“Knit sweater exporting to

Hungary”
 MKT 425: International Marketing

Final Term Paper

“Knit sweater exporting to

Hungary”
Submitted To
Afsana Akhtar
Assistant Professor, BRAC Business School
BRAC University

Submitted By
Ikram Hasan Evan -12204023
Pragna Permita Chowdhury- 12204114
Mehedi Hasan Rana- 12204039

Submission Date
25th March, 2017
Saturday
 Date: 25th March, 2017

Mrs. Afsana Akhtar,

Assistant Professor,
BRAC Business School,
BRAC University,
Mohakhali, Dhaka.

Dear Madam,
Here is our final term paper on “Knit sweater exporting to Hungary” asked us to submit.

We did a thorough research on how Knit sweater exporting works. We also conducted secondary
research on Hungary culture, climate and other factors to make sure Hungary is the suitable place
and have enough demand to export our product,

We sincerely hope and believe that you would be kind enough to read our research paper. We
really appreciate that you provide us a chance to do this research. If you need any assistance to
understand then please inform us.

Sincerely,

Ikram Hasan Evan

Pragna Permita Chowdhury

Mehedi Hasan Rana

 Acknowledgement

At first, we like to thank our respectable madam Afsana Akhter be give us chance to work in a
group and make a research which is very effective for our future career. Now we would like to
thank the owner and the manager of exporting companies and K.A.S Knitwear Limited to share
their precious time to us and give us opportunity to get their company’s background information,
history, their working process and their administration. They also give us a brief idea about how
they plan, organize their employees and resources, lead their employees and control everything
inside their organization. At the time of our research they were very co-operative. Without their
co-operation and friendly behavior, we would not able to get information to make our report
Table of Contents
Introduction .................................................................................................................................................. 1
Geographic setting ........................................................................................................................................ 3
Location:.................................................................................................................................................... 3
Climate: ..................................................................................................................................................... 4
Social Institutions of Hungary ....................................................................................................................... 5
Economic analysis ......................................................................................................................................... 7
Cultural and Social Forces ............................................................................................................................. 9
Marketing objectives .................................................................................................................................. 11
Target market.......................................................................................................................................... 11
Global competitors ..................................................................................................................................... 12
Global Marketing Research ......................................................................................................................... 14
Analysis on Knitwear Industry:................................................................................................................ 14
Labor situation: ....................................................................................................................................... 14
Structural Impact: ................................................................................................................................... 15
Government and trade: .......................................................................................................................... 15
Collecting Primary Data: ......................................................................................................................... 16
Research Organizations: ......................................................................................................................... 16
Data Analysis and Technical Assistance Limited ..................................................................................... 16
The Centre for Development Research: ................................................................................................. 17
Policy Research Institute: ........................................................................................................................ 17
Global Market Participation ........................................................................................................................ 17
Hungary is in Regional map: ....................................................................................................................... 19
The neighboring countries of Hungary: ...................................................................................................... 19
Global Market Entry Strategies ................................................................................................................... 20
Global Product Strategies ........................................................................................................................... 22
Pricing for International and Global Markets ............................................................................................. 24
Distribution ................................................................................................................................................. 24
Advantages and disadvantages of sea transport: ................................................................................... 25
Advantages .......................................................................................................................................... 25
Disadvantages ..................................................................................................................................... 25
 Major documents for sea transport:....................................................................................................... 25
Promotion Strategies .................................................................................................................................. 26
Advertising .................................................................................................................................................. 26
Conclusion ................................................................................................................................................... 27
Recommendation........................................................................................................................................ 28
Bibliography ................................................................................................................................................ 29
 Executive Summery

Unique Apparels Ltd. which is a knitwear fabricating organization wish to trade items on Hungary.
We consider the geological area, business culture, work, political element, economy every last
point of interest of Hungary. Not just that we likewise gather information and do factual
investigation so they can comprehend in which stretch out they will be fruitful. We additionally
concentrate on their promotional and advertising methodologies which is not that much enormous
but rather has a presence in the movement of the associations. Toward the finish of 2011 the
administration rolled to the IMF and the EU to acquire a monetary screen to encourage its activities
to renegotiate outside cash obligation and bond promises in 2012 and past, yet Budapest's dismissal
of EU and IMF financial approach suggestions prompted to a breakdown in converses with the
moneylenders in late 2012. Look at the total Economic growth rate (2%) in 2016 that indicate the
development rate of the country. Hungary offers parts of its way of life with a few locales in
Romania, Slovakia, Croatia and Austria, which are all home of Hungarian talking individuals.
Socially the Hungarians are like their prompt neighbors; alternatively, their dialect is an
irregularity in the district. Although Hungarian people’s culture is not 100% similar to their
neighboring countries, it is possible to enlarge our target market to other neighboring countries of
Hungary. We will export this sweater in a lot size to different local Hungarian sweater company
whose have shops in the Hungary. As whole a seller we must have to set up a price for whole
selling. We will set up a reasonable price for our sweater because the local Hungarian locals also
have to make benefits. However, we have some cost to export sweaters in Hungary for example
transportation cost, insurance cost, labor cost etc. We have to make profit, so considering our entire
cost and competitor’s price we set up a price for sweater which is $30 for each sweater. We are
planning to set a reasonable price for Hungary which is comparable to our competitor’s price.
Hopefully our exportation plan will be successful in Hungary.

VII
Introduction
Unique Apparels Limited is a newcomer industry in Bangladesh that fabricates and fares Fabrics
and Garments. This industry is included in coloring and imprinting on various types of texture
focusing on basically trade showcases additionally keeping a little nearness in the neighborhood
business. A nonstop adjusting, modernization and substitution have been occurring in the
association attempting to make it one of the main exporters of its size. Unique Apparels Ltd. is an
entire vertical unit, we are included in the Manufacturing of sew Garments ideal from the yarn to
the last item. Our execution is upheld by a field of experienced staff, whose unlimited endeavors
have done right by us giving us a name to figure with around the world. Throughout the years, we
have kept up item quality and standard, to the whole fulfillment of our customers, continually
going along effectively with the time timetable and conveyance due dates.

We the BRAC University students are particularly intrigued to arrange this report on the grounds
that by means of this report we discovered that how an association can spread out its movement
all through the world and how it can satisfy the request of the client who has a place with other
corner of the world. Those things may appear to be troublesome yet not inconceivable. for better
learning about knitwear industry we took help of secondary data however it would be all the more
better for us on the off chance that we get an opportunity to break down primary data. Because of
the deficiency of time and absence of chances to meet with research associations and furthermore
other knitwear production lines we are not capable gather in detail data about this segment however
we attempt our level best to work with secondary data which is additionally helpful for us.

