Submitted By: Submitted To:

RANDELL ARANZA Mr. RENE SEDONIO RUFFA HOFILEA Marketing Global ARLENE JUNDOS University of St. La Salle CRYSTAL DIONALDO

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CULTURAL ANALYSIS
I. INTRODUCTION. Company: Fresh Start Organics is a privately owned company based in the province of Negros Occidental in the Philippines. Fresh Start has grown into a business whose expanded product range includes fresh organic produce and organic rice, among others. Fresh Start Organics continues to expand while maintaining the company vision of being a vibrant eco-enterprise that implements ecologically, socially and economically sound practices in organic agriculture. As a staunch supporter of the organic movement, Fresh Start fully believes in the importance of good health, fair trade and environmental conservation. II. BRIEF HISTORY. The Seychelles Islands remained uninhabited for more than 150 year after they became known to Western explorers. It was captured and freed several times during the French Revolution and the Napoleonic wars, then passed officially to the British under the 1814 Treaty of Paris. From the date of its founding by the French until 1903, the Seychelles colony was regarded as a dependency of Mauritius, which also passed officially from the French to British rule in 1814. By 1963, political parties had developed in the Seychelles colony. Elections in 1963 were contested for the first time on part lines. In March 1970, colonial and political representatives of Seychelles met in London for a constitutional convention. Further elections were held in 1974, in which both major political parties campaigned for independence. Following the 1974 election, negotiations with the British resulted in an agreement by which Seychelles became a sovereign republic on June 29, 1976. July 23-26, 1993 saw the first multiparty presidential and legislative elections held under the new constitution. All participating parties and international observer groups accepted the results as free and fair. The political and economic status of Seychelles became stable since then with French and African influences taking into place. III. GEOGRAPHICAL SETTING. A. LOCATION. Indian Ocean northeast of Madagascar. (Coordinates: 4 35 S, 55 40 E)1 B. CLIMATE. Tropical marine; Humid; Cooler season during southeast monsoon (late May to September); Warmer season during northwest monsoon (March to May)

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C. TOPOGRAPHY. An archipelago of about 100 islands, principally

composed of Mahe, Praslin and La Digue; Lies outside the cyclone belt, so severe storms are rare; Short droughts possible2 Implications: Seychelles is an archipelagic country that has economically strived to be sufficient in terms of natural resources. However, because of its long warm weather, it cannot provide much in terms of venturing into agricultural expansion and thus diverts its attention to its two strong assets tourism and aquaculture. IV. SOCIAL INSTITUTIONS. A. FAMILY. 1. Nuclear. 3-5 average members per nuclear family 2. Extended. 40-45 average members within three generations per extended family 3. Dynamics. The father is the head of the household and all decisions primarily come from him; Patriarchal society. Poorer communities with children outside of wedlock leave the father with almost nothing to do with the upbringing of the child. Divorce rates are also relatively low. 4. Gender Roles. Male Decision-maker, Breadwinner, Works for the family; Female takes care of the household and the childrens upbringing. Implications: The importance of a patriarchal society is that the primary decision-maker comes from one single source. The entire approach will therefore cater and eventually appeal to the father. The family, nuclear or extended, can benefit from the product as long as they are well-informed of the contrasts of organic compared to the regular rice available in the market.
B. EDUCATION. 1. Role. Significant; Public schools and private schools, compulsory

through grade 10. Members of the family seek employment opportunities above educational attainments due to economic status. a. Primary. Until grade 6 (compulsory 6 years) Begins education in September for young ones as early as five years old. Preschool or preparatory courses are optional. Basic learning activities include reading, writing, history, geography, general science and even livelihood skills. b. Secondary. Until grade 10 (compulsory 4 years) Culturally, it is vital for every Seychellois to finish secondary education because they treat themselves living in a learning society. A familys pride is at stake and the

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government sees this as the final mandatory step for Seychellois to undergo in the educational system. c. Higher Education. 10 universities catering to higher education; 95% of secondary students continue on to higher education due to offerings of government scholarships by the University of Seychelles. 2. Literacy Rates. 92% Implications: Education in Seychelles is highly being valued. Being a learning society it is vital for them to understand fundamental concepts and theories to be applied in their day-to-day lives. Question, however, still lingers to the kind or level of education they get. Dealing with resources and the lack thereof makes it all the more difficult for Seychellois to determine whether or not what they actually get from school prepares them for the future. Putting it into context, since every Seychellois is deemed educated and given the high literacy rate, injecting knew knowledge and introducing the innovativeness of the product wont be that difficult. Its introduction will cater both to the cognitive and emotional aspect of the decision-maker and to the family members themselves.
C. POLITICAL SYSTEM. 1. Structure. Republic 2. Parties. Democratic Party, Peoples Party, Seychelles Peoples

