Internati

onal
Marketin
g Africa
Rahul Avasthy
For Lexi Pens Pv
 Vision
To be a global leader in business of writing
instruments by 2020 - heightened sensitivity
to consumer needs and aspirations, setting
new standards in quality products and
capitalizing on new business opportunities in
our Industry.
 Global pens/markers market is estimated at USD 12.3
billion

•China has a market share of 10 per cent * approx

global writing instruments industry
•China exports Rs 5,000 crore * worth pens every year, India
barely exports pens worth Rs 200 crore *

•Entry of Reynolds through GM Pens India in 1990

•1500 cr growing at the rate of slightly above the
GDP
•Organized sector accounts for more than 60 per
cent.,
•Gel pens in India estimated Market size 350 cr
•Ink market where the unorganized sector has
largely been wiped out – Major players : Chelpark,
Camel and Parker
•Terms of quality of pens, India ranks amongst the
best in the world, well ahead of even China.
* Figure as of Dec
 Profit Margins
 Advertisement spend
• Luxor plans to have an outlay of between 15 per cent to 20 per
cent of sales.
• Linc's ad-spend is about eight per cent of its sales turnover and
this year would see a shift in marketing to more above-the-line
activity
Objective
Enhance customer base
Increase market
penetration
Evoke market potential
Strengthen product
promotion
 Large continent, 53 Increase in the number of
countries educational institutions as well
6/10 Buy in bulk from as commercial organizations ->
have cell suppliers Demand for stationery products
phone retail selling in their has registered a two-fold
own countries increase in most East African
Internet is not countries
very widely
used.

Many non-
government 27% increase –
organizations and UN stationary
offices operating from Cash The liberalization of
within Africa, greater Customers the Kenyan
emphasis on Repeat economy
education and orders
Average South African household
vocational training, income R5 633,51 per month - Survey
demand for stationery 2007

and related products

 Environmental influences on
international marketing

Legal
Socio/Cultural Political

Econom Technologic
ic al
 Africa - Socio/Cultural
• Region :
World's second-largest and second most populous continent, 61
territories, 53 countries
• Population :
Over a billion : 14.8% of the World's human population
Some states with more than half of the population under 25 years of age
• Climate : tropical to subarctic on its highest peak
• Language :
4 major language, English & French
• Sports : Football & Cricket
• Religion : Islam, Christianity, Hindu
• Afropolitan ; Black Proud ;
 Africa - Economic
– Economy •Per Capita Income
• World's poorest and most
Underdeveloped continent South Africa
• Rate of economic growth $10,270
increased averaging 5% since
Central African Republic
2005
$1,080
• Human rights violations,
Sub-Saharan Africa
• Lack of central planning,
$1,770
• high levels of illiteracy,
Middle east&North Africa
• Liberalization
$5,700
• Lack of access to foreign capital,
• Rich in Natural resources
• Bottom 25 ranked nations (151st *South Africa, Tanzania,
to 175th) were all Africa
Tunisia, Algeria, Kenya,
• Chinese companies invested a Internet
total of US$1 billion in Africa
Morocco, Egypt,
36 countries – active
 Mauritius, capitals
Zambia,
11 countries
Ghana – active online
43 countries – reach
 Competition

• Dubai
- Already developed extensive network of retailers
- Geographical proximity to the East African coast ,low freight
- Well developed warehousing and stocking facility and, of
course, a reputation for reliability
- Low import duties and direct supplies form manufacturers
in the Far East and China
- Excellent shipping connections
- UAE’s trade with Africa has more than doubled in the
past two years.
- Jebel Ali Free Zone - of Rwanda, Congo and Tanzania
Low prices, easy availability.
 CORPORA
METAL
TE
Lexi Pens : Quality for a good price
Affordability and ease of writing
 Entry barriers

• Cartels on transport prices

• Low transport quality (breakages) across country
borders
• New players(Transport) not entering the market
• Customs regulations
• Market access restrictions
• Restrictions through freight sharing schemes
• Corruption
• Restrictive practices, such as air transport agreements
• Supplier agreement
• Freight Sharing Schemes
• Queuing system for delayed transport
 BTL Activities
• School Lexi play
programs
• Direct Mail
• Consumer Competitions
• Promotions
• Sponsorships
• In-Store Displays •Sales aids and presentations
Brochures •Promotional gifts and
• Trade Marketing corporate clothing
• Public Relations •Loyalty programs
•Interactive devices; scratch
cards, mystery discounts,
keys etc.
•  'product amplifier'.
•B2B Corporate Segment – For
gift and
customized writing instrumen
 Critical Success Factors

•Visible commitment from senior company

management and the board of directors.
•Initial launch and communication campaign of the
products.
•Ongoing and appropriate awareness and marketing
initiatives.
•Conformity to delivery time (10 Days)
•Commitment to follow up and investigate tip-off
reports as well as to conduct appropriate follow up
and corrective action.
•Quality of the product
•Balance between conformity and creativity
Winning Strategy
Linear model of the negotiation
process for African Continent
Non-task sounding

Task-related
exchange of
information
Persuasion

Concession and
agreement
 Tariff/Non Tariff Barriers
• Non-tariff barriers exists in spite of liberalized economy in few
countries
– Tariff information - (SAFTO),
– Import tariffs? South Africa’s import tariffs range from 0-45%
– Import surcharges are assessed on the customs value
– Import permit is required
– Certificate of Origin required to export product
– Customs and entry procedures
•  Basic documents required for shipments to South Africa include: 
1) A commercial invoice which shows the price charged to the
importer in addition to the cost of placing goods on board ship for
export; 
2) Bill of Lading; 
3) insurance documents; and 
4) Packing list. 
• An agent is highly recommended, but not required
 Stakeholders of Lexi
pens
Home country
Shareholders
Expatriate government
staff Individual
Suppliers politicians and
civil servants
Distributors Host country
& retailers government
Local workers
Customers and their
Local organisations
Pressure
competitors Competitorgroups
MNEs
 Social Media in
Africa
• Mobile Penetration : The average is 30.4% and there are 280 million
subscribers in total.
• Afrigator (a South African aggregator of African blogs and news)
• Zoopy (a YouTube/Flickr like service also out of South Africa)
• Ushahidi (an SMS crisis reporting and mapping engine from Kenya)
• Muti.co.za (a Digg-like South African news site)
• Sokwanele.com (an SMS/mapping application similar to Ushahidi)
• Amatomou (a South African news and social media aggregator)
• BlogSpirit (a Ugandan blog aggregator based on the open source
Gregarious)
• Mzalendo (portal for tracking the actions of Kenya's Parliament)
• Outdoor: 25 capital cities, 300+ sites
• Outdoor: 200 banner boys, kiosks
• Credit card loyalty Bonus pens
• On Ground - Coffee shops – discounted coupons
exclusive pens
• Signature Analysis Kiosks
• Frequent flyer – Mileage points premium pens
• Youtube Virals
• Online Promotions – Orkut, Facebook
• Radio Promotions
• ON Air Promotions – Kids show, News channels
Thank
You Macroenvironment

Economic Legal
Microenvironment

SuppliersCustomers
Company

Distributors
Competitors
Social Physical

Technological