Effect of Good Packaging System in Exporting Flower from Bangladesh

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Letter of Transmittal

5th, July, 2014

Mohammad Musa

Instructor

Career Planning and Development-II (ART-203)

IUBAT- International University of Business Agriculture and Technology

4, Embankment Drive Road, Uttara Model Town,

Sector 10, Dhaka 1230, Bangladesh.

Dear Sir,

This is a great opportunity & immense for me to submit this report on the topic of “Effect of Good Packaging System in Exporting Flower from Bangladesh.” I have prepared this report as partial fulfillment of the course ART 203. I have tried my level best to prepare this report to the required standard. It was certainly a great opportunity for me to work on this paper to actualize my theoretical knowledge in the practical arena.

I express my heart full gratitude to you to go through this report and make your valuable

comments. It would be very kind of you, if you please evaluate my performance regarding this

report.

Thank you

Sincerely Yours,……………………..

Md. Abu Hasan

ID# 12102494

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Acknowledgement

This Project which is entitled as ““Effect of Good Packaging System in Exporting Flower

from Bangladesh.”” is talking about to get the international market and make as a most

potential sector in Bangladesh by using a good flower packaging system .

In the process of conducting this research project, I would like to express my gratitude and

respect to some respectable person for their enormous help and giant support.

First of all I would like to thank to Mohammad Musa, Instructor, Career Planning and

Development-II (ART-203) who helped me a lot by his brilliant guidelines to make this

proposal, without which it was not possible to conduct it.

I would like to give special thank to “Assistant Pro. Swapan kumar saha , who helped me, a lot to

prepare this report.

July 05, 2014 Author

IUBAT, Uttara, Dhaka.

……………………..

Md.Abu Hasan

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Student Declaration

I am Md.Abu Hasan the students of Bachelor of Business Administration (BBA), at IUBAT-

International University of Business Agriculture and Technology and declaring that, this report

on the topic “Effect of Good Packaging System in Exporting Flower from Bangladesh.””

have not been previously submitted to any other University/Collage/Organization for any

academic qualification Certificate/ Diploma or any other degree. The report contains no material

previously published or written by anyone except where due reference is made in the text of the

thesis. It has been prepared for the fulfillment of my BBA.

…………………………………

Md.Abu Hasan

ID: 12102494

Program: BBA

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Table of Contents

Topics Page No.

I. Preparatory Part:

A. Title Page 1

B. Letter of Transmittal 2

C. Acknowledgement 3

E.Student declaration 4

F. Table of Contents 5-6

G. Executive Summary 7

II. Body of the Report:

A. Introduction 8B. Problem 8

C. Background 8D. Significance 8

E. Scope 9F. Limitation and Methodology 10

a.Secondary Data Sources 10b. Primary Data Sources 11

III. Discussion of Findings:

1. The Importance of Good Packing of Flower 112. Requirements of good packaging system 12

3. Functions of Packaging 12 4.Flower Packing system of Bangladesh: 13 5.Flower Transportation problem in Bangladesh without packaging : 14 6.Improving packaging standard is vital to maintain flower quality 14-15

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7.Standard flower packaging system 16

8.Exporting cut flowers in the world 17 9.Using suitable packaging for exports of floricultural products 18

10.Flower export exceeds target 1911. Problems & Prospects of Flower in Bangladesh 19

12. Solutions for Flower Market Development: 20

III. Supplementary Part

Conclusion 21

Recommendation 21

References 22-23

Bibliography 23

Appendix 24

IV. List of Figures

Figure 1: Bangladeshi flower packaging 13

Figure 2: Flower transportation system in Bangladesh 14

Figure 3: Foreign flower packaging system. 15

Figure 4: Standard flower packaging 16

Figure 5: : International flower market 17

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List of Table:

Table 1: Flower main production areas in Bangladesh 18

Table 2: Some flower shops and nurseries in Dhaka 18

Executive Summary:

Flower industry of Bangladesh is most potential sector and a leading foreign currency earning sectors. Now-a-days Bangladesh financial sector is very much dependent upon this sector. The annual export income of Flower sector is becoming very much strong rather than other business in our Bangladesh . in every year bangladesh is making huge amount of mony from exporting different types of flower. The market for flowers in South Asia’s Bangladesh has grown by nearly 10% every year. Cultivation is increasing along with local demand and the country’s flower export is also taking off, although additional investment remains desired. The country currently exports flowers and floral products to a large number of countries: India, Pakistan, Italy, Portugal, Saudi Arabia, the United States, South Korea, the Philippines, Singapore, Japan, Germany, Britain, Denmark and France

Actually ,in this report I explain so many important things details about effect of good packaging of flowers . We try to show many types of table and some important graph .for making this report in this report I try to discus or explain all those thing with huge discussion . I also give theoretical framework and many chart as a simple design for batter understanding . this are all my report .

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Effect of Good Packaging System in Exporting Flower from Bangladesh

Introduction Appropriate packaging helps prevent or reduce product waste and facilitates centralized processing and distribution. Proper packaging assures the availability, of safe, hygienic and undamaged goods. Correct design and use of packaging also helps reduce the environmental impacts of transportation. a perfect flower packaging always create more good looking and most sellable .Good package of flower has also a extra demand to the consumer and all business people .it is very important to bring the success in flower business . in Bangladesh perspective Good packaging of flower may bring a revolutionary changes in flower industry .

Problem

The bad flower packaging system is a really concern of our flower business industry of Bangladesh. This study was designed only for “Effect of Good Packaging System in Exporting Flower from Bangladesh” . however good packaging system can develop the flower business and can earn more and more the foreign currency .

Background

Flower marketing is the marketing activities to create and increase the demand of flower in the market. Today the trade of flowers is a promising trade and a number of florists have sprung up

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who sell flowers. No one could think of exporting Bangladeshi flowers even a few years ago. But this is a reality today and prosperous bonanza for tomorrow. In these days a number of commodities are getting faster market response with the help of marketing activities. One wonderful and beautiful category, which is full of fragrance, is also moving towards a strong branding and marketing initiative. This natural category is the category of flowers.

Significance of the studyThe reasons for conducting this research is to find out the attitude and perception of the consumer towards flower marketing and what are the problems related to it and what the management of flower can do to improve it and gain or increase the market share. Conceptual FrameworkConceptual framework basically describes the independent and dependent variable of the study that will influence the findings.

Dependent VariablePotentiality and problems of flower marketing system with good packaging in Dhaka city.Independent Variable

Flower packaging system Opportunity for flower marketing Cost of Flower packaging Profit margin Market demand Supplier availability Shop availability Environment of flower shop Promotion of flower business Storage facility Transportation facility

Scope

The scope of work under the assignment shall include the following:

Collect information on assessment methodology and implementation Collect participants profile

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Observe sample Carry out any other necessary activities relating to the task Tools and ability to know details about the flower packaging system in Bangladesh Increase the Knowledge and skills to use all of the necessary data and information

based on flower packaging . Knowledge and experience to be able install or adapt a complete

Limitations:

There are some limitations of the report and therefore it may lack some crucial data. In preparing the report I focus some problems which are as follows:

The main constrain of the study is insufficiency of information, which will require for the study. There are various information the company’s employee can’t provide due to security and other corporate obligations.

Time is also limited

The website of the flower industry is not provided enough information

HR department is quiet complicated and huge formalities are maintained.

As this is my first report about flower packaging business so I had to face some difficulties to preparing the report and

Sometimes it was very difficult to get sufficient help from the different flower packaging

shop due to their less knowledge standard flower packaging system.

Methodology

The study is explorative in the context of Bangladesh for the aspects focused mainly on good

flower packaging system . However, it can also be termed as descriptive and analytical.

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For the purpose of assessing quality and effective of the assignment the approach adopted will

include the followings: :

Review and relevance of field work

Ensure appropriate survey materials

The methodology will be fully developed with availability of more information as well as

theoretical exploration.

In order to meet the data requirement and collect the mentioned information following

sources has been used:

Primary Data Sources:

Face to face question and answer.

a. Secondary Data Sources:

Important sources of secondary data for conducting this research

were:

Book, report. journals

Internet Web site.

