Export Plan for Burrda Sports - Example

Export plan: BURRDA SPORTS Name Tutor Date Executive Summary BURRDA SPORT is a Swiss clothing firm which produces footwear as well as clothing for football, rugby, handball, athletics, in addition to training. The company has plans of expanding its market in regard to the export business and targets various target countries, including U.S. U.S is vastly developed and quality cognizant market. The products with export potential include footwear and men’s and women’s wear from the popular brands such as Adidas and Nike. Demand for sportswear garments within these countries greater than supply and hence easier penetration and growth of the planned export business. BURRDA SPORT will contact wholesalers and distributors in the target export countries. The products will be marketed through direct mail, internet as well as through print advertisements. This is aimed at promoting the products to the potential customers. Additionally, potential customers will be identified through personal visits to the target countries and through advertisements. Export Plan: BURRDA SPORT Market Expansion BURRDA SPORT plans to expand their market of the value-added sportswear. The objective of this export plan is to gain affiliations with major wholesale businesses within the target export countries. Benefits BURRDA SPORT will expand its production of value-added products and increases profits remarkably Greatly expand customer base and have increased sales Make the company more competitive with other exporters and domestic producers Trade-offs The export venture will require extensive preparations as well as huge amount of capital The company’s employees will be involved in a lot work due to the numerous requirements of establishing the exporting business. This will require even hiring of new employees The export business is time-consuming and requires extensive paperwork Business Analysis/Company Analysis BURRDA SPORT is a Swiss clothing firm which produces footwear as well as clothing for football, rugby, handball, athletics, in addition to training. The company’s headquarter is at Geneva, Switzerland and has a Middle East office situated at Doha, Qatar. It supplies several European and national teams focusing mainly in Middle East and the Gulf area, where it has created innovative clothing sports wear for the hot temperatures in the areas. BURRDA SPORT has lately signed a business deal with U.S handball National Team, hence entering USA market (BURRDA, 2012). BURRDA SPORT is the preferred worldwide brand of performance sportswear for everyone interested in competition and a sporting lifestyle. It specializes in designing and developing high performance and stylish sports clothing and accessories. In addition, the company has solid commitments to excellence, quality and service as well. The company has the finest sports clothing worldwide. It has the mission of becoming the leading sports brand through challenging customary concepts and designs to develop new and exciting performance sportswear (BURRDA, 2012). BURRDA SPORT products are created to replace heavy cottons within the world of sports with performance substitutes devised and merchandised for a variety of programs. The company’s products are designed in different styles and fits aimed at enhancing comfort as well as performance. The sports wear are designed for both genders and different age groups and they pull out across the sporting supplies, outdoor lifestyle markets. The products offer customers with an improved option to heavier customary materials and products. Panel Construction on BURRDA’s textile offers a well thought-out performance fit and enables Mesh temperature control clothing to be placed at strategic positions within the garments. As a result, this offers the most excellent fit and performance from the garment (BURRDA, 2012). BURRDA SPORT’s retail match kits are 100 percent authentic, created using the similar textiles and technologies the professional players utilize. The company’s sports wear products fits any category; for those competing in games, tournaments even those practicing sports activities to achieve their personal goals. Whatever level of participation within the sporting fields all over the world, no matter what the conditions working against the bodies, BURRDA SPORT provides sports wear that fits all these conditions (BURRDA, 2012). Industry Analysis U.S is vastly developed and quality cognizant market. The purchasing power is among the highest worldwide and customers can reasonably afford to pay premium costs for quality sports wear. The importers can evaluate the aptness of the sports wear after testing the quality and physical aspects of the products. These elements consecutively determine the price. U.S mainly depends on imports for the exports wear supply (Rajesh, 2009). Packaging and grading prerequisites for imports within U.S are stringent and inflexible. To begin with, it is proposed that the new deal with the U.S Handball National Team should be targeted for sales. Nevertheless, to be successful in penetrating this market, it is essential that the quality of the sports wear be the best worldwide, priced competitively and packaged to U.S standards and regulations, effectively fulfill the demands of the consumer within the sports wear store (Rajesh, 2009). Products with Export Potential The products with export potential include footwear and men’s and women’s wear from the popular brands such as Adidas and Nike. Alternative to the