Export Plan For Sunny Oranges Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Export Plan For Sunny Oranges Assignment
Table of contents
Introduction: Why We Should Export?
Short Term Goals
Long Term Goals
Situational or Background Analysis (SWOT)
Current Export Status
Key Export Activities
Product Focus for Export
Target Customers/ Users
Export Market Strategy
Market Identification and Selection
Market Profile: Canada
End User Analysis
Potential Business Contacts
First Year Export Sales Goal
Market Entry Strategy
Cash Flow Statement
Market Research, Analysis and Planning
Export Marketing and Promotion
Export Finance/ Insurance
First Year Export Budget
Shipping and Delivery
Market Development Action Plan
Resources Inside and Outside
Background Data on Target Countries and Market
Sunny Oranges is an industry expert in the exportation of products, specifically in oranges. Established in 2017 and based in St. Augustine, Florida, United States, Sunny Oranges is the leading exporter of oranges in Florida, providing a high-quality product and a reputation for meeting large quantity demands. After Brazil, The United States of America is the second-largest country in the world that produces oranges and is recognized for providing more than 10% of worldwide production. Of that amount, Florida accounts for 70% of the US’s total product growth, the largest orange-growing state in the country. Out of the total production of oranges, Sunny Oranges produces, roughly 60% goes towards the production of juice after it is picked selectively from the orchards. Around the world, orange juice is traded in the form of concentrated orange juice and Florida-grown oranges are responsible for more than 90% of America’s orange juice. Sunny Oranges consecutively exports internationally and believes Canada would be a promising addition to our list of successful exporting endeavors. Due to its weather conditions, it is almost impossible for Canada to produce certain products, among them, oranges. Since Sunny Oranges is located in Florida, they are able to produce oranges in their ideal climate. Their only concern regarding weather would be seasonal hurricanes. However, compared to our competitors, Sunny Oranges have practices in place to ensure minimal disturbances in production, mitigating the effect of major storm. Another practice Sunny Oranges utilizes is “Citrus Security”, which is used to protect crops from being damaged by insects that feed on them. Also called Screen House, it’s one of the only ways known for avoiding the greening disease. The selling of Oranges, also categorized as citrus by the FDA, is known to be an economic engine for Central Florida. Unlike other fruits, Sunny Oranges benefits from the ease in selecting and packaging their product. Oranges are first picked from the field, then placed on a conveyor belt to be selected based on a range of color, known as the grading table. Once selected, they are readied for transportation. In regards to exporting to Canada, there are specific policies and regulations we have to follow. Before any product can get imported into Canada, the company has to have a business number registered in Canada’s Revenue Agency.
Introduction: why this company should export?
Florida has always been known for its delicious oranges. Sunny Oranges is looking to introduce this amazing product to our target country, Canada. Due to weather restrictions, Canada has a high deficit of natural fruits, such as oranges. The main reason the company is focusing on exporting their oranges is because the reputation of products made in the USA is at an all-time high, particularly in emerging economies similar to Canada’s. Products like ours, which are labeled “Made in the USA” are perceived as being high-quality and of greater value when their price is converted to other currencies. As a result of these factors, Sunny Oranges sees great sales opportunities in Canada that are sure to enable solid business growth in the future. Companies that export tend to have a 22% faster growth rate than non-exporting companies. Canada is considered to be the largest export market for the United States and imported over 23 billion dollars worth of agricultural products in 2016. In Florida, they have increased their imports by 50% over the past decade and is the third-largest market for goods made there. Regarding oranges, Canada is also the ninth largest importer of oranges in the world. In 2018, they imported 190 thousand metric tons of oranges. Canada’s customs and culture are very similar to the United States and the majority of Canadians speak English, making it easier to do business with them.
“ Sunny Oranges: Offer the freshest & most natural oranges right to your doorstep,
no matter how far the distance. ”
We are a company of citrus growers and shippers originally from St. Augustine and take pride in living where citrus products grow vastly. As an agricultural company, we are committed to sustainably grow quality Oranges and using advanced technology when it comes to farming practices. Sunny Oranges, is determined to deliver the most authentic product to every home as if it were our own. We started out as a family-operated company and have expanded given the opportunity of employment to the community in all facets of the business.
