Export Plan For TBC Brand 13.5.19

Export Plan for TBC brand
Prepared by :
Navneet jain
(Head International Market)
Priya Tiwari
Executive International Marketing
Date :14/5/2019
Basic Considerations for Export
• Capacity: do you have enough to export? What’s the rule of thumb…;

• Market Research/Targeting: identifying markets; consumer culture/
tastes; demand for product/service ;identifying channels of distribution;
required standards & quality (i.e certifications- e.g GAP, HACCP);
• The Visual: Packaging; Labelling;
• Marketing: Branding and in-market promotion( including selling in-
market- warranties, return policy, after sale service etc.);
• IP Protection: Register your name, mark and brand in all target markets;
• Market Access: Trade Agreements;
• Exporter Registration – after trade agreement
Requirement for export
 Product catalog
 Price list
 Marketing plan
 Agreement draft
 Samples & trade documents
Target countries for 1st Quarter
In Middle east In South east Asia Caribbean countries
 Saudi Arabia  Philippines  Trinidad & Tabaco

 Iraq  Malaysia  Jamaica and all Caribbean
 Cambodia countries
 Apart form that we will also target some existing customers for OEM and
distribution.
Plan 1
Target the specific countries & Plan meetings, visit that countries and after the assessment the
market and finalize the distributor accordingly.
Advantage :
 Fast process to generate business
 Aggressive approach which is more effective and time saving process.
 More suitable for FMCG & cosmetic companies.
 More effective because we are doing face to face meeting with customer and it is easy to
convince them.
 We can asses actual market and distributor’s strength and weakness.
 Gives clear picture of the market.
 Actual market feedback and observation.
 More opportunity to make multiple distributor.
Disadvantage :
 Cost involvement.
Meeting & Registration
Meeting Country Agreement
distribution & order
arrangement visit
finalization proceed
Plan 2-
Work from office, search via emails and cold calls and then finalize distributor. For this we
can target multiple countries or continent wise countries.
Advantage :
 Its cost saving strategy as compare to other plan A.

 We can target multiple distributor & countries.
Disadvantage :
 Time taking process

 We can’t asses the market, as we are depends on secondary data
 Not as much effective to plan 1 strategy.
 We can’t check the authenticity of the distributor
Find distributor
Data Sample Registration
via emails & Agreement
searching sending & order
cold calling
proceed
Saudi Arabia
Country overview
Saudi Arabia Cosmetics Market
Market Overview
Cosmetic industry in Kingdom of Saudi Arabia is growing at rapid pace and standard of living of rich in
the country is virtually incomparable to any other country in the world, which is the major factor for
the growth of premium cosmetic products. Cosmetic industry growth is majorly driven by young and
aspirational population who want to invest in grooming, getting attractive appearance and maintaining
their health in the process. As the region is highly conscious about the ingredients of the products,
there is as significant demand for ethical and natural cosmetic products. Demand for such products
pushed the international and local market players to develop innovative products in order to sustain
market competitiveness. More women are now working in Saudi Arabia than ever before, growing the
disposable income and boosting the sale of more premium cosmetic brand products.
Goldstein Research analyst forecast the Saudi Arabia cosmetics market to expand at a CAGR of 11.4%
during the forecast period 2017-2025. Moreover, the market is projected to reach USD 6.8 Billion by
2025 owing to growing market for natural products, personalized products and services.
Highlights
 Saudi Arabia cosmetics market to expand at a CAGR of 11.4% during the forecast period 2017-2025
 Highly conscious about the ingredients
 Cosmetic industry growth is majorly driven by young and aspirational population
 The market is projected to reach USD 6.8 Billion by 2025 owing to growing market for natural
products, personalized products and services.
 USA & European brands dominant
Saudi Arabia Cosmetics Market Segmentation
By Product Type
Skin care
Hair care
Makeup
Fragrances
Hygiene Products
By End Users
Premium Consumers
Mass-Market
Professionals
By Demography
Men Cosmetic Products
Women Cosmetic Products
By Distribution Channels
Online Channel
Offline Channels (Beauty Specialty Stores Etc.)
Distribution Channel
Proveda Herbal
Saudi Distributor Or Agent
Online Stores Wholesaler Super Market/Pharmacy Chain
Retailer
Consumer
Duty Structure
Sea freight (CIF Cost ) 10-12%
Import & custom duty 5%
Vat 5%
Local transport (port to 5-7%
warehouse )
Margin Structure
Distributor Margin 25-30%

