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Nature leather ınternatıonal: leather
producing company in Ethiopia
By : Abdulmenan Sherif “MASTERS OF
BUSINESS ADMINISTRA...
Objective of the study
 To fulfill the course multinational marketing course of
business administration
 To create a wel...
NATURE LEATHER INTERNATIONAL
 1.INTRODUCTION
1.1 Nature leather international:-is a leather producing company which will ...
 2. What are the products of Nature leather
international company?
 Nature leather international will be established in
...
Animals distribution in Ethiopia 2011
Cattle 45.5 million
sheep 26 million
goat 21,7 million
Annual potential supply
of hi...
 Ethiopia is populated with 90 million people
and it a great market potential
 Few competitors are found in Ethiopian le...
 4.3 Turkey as target market of Nature leather products
Turkey especially Istanbul is center of tourists
The total numb...
The trade relationship between Ethiopia and Turkey :
Ethiopia has an embassy in Ankara
Turkey has an embassy in Addis Ab...
 4.4 Target markets in long run
In long run neighbor countries of Ethiopia that have a common
market agreements and a sp...
 5. ENVIROMENTAL CHARACTERSTICS OF THE
DOMESTIC COUNTRY GENERAL VIEW
the Government of Ethiopia has been actively
encour...
 6. Social and cultural environments of targeted
countries
 Leather industry enterprises are continuously influenced
by ...
 7. Marketing strategies of Nature leather
international
The leather company is a global company which produces
standard...
 For example in Ethiopia most of customers prefer products
with appropriate price so that the company should adjust
relat...
 Disadvantages of TV advertisement
 Cost is very high.
 TV advertisements are short interval of time, thus they do not ...
 Buyers visiting the Exporter’s Firm
 In many instances, buyers prefer to visit manufacturing locations
before placing a...
 Channels and physical distribution decisions
 There are many functions to be carried out in moving the
product from pro...
 Challenges of the New Leather Company
problem of bureaucracy when the company is established
The entrance of immitated...
 REFERENCES
 Derk Bienen, Ethıopıa Investment Prospects: www. trade and investment in
Ethiopia 2012 April 27 2013
 The ...
THANK
YOU
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leather production Ethiopia

a project for multinational marketing course
a leather brand from Ethiopia

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leather production Ethiopia

  1. 1. Nature leather ınternatıonal: leather producing company in Ethiopia By : Abdulmenan Sherif “MASTERS OF BUSINESS ADMINISTRATION” abdulmenan4@gmail.com
  2. 2. Objective of the study  To fulfill the course multinational marketing course of business administration  To create a well known and internationally competitive brand in leather market of Ethiopia  To show Ethiopia is a suitable country to invest in leather industry and has a potential market  To show business opportunities for stake holders especially Turkish companies which are interested in leather industry  To open further and detail studies about leather industry of Ethiopia
  3. 3. NATURE LEATHER INTERNATIONAL  1.INTRODUCTION 1.1 Nature leather international:-is a leather producing company which will be established in the horn of Africa, Ethiopia and the company will produce leather products to local countries and will exports to other countries. 1.2 Why Ethiopia is selected to the domestic country of Nature leather company?  Ethiopia is the leading country in leather production : from African countries. The country specially produces and exports unprocessed and semi- processed hides to middle east and European countries. Recently there are some infant industries eastablished in Ethiopia to produce finished leather products and offer to the nearby market and export to other countries.  Build internationally known brand:Although Ethiopia is producing leather and export in large quantity there is not any internationally known brand. Natıre leather international will try to build international brand owned by the producing country.  It is competitive advantage with an raw materials, and skilled manpower
  4. 4.  2. What are the products of Nature leather international company?  Nature leather international will be established in industry zone of Addis Ababa Ethiopia and produce leather garments, industrial gloves, bags, leather jackets for men and women and leather shoes for men women at different ages and styles.  3. The Ethiopian market conditions as a great leather supply potential for the new company  Ethiopia has the largest livestock production in Africa, and the tenth largest in the world, with 45.5 million cattle, 26 million sheep and 21.7 million goats at current estimates. The annual potential supply of hide and skins is estimated at 4.8 million pieces of hide and 12 million pieces of skin.
