**Sample Export Plan**

# Company

## Goals 

1.  Increase company sales by five percent.

    Locate a distributor for our product in one target market every
    year.

    Participate in the global marketplace, taking advantage of the 96
    percent of world consumers that live outside of the United States.

    Show a profit in our export initiative within three to five years.

## Financial Resources  {#financial-resources .unnumbered}

5.  Annual capital budget of \$35,000.

    Half-time staff position.

    Three- to five-year minimum commitment.

    Potential of Branded program funds through state, regional trade
    group.

## Non-financial Resources  {#non-financial-resources .unnumbered}

9.  Product inquiries from Canada, Mexico, Taiwan.

    Staff expertise:

    One Spanish speaking staff member.

    Several staff members with travel experience in Canada, Mexico, and
    Europe.

    One staff member with family currently living in New Zealand.

    One staff member trained in export readiness class and willing to
    take additional classes.

    Additional human resources:

    Company will consider hiring a consultant.

    Company will consider hiring a new employee to support exporting.

    One distributor that has sold our Export Cookies to a grocery store
    in Canada.

    Experience with requesting and checking references of potential
    buyers.

## Current Trends and Practices  {#current-trends-and-practices .unnumbered}

20. Our company growth has been three percent per year for the past five
    years.

    Our product is currently sold nationally, through distributors, to
    retail outlets, hotels, and airlines.

    Our current promotional strategies include shelf talkers, coupons,
    and in-store promotions.

## Production Capacity  {#production-capacity .unnumbered}

23. Sufficient capacity to increase sales by 25 percent.

# Target Market (Source: TAPO - Mexico Addition of World Trade Atlas & BICO Report) {#target-market-source-tapo---mexico-addition-of-world-trade-atlas-bico-report .unnumbered}

## Potential Markets for Non-Frozen Cookies {#potential-markets-for-non-frozen-cookies .unnumbered}

+------------------+-------+---------+----------+----------+----------+
| **Leading 20     | **1   | **1997  | **       |          |          |
| Country          | 998** | to 1998 | Millions |          |          |
| Markets**        |       | %       | of       |          |          |
|                  | **R   | C       | U.S.**   |          |          |
|                  | ank** | hange** | **D      |          |          |
|                  |       |         | ollars** |          |          |
+------------------+-------+---------+----------+----------+----------+
|                  |       |         | **1996** | **1997** | **1998** |
+------------------+-------+---------+----------+----------+----------+
| Canada\*         | 1     | -6.33   | 72.168   | 76.768   | 71.908   |
+------------------+-------+---------+----------+----------+----------+
| Mexico\*         | 2     | 69.47   | 1.950    | 2.977    | 5.046    |
+------------------+-------+---------+----------+----------+----------+
| Japan            | 3     | 7.27    | 4.962    | 2.693    | 2.888    |
+------------------+-------+---------+----------+----------+----------+
| Bermuda\*        | 4     | 105.24  | 0.320    | 0.561    | 1.151    |
+------------------+-------+---------+----------+----------+----------+
| Saudi Arabia\*   | 5     | 667.31  | 1.052    | 0.144    | 1.102    |
+------------------+-------+---------+----------+----------+----------+
| Columbia\*       | 6     | 68.12   | 0.659    | 0.584    | 0.982    |
+------------------+-------+---------+----------+----------+----------+
| United Kingdom   | 7     | -93.99  | 0.511    | 16.226   | 0.975    |
+------------------+-------+---------+----------+----------+----------+
| Hong Kong        | 8     | -56.07  | 2.489    | 1.752    | 0.770    |
+------------------+-------+---------+----------+----------+----------+
| Cayman Islands\* | 9     | 164.53  | 0.255    | 0.269    | 0.710    |
+------------------+-------+---------+----------+----------+----------+
| Singapore        | 10    | -33.65  | 0.591    | 1.012    | 0.671    |
+------------------+-------+---------+----------+----------+----------+
| Dominican        | 11    | -19.94  | 1.219    | 0.786    | 0.629    |
| Republic         |       |         |          |          |          |
+------------------+-------+---------+----------+----------+----------+
| Jamaica          | 12    | -56.13  | 0.810    | 1.208    | 0.530    |
+------------------+-------+---------+----------+----------+----------+
| Philippines      | 13    | -76.53  | 0.851    | 2.105    | 0.494    |
+------------------+-------+---------+----------+----------+----------+
| France\*         | 14    | 152.55  | 0.048    | 0.193    | 0.487    |
+------------------+-------+---------+----------+----------+----------+
| Bahamas          | 15    | 12.66   | 0.500    | 0.401    | 0.452    |
+------------------+-------+---------+----------+----------+----------+
| Switzerland      | 16    | -16.59  | 0.441    | 0.534    | 0.446    |
+------------------+-------+---------+----------+----------+----------+
| New Zealand\*    | 17    | 161.38  | 0.217    | 0.132    | 0.345    |
+------------------+-------+---------+----------+----------+----------+
| Venezuela        | 18    | -20.42  | 0.479    | 0.424    | 0.337    |
+------------------+-------+---------+----------+----------+----------+
| Israel           | 19    | -35.42  | 0.296    | 0.468    | 0.302    |
+------------------+-------+---------+----------+----------+----------+
| Panama\*         | 20    | 192.28  | 0.166    | 0.100    | 0.293    |
+------------------+-------+---------+----------+----------+----------+

