continuous capital

investments will be made, access to the necessary capital will be
secured to maximize operational efficiency and ensure effective
allocation of financial resources, which will allow for long-term
partnerships and agreements with Peruvian garlic producers. This will
provide stability in procurement costs and ensure a steady supply of raw
materials at competitive prices. Optimisation of the logistics and
distribution chain, as well as transport routes, thus minimizing the risk of
obsolescence or shrinkage.

Intense work supervision: Establishing a structured organization and

assigning clear responsibilities to staff, ensuring there is constant
oversight of processes to ensure efficiency and minimize operational
costs.

Low cost distribution system: Development and implementation of an

efficient and low-cost distribution system, outsourcing processes,
optimizing routes, consolidating shipments and using supply chain
management technologies to reduce costs associated with distribution.

Frequent and detailed monitoring reports: Detailed control reports will be

generated on a regular basis to monitor performance and detect areas
for improvement in terms of efficiency and cost reduction.
 Structured organization and clear responsibilities: A clear organizational
structure will be established and specific responsibilities will be assigned
to each team member, ensuring efficient work distribution and increased
productivity.

OPERATIONS STRATEGY

a. OPERATIONS STRATEGY
i. MAKE OR BUY DECISIONS
 MAKE OR BUY THE PRODUCT: BUY THE PRODUCT [13]

[14]

In this scenario, the choice is to purchase garlic rather than

engaging in its production. Our company places a premium on
cost-effectiveness and channeling resources toward core
strengths. This decision is prompted by:

Control:
By deciding to purchase garlic directly, we give up some control
over the production process and product quality compared to in-
house manufacturing.
However, By choosing reliable suppliers and setting clear quality
standards, we can maintain effective control over the quality of the
product that reaches our buyers. In addition, by focusing on
purchasing, we can focus our resources on areas where we can
exercise more direct control, such as distribution and marketing.

Flexibility:
Buying garlic gives us greater flexibility to adapt to changes in the
market and customer needs. Because we are not tied to specific
production facilities, we can easily change suppliers if the need
arises or if we find more competitive options in terms of quality
and price. This ability to change quickly allows us to remain agile
and competitive in a dynamic business environment such as
international trade.

Investments:
Product manufacturing involves considerable investments in fixed
assets and human talent, from the acquisition of machinery and
equipment to the hiring and training of specialized personnel. By
choosing to buy garlic instead of producing it in-house, we avoid
the need to make these investments and can allocate our financial
and human resources to other strategic areas of the company,
such as market expansion or supply chain optimization.
Choosing to buy garlic instead of growing it implies a lower capital
investment by avoiding significant expenditure on land,
infrastructure and farm machinery. [13]
 Moreover, by focusing on procurement, the company can
strategically redeploy its financial resources to areas such as
technology or market research, thus improving its global
competitiveness, while concentrating on areas where we can
exercise more direct control, such as distribution and marketing.

Risks : [14]

By choosing to purchase garlic, we mitigate these risks by

transferring part of the responsibility and exposure to our
suppliers, who assume certain risks associated with the
production and delivery of the product.

There is a risk that suppliers may not be able to meet required

supply volumes or face quality or logistical problems affecting the
availability or timely delivery of garlic. This could result in supply
chain disruptions and affect the ability to meet sales commitments.
[14]

Disadvantages of this risk may include:

Disruptions in the supply chain affect the availability of our product

- garlic - to meet sales commitments. This could result in delays in
deliveries to customers, which in turn could affect customer
satisfaction and the company's reputation.

They can lead to frustration and dissatisfaction among customers,

especially if they rely on garlic supplies for their own business
operations. Failure to meet delivery commitments could damage
customer relationships and lead to loss of business to more
reliable competitors.

It can generate additional costs, such as sourcing alternative suppliers, express

transport of goods to cushion the impacts of disruptions. These additional costs
can reduce profit margins.
 MAKE OR BUY: THE TRANSPORT FROM FARMER TO
PACKAGING PLANT (15,16,17)

Buy (outsource): (we do not have trucks, neither containers)

Control:We choose to outsource the transportation of garlic from
the farmer to the packing plant, relying on transportation
companies' expertise and understanding crucial for optimizing
transportation processes. while we maintain control over the
quality and delivery of Peruvian garlic without committing
resources to the direct management of logistics, this will give us
this advantages:
 Facilitates cost reduction in logistics operations.
 Enhances efficient capital management.
 Reduces product and order distribution times.
 Boosts the company's productivity and improves service
quality.
  Brings the company closer to its core business objectives.

