This was my International Business Project in which I chose a local company, "Al Noor Rice Traders" and plan to expand it into "France". The Reason behind choosing this company and country was that France don't have its own cultivation of Rice, it exports rice from other countries and Pakistan is a major exporter of rice
This was my International Business Project in which I chose a local company, "Al Noor Rice Traders" and plan to expand it into "France". The Reason behind choosing this company and country was that France don't have its own cultivation of Rice, it exports rice from other countries and Pakistan is a major exporter of rice
This was my International Business Project in which I chose a local company, "Al Noor Rice Traders" and plan to expand it into "France". The Reason behind choosing this company and country was that France don't have its own cultivation of Rice, it exports rice from other countries and Pakistan is a major exporter of rice
Submitted To: MAAM TANZEELA FARSAM International Business Page 3
Table of Contents AN OVERVIEW OF THE PROJECT .......................................................................... 4 CHAPTER 1: COUNTRY FACTS AND STATISTICS ................................................. 5 1.1. GEOGRAPHIC .............................................................................................. 5 1.2. DEMOGRAPHIC ........................................................................................... 9 1.3. ECONOMIC ................................................................................................ 12 CHAPTER 2: GOVERNMENT ................................................................................. 17 2.1. GOVERNMENT TYPE ................................................................................... 17 2.2. Political Issues ............................................................................................... 18 2.3. Political issues Affecting Business Climate .................................................... 19 2.4. Human Abuses in France .............................................................................. 20 2.4. Legal Issues................................................................................................... 20 CHAPTER 3: COMPANY / PRODUCT - CURRENT STATUS ................................. 22 3.1. RICE IN PAKISTAN ....................................................................................... 22 3.2. Corporate Profile ............................................................................................ 24 CHAPTER 4: MARKETING RICE IN FRANCE ........................................................ 28 4.1. CULTURE ...................................................................................................... 28 4.2. IMPORTANCE OF RICE IN FRANCE ........................................................ 33 CHAPTER 5: INTERNATIONAL MARKETING PLAN .............................................. 35 PRODUCT: .............................................................................................................. 35 PRICING:37 PROMOTION: .......................................................................................................... 38 PLACEMENT: .......................................................................................................... 39 CHAPTER 6: RECOMMENDATIONS AND CONCLUSIONS ... Error! Bookmark not defined. REFERENCES: ...........................................................Error! Bookmark not defined.
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AN OVERVIEW OF THE PROJECT There are many different countries and products for investors to choose from. However, there are limited resources with which they can do this. For the International Business project which was given to us, we chose FRANCE as our exporting country, in which will check the feasibility of launching a Rice Mill named AL-Noor Rice Mill there. Our main Product will be BASMATI RICE. In the project, further facts and statistics about the country, the marketing challenges, the company and the product are discussed in detail along with the factors which influence how business is conducted in another country.
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CHAPTER 1: COUNTRY FACTS AND STATISTICS In this chapter, facts and statistics regarding FRANCE will be mentioned. This will be a starting point with which we will study and evaluate the potential of entering into our selected country i.e. FRANCE. 1.1. GEOGRAPHIC France is composed of its metropolitan territory located in Western Europe and a collection of overseas islands and territories located on other continents France covers 547,030 square kilometres (211,209 sq mi), the largest among European Union members. France possesses a wide variety of landscapes, from coastal plains in the north and west to mountain ranges of the Alps in the south- east, the Massif Central in the south-central and Pyrenees in the south-west. Formal Name/Conventional Long Form: French Republic (Rpublique Franaise). Conventional Short Form: France. Term for Citizen(s): Frenchman/Frenchwoman. Adjective: French. Capital: Paris. Map of major cities of France
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Map of major France International Airports
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Map of Motorway Network and Non Motorway Route:
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Map of Physical Characteristics Mountains and Rivers:
Area: The total area that is occupied by France is 674843 square kilometres, with a land cover of 640,053 square kilometres and 3,374 square kilometres of water. Area of France is 84.76% of Pakistan. Time zone: When it is evening in Pakistan there is after noon in France. 7.00 pm in Pakistan =15.00 cest in France, 3 hrs difference from Pakistan. Climate or weather conditions: The north and northwest regions of France have a temperate climate, while a combination of maritime influences, latitude and altitude produce a varied climate in the rest of Metropolitan France. In the south-east regions of France a Mediterranean climate prevails. In the west, the climate is predominantly oceanic with a high level of International Business Page 9
rainfall, mild winters and cool to warm summers. Inland the climate becomes more continental with hot, stormy summers, colder winters and less rain. The climate of the Alps and other mountainous regions is mainly alpine, with temperatures below freezing for over 150 days of the year and snow cover lasting for up to six months. 1.2. DEMOGRAPHIC France Population comparison to Pakistan (as a percentage): France: 65,885,000 (0.92% of world population) Pakistan: 186,353,000 (26 % of world population) Population growth rate: 65,951,611 (Jan 2014 est.) Approximate Age distribution (population pyramid):
0-14 years: 18.7% (male 6,314,779/female 6,029,258) 15-24 years: 11.9% (male 4,017,893/female 3,840,268) 25-54 years: 38.9% (male 12,877,039/female 12,764,229) 55-64 years: 12.6% (male 4,020,974/female 4,287,381) 65 years and over: 17.9% (male 5,029,801/female 6,769,989) (2013 est.) This entry provides the distribution of the population according to age. Information is included by sex and age group (0-14 years, 15-64 years, 65 years and over). The age structure of a population affects a nation's key socioeconomic issues. Countries with young populations (high percentage under age 15) need to invest more in schools, while countries with older populations (high percentage ages 65 and over) need to invest more in the health sector. The age structure can also be used to help predict potential political issues. For example, the rapid growth of a young adult population unable to find employment can lead to unrest. Population Pyramid A population pyramid illustrates the age and sex structure of a country's population and may provide insights about political and social stability, as well as economic development. The population is distributed along the horizontal axis, with males shown on the left and females on the right. The male and female populations are broken down into 5-year age groups represented as horizontal bars along the vertical axis, with the youngest age groups at the bottom and the oldest at the top. The shape of the population pyramid gradually evolves over time based on fertility, mortality, and international migration trends. International Business Page 10
Life expectancies (male, female):
Male: 78.45 years Female: 84.82 years (2013 est.) Total population: 81.56 years Rural vs. urban (percentages): Rural population refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population. Rural population in France: Was last measured at 9028170.40 in 2012, according to the World Bank. Rural population refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.