Short term goals:
- Sales growth
- Net profits
- Sales ratio
- Return on investment
Long term goals:
- Product development
- Market development
- Maintain a profitable farming operation
- Obtain a leadership position in the community
SWOT Analysis of the company
As previously mentioned, Sunny Oranges has its main headquarters in St. Augustine, Florida. Florida is well known for its mass production of oranges due to the fertility of land and good resources. These benefits lead to an easy in the production of the product ad a shortage of prices throughout the process. Hence why these may be considered as strengths. Also, the fact that only a few other states in the United States of America have these same weather and land conditions, makes us a mass producer of the product to the point some may say Florida has a monopoly in matters of orange growing and production.
Sunny Oranges is a leading exporting company in the state of Florida but only has one location. Therefore, production is only done in one part of the state. No business website that causes less information about the company towards the public. Strong dependency on only one product : oranges. This can make Sunny Oranges success go slower and not diversify the company. If we expand our company
Among the many opportunities offered to the business, expansion is the principal one. Sunny Oranges currently counts with only one location, St. Augustine, Florida. The opportunity of expansion causes great excitement among the Sunny Oranges’ family since that this would lead to an increase in sales, increase in profits and a growth of the business per se. Also, the opportunity of exporting our product not only to Canada but to other places in the continent such as Mexico
Even though Sunny Oranges is one of the largest orange exporters from the United States to Canada, the threat of other exporting companies rising successfully in the business persists. The fact that the state of Florida is a state with so many resources that benefit the production of oranges in large quantities up to the point of exporting opens many doors to business owners with similar business plans to Sunny Oranges’ business plan. Even though some competition is good to a certain point, this also poses a threat to the company because foreign companies may choose a different exporting company rather than ours.
During the process of selection of who might be our target country to export our products, we found many potential companies willing to start our journey with them, the variety of promising market is extensive. After doing the necessary analysis and studied all the potential markets that might be eligible for our product, we decide to narrow our selection into weather conditions. Many countries around the World possible has the characteristics that we are looking to succeed in a country as a big orange’s exporters. We concluded selecting Canada as our target country. Canada seems to be an excellent candidate to target our product for their lack of warm weather to have oranges production because officially, Canada’s Winter only Lasts for three months. Still, in reality, it lasts for around five to six months of the twelve calendar months, giving us an opportunity that we can not hesitate to take it. Also, by taking advantages of the USMCA ( The united States-Mexico-Canada Agreement) and NAFTA (North America Trade Agreement) gives the US greater access to Canada’s dairy market.
Market Profile: Canada
Canada is viewed as a stable and robust country economically speaking. The Canadian economy is projected to grow by just 1.4 percent in 2019. Despite the slow growth, the economy is expected to post one of its strongest job gains on record this year, while tight labor markets are resulting in strong wage growth. As many people know, the Canadian population and culture are extremely mixed with different countries around the World. Canada has been shown as one of the most friendly and receptive countries in this era. This cultural fact gives a positive forecasted for our product. Also, active feedback for Canadian customers that are always willing to buy and take a healthy alternative of food rather than anything else. Most of the Canadian schools that offer cafeteria in their facilities are required to provide healthy options of food and what can be a better fruit to eat or drink than a fresh oranges from Florida; This healthy position also gives us an opportunity to not only go to houses or supermarkets but also get to school and offices where people spend most of their time.
As technology is increasing and is available to the public, people are always getting to know about products and what they contain as part of their ingredients. Over the years, the demand for healthy alternatives has substantially increased in food products. Our product is totally organics and free from pesticide so, this will give positive feedback in the young and adult population of Canada. Also, the high level of vitamin C in our oranges is going to be an excellent source for Canadians in the prevention of flu or Cold during those months of radical climate change.
The End- User of Sunny Oranges is the entire country; what we mean with this is that we are going to price our product at an available dollar price so anyone can buy it. As purchasing power is increasing in Canada, more of the Canadian population will be able to transfer the word of our product to others, and more people will be willing to buy it and implement Sunny Oranges in their daily shopping lists.
Due to the NAFTA agreement, there is not a tariff on food products, so they are allowed to enter the product as duty-free.