Flexibility: Outsourcing transportation provides the flexibility and

aid of changing the volumes of the cargo whenever we want or
need in order to adapt to market changes. Instead of being limited
by internal transportation capabilities, we can adjust shipping
capacity according to fluctuating demand without worrying about
infrastructure constraints.
Outsourcing allows the company to efficiently adapt the logistics
strategy to new market conditions.

Investments: Hiring a transportation service aligns with our

perspective, avoiding substantial investments in truck fleets and
freight, since we only buy and sell abroad, Instead of allocating
resources to transportation infrastructure, we can concentrate
investments in critical areas such as continuous product
improvement and expansion in the Mexican market, maximizing
financial efficiency.

Risk: Outsourcing particularly for the transportation of goods from

Arequipa to Lima, presents unique advantages in risk
management. By relying on external services for transportation,
the company can effectively mitigate various potential risks
associated with in-house manufacturing.

Financial Risk:
Outsourcing transportation helps in avoiding significant financial
commitments linked to owning and maintaining a fleet of vehicles.
By eliminating the need for vehicle acquisition, maintenance costs,
and potential depreciation, the company can strategically allocate
resources without the financial burden associated with internal
transportation management.

Operational Risk:
Managing internal transportation comes with operational
complexities, including vehicle maintenance, driver management,
and route optimization. By outsourcing these responsibilities, the
company reduces operational risks related to vehicle breakdowns,
scheduling issues, and unforeseen logistical challenges. This
ensures smoother and more reliable transportation of goods from
Arequipa to Lima.

Supply Chain Disruption:

While the domestic supply chain may be perceived as more
stable, it is not immune to disruptions. Outsourcing transportation
introduces a degree of separation, reducing the impact of potential
disruptions in the supply chain. External partners are often
equipped to handle unforeseen challenges, providing contingency
plans to ensure a consistent flow of products from Arequipa to
Lima.
 

MAKE OR BUY: PACKAGING

Control:
Process control: Producing internally offers greater control over
the process , however, outsourcing packaging does not
[18]

necessarily imply a total loss of control. The company can

establish clear agreements with external suppliers that define
quality, design and delivery standards. Currently there are
packaging companies that offer advice, design development,
quality, guarantee, constant monitoring and immediate delivery,
even after-sales service . These factors can guarantee that the
[19]

specific requirements and objectives of the company are met.

Control and focus on Core Business: It is important that the

company can focus its resources and efforts on its main activity,
which is the logistics and export of garlic. This allows greater
concentration on key business activities and maximizes
operational efficiency while maintaining greater control over the
[20]

core business purpose.

Flexibility:
By making the packaging, the company could make changes to
the process more quickly and directly, however, by outsourcing
packaging services, the company can access the experience and
specialized knowledge of external suppliers, obtaining a more
efficient change. [21]

When outsourcing, making changes when the packaging process

has begun depends on the supplier's response capacity and may
entail additional costs.

Investments:
The packaging may involve higher initial costs, due to all the
necessary equipment , however the costs could be lower in the
[22]

long term, despite this as our focus is the export of garlic and not .
packaging, outsourcing will offer us Up-front savings by avoiding
fixed costs associated with building packaging plant. [23]

Risks:
By producing the packaging internally, the company assumes the
risk of possible quality problems and safety problems due to the
nature of the production [24]

Also, when packaging is produced internally, it is necessary to

reach a minimum quantity to reach the break-even point, to cover
the fixed costs assumed when producing it [25]

Likewise, the risks of outsourcing packaging production may be

related to possible loss of process control [26]
  MAKE OR BUY: EXPORT

Internal Transportation from the PACKAGING PLANT to the port

of shipment,

Control:

While some may perceive the utilization of outsourced logistics

services as synonymous with "surrendering control over the
business," empirical evidence demonstrates that forming strategic
alliances and collaborating with suppliers who consistently meet the
company's expectations yield logistical benefits that enhance its
competitiveness.(27)

By outsourcing internal transport by logistic operators and

implementing a control system. This includes verifying that they meet
the standards required for garlic products and that they are aware
during the process of sourcing and transporting the product.(28)

By choosing reliable suppliers and establishing clear quality

standards, we can maintain effective control over the quality of the
product reaching our buyers.