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Urban population in France: Was last measured at 56668518.60 in 2012, according to the World Bank. Urban population refers to people living in urban areas as defined by national statistical offices. It is calculated using World Bank population estimates and urban ratios from the United Nations World Urbanization Prospects
Literacy Rates (male, female) Age 15 and over can read and write Male: 99% Female: 99% (2013 est.) Total population: 99% Ethnic groups (percentage of total population) French 92%; Arab/North African 4%; German 2%; Breton 1%; Catalan 1% Religious groups (percentage of total population) Roman Catholic 83%-88%, Protestant 2%, Jewish 1%, Muslim 5%-10%, unaffiliated 4% Overseas departments: Roman Catholic, Protestant, Hindu, Muslim, Buddhist, pagan The largest religious group in the French Republic is the Roman Catholic Church. About 80% of the population identifies as Roman Catholic; however, the majority of the religious population does not actually actively attend or practice the faith. French Protestants are known as Huguenots and represent approximately 1 million people in the country. John Calvin developed the Protestant religion Calvinism in Northern France. There is also a large Muslim community in the French Republic, made up of International Business Page 12
about 5 million Muslims. The country has been faced with some controversy surrounding the Muslim community as the government has tried to suppress parts of the faith and parts of the law associated with the faith. Lastly, while the population is small, there is in fact a Jewish population throughout the country of France. Languages spoken (official and other - include percentages):
Sign languages: French Sign Language Official languages: French
French, Arabic; from other minorities: Breton, Catalan, Basque, Corsican, German, Flemish Percentage of languages: Several regional languages are also spoken to varying degrees as a secondary language after French, such as German dialects (Alsacian 1.44%), Celtic languages (Breton 0.61%) and other Gallo-Romance languages (Langues d'Ol 1.25%, Occitan 1.33%). Some of these languages have also been spoken in neighbouring countries, such as Belgium, Germany, Switzerland, Italy or Spain.
1.3. ECONOMIC GDP (Official Exchange Rate): $2.609 trillion (2012 est.) GDP - Real Growth Rate: 0% (2012 est.) 1.7% (2011 est.) 1.7% (2010 est.) GDP - Per Capita (PPP): $36,100 (2012 est.) $36,300 (2011 est.) $35,900 (2010 est.) Note: data are in 2012 US dollars
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Graphical Representation of France GDP Per Capita
Graphical Comparison of the GDPs of France and Pakistan
GDP - composition by sector: Agriculture: 2% Industry: 18.8% Services: 79.2% (2012 est.) Unemployment rate: 10.3% (2012 est.) 9.2% (2011 est.) Unemployment, youth ages 15-24: total: 22.1% male: 21.2% female: 23.2% (2011) International Business Page 14
Graphical Representation of France Unemployment rate: Graphical Comparison of the Unemployment rate of France and Pakistan:
Inflation rate (consumer prices) : 0.9% (2013 est.) 2.2% (2012 est.) 2.3% (2011 est.) Graphical Representation of France Inflation Rate:
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Currency name and current exchange rate to PKR Name of the currency: Euro The French Euro is issued and managed by the European Central Bank. This currency is denoted with the currency sign and the ISO 4217 Code for the French Euro is EUR. It is divided into 100 smaller units called Cent. Household Income or Consumption by Percentage Share: Lowest 10%: 3% Highest 10%: 24.8% (2004) Distribution of family Income - Gini Index: 32.7 (2008) 32.7 (1995) Exports: $567.1 billion (2012 est.) $593.5 billion (2011 est.) Exports Commodities: Machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages Exports Partners: Germany 16.7%, Belgium 7.5%, Italy 7.5%, Spain 6.9%, UK 6.9%, US 5.6%, Netherlands 4.3% (2012) Imports: $641.3 billion (2012 est.) $681.6 billion (2011 est.) Imports Commodities: Machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals Imports Partners: Germany 19.5%, Belgium 11.3%, Italy 7.6%, Netherlands 7.4%, Spain 6.6%, UK 5.1%, China 4.9% (2012) International Business Page 16
Exchange Rate: 1 EUR = 137.11 PKR Currency stability (5 year graph compared to PKR):
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CHAPTER 2: GOVERNMENT This stage will tell us about Frances political structure. Is the county democratic? How prevalent is corruption? How stable is the government? Well carefully study these questions and their answers. 2.1. GOVERNMENT TYPE The government of France is Presidential Republic HEAD OF STATE: The head of state and head of the executive is the President. Since May 2012, France's president is Franois Hollande. The President, who is also supreme commander of the military, determines policy with the aid of his Council of Ministers. The residence of the President of the French Republic is the Elyse Palace in Paris. Date government elected or appointed: Date of elected or appointed government of France is 1815. Date of next national election: The Next French presidential election is scheduled to be held in April and May 2017. However, it might be held earlier under exceptional circumstances Countrys views on trade: Second to Germany, France is the second largest exporter and importer in Europe. Since January 1 1995, France has been a part of the World Trade Organisation, existing both as an individual nation and as part of the EU. Tariffs, quotas, embargoes: Tariff rate, applied, simple mean, manufactured products (%) in France was 1.42 as of 2011. Its highest value over the past 23 years was 5.86 in 1990, while its lowest value was 1.42 in 2011. Parliament passed a law on 1 March that will require that women fill 40 per cent of high-level public service workers - including prefects and ambassadors. This week the European Union launched a public consultation on the number of women on corporate boards. France is one of the few countries that have successfully embraced quotas. International Business Page 18
The European Union should maximize the pressure on Irans economy by imposing an embargo on oil imports from the country by the end of this month, the French foreign minister said on Tuesday. 2.2. Political Issues Political situation: France is a semi-presidential representative democratic republic, in which the President of France is head of state and the Prime Minister of France is the head of government, and there is a pluriform, multi-party system. Executive power is exercised by the government. Legislative power is vested in the government, Senate and National Assembly. The judiciary is independent of the executive and the legislature. Stability of government: France's government is stable. Members of the lower house of parliament (the Assemble National) are elected just after the presidential elections and for the same period of time, five years. The president's party (whatever it is) usually wins a majority by itself, meaning that it is does not have to bow to coalition associates. Corruption in France: Corruption in France describes the prevention and occurrence of corruption in France. France has ratified several important international anti-corruption conventions such as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the United Nations Convention against Corruption. In generally, investors do not consider corruption a problem for doing business in France, and companies operating in France generally have a good reputation of corporate social responsibility. The French National Assembly has proved two bills for combating tax evasion. However, in recent years there are several corruption scandals involving high-ranking public officials, and public works and the defence industry are considered the most affected by corruption. Military role in France: The French Armed Forces encompass the French Army, the French Navy, the French Air Force and the National Gendarmerie. The President of the Republic heads the armed forces, with the title "chef des armes" ("chief of the military forces"). The President is the supreme authority for military matters and is the sole official who can order a nuclear strike The purpose of the French defence organization is to ensure International Business Page 19