Progressive Front, Seychelles National Party 3. Stability. Stable; No political uprisings/conflicts in the past three decades 4. Special Taxes. None; As an exception to the Seychelles territorial tax system, any foreign income derived will be treated as Seychelles-sourced 5. Role of Local Govt. To gather local data and present to main bureau for national decision-making and implementation. D. LEGAL SYSTEM. 1. Judiciary Organization. Court of Appeal; Supreme Court (judges for both courts are appointed by the president) 2. Code. Based on English common law, French civil law, and customary law; has not accepted compulsory ICJ jurisdiction 3. Participated Conventions. Seychelles follows the common law being followed by the United States and most countries in terms of patents and trademarks. E. SOCIAL ORGANIZATIONS. 1. Group Behavior. Culturally-bounded; Family-oriented

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2. Social Classes. Strong middle class; Insignificant number of elite

persons; Influential ones mostly composed of state officials; Poverty line congruent to other third world classes. 3. Organizations. ACP, AfDB, AOSIS, AU, C, COMESA, FAO, G-77, IAEA, IBRD, ICAO, ICCt, ICRM, IFAD, IFC, IFRCS, ILO, IMF, IMO, InOC, Interpol, IOC, IPU, ISO, ITU, ITUC, MIGA, NAM, OIF, OPCW, SADC, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO 4. Ethnicity. African and French (also known as Creole). Implications: Culture influenced by its previous colonizers and systems following international standards make it easier for the product to penetrate the market. F. RELIGION AND AESTHETICS. 1. Religion and Belief Systems. i. Orthodox Doctrines. The unity of the Church follows of necessity from the unity of God (The Church is One). ii. Relationship. Close, influential; Every family, with a small fragment of atheists (less than 1% of population), requires religion in their day-to-day lives; iii. Prominent Religion/s. Roman Catholic iv. Membership. Roman Catholic (82.3%), Anglican (6.4%), Other Christian (3.4%), Hindu (2.1%), Other non-Christian (1.5%), Seventh Day Adventist (1.1%), Muslim (1.1%) v. Influential Cults. Unspecified (1.5%) and atheists (0.6%) 2. Aesthetics. i. Visual Arts. Frenchmen highly influenced the visual arts in Seychelles in the 18th century and outputs are mostly expressed on canvas. ii. Music. Most of the traditional music and instruments used in Seychelles mostly came from mainland Africa. iii. Performing Arts. Performing arts in Seychelles are highly regarded for its spontaneity. It is often being held in the sea shores with Seychellois expressing their art through instrumental music and traditional tunes with African flairs. iv. Relevant Symbols. Weaved coco de mer leaves, symbolizing a real Seychellois. VI. LIVING CONDITIONS. A. DIET AND NUTRITION. 1. Consumption Rates. City and rural dwellers tend to have no difference at all in terms of diet and nutrition consumption. They seem to consume more seafood as viand than vegetables and poultry products.

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2. Typical Meals. Eggs and potatoes for breakfast; Rice (staple food)

and seafood for lunch and dinner.

3. Malnutrition Rates. Less malnutrition rate although data not well

specified in various sources. Sufficient sea food resource made it easy for Seychellois to have something to eat. 4. Foods Available. Seafood is a common food in Seychelles given its archipelagic nature. Aquacultures and spices contributions to food resource are significant. The rest are either imported due to its scarcity. Implications: Rice, being a staple food in Seychelles, makes the product an established need for its people. Imports are high in terms of food due to its insufficient food resources, thus, making the situation and its geographic features the products competitive advantage.
B. HOUSING. 1. Types. Most homes were made of stone block with corrugated

iron roofs (71%); others are constructed of wood frames. Some rural houses were thatched. 2. Own or Rent. 95% owned. 3. Dwellings. There were about 17,599 housing units throughout the nation. Of all housing units, 86% had flush toilets, 85% had indoor tap water and 92% had electricity. C. CLOTHING. 1. National Dress. Due to its African influence, Seychellois generally wear western style clothing. They dress well when in public and women typically wear a sari. 2. Working Clothes. In professional business attire, Seychellois are well-dressed. Most of them dress to impress at first meetings. Because of their conservative culture, the dress code in most business environments are, most often than not, conservative. D. LEISURE ACTIVITIES. 1. In Demand Types. Island hopping and beach games are significant leisure activities that eat up the weekends of Seychellois. 2. Income Percentage on Leisure. Data not specified but according to related literatures, leisure is not on top of the government or the peoples priority because tourism comes in and overlaps with the supposed leisure times of the family. For them, livelihood is far more important than leisure. E. SOCIAL SECURITY. The Social Security Fund, established in 1979, provides benefits for old age, disability, survivorship, sickness and maternity. Employees and employers are required to make monthly contributions (5% of salary and 10% of payroll). Furthermore, the Full Employment Scheme of 1980 allows the registered unemployed to