Wholesaler’s Margin 5-7%
Supermarket Chain’s Margin 30-40%
Retailer’s Margin 30-40%
Biggest Cities In Saudi Arabia
Rank City Population

1 Riyadh 6,506,700
2 Jeddah 3,976,400
3 Mecca 1,919,900
4 Medina 1,271,800
5 Al-Ahsa 1,136,900
6 Ta'if 1,109,800
7 Dammam 975,800
8 Buraidah 658,600
9 Khobar 626,200
10 Tabuk 609,000
Supermarket In Saudi Arabia
CARREFOUR
PANDA
ZEE MART
TAMMI
ABDULAH
DANUBE HYPERMARKET
LULLU
 Modern Trade Cover 55% And General Trade Cover 40% And 5% Cover By Online
Trade
Major Indian brands In Saudi Arabia
 Himalaya
 VLCC
 Dabar vatika
 Biotique
 Trichup
 V-john
 Emami
 Vini cosmetic
 Lotus cosmetic
Product Launching plan For Saudi
We Will Launch Facial Kit, Soap, Oil,
Bleach, Hair Removal Cream,
Stage 1:- Shampoo, Whitening Face Cream,
Scrub, Massage Gel, Massage
Cream. Sun Care Range
We Will Start With Men's Grooming

And Professional Range Like
Stage 2 :- Shaving Gel, Hair Gel, Hair Mask,
Hair Cream, Beard Oil, Professional
Shampoo Etc.
Process to enter the market
 Find distributor & importer through email & call ( Navneet and Priya will
work on it )
 Send samples to interested parties
 Arrange at least 20-25 potential meetings and visit the country for finalize
the deal.
Time for business generation
 2-3 month for deal finalization

 Registration process 2 -3 month
Marketing and Sales Strategy
Required to check with Saudi importers or directly with the Saudi Arabian standards
organization, (see appendix I for address) on the precise implementation of Saudi Arabian
standards pertaining to their exported products to the kingdom. Saudi standards can be
purchased from SASO or the American standard.
Products to be exported should be properly branded and labeled both in English and Arabic.
 First we will select proper product items according to the market.

 After first consignment we will visit and work with distributor for placement of the product.
 We will start our distribution with general trade and online trade along with some B grade
supermarket and pharmacy chains. After that we will cater the a class supermarkets and modern
trade chains.
 We will run attractive scheme for retailer and wholesalers to promote the sales.
 We need to make list of wholesalers, departmental stores, pharmacy chains and cosmetic shops
to run the promotional activities.
 After some response we will appoint one person who will take care of saudi market for us .
Process chart for Saudi market
Distributor Selection
Agreement with distributor
Registration process
First container shipment
Product placement with distributor
Appointment of sales person/country manager to handle the market
Track the market time to time and set the sales target
Cost of Traveling per person
Particular Cost in Cost in