at any time, under any circumstances, and against any kind of aggressionthe security and integrity of Frances national territory, as well as the life of the French population. This vast defense concept considers any internal or external threat and also any emergency situation or crisis whether it originates in human, accidental, or environmental causes. It also covers military intervention outside national territory. The three main components of Frances defencecivil, military, and economic aspectsthat rely on the civilian and military defence capabilities of the nation are operated by various state departments. All of these departments are under the command of the president of the republic and the prime minister, aided by specialized governmental offices. 2.3. Political issues Affecting Business Climate March 2014 Unemployment reaches new record high: almost 3.35 million out of work in France. President Hollande's main election pledge was to cut unemployment massively and durably; but it has increased by about 140,000 since he took office. The public deficit in 2014 was 4.3% of GDP, meaning that the government missed its target of 4.1%, and seems unlikely to reach the EU-imposed target of 3% in 2015.Public spending in France, among the highest levels in the world, reached 57.1% in 2013.(Figures from INSEE - the French government statistical office) Two major weaknesses of the French economy: 1. The high level of corporate taxation in France 2. Employee rights Strengths of the French economy: In many sectors, the French economy is among the strongest in the world. France is among the leading industrial economies in the automotive, aerospace, and railways sectors, as well as in cosmetics, luxury goods, insurance, pharmaceuticals, telecoms, power generation, defense, agriculture and hospitality. Regarding its labor market, France has one of the highest levels of graduates, and the highest number of science graduates per 1000 workers of any European country. As a result of its hands-on approach to economic management, France has been able to ensure some remarkable economic success stories. Among the most visible of these is France's world-leading success in the field of rail infrastructure. France was the first country in the world to propose, plan and set up a dedicated high-speed rail network; today the country can boast the world's second most extensive high- speed rail network (after Spain), one which runs without interruption from the North Sea to the Mediterranean, and east-west from near the German border to the lower reaches of the Loire. International Business Page 20
2.4. Human Abuses in France Police abuses and detention conditions: In 2004, the Inspector General of the National Police received 469 registered complaints about illegitimate police violence during the first 11 months of the year, down from 500 during the same period in 2003. There were 59 confirmed cases of police violence, compared to 65 in the previous year. Nine investigations concerning police abuse in this police station were done in 2005 by the IGS inspection of police. Discrimination: The ideal republican (republican ideal) intends to achieve equality in rights between French citizens. To this end, in the national census, the collection of statistics regarding ethnicity or religion is forbidden. In 2004 there were 1513 explicitly racist or anti-Semitic incidents in France, including 361 acts of violence. Promotion of a local language or culture has finally been allowed, but under severe restrictions which effectively make it difficult to publish, organize classes, or media broadcasts. Child Labor Issues: Child labour is illegal in France and the first law forbidding the employment of children less than 8 years old goes as far back as the 22 March 1841. The French strongly disapprove of the intensive exploitation of young children in other countries. With regard to other countries they think that the exploitation of young children is reprehensible, but they are unable to impose their views on other nations or force them to put laws in place that prevent it. Anyone under 18 can only work 7 hours a day and only 35 hours a week. They also cannot work between 10 pm or 6 am. Gender issues: Compared to other countries, France has always been rather late in adopting gender equality as a goal and designing policies to achieve it. Men earn 37% more than women; this gap reaching 44% among men and women in the working class. Women in the lower paid jobs earn 91% of men salaries whereas the 10% of better paid women only earn 75% of the average male salary. On average, women spend almost 3 and a half hours doing housework whereas men only spend 2 hours cleaning, dusting and ironing. Women also spend twice as much time taking care of children or dependent adults. 2.4. Legal Issues International Business Page 21
France has ratified several important international anti-corruption conventions such as the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and the United Nations Convention against Corruption. In generally, investors do not consider corruption a problem for doing business in France, and companies operating in France generally have a good reputation of corporate social responsibility Bribery: Bribery investigations from South Africa to France are ongoing, including bribery claims of Jacques Chirac, Dominique de Villepin and Jean-Marie Le Pen bribery claim from Gabon ex-president Omar Bongo. In September 2011 was judged Bernard Granie of 300 000 bribery from Provence Recyclage Grafts: France has very strict regulations, in part stimulated by problems of public health and ethics that have emerged in recent years and also in part as a result of a report by the 'Inspection Gnrale des Affaires Socials' on the removal and grafting of human tissues in May 1993. These have resulted in two laws on bio-ethics being passed, in July 1994, that are the basis of current legislation and represent the first steps in differentiating between organs and tissues or cells. The French legal framework covering tissues and cells of human origin has been increased to include a large number of legislative texts and regulations. Copyright Infringements French copyright law) developed in the 18th century at the same time as copyright developed in the United Kingdom. French copyright law is defined in the Code de la proprit intellectuals, which implements European copyright law (directives). Unless otherwise stated, references to individual articles are to the Code de la proprit intellectuals. Two distinct sets of rights are defined:. Proprietary rights (droits patrimoniaux) Moral rights (droits moraux) French copyright law in spring 2006. This law, voted by the French Parliament on June 30, 2006, implements the 2001 EU Copyright Directive; however, there existed considerable differences of opinion as to how to implement the directive, in many respects. Under Art. 55 of the Constitution of 1958, a ratified treaty is superior to French domestic law. Hence the conflict of laws provisions of the Berne Convention will be used in determining the applicability of the French Code de la proprit intellectuals. The public domain under French copyright law: A work enters the public domain (domaine public) once the proprietary rights over it have expired. It may then be used without charge, so long as the moral rights of the International Business Page 22