1
 Unique Apparels Ltd

An Overview Introduction Unique Apparels Ltd. was set up in 2003, Dhaka for taking care of the
demand of good quality textures around the world. The unit began operations in 2006 and its
creation limit satisfied the desires of the administration and demonstrated as a fruitful wander.
The administration of the gathering is vested with a group of experts under direct supervision of
the Director, General Managers, Factory and Production Managers, Departmental Heads for each
area, showcasing, Administrative and a Production group of 675 gifted and semi talented
specialists. Unique Apparels Ltd. is a newcomer industry in Bangladesh that fabricates and fares
Fabrics and Garments. It is an association firm appeared in 2003. This industry is included in
coloring and imprinting on various types of texture focusing on mostly send out business sectors
additionally keeping a little nearness in the nearby business. A constant adjusting, modernization
and substitution have been occurring in the association attempting to make it one of the main
exporters of its size. Unique Apparels Ltd. is an entire vertical unit, we, at Unique Apparels Ltd.
are included in the Manufacturing of weave Garments appropriate from the yarn to the last item.
Our execution is upheld by a field of experienced work force, whose unlimited endeavors have
done right by us giving us a name to figure with around the world. Throughout the years, we have
kept up item quality and standard, to the whole fulfillment of our customers, continually going
along effectively with the time calendar and conveyance due dates.

Country which we wish to trade

Unique Apparels Ltd. Send out products to the European nations like Netherlands, Germany,
Slovakia and now we will concentrate on Hungary. Hungary invites global business openings. In
business, Hungarians consider individual connections critical. Face-to-face discussion is
significant in business matters and a strong relationship depends on rehashed visits and telephone
calls.

In their business dealings, Hungarians have a tendency to be formal, sticking to various leveled
hierarchical structures, but then expressive, with common negotiations occurring through open
exchange. Hungarians are likewise by and large candid and therefore a few foreign people may
see them as abrupt, inconsiderate or even harsh. Be that as it may, they generally give confirm in
support of their words and when they can't achieve an understanding they have a tendency to
clarify why and may propose new talks.

In business and in private life, the correct connections are essential and sound judgment and insight
is much. The Hungarians' propensity towards doubt and doubt can be credited to chronicled
reasons, so unsavory focuses are talked about to relieve future business issues however much as
could reasonably be expected. The initially meeting is constantly portrayed by a saved state of

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mind in any case, once the ice is broken, Hungarians are fairly energetic and their verbal trades
can be extremely exceptional and lively.

A Hungarian business accomplice can without much of a stretch transform into a companion. By
and by, building a trusting relationship for the most part takes quite a while. A decent friendly air
at work assumes a greater part than different components (business comes about, monetary
proclamations). When they feel some portion of a moving venture, Hungarians indicate energy,
creativity, liberality and industry. Vital choices are typically made by the top administration, which
may now and again back off the discussions.

Knowing the attitudes and values of business accomplice can be extremely important for keeping
up compelling associations with foreign accomplices. This will permit to maintain a strategic
distance from oversights that could bring about cultural barriers, which could block
accomplishment.

Geographic setting
Location:
With a land region of 93,028 square km, Hungary is a landlocked nation in Central Europe. It
gauges around 250 km from north to south and 524 km from east to west. It has 2,106 km of limits,
imparted to Austria toward the west, Serbia, Croatia and Slovenia toward the south and southwest,
Romania toward the southeast, Ukraine toward the upper east, and Slovakia toward the north. The
greater part of the nation has a height of less than 200 m. Budapest, city, capital of Hungary. The
city is the political, managerial, mechanical, and business focus of Hungary. Despite the fact that
Hungary has a few respectably high scopes of mountains, those achieving statures of 300 m or
more cover under 2% of the nation. The most elevated point in the nation is Kékes (1,014 m) in
the Mátra Mountains upper east of Budapest. The most minimal spot is 77.6 m above ocean level,
situated in the south of Hungary, close Szeged.

3
Climate:
The atmosphere of the Hungary can be depicted as typical European mainland impacted
atmosphere with warm, dry summers and genuinely cold winters. January is the coldest month
with daytime temperatures ordinarily around zero, however at times winter months can be
exceptionally cold with temperatures far underneath zero and solid, frosty northeasterly winds,
called Bora, particularly in the mountain districts. Heavy snowfall or even snowstorms are
additionally conceivable on some days there; the yearly normal number of days with snow is under
40 in the marsh areas and up to 120 days in the hilly locales of Hungary. In summer daytime
temperatures achieve 20-25°C, yet at times very higher, at least 30°c. In more often than not is dry
climate with sunny spells, albeit some of the time substantial Thunderstorms can happen by the
day's end. July is the hottest month with a normal Temperature of 22°C. Yearly Precipitation is
around 400-600 mm in the marsh territories, yet more in the sloping districts. By and large, the
climate is best May-September, when days are warm and the evenings are cool, despite the fact
that it rains more in Spring than in summer. Harvest time and winter are normally somewhat nippy
and wet, now and again frigid and regularly foggy, particularly in the mountainous regions.

4
Topographical Map of Hungary:

Social Institutions of Hungary

Family: In usual Hungary, the family filled in as the essential social unit. It had various capacities,
giving security and personality to people and strengthening social qualities. In rural ranges, it was
additionally the fundamental financial unit- - all individuals cooperated for the finance of the entire
family. Relatives kept on helping each other in discovering employments or housing, in picking
up admission to schools, and in accommodating each other when help is really needed. A large
number of women worked outside the home, and youngsters invested quite a bit of their energy in
school or in youth association exercises. Working women spent a normal of over four hours every
day on family errands, including tyke mind, while men arrived at the midpoint of ninety-seven
minutes in such exercises. In rustic territories, it was likewise the fundamental monetary unit- - all
individuals cooperated for the material prosperity of the entire family. Most individuals from the
more distant family met up just for critical functions, for example, weddings or funerals, and other
extraordinary events. This reality modified women's status in the family and the group. Relatives
hung out. Nonetheless, the time spent by ladies in outside work was not correspondingly shorter
than that of men, averaging just 1.5 hours not as much as men. All things considered, time spending
contemplates showed that ladies were still in charge of the majority of the youngster raising and
housework notwithstanding their work outside the home.

Education: According to UNESCO 2015 Hungary’s literacy rate is 99% which is exceptionally
good. Literacy rate is a result pointer to assess instructive achievement. This information can
foresee the nature of future work compel and can be utilized as a part of guaranteeing strategies

5
for fundamental abilities for men and ladies. It can be additionally utilized as an intermediary
instrument to see the adequacy of instruction framework; a high proficiency rate proposes the limit
of a training framework to give a substantial populace chances to secure education aptitudes. The
aggregated accomplishment of instruction is essential for further intelligent development and
social and monetary improvement, in spite of the fact that it doesn't really guarantee the nature of
training. Proficient ladies infer that they can look for and utilize data for the advancement of the
wellbeing, sustenance and training of their family unit individuals. Educated ladies are likewise
enabled to assume a significant part.