  5. 5. Animals distribution in Ethiopia 2011 Cattle 45.5 million sheep 26 million goat 21,7 million Annual potential supply of hide 4.8 million 4. Target market of Nature leather international products 4.1 Ethiopia and Turkey as target market The domestic country of the company is Ethiopia assuming that the country’s local market as the immediate target market and also the products will be exported to Turkey. In the long run the product will be distributed to other countries
  6. 6.  Ethiopia is populated with 90 million people and it a great market potential  Few competitors are found in Ethiopian leather industry  Nature leather international industry will produce locally and globally competitive shoes, belt, wallet and bags both in quality and in price
  7. 7.  4.3 Turkey as target market of Nature leather products Turkey especially Istanbul is center of tourists The total number of foreign tourists visiting Istanbul reached 8 million in 2011, as reported from official data . According to a statement released by the Istanbul Culture and Tourism Department, number of foreign tourists visiting Istanbul surpassed eight million. In 2010, 6.9 million foreign tourists had visited Istanbul. Visitors from Saudi Arabia, bahrain Iraq, Kuwait, Germany, Russians, Americans, Italians and French are increasing  Istanbul is a big market center to introduce a new product for other markets of the world Geographic advantage: Geographically Turkey is the bridge between Asia and Europe
  8. 8. The trade relationship between Ethiopia and Turkey : Ethiopia has an embassy in Ankara Turkey has an embassy in Addis Ababa since 1925 Turkey was the sixth country to open an embassy in Ethiopia. Today the relations between the two countries are described as excellent, both politically and economically There are Turkish investors in textile, construction and flower industry in Ethiopia . For example Ayka Addis is Turkish company invested in textile sector of Ethiopia and the company is successful in exporting textiles. There are about 10,000 people working in this company and Ethiopians living in the capital city have a positive attitude towards Turkish investors. The experiences of these companies in the country will be positive feedback for the expected joint ventures from Turkey to Nature leather international company.
  9. 9.  4.4 Target markets in long run In long run neighbor countries of Ethiopia that have a common market agreements and a special trade and political relationship agreements like trade agreements between East and South African countries COMESA will be chosen the essential markets of the products. The consumers in these countries are assumed to be in the same consuming behavior so that the company will export the products with little or without modification Middle East countries: can be taken as one of the largest target of the company. People in the Middle East wants light leather products that will be suitable for summer and semi-deserts so that the company produce to satisfy the needs and wants of the groups Europe and America:The market in these countries is expected to be highly competitive since the ability and willingness to pay in these countries is better than other markets in Asia and Africa so that leather companies from other region compete to have better market share in Europe and America.
  10. 10.  5. ENVIROMENTAL CHARACTERSTICS OF THE DOMESTIC COUNTRY GENERAL VIEW the Government of Ethiopia has been actively encouraging export industries including leather, horticulture, garment, and tourism. The privilege differs slightly from industry to industry, the leather industry has privileges such as i)tax exemption for inputs, ii) tax holiday for 5 years, and iii) lease of land with basic infrastructure, e.g. electricity, water supply, and telephone, for a low price. The business environment of Turkey will be studied with joint ventures from Turkey
  11. 11.  6. Social and cultural environments of targeted countries  Leather industry enterprises are continuously influenced by the social and cultural factors around them on both strategic and tactical terms. The leather industry must keep up with the changes around it to be able to survive and compete against its rivals. In the competitive environment, leather industry is expected to utilize up-to- date technologies in order to improve its current situation and enhance its export potential.