Discussion of Findings:

The Importance of Good Packing of FlowerGood packing is of great importance to a flower grower as he needs to make sure that the flowers do not arrive crushed or bruised. Similarly, when flowers are delivered to a recipient, beautiful packing plays a big part in the overall look of the arrangement. Using the wrong type or size of packing material may cause damage or breakage of goods, resulting in customer dissatisfaction and therefore loss of business. Before using packing supplies you need to think about the particular requirements of the items involved. Businesses use different types of packaging materials for sending items such as cardboard, polystyrene, bubble wrap and wooden crates.

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Requirements of good packaging system

* Functional – effectively contain and protect the contents* Provide convenience during distribution, sale, opening, use, reuse, etc.* Be environmentally responsible* Be cost effective* Appropriately designed for target market* Eye-catching (particularly for retail/consumer sales)* Communicate attributes and recommended use of the product and package* Compliant with retailers’ requirements* Promotes image of enterprise* Distinguishable from competitors’ products* Meet legal requirements for product and packaging

Functions of PackagingPackaging has a number of functions:

Protection Prevent breakage (mechanical protection) Prevent spoilage (barrier to moisture, gases, light, flavours and aromas) Prevent contamination, tampering and theft Increase shelf life

Promotion Description of product List of ingredients Product features & benefits Promotional messages and branding

Information Product identification Product preparation and usage Nutritional and storage data Safety warnings Contact information Opening instructions End of life management

Convenience Product preparation and serving Product storage

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PortioningHandling

Transport from producer to retailer Point of sale display

Waste Reduction Enables centralised processing and reuse of by-products Facilitates portioning and storage Increases shelf life Reduces transport energy

Flower Packing system of Bangladesh:Bouquets are usually made in urban retail shops by using different materials such as ribbon, polythene, small bamboo baskets etc. For high value flowers such as Gerber daisies, traders wrap them in small polythene before carrying it to end markets. At the beginning the gerbera farmers used old newspaper for wrapping the flowers in a bundle.

Figure 1: Bangladeshi flower packaging

Now some of them used corrugated fibre board carton. The two pieces of old cartons are joined together using scotch tape and remove the jointed middle of the box and place gerbera cut

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flowers in 2-3 rows. Very recently another type of bamboo made boxes is used as packaging materials for gerbera.

Flower Transportation problem in Bangladesh without packaging:

Figure2: Flower transportation system in Bangladesh

The cut flowers in general are transported in a very traditional and destructive way both in the local market as well as transporting to the distant markets. Generally, rickshaw, van, shoulder load, night coach and truck were the important means of transportation used by different intermediaries.If the flowers could have packed in fibre board cartons of definite shape for particular flowers and could have transported in a truck having rack system, significant improvement in reducing the postharvest loss could have been achieved.

Improving packaging standard is vital to maintain flower qualityThe Ethiopian Horticulture Development Agency said packaging that can withstand the adverse conditions on the flower supply chain is vital in maintaining quality and fetching the prices the growers deserve. The director said the type of flower packaging boxes in Ethiopia do not meet the required packaging level of the international market. Some 50 percent of the total flower

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product the country export to foreign countries is losing the proper price due to packaging problems. Accordingly, he said the workshop organized jointly by the Agency and International Trade Centre (ITC) is aiming at enabling Ethiopian flower producers to implement best packaging standards to the development of the horticulture industry

Figure 3: Foreign flower packaging system.

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Standard flower packaging system can bring more export quality for Bangladesh flower industryFlowers are packed in bundles and normally each bundle is comprised of 50 flower sticks. Then those bundles are placed within sack for transportation that increases the post harvest loss. Corrugated paper based packaging materials can be used for export markets and public private partnership can be envisaged in this respect

Figure 4: Standard flower packaging

ensure a rigid double sheet of cardboard. Three up the outside corner, one on the inside bottom corner, and one more or less in the middle of the flap. The floricultural products should be packed in a manner that ensures their protection. Packaging materials, and especially the paper used inside the pack, should be new, clean and of a material that cannot cause any alteration, either external or internal, of the product. Newspaper should not be used in direct contact with the product.