author are respected.[8] Notably, the name of the author and the original title of the work must be cited. Intellectual property issues: French copyright law is defined in the Code de la proprit intellectuals, which implements European copyright law (directives). Unless otherwise stated, references to individual articles are to the Code de la proprit intellectuals. Two distinct sets of rights are defined:. Proprietary rights (droits patrimoniaux) Moral rights (droits moraux) A non-exhaustive list of certain points of French Law, which may be of particular comparative interest to common lawyers, is set out below. However, the said points may never be considered in isolation and should not be relied upon without first consulting a fully trained and qualified French attorney specializing in the specific field of intellectual property. Within France and internationally, rights are protected according to the date of registration. The protection afforded to intellectual property rights is generally presented in the following three categories. Recognition of intellectual property rights outside of France recognition within the European Union by European Patents recognition and protection under French Law. Labor standards: France and Canada also have different legal cultures, enabling a discussion of how national jurisdictions actually appropriate international labor standards international labor law (also called "labor standards") is the body of rules spanning public and private international law which concern the rights and duties of employees, employers, trade unions and governments in regulating the workplace. The International Labor Organization and the World Trade Organization have been the main international bodies involved in reform labor markets. A 35-hour workweek was established in France in 2000, although this standard has been considerably weakened since then. Workers may agree with employers to work for longer, but the extra hours are payable overtime. CHAPTER 3: COMPANY / PRODUCT - CURRENT STATUS In order to successfully market our product in your France, we need to have a thorough understanding of the Pakistani situation. We have chosen AL-Noor Rice Mill that is basically a rice mill, which produces the rice of different qualities. 3.1. RICE IN PAKISTAN
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INTRODUCTION AND IMPORTANCE: Rice occupies 2.5 million hectare that is 10.9% of the total cultivated area with production of 5.1 million tonnes of milled rice. In Pakistans agrarian economy rice plays multifarious roles. Firstly, it is second staple food and contributes more than 2 million tonnes to our national food requirement. Secondly, rice industry is an important source of employment and income for rural people. Thirdly, it contributes in the countrys foreign exchange exchequer. For instance, during 1999-2000 about 2 million tonnes rice of worth 26 billion rupees was exported. The barter trade on Afghanistan border was in addition to this export. The significance of this commodity in our economy is evident from the above facts. Therefore, it is imperative to focus on the efforts needed to further improve its competitiveness in the international market. In Pakistan, rice is grown under diverse climatic and edaphic conditions. Basmati predominates in traditional rice tracts of Punjab (zone 2). In Swat (zone 1) at high altitude mountain valleys, temperate Japonica rices are grown. In the South of NWFP, Sindh and Balochistan (zones 3 and 4) IRRI type long grain heat tolerant tropical rices are grown. Production and Yield of Rice Rice accounts 2.7% of the value added in agriculture and 0.6%of GDP. 21% of global human energy and 15% of protein per capita. Provides minerals, vitamins, and fiber. From US $2.18 billion in 2009-10 to US$1.92 billion in 2012-13. UAE, Iran, Saudi Arabia, Kenya and Afghanistan.
Production and Yield of Rice Year Area (000) Production (000) Yield (kgs/Hect.) 2008-09 2,963 6,952 2,346 2009-10 2,883 6,883 2,387 2010-11 2,365 4,823 2,039 2011-12 2,571 6,160 2,396 2012-13 2,311 5,541 2,398 Federal Bureau of Statistics, Government of Pakistan International Business Page 24
3.2. Corporate Profile Name: Al-Noor Rice Traders Address: Syedna Tahir Saifuddin Road, Near City Court Karachi, Karachi. Locations: S-119 Mauripur Road, Gulbai, S.I.T.E, Karachi, Pakistan-74200 About Al-Noor Rice Traders: Al-Noor Rice Traders was established with a dynamic vision of becoming a leading exporter of Pakistan in the rice industry. Today Al-Noor Rice Traders is one of the leading exporters and providers of superior quality rice from Pakistan. Al-Noor Rice Traders has concentrated its resources and competencies in the business area to secure its own differentiated unique quality. Tag Line: Where Rice Become Jewels Mission: To be leading, innovative, and dynamically growing export firm in the field of Rice exports. Reliability, Efficiency, Strict Quality Control, Timely Delivery & Competitive Prices. Success: Built on our ability to provide best and excellent Pakistani Rice with integrated Quality to meet the specific needs of the customers by understanding the nature of their business and requirement Excellence in Quality is our Aim, That's why we say "Where Rice Become Jewels Because we treat it like a jewel." Our History: In 1984 the family members under the name of started the company, AL NOOR RICE TRADERS. Initially it was started as a trading company, which was supplying to the local customers. By the end of 1987 the company extended its services outside the domestic boundaries with its exports to U.A.E. and then to the rest of the world. Due to its quality assurance and vigilant control over the foreign consignments the company became reputed for its quality exports. International Business Page 25
Our People: We owe all of our success to our loyal customers and our hardworking employees. We are what we are due to the immense hard work put in by our employees. We train our employees on a regular basis and hold in-house workshops and training programs to develop our workforce effectively and efficiently. Our competent staff is dedicated and hardworking, helping us carve a niche for ourselves in the market. Corporate Structure: Basically a hierarchal structure exists in the firm. In the Upper Level of Management there is the Managing Director. The workforce of the company includes a team of well-qualified R&D staff, quality personnel, supervisors, marketing professionals and other skilled workers. The packaging and warehousing departments of the company are built in tandem with the latest technological systems in the field of hygienic packaging standard and storage. We aim to facilitate our clients with healthy and quality rice and take all imperative actions in this regard at all times. Number of Employees: In the lower level of management there are: Total 21 employees are working. 6 employees are on payroll. 15 employees are on wages. Status Salary Permanent Employee (1 person) Rs: 15,000 20,000 (Approximately) Daily Wages: Loading Unloading Refill sacks Dry Rice Rs: 800 1200 per day (Approximately)
