Exporting truck to transport goods through local

Exporting
from here to Germany through shipping company is going to be expensive as even
though it will be less of a hassle we will have to give them a commission as
well as the transportation cost. The time taken to reach the product or the
condition in which we are transporting will not be an issue because of the type
of the dog chew. Dog chew is durable and lasts for a very long time. There is
no risk of the products getting spoilt or damaged due to the duration of
delivery process.

Rent
charge for an office space in Hungary is going to be expensive for us as the
average rent cost in Hungary is 243% higher than in Nepal. We are going to have
a warehouse with a small office in the outskirts of Budapest to reduce cost. As
Hungarians prefer face to face business deals having an office there will be
very profitable for us. This will allow us even to socialize with the
businesses beforehand. The online distributing is going to be easier as the
online platforms can easily pickup our product from our warehouse rather than
us shipping it after odder. Since our plan is also to sell online, goods will
also be delivered on time since we are nearer to the market compared to sending
goods all the way from Kathmandu. We can also understand the locals better this
way and can sell our products accordingly.

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We will
need to allocate cost for a local delivery truck to transport goods through
local distributors. We will need a few employees including a supervisor to look
after everything. We will need to higher some local people as well as send
expatriates from Nepal to initially build market for our product. Other
expenses include: telephone, electricity, water, furniture’s and computers. We
are going to advertise our product in the International pet fares and
competitions which will cost us as we need to open a stall there.

Firstly
online sales that have been boosting recently especially on dog food in Hungary
is going to be good source of income. Online platforms will allow us to have a
very wide reach with very limited costs. The delivery and transportation costs
of goods ordered in online platforms will be covered by them and will save us
more money.

Another
major source of income will obviously be the distribution we will be doing to
retailers in Hungary. This will be a more stable source as we will get paid for
putting our product on their selves and selling it will be their job.

1. The unique selling point of Paws is being the first
company to use churpi as dog chew. This will help us come into the market gap.

 2. It is fully
organic and nutritious with no added preservatives.

 3. Dog chew is
long lasting and durable it is durable and lasts for a very long time. During
low sales or other issues there is no chance of our product going bad and being
wasted.

 4. The political
stability in Hungary and the location being at the center of Europe will help Paws
grow without barriers

1.    Paws
will have difficulties creating peoples trusts as it is difficult to build trust
in Hungary. Also it will have a hard time competing with establish brands like pedigree
and this will make it hard for Paws to switch customer loyalty from these existing
brands.

2.     Since Paws is new in the Hungarian market it will
not profit initially. Paws needs to spend a good amount of time creating network
and building trusts for its business.

1.    The
growth in the national disposable income and awareness for healthy nutritious food
for pets can be an opening for paws to thrive in the market.

2.    The
IT sector and internet users are huge in Hungary. The number of people using online
channels to buy products is also very high. Penetrating the ecommerce market will
be an excellent opportunity for Paws.

3.    Hungarian
government’s favorable tax systems that welcomes FDI is also a advantage for Paws.

 

Threats

1.    As we
relying on a middle man to deliver our products there could be a lot of issues regarding
delays and payments. If the Dog chews are not provided to the customers when demanded
we will lose potential and existing customers.

2.    The different
substitutes from Europe and well known existing brands are the competitors who could
affect our sales.

3.    Due
to the ease and low cost of producing Dog Chew other competitors from Nepal may
emerge and try to compete in the international market.

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