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Exporting cut flowers in the world

Major markets

Figure 5: International flower market

Over 50% of Australia’s total flower exports are destined for markets in Japan and up to 30% sell to North America (mostly the US). Other important markets are the Netherlands(11%) and Germany (3%).Within the next 30 years, Asia will represent the largest consumer market in the world. There is potential to expand into new Asian markets with perhaps the most significant being China where a very small rise in per capita consumption will translate into large sales.Japan remains the largest single market for Australian-grown flowers, although recent years have seen increasing demand from the US for Australian flowers.The USA is a large consumer market, and imports over half of the total floricultural products sold. While the market remains dominated by traditional flowers, there is a strong demand for high-quality Australian filler flowers such as waxflower.The European Union (EU) is believed to consume over 50% of the world’s flowers and includes many countries with a relatively high per capita consumption of cut flowers.The UK is currently the second largest importer of flower products and up to one-half of all flower sales are through supermarkets and chain stores.

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Table: Name of flowers and main production areas in BangladeshName of flowers Production area

Tuberose Jessore, Satkhira, Bogra, Comilla, and Chittagong

Rose Gazipur, Savar, Jesshore, Dhaka, Satkhira.

Gladiolus Dhaka, Jesshore, Gazipur,

Chrysanthemum, Jipsophila, Carnation, Chinese, Aster

Saver, Gazipur

Dhalia Dhaka, Savar, Gazipur,BograMarigold, Jasmines Jessore, Narayanganj, Savar

Lily, Diamond, Grassflower Narshingdi

Table 1:Flower main production areas in Bangladesh

Important flower shops and nurseries in Dhaka:Name AddressChameli Katabon, Dhaka University Market, DhakaGolapBitan Savar Bus standsKarabi Shahbag, Dhaka

Madukari Shahbag, DhakaSunflower Shahbag, dhaka

Madhabi Shahbag, Dhaka

Chanchal Mirpur road, Dhaka

Table 2: Some flower shops and nurseries in Dhaka

Using suitable packaging for exports of floricultural products1

Over 20% of the flowers shipped by growers never reach the final consumer in the export market because they are lost or damaged during the various stages of the distribution chain. Losses can be reduced by ensuring more careful handling, better temperature regulation, attention to phytosanitary requirements and the use of suitable preservation agents. Such measures may be inadequate and

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even fruitless, however, if not combined with appropriate export packaging. Because flowers and plants are living and thus developing organisms, they have a limited life span. Suitable methods should therefore be adopted to ensure that the product's evolution is controlled throughout the shipping process. The choice of an export package, adapted to the product as well as to the distribution network and the market, is therefore important to export success. 

Flower export exceeds target

The market for flowers in South Asia’s Bangladesh has grown by nearly 10% every year. Cultivation is increasing along with local demand and the country’s flower export is also taking off, although additional investment remains desired. The country currently exports flowers and floral products to a large number of countries: India, Pakistan, Italy, Portugal, Saudi Arabia, the United States, South Korea, the Philippines, Singapore, Japan, Germany, Britain, Denmark and France.Flower export exceeds target Export of cut flower and foliage has exceeded the target by over 15.20 per cent as entrepreneurs found it to be an emerging industry of high potentials that widens the export basket, officials said. Export of flowers and floral products has seen an impressive growth at these months contributing to the GDP as the entrepreneurs are trying to tap a strong demand for the non-conventional product in global market, an Export Promotion Bureau EPB official told BSS. The country exported cut flowers and foliage worth US$ 16.58 million during July - November 2013-14 financial year, an amount which is 15.20 per cent more than that of the export target, according to EPB export status. Bangladesh exports flowers and floral products to India, Pakistan, Italy, Portugal, Saudi Arabia, the US, South Korea, the Philippines, Singapore, Japan, Germany, Britain, Denmark and France. Around 10,000 hectares of land are under flower cultivation in our country, Bangladesh Flower Growers and Exporters Association BFA President M Ahsanullah said adding that Jessore is the region which accounts for the maximum volume of flower cultivation. Tube marketing could boost the industry provided cold storage, air conditioned vehicles for flower transports and subsidy in air cargo freight charges were provided. There is no slab system in Biman for flowers and ornamental plants though it is available for vegetables. sometimes flowers are damaged before reaching destination as Biman often does not maintain its proper flight schedule, a BFA official said. Kenya, Israel, Zimbabwe, Ecuador and Uganda appeared as major flower exporting countries as the cut flower trade is a multibillion dollar world industry with the US, Germany, the Netherlands, the United Kingdom, Switzerland, Italy, France, and Japan being major world consumers.