The preparation of all the necessary documents for customs

clearance. This includes invoices, certificates of origin and other
records(29)

Flexibility:

Hiring a logistics operator that is in charge of transportation allows us

greater flexibility to adapt to market changes and customer needs
such as routes, different size of truck according to need(30) By not
being tied to specific production facilities, we can easily change
suppliers if the need arises or if we find more competitive options in
terms of quality and price. This ability to change quickly allows us to
remain agile and competitive in a dynamic business environment
such as international trade.

Investments:
The acquisition of transportation that carries out the loading from the
packaging plant to the port involves considerable investments in fixed assets
and human talent, from the acquisition of machinery and equipment to the
hiring and training of specialized personnel.(31) By choosing to outsource
this service with a logistics operating company, we avoid the need to make
these investments and we can allocate our financial and human resources
to other strategic areas of the company. Likewise, they have the resources
and tools for this management, such as Reefer container that we will need
to transport the cargo to the port, this would also involve a very large
investment.

Risk:
By outsourcing this service, the risk is minimal, however,
There could be problems with compliance or customs regulations,
communication or cargo tracking, liability problems in case of loss, damage
or theft of cargo during transportation, to avoid any type of risk it is important
to make a good selection of the supplier. (32)
Other risks could be mechanical failures of internal transportation that can
cause unnecessary expenses such as worn brakes, worn discs, broken
lights, worn tires, failures in the transmission system and poorly installed
hitches and coupling devices.(33)
Regarding the container, failures could occur in the refrigeration system due
to condensation or another.(34)
CUSTOM PROCEDURES:
 Control:
Process control: This procedure includes the exhaustive review of the
documentation related to the products, the analysis of the corresponding
tariffs and levies, the physical inspection of the goods if required, and
the detection and prevention of illicit activities such as smuggling. and
tax avoidance.[35]
However, outsourcing the management of the customs procedure does
not necessarily imply a total loss of control.
Since, when outsourcing certain services are delegated to carry out the
management of technical and health procedures and documentation
(specifically for food products), as well as the operational administration
of international sales. This includes managing office and customer
service staff for logistics, monitoring operations and preparing the
necessary documentation for shipments.[36]
Helping to open markets, attracting clients internationally involves
carrying out the initial procedures and managing the technical
documentation of the product, as well as obtaining the approval of
production facilities and the necessary health documentation both in the
place of origin and at the destination. (in the case of agri-food products).
[37]

 Flexibility:
By carrying out the customs procedure, the company could make
changes to the process more quickly and directly, however, by
outsourcing the customs procedure services, the company can access
the subcontracting of the negotiation with the client: assistance in the
preparation of proposals, proforma invoices, review of contractual terms
and Incoterms, which facilitates the initial stages of sales and
negotiation.[38]

Subcontracting the preparation and coordination of international

shipments:
-Evaluation of the logistics operation
-Interaction with logistics partners and transportation providers
-Identification of the procedures and required documentation[38]

In the case of subcontracting, making changes once the customs

procedures process has started depends on the response capacity of
the contracted company and may involve additional costs.

 Investment:
 Outsourcing may imply higher initial costs, due to all the necessary
procedure, however the costs could be lower in the short and long term,
despite this since our focus is the export of garlic.
The objective of outsourcing international operations is increase exports
and improve operational efficiency without requiring large financial
investment, until the company achieves sustainable growth.[39]

 Risks:
Risks that have to do with subcontractor-logistics operator relationships.
In this context, the risk of a breakdown in the relationship and, therefore,
a failure of the outsourcing project due to poor coordination between the
parties or the lack of genuine efforts to maintain solid and fluid
communication between the parties is contemplated. both organizations.
[40]

COMMITMENT TO QUALITY As a fledgling company specializing in garlic, our

unwavering dedication is to deliver top-tier garlic to our customers. To sustain
our global presence, we must adhere to the guidelines outlined by Senasa.
Compliance with these requisites is imperative for our garlic exports.
Our approach hinges on an unyielding commitment to excellence,
mirroring the standards set by SENASA (National Agrarian Health
Service) in the context of Mexico. This unwavering commitment
entails a thorough strategy, ensuring each phase of garlic
production and export aligns with the rigorous standards and
specific criteria mandated by the national health authority.

