|2006 – 2007 Consulting Assignments:
In the years 2006 – 2007, Tiara International Consulting was actively involved in a series of projects both for the Public Sector as well as the Private Sector. The public sector projects were sponsored by the Inter-American Development Bank (IDB) for the Ministry of Foreign Trade & Tourism (Mincetur), Government of Peru (GOP). The private sector projects related to some of the well known agricultural companies in Peru. Some of the more important projects are discussed hereunder:
1. Marketing Strategy for Peru's Exports of Jewelry:
Peru is ranked No. 6 in the world in its exports of gold at a level of 172 tons in 2005. Further, Peru ranks No. 1 in the world in its exports of silver at the level of 2,975 tons in the year 2005. With all these exports amounting to over $4 billion per annum, Peru still lags behind in its exports of gold and silver jewelry to the world. These amounted to less than $100 million, if one takes into account the extent of value-added in jewelry.
Dr. Kumar was commissioned to develop a Marketing Strategy for Peru's exports of gold and silver jewelry to the rest of the world with special emphasis on the US Market and the EU Market.
Dr. Kumar not only came up with the Strategic Options for Peru to succeed in the exports of Jewelry particularly to the US market but also came up new ideas in the form of Strategic Planning for setting up Industrial Parks for gold and silver manufacturing. Countries such as Turkey, India and Italy were benchmarked in this regard. He also developed a mathematical model wherein all the strategies for Peru were embedded.
The project was a tremendous success. The Strategy outlined demonstrated that with some capital investments in the manufacturing of jewelry, Peru could achieve a pre-eminent position over the next 5 years in increasing their exports to over $800 million in jewelry alone. A Decision & Risk Analysis (D&RA) was carried out with the help of the mathematical model, which showed the Principal Drivers of the Business and the Probability of Enhancing or Destroying Value for GOP as well as the Private Sector.
The client was very pleased with the recommendation and they even wrote a congratulatory letter in the form of a testimonial to Dr. Kumar
2. Peru's Strategy for the Exports of their National Flag (Bandera) Products
Maca is a unique tuber (similar to sweet potatoes) grown only an at elevation over 10,000 ft. Originally for the Inca civilization, it was the staple diet especially in the high elevations of the Sierras. Maca has some remarkable nutritional qualities and would qualify extremely well in its different allotropic formations and derivatives as a "diet supplement" some of which are very similar to the well known product "Ginseng".
Dr. Kumar came up with a list of seven segments (of which 5 were new segments not currently catered to by Maca and its derivatives) wherein Maca and its derivatives could be properly positioned for market penetration. This enlarged tremendously the potential market for Maca in various countries such as the United States and Japan. Further, Dr. Kumar came up with a Strategy for introducing new products in the "Energy Beverages" Segment, with unique distribution strategy which would quadruple in dollar value of all Maca sales in all other segments in the US.
It was highlighted that Peru's exports of Maca, its derivatives and the New Products could reach as much $100 million just to the United States with the Strategic Options provided in this consulting assignment. A D&RA was carried out on the potential investments and the probability of enhancing or destroying share value together with the analysis of the principal drivers of this business.
This was yet another Bandera project. Peru is somewhat unique in producing this agricultural product which belongs to the family of Sapote/Sapodilla. However, the size of the fruit, its texture inside, its unique yellow/orange color of the flesh and its fibrous/buttery combination make it somewhat unique even in the Sapodilla Family. Its scientific name is Pouteria Obovata Baehni. In Peru this product is highly used for flavorings in ice cream and yogurt. It ranks No. 3 in ice cream and yogurt flavoring next only to vanilla and strawberry flavors. Dr. Kumar was commissioned with the consulting assignment of developing Strategies in developing export markets such as the United States and Japan.
In addition to the ice cream and yogurt segments, several segments were investigated such as Flavored Milk, Sweet spread segment, Confectionery, Bakery and Baked Products and finally the Breakfast Cereals segments. It was pointed out that the market in the United States was huge of the order of a billion dollars.
Thereafter, Dr. Kumar came out with Strategic Options of how to penetrate different segments in the market. It showed that over a period of 5 years, Peru can improve its exports of the order tens of millions of dollars. A D&RA was carried out which showed the Principal Drivers of the Business as well as its Risk Profile of Project.
Peru is unique among the South American Countries as it relates to its "fusion cuisines". A visit to various restaurants in Peru will show the tremendous variety of "fusion cuisines" that they have and how they are very innovative in this regard. In short it can be called the "Paradise of Cuisines" in Latin America. Yet, very little of Peru's Cuisine is known outside the country particularly in the United States.
Dr. Kumar was commissioned to develop Strategies for Peru to export its gastronomical products to the US. This called for strategies to develop some upscale restaurants in Strategic Locations in the US besides actively introducing and promoting "Culinary Institutes" in the US. Various Strategies to participate in the distribution channel and also the role that tourism can play in the promotion of Peruvian Cuisine were highlighted in the study.
The market is so large in the US that Peru should be able to achieve an export sales revenue of $50 million within the next five years, if they follow many of the Strategies outlined in the Study. A D&RA was also carried out to show the probability of enhancing or destroying shareholder value for potential private investments.
A special testimonial outlining the clients' very favorable response to all the strategies discussed in these studies is also attached separately in this web site under testimonials.
3. Peru's Exports to China of Non-traditional Products:
In 2005, Peru exported $2 billion worth of products to China. Of the above, the traditional products such as "mining products" (copper, tin, molybdenum, iron and so on), fishmeal products and the like accounted for $1.93 billion. The exports of non-traditional products were only of the order of $70 million. The objective of the consulting assignment was to come up with Strategic Options which would improve the potential exports of the non-traditional products substantially.
Dr. Kumar developed a "Product Selection Model" after looking at a total of 3,852 products that China imported. This model optimized and came up with the following lists:
||Top 20 Short Term Products
||Medium Term 20 Products
||Long Term 20 products
After making the product selection as above, Dr. Kumar also developed a "Market Penetration Model", which demonstrated as to what Strategies that Mincetur should follow to achieve a significant market share of the next 5 years.
An Action Plan was outlined which determined what the Government of Peru (GOP) should do and also the role of the Private Sector as it related to Capital Investments and participation in various Trade Shows and so on. The Strategies pointed out that Peru should be able to achieve incrementally another $800 million per annum in exports by 2011 if they adopted the strategies as outlined by Dr. Kumar. A D&RA was also carried out in this regard.
4. Private Sector Acquisition Study in Peru:
In 2007, a major private sector agricultural company in Peru involved in the cultivation of asparagus, avocados, mangoes, artichokes and pimento involving over 10,000 hectares found a local buyer of all their agricultural land. The potential buyer had asked, inter alia, Tiara International Consulting to come up with proper Valuations of the Company under different Scenarios and also to carry out the Decision & Risk Analysis involving the development of the Principal Drivers and assessing the Risk Profile, i.e.,., the probability of enhancing or destroying shareholder value for different acquisition costs. The deal was consummated more or less on the criteria as outlined by Tiara International Consulting.
<< Back to Recent Consulting Assignments