For more information
Call 1-800-351-0222

EXPORT OF EQUIPMENT TO NIGERIA.
  Term Paper ID:14445 		Get This Paper Free! or
Essay Subject:
Marketing plan for agricultural & construction machinery by Ben-Cov Distributors. Products, demographic & socioeconomic data, prices & terms, resources, distribution & promotion.... More...
6 Pages / 1350 Words
2 sources, 3 Citations, MLA Format
$24.00

More Papers on This Topic


Paper Abstract:
Marketing plan for agricultural & construction machinery by Ben-Cov Distributors. Products, demographic & socioeconomic data, prices & terms, resources, distribution & promotion.

Paper Introduction:
INTRODUCTION It is the purpose of this research to develop a marketing plan for the export of agricultural and construction equipment to Nigeria. The marketing plan is presented in six separate discussions, as follows: (1) product; (2) market; (3) export price and terms; (4) resource requirements; (5) channels of distribution; and (6) promotion. The company to which this marketing plan is applicable is Ben-Cov Distributors. The company exports heavy equipment manufactured by others from the United States to foreign markets. Nigeria represents a new market for the company. THE PRODUCT Ben-Cov is an international distributor for Caterpillar Tractor products in the agricultural and construction equipment product group. The compan

Text of the Paper:
The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper.