Product Line: 1. SUPER KERNAL BASMATI Super Kernal Basmati Rice is one of the greater types of basmati rice grown primarily in the foothills of the Himalayas. Basmati is a variety of long grain rice, International Business Page 26
famous for its fragrance and delicate flavour. Its name means "QUEEN OF FRAGRANCE". Right from the period of Indus Valley Civilization, the grain of rice- with its silky sheen, fragrant aroma, pointed edges, and is easily known for its length, which is almost four times greater than its width. Uniformly made Super Kernel Basmati a staple in almost every corner of the world and delicate flavour- delighted rich & poor equally in all conditions Though rice is produced all over the world, the finest of all qualities- SUPER BASMATI is produced only in the Indian subcontinent for hundreds of years. The Super Basmati, a premium variety from Pakistan. The best basmati rice in the world is cultivated in the fertile soil and emerald green paddy fields of Punjab- Pakistan. Punjab, the land of five rivers, with its elaborate canal irrigation system is the biggest rice-producing province. The fertile land of the foot hills of great Himalya's combined with ideal climate provides the perfect conditions for production of the King of Rice-BASMATI. Being the homeland for basmati-the leading aromatic rice, Pakistan has a monopoly over its trade. 2. BASMATI D-98 Pakistani Basmati D-98 (Sugdasi) Rice is famous for its smell and cooking all over the world. D-98 Basmati Rice from Sindh, Province of Pakistan, is also known to the world as SINDHI BASMATI. Due to its extra long length, rich pearl white colour and highly aromatic grain, it is more demand now than PK385 basmati rice. This type of rice is a vital food for the popular of the world today and is considered one of the best types of basmati now known. D-98 is one of the best basmati grown in the Province of Sindh Pakistan. The areas containing rich soil and the perfect conditions in Sindh, Pakistan, D-98 has been growing for over a decade. 3. IRRI-6 LONG GRAIN WHITE RICE IRRI-6 is the low priced, high volume rice. This variety is grown in the Lower Sindh province of Pakistan and is a major export quality to a number of Middle Eastern and African Ports. International Rice Research Institute has also evolved this variety. It is classified as long grain rice having the length of grain between 5.70 mm to 6.80 mm. It is non-aromatic variety. On cooking its elongation ratio is lower than all the other- mentioned varieties. Thickness is observed in the grains on cooking. It is the cheapest quality of rice in Pakistan. 4. KS-82 LONG GRAIN WHITE RICE KS 82 is the Sindh rice variety also termed as DR Rice or 282 rice. KS-82 or 282 is the long grain non-basmati rice slightly superior to Irri-6 rice quality. Long Grain KS- 82 its a kind of its own connects to the cultivation of Sindh varieties. International Business Page 27
Slightly superior to Irri-6, KS-82 is often specially requested by expatriates in the Middle East and various parts of Asia. Its cooking is can be identified with no thickness in width on cooking. That will simply overcome the perception of an entity enjoying a meal. Supply Chain:
Quality Assurance AL-NOOR RICE TRADERS, an ISO 9001:2008 & HACCP certified company, is one of the few rice companies to have in-house laboratories to have systematic examination systems for quality checking of paddy and rice to ensure best quality end products. We have in-house quality check laboratories for the physical and microbial inspection of incoming and outgoing material. The quality assurance systems at ANRT make sure that the products being distributed all over the world is of high standards and quality with utmost hygiene. Export experience: Pakistan is a major rice exporter and is forecast to export 1.8 MMT, consisting of 1.2 MMT of IRRI and 600,000 MT of Basmati, during MY 2001/02. Al Noor Rice Traders are already exporting their products to Saudi Arabia, Australia, United States, United Arab Emirates, Oman, Qatar, United Kingdom, Bahrain, and Kuwait. International Business Page 28
Successful Company Domestically: With the formulation of the Quality Management System, we have ensured stringent quality control requirements. Also, we have been granted ISO 9001-2008, HACCP. The Company has received a Certificate of Registration Karachi Chamber of Commerce (KCCI) and Rice Export Association of Pakistan (REAP) for meeting world-class standards. We stand committed to quality, timely shipments and trust, creating quality relationships with our clients, the world over. CHAPTER 4: MARKETING RICE IN FRANCE We are planning to export Rice into France. In order to successfully market our selected product in France, we need to have a thorough understanding of the target market and culture in France. Begin by examining our product i.e. Rice and determine if there is a market for rice in France. For this we will need to review the culture of France in relation to the product selected. 4.1. CULTURE Languages spoken French 100%, rapidly declining regional dialects (Provenal, Breton, Alsatian, Corsican, Catalan, Basque, Flemish) Business language The official language of France is French or Francais. It is one of the most important languages in the world and spoken by about 300 million people around the world as a mother tongue or fluent second language. It descends from the Latin of the Roman Empire. French has significant populations in 54 countries including Canada, Belgium, Switzerland, Luxembourg, and the United States. It is an official language in 41 countries, most of which form La Francophonie, the community of French-speaking nations. French as a foreign language is the second most frequently taught language in the world after English Acceptable Topics of Conversation Food/praising French cuisine art, music, and philosophy sports (soccer, tennis, The Tour de France (bicycle race), Olympics in season)) current events/history. Topics to Avoid International Business Page 29
It is extremely bad manners to ask an individual about his political leanings or who he has voted for. You can inquire about the political system in France or about public opinion of political leaders. Never criticize Napoleon, who has a lasting identity with the French spirit. Refrain from using the standard U.S. conversation opener, "What do you do?" Avoid making personal inquiries in the course of a conversation, especially during first introductions. Non-Verbal communication There are various types of non-verbal communication that are commonly practiced in France. The following cues the many different types of non-verbal communication that both you & I engage in absent-mindedly. BODY GESTURES: Kissing: In France, it is widely practiced for one to greet another with a kiss on the cheek. The French trade our regular hello and goodbyes handshakes to kisses on both cheeks. It is a norm to start off with the right cheek, and often there isn't a lip-to-cheek contact. Hand movements: In France, there are several hand movements that are often used. The commonly used "OK" sign in America means the number ZERO in France. By holding up a fist and holding up in front of the nose indicates that someone is drunk. Using your index finger to pull the skin under your eye signifies, "I don't believe you." Personal Appearance: In France, it is very important to sit up & stand up straight. Children are constantly reminded to follow the procedures as it is known as a form of disrespect if one were to slouch. Use of Humour: The French have jokes, but do they have a sense of humour. Before the French revolution of 1789, the word Humour was hardly known. People knew esprit (wit), farce (prank), buffooneries (drollery) and Humour (a state of mind, or mood), but not Humour. Only in 1878 did the French Academy, the institution that stands guard over the French language, accept Humouristique as a French word. A year later Edmond de Goncourt used Humour without italics as a French word in his novel Les Frres International Business Page 30
