Please provide ideas based off this product of ours and the country we have deci

Question

Please provide ideas based off this product of ours and the country we have decided to target and answer the question below with enough support even if you use other resources.

Our group would like to use a product from a local business called Dolly Moo in Montclair NJ. They make soaps, candles and lotions and have not entered into the global market. We would like our country to be China because they have a large market for handmade soaps and cosmetic products.

YOU DECIDED TO START YOUR OWN EXPORT BUSINESS AND HAVE TO DO THE FOLLOWING:

The Question :

CREATE A PLAN ON TARGETING BY STUDYING FACTORS SUCH AS: ECONOMICAL,POLITICAL,CULTURAL,BUSINESS ENVIRONMENT, AND FINANCIAL/LEGAL ENVIRONMENT. IN RELATION TO THIS PRODUCT AND COUNTRY WECHOSE TALK ABOUT THESE INDIVIDUAL FACTORS ?

Explanation / Answer

Answer –

We have a source that makes products like Soap, Candles and Lotions. We would like to explore the export possibilities of these products. We would like to aim the export strategy similar to China country, as China had exported products into various world locations and they are success in this export business, as their products are cost competitive. We need to develop the export plan which will consider the target locations along with key influencing factor analysis.

Our base products for export are

For our export plan, we need to analyze the location or countries where we would like to explore the export of these products. For these we need to analyze the requirements of these products in that particular country. We require consumption data of the country along with key location. Based on the consumption data study, we can decide the list of locations or countries where we would like to export these products. By this method we have high level information of the target countries for export business.

Now the other important step in planning is the study of influencing factors in the selected countries for export business. Since the business is being influenced by following key factors, we need to have a plan to understand each and every factor of that particular country. Following are the key factors

Political /Legal / Regulator Factors – For any export business, we need to have clear understanding of the legal and regulatory requirements of that country. These factors will help us to enter into the export market. We need to understand the legal / regulatory process and understand all the compliances in business laws with that country. All these export business calls for registration at the country level and needs to get the business permission from that country official. Plan for legal factor study helps us to develop the introduction plan in that country. This is the first step in business introduction.

Economical/Financial Factors – Second key factor study needed for understanding the economical factors of the Country. These will help to understand the current economical scenario in the country and their purchasing power. Based on purchasing power of the people, we can develop our pricing strategy for that country and our target expenses required in the country. These makes a important element in the export plan.

Cultural Factors –Cultural factors has a big impact in the export business. It is required to understand the culture of the country, how people behaves ?, what are their choices ? and how people do the purchase ?, What factors make to do purchase?, What are the seasonal timing for key purchase?, do they have festive environment which influence the purchasing ? etc. All these cultural factors will help them to adequate planning for meeting consumer requirements.

Business Environment Factors – Environment study is a key factor which has big influence on the export business. We need to understand the environmental elements which can have positive impacts on the business and negative impacts on the business. Generally environment force is a big drive force for the business if we aligns with respect to the environmental flow in the export region.

So after careful study of all these factors for export business, it will help to finalize product design, resources, distribution set-ups, pricing, marketing etc. in the export region.

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