Political and legal system: Since 1990, the Republic of Hungary has been founded on a political
arrangement of Parliamentary majority rules system. Parliament is the highest assortment of
mainstream portrayal. Individuals from Parliament are chosen straightforwardly by the general
population at regular intervals. Upon the suggestion of the President of the Republic, the
Parliament chooses the Prime Minister, who then structures the bureau. Bureau individuals are
named by the President upon the proposal of the Prime Minister. The President of the Republic is
chosen by Parliament for a time of 5 years.

Hungary is the main nation in Central and Eastern Europe, where all administrations could satisfy
their command, and no break races have occurred the administration change in 1989. This
dependability is an element of the Hungarian political framework from that point forward, and
makes the nation an anticipated and solid accomplice for speculators.

Religion and aesthetics: Majority of Hungary Religion in type is Christianity like other countries
of Europe. As we are already exporting knit sweater in other countries in Europe like Austria,
Romania, Russia etc. so it will not be so difficult in Hungary.

Language: The official language of Hungary is Hungarian and it is one of the 24 official
languages of the European Union. The second most popular language in Hungary is English.

As we can see here there are a big gap between Bangladeshi and Hungarians social institution
which seems difficult for us to export product from Bangladesh to Hungary. But in reality, it will
not be a big problem. We are already used to export products in other European countries. We also
export knit sweater in Austria and Romania which are neighbor country of Hungary. So, we believe
we have enough experience to remove cultural barrier and do proper business in Hungary.

6
Economic analysis
Population: The total population in Hungary was estimated at 9.8 million people in 2016.

Ethnic groups: Hungarian 85.6%, Roma 3.2%, German 1.9%, other 2.6%, unspecified 14.1%

There are five structure based on age:

0-14 years: 14.76% (male 750,516/female 706,780)

15-24 years: 11.19% (male 570,097/female 534,856)
25-54 years: 41.74% (male 2,071,865/female 2,049,939)
55-64 years: 13.66% (male 620,362/female 728,387)
65 years and over: 18.65% (male 693,609/female 1,148,373)
Population growth rate: Till 2016 the population growth rate of Hungary was -0.24%.

Birth rate: Again In 2016 the birth rate was 9.1 births/1,000 populations.

Economic Statistics: Hungary has made the move from a halfway wanted to a market economy;
with every capita pay almost 66% that of the EU normal. In late 2008, Hungary's pending
incapacity to administration its transient obligation - brought on by the worldwide money related
emergency - herd Budapest to get an EU and World Bank-orchestrated monetary help bundle
worth over $25 billion. The worldwide monetary downturn, declining fares, and low household
utilization and venture, hosed by government gravity measures, brought about a serious financial
constriction in 2009.

In 2010, the new government actualized various changes including cutting business and individual
pay charges, however forced "emergency charges" on money related establishments, vitality and
telecom organizations, and retailers. The EU bailout program slipped by toward the finish of 2010
and was supplanted by Post Program Monitoring and Article IV Consultations on general financial
and monetary procedures. Toward the finish of 2011 the administration rolled to the IMF and the
EU to acquire a monetary screen to encourage its activities to renegotiate outside cash obligation
and bond promises in 2012 and past, yet Budapest's dismissal of EU and IMF financial approach
suggestions prompted to a breakdown in converses with the moneylenders in late 2012. Worldwide
interest for high return has since helped Hungary to acquire subsidizes on global markets.

Hungary's advance lessening its shortfall to fewer than 3% of GDP drove the European
Commission in 2013 to allow Hungary surprisingly since joining the EU in 2004 to leave the
Excessive Deficit Procedure. The administration stays focused on holding the spending shortfall
under wraps and bringing down open obligation by utilizing sectorial charges, while depending on
state dominant measures to lower utility costs and lift development and business.

Total GDP of Hungary is (Buying Power): $267.6 billion in 2016. GDP real growth rate is 2%.
GDP per capita is $27200.

7
Distribution of Wealth: Based of past data it is seen that the total population has been divided
into three parts (agriculture, industry, services) which helps to grab very strong GDP OF Hungary.

Agriculture: 3.5%

Industry: 31.8%

Services: 64.7%

In agriculture sectors the main products are wheat, corn, sunflower seed, potatoes, sugar beets;
pigs, cattle, poultry, dairy products which is produced for themselves as well as for the purpose of
exporting.

Hungary Social classes:

Elite: 2 percent of the population

Upper middle class: 10.5 percent

Upwardly mobile young people: 6 percent

Rural members of the professions: 7 percent

Traditional lower middle class: 17 percent

Lower class: 18 percent

Manual workers: 16.5 percent

Declassed groups: 23 percent

Principal industries: As we know that Hungary is one of the most important countries. It is a
developed country and gradually getting more development day by day. Look at the total
Economic growth rate (2%) in 2016 that indicate the development rate of the country. It is also
called an industrialized country because 31.8% of total income comes from industry sector.

Major Industry sectors:

Mining metallurgy construction processed textiles chemicals motor

materials foods (especially vehicles
pharmaceuticals)

Currency:

The Hungarian Forint is the currency of Hungary and that definitely is convertible.

HUF Exchange Rates to Bangladesh TAKA and United State dollar:

8
 Hungary Bangladesh United States

1HUF 0.273549BDT 0.00341698USD

100HUF 27.3610BDT 0.341698USD

Cultural and Social Forces

After analysis, social institution of Hungary, there is no doubt that Hungary’s religion, family
organization, education is totally different from Bangladesh. Majority of Hungary Religion in type
is Christianity where Majority of Bangladeshi Religion in type is Islam. Most of the Hungary
woman work outside, Bangladesh is doing very well in this sector but not near like Hungary.
According to UNESCO 2015 Hungary’s literacy rate is 99% which is extra ordinary where
Bangladeshi literacy rate is 61.5%.

So we can see here we cannot use same marketing strategy in Hungary what we are doing in
Bangladesh. In fact, as in term of climate and economy knit sweater is more profitable in Hungary
than Bangladesh. There is a good news that we are already exporting knit sweater all over the
Europe like Germany, United Kingdom, France, Spain, Russia, Switzerland, Poland, Netherlands
and even Hungary’s neighbor’s countries like Austria, Romania and many other countries. We
have already adapted our communication skills to get market share in Europe market which is a
great competency.