\*Most promising markets

## Market Assessments (Source: CIA World Fact Book)

  ---------------- --------------- --------------- ------------ -----------
  **Country**      **Population\   **1997 est.     **1997 est.  **1996/7
                   1998 est.**     GDP**           GDP growth   est. GDP
                                                   rate**       per
                                                                capita**

  Canada\*         30.7 million    658 billion     3.5%         \$21,700

  Mexico\*         98.6 million    694.3 billion   7.3%         \$7,700

  Bermuda          62,009          \$1.8 billion   2.4%         \$29,000

  Saudi Arabia\*   20.8 million    \$206.5 billion 4.0%         \$10,300

  Colombia\*       38.6 million    \$231.1 billion 3.1%         \$6,200

  Cayman Islands   37,716          \$860 million   4.5%         \$23,800

  France\*         58.8 million    \$1.32 trillion 2.3%         \$22,700

  New Zealand      3.6 million     \$63.4 billion  2.5%         \$17,700

  Panama           2.7 million     \$18 billion    3.6%         \$6,700
  ---------------- --------------- --------------- ------------ -----------

> **\***Top 5 markets

## Best Target Market - Mexico (Source: FAS (Foreign Agricultural Service) Country Market Report)

### Economic Overview 

The Mexican economy rebounded from a financial crisis in 1995. After the
necessary painful adjustment measures and with international assistance,
the country has successfully dealt with a dangerous, short-term
liquidity crunch. From a macroeconomic perspective, 1996 turned out to
be a much better year than either the government or private sector
analysts predicted. The services sector dominated by commerce, grew 2.8
percent, as the domestic economy remained relatively weak. Nevertheless,
there were signs of recovery. Private consumption increased 2.1 percent
in the first half of 1996. Inflation in Mexico declined through most of
1996. During 1996, the annual consumer price inflation fell 51.7 percent
in January, analyzed to 28 percent in November, and ended with 27
percent for the year. Producer price inflation was 59 percent in 1995
and only 26 percent in 1996.

Since early 1995, average real urban wages have declined by about 25
percent, after rising 30 percent between 1987 and 1993. Long-term
employment trends in the manufacturing sector have been negative and
most new jobs have been generated in small service sector operations.
Job creation should continue to strengthen in 1997 although unemployment
and underemployment will remain pressing problems.

Still, certain demographic factors will continue to place Mexico at the
top of the list for U.S. exporters of consumer-ready food products into
the next century. These factors are:

24. Increased purchasing power.

    A growing population expected to reach 100 million by the year 2000.

    Half of the population under 21 years of age.

    Strong identity with things American.

    A strong preference for american-style food.

    With the entry into North American Free Trade Agreement (NAFTA) on
    January 1, 1994, Mexico lowered its tariffs on U.S. and Canadian
    origin goods. Mexican tariffs on U.S. goods are between five and
    twenty percent ad valorem, with the highest Mexican tariffs on
    agricultural products and finished motor vehicles. Under the NAFTA,
    tariffs on U.S. goods will be phased out over a maximum period of
    ten years, varying by type of good. Sixty percent of U.S. goods now
    enter Mexico duty-free.

    Mexico\'s population was estimated at 98.6 in 1998 million with 80
    percent under the age of 40 years, and 50 percent under the age
    of 25. Nearly 73 percent of the population lives in urban areas:
    Mexico City (18 million); Guadalajara (3.2 million) ; Monterrey (2.9
    million); Puebla (1.5 million); Leon (1.2 million); and in some 70
    other cities with a population ranging between 100,000 and 900,000.
    Only about 20 percent of the population comprises the market for
    most imported high value food products.

