SECTION 2: ECONOMIC ANALYSIS

This section summarizes general economic data that serve as a basis for an evaluation of the economic soundness of the country selected. The guideline focuses only on broad categories of data and must be adapted to particular company and product needs. Remember to assess and articulate what the implications might be to the company you are working with.

Population. Highlight the important population trends in your selected country: (INDIA)

Total.

Consider the following:

• Size
• Growth rates
• Birth/death rates etc.

Distribution of Population.

Consider the following:

• Age
• Sex
• Geographic areas (urban, suburban, and rural density and concentration)
• Rural/Urban migration rates and patterns
• Prominent ethnic groups etc.

Economic Statistics and Activity. Discuss the significance and implications of the following elements vis a vis the Company and your purposes.

Gross National Product (GNP or GDP):

• Total
• Rate of growth (real GNP or GDP)

Distribution of Wealth:

• Personal income per capita
• Average family income
• Income classes
• Proportion of the population in each class

Exchange Rates:

• Single or multiple exchange rates?
• Current rate of exchange
• Trends

Inflation rates

International Trade Statistics:

• Major exports: dollar value and trends
• Major imports: dollar value and trends

Balance-Of-Payments Situation:

• Surplus or deficit
• Recent trends

Trade Restrictions (as applicable) including:

• Embargoes
• Quotas
• Import taxes
• Tariffs
• Licensing
• Customs duties
• Other?

Sources of Information (Proper MLA)

Appendices

ANSWER THE ABOVE GIVEN QUESTIONS BASED UPON THE FOLLOWING CASE STUDY:

Business Overview

Lasssonde Industries Inc is founded in 1918 and dedicated to produce and provide highest quality food products. Lassonde are having 4 specialized subsidiaries which enable the company to accompaniment 27 recognized brands throughout Canada and the United States. The subsidiaries are Lassonde Pappas and Company Inc., Lassonde Specialities Inc., Sun-Rype Products Ltd., and Arista Wine's Brands. The company has also 24 offices and factories across Canada and The United States, and 2,200 employees.Lassonde Industries Inc is a second-largest manufacturing company in the United States which produce a wide range of ready-to-drink fruit and vegetable juices for many popular brands, such as Del Monte, Allen's, Rougemont, Oasis, Fairlee, Orange Maison, Everfresh, Fruite, Graves, Sunlike, Tropical Grove, Hydra+, and Simple Drop. Moreover, the company is also the major producer of several juices, drinks and sauces. Lassonde is also producing several drink and food products, such as apple cider and wine with eco-friendly, packaging, snack, broth, fondues, and soups. The company has also several customer list, such as Loblaws, Metro, Sobeys, 7-Eleven, Sysco, Walmart, Costco, and Kroger.

Based on company's financial highlight of Q2, 2022, the sales in 2022 increased by 10.95% or $102.5 million (2021: $936.1 million; 2022: $ 1,038.6 million). Nevertheless, the company's operating margin decreased by $10.5 million or 36.21% (2021: $29 million; 2022: $39.5 million). It happened because there was a selling price adjustment and a growth in sales volume of national rand product. On the other hands, there were a higher production cost, transportation costs, and a lower volume in US operation.

Regarding the export activity, Lassonde conducts export the product outside United States, Canada, and Mexico. However, the brands of Oasis and Allen are not applicable to be exported because of trademark concern. Additionally, the company's chilled products are not suggested for export due to shelf-life limitations. Moreover, the products that available for export are as follows: fairlee 1.89L plastic bottle, fruite 2L drink plastic bottle, rougemont apple juice 2L plastic bottle, and KIJU (organic) 200ml tetra.

The Selected Products

The selected products to be exported is Fairlee 1.89L plastic bottle which consist of several tastes, such as apple juice, light peach with fiber drink, grape, orange, pineapple, vegetable, prune nectar, white cranberry cocktail, cranberry cocktail, and tomato cocktail. The size of all products is P6x1,89L. The product's dimension is 10.7x11x9.94. In addition, the shelf life of the products are 273 days (Orange Juice, Pineapple Juice, Prue Nectar, White Cranberry Cocktail, Cranberry Cocktail, and Tomato Cocktail) and 370 days (apple juice, light peace with fiber drink, grape juice, vegetable juice, cranberry cocktail). Furthermore, the percentage of juice are 2% for light peace fiber drink, 25% (white cranberry cocktail and cranberry cocktail) and 100% (apple, grape, orange, pineapple, vegetable, prune nectar, and tomato cocktail). All products weight is 28 lbs and all the products quantity per pallet are 85 sku (17 sku x 5 rows).

The Selected Country

The group selected country is India. We choose India because India is the second-most populous country and seventh-largest country, so that it has a good business opportunity for the product to be exported because there is a strong purchasing power in India. The table below describes the overview of India:

Capital	: New Delhi	Area	: 3,287,263 km2 (9.6% water)
Largest City	: Mumbai and Delhi	Population (2022)	: 1,375,586,000
Official Languages	: Hindi and English	Total GDP	: $11.665 trillion
Language amount	: 447 languages	GDP per Capita	: $8,293 trillion
Religion	: Hinduism and Islam	Currency	: Indian rupee
Demonym(s)	: Indian	HDI Ranking	: 132nd
Government	: Federal parliamentary constitutional republic	Time Zone	: UTC+05:30
Legislature	: Parliament	Births per Day / Net Change per Day	: 12,627 / 7,044

Evaluation of Export Potential

Customer Profiles

The product is already used by all customers around United States and Canada. The product is also for general use where all age groups can consume it. Moreover, there is no effect from specific climatic and geographic to the product.

Product Modification

The product does need to be modified to appeal the customers because the nature of the product is general and accepted for all customers around the world. Furthermore, the shelf life of the product is between 273 until 370 days, so that we need fridge container for shipment.

For the packaging needs, the product must have several kinds of packaging especially for packaging in small boxes, so that customers can consume them more easily.

Transportation

The incoterm type is EXWorks, hence the company is only responsible for produce the goods at company's plant and the importer bears the full cost and risk to their destination. The transportation costs will be the major effect to make competitive pricing, hence the incoterm EXWorks is the most suitable. In addition, the chiller container is needed to keep the product fresh until destination.

Local Representation

The product needs local marketer because the company needs to reach more market share to achieve the sales target and the product does not need particular and professional assembly because it is a ready-to-drink juice. Additionally, we provide after sales service through our website from "Contact Us" application for inquiries or comments concerning company's products

Exporting Service and Capacity

Our exporting service will be considered as world-class service where we provide after sales service to our customers. If the demand of export is getting higher, the company needs to open the factory in India, so that it will be our competitive advantage where the transportation cost is reduced.