Problems & Prospects of Flower in Bangladesh

Agriculture plays a key role in Bangladesh by contributing 24 percent to its exports, 32 percent to its GDP and employing more than 60 percent of its labor force. The dominance of agriculture was continue well into the 21st century as the nation fights against poverty and strives to raise standard of living of its people through sustained economic growth. With the increasing demand for flowers and ornamental plants, the floriculture industry had been gaining popularity among the reach farmers since the beginnings of 1983. But this was not sufficient enough to meet the market demand. Initially a good number of farmers of Jessore districts start to production of flowers and ornamental plants in commercial purpose. At present approximately 8500 farmers were directly involved in flower cultivation and 2500 to 3500 farmers in ornamental plants on commercial basis.

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Roughly 1,00000to 1, 50,000 people were directly and indirectly depended on in floriculture industry for their live hood.

Solutions for Flower Market Development:The initiative can take two sided approach; one for the local market and the other for connecting to the global market as both local and global opportunities exist for flowers from Bangladesh.

Area of Intervention

Local Market Global Market

Market Structure • Farmers’ Group, Associations, CBOs can be created to increase their bargaining capacity

• Farmers’ Marketing Group, Associations can be established with proper support

Infra & Logistics • Structured assembling facilities at the flower growing clusters can be developed• Cool Chain from field to market shall be developed• Specialized Storage Facilities shall be developed

• Specialized terminal flower market in Dhaka can be developed• Cool Chain from Field to Airport shall be developed• Adequate storage space at airport should be created

Financing Input credit, and export support for flower market development is required

Input credit, and export support for flower market development is required

Research & Technical

• Finding out level of post harvest loss• Skill development training on Post Harvest Management of flowers and ornamental plants is required for the farmers and traders as well

• Finding out international competitiveness of Bangladeshi flowers• Skill development training on Handling of flowers and ornamental plants is required for the relevant airport HR

Packaging Low cost packaging shall be developed

High quality packaging shall be developed

Promotion Producers’ group (CIGs/SFGs/FMGs) can initiate collective promotional schemes aiming at local markets and for import substitutions.

• Branding of Bangladeshi floricultural produces shall be aimed at. (Delta-Rose).• Government support can be allocated for securing International

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III. Supplementary Part

Conclusion:

According to the agriculture scientist Bangladesh has completely perfect weather and soil for cultivating flower. it has1000 hectors of land under flower cultivation. if production of flowers are increased then automatically our flower business will reach a better position ,so export of flower business spread in all over the world .Bangladesh can be a most probable successful country by their flower business. If we improve our packaging system of flower so it will be very easy to get the international export market and reducing the import of the flower outside of the Bangladesh .now a days , many countries are becoming very financially strength by their successful flower business’s it is very clear today, if Bangladesh follow the best flower business country and use their technology for all process of flower packaging so there is no doubt Bangladesh will be a best model for flower business in the world .

Recommendation

Find out the present condition, prospects and problems of flower marketing in Bangladesh.

Effect of good packaging system delivers expending the floral market and create more opportunity to earn foreign currency.

.Evaluate the current flower marketing systems in Bangladesh. find potentiality of flower marketing in Bangladesh. explore the constraints of flower marketing. find out the most important factor of flower marketing. suggest marketing strategies and recommendation to promote the marketing of flower.

.Compeering the most potential sector of flower packaging business and other business . . use the Knowledge and skills to develop the flower market area and to get the more

export opportunity of international market . Continuing opportunities to participate in the process

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References:

1. HANDLING OF CUT FLOWERS FOR EXPORT[online] Available from: http://ucanr.edu/datastoreFiles/234-1906.pdf[M.S. Reid, University of California, Davis, CA, 95616, U.S.A. msreid@ucdavis.edu] [Accessed date: 16 Feb 2014]

2. FLOWER MARKETING IN BANGLADESH [online] Available from: http://ajoydu.blogspot.com/2011/11/flower-marketing-in-bangladesh.html[Accessed date: Nov 26, 2011]