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work on government-approved projects in order to receive a daily subsistence wage. F. HEALTH CARE. 3.9% of the gross national product went to health expenditures. Water and sanitation were available to over 90% of Seychelles residents. In 2000, Seychelles reached its goal of attaining at least 90% immunization DPT (diphtheria, pertussis and tetanus). Health services are free for all residents under the National Health Plan. VII. LANGUAGE. A. OFFICIAL. English (Although 4.9% of the population speak the official language) B. SPOKEN VS. WRITTEN. Seychelles is a speaking country, mostly influenced by the syntax of the peoples widely-used dialect, Creole. C. DIALECTS. Creole (91.8%), Other (3.1%), Unspecified (0.2%) VIII. EXECUTIVE SUMMARY. Throughout the cultural analysis, there have been descriptions on the history, cultural and the many lifestyle dimensions of Seychelles. Seychelles is an archipelagic country that has economically strived to be sufficient in terms of natural resources. However, because of its long warm weather, it cannot provide much in terms of venturing into agricultural expansion and thus diverts its attention to its two strong assets tourism and aquaculture. Education in Seychelles is highly being valued. Being a learning society it is vital for them to understand fundamental concepts and theories to be applied in their day-to-day lives. Question, however, still lingers to the kind or level of education they get. Dealing with resources and the lack thereof makes it all the more difficult for Seychellois to determine whether or not what they actually get from school prepares them for the future. Putting it into context, since every Seychellois is deemed educated and given the high literacy rate, injecting knew knowledge and introducing the innovativeness of the product wont be that difficult. Its introduction will cater both to the cognitive and emotional aspect of the decision-maker and to the family members themselves. Culture influenced by its previous colonizers and systems following international standards make it easier for the product to penetrate the market. Rice, being a staple food in Seychelles, makes the product an established need for its people. Imports are high in terms of food due to its insufficient food resources, thus, making the situation and its geographic features the products competitive advantage. IX. SOURCES OF INFORMATION.

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The World Factbook Publication, Central Intelligence Agency (www.cia.gov/library/) Seychelles Statistics and Database Administration Section (www.seychelles.net/misd/) The Official Destination Website for the Seychelles Islands (www.seychelles.travel) Virtual Seychelles, Your Online Guide to Seychelles (www.virtualseychelles.sc) X. APPENDICES.

ECONOMIC ANALYSIS
I. INTRODUCTION. In 1976, per capita output expanded seven times that moves the island into an upper-middle income group of countries. Tourist sector leads growth which employs 30% of labor force and provides 70% of currency earning and tuna fishing. 2006-07 GDP grows 7-8% per year, driven

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by tourism and tourism oriented construction. GDP fell by 1% in 2008 due to declining tourism industry but economy recovered in 2009-10 with a notable increase in tourist numbers for 2010. II. POPULATION. A. TOTAL. 89,188 (est. July 2011) 1. Growth Rates. 0.945% (est. July 2011) 2. Number of Live Births. 11.66 deaths/1,000 live births 3. Birthrates. 15.23 births/1000 population (est. 2011) B. DISTRIBUTION. 1. Age. 0-14 years: 21.9% (9,988 male/9,501 female); 15-64 years: 71% (33,044 male/30,277 female); 65 years and over: 7.2% (2,399 male/3,980 female). (2011 est.) 2. Sex. Male: 45,430; Female: 43,758 (2011 est.) 3. Geographic Areas. Victoria (capital) 26,000 (est.2009) 4. Migration Rates. 1.03 migrant(s)/1000 population (est.2011) 5. Ethnic Groups. Mixed French, African, Indian, Chinese and Arab. III. STATISTICS AND ACTIVITY. A. GNP. 1. Total. $1.908 billion (est.2010) 2. Rate of Growth. 3.5% (est.2010) B. PERSONAL INCOME PER CAPITA. $21,600 (est. 2010) C. AVERAGE FAMILY INCOME. $2,435 - Lowest 10% and highest 10% are not applicable. Data on household income or consumption come from household surveys are adjusted results for household size. D. DISTRIBUTION OF WEALTH. 1. Income classes. Upper-middle income 2. Proportion per Class. 30% labor force, 13% GDP and 60% foreign exchange earnings. 3. Distribution Distortion. Sex-ratio trait. E. MINERALS AND RESOURCES. Fish and Spices. F. SURFACE TRANSPORTATION. 1. Modes. Airports, roadways and merchant marine. 2. Availability. Total of 14 airports, 8 airports with paved runways and 6 airports with unpaved runways. Total of 458 km. roadways. And 9 merchant marine. 3. Usage Rates. Airports with paved runways: one from 2,438 to 3,047 m; six from 914 to 1,523 m, and one from 914 m under. Airports with unpaved runways, one from 914 to 1,523 m, and five from 914 under (2010). Paved Roadways 440 km and unpaved roadways 18 km. (2003). Merchant marine, 1 cargo, 1

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G.