other products, these products, though shares similarities with other products, these products are very popular. Because of larger market of these products in U.S, they are readily purchased by the customers. These products are among the world’s finest sports wear (BURRDA, 2012). By providing the finest brands of sports wear, BURRDA SPORT has taken the first step towards differentiated products. To further distinguish the company’s finest brands, the company adheres to higher quality standards as compared to approximately 95% of the market. Additionally, footwear and men’s and women sportswear are of Nike and Adidas variety. Nike and Adidas products are considered to be among the finest brands worldwide and they are highly sought after by clothing specialties all over the world. BURRDA SPORT has assumed the position of a specialized provider of these exceptional sportswear brands. The company’s customers including U.S recognize BURRDA SPORT for its capacity to provide the type of sportswear they need for sporting and athletic activities (BURRDA, 2012). Matching Products to Global Trends/Needs United Arabs Emirates, U.S, U.K, Egypt and Belgium are excellent export choices for BURRDA SPORT. This is because these countries have numerous athletics and sports activities and hence the need for sportswear. In addition, Switzerland and Qatar have trend of good trade relationships and therefore conducting business in these countries will not be a major task. Imports of sports wear within these countries have increased in the past few years due to sporting activities. Additionally, demand for BURRDA SPORT’s products is above the market clearing level, and market price and the supply of sports clothing are high at all times. The increase within the number of independent specialty sportswear within these countries, particularly U.S and U.K has contributed to and is an indicator of the increased demand for sports clothing. Within the larger clothing industry, the company’s target is footwear and men’s and women’s sports attires. These discerning customers in these countries want the highest quality sportswear. They serve the growing sport’s market and are represented by big sportswear companies within these countries. BURRDA SPORT’s products are considered to be among the finest worldwide and as such, the demand for these products internationally. Specialty sportswear business are willing to pay more for BURRDA SPORT’s sports products and attempt to distinguish themselves through the characteristics of the sports products they sell; the company producing the garments, the material used in making the garments and technologies used in producing the garments and such. The final customer is fairly price insensitive if the garments are good or is compatible with a popular trend (Leeman, 2010). Most Penetrable Markets U.S importers: Market research indicates that there are several importers of sports wear on Coasts of the United States that are in position of handling the quantities of the company’s shipments and are within the company’s target market. Additionally, the demand for sports garments within the country is high due to the active undertaking of sports within the country. The risk of political instability in U.S is minimal. United Arabs Emirates: UAE serves as a safety valve for the company’s export business. Through maintenance of relationships with the country, the company has a substitute market with established distribution channels. The country also neighbors Qatar, where the middle office of the company is and therefore penetration will be easy due to proximity advantages. The risk of government interference in this country is minimal. U.K: The customers in this country have increased purchasing power and hence the company will find a ready market for its products. Furthermore, the demand for sports wear in U.K is extremely high. Just like U.S, the risk of political instability in is minimal (Leo, 2006). Industry in Target Global Markets The distinguished growth is the USA market where imports have increased nearly 100% and the market price has almost doubled. USA, Belgium, U.K, Egypt as well as UAE have constantly imported sportswear clothing. The specialty sportswear producers have risen from a handful of distinguished firms to thousands of independent units. There is a steady struggle in the sportswear industry to produce the best sporting garments and serve one or more niches in the larger market. Demand for sportswear garments within these countries greater than supply. U.K, Belgium and Egypt have been great importers of BURRDA SPORT’s products. Still, there are other countries contributing to the company’s products exports and they include USA. UAE can provide a ready market for sports clothing because of numerous sporting activities involved in the country, for example, camel racing. More, importantly, there is shortage of companies producing sportswear and this makes these countries the best target for this export plan (Leeman, 2010). Building a Distributor Relationship BURRDA SPORT will contact wholesalers and distributors in the target export countries preferably through personal contact made while visiting the countries. The company will also research business practices within these countries. Meeting with the countries’ trade officers will be important. The first trip by the company’s agents will be for familiarization purposes for the potential buyer and seller to know each other. This is important since business people in these countries