SOURCING STRATEGIES

1. Number of suppliers

Crops Supplier: Given that the cultivation of garlic is main for the
business, the most appropriate strategy would be dual suppliers to
reduce the risk of shortages due to factors such as natural
disasters, climatic problems, etc., and also maintain competitive
prices, however it will be important that The company has a
portfolio of secondary suppliers that can be used in case of
[42]

emergency or shortage by the two main suppliers.

Local Transport Supplier: A dual strategy could be sufficient in
this case, since there are several local transport service providers
with adequate capacity and reputation to maintain a balance
between cost efficiency and transport security.
Packing & Packaging Supplier: A single sourcing strategy would
be ideal, since by working with a single supplier in packing and
packaging, the company can establish quality standards and
specific procedures that the supplier must constantly follow. This
would help maintain consistency in the quality of packing and
packaging of the products
 Exporting Supplier:A multi-supplier strategy for export is
appropriate, due to the logistical complexity and risks associated
with this process. Diversifying export partners helps mitigate risks
related to regulations, political changes and customs issues, and
provides flexibility in shipping routes and delivery options.

1. Geographical Distribution

In this case, the appropriate strategy is Local sourcing strategy for

all processes, mainly due to the costs that are involved in the
processes. By doing it locally (within the country) we optimize
costs and resources.

Crops supplier location: Because the largest garlic production in

Peru is located in Arequipa , this will be the location of our crop
[43]

suppliers.
Among the associations of garlic producers in Arequipa are:
AAPA, Agroalpo, Apase, Apea Tambo, Aprimex, and Esperanza
del Sur.
Local Transport Supplier location: Local transportation must be
located close to our cultivation suppliers, to guarantee a quick
response to garlic harvesting needs. Arequipa has several local
transportation companies
Some transport companies are: TRANSPORTES
JIRENA.,EXPRESO CARGO SUR EIRL., FAMAI SEAL JET
S.A.C., GRUPO REXIALL E.I.R.L., BERISSO, etc. [44]

Packing & Packaging Supplier: The location of our packing and

packaging supplier must be located near the port of origin. It must
be located in Lima or Callao to ensure the quality and condition of
the product, facilitate compliance with delivery deadlines and have
better coordination with port operations.
Some packing and packaging companies are: EMAPAC SAC,
CARVIMSA, INCAP SAC, PACKING MAITO, FABRICAS DE
ENVASES CERRUTI
SA. [45]

Exporting Supplier: The location must be located in Callao, to

streamline customs procedures, the loading of products and
reduce transit times.
Some companies that are dedicated to managing foreign trade
operations are: IF CARGO S.A.C., STEP CARGO S.A.C, IPH
GRUPO LOGISTICO SAC, CORPORACION JMR SAC., SAVINO
DEL BENE DEL PERU SAC, RANSA COMERCIAL S.A, etc. [46]

i. INVENTORY STRATEGIES
In the garlic export enterprise, employing the Just In Time method
entails keeping inventory levels at a minimum and delivering garlic
precisely when required, thereby mitigating the need to maintain
substantial stockpiles. This approach proves advantageous
 considering the perishable nature of garlic, effectively lowering
storage expenses and mitigating the risk of product spoilage.
Additionally, it ensures fresher produce reaches the market,
enhancing customer satisfaction and potentially boosting sales.