Hofstede scores of Hungary

9
We will discuss the most important three index which are Power Distance, Individualism and
Uncertainty Avoidance.

Power Distance: Power Distance importance is degree to which the less powerful members of
institutions and organizations within a country expect and accept that power is distributed
unequally. Hungary scores low on this measurement (score of 46) which implies that the
accompanying portrays the Hungarian style: Being free, chain of command for accommodation
just, equivalent rights, bosses available, honing pioneer, administration encourages and engages.
Power is decentralized and administrators depend on the experience of their colleagues.
Representatives hope to be counseled. Control is despised and mentality towards directors are
casual and on first name premise. Correspondence is immediate and participative. So, Hungary
more prompt to innovation.

Individualism: The principal issue tended to by this measurement is the level of association a
general public keeps up among its individuals. Hungary, with a score of 80 is an Individualist
society. This implies there is a high inclination for a freely weave social system in which people
are required to deal with themselves and their close families as it were. In Individualist social
orders offense causes blame and lost self-regard, the business/representative relationship is an
agreement in light of common preferred standpoint, procuring and advancement choices should be
founded on legitimacy just, administration is the administration of people. At the end of the day it
demonstrates that Hungary more provoke to development.

Uncertainty Avoidance: The degree to which the individuals from a culture feel undermined by
vague or obscure circumstances and have made convictions and foundations that attempt to evade
these is thought about in the score Uncertainty Avoidance. Hungary scores 82 on this measurement
and in this way, has an inclination for staying away from vulnerability. Nations displaying high
Uncertainty Avoidance keep up inflexible codes of conviction and conduct and are narrow minded
of strange conduct and thoughts. In these societies, there is an enthusiastic requirement for
guidelines (regardless of the possibility that the tenets never appear to work) time is cash,
individuals have an inward inclination to be occupied and buckle down, accuracy and promptness
are the standard, development might be opposed, security is an imperative component in individual
inspiration. In any case, here we can see instability shirking score is too high which is bad sign on
advancement.

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Marketing objectives
Target market
As we are not going to open a shop in Hungary and going just exporting so our target market is
Business, not end consumer and government. That means we are going for B2B market. In
Germany and Italy our customers are given bellow:

- PIAZZA ITALIA S.P.A. (ITALY)

- BERNARDI GROUP S.P.A. (ITALY)

- TEDDY S.P.A. (ITALY)

-ALDI (GERMANY)

-ADLER GERMANY)

So like that WEST HUNGARY TEXTIL KFT., TRAVIAL'SZ LTD., F&D SZORME KFT. And
FARKASTENT AND EVENT KFT. could be our potential customers.

As we will be providing less expensive and quality product to our customer so we believe our
customer will love to buy our product. Government corruption is a big concern in every company
doing foreign business. As we have past experience to handle that properly in Germany, Italy and
other countries and know that procedure to solve those problems by lobbing and fast money, it
will not be a big problem.

Sales and profit pro-forma of Unique Apparels Ltd. for five years:

As we are exporting knit sweater so many European countries like Germany, Italy, Switzerland,
Austria and other neighboring countries of Hungary so estimating and creating pro-forma of sales
and profit will not be so hard. In 2016 our net sales were Tk. 182671977 and 2015 our net sales
were Tk. 173748264. Which indicates that our growth rate per year was 4.89% which is
remarkable. On the other hand, our total cost was Tk. 169747334 in 2016 and Tk. 165171194 In
2015. That means cost increased by 2.69%. So, before tax profit was Tk. 12924643 in 2016 and
8577070 in 2015

Based on our German net sales and profit we can forecast Hungary’s sales and profit too. But
Germany’s population is bigger than Hungary and this is our first time exporting knit sweater in
Hungary. Keeping all this in mind sales and profit pro-forma of Unique Apparels Ltd. for five
years is given bellow:

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 Year 1 2 3 4 5
BDT BDT BDT BDT BDT
Net Sales 765,200.00 3,738,080.30 18,260,904.78 89,206,388.43 435,782,335.76
BDT BDT BDT BDT BDT
Total Cost 42,600.00 114,843.37 309,600.95 834,638.90 2,250,064.46
Before Tax BDT BDT BDT BDT BDT
Profit 722,600.00 3,623,236.93 17,951,303.83 88,371,749.54 433,532,271.29

So, we can see like other countries in Europe so can bring a significant profit from Hungary in
future.

Global competitors
As of 20 September 2015, total member of Bangladesh Knitwear Manufacturers & Exporters
Association (BKMEA) are 2030. So, we have lot of competitor in Bangladesh. Though no one is
exporting in Hungary as of now. That means exporting in Hungary there is no direct competitor
yet but there is a lot potential competitor. But Hungarian textile & clothing manufacturer could of
very difficult competitor. Hungarian textile & clothing companies like WEST HUNGARY
TEXTIL KFT., TRAVIAL'SZ LTD., F&D SZORME KFT. And FARKASTENT AND EVENT
KFT. are the competitors. This companies have so many advantages as they know their country
better and already have market share. But the main weakness will be they probably do not have as
non-expensive labor force and quality materials. So, if we can make them our customer of raw
material or finished sweaters that will be win-win situation.

Bangladesh is renowned for manufacturing and exporting quality textile & clothing abroad.
Presently Bangladesh is second biggest instant articles of clothing (RMG) maker after China, by
the following five years Bangladesh will turn into the biggest instant pieces of clothing
manufacturer. Bangladesh was the 6th biggest exporter of attire on the planet after China, the EU,
Hong Kong, Turkey and India in 2006.In 2006 Bangladesh's partake on the planet clothing fares
was 2.8%. The US was the biggest single market with US$3.23 billion in fares, a 30% partake in
2007. Today, the US remains the biggest market for Bangladesh's woven articles of clothing taking
US$2.42 billion, a 47% share of Bangladesh's aggregate woven fares. The European Union
remains the biggest territorial goal - Bangladesh sent out US$5.36 billion in clothing; half of their
aggregate attire trades. The EU took a 61% impart of Bangladeshi knitwear to US$3.36 billion
fares. As per a 2011 report by global counseling firm McKinsey and Company, 80 percent of
American and European attire organizations wanted to move their outsourcing from China, where
compensation had risen, and were thinking about Bangladesh as the "following problem area"

12
making it the "following China" offering 'the most minimal value conceivable' known as the China
Price, the sign of China's unbelievably shoddy, universal producers, tremendously "feared by
contenders."

Possible Strengths, weaknesses, opportunities and threats will Unique-Apparels-Ltd. will face in
Hungary is given bellow:

Strength:

Powerful Manpower: Factories are very much furnished with talented, aptitude and gainful labor.
They are doing their level best to convey opportune shipment and sending out 100% quality pieces
of clothing.