inr USD
Flight round trip from Delhi to 25-30k 440
Saudi Jeddah
Hotel charges (7-10 days) 35-40 k 590
Food (7-10 days) 21-26 k 385
Taxi cost for meeting 25-30 k 440
Total 126 k 1855
Philippines
Country overview
 The Philippines, consisting of some 7,107 islands, is located in the western Pacific Ocean.
Taiwan lies to its north, and Vietnam to the west.
 It is the 73rd-largest country in the world by surface area, but with a population of some 98
million people, making it the seventh most populous country in Asia, and the 12th most
populous in the world.
 Per capital income is 10,030 PPP dollars (2017) and GDP is 31,359.52 crores USD (2017)
 Its capital, Manila, is the second largest city in the country after Quezon City (the former
capital) - and home to most of the country's educational and political institutions.
 More than 170 different languages are spoken across the Philippines, the most popular being
Tagalog (Filipino), followed closely by English.
 More than 90 percent of Filipino people are of the Christian faith, while five percent practice
Islam. The remaining five percent are made up of a mix of minority religions.
 The Philippine peso (currency code: PHP) is the official currency of the Philippines
Cosmetic Market Overview
In 2017, beauty and personal care in the Philippines continued to record healthy growth,
benefiting from favourable economic conditions, a rising standard of living, prominent
global trends, the further development of the country’s retailing industry and the growing
influence of social media, with these all contributing to rapidly changing consumer
behaviour. All of these factors impacted consumers’ choice of beauty and personal care
products
 PHL cosmetics industry seen growing by 6% over next five years

 Revenue In The Cosmetics & Personal Care Market Amounts To Us$3,393m In 2019. The
Market Is Expected To Grow Annually By 2.1% (Cagr 2019-2023).
 The Market's Largest Segment Is The Segment Hair Care With A Market Volume Of
Us$815m In 2019.
 In Global Comparison, Most Revenue Is Generated In United States (Us$79,814m In
2019).
 In Relation To Total Population Figures, Per Person Revenues Of Us$31.39 Are Generated
In 2019.
 Sachets and small packaging is now very popular in Philippines
 Thailand and Korean and Chinese product have dominance in the market
 Pricing is play very important role.
Revenue growth in the Cosmetic & personal care segement from
2010-2019
Overview of the Domestic Market The Philippines
 According to industry insiders, imports supplied an estimated 25 percent of total market.

 In past years, Thailand and Indonesia were the top cosmetics and personal care products
suppliers to the Philippines
 Local manufacturers of cosmetics, toiletries and personal care products use whitening
ingredients to address local and export demands. Most companies include a whitening
component in their entire product line -- from soaps and moisturizers to toners and UV-
protection products and creams
 Philippine-made cosmetics, toiletries, and personal care products are exported to other
countries, primarily to the Middle East. The demand for cosmetics, toiletries, and personal
care products continue to grow as consumers become more aware of the importance of
health and hygiene.
 There are now also more products formulated for young skin aimed at young consumers.
Major domestic manufacturers are Procter & Gamble Philippines; Colgate Palmolive
Philippines; J&J Philippines; Amway Philippines; Unilever Philippines; Splash
Corporation/Hortaleza Beauty Center (HBC); Ever Bilena; Lamoiyan Corporation; and Rainiers
Research Development Institute, Inc. Imported products include brands such as Max Factor;
Avon; Fullerton/Sara Lee; Mary Kay Cosmetics; Maybelline; L’Oréal; MAC; and Shiseido
Duty Structure
Import & custom duty 7%
Vat 12%
Local transport (port to 10%
warehouse )
Margin Structure