Hence, for the effective execution of the Just In Time strategy

within the garlic export trade, it is imperative to forge robust
partnerships with dependable suppliers and devise streamlined
logistics and demand monitoring systems. These measures
guarantee the consistent and punctual availability of fresh garlic
for the Mexican market. Additionally, maintaining open
communication channels with suppliers aids in promptly
addressing any potential disruptions in the supply chain, ensuring
uninterrupted flow of products to meet market demands.

i. INTERNATIONAL DISTRIBUTION DECISIONS

1. Mode of transport

International Physical Distribution Strategy: Mode of transport

The chosen mode of transport is maritime because it is preferred for the
transport of large volumes of goods and for profitability, which is why
this means is chosen to carry out large-scale shipments, since it has the
required capacity for this. and in maritime transport thousands of
products are constantly transported.[47]
Approximately 80% of exports and imports worldwide are carried out via
sea.[47]

International Physical Distribution Strategy: Port of origin

The port of origin for exporting garlic will be the port of Callao due to its
favorable geographical position, in proximity to the country's capital,
giving it advantages by connecting it with the packaging plant in Lima,
which simplifies the merchandise distribution process ( export). Also
because it has greater storage capacity.[48]

International Physical Distribution Strategy:Port of destinations

The chosen destination port will be Manzanillo, which is characterized
by hosting fourteen operating companies, all of them financed
exclusively with private capital. In addition, it has a refrigerator for
storing perishable products with a capacity of 3000 tons.and its opening
hours are 24 hours a day, 365 days a day.[49]

The Port of Manzanillo establishes commercial relations with 57 export

ports and 67 import ports, satisfying the demands of maritime traffic
towards its area of external influence in Mexico, thanks to the presence
of 35 shipping lines operating in the port. In terms of road connectivity,
Manzanillo connects with the country's entire road network through the
Manzanillo-Guadalajara four-lane highway, facilitating a seamless
connection with the rest of Mexico, especially towards the Central and
Southern states. Furthermore, in terms of rail connectivity, the Port of
Manzanillo collaborates with the company Ferromex, which has the
most extensive rail network in Mexico, covering 80% of the national
territory.[49]
 Source:Exportemos.Pe

You can view the location of the main ports used in bilateral trade both
for Peru, highlighting the port of Callao, and for Mexico, where the Port
of Manzanillo has been identified on the west coast. These ports are the
main destinations for Peruvian exports in the manufacturing and food
sectors,It has been observed that the connections provided by shipping
companies to Manzanillo are direct.[50]

Route: Callao – Manzanillo

In the maritime field, operations generally begin in the port of Callao.
According to the information provided by the shipping companies, they
all offer a direct cargo transportation service. Transit times to the final
destination range between 8 and 12 days, depending on the shipping
company selected.[51]
Route Callao-Manzanillo Port

International Physical Distribution Strategy: Containers

The container selected is the reefer because it is a key piece for the
transport of perishable products.
When it comes to transporting or storing various types of merchandise in
refrigerated containers, it is often not clear or it is not widely disclosed
what the optimal temperature is for preserve products in optimal
conditions.[53]

In this case, the transport of garlic inside the reefer container is 0°C.[53]

MARKETING STRATEGY

a. MARKETING STRATEGY

i. PRODUCT:

 ACCURATE DESCRIPTION
IncaRoots Trading proudly sources premium garlic from the
picturesque region of Arequipa, Peru, for export to Mexico. Our
company acts as a dedicated intermediary, carefully selecting
garlic from local producers who specialize in cultivating this
culinary gem.

The non organic Napuri garlic bulbs chosen for export by

IncaRoots Trading boast an impressive diameter range 5 - 8cm
(54), meeting and exceeding international quality standards. Our
commitment to delivering excellence is reflected in the meticulous
procurement process, where only the finest garlic that meets our
strict criteria is considered for export.
 Once selected, the garlic undergoes a careful packaging process,
ensuring that it arrives in Mexico in optimal condition. IncaRoots
Trading pays special attention to preserving the garlic's freshness,
flavor, and overall quality throughout the journey.
 Meaning and purpose:
In IncaRoots we specialize in the trade of garlic, which we
source from Arequipa and then export to Mexico. Although
we don’t cultivate our own produce, we play a crucial role
as intermediaries in international trade.

The name of our company, IncaRoots, pays homage to

Peru’s rich Incan heritage. The ‘Roots’ part of the name
refers to the roots of plants like garlic, which are integral to
our business.

Our logo features a stylized garlic bulb enclosed in a circle,

both depicted in a vibrant orange color. This garlic bulb
visually represents the core product we deal with,
underscoring our specialization.

Our tagline, ‘Your Gateway to Authentic Excellence’,

reflects our commitment to quality and authenticity. We
strive to provide our clients with the best quality garlic,
acting as their gateway to the authentic excellence of
Peruvian produce.”