Creation of Fabrics: Mostly representatives deliver textures according to purchaser’s

prerequisite.

Appropriate Management: Employees of Unique-Apparels-Ltd. deals with all the printed

material pleasantly; administers the generation from begin to end and ships the great s according
to the prerequisite of purchasers.

Knowledge and experience: We have 5 years’ experience of exporting already doing exporting
in Germany, Italy and many other countries which is a great advantage.

Weakness:

Deficiency of workers: As the Industry is not all that enormous and the quantity of representative
is constrained, here and there it turns out to be truly hard to deliver every one of the merchandise
opportune and workload of the laborers increment, all things considered, if there is a substantial
shipment.

New country: As Hungary is a new country there will be different competitor and we have to
adapt the culture too.

Opportunity:

Diversification: Unique-Apparels-Ltd. can extend their business by setting up the yarn, woven
and sweater manufacturing plants. It will help them to limit the hazard.

Contracting dynamic and new Graduates: Unique-Apparels-Ltd. can procure rapid, youthful
and new Graduates who can produce creative thoughts and can prompt to grater benefit.

Going to Trade Fairs: Unique-Apparels-Ltd. can partake in various exchange and material
reasonable for get open consideration and can get new thoughts related with today’s business.

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Threats

Competitors‟ shrewd move: Competitor enterprises are always offering creative and substitute
an item which is a major risk for this industry.

Exchange obstructions: Increased exchange boundaries and amount framework withdrawals are
the significant dangers for the newcomer enterprises like Unique-Apparels-Ltd.

Political lopsidedness: One of the real dangers for Unique-Apparels-Ltd is the current political
insecurity. Strike, Procrastination and so on are hampering the creation procedure seriously.

Global Marketing Research

Analysis on Knitwear Industry:
European economy:
When contrasting the textiles and clothing sector and different segments of the economy, for
example, the sustenance and drinks, and car areas, Figure demonstrates that, in 2004, the materials
and garments segment made just 3.5% of included an incentive in the assembling segment as entire
in the 27 European Member States (EU27 – the EU25 and the two new Member States, Bulgaria
and Romania, that joined the EU in 2007). Its share of included esteem declined from 4.2% in
2000. As far as esteem included, the materials and attire part in Europe is moderately little.

As far as turnover, the monetary significance of the materials and attire division in Europe, when
contrasted with different segments in assembling, is additionally restricted. The area's extent of
turnover in the assembling segment in general added up to 3.2 % in 2004

Labor situation:
Work in the European materials and apparel area has been declining for quite a few years. The
most recent accessible figures from Eurostat affirm this has not changed over the most recent
couple of years. In 2004, the quantity of individuals utilized in the segment added up to 2.2 million.

14
In 2006, Euratex asserted that the quantity of individuals utilized in the materials and garments
industry was 2.1 million

In numerous economies, the decrease in materials and garments work has happened against the
scenery of falling business levels all through the assembling area and heightened globalization of
mechanical exercises. Expanding worldwide rivalry is frequently referred to as one of the real
reasons for this decrease, yet investigate demonstrates that different elements could likewise
influence sector based work levels.

Structural Impact:
The area is a differing and heterogeneous industry which covers a wide assortment of items from
hello tech manufactured yarns to fleece textures, cotton bed material to modern channels, and
nappies to high design items. This assorted quality of final results relates to a large number of
mechanical procedures, endeavors and market structures (European Commission, 2007). In 2004,
234,606 organizations were working in the EU27 materials and garments segment, a large portion
of which were SMEs. Thusly, under 1% of the organizations utilize more than 250 staff, while
80% of the organizations just utilize in the vicinity of 1 and 9 laborers (Eurostat, 2007a)

Government and trade:

Materials and dress have constantly spoken to a noteworthy division in world exchange, and
furthermore inside the European Union. By WTO gauges, in 2004, world fares of materials and
dress added up to €566 billion, which spoke to over 6% of aggregate world fares. The dress area
brings the lions impart to €322 billion (European Commission, 2006b). A few variables –, for
example, reliable speculation, accentuation on up market items and being the world pioneer in the
mold business – have all added to the way that Europe has turned into the world's biggest exporter
of materials and the second most imperative exporter of garments. The EU is likewise the world's
second biggest merchant of materials and attire products, simply behind the US (European
Commission, 2006c).

15
The European materials and garments area has been losing ground as of late. Despite the fact that
the estimation of the materials and garments merchandise's fares has been expanding, the sharp
ascent in imports taking after the progression of materials exchange 2005 has brought about a huge
augmenting of the EU25 exchange shortage. This extending exchange deficiency is most likely
because of an expansion in the shortfall for material items adding up to - €7,343 million in 2005
and a fast increment in the rate at which imports from China and Bangladesh land in the EU
Collecting Primary Data:
To think about the economic situations and how we will satisfy the prerequisite of our purchaser
are truly vital for us and to know all these data we need to experience some statistical surveying
and examination which helps us to know how we will accomplish an a superior position and hold
it effectively

Research Organizations:
There are different associations who lead inquire about in light of our necessity and helps us to get
genuine think about our prerequisites. The main objectives of a research organization are as
followed:

• Traditional study research

• Advanced analytical analytics
• Basic behavior and supervision of vast sums of Big Data;
• Shift from social media aggregation to social media integration and analytics;
• Merging of panel management, sample administration and online population managing
practices.

Data Analysis and Technical Assistance Limited

DATA is a research counseling firm to applying its specialized skill in support of discovering
answers for squeezing social and monetary difficulties in Bangladesh. Its uniqueness as an
association originates from the genuine dedication, productivity, and excellent work of its staff
and the prioritization of customer fulfillment over benefit. DATA conveys solid scientific ways to
deal with issues with its broad involvement in study plan, information gathering and measurable
investigation and utilization of different significant national information sources, for example, the
Population Census, Income Expenditure Survey (IES), and so on. A noteworthy quality of the firm
is directing advanced specialized research and interpreting the techniques and results into
introductions open to an expansive, non-specialized crowd.

16
The Centre for Development Research:
The Center for Development Research, Bangladesh (CDRB) set up in 1982 has been filling in as
a noteworthy research organization in Bangladesh and earned status both at home and abroad. It
is a free, non-benefit association, comprising of experts, experts, scientists and researchers with
multi-disciplinary foundation and drawn from different colleges, inquire about associations and
corporate bodies. CDRB is occupied with consultation, spread and preparing proposed to grow the
territory of human information for connected and useful utility in the improvement procedure. One
of the real measurements of the work and assignments of the CDRB is to use its pool of multi-
disciplinary specialists to attempt financial and lawful authoritative reviews and assignments for
governments, corporate associations and universal bodies. The CDRB has additionally constituted
a board on Foreign Policy Research with twelve of recognized representatives, examiners and
scientists

Policy Research Institute:

The Policy Research Institute of Bangladesh (PRI) is a private, charitable, unprejudiced research
association devoted to advancing a more noteworthy comprehension of the Bangladesh economy,
its key arrangement challenges, locally, and in a quickly coordinating worldwide commercial
center.

