SIF has come a long way and has strong a strong base in india. 1)MARKET RESEARCH The company first needs to do a market study. It has to do an extensive market research with the help of an external marketing research company before it tries any of the markets. Because people%u2019s lifestyle change with the change of place. 2)FUNDING : If the market research is favorable, the next step is to think about how it will finance the expansion. The company already has reserves of 52mn plus profits of 12.5mn. However to increase production capacity, and for the initial expenditure involved etc the company would either have to borrow money or go public by issuing shares. 3)PRODUCTION : The cost of labor as well as raw materials is relatively cheaper in India, than in US or Europe. Hence it is would be a wise decision to continue production in India and increase its production capacity to cater to other markets. 4) DISTRIBUTION : SIF can have a joint venture with the local companies in US and Europe, since they will be having knowledge of the local markets. It can use its distribution channel to the best possible extent. Once the company understands the market and develops a good relation with the distributors it can float on its own. 5) MARKETING : Different people have different cultures and even the colors the presentation the medium everything depicts a different picture in different places. Hence there is a necessity to involve local marketing agency. A tie up will bridge the cul
RE:Study before you Act!
by on Jun 18, 2007 03:10 PM Permalink
yes sif has to consider going global 1.As for the asia pacific comprising of singapore malaysia philipines and srilanka which have a large south indian diaspora the product can be manufactured in india and sold there without any problem because the travel time is an average of two and half to 4 hours the product shelflife will not be affected and there will be no need to add more preservatives.The Australian market which also has a huge south indian student and young working professional population will also be a good market but the production has to be done there itself for idly and dosa batter while pastes and pappads can be exported from here.so a small production unit has to be established there.As for the US UK and european markets a production unit can be setup in canada for the batter and exported to these countries.The papad dryfloor and pickles can be exported from india.Both the US and Cananda will turn out to be very good markets because of a good network of INdian grocery stores which are hughely popular with the diaspora.the pastes which are at present packed in jars have to be packed in leak proof aluminium satchets because it will occupy less space and consequentially lower freight charges.AS for the procurement of pulses the company cna consider importing form myanmar which is a cheaper source as compared to AP and TN.The company can also consider Mobile selling vans in Rural areas for Batter and packaging pastes in smaller satchets to attract rural markets t