 WEIGHT
The weight of a garlic is 15 grams (55) that completely covers the
product.
The presentation of garlic for export is usually in boxes. We are
using of 13.6 kg

 SIZE
EXPORT BOXES FOR GARLIC / CARDBOARD
Its appearance is 3 and 8 centimeters in diameter, (56)
Measures OF THE BOX: 20 x 29x 40CM

 ORIGIN
Product: Fresh white garlic
Then he arrived in Peru in the department of Arequipa where he
harvested in the Tambo Valley

 SHELF LIFE
Garlic can be stored at room temperature for up to 3 months. This
period can be extended up to 8 months at a controlled
temperature, either from -2 to 1ºC, or from 18 to 19ºC. (57)
  PACKAGING
EXPORT BOXES FOR GARLIC / CARDBOARD /
Measures: 20 x 20x 40
 LABELLING
The label not only fulfills the function of identifying the brand of the
product being purchased, but also of indicating the country of origin,
manufacturer, quantity, ingredients, and other relevant characteristics.
This information must be presented in the language of the importing
country, with a font size appropriate to the size of the label, as stipulated
in the regulations of each country, so that the consumer can easily read
it under normal purchasing conditions. When presenting the information
on the label, it must be taken into account that it must not mislead the
consumer, especially with regard to the characteristics of the product,
such as its nature, identity, qualities, composition, quantity, duration,
origin, provenance. , and method of manufacture or obtaining. You must
not attribute effects or properties to the product that it does not possess,
nor suggest that the product has particular characteristics, if all similar
products share those same characteristics.[58]

The entity is responsible for verifying the state of plant and animal
health of farms or facilities dedicated to agriculture, including
packaging facilities that prepare products for export according to
the requirements established by the National Agricultural Health
Authority of the importing country. In addition, it carries out
phytosanitary and zoosanitary certification after inspecting plants,
plant products, animals and products of animal origin, as well as
the certification of agricultural inputs intended for export.[59]

i. PRICE:

 PRICING STRATEGY: STATIC

In the context of the garlic export business, static pricing

(Competition-oriented pricing) is a preferable strategy for several
reasons. Garlic is an agricultural product with a relatively stable
demand, and its price is influenced by factors such as production
costs and market competition.

Since the price of garlic is directly influenced by global economic

factors, weather conditions and international supply and demand,
frequent price adjustments could create uncertainty for our
customers and complicate logistics planning.

Furthermore, by relying on international prices, the company can

navigate global market conditions, remain competitive and
maintain a stable and predictable price structure for their exports
of white garlic. In summary, the choice of static pricing
 (Competition-oriented pricing) in garlic sales reflects a strategy
that seeks to balance business stability with adaptability to
international market conditions.

 PRICE TAKER

We take prices established by competitors and international

market conditions as a direct reference for setting our own prices
for the export of Peruvian garlic to Mexico. In adopting this
position, we recognise that the price of garlic is mainly influenced
by external factors such as production costs, global supply and
demand, as well as international economic and climatic
conditions. By being a price taker, our company can quickly adapt
to changes in the market and maintain competitive and stable
prices for our customers in Mexico, which contributes to the
sustainability and profitability of our Peruvian garlic export
business.

We have identified the months of January, September, October,

November and December. During these months, we see solid demand,
competitive pricing and opportunities to stand out in the marketplace.

Average export prices during these months have shown remarkable

stability and competitiveness. With figures ranging between $1.82 and
$1.96 USD per kilogram.

We can take advantage of these windows of opportunity to implement

targeted marketing strategies and strengthen our relationships with
customers in Mexico.

 DELIVERY CONDITIONS (INCOTERMS)

The INCOTERM chosen by our company is Free On Board (FOB),
it is a convenient option for exporters like us who are shipping
products like white garlic to Mexico, what this Incoterm involves
are:

Clarity in delivery responsibility: Under FOB, the responsibility

as an exporter ends once the goods are loaded on board the ship
at the port of origin. This means that we do not have to worry
about the costs or risks associated with onward transportation.

Control over transportation costs: We have the ability to

negotiate directly with the shipping company and select the most
cost-effective and convenient shipping option for us.