H.

I.

J.

K.

carrier, 6 chemical tankers, 1 petroleum tanker and 3 foreignowned by Hong Kong, Nigeria, South Africa. (2010) 4. Ports. Victoria. COMMUNICATION SYSTEMS. 1. Types. Telephones, Cellular Phones, Broadcast Media and the Internet 2. Availability. 22,100 Telephone Lines; 92,300 Cellular Lines; one terrestrial TV station, multi-channel cable and satellite TV; internet. 3. Usage Rates. Telephones for effective systems, combined fixedline and mobile-cellular teledensity is 130 telephones per 100 persons; radiotelephone communication between islands in the archipelago. AM and FM radio station, transmission of 2 international broadcasters. WORKING CONDITIONS. 1. Employer-employee Relations. Relatively good communication between representatives of both employers and employees such as pay, bonuses, work environment, disputes, work schedules, health and safety, hours of work and the production target. 2. Employee Participation. Civil service. 3. Salaries and Benefits. Income tax payable by employers and employees; non-monetary benefits by employer. PRINCIPAL INDUSTRIES. 1. Industry Contribution. Fishing, tourism, processing of coconuts and vanilla, coir (coconut fiber) rope, boat building, printing, furniture, and beverages. 2. Ratio. 5:7 identified industries (est.2010) FOREIGN INVESTMENT. 1. Opportunities. Innovative light industrial projects. Principal trading partners are France, the United Kingdom and the Netherlands. 2. Industries. Tourism, agriculture, fishing and fish processing, oil exploration, infrastructure, IT, telecoms, general services and financial services. Principal foreign trades include transportation (33.7%), consumer goods (11.1%), food (18.9%), fuels (3.2%), industrial supplies (17.1%), machinery (15.6%) and others (0.5%). INTERNATIONAL TRADE STATISTICS. 1. Major Exports. i. Dollar Value. $464 million (est.2010) ii. Trends. Canned tuna, frozen fish, cinnamon bark, and copra. 2. Major Imports. i. Dollar Value. $831 million (est.2010) ii. Trends. Machinery and equipment, foodstuffs, petroleum products, chemicals and other manufactured goods.

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3. Balance-of-Payments. i. Surplus/Deficit. Sufficient to offset the visible trade deficit. ii. Recent Trends. Development aid, income from tourism and

earnings from exports.

4. Exchange Rates. i. Single/Multiple. Single exchange rate. ii. Current Rate. 12.221 Seychelles rupees per US dollar

(2010)
iii. Trends. Seychelles rupees value decreases by up to 50%

over the US dollar since 1999.

L. TRADE RESTRICTIONS. 1. Embargoes. Cuba and Iran. 2. Quotas. 70% of total tuna fish or 875,000 tons for 10 years. 3. Import Taxes. Machinery, spare parts, and raw materials. 4. Tariffs. Textile, apparel, footwear, and travel goods. 5. Licensing. Granted by the Seychelles Licensing Authority (SLA). 6. Customs Duties. Tobacco: 200 cigarettes or 50 cigars with 225g

of tobacco. Liquor: 1L of spirits and 1L of wine. Gifts: to a value not extending SCR 1,000. M. NON-CASH INCOME ACTIVITIES. 1. Countertrades. i. Products. Canned tuna and frozen fish. ii. Types. Fisheries and aquacultures. 2. Foreign Aids. European Union and Japan. N. LABOR FORCE. 1. Size. 39,560 (2006) 2. Unemployment Rates. 2% (est.2006) O. INFLATION RATES. - 2.2% (est.2010) IV. TECHNOLOGICAL DEVELOPMENTS. A. AVAILABLE TECHNOLOGIES. Computers, Machineries, Tools, Television, Cellular Installments, Radio, Print, Online Libraries, Cyber Engines for Tourism. B. GNP PERCENTAGE INVESTMENT. 36.2% (2010) C. TECHNOLOGICAL SKILLS. Basic word processing and encoding, as part of the compulsory secondary education for Seychelles people. Complex technological tasks are deemed handled by experts. V. CHANNELS OF DISTRIBUTION. The main channel of distribution in Seychelles is through retailers. Information about wholesale middlemen and warehousing cannot be found. A. MIDDLEMEN. a. Retailers.

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i. Number. Annual Retail Volume 32,244,431 at (est.) less

than a thousand retail outlets. Outlet Size. Small- and medium-sized retail shops. Customary Markup. No information found. Operational Methods. Cash/Credit. Operational Scale. Small to large. Role of Shops. Selling genuinely local items. b. Import/Export Agents. There is a total of 12 export and import companies in Seychelles, registered under the offshore IBC agreement. Seychelles and its export/import agents are one of the most competitive available agencies in the African continent. c. Urban and Rural Market Penetration. Logistical modes and capabilities are excellent in Seychelles, thus urban and rural markets are well penetrated. Lack of saturation in areas in relation to the product is a vital key in tailoring the approach that will appeal the decision-maker and the products primary consumers.
ii. iii. iv. v. vi.