    The Mexican consumers include:

    The upper class (two percent of the population), characterized by a
    high level of education, luxury housing, multiple vehicles, and
    international travel.

    The upper middle class (20 percent of the population), who are
    university-educated, serve as professionals or company managers, own
    homes, autos, and a wide range of household appliances, and
    occasionally travel.

    The lower middle class (about 49 percent of the population),
    comprised of those living in smaller homes and spending most of
    their income on basic necessities.

    The rural, the underemployed, or the unemployed.

    Homemakers and live-in maids tend to do the vast majority of food
    purchasing. Weekend shopping, however, tends to be a family affair
    at larger stores, such as WalMart and Price Clubs, where males are
    involved in some purchase decisions, particularly impulsive
    purchases. As more Mexican women are working outside of the home,
    there is also an increasing market for easy to prepare foods.

    Point-of-purchase and sampling are two successful promotional
    activities in Mexico.

    As a result of Mexico\'s current economic recovery, there are now
    unique opportunities for U.S. companies to form joint ventures with
    Mexican companies. Most of the old, restrictive investment rules
    have been repealed after the NAFTA, and many good Mexican firms are
    in need of financial support. With interest rates of 45 to 60
    percent common, foreign investors are welcome. Forming a joint
    venture with the right Mexican partner can be a quick and effective
    way to gain market access.

    Doing business in Mexico has a lot in common with other countries.
    Caution must be used when selecting an agent or distributor. The use
    of a competent Mexican attorney is strongly recommended when forming
    a relationship with a Mexican partner. Fully utilizing the resources
    available at your bank will also help ensure that your company gets
    paid after the transaction.

    Today\'s Mexico is full of challenges for U.S. business along with
    vast opportunity; however, the Government of Mexico remains
    committed to the path of economic integration with the other NAFTA
    partners and the rest of the World.

### The U.S. Market Position  {#the-u.s.-market-position .unnumbered}

The U.S. is the major supplier of imported food and agricultural
products to Mexico, holding nearly a 90 percent share of the Mexican
import market. Mexico recognizes most U.S. brand names and associates
these products with quality and value.

Prior to the economic crisis of 1995, U.S. products occupied nearly
one-quarter of Mexican supermarket shelf space. At the beginning of the
crisis, imported U.S. food products nearly disappeared from the shelves.
They were either replaced with domestic products, or more often, some
shelf space remained empty. As inflation increased, allowing the higher
priced U.S. products to become more competitive with domestic products,
and the \"sticker shock\" felt by most Mexican consumers subsided, more
U.S. products returned to the supermarket shelves.

Even with the downturn in the Mexican economy, the U.S. market share of
Mexican imports of consumer ready products remained at about ninety
percent, even though the total market size for this sector declined by
over forty percent.

The greatest constraint facing U.S. exporters of consumer-ready food
continues to be the lower domestic spending power. However, as the
economy slowly recovers, middle and upper middle class consumers will
increase purchases of U.S. products, which are viewed as higher quality
products and are increasingly preferred by consumers in those classes,
especially younger consumers.

U.S. exporters who \"stayed the course,\" kept a presence in the Mexican
market and maintained close ties with distributors, importers,
retailers, and consumers who are in the best position to take advantage
of the economic recovery. However, competition is keen, with consumers
being more conscientious and demanding higher quality and reasonable
prices. Aggressive and focused promotion is key in this market. High-end
food service trade, as well as certain \"niche\" markets, will be the
most favorable for consumer-ready products during the coming year.

### Domestic and Third Country Competition  {#domestic-and-third-country-competition .unnumbered}

U.S. competition in the Mexican market for consumer-ready food is mainly
from domestic suppliers rather than third country manufacturers. Direct
promotional activities financed by third country competitors is limited
because state trading groups or high production subsidies by the
competitor countries allow for price competition in the Mexican market.
Mexico has traditionally been a price driven market and even more so
with the recent economic downturn. Therefore, low-price products from
Mexican and third country manufacturers continue to pose a threat to the
U.S. market share.

### Domestic Competition  {#domestic-competition .unnumbered}

Driven by the competition from imported food products, Mexican
technology in food processing has improved, and many processed food
products are now available in retail outlets. In-store promotions and
demonstrations by food manufacturers are common in Mexico and popular
among consumers who snack frequently on the items offered for tasting at
the store while they shop.