It is essential, however, for thecountry to construct housing and infrastructure to accommodate the growingpopulation, and it is essential for the country to expand its agriculturalproduction, as a means of reducing its international trade deficit. THE MARKET Nigeria's demographic and socioeconomic characteristics are presentedin this section. Volume 2. EXPORT PRICE AND TERMS The type of products exported by Ben-Cov are not restricted byAmerican export law. Each of these factors isa plus for the marketing of agricultural and construction equipment in thecountry. In terms of population,Nigeria is also one of the world's fastest growing countries. Thisfactor might pose problems for the end user of sophisticated equipment. $1. It will conduct theseactivities both with the government agricultural organizations and with thecountry's farmers. For all educational levels, Nigerian enrollment rates are well belowthe averages for countries in its developmental classification. New York: Oxford University Books, 1985. Nigerian purchaser's do require financial assistance in the contextof payment terms. Nigeria'spopulation growth is not expected to stabilize until 2 15. The primary source of such financialassistance for Ben-Cov purchasers is the manufacturer--Caterpillar Tractor. Thus, the maximum financial resourcesrequirements for the operation are projected to be U.S. 141). Themarketing plan is presented in six separate discussions, as follows: (1)product; (2) market; (3) export price and terms; (4) resource requirements;(5) channels of distribution; and (6) promotion. The country's crude death rate was22.1 persons per 1, persons. CHANNEL OF DISTRIBUTION There are, of course, many significant problems which must beovercome by distributing companies such as Ben-Cov, when they enter themarkets in developing countries. $1 by the fifth year of operations in the country. Thecompany's Nigerian investment is expected to be recovered by the end of thesixth year of operations in the country. Urbanization has proceeded in Nigeria at a fast pace. The countrycan not supply its own demand for agricultural and construction equipment.There are, therefore, no major barriers to Ben-Cov's operations in thecontext of Nigerian import restrictions. Thistype of situation prevails in Nigeria. The country's crude birth rateper 1, persons was 49 persons. THE PRODUCT Ben-Cov is an international distributor for Caterpillar Tractorproducts in the agricultural and construction equipment product group. Little such assistance is available through the AmericanExport-Import Bank. Sales are projected atapproximately U.S. INTRODUCTION It is the purpose of this research to develop a marketing plan forthe export of agricultural and construction equipment to Nigeria. Such is the case withNigeria. Export and import laws and duties are not a major consideration inthe pricing of Ben-Cov's products in Nigeria. In this latter context,Caterpillar Tractor has production facilities located in Southern Europe.Thus, Ben-Cov is not required to ship all products to Nigeria from theUnited States. This energy consumption level was near the bottom for thecountries in Nigeria's developmental classification. With 356,7 square miles within its borders, Nigeria is, ingeographical terms, approximately 1.4 times as large as is the State ofTexas. RESOURCE REQUIREMENTS It is estimated that Ben-Cov will not breakeven on the Nigerianoperations until the third year of such operations. $1. Ben-Cov will depend upon personalselling activities to promote its products. Only5.4 percent of Nigeria's gross domestic product is contributed by thecountry's manufacturing sector (The World Bank, 1985, p. In 198 , thelatest year for which appropriate data were available, 58 percent of thecountry's population lived in cities of 5 , population or larger, and17 percent lived in the country's largest city--Lagos. 168). Caterpillar will extend generous payment terms; however, the companyrequires that Ben-Cov be a guarantor of such financing arrangements. The country has beenall but unable to create a sufficient number of jobs to provide for all ofthe new entries into the workforce. Demographic and socioeconomic data are often notavailable on a timely basis in developing countries. The company to which this marketing plan is applicable is Ben-CovDistributors. All of theseproducts will be marketed in Nigeria by Ben-Cov. Further, the fiscal problems of the Nigeriangovernment in the wake of declining crude oil prices preclude muchassistance from that sector. In this context, there are no export barriers. These problems are particularlysignificant when they involve low-volume, high-priced products whichrequire effective after-sale service, such as agricultural and constructionequipment. Works Cited"Nigeria." Encyclopedia of Developing Countries. The total fertility rate for Nigeria is7. Nigeria represents a new marketfor the company. Although, later data are not available, the fall in world crude oilprices is sure to have caused the country's per capita income level toeither decline or to grow at a slower rate than the experienced in the 197 -198 time period. million.By the end of the fourth year, the Nigerian operations are expected toprovide a positive cash flow. Through the middle of the third year, Ben-Cov's Nigerian operationsare expected to have a negative cash flow approximating U.S. Distributors located in foreign countries are usually reluctantto stock low volume, high-priced imports, because of the financialcommitments required and because of the financial risks involved. , which is far above average for countries in its developmentalclassification. New York: Macmillan Books, 1986.The World Bank, World Development Report. Thecompany distributes both self-propelled equipment and motors. The death rate has been declining since196 at the rate of 1.5 percent per year. $1.5 million in the first year, and they are expected togrow to U.S. million. Export pricing for Nigeriaare based upon (1) cost to Ben-Cov form the product manufacturer, (2)prices of competing products from Western Europe and Japan, (3)transportation costs, and (4) financing risks. Energy consumption in Nigeria in 1982, the latest year for whichappropriate data were available, was the equivalent of 95 kilograms of coalper capita. As noted earlier in this discussion, 5 percent of the countriespopulation is in the workforce age--15 through 64 years. Between 198 and2 , the country's workforce is projected to grow at the rate of 3.3percent per annum, a factor which will significantly stress the economy.The country will require extensive infrastructure development, andsignificant expansion in its agricultural output. In 198 , the per capita income in Nigeria was the equivalent of U.S.$75 . In 1979, the last year for which the required data are available, 5 percent of the country's population was in the 15-64 working age range.This proportion is declining at the rate of approximately one-percent perdecade. The rapid and all but unchecked population growth in Nigeria hasplaced significant stress on the Nigerian economy. PROMOTION The Nigerian government operates an extensive agricultural supportoperation for the country's farmers. Therefore, Ben-Cov will establishits own distribution facilities in Lagos. Nigeria's population in 1984 was estimated at 88.2 million, whichmade it one of the 1 largest countries in the world in the context oftotal population ("Nigeria," 1986, p.1339). The company exports heavy equipment manufactured by othersfrom the United States to foreign markets. Thisrequirements holds risks for Ben-Cov; therefore, the export price of Ben-Cov's products in Nigeria are increased to provide for such risk. In all instances, the latest available data are presented. In 1984, the population density in Nigeria was 265 persons per squaremile (The World Bank, 1985, p.

If this paper is not what you are looking for, you can search again:

Search for:

or

We can write a Custom Essay just for you.


Browse Essays by Subject