1.
Product
Cairo, March 2018
Understand your product

2.
Overview
• Product definition
• HS Classification and National
Tariff Line Level Codes
• World market trends
Objectives
• To understand the possible
differentiation factors of your
product
• Be able to identify the HS code
of a product
• To determine the criteria to
segment a market
Product Identification

3.
Which product are you exporting?
• Product type and characteristics
• Define the main features of your product

4.
Product description
Level of detail is important.
• The more focused, the more useful it is for your clients, but the less flexible it
is for the market analyst
– Seafood vs. shrimp vs. frozen shrimp vs. prepared foods containing shrimp
In the description: what the product is used for?
• It might change the market entirely
– Hazelnuts can be fresh or dried, shelled or peeled
– Glass: industrial vs. household uses
Critical to be as specific as possible when defining the
product range that will be covered in the profile

5.
Features of our product?
AUGMENTED
PRODUCT
ACTUAL PRODUCT
CORE
PRODUCT

6.
The core product
The problem solving services or core function benefits that
consumers are really buying when they obtain a product
A T-shirt: a piece of clothing to cover the upper-body and protect against
the elements

7.
The core product - Why does it matter?
It is necessary to understand the core product benefit in order
to:
– Understand what customer/market requires
– Identify the main competitors
– Forecast and understand potential future competitors
– Guard against marketing myopia

8.
The actual product
The tangible factors – the physical features
• physical attributes that the consumer can see, touch, want
and need: the actual product that the customer buys
• The specific offering aimed at the market
• Tangible features associated with the product. The elements
that combine to deliver core products benefits.
• The 5 elements that are blended to make up the actual
product are: design, style, features, quality and packaging

9.
The actual product - Why does it matter?
• This is the way firms have traditionally differentiated their
product from rivals
• Unless products are differentiated then firm can only
compete by offering the lowest price good
• Differentiation  premium pricing
 builds customer loyalty
Segmentation
Targeting
Positioning

10.
The augmented product
The additional bundle of benefits
purchased with the actual product.
Additional consumer services or benefits
Examples:
• Maintenance/guarantee/after sales services
• Certification/quality control (in foreign markets)
• Characteristic of the production process that
carry special value: Organic ingredients,
environment-friendly, child labour-free, etc.
• Transport and insurance
• Spare parts

11.
The augmented product - Why does it matter?
• It offers psychological benefits that enhance the value of
the core and actual product
• Augmentation enhances the attractiveness of the product
and is a source of competitive advantage
• More and more competition takes place at the product
augmentation level
• Companies wrap additional benefits around their product in
order to differentiate themselves from rivals
• By augmenting the product firms are adding value to the
product

12.
AUGMENTED
PRODUCT
Additional
Services
Shipping
and
Handling
Warranty
Post-sale
service
“Ethical
Consumption”
Brand
Name
Quality
Packaging
Style
ACTUAL
PRODUCT
Efficiency
Versatility
CORE
PRODUCT
Practical exercise: define the product

13.
Define your product:
• Core product:
– Define the core function or your product
• Actual product:
– Describe the tangible characteristics of your product
• Augmented product:
– Define the psychological benefits that enhance (or could enhance)
the value of the core and actual product
Practical exercise (A.1): define your product

14.
Identify your product code
The HS is an internationally recognized hierarchical product classification for trading
purposes overseen by the World Customs Organization (WCO).
More and
more
detailed

15.
Identify your product code
National Tariff Lines (NTL) codes are more detailed than the HS
 The NTL classification is not standardised internationally.
More and
more
detailed

16.
Identify your product code
08.04.50.00
…, mangoes and
mangosteens, fresh or dried
European Union

17.
Identify your product code
Japan
080450011
…, mangoes and
mangosteens: Fresh:
Mangoes
080450090
…, mangoes and
mangosteens: Dried
080450019
…, mangoes and
mangosteens: Fresh:
Other

18.
Identify your product code
United States
Sub-heading
080450
Guavas,
Mangoes,
Mangosteems
To identify your NTL product code you
need to know to which country you are
exporting.
0804504055
…, mangoes and
mangosteens, fresh,
if entered during the
period from
September 1 […]
May 31, inclusive
0804506055
…, mangoes and
mangosteens, fresh,
if entered during the
period from June 1 to
August 31 […] inclusive
0804508010
Mangoes, dried
etc.

19.
Knowing your HS product code will help you:
Obtain trade statistics on potential markets for your
product (Trade Map)
Determine tariff rates and the non-tariff measures applied
to your product (Market Access Map)
Identify voluntary norms and retailers’ codes of conduct
applicable to your product (Sustainability Map)
Identify your product code

20.
Identify your product code
HS revisions
HS1996 HS2002 HS2007 HS2012
Trade indicators
in Trade Map
For time series, the latest HS revision reported
by the country for a given year is used.
2007 2012
03.03.71 Frozen
Sardines
03.03.53 Frozen
Sardines
HS2017

21.
Quiz: Can you identify the following HS codes?
What is the Harmonized System code of
“Oranges”?
What is the NTL code for “Fresh oranges”?
In Spain?
In Egypt?
 Time allowed: 2 minutes

22.
1.Provide the harmonised system (HS) code for both your specific product
and the group it belongs to.
Note: To avoid ambiguities throughout your analysis, it is important to ensure that
the description and corresponding trade classification, or tariff code is correct.
6-digit HS: Time allowed: 3 minutes
2.Provide the national tariff line (NTL) code of your product for Egypt
(indicate if several):
NTL code: Time allowed: 1 minute
3.Is there any interesting information provided in the description of the NTL
lines of Egypt?
Practical exercise (A.1): identify the
HS code of your product

23.
(A.2) Assess the world production
Which countries are the world largest producers?
Which countries are the world largest consumers?
Source: Food World Organisation (FAO) – www.fao.org
(A.3) Assess the production capacity of Egypt
Varieties produced and exported by Egypt?
Seasonality of production and exports in Egypt?
Where the product is cultivated, transformed, shipped in Egypt?
What is the product used for in Egypt (example: fresh oranges, dried
orange, oranges juices, frozen orange juice, essential oils of orange ...
etc)?
How many companies in Egypt are working in this sector, how many are
currently exporting?
Practical exercise : optional

24.
Let’s recap…
By the end of this section you should have a good understanding of:
• What are the characteristics of your product
• What is the HS code of your product and NTL code(s) in
Egypt