Promotional events at supermarkets sponsored by manufacturers and/or
retailers offering prizes, sales, loss leaders, and appearances of
entertainment figures (usually clowns for children) are common tools
employed to attract customers. Their use is very important and growing,
and should be considered by U.S. firms who wish to introduce their
products and increase consumers\' awareness.

High transportation and finance costs, as well as an increasing need by
food manufacturers to import bulk and intermediate commodities for the
manufacture of their products is hampering Mexican production of some
consumer-ready food products.

### Third Country Competition  {#third-country-competition .unnumbered}

The NAFTA is critical to Mexico\'s trade since commerce with the U.S.
and Canada makes up 78 percent of its total trade. The promotional
programs and activities of competing countries in Mexico are limited
compared to the efforts of U.S. organizations, led by the FAS, which
actively works in the Mexican market.

### Mexico's Imports of Cookies {#mexicos-imports-of-cookies .unnumbered}

  -------------------------------------- --------------------------------
  **Country**                            **1998 % Share**

  United States                          32.04

  Brazil                                 29.6

  Canada                                 18.74

  Italy                                  6.01

  Denmark                                4.07

  France                                 2.59

  Spain                                  1.56

                                         
  -------------------------------------- --------------------------------

### Consumer-ready Product Market Trends 

Mexico\'s consumer-ready food market is still an urban phenomenon and
highly concentrated in Mexico City, Guadalajara, and Monterrey.
Expansion has also taken place in other cities, each with metropolitan
populations greater than one million. These include: Queretaro, Puebla,
Morelia, Merida, Hermosillo, Veracruz, and Acapulco (in the summer
season). Supermarket chains are also expanding into fast growing towns
that have grown up near major urban centers.

A demographic factor favorably affecting the future for U.S. exports to
Mexico is the youthfulness of the Mexican population. Nearly 80 percent
of the population is age 40 or less, 50 percent age 20 or less, and 40
percent of the population are age 15 or less. Mexican youth have a more
worldly view than previous more conservative generations and, as a
result, want to consume products available from the global marketplace.
The U.S. is well-positioned, culturally and geographically, to meet the
needs of this changing population. Rural to urban migration has also
increased over the past few decades, with the percentage of urban
population now estimated at 78 percent.

In the food service sector, hotels and restaurants on a whole were hurt
badly by the economic crisis. However, those hurt the worst were hotels
and restaurants, which catered to domestic consumers and business
travelers. Mexicans found themselves unable to afford vacations and
dining out as much as before. Business travel declined due to the
economy.

However, foreign tourism skyrocketed in Mexico, especially in Cancun,
Cozumel, Baja California and Puerto Vallarta, due to the favorable
exchange rate and the bad winter weather experienced in the U.S. and in
Europe.

Restaurants and hotels in those areas cater to American and actually
increased in those areas in 1995 and 1996 and are expected to continue
in rise in 1997.

### Distribution Systems for Consumer-ready Products 

U.S. companies who wish to export processed and semi-processed foods and
selected fruits to Mexico should contact wholesalers and distributors
preferably by personal contact made while visiting Mexico.

Doing business in Mexico has been simplified over the past few years and
with the implementation of the NAFTA, U.S.-Mexican trade will become
even more routine. Despite this fact, exporters, especially new to
market firms, are encouraged to research business practices in Mexico.

A personal visit to Mexico is a must, and a meeting with the U.S.
Agricultural Trade Officer and staff can be of great use. The initial
visit should be a familiarization trip, so both potential buyer and
seller can get to know one another. This is important, as Mexicans
prefer doing business with people they know and trust. First time
visitors should not expect to make sales.

U.S. are encouraged to establish a legal binding relationship with an
importer registered in Mexico, who can then represent and move the U.S.
product through to the Mexican retail process.

Alternatively, a new-to-market company may wish to sell its product to a
broker in one of the several towns along the U.S. side of the border.
Each system has its advantages. Selling to brokers at the border is at
first easier, and potentially less risky (payment is usually made before
the product crosses the border). However, selling directly in Mexico
offers greater profits, gives the seller more control over his product
and brand in Mexico, and establishes the exporter as a real player in
the market.

Five categories of merchants involved in the distribution of imported
food products to the retailer are defined as follows:

33. Wholesaler - all individuals selling large volumes of goods to other
    merchants.

    Semi-jobbers - a wholesaler selling in smaller amounts.