Global Market Participation

According to the demographic patters it is said that the size and the market growth will be fruitful
in future. Research found that the average temperature of Hungary is 21 degree Celsius. So, it is
undoubtedly said that warm clothes are very much needed thing in Hungary because everyone
wants to be protected against the harness of cold. Another thing is that the population of that area
is financially strong, as we already mention that per capita is $27200. If we review the demographic
pattern based on age is showed those 0-14 years: 14.76% (male 750,516/female 706,780), 15-24
years: 11.19% (male 570,097/female 534,856), and 25-54 years: 41.74% (male 2,071,865/female
2,049,939), and 55-64 years: 13.66% (male 620,362/female 728,387), and 65 years and over:
18.65% (male 693,609/female 1,148,373). Basically, our product “knit Sweater” is applicable for
all aged people in Hungary. If we focus on the financial factors and social class, it is seeming like
that Elite: 2 percent of the population; Upper middle class: 10.5 percent; Upwardly mobile young
people: 6 percent; Rural members of the professions: 7 percent; Traditional lower middle class: 17
percent; Lower class: 18 percent; Manual workers: 16.5 percent; Declassed groups: 23 percent.
According to the statistics only 2% of the total population is Elite, so except this group we will
have a target to target to all social classes in Hungary. So, it can be said that if we focus on our
best marketing policy, the market of Hungary for sweater can be a haven for business because our
demographic patters are favorable to us.

If we do well at first in Hungary, we obviously flourish our market to other countries where
cultures and all platforms match to the Hungary. So far research discovered that Knit Sweater
already is exported by Bangladesh to European countries like Germany, France, Denmark, UK
17
Italy, Spain, Poland, Russia, Switzerland, Austria, Finland, Sweden etc. Here is the report
according to 2014 data that Bangladesh has exported knit sweater to other countries:

Source: The Observatory of Economic Complexity

Link: http://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/bgd/show/6110/2014/

Not only success depends on business to other countries, but also there are some factors that affects
to a new business like market knowledge, cultural knowledge, economy and so on. We will
concentrate here only market knowledge for doing business regionally. We already know that other
organizations is exporting knit sweater to the neighboring countries of Hungary. It is a plus point
for us because we can learn about other markets situation to analysis old business report of existing
companies which already is involved in exporting knit sweater to neighboring countries of
Hungary. We also can learn from their mistakes. So, in future we have a plan to spread out our
business to whole Europe.

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Hungary is in Regional map:

The neighboring countries of Hungary:

The following countries directly border Hungary (border lengths included):

Austria 366 km

Croatia 329 km

Romania 443 km

Serbia 166 km

Slovakia 676 km

Slovenia 102 km

Ukraine 103 km

Hungary offers parts of its way of life with a few locales in Romania (Transylvania), Slovakia
(South), Croatia and Austria (Burgenland), which are all home of Hungarian talking individuals.
Other than that, Hungarian culture is truly unusual. But in terms of fashion and clothes sense the
Hungarian people are very much close to their neighboring countries. Similarities between the
Hungary and Finland/Estonia depend on the common roots of the language. Socially the
Hungarians are like their prompt neighbors; alternatively, their dialect is an irregularity in the
district. As we already mentioned if everything is going well will emphasis on other European

19
countries. In any case, Slovakia is apparently the nearest to Hungary as far as culture. Perhaps
parts of Romania run a nearby second. Hungarian is a Finno-Ugric, Turkic-related talk, yet their
way of life has nothing Turkic close to dialect and some old stories. Genetically, every Hungarian
gathering is vague with the gatherings where they live, be they Romanians and Slavs. As attitude,
they are near Germans, sorted out, dedicated, smart, lovely (physically) individuals. Although
Hungarian people’s culture is not 100% similar to their neighboring countries, it is possible to
enlarge our target market to other neighboring countries of Hungary.

Hungary has been a WTO part since 1 January 1995 and also an individual from GATT since 9
September 1973. All EU part States are WTO individuals, just like the EU (until 30 November
2009 referred to confidently in the WTO as the European Communities for lawful reasons) in its
own privilege. WTO exchange claims help us do that in two ways. They empower European
organizations to contend all the more successfully and fare more to nations and locales outside the
WTO. They additionally give better access to crude materials and vital segments from around the
globe. This expansion in exchange then develops the economy, implying that more employments
are made. It additionally gives purchasers a more extensive selection of items at lower costs. WTO
exchange understandings additionally require accomplice governments to ensure human rights,
work rights and the earth. For instance, accomplices focus on handling issues like wellbeing and
sexual orientation fairness in the working environment.

Global Market Entry Strategies

What entry mode would you recommend that the company choose when entering into
Hungary:

There are different sorts of entry modes among them trading is the way toward offering of
merchandise and ventures created in one nation to different nations. There are three sorts of
sending out ways yet Indirect Exporting and Direct Exporting are the well-known in the middle of
these alternatives

Indirect Exporting

Direct Exporting

Intra Corporate
Transfer

20
Best entry modes for us and reason behind that:

Indirect Exporting implies the association partake in worldwide business through a go-between
however they don't need to manage the remote clients

Direct Exporting implies they include with outside clients or advertise and have that chance to
manufacture an association with the clients.

Between these two-indirect exporting is our favored method for the business in European Union.
We serve our item in view of the necessities of purchasers and we convey our shipment before the
due date. There are a few preferences of indirect exporting for which this method of passage is
ideal for us.

• We don't need to confront any kind of political situation or monetary ups and down for our
products
• We can without much of a stretch set up our item in view of purchaser request and we don't
need to examine the market to discover what patterns are trailed by our clients.
• We don't have confront that a great part of the lawful terms in direct showcasing which we
may need to take after in the event that we pick coordinate advertising

Those are some essential points of interest which we appreciate through this passage method of
business.

Then again, coordinate trading is somewhat wrong for us in view of the accompanying reasons

• On the off chance that we take after direct trading mode then we need to manage government
approaches and as an outside exporter charge or legitimate issues were there.
• For understanding client desires, we need to concentrate a great deal since they are so not quite
the same as our way of life
• At that point we need to make a decent attempt and contend with existing remote advertisers
to serve our items

So, we pick the mode sending out among different modes since this mode has such a large number
of in addition to focuses including moderately low money related introduction, allow slow market
section, get learning about market and maintain a strategic distance from limitations on outside
market.