VI. MEDIA. A. AVAILABILITY. The island of Mahe is well-adept with the current technological trends and media exposure. Due to its previous influences, the availability of media, in general, include: (1) a terrestrial television station, which provides local programming and airs broadcasts from international services; (2) multi-channel cable and satellite television available via subscription; (3) telephone lines with inter-connection cables fit for its archipelagic nature; (4) radio in both AM and FM bands mostly based in Mahe, and; (5) the internet covering 93% of the nation. Implications: The availability of tri-media and the new emerging technologies in the nation were built to attract tourists on board their own campaign of promoting its islands as a haven. In the process, as this situation provides, the dissemination of information regarding the product will no longer be hampered due to the availability of media and its relative exposure to the consumers and the target market.
B. COSTS. a. Television. Running a national television advertisement per

primetime spot costs SCR 60,000-78,000 and may vary according to the number of spots shown in a specific period of time. Non-primetime spots may cut the price by up to 35%. b. Radio. The platform of radio recently changed due to the worldwide digitalization phase of the media. The cost has significantly went down by up to 40% due to the digitalization

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from analog, currently ranging from SCR 9,000-14,500 per spot in the primetime block. (1 AM and 1 FM) c. Print. Broadsheet size and material ranges from SCR 1,0009,000.1 d. Other Media. Cinema (SCR 24,000 as of July 2010 in leading production outfits) and outdoor (SCR 11,000-23,450 as of Sept 2010 on billboards located near resorts for 30 days). C. AGENCY ASSISTANCE. Under an international agreement with various international media agencies, content is shared and appropriately syndicated for the consumption of Seychellois through satellite transmissions. D. COVERAGE. Most media outlets are located in Mahe and coverage hours are congruent to international communication policies with blocks fit with local regulations. E. REACH. Frequencies and copies of media paraphernalia reach up to Victoria from Mahe. Strict implementation of national jurisdiction in relation to media reach is being observed. VII. EXECUTIVE SUMMARY. Throughout this country notebook, the economy of the Seychelles Islands is broken down into specific categories and factors. The majority of these economic factors have some level of influence on how we will be able to sell organic rice. Researching, analyzing, and being able to interpret these influences is vital in selling our product. The following is a brief breakdown of the major influences and the effects they may have on our product: The first economic factor of Seychelles that influences how organic rice sells is the population. 71% of the population is between ages 15-64. The fact that decision-makers in a basic unit of a family are in this age range, the probability of the product being exposed to that cluster is significantly high. Males also dominate females in terms of size. Thus, this figure will be congruent to the culturally patriarchal society they now have today an advantage of making the product more exposed to their segment. The availability of tri-media and the new emerging technologies, being the second and third economic factors in the nation, were built to attract tourists on board their own campaign of promoting its islands as a haven. In the process, as this situation provides, the dissemination of information regarding the product will no longer be hampered due to the availability of media and its relative exposure to the consumers and the target market. Overall, the economic status of Seychelles is healthy in marketing the product, as long as approach is tailored to the identified segment of the market.

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VIII. SOURCES OF INFORMATION. The World Factbook Publication, Central Intelligence Agency (www.cia.gov/library/) Seychelles Statistics and Database Administration Section (www.seychelles.net/misd/) The Official Destination Website for the Seychelles Islands (www.seychelles.travel) Virtual Seychelles, Your Online Guide to Seychelles (www.virtualseychelles.sc) US Department of State, Bureau of African Affairs (http://www.state.gov...6268.htm) Tech Republic, Seychelles Radio (http://www.techrepublic.com/software) IX. APPENDICES.

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MARKET AUDIT AND COMPETITIVE MARKET ANALYSIS

I. INTRODUCTION. Imports coming from all across the globe are warmly welcomed by Seychellois given their lack of sufficiency as a nation in terms of food resources. The general evaluation of the market, considering its cultural and economic aspects, gains the product more leverage and competitive advantage. Well-tailored approach may redefine the segments perceived need, especially since the product is deemed organic. This classification must reach the audience in both cognitive and emotional approaches, so as to establish the importance and significance consumer may benefit from it. The market, especially in urban areas, is not yet well saturated because the government sees tourism as its top priority and not business expansion and further affiliations. In the later part of this audit and analysis, a more comprehensive explanation of the products features, advantages and benefits will be discussed in accordance to the existing restraining and driving forces in the Seychelles Islands. II. THE PRODUCT. Fresh Start Organic Rice1 A. GENERAL EVALUATION. a. Relative Advantage. Health Product; Organically-produced; Classified into various types, namely: white2, brown3, black4 and red5. b. Compatibility. Rice is the staple food of people in Seychelles. c. Complexity. New idea; Introduction phase. d. Trialability. Media exposure and taste tests (to determine taste bud rebellion, a state technically coined to describe a change in taste with new conventions) e. Observability. A group of Seychellois equally segmented will undergo a series of interviews to gather perception and other pertinent information before actual product launch.