  12. 12.  7. Marketing strategies of Nature leather international The leather company is a global company which produces standard products suited for different local areas of the world. Since the company invites joint ventures from Turkey it will be easy to localize the product to Turkey. It is expected that the joint ventures will bring their company’s experiences ,working cultures especially the packaging styles, labeling and setting the right price in accordance with local markets. Nature leather international will use different promotional elements for a particular country
  13. 13.  For example in Ethiopia most of customers prefer products with appropriate price so that the company should adjust relatively low price products so that people in the country promote the product by word of mouth. Besides that use mass media even if the advertising cost is expensive  But in Ethiopia there are few television channels and the company can address customers using television advertisement. TV advertising allows the product to reach large number of people, both at regional as well as at national levels.  Various segments of people like house wives, young people and children are targeted through different channels like cartoon
  14. 14.  Disadvantages of TV advertisement  Cost is very high.  TV advertisements are short interval of time, thus they do not express much about the product.  It involves complicated procedure. Producing the TV advertisement involves hiring advertising agency, video editors, and actors.  Promotion in Turkey  People in Turkey are highly engaged in using social media such as facebook, twitter and other communication boxes so that the company will use the social media for advertisement.  Advertising through the Internet  Use attractive and user friendly website to the company which can display all the features of the products and invite customers to buy the product online .  Through Internet usage business organizations can easily achieve the following:  create communication between the company, potential buyers, distributors and agents;  feed buyers with all relevant sales information;  encourage buyers to order through the network system.
  15. 15.  Buyers visiting the Exporter’s Firm  In many instances, buyers prefer to visit manufacturing locations before placing an order because in some cases samples do not tell the truth about mass production. During the visit, international buyers like to see and approve the product mixes, sizes and colours; the quality standards; the operational efficiencies; the manufacturing capacities; the skills of the staff; the organizational capacities; the shipping efficiency  Buyers visiting the Exporter’s Firm  In many instances, buyers prefer to visit manufacturing locations before placing an order because in some cases samples do not tell the truth about mass production. During the visit, international buyers like to see and approve the product mixes, sizes and colours; the quality standards; the operational efficiencies; the manufacturing capacities; the skills of the staff; the organizational capacities; the shipping efficiency
  16. 16.  Channels and physical distribution decisions  There are many functions to be carried out in moving the product from producer to customer. Those functions require funding and, often, specialist knowledge and expertise. Few producers have either the resources or the expertise to carry out all of the necessary functions to get product to the ultimate user.  Turkey: Nature leather international will have distributors inside the country and also in Turkey. Since the joint venture is from Turkey it is expected that the distributing and promotional function is at the shoulder of the joint venture  intermediaries provide wider market exposure  few producers have sufficient capital to market direct and  Producers can usually earn a higher return on investment by employing available capital in activities other than those of direct marketing.
  17. 17.  Challenges of the New Leather Company problem of bureaucracy when the company is established The entrance of immitated substituents may reduce the expected market share of the company Inadequate Internal Demand Pollution Problem High Degree of Subjectivity in Quality Assessment and Grading Insufficient Enterprising Attitude of the Industry Technology Management and Financial Problems
  18. 18.  REFERENCES  Derk Bienen, Ethıopıa Investment Prospects: www. trade and investment in Ethiopia 2012 April 27 2013  The Transformative Power of PartnershipsAfrican governance facility program SADC trade development:2011/2012 page 14 http://www.africaprogresspanel.org/files  12th international economic forum in Africa: www.africaneconomicoutlook.org day of entrance May 02 2013  International Journal of Economics and Management Sciences  Ethiopia investor leading the Ethiopian business revolution http://www.ethiopiainvestor.com/index. May-11-2013  International Journal of Economics and Management Sciences: volume 2.article.8 http://www.managementjournals.org/ May 11-2013  Rajasekhara Mouly Potluri: Assessment of effectiveness of marketing communication mix elements in Ethiopian service sector( page 62 may 2- 2013)  (http://www.istanbulview.com/istanbul-attracts-record-of-tourists/May- 05-12)  http://www.briefingwire.com/pr/advantages-and-disadvantages-of-tv- advertising day of entrance May 05-2013
  19. 19. THANK YOU

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