How the company benefit from a strategic alliance in Hungary:

Because two things don't appear to go together at to start with, doesn't mean they aren't an
extraordinary combine. At first look, a few organizations may appear to not have much in like
manner, but rather after somewhat more critical look you may discover some similarities —
 Customer bases with normal interests, the capacity to use one customer pool with another, or even

21
only a cooperative association that proceeds in the background for quite a long time. For most vital
collusions, the organizations included can achieve farther inside a forthcoming client pool. Also,
with two deals groups working in the channel that implies you have admittance to twice the same
number of prospects than if you were working alone. The collusion for the most part plans to give
common advantages, enhance their focused situating, pick up section into new markets, share the
cost and danger of new advancement tasks, and supplement their basic aptitudes. Created and
engendered as formalized bury authoritative relationship, the union looks to accomplish
hierarchical targets in better way, through cooperation, as opposed to rivalry. The organizations
try to work in joint effort, encouraging worldwide sourcing in the material esteem chains.

Textile & Apparel industry benefits:

Strategic alliance together mirrors the craving of two organizations to accomplish their free
business goals helpfully. Attire industry comprises of esteem chain impacted by purchasers, and
three lead firms; advertisers, retailers, and producers. Vital organizations together would clear path
for clothing enterprises to climb the esteem chain, building up its ability.

Easier to access target markets:

Presenting an item in another market can challenge for any business. Besides, it is likewise
exorbitant and muddled presenting the business to settle in rivalry, operational obstacles, and
unfriendly statutory controls winning in that area. Opportunity costs and direct money related
misfortunes because of wrong economic situations may likewise happen.

Going in for a key union with an entrenched business in that district will conquer these issues,
and help the association to limit its entrance cost in the new market. Organizations can get orders
from marked retailers, architects, and makers. Systems would be created, demonstrating urgent
for the move of full generation.

Global Product Strategies

In terms of exporting product, we have to pay a lot of time to think that what to change in our
product so that our foreign customer accepts our product or there is no need to change anything,
customers will accept it anyway. In our case our product is knit sweater and we are planning to
export in Hungary, we do not think we should change the core product as we are exporting the
same product in the other Hungary’s neighbor country. As our customer are another business
(B2B) so packaging will also depend on them to change. As far supporting service goes we will
be using as same after sales service as other Hungary’s neighbor country. So, no adaptation or
modification needed. We can export our global standardized product.

Hungary is a member of ISO. The Parliament received Law XXVIII of 1995 on national
institutionalization in 1995, making the system for the foundation of the Hungarian Standards

22
Institution (MSZT). By goodness of the Law, MSZT is the national guidelines body of the
Republic of Hungary, which, as a self-governed, non-benefit assortment of open intrigue, plays
out the obligations concerning national institutionalization and related exercises. Our Knit sweater
has been accredited by ISO 9001, 14001 and Oeko-Tex100 so it is healthy and eco-friendly and
can be used for sweaters knitting wool for baby and be worn next to skin.

In our Hungary analysis, we already have mentioned that Hungary is very cold place which is a
very good for our business. Normally temperature stays at Zero degree, however at times winter
months can be exceptionally cold with temperatures far underneath zero and solid, frosty
northeasterly winds, called Bora. In summer in Hungary is like winter in Bangladesh. As our
product is not a kind of product which is harmful or disrespectful for Hungary’s culture and climate
so we will be using our slandered packaging for exporting and leave other packaging to our
exporting partners.

As knit sweater is a regular and common wear for Hungary as it is a cold country, knit sweater
demand will never going to stop and will always stay in same demand position. So, in product life
cycle knit sweater still in maturity level in Hungary.

As our company has BKMEA/ BGMEA membership certificate, Trade License, TIN & VAT
certificate and Trademark certificate so we have enough strength and efficacy of intellectual
property protection.

23
Pricing for International and Global Markets
As we are involved in B2B business and we are going to make relationship with the importer of
Hungarian local sweater business man. We already mentioned that we are just going to export the
sweater in Hungary. So, we are exporter. We will export these sweaters in a lot size to different
local Hungarian sweater company whose have shops in the Hungary. As whole a seller we must
have to set up a price for whole selling. We will set up a reasonable price for our sweater because
the local Hungarian locals also have to make benefits. However, we have some cost to export
sweaters in Hungary for example transportation cost, insurance cost, labor cost etc. We have to
make profit, so considering our entire cost and competitor’s price we set up a price for sweater
which is $30 for each sweater. We believe thus we 0can make profit.

$27200 per capita is standard earnings for a developed country. It a positive sign for our business
because the people of Hungary have a strong buying power. But we must have too careful about
our competitors. People always go for cheaper price, it is human nature. We are planning to set a
reasonable price for Hungary which is comparable to our competitor’s price.

Hungary is the 35th biggest fare economy on the globe and the sixteenth most complex economy
as per the Economic Complexity Index (ECI). As per the Import Regulation's general lead, items
can be uninhibitedly transported in into the EU and, properly, are not subject to any quantitative
limitations, without preference to the shield measures which might be taken under the Import
Regulation. Protect measures might be connected when items are foreign into the Community in
such significantly expanded amounts or potentially such terms or conditions as to bring about,
genuine harm to Community makers.

Moreover, neither the EU governs on the interior market, nor the Import Regulation block the
appropriation or application by Member States of measures on grounds of open request, open
profound quality, open security, the assurance of wellbeing and life of people, creatures and plants,
the insurance of national fortunes, the assurance of mechanical and business property, and unique
conventions concerning outside trade.

Distribution
Though Hungary is approximately 93,028 sq. km which is about two times smaller than
Bangladesh but it has 19 different regions. Budapest is the largest among them. As an initial
exporter, targeting to all regions is a good strategy. So, we first want to focus few regions like
Budapest. Then we will expand our business later.

We usually will be use seaport for exporting, so we choose Port of Budapest which is near to
Budapest the capital of Hungary.

24
Advantages and disadvantages of sea transport:
Advantages
• Ideal for transporting heavy and bulky goods

• Suitable for products with long lead times

Disadvantages
• Longer lead/delivery times

• Bad weather

• Difficult to monitor exact location of goods in transit

• Customs and Excise restrictions

• Could be costly

Major documents for sea transport:

 Certificate of Origin
 Bill of Lading
 Sea Waybill
 Insurance Documents

Hungary has one of the most preeminent motorway densities in all of Europe and the third most
amazing street thickness, after Belgium and Holland. Expressways achieve the outskirts of the
nation and the diverse locales of Hungary. Hungary has a focal area in Europe, at the connection
of four fundamental European transportation passages.