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B. RESTRAINING FORCES. The government has moved to reduce the

dependence on tourism by promoting the development of farming, fishing, small-scale manufacturing and most recently the offshore financial sector, through the establishment of the Seychelles International Business Authority (SIBA) and the enactment of several pieces of legislation (such as the International Corporate Service Providers Act, the International Business Companies Act, the Securities Act, the Mutual Funds and Hedge Fund Act, among others). III. THE MARKET. A. DESCRIPTION. a. Geographical Region. Archipelagic. b. Communication and Transportation. Telephones, cellular phones, broadcast media and the internet are the main forms of communication means; Airplanes, ships, motorcycles and vehicles of private and public services compose the transportation sector. c. Consumer Buying Habits. i. Product-use Patterns. Cyclical. ii. Product Feature Preferences. Imports. iii. Shopping Habits. Irregular; Data do not reflect trends given the lifestyle Seychellois have. Seasonal changes determine their purchasing power and see a clear difference between needs and wants before acquisition and consumption. d. Distribution. i. Typical Retail Outlets. Near business districts and resorts, medium-sized retail outlets. Main market exclusively sells seafood. ii. Products Sales. Art accessories, seafood, souvenir items, native coconut drink. Widespread distribution of items mostly catered to tourists. e. Advertising and Promotion. i. Advertising Media Used. Mostly flyers and radio due to the small businesses capacity to expose product to the market. ii. Sales Promotions Used. Direct selling and premiums. f. Pricing Strategy. Organic rice in the Philippines may be more expensive than the current price in the market but converting its production, shipping and other relevant costs adjacent to the currency rates, Seychelles will see the product cheaper than the usual rice being imported by either Vietnam or Thailand. Unit price may be way cheaper but we will offer our product leveled to the price of their regular rice and when demand fluctuates, we can strategize by offering it in a bundle at a much lower price. B. PRODUCT COMPARISON. a. Competitors Product. i. Brand Name. Grain Basmati Rice

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ii. Features. High nutritional value, great taste, free from

impurities, fine quality, properly packed.

iii. Package. Recycled rice bag. b. Prices. SCR 21 per kilogram c. Promo and Ad Methods. TV, radio and the internet. d. Distribution Channels. Retail stores and resellers. C. MARKET SIZE. a. Estimate Industry Sales. Market Leader; 47% of total market. b. Estimate Sale for Own Company. SCR 33 million annually. D. GOVERNMENT PARTICIPATION. a. Helpful Agencies. International General Certificate of Education

(IGCSE), Seychelles International Trade Zone, Seychelles International Business Authority (SIBA) b. Mandatory Regulations. Environmental and state trading legislations. IV. EXECUTIVE SUMMARY. Seychelles high income per capita is a significant contrast as compared to its geographical size as a nation. However, it is still worthy to note that most of their nations income comes from imported good. This reliance is now slowly being combated by the government by creating programs and reforms in their own previously imposed internal restrictions. Other neighboring countries, meanwhile, see this as a healthy form of competition. The market has developed a niche for imported goods and their minds are mostly set on what has been than what will be. In terms of market flexibility, the people of Seychelles have mostly become wide audience of non-traditional media such as the internet, not only for their personal level of development but as a nations way to reach out more to the world in boosting their biggest economic asset tourism. V. SOURCES OF INFORMATION. Commercial Brief of Seychelles (http://www.seychelles.net/hicomind/) The World Factbook Publication, Central Intelligence Agency (www.cia.gov/library/) Seychelles Statistics and Database Administration Section (www.seychelles.net/misd) VI. APPENDICES.