Greater flexibility in logistics management: By being

responsible only until the goods are on board the ship, we have
the freedom to choose the freight forwarder and shipping routes
 that best suit our needs. This allows us to optimize logistics and
can result in shorter transit times and a more efficient service for
our market in Mexico.

Potential savings on insurance costs: Under FOB, the

responsibility for insurance falls on the buyer once the cargo is on
board the ship. This can result in significant savings, as it is not
necessary to pay for ocean freight insurance.

 CREDIT TERMS AND CONDITIONS

 INTEREST RATE:
Standard Interest Rate Parameters:
The provided interest rate of 2.5% per annum will be
computed based on the outstanding balance for each day
of delay. This methodology ensures that the interest
charged corresponds proportionally to the length of the
overdue payment period.

 DOCUMENTS:
Documentary Credit (Letter of Credit): As part of our
payment process reinforcement, we frequently utilize a
Letter of Credit. This financial instrument, issued by the
buyer's bank, specifies the necessary documents for
payment release. Adherence to these documents is crucial
for ensuring a seamless and secure payment transaction.
Key documents:
Commercial Invoice: Providing comprehensive details of
the transaction, such as quantity, price, and terms.
Bill of Lading: Confirming the shipment of goods and
furnishing retrieval details.
Packing List: Listing the contents of each package.
Certificate of Origin: Validating the origin of the goods.
Insurance Certificate: Offering proof of insurance
coverage for the shipment.

i. PROMOTION:

 PUSH/PULL STRATEGY

Push Strategy:
 Develop personalized marketing material that distributors
can use to promote products effectively to their networks.
 Sample Distribution: Provide wholesalers with samples and
brochures of our garlic, allowing them to assess the product
 firsthand. This tangible experience can notably impact their
purchasing decisions.
 Find and send direct emails to the Mexican wholesalers,
addressing the quality, freshness and benefits of our
Peruvian garlic, so we will be acknowledged by them in a
deeper way.

Pull Strategy:
 Implement SEO strategies to increase visibility in search
engines when distributors search for garlic suppliers.
 Trade Fairs and Exhibitions: Engage in industry-specific
trade fairs and exhibitions frequented by wholesalers. This
platform offers us the chance to showcase the quality and
distinctiveness of our garlic directly to potential buyers.
 create content through social media so that users can see
them in their feed and this gives life to the brand as well as
getting to know it.
 Creation of a web page where the product will be displayed
in which those interested in purchasing the product provide
a detailed information service that will include feedback on
customer opinions to encourage acquisition.
 PROMOTIONAL MIX (Advertising and Channels)

Advertising
 To showcase advertisements and relevant content tailored
for wholesale buyers. Emphasize success stories with other
wholesalers, highlighting how our garlic can enhance their
operations, providing tangible benefits.

 Develop advertising campaigns focused on the garlic offer

for the Mexican market. Highlight testimonies of success
with other exporters, highlighting how our garlic has
strengthened their commercial relationships and
contributed to the growth of their exports.

Channels
 Attendance at Trade Fairs: Actively engage in prominent
international food and agricultural product exhibitions in
Mexico and Peru, such as EXPOANTAD & Alimentaria
Mexico, Infoagro Mexico, Expo Agroalimentaria
Guanajuato, and Expoalimentaria Peru. Establish an
appealing booth to exhibit our products, featuring attractive
displays, informative materials, and live samples to entice
wholesalers. Forge connections with potential customers
and industry influencers to cultivate enduring partnerships. [63]

[64]
  Our targeted marketing efforts will center on platforms such
as LinkedIn, Facebook, and specialized websites, all
customized to captivate food wholesalers, our main target
demographic.

i. PLACE (distribution)
 CHANNEL LENGTH

The main actors in the distribution chain of our product are:

Producer: They are responsible for cultivating and producing garlic.

Description: Producers are farmers or agricultural companies that

are dedicated to planting and harvesting garlic. Its main objective is to
generate high quality products for marketing.(66)

Exporter (US): Purchases the product for international distribution.

Description: Exporters are companies or intermediaries that acquire

garlic from the producer with the purpose of selling it in international
markets. They are in charge of managing the logistical and customs
aspects related to export.

Distributors: Importers in Mexico who buy the product for local

distribution.