Because of its central area, Hungary has a broad railroad arrange. Rail transport conveys over 20%
of aggregate cargo, which is well over the EU normal. A few primaries prepare lines interface
Hungary with the fundamental ports of Western Europe Bremerhaven, Rotterdam and the Adriatic,
Trieste with general administrations. The aggregate length of the Hungarian railroad framework is
7,729 km; of which twofold track is 1,335 km (17.3%) and the zapped railroad system is 2,628 km
(34%).

Overall retail environment of Hungary is very good but there are restrictions for local retails.
Hungarian retailers have been permitted to open on Sundays and overnight since the mid-1990s,
at the same time, from March 2015, a very faced off regarding bit of enactment essentially
decreased the quantity of retailers that were permitted to open amid these basic periods. Just basic
need retailers at service stations, airplane terminals, prepare stations and agriculturists' business

25
sectors were permitted to open on Sundays, leaving outlets in strip malls, hypermarkets and
discounters off guard, as roughly 7% of their aggregate week by week deals had been created on
this one day.

The import and circulation diverts in Hungary are moderately basic, due for the most part to its
little geographic size and landlocked area. Normally, substantial estimated wholesalers likewise
go about as merchants. While medium-sized merchants purchase their items from East and West
Europe, various vast estimated organizations go specifically to Asia to source an extensive variety
of buyer merchandise and mechanical data sources. Their clients incorporate nearby wholesalers
and those from other East European nations, and in addition some vast estimated retailers of
shopper products, and medium-and expansive measured makers of mechanical things.
Outstandingly, numerous shippers and merchants in Hungary have been working up their
dispersion organizes in Central and Eastern Europe (CEE). This improvement is encouraged by
Hungary's liberal exchanging condition and moderately low tax collection

Promotion Strategies
Unique Apparels Ltd is an association which sends out their items to European nations and now
they will trade their products to Hungary. Each association have some promotional methodology
for its own, Unique Apparels additionally have a few.

• Personal selling: Unique Apparels Ltd contact with their purchasers. They sent them test
items for settle the arrangement or contracts. By looking at those examples purchasers judge
the nature of the items.
• Sales promotion: They don't need to deals promotion since they send out in a bunch to their
purchasers so there is no alternative for deals advancement
• Telemarketing/e-marketing: Unique Apparels some of the time contact with their
purchasers through mail and contact with them by means of video calling.
• Product placements: When any purchasers discovered some mix-up on their item the entire
bunch was crossed out and they give their purchaser another greater part of items so that the
purchaser acknowledges they can't trade off with the nature of their items.
• Buzz marketing: This is B2B organization so there are no choices for buzz promoting
• Public relations: They contact with their purchasers so they don't need to manage open
activities or feelings. So it is cleared that they don't utilize any sorts of technique for promotion
however they work a considerable measure to make their item in vogue in light of inclination
of individuals.

Advertising
• Importance of advertisement of our products: Advertisement of items is vital for
refreshing your clients about your item includes. For us purchasers are our clients since we

26
 are concentrating on B2B just that is the reason we are attempting to mindful the purchasers
about our item all through commercial.
• Pros and cons: We as of now specified that Unique Apparels Ltd took after B2B technique,
there is nothing to hire nearby or global organizations for publicizing, the main thing we
accomplish for our advertisement is giving the nation rundown or purchasers list which helps
our new purchasers to comprehend our quality and spur them for procurement.
• Availability of media: There are such a variety of modes are accessible however we just
refreshed our purchasers through our purchasers list where it was specified what purchasers
we will be we as of now traded.
• Advertising regulations: Our nation Bangladesh is notable for its articles of clothing and
knitwear items, this is not destructive so there are no directions connected for publicizing
this sorts of items yet the vast majority of the pieces of clothing and knitwear items are being
traded from Bangladesh so they don't utilize exhorting all through media modes however
they gives handouts where their fundamental subtle elements are specified.
• Effectiveness of our advertisement on Hungary: In B2B technique exporter doesn't need
to manage coordinate clients, they just need to manage the purchasers. That is the reason that
doesn't need to publicize their items to draw in clients.
• Advertising message: Unique Apparels Ltd took after by a slogan which is "Warmth of
Love" which implies by wearing their item anyone can feel the glow of love which is a
feeling for all.
• Cost: They have utilized almost no measure of their financial plan for their promoting in
light of the fact that it is a B2B association and they just need to do is refreshed their
purchasers so their cost is exceptionally modest for publicizing.

Conclusion
To conclude we want to say that Knit sweater is exported all over the European countries by
Bangladesh. Hungary is one of the missing few countries where Knit sweater is exported so it is a
great opportunity for Knit sweater is exporters to make their next target to Hungary. The culture,
climate, social institutions, political element, economy all are very suitable to export knit sweater
and make a source of great profit in Hungary. It just need a proper primary research to make it
happening. If an existing company who are already dealing with Knit sweater exporting business
in European countries, it will be easier for them. Logistic forwarding companies will be very
helpful in this business supply chain for company who are not already dealing with Knit sweater
exporting business. So, we believe Hungary is will be very profitable and easy to do knit sweater
exporting business for Bangladesh in near future.

27
Recommendation
There is little issue that the new exporter should follow because there is some internal exporting
policy has been imposed by Hungarian government. One of them is restriction on opening shop
on Sunday. Hungarian government does not allow retailers shop opened on Sunday except gas
station, electricity plant and health service which cause 7% of weekly revenue get lose. Hungarian
government should take necessary steps to solve the problem. Secondly our business information
that we have provided in the term paper which is based on secondary data not primary data. We
cannot call secondary data is an authentic data. So, when we will do business in Hungary in real
life, we have to research before starting the business. We can survey on Hungarian customers, we
can collect data from existing company for more valid information.

Initially we are doing business in Hungary as an exporter; if we fail to be success then we have
others different options like merger, acquisition, joint venture and so no. Another thing is that due
to geographic differentiation the temperature of Hungary varies in different regions. We primarily
are targeting the capital Budapest while is the best distribution channel for Hungary as well as for
whole Europe. If we fail to maintain our strong supply chain, then we may shift our target to other
regions.

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Hungary | Economic Indicators. (n.d.). Retrieved from

http://www.tradingeconomics.com/hungary/indicators

Hungary: Economic and Financial Data. (n.d.). Retrieved from

http://www.ksh.hu/docs/eng/imf/nsdp.html

Culture of Hungary - history, people, traditions, women, beliefs, food, customs, family, social.

(n.d.). Retrieved from http://www.everyculture.com/Ge-It/Hungary.html

Three Unexpected Major Challenges for Retailers in Hungary in 2016. (n.d.). Retrieved from

http://blog.euromonitor.com/2016/06/three-unexpected-major-challenges-for-hungarian-

retailers-in-2016.html
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