Biggest Cities In The Philippines
1 Quezon City 2,936,116
2 Manila 1,780,148
3 Caloocan 1,583,978
4 Davao City 1,632,991
5 Cebu 922,611
6 Zamboanga City 861,799
7 Taguig 804,915
8 Pasig 755,300
9 Cagayan De Oro City 675,950
10 Paranaque 665,822
Distribution Channels and Marketing
According to different studies, Filipinos are some of the heaviest internet users with an
average of six hours per day spent online. Imported products are distributed mainly in
department stores, supermarkets, hypermarkets, drugstore chains, duty free outlets, and
through direct sales channels – a reflection of aggressive marketing of these products on
various platforms, including social media. The best way for a indian company to sell to the
Philippines and ensure broad exposure of its products is by working through a distributor
who distributes its products nationwide through dealer or agent connections. It is
advantageous to a brand for foreign principals/exporters to provide promotional materials,
advertising, and training for sales and service staff of their distributor.
Pricing
Imported goods for sale in the Philippines are not only considered quality products, but are also more
expensive. If the difference between a locally manufactured product and an imported one is a few pesos, a
consumer would likely buy the imported brand. Filipino consumers are increasingly more discerning and
brand-conscious and this is more and more reflective in their purchase habits. They watch out for product
promotions that offer their favorite products at lower prices and think twice before making purchases. To make
products more available to consumers, cosmetics and personal care companies, including multinationals,
have repackaged products into single-use sachets. Consumers have the option to buy in quantities they need
and can afford; for example, they can buy one sachet only or enough sachets for a week or two. The average
mark-up for consumer goods is 40 percent
Best Sales Prospects

Type Product category
skincare (hand and body lotion, facial care, liquid and soap, hair care products
products (shampoo, conditioners, and hair treatment)
oral care (toothpaste, toothbrush, and mouthwash
Whitening anti-wrinkle products, make-up preparation for the skin (such as
creams powder, liquid foundation, and blush on), and preparations for skin
care (cleansers, toners, and moisturizers
Registration process :
Although control is improving, corruption remains a significant challenge with regard to the
product registration process in the Philippines. The registration process is slow due to a
complex bureaucracy and paperwork requires many signatures before final approval. The
maximum time needed to register a product with the Food and Drug Administration is from 3
to 18 months. However, there is a directive from the current administration to cut the wait
time for all government documentation process to three days.
Documents required
1. Valid Foreign Agency Agreement (FAA) or any form of authorization from each source/supplier
duly authenticated by the Territorial Philippine Consulate
2. 2. Proof of GMP Compliance of Manufacturer (any of the following): a. Valid GMP Certificate
of manufacturer issued by the government agency or accredited business association (WHO,
ECC/EU, COLIPA) in the country of origin b. Self-declaration of compliance to GMP if
manufacturer is from an ASEAN Member State c. Certificate of Free Sale issued by the
government agency (National Regulatory Authority or Chamber of Commerce) in the country of
origin
3. COA
4. MSDS
work on it )
the deal.


trade chains.
 After some response we will appoint one person who will take care of Philippines market for us .
Process chart for Philippines market
Malaysia
Country overview
 Malaysia is a Southeast Asian country occupying parts of the Malay Peninsula and the
island of Borneo.
 It's known for its beaches, rainforests and mix of Malay, Chinese, Indian and European
cultural influences.
 The capital, Kuala Lumpur, is home to colonial buildingsWith a population of over 30
million, Malaysia is the world's 44th most populous country.
 It has land borders with Thailand in West Malaysia, and Indonesia and Brunei in East
Malaysia.
 Malaysian GDP has grown at an average of 6.5% per annum for almost 50 years.
 Today, Malaysia has a newly industrialized market economy, ranked fourth largest in
Southeast Asia and 38th largest in the world.
 The official language of Malaysia is Malaysian, English remains an active second
language and its currency is Ringgit (RM) (MYR)
Cosmetic Market Overview
 Malaysia saw real GDP growth of 5% in 2017, which led to an improvement in consumer
sentiment. The growing importance of halal-certified products amongst the Muslim population in
Malaysia led to rising demand for halal products in beauty and personal care during 2017.
 Halal-certified beauty and personal care products are manufactured in compliance with good
manufacturing practice (GMP) provided by the Department of Islamic Advancement of Malaysia
(JAKIM).
 Consumers show strong confidence in purchasing brands from multinational giants such as
Procter & Gamble, Unilever, L’Oréal, Colgate-Palmolive and Wipro Unza.
 Key launches in beauty and personal care in Malaysia were associated with an increasing number
of consumers seeking products that are convenient to use. For example, Bigen launched its One
Push hair colorants range, for consumers to color their hair at home with no mixing required.
 Categories such as color cosmetics and skin care are anticipated to see stronger growth in
comparison with the review period, since consumers are becoming more willing to make impulse
purchases of such products to ensure their health and wellness.
Bath & Shower in Malaysia
Prospects
 Stronger preference for natural ingredients
 Higher demand for body wash/shower gel
 Halal bath and shower ranges
Competitive Landscape
 Strong product variants from Unilever
 Private label sees rising popularity
 Forecast period trends
Mass Beauty and Personal Care in Malaysia