prefer doing business with people they know and trust. The company will also set up a legal binding relationship with importers registered in the importing countries, who will subsequently represent and move the company’s products through the countries retail process. Classifications of merchants involved in the distributing imported clothing products to the retailer include: Wholesalers: They sell huge volumes of products to other merchants Semi-jobbers: These are wholesalers who sell the products in smaller volumes Retailer: The merchants who sell the products directly to the end-customer Distributor: Dealers having exclusive distribution rights of textile products within these countries. In addition to the above distribution groupings, a very essential distribution network is present within the key wholesale markets found within major cities in U.K, UAE, USA, Egypt and Belgium as well. Distribution costs will be assumed by BURRDA SPORT up to the arrival of shipments at port, at which point importers will assume responsibility as indicated within contract, of the shipment and extra distribution costs (Thomson, 2010). Marketing the Products The products will be marketed using a marketing program that will amplify personal selling, joined with targeted direct mail and print advertisements. This will establish contractual agreements for the company with 15 additional importers, raise brand awareness of our products within the importing countries, and communicate the company’s position as the provider of the best quality sportswear on the market (Skamris, 2008). The products will also be marketed through Website. The company will develop a refined website whose purpose will be solely to market the company’s products. This will increase the company’s presence on the World Wide Web and also offer added ways of communicating and collecting customers’ data. Most customers are largely influenced through promotion and advertisements, but personal contact is extremely important. As a result, the company will work with distributors in respective countries to carry out in-store promotions, handouts in addition to other types of direct merchandizing (Skamris, 2008). Defining Marketing Strategy BURRDA SPORT marketing strategy will consist of using the targeted print media advertising as well as selling directly to textile importers within these countries. The company will capitalize on existing relationships with importers who are willing to contact other partners and recommend the company’s sportswear products. BURRDA SPORT has positioned itself as a distinguished provider of the highest quality sportswear garments. The main objective of all marketing efforts will be to communicate the company’s position to existing and potential customers (Skamris, 2008). Identifying Customers within the Chosen Market Relationships are important for an export business to be successful. The potential customers will be identified through personal visits to the target countries. Personal selling will be the company’s most important of identifying the customers. In addition, there will be numerous specialty publications whereby print adverts will run. Direct mail, in the form of personal letters will also be utilized in communicating with the existing and potential customers (Thomson, 2010). Products Companies Distributors Footwear Adidas AG, Puma AG, Nike Wholesalers, retailers Men’s sports apparel Nike, Adidas AG, Puma AG Wholesalers, retailers Women sports apparel Puma AG, Nike, Adidas AG Wholesalers, retailers Ideal Customer The most ideal customer would be Nike, since it is a well-known company and its brand is popular and widely recognized. Besides, the company is based in US, which is one of the prospective importing countries. Ideal Distributor The most ideal distributor is the wholesaler. This is because a wholesaler will buy the products in bulk and hence fast sales (Thomson, 2010). Appendix Export license Form of application for textile export license Name of Applicant__________________ Mr. / Mrs. / Miss. / Ms_______________________ ID Number________________________ Name of Company__________________________ BRC Number_______________________ Address___________________________________ Email_____________________________________ Telephone No.______________________________ Name and Quantity of Textiles to be Exported__________________________________ Origin and Name of Importer__________________________ Purpose of Importation_______________________________ Conveyance Means__________________________________ Declaration_________________________________________ Application Date_____________________________________ Signature of the Applicant_____________________________ References BURRDA. (2012). BURRDA SPORT and USA Team Handball Announce Apparel Partnership. http://www.burrda.com/media-room/press-releases/burrda-sport-and-usa-team-handball- announce-apparel-partnership/. Retrieved on 4th February 2012. Leeman, J. (2010). Export Planning. New York: BoD- Books on Demand. Leo, P. (2006). Handbook of research on international entrepreneurship. New York: Edward Elgar Publishing. Rajesh, I. (2009). MBA Fundamentals International Business. Chicago: Kaplan Publishing. Skamris, H. (2008)."Underestimating Costs in Public Works Projects: Error or Lie. Journal of the American Planning Association. Vol. 68/ 3. Thomson, M. (2010). Now, Build a Great Business: 7 Ways to Maximize Your Profits in Any Market. New York: MACOM Div American Mgmt Assn. . Retrieved on 4th February 2012. Read More