    Retailer - the merchant selling directly to the end-consumer. There
    are several classes of retailers, depending on the size and type of
    operation:

    Supermarkets - these vary in size from the large warehouse clubs
    such as Price Club to mini-supermarkets such as \"OXXO\" and
    Seven-Eleven.

    Abarrotes - the equivalent of a mom-and-pop store.

    Delicatessen.

    Municipal markets - where a majority of the middle and lower
    economic segments of the population shop

    Mobile markets (\"tianguis\") - commonly known as markets on wheels.

    Institutional - hotels, restaurants, hospitals, and so forth.

    Distributor - a dealer with exclusive distribution rights for
    certain food products, whether imported or locally produced.

    In addition to the above-mentioned categories, a very important
    distribution network exists in the central wholesale markets found
    in major cities in Mexico. At present, there are 26 central
    wholesale markets (Centrales de Abasto) in Mexico. These are places
    where wholesalers and a significant portion of the commercial
    transactions take place. The Centrales de Abasto handle products
    which arrive from the countryside, along with other products both
    domestic and imported. In general, the most important wholesalers
    and distributors are located in these central wholesale markets.

    In the process of distribution to the retailer, the
    wholesaler/importer maintains a sales force, handles and services
    direct accounts, and has warehouses strategically placed in the
    country. Another link in the distribution chain is comprised of
    small distributors (peddlers) known in the varilleros. These are
    self-employed individuals who own a truck, which they fill with an
    assortment of merchandise, purchased from wholesalers and
    semi-jobbers, and then travel from village to village selling their
    wares on a cash basis. Consequently, it is not surprising to find
    imported goods in a small town where well-to-do Mexicans have
    weekend and/or vacation homes.

    The supermarket trade has experienced a rapid change. Historically,
    a relatively small number of firms controlled Mexico\'s
    consumer-ready food distribution system. Many new participants
    entered the import business in the early 1990\'s. The supermarket
    industry grew rapidly, adding a large amount of refrigerated and
    freezer space available in Mexico. Since the devaluation, there has
    been little growth in the supermarket area, although most stores
    were able to keep their doors open. Expansion plans of WalMart and
    warehouse stores, which were put on hold in 1995, are beginning to
    get back on track this year.

    The national supermarket chains are owned by three groups: Grupo
    Cifra owns Aurrera, Superama, WalMart and Sam\'s; Commercial
    Mexicana owns the supermarkets under their name as well as Sumesa
    and Price Club; and Gigante-Fleming, as well, owns supermarkets
    under their names as well as Carrefour.

    Another type of store growing in the market share in Mexico is the
    U.S.- style convenience store located in neighborhoods as well as
    gas stations throughout the country. While this type of store has
    always been the mode in Mexico, due to its similarity with
    traditional \"tiendas\" or mom and pop corner stores, they are much
    more modern and offer self-service convenience. The success of these
    stores is attracting U.S. companies interested in joint ventures.
    The largest of the convenience chains in Mexico is OXXO, based in
    Monterrey with over 500 outlets.

    Prices for imported food products are about 15 percent to 20 percent
    higher than in the U.S. This is due in part to higher margins at all
    levels, higher interest rates, tariffs, and higher transport costs.
    Fuel and spare parts are more expensive in Mexico and, since nearly
    all imported food products enter Mexico overland, transport costs
    play a major role in the final price.

    The major Mexican supermarkets chains such as Grupo Cifra, Gigante
    and Comercial Mexicana are still the largest importers of U.S.
    consumer-ready food.

### Transportation  {#transportation .unnumbered}

The leading mode of transportation for processed food from the U.S. is
trucking, while rail and maritime shipping is more widely used for bulk
commodities.

The ability to ship by truck to Mexico gives the U.S. an advantage in
shipping costs over third-country competitors and many domestic
competitors. The main Mexican highways run North-South. Therefore, a
food manufacturer in the northwestern part of Mexico has higher
transportation costs to deliver to Mexico City than a U.S. manufacturer
in the Midwest or the South. Mexico has 95,000 kilometers of paved
roads. A large number of toll roads were built in Mexico during the past
six years. These roads are very good and usually cut travel time in
half. However, they are some of the most expensive toll roads in the
world. Laredo and to a lesser degree McAllen, Texas are the most used
ports of entry for U.S. fruits, vegetables and other consumer-ready
products.