Description: Distributors are companies that acquire large quantities

of garlic from the exporter to then sell and distribute it locally in
Mexico. They act as intermediaries between exporters and local
wholesalers or retailers.

Wholesalers: They sell directly to retail companies and are

sometimes importers.

Description: Wholesalers purchase large volumes of garlic and

supply to retail companies. In some cases, they can also play the role
of importers, facilitating the entry of products into the country.

Retailers: They sell directly to the final consumer.

Description: Retailers, such as WALMART in Mexico, are companies

that offer products to the end consumer. They buy garlic in smaller
quantities from wholesalers and have it for sale in their
establishments.(65)

Final consumer: The final consumers are families, young people and tourists
who visit shopping centers such as Walmart, Soriana, etc., to purchase
products in their daily routine. They are the last stage of the distribution chain,
since they buy garlic for their personal consumption.
 THE CHANNEL THAT WE ARE GOING TO ADOPT AS A
COMPANY IS THE DISTRIBUTION CHANNEL TOWARDS
DISTRIBUTORS AND/OR WHOLESALERS (WHAT ARE
IMPORTERS): By using this distribution channel, it allows us to work
with distributors and wholesalers who are importers and can
accelerate market entry. These intermediaries already have
experience in importing and distribution, which can reduce the time
and efforts associated with entering the foreign market, and these
actors usually have established relationships with local retailers. This
can result in a greater presence of the company's products at points
of sale, increasing visibility and sales opportunities.(66)

Importers of Peruvian Garlic in Mexico to 2023(1): (Could be distributors

or wholesalers): (67)

 AGRICOLA AVOMIX S.A. DE C.V.

 AGRO VK BY FRESH CUT SA DE CV
 CALBOX FARMS S.A. DE C.V.
 COMERCIALIZADORA DE CHILES SECOS LA TAPATIA SA DE CV
 COMERCIALIZADORA DE ESPECIES FINAS MEXICO S.A. DE C.V.
 COMERCIALIZADORA GAB, S.A. DE C.V.
 COMERCIALIZADORA Y EXPORTADORA CHONAJOS S. DE R.L. DE
C.V.
 COMESTIBLES MALDONADO. SA DE CV
 DIPRODESA IMPORTACIONES S.A. DE C.V
 DISTRIBUIDORA DE FRUTAS Y LEGUMBRES PIAXTLA S. DE R.L.
DE C.
 DISTRIBUIDORA EL CHARAL S. DE R.L. DE C.V.
 DISTRIBUIDORA EL COMINO S DE RL DE CV
 EDUARDO GARCIA FONSECA
 FDM LOGISTICA S.A DE C.V.
 FORTUNA RESOURCES INC
 FRUTOS SELECTOS DE LA BAJA SA DE CV
 GRUPO DISEOX S.A. DE C.V.
 GRUPO INDUSTRIA Y MAQUILA DE CONDIMENTOS Y ESPECIAS
SA DE CV
 GUGA MERCANTIL SA
 IMPOEXPOGAM. S.A. DE C.V.
 IMPORTADORA LOPEZ Y MORA SA DE CV
 INDUSTRIA SALSERA S.A. DE C.V.
 OLICAPSA DE MEXICO S.A. DE C.V.
 PAPAS SAN RAFAEL S.A DE C.V
 PAPAS SAN RAFAEL S.A DE C.V.
 PRODUCTOS AGRICOLAS DON RAMON S. DE R.L. DE C.V.
 PRODUCTOS AGRICOLAS VALLE ALTO. S.A. DE C.V.
 PRODUCTOS AGROINDUSTRIALES DE SAN LUIS S.A. DE C.V.
 PRODUCTOS EL PIMENTON S DE RL DE CV
 PRODUCTOS LA COLINA S.A. DE C.V.
 PROVEEDORA MAJO DE IRAPUATO SA DE CV
 RAMOS HERMANOS INTERNACIONAL SPR DE RL DE CV.
 SAN ANTONIO IMPORTS S.A. DE C.V
 SIEMPRE LO MEJOR ES DE DONA MECHE S.A DE C.V.
 SURTIDORA ABARROTERA DE GUADALAJARA . S.A. DE C.V.
 SURTIDORA DEL BAJIO. S.A. DE C.V.
 VEGETARIA INTERNATIONAL S.A. DE