Prospects
 Mass skin care drives growth
 Strong demand for mass color cosmetics
 Forecast period trends
 Unilever leads with diverse brands
 Extensive consumer reach via multiple retail channels
 Price competition
Men's Grooming in Malaysia
Prospects
 The rising significance of men’s grooming
 Skin whitening is a major feature
 Product extensions
 Mass brands top the ranking
 Rising share of premium brands
 Offline retailing dominates distribution
Premium Beauty and Personal Care in Malaysia
Prospects
 Premium skin care drives growth
 Premium colour cosmetics shows significant growth
 Price competition within premium sets/kits
 Estée Lauder remains the leading player
 Department stores leads distribution
 Increasing number of monobrand specialist retailers
Skin Care in Malaysia
Prospects
 Growth of pharma skin care products
 The popularity of anti-agers
 Skin care products with natural ingredients and healthier claims
 Procter & Gamble leads
 Local halal brands compete against international brands
 Multi-channel retailing
Sun Care in Malaysia
Prospects
 Sun protection drives growth
 Self-tanning reaches maturity
 Sun protection formats
 International players lead
 The rising presence of private label
 Store-based retailers dominate distribution
Overview of the Domestic Market
 Cosmetic’s products usually sold through Supermarkets/ hypermarkets, Department Stores,

Pharmacy/Personal Care Stores, Direct Sales/Marketing and Specialty Stores.
 In Malaysia, there are more than 60,000 types of cosmetics available in the local market
 The cosmetics business in Malaysia tends to use a competitive strategy to promote a high
discount for the brand cosmetics and installment sale for the costlier products.
 Therefore, promoting for the brand products is increasing in order to achieve the highest
marketing for certain products. In addition, the uncommon discount for the expensive
cosmetics that contributes to maintaining the cosmetics market to be active among
consumers.
 Currently, Malaysian consumers influenced by the promotion offer in the market and looking
for cosmetics when they are given a discount especially with premium products.
 Malaysia is an Islamic country that’s trying to play an important role in producing halal
products and services in order to achieve a high potential as a new source of economic
growth.
 Moreover, the market is expected to increase annually to reach a growth rate of 10.2%
during the period 2015-2020
Biggest Cities in Malaysia

1 Kuala Lumpur 1,588,750
2 Seberang Perai 818,197
3 Kajang 795,522
4 Klang 744,062
5 Subang Jaya 708,296
6 George Town Penang 708,127
7 Ipoh 657,892
8 Petaling Jaya 613,977
9 Selayang 542,409
10 Shah Alam 541,306
Distribution Channels and Marketing
 The organic cosmetics market in Malaysia is anticipated to expand at a compound annual
growth rate (CAGR) of 9.7% during the forecast period 2014-2020, and reach a valuation of
US$ 533.3 Mn, according to a research report “Organic Cosmetics Market: ASEAN Industry
Analysis and Opportunity Assessment 2014-2020.”
 On the basis of distribution channels, FMI has segmented the Malaysia organic cosmetics
market into department stores, franchise outlet, beauty specialist salon, direct sales,
chemist/pharmacies, and online retail.
 Among these aforementioned segments, franchise outlet and beauty specialist salons
accounted for nearly 53% of the total sales. On the other hand, the sales of organic
cosmetics through online retail is anticipated to witness a CAGR of 9.8% during the forecast
period 2014-2020.
 The consumers’ interest was influenced by heavy advertising, marketing and growing
prosperity that increased their interest in premium brands. The Malaysian local cosmetics
and toiletries market is valued at about MYR 3 billion, with a growth rate of 13% annually
Pricing
 Currently, the attitudes towards using cosmetics are changing among the population.
Women show a great importance on personal grooming as well as working women and
those with higher incomes are often interesting to buy premium personal care
products.
 Nowadays Malaysian men also tend to see a personal grooming as a necessity rather
than a luxury. Consumers also seem to be ready to pay higher prices for high quality
and good benefits products, such as whitening, multi-functions and anti-ageing.
 According the Malaysia department of statistics the total spending in cosmetics and
toiletries is about US$407 million in 2013. Malaysian consumers tend to obtain beauty
products from top name brands that are marketing specifically in term of enhancing
youthful appearance
Best Sales Prospects
Type Product category
Skin Care Face wash, soap, Scrub, Lotions,

