Channels of distribution

Facultad de Ciencias Económicas y Administrativas
“Escuela de Negocios”

CHANNELS OF DISTRIBUTION
Final Project

Adrian Galvan 689830
Nora Melissa Benavides 677442

Monterrey N. L. 3/August/10

1. Characteristics of the Product.
1. Technical Characteristics.

NUTEC is a Mexican company, founded in December 1993, the result of culmination of more than 25 years of experience ofthe founding partners in the field of animal nutrition.
It was designed to develop specialized foods in both horses and pigs as in the past couple of years have also initiated projects for the production of pet food, calves and chickens, keeping with its philosophy of leading-edge products to a demanding market.

Mission
Give the best solution to customer needs in the agricultural industry byoffering products and services of outstanding quality and excellent after-sales care, looking for the ultimate benefit of both the client as retribution for the company.

Vision
Advanced Nutrition Make your employees with a leader in the agricultural market fully satisfying customer needs and contribute to the growth of the agricultural industry of the country.

Plant
Location: TlaquepaqueNo. 4871
Col. Los Altos C.P. 64,370
Monterrey Nuevo Leon Mexico
TEL. 8371 22 53 81 14 84 71

2. Selling Price.
Pesos: $ 137.00 per 20 kg bag.

Dollars: $ 12.53 per 20 kg bag.

Euros: $ 10.42 per 20 kg bag.

3. Production capacity (Units per month).
• 20 tons.

4. Packaging and labeling ready to export.
• 24 bags of 20 kilos stacked one above another in a woodplatform reinforced plastic.
• Then covered in a wooden box perfectly sealed and reinforced.
• Each container has 20 sacks.

5. Specific Permits and requirements for the product.

-General Tax Law Export
-Customs Law
-Foreign Trade Law
-Agriculture Promotion Act
-Livestock Associations Act
-Agricultural Education Act
-Federal Animal Health Law
-Federal Law on Plant HealthExport Regulation:

-Export permit
-Export permit
-Pro-forma
-Commercial Invoice
-Ocean bill of lading
-Inland bill of lading
-Certificate of Origin
-Product Certificate of Analysis
-Quality Certificate
-Weight Certificate
-Phytosanitary Certificate
-Health certificate
-Insurance Policy
-Packing list and weight
-Labeled
-Method of payment
-Invoice of the exporter
-Letter ofInstruction
-Packing List
-Import license
-Certificate of Origin

The documentation required:

-Commercial Invoice
-Packing List

2. Characteristics of the Market.
1. Specific demand Analysis (Imports Value & Volume)

2. From what countries do they import?

Global Share
Argentina: 16%
Perú: 15%
España: 17%
USA: 20%
Others: 32%
England Cities to import:
The following is analphabetical list of major cities of England.
• Cambridge • London • Oxford • Newcastle-upon-Tyne • Manchester

Geography of England:
England comprises most of the southern half of the island of Great Britain, bordered to the north of Scotland and west Wales. According to 2001 census the population of England was 49,138,831.

3. Average import price.

Competitive price: 48.29 Euros.(Competent approximate value)

Galope Value: 41.05 Euros.

Affordable price: 7.24 Euros Gain

Table: Export Prices to Galope.
|  |Pesos |Dollars |Euros |
|Product cost |137 |12.53 |10.42 |
|Financing |0 |0 |0 ||Transportation Cost |382.62 |35.2 |29.09 |
|Insurance |2.09 |0.192 |0.16 |
|Secure payment |10.17 |0.936 |0.77 |
|Customs |0.35 |0.32 |0.03 |
|Wharfage |5.22...