Use of rail for consumer-ready goods is not common between the U.S. and
Mexico. Nevertheless, its use is increasing, particularly in the
piggy-back system used by U.S.suppliers to ship their products to the
U.S.-Mexican border.

In some cases, U.S. rail lines change cars with the Mexican railways
(Ferrocarriles Nacionales,) and the product remains in U.S. cars as it
continues by rail to its destination.

While maritime shipping is used a great deal in trading with Europe, the
Pacific Rim, and the Caribbean zone, it is used to a lesser extent for
transporting merchandise from the U.S. to any of Mexico\'s coasts.

Due to its high cost, air freight is used only in cases of highly
perishable products, like seafood, dairy products, and frozen food
items.

### Domestic Food Processing Sector  {#domestic-food-processing-sector .unnumbered}

There is a large food processing sector in Mexico for the manufacturing
of dairy products, beer, wine, preserved fruits and vegetables, sauces,
jams, food mixes, breakfast cereals, juices, soft drinks,
confectioneries, deli meats, poultry, eggs, cake mixes, breads, and a
variety of other products of common use throughout North America and
Europe.

The Mexican food processing industry is not mature by international
standards. About 8,000 companies are registered with the National
Processing Industry Chamber (CANACINTRA). According to chamber
officials, there are more than 40,000 additional unregistered companies
in the industry. These are mostly small family-owned firms. Total food
processing employment is estimated at over 670,000 people.

The industry is dominated by a few major players, including Grupo
Industrial Bimbo, Grupo Maseca, and Herdez. There is also a myriad of
small and micro enterprises that supply small stores within a short
distance of their processing facilities.

Although tariffs were 10 percent or less in 1996, they will be
eliminated over the next five years. This reduction should give a big
boost to imports as well as make the United States more competitive with
other foreign suppliers and domestic producers.

# Product {#product .unnumbered}

## Product Characteristics  {#product-characteristics .unnumbered}

43. Our company wishes to export a product we have labeled \"Export
    Cookies.\"

    \"Export Cookies\" come in a 12 oz. (340 g) box and a handy 6-cookie
    snack size. Due to \"the increasing openness of the Mexican market,
    expanding affluence, and change in consumer tastes there has been an
    increase in snack food imports. This should prove very beneficial in
    the exporting and consumer acceptance of our product.

    Furthermore, the NAFTA gives us, as U.S. exporters, a competitive
    edge in the Mexican market that other countries lack.

    Due to NAFTA, few tariffs remain when exporting to Mexico; however,
    certain export requirements must be met, including the preparation
    of a Shipper's Exporter Declaration (SED) prior to exporting the
    product.

## Product Packaging (Source: FAS FAIRS Report) {#product-packaging-source-fas-fairs-report .unnumbered}

The following are labeling requirements for products exported to Mexico.
All label information must be in Spanish, but may also be in other
languages. Specific NOM-051 Requirements:

47. Name or type of product and brand on primary surface of the product.

    List of ingredients, in descending order, if equal to or exceeding 5
    percent of product composition including added water, and the
    percent content of combined additives or colors.

    Net content, or drained weight, in metric units. (Note: In Mexico, a
    comma is used in place of a decimal point.)

    Name and address of manufacturer or importer.

    Country of origin.

    Lot number.

    Expiration date.

    Nutritional information is optional, except for products whose
    labels make qualitative or quantitative nutritional claims; such as
    low fat, low calorie, low salt or diet. In such cases, NOM-051
    requires product labeling to include the following information per
    portion basis per the Health Ministry\'s standard, NOM-086:

    Saturated fat and cholesterol in milligrams for claim of low-fat;

    Sodium in milligrams for claim of low-salt.

    Sugar in milligrams for claim of low-sugar.

    Kilocalories for claim of low-calorie.

    Special wording when aspartame and sorbitol are used.

    Special wording for claim of gluten-free.

    Optional label information may also include \"best consumed by\"
    dating and complementary nutritional information such as vitamins
    and minerals expressed as a percent of the Mexican daily recommended
    allowance and instructions for use or preparation.

## Product Handling  {#product-handling .unnumbered}

The following describes the product handling characteristics of Export
Cookies.

62. Pre-packaged.

    Non-perishable.

    No special handling required for shipping.