Zemganno, but not until 1932 did the academicians gives their approval to the noun Humour. Business Customs Including Greetings, Gift Giving, Dress, Tipping, Time Management: Attitudes and values are the foundation of every countrys culture, and are the building bricks for developing business culture. Cultural influences, communities. Attitudes and behavior vary within and across nations and within and across ethnicities, and are strongly embedded in Business executives who hope to profit from their travels to France should learn about the history, culture, and customs of the areas that they wish to visit. Flexibility and cultural adaptation should be the guiding principles for doing business in this country. Cuisine: Food is one of the great passions of the French people. French cooking is highly refined and involves careful preparation, attention to detail, and the use of fresh ingredients. It varies by region and is heavily influenced by what is grown locally. French Family Values: The family is the social adhesive of the country and each member has certain duties and responsibilities. The extended family provides both emotional and financial support. Despite their reputation as romantics, the French have a practical approach towards marriage. Families have few children, but parents take their role as guardians and providers very seriously. Relationships - Public vs. Private The French are private people and have different rules of behaviour for people within their social circle and those who are not. Although the French are generally polite in all dealings, it is only with their close friends and family that they are free to be themselves. Friendship brings with it a set of roles and responsibilities, including being available should you be needed. Friendship involves frequent, if not daily, contact. Etiquette & Customs in France Meeting Etiquette: The handshake is a common form of greeting. Friends may greet each other by lightly kissing on the cheeks, once on the left cheek and once on the right cheek. International Business Page 31
Gift Giving Etiquette: Flowers should be given in odd numbers but not 13, which is considered unlucky. Some older French retain old-style prohibitions against receiving certain flowers: White lilies or chrysanthemums as they are used at funerals; red carnations as they symbolize bad will; any white flowers as they are used at weddings. Prohibitions about flowers are not generally followed by the young. When in doubt, it is always best to err on the side of conservatism. If you give wine, make sure it is of the highest quality you can afford. The French appreciate their wines. Gifts are usually opened when received. Dining Etiquette: If you are invited to a French house for dinner: Arrive on time, sends flowers the morning of the occasion so that they may be displayed that evening and dress well. Business Etiquette and Protocol in France Relationships & Communication: French business behavior emphasizes courtesy and a degree of formality. Mutual trust and respect is required to get things done. Trust is earned through proper behavior. Creating a wide network of close personal business alliances is very important. If you do not speak French, an apology for not knowing their language may aid in developing a relationship. It is always a good idea to learn a few key phrases, since it demonstrates an interest in a long-term relationship. The way a French person communicates is often predicated by their social status, education level, and which part of the country they were raised. In business, the French often appear extremely direct because they are not afraid of asking probing questions. Written communication is formal. Secretaries often schedule meetings and may be used to relay information from your French business colleagues. Business Meetings Etiquette: Appointments are necessary and should be made at least 2 weeks in advance. Appointments may be made in writing or by telephone and, depending upon the level of the person you are meeting, are often handled by the secretary. Do not try to schedule meetings during July or August, as this is a common vacation period. If you expect to be delayed, telephone immediately and offer an explanation. Meetings are to discuss issues, not to make decisions. Avoid exaggerated claims, as the French do not appreciate hyperbole. International Business Page 32
Role of men, women and children at home in France: The men worked very hard if youre talking about later times, then the men framed and produced foods they did it because the women stayed inside to clean and sew. Women in New France took care of the children ran the households well as worked outside. Women had to clean and tidy the house chamber pot, once a month they washed floors by sprinkling water on the floor. At first, New France had a very low number of women. They were usually privileges they had very few rights thought. Married women could not be sued or sue could not easily carry on business dispose of own property without the husband permissions. Children in France are well taken care of by the government all children are offered excellent childcare in a safe environment. Not only does the government offer public child care it also make sure the family receives enough money to raise their children. The majority of childrens are in good health immunization records and do not suffer from poverty Role of men women and children at work: Men have worked outside the home and served as the sole breadwinner for the family. They held some of the holds powerful jobs in society including doctor lawyer and politician in recent years more men have expressed a desire to take on the role of primary caregiver to the children French women are participating fully in the labor market this is hardly surprising since a higher proportion of women than men (28% as against 25%according to euro stat) have higher education qualification. 64.1% French women are worked outside the home 2% more than the EU average. Fewer of them than other European women work part time French women are independent. The majority of preschool children attend state-run day cares known as crches. France has laws about naming children. Until 1993, all names had to be chosen from an official list. Today, public prosecutors can still reject a child's name. Children were dressed like miniature adults and were expected to behave much the same way: like small people with no rights. Business Negotiation French business emphasizes courtesy and a fair degree of formality. Wait to be told where to sit. Maintain direct eye contact while speaking Business is conducted slowly. You will have to be patient and not appear ruffled by the strict adherence to protocol. Avoid confrontational behavior or high-pressure tactics. International Business Page 33