All imports into Canada require the following documents:
- Approved arrival note, called charge control document (CCD) or form A8A
- The commercial invoice or the Canadian customs invoice (Canada Customs Invoice)
- The official customs form B-3
- Certificate of origin
- Licenses, permits and sanitary certifications or another type of certifications that correspond according to the specific cases
- Sales Confirmation (COS)
Potential business Contacts
The key contacts with which we need to establish a relationship are the leading supermarkets and the leading food distribution chains in Canada.
The leading Supermarkets we consider essential are:
– Webpage: https://www.walmart.ca/en
– Phone Number: 1-877-763-4077
– Webpage: https://www.loblaws.ca
– Phone Number: 1-855-416-1244
– Webpage: https://www.iga.net/?lang=en
– Phone Number: 514-324-8254
– Webpage: https://www.metro.ca/en
– Phone Number: 1-877-763-7374
– Webpage: https://www.maxi.ca
– Phone Number: 1-800-296-2332
The main Food Distribution in Canada we want to make business is:
- Empire Company (Sobeys Inc.)
– Webpage: https://sobeycorporate.com
– Phone Number: 514-324-1010
Although we chose Canada as the primary destination to expand the market outside the United States; We are creating an online platform for different markets to acquire the product. Our product is focused on Canada since being such a cold country you cannot harvest oranges, by implementing the sale of our product in supermarkets and at the same time the leading food distributors can distribute it to schools is a very beneficial important since it is this country the consumption of sodas in schools is prohibited.
First Year Export Sales Goal
In the first year, we expect to distribute 250,000 oranges to different stores thought-out the entire country, selling them to the stores at the average price of $6.99 for ten oranges (each pack). This would give us a revenue of approximately $174,750. Also, is this goal achieved, we would like to increase our exporting size three or four times for 2021.
Market Entry Strategy
The export strategy to be used by Sunny Oranges is to work with distributors around Canada; this will require less investment in the product because distributors have already done their local analysis and have a better understanding of the Canadian market. The main idea to work with Canadian Distributors is to give them better prices as wholesale, so they can also take advantage of the product and make their profit.
The Plastic mesh bags where we will be selling our Sunny Oranges are going to be recyclable, the reason behind these recyclables bags is to respect and satisfy the country waste stipulation and parameters. Also, we are going to promote our product in both of the native languages of Canada, English, and French.
Advertising and Promotion
There are many aspects regarding the promotion of a product in Canada, the first is correct exposure, and the second is deliberating the brand image that we desire. One of the main ideas for advertising that we will be using is bilingual brand name Sunny Oranges and
Oranges ensoleillées the French version of our name; this will allow more customers to recognize the brand. To promote the product during the first six months, we would like to go to schools and sports tournaments so people will see our logo and recognize our products everywhere they go.
Because we won’t be selling directly to our consumers, we will be setting a lower price to our intermediaries who are going to buy our product as a wholesale proportion; This price strategy will be great for us and for the potential intermediaries that will take advantage of the price and will play will the range of revenue for them. Sunny Oranges is seeking to become the number one alternative of oranges and vitamin C provider for the entire country of Canada.
Our product must be placed in the leading supermarket across the country. Organic is also a fundamental characteristic for our product placing; by placing Sunny Oranges in the organic section of the supermarket, people will notice and differentiate our oranges from those that have millions of pesticides, chemicals, and other additives that make our product 100% better than the competition.
Export Financing and Credit Policies
If the circumstances deserve any especial financing process will be happy to work it out with the intermediate. If not, I will be selling in a letter of credit basis. In the long run, we will be gotten to know our intermediates, and we will be able to tailor a specific financial plan.
Products are going to be packed in recyclable plastic mesh bags; the boxed are going to be refrigerated 18 degrees Celsius to preserve the freshness, and last, but not least, every product will have a stamp of organic certifying and USA product quality certification.
Tired of getting an average grade in all your school assignments, projects, essays, and homework? Try us today for all your academic schoolwork needs. We are among the most trusted and recognized professional writing services in the market.
We provide unique, original and plagiarism-free high quality academic, homework, assignments and essay submissions for all our clients. At our company, we capitalize on producing A+ Grades for all our clients and also ensure that you have smooth academic progress in all your school term and semesters.
High-quality academic submissions, A 100% plagiarism-free submission, Meet even the most urgent deadlines, Provide our services to you at the most competitive rates in the market, Give you free revisions until you meet your desired grades and Provide you with 24/7 customer support service via calls or live chats.