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PRELIMINARY MARKETING PLAN

I. THE MARKETING PLAN. A. MARKETING OBJECTIVES. a. Target Market. Health conscious household decision-makers. b. Expected Sales. $52 billion in 2008. $100 billion (est. for 2011) c. Profit Expectations. Increase 20-30% d. Penetration and Coverage. Through niche market segmentation specifically to the health conscious. B. PRODUCT ADAPTATION. a. Core. Unpolished wholegrain, milled to remove the hull from the kernel but retain the rice bran layer and the germ. Gives a nutty flavor and a chewy texture. b. Packaging. 5-kilogram vacuum packs, packed in cardboard boxes for shipment and distribution. c. Support Services. Has a lower glycemic index. More nutritious because the bran is rich in vitamins, fiber, and minerals, among others. C. PROMOTION MIX. a. Advertising. i. Objectives. To outline a framework by which support systems for the organic rice industry can be rooted. ii. Media Mix. Our media mix considers a budget-conscious intersection between the media objectives and potential media vehicles in Seychelles. Since this is the introductory phase of our imported product, we want to launch aggressively through television, radio and both print and online media. The first week must capture the entire ideology of the product, promoting it equally via cognitive and emotional approaches. The emphasis of the message must be captured so as to generate consumer retention. iii. Message. The Real Grain of Life. (No Chemicals! No Pesticides! No Preservatives!) iv. Costs. Week One of the launch allocates SCR 100,000 for promotion alone. We see this as an investment carefully studied upon based on research and available data. b. Sales Promotions. i. Objectives. The objective of our sales promo is for target market and identified segments to retain the ideology and significance of the product to their respective lives. The goal is for the entirety of the product be on top of mind and create a buzz on its first week. Triggering curiosity on what the product is all about can be one form of promoting the

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fundamental information about Fresh Start Organics. This can be generated through dynamic promotional materials in cooperation with partner retail outlets. ii. Coupons. Bundles and other materials will be given to regular clients. A Fresh Start Organic Card will be given to consumers and they have to fill in at least 10 stamps (20 kilograms of organic rice in total) to get another kilo of rice for free. Currency changes will make the product cheaper, thus giving away another kilo for a sustained loyalty will not hurt the overall revenue of the imported product. iii. Premiums. Organic rice. iv. Costs. SCR 25,000 for Week One c. Personal Selling. We positioned our product using the pull approach. Venturing into personal selling may create negative impacts on consumers perception, given their history with personal selling and cultural norms. So long as the product is being exposed in the media and is being talked about are some of the vital keys to give the product a try which will eventually lead them to buy through sustained promotions. d. Others. The information gateway of the World Wide Web has significantly contributed to the advancements of various global companies. We like our product to expand more by reaching out to more consumers through the online world. Online promotion includes Java applets and flash games that will promote the importance of a pesticide-, preservative-, and chemical-free food to our health. D. DISTRIBUTION. a. Port Selection. i. Origin. San Carlos City, Philippines via Manila, Philippines ii. Destination. Victoria, Seychelles via Durban, South Africa b. Mode Selection. i. Railroads. N/A; No available railroads in Seychelles. ii. Air Carriers. N/A; Too expensive for export. iii. Ocean Carriers. Descartes Sea Cargo. iv. Motor Carriers. Seychelles Cargo Express. c. Packing. i. Marking and Labeling Regulations. No specific packing is required but goods should be properly packed ii. Containerization. 5-kilogram vacuum packs, packed in cardboard boxes for shipment and distribution. Stacked by 20s in tight-air containers. iii. Costs. SCR 62,540 d. Mandatory Documentation. i. Bill of Lading. No special requirements. To Order bills acceptable.

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ii. Dock Receipt. Stapled with shippers export declaration. No

arrangement must be made affecting the price of goods other than what is shown on the receipt. iii. Air Bill. N/A. iv. Commercial Invoice. A combined certificate of value and origin is required if claiming preference. The invoice must give full description of goods and, where preference is claimed, details regarding origin and value must be completed. v. Pro Forma Invoice. Estimation must be correlated with weight and transportation costs. Transparency is a must for the bureau of customs of respective countries deem the right to inspect the veracity of the pro forma document. vi. Shippers Export Declaration. It should also show two things: (1) that the invoice is true and correct, and; (2) that no arrangement has been entered into affecting the price of the goods between the exporter and the purchases by way of discount, rebate, compensation, or in any manner other than what is shown on the invoice. vii. Statement of Origin. Must include company of exporter and province or city of country origin viii. Special Documentation. Covers handing charges. e. Insurance Claims. Covers all logistical and operational expenditures of the entire import process. f. Freight Forwarder. Aboitiz Logistics in the Philippines and Seychelles Logistical Agency in the Seychelles will be responsible for point-to-point storage and shipping of imported product. E. DISTRIBUTION CHANNELS. a. Retailers. i. Store Type and Number. Middle-sized ii. Retail Markups. 1.5% per pack. iii. Operational Methods. Partner retail outlets display product at eye-level trays. iv. Operational Scales. The medium-scale product distribution system involves point-to-point logistical operation from port to outlet to consumer. b. Wholesale Middlemen. The main channel of distribution in Seychelles is through retailers. Information about wholesale middlemen and warehousing cannot be found. c. Import/Export Agents. Import agent directly brings product from Victoria to Mahe to be picked up by partner motor-driven logistics which will be brought to retail outlets. d. Warehousing. i. Type. Pest-free, hygienic stockroom. ii. Location. Mahe, Seychelles. F. PRICE DETERMINATION.