French Negotiation Style: The French culture and values: The French are proud of their history and their prominent culture is influenced by a mix of cultural and historical differences. One of the characteristics of the French culture is the centralization. Power distance: France is getting more moderate. France for his model, it was the only country scoring high on power distance. Nowadays, the hierarchy is usually to be respected. Individualism VS Collectivism: French love uniqueness and freedom of opinion both in society and in business. The individualism is therefore a very important cultural characteristic. Achievement VS Nurturing: The French place more interest in quality of life (nurturing) than on their career (achievement). Its obvious in the way they defend their rights concerning their 5- week paid holidays and other social advantages and benefits Uncertainty avoidance: The French pay a lot of attention to rules and regulations. Moreover, the French dont like ambiguity and they try to reduce them by establishing formal rules in order to avoid ideas and behaviors they dont desire. Types of Conflicts 1. Substantive conflict It is a fundamental disagreement over the ends or goals which are to be pursued and the means for their accomplishment. 2. Emotional conflict These are the interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, etc. 4.2. IMPORTANCE OF RICE IN FRANCE Successful rice production began in the 18th Century in the Camargue region, thanks to its abundant solar radiation. Up until the 1930s, the main objective of rice production was to control the salinity that menaced the Camargue and threatened it with desertification. Today, japonica rice varieties are planted under irrigated International Business Page 34
conditions, from April-May to September-October, on large and highly mechanized farms. France is not a major rice producer, even within Europe, but it is a major contributor to sustainable rice production at the global level. Through its Centre de Coopration Internationale en Recherche Agronomique pour le Dveloppement (CIRAD), France has provided support to various national rice programmes around the world. French people do not eat much rice (about 7 kg/person/year). Despite this limited consumption, France must import rice yearly to meet local demand. Rice yield in the Camargue region has stagnated over the past decade. Taking advantage of the rich French cuisine, farmers in Camargue turned to producing high quality rice for special dishes. Theroul de feuilles de riz au thon, or "rolled rice with tuna fish", is an example of Camargue's specialty cuisine.
France 2012 Rice Production Declines Due to 16% Shrinkage in Acreage: In 2012, rice yield in France is estimated at around 5.9 tons per hectare, up about 11% from around 5.3 tons per hectare in 2011. However, production declined around 6% from 132,000 tons in 2011 to around 124,000 tons last year mainly due to reduction in rice acreage. According to Eurostat, area under rice cultivation in France has declined to around 20,800 hectares, down about 16% from around 24,660 hectares in 2012. More than 3.5 billion people worldwide depend on rice for more than 20% of their daily calories. An excellent source of complex carbohydrates, it is also rich in nutrients and contains vitamins and minerals. A lot of these nutrients, however, are lost during milling and polishing. More than a billion people depend on rice cultivation for their livelihoods. About 90% of rice is grown in Asia's 200 million rice farms, most of which are smaller than one hectare. Rice-growing is the main economic activity of International Business Page 35
millions of rural poor in this region. Rice is the fastest growing staple in Africa with this region contributing to about 3.4% of the world's production as in South America. CHAPTER 5: INTERNATIONAL MARKETING PLAN PRODUCT: 1. What needs/wants does rice fulfil in France? Rice is a food which will provide adequate nutrition to the people of France for a healthy life. 2. Who is the target market (consumer) of the product? How often will they purchase the item? Our target market (consumer) of the Rice is both rich and poor people or you can say that local people. Our product is categorized among those products which are used by every person in the daily life or once in a week. 3. Are purchases affected by climate? No, our product is not affected by the climate. Whoever our product is used by any season. But our product will get affected by water. 4. Are purchases affected by geography; for example infra-structure or Transportation problems? No, our product purchases are not affected by geography. But it is used and transport in any place. 5. Does your product have a conflict with the traditions, habits, or beliefs of the customers in your selected country? No, our product does not have any conflict with traditions or beliefs of the customers in France. But may be some customers may not be very fond of rice so, rice perhaps has some conflict with the habits of the customers. 6. What makes your product(s) unique for the countrys market? Pakistan provides best quality of the rice in the world while France is not good to cultivate of the rice. And this make our product is unique to the Franca markets. 7. What competing products are already available in your selected country? If possible state the product and company names that are being sold currently in your selected country. i. Food For Life Brown Rice or Multi-Seed Muffins ii. Lundberg Farms Organic Rice iii. Lundberg Farms Organic Brown International Business Page 36
iv. Quaker Gluten Free Rice
8. What are the competitive advantages of your product or business over other domestic and international businesses? The advantage is that in France, the quality of the rice is not as good as compared to the Pakistan rice quality, and the production of the rice is occur in large point in Pakistan. So, if we do international business or domestic then we get a profit on export of the rice. 9. Why will international buyers purchase the product from your company? There are three different types of rice: japonica, javanica, and indica. Japonica rice varieties are high yielding and tend to be resistant to disease. Javanica types of rice fall between japonica and indica varieties in terms of yield, use, and hardiness. As our provided type of rice is resistant to diseases, this will be helpful for their healths. Rice is mostly eaten steamed or boiled, but it can also be dried and ground into flour. Like most grains, rice can be used to make beer and liquors. Rice straw is used to make paper and can also be woven into mats, hats, and other products. 10. How complex is your product? As we are introducing the rice mill so there is no complexity involved in product. 11. What skill or special training is required to: a) Install your product? b) Use your product? c) Maintain your product? d) Service your product? No special skills or training is required for using our product; actually we are introducing a rice mill which comes under the category of food and beverages so there is no need for installation, maintenance or servicing the product. 12. What other items, equipment, services are required to use your product in the selected country? The service which we are giving to the customers in France is to provide the sample of our product. Sample will be sent to customers by air cargo on the "Freight collected" basis. Ups and Fedex services will be used for this purpose. 13. How much inventory will be necessary to sell overseas? Approximately One million ton is required. 14. Will your product be restricted abroad; for example tariffs, quotas, or Non- tariff trade barriers? International Business Page 37