# Pricing *(*Source: FAS Mexico Office, Freight Forwarder) {#pricing-source-fas-mexico-office-freight-forwarder .unnumbered}

## Market Price {#market-price .unnumbered}

### Average Retail Price of Cookies In Mexico  {#average-retail-price-of-cookies-in-mexico .unnumbered}

HS Description: 19053001 - Cookie, Waffle, Wafer

  ----------------------------------- -----------------------------------
  **Large Box**                       **Individual Serving**

  25-60 pesos (\$2.77 - \$6.66)       3-4 pesos (\$ .33 - \$ .44)
  ----------------------------------- -----------------------------------

## Pricing Strategy

### Costs estimates are based on: 

65. 20-foot truck load

    20 pallets per truck

    54 cartons per pallet

    12 boxes per carton

  ------------------------------------------------------- ---------------
  Trucking to Border:                                     \$ 400

  Transloading at Border:                                 \$ 200

  Trucking From Border to Mexico City:                    \$ 2,800

  Freight Forwarder Fee:                                  \$ 110

  Documentation Fee:                                      \$ 30

  Banking Fee:                                            \$ 50

  Insurance:                                              \*\$ 3,310

  Total Transportation Cost:                              \$ 6, 900
  ------------------------------------------------------- ---------------

\* 20% of CIF Value

Transportation cost per package equals \$0.28.

## Profit

  ------------------------------------------------------------- ---------
  Market Price:                                                 \$5.00

  Minus Transportation Costs:                                   \$0.53

  Minus 15% Distributor Fee:                                    \$0.60

  Total Available to Cover Production, Marketing, Profit :      \$3.87
  ------------------------------------------------------------- ---------

# Market Entry **(Source: FAS AgExporter Magazine)**

## General Strategies 

69. Selling directly to the Mexican market requires a great deal of
    effort and works best for companies that have a limited number of
    potential customers. Most Mexican retailers and food service
    companies are not set up to import directly. For these reasons, our
    company will employ a Mexican distributor. We will look for either a
    Distribution company or a Mexican food processor. This method will
    provide the company with control over our marketing efforts in
    Mexico and improve our ability to build brand identity if we used an
    export broker or trading company.

    Most distributors in Mexico will ask to be our exclusive distributor
    in Mexico. Few can deliver on this promise. To cover the entire,
    country we will search for a distributor for each of the key regions
    of Mexico.

## Promotional Strategies  {#promotional-strategies .unnumbered}

71. Although our market research has indicated that Mexico is a good
    starting point for our export efforts, we will begin by advertising
    our product in the U.S. Department of Agriculture (USDA) Buyer Alert
    program, which is distributed in approximately 129 markets
    worldwide. Inquiries from this advertisement will help our company
    determine if our market assessment is accurate, or if we should also
    be focusing on other markets initially. The company will:

    Answer all inquiries from foreign markets quickly.

    Participate in a USDA tradeshow in Mexico

    Use the Agent/Distributor program offered by our state regional
    trade group, The U.S. Western Agricultural (WUSATA).

    Work with WUSATA to apply for funds for marketing and promotional
    activities through the Branded Program.

Mexican consumers are greatly influenced by promotion and advertising,
but personal contact is also important. Therefore, we will work with a
Mexican distributor to conduct in-store promotions, handouts, and other
forms of direct merchandising.