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a. Shipment Costs. SCR 500,000 per metric tons. b. Transportation Costs. SCR 210,000 for other handling and

logistics as attributed by the following parameters in handling expenses, customs duties and insurance costs: c. Handling Expenses. i. Pier Charges. SCR 88,450. ii. Wharfage Fees. SCR 19,000. iii. Loading and Unloading Charges. SCR 60,000-75,000 d. Insurance Costs. SCR 200,000 e. Customs Duties. SCR 110,900 f. Import Taxes and VAT. SCR 62,000 g. Markups and Discounts. SCR 50,000 h. Companys Gross Margins. SCR 625,000 i. Retail Price. SCR 20 per kilogram G. TERMS OF SALE. Following the receipt of a completed order and payment through available methods in partner stores, consumer agrees that the facts provided on the package and pertinent promotional materials are true and correct. The company and the stores reserve the right to contact clienteles for further telemarketing procedures. These terms may change at any time. H. PAYMENT METHODS. Quotes should preferably be in Seychelles Rupee (SCR). Payments are made through normal commercial channels, depending on the capability of a particular method in a partner retail establishment. Cash in advance, open accounts, consignment sales, drafts and credit letters, among others, may not be available due to the limited resources to be dealt with and the lack thereof of the aforementioned stores. II. PRO FORMA FINANCIAL STATEMENTS AND BUDGETS + PROFITS AND LOSSES1 III. RESOURCE REQUIREMENTS. A. FINANCES. At least SCR 2,675,000 for operational, agricultural and logistical requirements, plus 10% mandatory contingency fund. B. PERSONNEL. Agriculture team, logistical personnel, safety control, comptroller, auditor, internal marketing relations, external marketing relations and press relations officer, among others. C. PRODUCTION CAPACITY. 10,000 packs per month IV. EXECUTIVE SUMMARY. Marketing the product in Seychelles will definitely create a huge splash in the agricultural industry and will help increase competition among rice imported from other Asian countries such as Vietnam and Thailand. Regulations and trade policies such as tariffs and

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markups are advantages on the part of Fresh Start Organics. Distribution channels are also numerous in which market saturation does not affect further trading. The slim sector of agriculture in Seychelles, making them less sufficient, is a vital part to be considered. Since the product has a different classification compared to what is available in their market today, the introduction and/or the launch must be Iine with culture, economy and state policies where operational scales and distribution process can be deemed feasible. Furthermore, the preliminary marketing plan was able to gauge the competitive advantage and the market positioning of a product that is unique to the market today. Future imports will then be referred to as a regular transaction and since the product is the staple food of the people of Seychelles, the primary objective of the promotions and marketing paraphernalia on its introductory phase is to develop a new culture that is conscious of their health by buying organic products. The identified segments, through sustained exposure, will eventually have a routine of buying Fresh Start Organics Rice. True to its mission, Fresh Start will provide healthy food on the table of every family, not only here in the Philippines, but as it continually expands around the world. V. SOURCES OF INFORMATION. The World Factbook Publication, Central Intelligence Agency (www.cia.gov/library/) Seychelles Statistics and Database Administration Section (www.seychelles.net/misd/) The Official Destination Website for the Seychelles Islands (www.seychelles.travel) Virtual Seychelles, Your Online Guide to Seychelles (www.virtualseychelles.sc) US Department of State, Bureau of African Affairs (http://www.state.gov...6268.htm) Tech Republic, Seychelles Radio (http://www.techrepublic.com/software) Seychelles Import Export Directory (http://seychelles.importers.com/) Seychelles Investment Bureau (http;//www.sib.gov.sc) VI. APPENDIX.

PRO FORMA FINANCIAL STATEMENTS AND BUDGETS + PROFITS AND LOSSES

Fresh Start Organics - Philippines

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For 2010 through first quarter of 2011 (all numbers in Philippine Peso PHP 000)

REVENUE Gross Sales Less sales returns and allowances Net Sales COST OF SALES Beginning inventory Plus goods produced Total Goods Available Less ending inventory Total Cost of Goods Sold

201 0 P 500 200 P 300

201 1 P 100 25 P 75

P 350 120 470 360 P 110 P 190

P 350 12 72 42 P 30 P 40

Gross Profit OPERATING EXPENSES Selling Salaries and wages Commissions Advertising Others Total Selling Expenses General/Administrative Salaries and wages Employee benefits Taxes Rent Utilities Equipment Total General/Administrative Expenses

35 12 10 5 P 62

5 5 3 1 P 14

42 13 12 8 5 3 P 83 P 145

5 4 3 2 1 0 P 10 P 24

Total Operating Expenses

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Net Income Before Taxes Taxes on income Net Income After Taxes

P 45 11 P 34 P 34

P 16 3 P 13 P 13

Net Income

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