3. Jonas Zwitserlood   [2014] Bangladesh’s flower market shows signs of good health [online] 10 January 2014. Available from: http://www.florint.org/Newssingle.44.0.html?&tx_ttnews%5Btt_news%5D=932&cHash=4e7bf0c0c2 [Accessed date: 27 Feb 2014]

4. Functions of Packaging[online] Available from:http://www.europen-packaging.eu/sustainability/what-is-packaging.html [Accessed date: 1 Mar 2014]

5. Name of flowers and main production areas in Bangladesh [online] Jan 30, 2013. Available from: http://sohrab97.blogspot.com/p/flower.html[Accessed date: 2 Mar 2014]

6. Improving packaging standard is vital to maintain flower quality.[online] Available from: http://ethiopianflowerexport.com/agency-improving-packaging-standard-is-vital-to-maintain-flower-quality/ [Accessed date: 5th Oct 2010]

7. Flower export exceeds target[online] 2 Jan 2014. Available from: http://www.thefinancialexpress-bd.com/2014/01/02/11769 [Accessed date: 2 Mar 2014]

8. Bettina Gollnow [2002] Exporting cut flowers[online] Oct 21, 2002. Available from: http://www.dpi.nsw.gov.au/agriculture/horticulture/floriculture/industry/export [Accessed date: 28 Feb 2014]

9. Md. Reza Ahmed Khan, Assistant Chief, DAM [2013] Flower Market Development in Bangladesh[online] Date18 May, 2013.Available from http://www.researchgate.net/profile/Reza_Khan2/publication/237020112_Flower_Market_Development_in_Bangladesh/file/5046351af089f4a9c5.pdf[Access date: 18 May, 2013]

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10. LAP Lambert Academic Publishing [2012]Problems & Prospects of Flower Cultivation of Jessore District in BD [online] Mar 27, 2012. Available from: Problems & Prospects of Flower Cultivation of Jessore District in BD [access date: 7 Feb 2014]

11. Barry Marshall [2009] Flower Packing: The Importance of Good Packing[online] 22 may 2009. Available from: http://www.flowerexperts.com/flower_packing.asp. [Access date: 22 Feb 2014]

12. Packaging design: 50 inspirational examples[online][Flower Garden 32 of 50] Feb 24, 2014. Available from: http://www.creativebloq.com/packaging/inspirational-packaging-912837[Access date: 24 Feb 2014]

13. Valentine's Day 2012 [online] Available from: http://www.theatlantic.com/infocus/2012/02/valentines-day-2012/100245/ [Access date: 28 Feb 2014] 

14. Packaging Guidelines for Flowers and Plants (FedEx Express® services.[online] Available from: http://images.fedex.com/us/services/pdf/packaging/Flowers_fxcom.pdf

15. Available from: http://www.bizstudyportal.com/content/b/i/z/S/t/u/D/y/MISC/BCOM/4/45MISC2012BCOM0925182351.pdf

16. Packaging and packaging waste [online] Available from: http://www.netregs.org.uk/library_of_topics/materials__equipment/packaging/what_is_packaging.aspx [Access date: 17,Mar,2013]

Bibliography:

[1] www.amardesh amargram.com

[2 ] www.amazon .com

[3] http://www.wikipedia.org

[4] http://www.google. com

[5] A Text Book of international Marketing

[6] eBook ,pdf

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Appendix

Infrastructure - the basic systems and services, such as transport and power supplies, that a country or organization uses in order to work effectively

Logistics- the careful organization of a complicated activity so that it happens in a successful and effective way

Promotion -when something is encouraged to increase or develop

Prospects-the possibility that something good might happen in the future

export exceeds - to be greater than a number or amount, or to go past an allowed limit.

Floral- made of flowers, or decorated with pictures of flowers.

Solutions- Probable answer of any problem.

Storage facility- the putting and keeping of things in a special place for use in the future.

Protection- Save something from any disturbance Convenience- - suitable for your purposes and needs and causing the least difficulty.

Handling- the way that some one deals with a situation or personWaste Reduction- Reduce unnecessary or wrong use of money, substances, time, energy, abilities, etc.Distinguishable- a distinguishing mark or feature is one that makes someone or something different from similar people or things

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