# **Action Plan**

+-----+---------------+---------------+--------+-------+---------------+
| **P | **Objective** | **Task**      | *      | **    | *             |
| rio |               |               | *Resou | Sched | *Evaluation** |
| rit |               |               | rces** | ule** |               |
| y** |               |               |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 1   | 1.  Educate   | 1.  Attend    | \$100  | 8/99  | 1.  Increase  |
|     |     staff on  |     training  |        |       |     knowledge |
|     |     exporting |     seminar   |        |       |     of        |
|     |               |     on        |        |       |     exporting |
|     |               |     exporting |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 2.  | 2.  Identify  | 2.  List      | Fee    | 8/99  | 3.  Evaluate  |
|   2 |     potential |     company   |        |       |     number    |
|     |               |     on the    |        |       |     and       |
|     |  distributors |     USDA      |        |       |     quality   |
|     |               |     Supplier  |        |       |     of        |
|     |               |     List      |        |       |     inquiries |
|     |               |               |        |       |     received  |
+-----+---------------+---------------+--------+-------+---------------+
| 4.  | 3.  Identify  | 3.  Purchase  | \$15   | 8/99  | 5.  Evaluate  |
|   3 |     potential |     Foreign   |        |       |     number    |
|     |               |     Buyer     |        |       |     and       |
|     |  distributors |     List from |        |       |     quality   |
|     |               |     USDA      |        |       |     of        |
|     |               |               |        |       |     contacts  |
+-----+---------------+---------------+--------+-------+---------------+
| 6   | 4.            | 4.  Send      | \$100  | 8/99  | 7.  Evaluate  |
| .   |               |     brochure  |        |       |     number    |
|     |               |     to        |        |       |     and       |
|     |               |     contacts  |        |       |     quality   |
|     |               |     in Mexico |        |       |     of        |
|     |               |               |        |       |     inquiries |
|     |               | 5.  Follow up |        |       |     received  |
|     |               |     with      |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 8   | 5.            | 6.  promising | \$500  | 3/00  | 9.  Narrow    |
| .   |               |     contacts  |        |       |     the field |
|     |               |     while in  |        |       |     of        |
|     |               |     Mexico    |        |       |     potential |
|     |               |     for       |        |       |               |
|     |               |     tradeshow |        |       |  distributors |
+-----+---------------+---------------+--------+-------+---------------+
| 10  | 7.  Identify  | 6.  Submit    | \$15   | 9/99  | 11. Evaluate  |
| . 4 |     potential |               |        |       |     number    |
|     |               | advertisement |        |       |     and       |
|     |  distributors |     in USDA   |        |       |     quality   |
|     |               |     Buyer     |        |       |     of        |
|     |               |     Alert     |        |       |     inquiries |
|     |               |               |        |       |     received  |
+-----+---------------+---------------+--------+-------+---------------+
| 12  | 8.  Prepare   | 7.  Design    | \$500  | 9/99  | 13. Clear     |
| . 5 |     packaging |     label for |        |       |     label     |
|     |     for       |     Mexican   | \$500  |       |     with      |
|     |     Mexican   |     market    |        |       |     Mexican   |
|     |     market    |               |        |       |               |
|     |               | 8.  Print     |        |       |    Government |
|     |               |     labels    |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 14  | 9.  Identify  | 9.  Purchase  | \$15   | 10/99 | 15. Check     |
| . 6 |     potential |     USDA      |        |       |     percent   |
|     |               |     foreign   | \$150  |       |     responses |
|     |  distributors |     buyer     |        |       |     generated |
|     |               |     list      |        |       |     from      |
|     |               |               |        |       |               |
|     |               | 10. Send      |        |       |               |
|     |               |     letter to |        |       |               |
|     |               |     all       |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 1   | 10.           | 11. potential |        |       | 12. letters   |
| 6.  |               |     buyers on |        |       |               |
|     |               |     list      |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 7   | 13. Attend    | 11. Register  | \      | 10/99 | 17. Evaluate  |
|     |     the ANTAD |     for show  | $3,000 |       |     number of |
|     |     in        |               |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 1   | 14.           | 12. Prepare   | \      | 11/99 | 15. qualified |
| 8.  |  Guadalajara, |     brochures | $1,000 |       |     leads     |
|     |     Mexico    |               |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
|     | 16.           | 13. Send      | \$500  | 2/00  | 17.           |
|     |               |     booth,    |        |       |               |
|     |               |               |        |       |               |
|     |               |    materials, |        |       |               |
|     |               |     samples   |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
|     | 18.           | 14. Send two  | \      | 3/00  | 19.           |
|     |               |               | $2,000 |       |               |
|     |               |    marketing/ |        |       |               |
|     |               |     sales     |        |       |               |
|     |               |     staff     |        |       |               |
|     |               |     members   |        |       |               |
|     |               |     to show   |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
|     | 20.           | 15. Meet with |        | 3/00  | 21.           |
|     |               |     USDA      |        |       |               |
|     |               |               |        |       |               |
|     |               |  Agricultural |        |       |               |
|     |               |     Trade     |        |       |               |
|     |               |     Office    |        |       |               |
|     |               |     staff     |        |       |               |
|     |               |     while     |        |       |               |
|     |               |     attending |        |       |               |
|     |               |     tradeshow |        |       |               |
+-----+---------------+---------------+--------+-------+---------------+
| 8   | 22. Select a  | 16. Check     | \$500  | 4/00  | 19. Identify  |
|     |               |               |        |       |     the       |
|     |   distributor |    references |        |       |               |
|     |               |     of        |        |       |   distributor |
|     |               |               |        |       |     to        |
|     |               |   prospective |        |       |     represent |
|     |               |               |        |       |     the       |
|     |               |  distributors |        |       |     company   |
+-----+---------------+---------------+--------+-------+---------------+