際際滷

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Food Export
to China
By
Jimmy Pan
Why Brown Rice?
Starvation
The infamous food safety
How to address this need?
 Purchase brown rice from farmers in Arkansas
 Shipment to China
 During the early stage, become distribution
partners with COFCO
 Pay the distribution fee
 Start making advertisements
 Apply incentives
 Schedule supply shipment
Hurdles?
Chinese Peoples taste preference?
Import Quotas?
Pricing?
Taste Preference
 Incentives
 Discounts
 Gifts
 Once they learned the benefit of it, they
will start to consume more and more
Import Quotas
 Communist Government
 Government controls the quota
 Two types of quota
 government
 private
 Government will not assign quota until the
government quota meets the countrys
demand.
Pricing
 Low price?
 loss money to shipment fee and distribution
fee
 High price?
 Upper class people rarely cook
 Lower class people cannot afford it
 Target Market: Middle class
Questions?

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Presentation1 2

Editor's Notes

  • #2: As you know, China is the most populated country on earth, with so many people and limited arable land, 9 percent of Chinese people, thats 12 million people goes to bed hungry everynight and countless people died of starvation. These people need food, and thats where I come in. by exporting top quality crops(brown rice) into China, with a reasonable price, people will start to consume brown rice because of its health benefit to your body, once people starts to consume it, it will slowly penetrates the market. When it penetrates the market, number of consumers will increase dramatically.
  • #3: I had this idea for a quiet some time now, and people has been asking me: why brown rice? As people in China getting wealthier, a healthy life style becomes more and more important. Brown rice contains more nutrition that our body needs than white rice, and it renders quicker cooking times and makes it easier to digest as its much lighter in the in the stomach. You can see from this graph just how much more nutrition brown rice have than white rice
  • #4: As I mentioned before, approximately 12 million people goes to the bed hungry everyday, as you can see from this graph, China grows over 140 million metric tons of rice to feed 14 billion people, thats equivalent to 100 kilograms of rice per person, however, if you take a look at the food distribution graph, you can see that not every state gets enough food, some state even has more food than it can consume. Leaves other state starving.
  • #5: So we know these people need food. But they dont just need any kind of food, they need healthy food. Food that can make them stronger, not food that only can fill up their empty stomach. Food safety is known to cause several diseases affected nearly 300 million Chinese consumers. Such as poisonous rice and gutter oil, GMOs, Poisonous Jinhua ham, Sudan I Red Dye, Counterfeit baby formula. I can keep going for days. With these foods in the market, people are craving for healthy, safe foods. Brown rice not only can fill up your stomach, but its also a safe and healthy food source and
  • #6: First, I will purchase the amount of rice equivalent to Chinas import quota from Arkansas because they have really high quality rice. The next thing will be shipping. When the good arrives at China, I will sign a contract with COFCO to become distribution partners, so I pay the distribution fee and they use their reputation to distribute it into the market. While they are distributing my product, I will start to make advertisement. after my product penetrates the market, I will apply incentives such as discounts to encourage people to buy it When people starts to purchase my product, I will start schedule my next supply shipment.
  • #7: There are a lot of problem I will run into, but the major problems are these three. The biggest challenge for me is to make sure that Chinese people will accept the taste of brown rice.
  • #8: People in china has been consumer white rice for all most their entire life, so its kind of hard for them to change their taste preference. So instead of change their taste preference, we can make them use to the taste of the brown rice. One way to encourage them is to use incentives such as discounts and gifts along with the purchase. And once people start to consume and learn the benefit of it, it will attract more consumers and eventually raise the brand awareness because not a lot of companies sell brown rice in china.
  • #9: China has a communist government, which means the government controls everything, includes the most two important factors: tariff and quotas. There are two kind of quotas in China, government quota and private quota. The government quota serves the purpose of making sure the country has enough supplies before release the private quota. There is nothing I can do about it besides change the way chinese government works.
  • #10: Another problem I will face is the pricing. Since brown rice is an exported good, the price cannot be too low, so I need to decide my target market. If I set the price too low, then we will loss money from the shipment and distribution fee If I set the price too high, Lower class people wont be able to afford it. And Upper class people rarely cook. So in that case, my target market will towards the middle class families where they can have xtra money to improve their standard of living.
  • #11: Hunger has killed more people every year than Aids, malaria and TB combined, it causes the death of 3.1 million children under five every year. 5 million people died from food poisoning because their lack of clean food source. This maybe is not the best business to be in, but its the least I can think off to give back to the society.