Yes, we are exporting our product in France so there are definitely taxes on export, and they will also allow us for limited exporting. But as that country is not good in agricultural products so it will give us benefit to generate profits. 15. What product-labelling/standard concerns are associated with your product? As our rice mill logo is in English but in France they speak French so we have to change the logo accordingly for them when introducing our product. And also we have to communicate with them in their language. PRICING: 16. Using the domestic pricing model, can consumers in your country afford your product? As in domestic market, the price at which the firm product or service sold directly determines firms revenue. If price is too high the product will not sell, if the price is too low, export activities may not be profitable. 17. What factors do you need to consider when setting prices in your selected country? Cost Profit Market demand Industry standards Segment your customers 18. Are your products sales very sensitive to price changes? Yes, because consumer demand for product is changed by cost of product. It help the manufacturer to study consumer behavior and assist them making good decision about the product. 19. How important is pricing in your overall marketing strategy? Since pricing has direct impact on companys revenue, and thus profit, setting right price is essential for company success. Pricing contributes how consumers perceive the company product. 20. What additional costs will you incur bringing your product to your selected country? Additional cost include the following Market research Business travel International postage, cable, telephone rates Commissions, training charges Other cost involving foreign representative International Business Page 38
Consultants Product modification and special packaging PROMOTION: 21. What advertising material will you use? In France, French must always be used as the language of publicity and advertising: English slogans and phrases may only be used with accompanying French translations. Though advertising has been at the heart of French culture since the end of World War Two, it has also been the centre of debate. On the one hand, it is embraced as a natural product of capitalism; on the other, it is scorned for being manipulative and vulgar. All the advertising outlets that well use would be available in France. However, word-of-month is much more highly revered, we must make sure that we use such types of strategies that get noticed; we promote our message on a regular basis. Stretch our money through as many small channels as possible: local newspapers, brochures, flyers, etc. 22. What media would you use to advertise your product? We use print media and advertising media for promoting our product because we promote our message on a regular basis, Make yourself newsworthy if possible. Run a promotion, or maybe an extravagant event on the day of opening. Let local newspapers know our plans, maybe they'll do a small article about it. Don't overreach. Instead of aiming at mass markets, consider niche and build upon your name. The more money you reap, the higher you can aim. Catering for your select market will also help to maximize referrals 23. What cultural concern must be addressed in your advertising? Cultural sensitivity and understanding of protocol is paramount to effective marketing in France. The intricacies of a nation, its beliefs, even its superstitions, can make or break your business. Know the French market; immerse yourself in it. Never assume your marketing strategy will be transplantable to a foreign country. There is only a slim chance language will translate well. Anglophonic countries may be susceptible, but if your product or service plays on a quintessentially British characteristic or joke the chances are, it will not be well received. 24. What are your sales promotion techniques? Sales Promotion: Everyone wants to increase sales and usage of a product or service. One of the best ways to do this is through sales promotion. Here are a list of typical sales promotions in France: International Business Page 39
Buy-One-Get-One-Free: This self-liquidating promotion, which generates enough extra sales to cover the cost of the offer. Customer Relationship Management: Includes incentives such as bonus points discount coupons. Many industries employ this type of promotion. New Media: For instance, via mobile phones and the internet. Competitions are often a high-yielding way to get customers to both buy a product and visit your website. Discounts: Let you customers know about cut-prices, or upcoming sale. Joint Promotions: Synergy between two brands to help promote one another. For instance, McDonalds often market free tie-in toys to the latest blockbuster film. Free Sample: Use marketing capital toward hiring promotional staff to work on high street or in supermarkets, giving out free samples of your product. PLACEMENT: 25. Will you sell directly to the customer or will you use a retailer, sales agent, joint venture, or some other arrangement to sell your product? We will sell our product in France through retailers and wholesalers. Because we are entering in a totally new market so to gain customers well approach them via retailers. 26. Do specialized outlets exist in your selected country to market to various target markets? No, in the start we will just reach our target consumer through retailers. Our product is Rice so it will be more convenient to reach the customers via pre-established retailers. CHAPTER 6: RECOMMENDATIONS AND CONCLUSIONS By the end of this report we reached to the conclusion that we should export our rice to France. France is a country which exports rice from other countries. Pakistan is counted amongst the best Basmati Rice exporter in world. After Pakistan, Indian Basmati Rice is more preferable but when it comes to make a choice between Pakistani and Indian Basmati, Pakistani Basmati is given the 1 st preference. Moreover, we are not having any conflict with the Culture or and Geographical factors. Well have to bear the cost of transportation because of wide geographical boundaries. Along with that some tariffs will also be imposed. But as our company is operating very successfully in Pakistan and is ISO certified, it also have a very good exporting experience in other countries too, so we are expecting that Al Noor Rice International Business Page 40
Traders will grow more in France and this expansion will bring a positive improvements in their Revenues. REFERENCES: 1. Samik Sarkar, (2012), market entry strategy of Kohinoor basmati rice in Tunisian market by sildeshare. 2. AgroSup Dijon 26 Bld Dr Petitjean, (2013), The World Market of Fragrant Rice, Main Issues and Perspectives by International Food and Agribusiness Management Review Volume 16, Issue 2. 3. Inocent Juttni,(2013), RICE MILL PROJECT BY GCUF STUDENTS OF BANKING AND FINANACE, by slideshare. 4. Muhammad Rehan, (2013), PAKISTANI BASMATI RICE MARKET, by perzi. 5. Retrieved 17 November 2013, Business Anti-Corruption Portal, GAN Integrity Solutions by wiki. 6. Jim Hoagland, 18 June 2008,"France's Whirlwind of Change", Real Clear Politics, by wiki. 7. economie.gouv.f, 2013-2017, FRANCE STABILITY PROGRAMME by tresor. 8. Denis Vaultier, (2013), The Militarys Role in Homeland security in France, by pdf. 9. Economic news, (2014), Overview of the French economy, by French economy.