Sunscreen, Facial kits, massage creams,
gels.
Hair care Shampoo, Conditioner , Hair oil, Hair

spa, Hair serum
Mens Hair gel, beard oil, shaving creams

groomin
g
Duty Structure
Import & custom duty 0-5%
Vat 6%
Local transport (port to 7%
warehouse )
Margin Structure

Registration process :
 Malaysia’s Drug Control Authority (DCA), which was established under the
Control of Drugs and Cosmetics Regulations 1984, is a government authority
that ensures the safety, effectiveness and quality of cosmetic products
marketed in Malaysia. The DCA is responsible for the registration and
licensing of all pharmaceutical and cosmetic products, monitoring the
quality of registered products, and Adverse Drug Reaction Monitoring.
 Imported products must be registered by a local firm or distributor that has
written authorization to hold the registration certificate and supervise all
subsequent registration issues.
Documents required :
 Letter of authorization
 Certificate of Free Sales
 Certification of observance to Good Manufacturing Practice
 Standard Operating Procedure for GMP Alternative Certification Body
 Finished Product Specification
Process chart for Malaysian market
work on it )
the deal.

work on it )
the deal.


trade chains.
 After some response we will appoint one person who will take care of Malysian market for us .

Export Plan For TBC Brand 13.5.19

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Export Plan for TBC brand

• Capacity: do you have enough to export? What’s the rule of thumb…;

 Saudi Arabia  Philippines  Trinidad & Tabaco

 Its cost saving strategy as compare to other plan A.

 Time taking process

Saudi Distributor Or Agent

Online Stores Wholesaler Super Market/Pharmacy Chain

Distributor Margin 25-30%

Rank City Population

We Will Start With Men's Grooming

Time for business generation

 2-3 month for deal finalization

 First we will select proper product items according to the market.

Agreement with distributor

First container shipment

Product placement with distributor

Appointment of sales person/country manager to handle the market

Particular Cost in Cost in

 PHL cosmetics industry seen growing by 6% over next five years

 According to industry insiders, imports supplied an estimated 25 percent of total market.

Distributor Margin 25-30%

Best Sales Prospects

Time for business generation

 2-3 month for deal finalization

 First we will select proper product items according to the market.

Agreement with distributor

First container shipment

Product placement with distributor

Appointment of sales person/country manager to handle the market

Mass Beauty and Personal Care in Malaysia

 Cosmetic’s products usually sold through Supermarkets/ hypermarkets, Department Stores,

Rank City Population

6 George Town Penang 708,127

Type Product category

Skin Care Face wash, soap, Scrub, Lotions,

Hair care Shampoo, Conditioner , Hair oil, Hair

Mens Hair gel, beard oil, shaving creams

Distributor Margin 25-30%

Agreement with distributor

First container shipment

Product placement with distributor

Appointment of sales person/country manager to handle the market

Time for business generation

 2-3 month for deal finalization

Time for business generation

 2-3 month for deal finalization

 First we will select proper product items according to the market.

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