International Trade Example
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International Trade Example






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International Trade Example International Trade Example Presentation Transcript

  • Barter Proposal Helping Your Brand To Break Into New Markets Without Needing To Spend Any Additional Cash
    • Summary of Proposal
    • Ormita can offer you a range of advertising and public relations services in several of key markets such as Canada, China, Hungary, India, Mexico, Poland, Turkey, UK & the USA
    • Advertising is offered to you on a pure barter basis
    • You can benefit from:
      • Increased brand exposure
      • Reduced capital expenditure on advertising and public relations
      • Cash paying customers - referred by happy recipients of your bartered offerings
  • Types of Advertising Available to Your Business on a Barter Basis
    • Television
    • Sponsorship of Events
    • Radio
    • Public Relations Providers
    • Newspapers
    • Magazines
    • Internet Websites
    • Billboards & Indoor Media
    • A global database of more than 93,800 media outlets
    • Providing strategic positioning against your competitors
    • Workable business and brand building PR strategies
    • Highly qualified, talented and experienced PR specialists
    • Every proposal is tailor made to meet your unique needs
    • Excellent execution skills
    • Timely follow-up and post project evaluation
    • Seamless multi-lingual and global delivery
    • All of our media is available on a barter basis
    Our Media Strengths
    • We are involved in every phase of normal PR activity
    • Global media delivery
    • Strategizing, planning, implementation and measurement
    • Intense stakeholder mapping
    • Three-month reviews
    • We help in other stakeholder relationship management
    • Regular Media monitoring reports
    • Competitor Tracking
    How We Manage Stakeholder Perceptions
    • Regional Media Availability
    • 27,187 Billboards in 9 countries
    • More than 3,122 urinals in 4 countries
    • 2,538 video screens in 7 countries
    • 8,971 point of sale advertising sites in 5 countries
    • Regional magazines and newspapers
    • Internet websites for various demographics
  • Some of our Larger Radio Brands
  • Some of our Larger TV Brands
    • Some of Our Larger Publications
    • Basics of the Barter Process
    • We can work with you to select a list of media suitable for your target market.
    • We find the cash equivalent rates for your required media.
    • You confirm your booking and, instead of paying cash , offer the same equivalent cash value of your own product or service.
    • No direct barter takes place . The media you are buying from may not be the same people who will take your product or service in return.
    • Ormita will “onward barter” your product/service outside your local market and does not resell your product or service for cash.
    • Basics of the Barter Process Your Business You wish to acquire more cash paying customers from these three target countries
    • Basics of the Barter Process Your Business You have two options Pay cash to buy advertising and P.R . Doing this you run the risk of having no customers purchase from you and loosing money. Barter / Swap for advertising and P.R. This way you are guaranteed to cover your advertising cost and new customers will be “trying” your product; thereby creating more referrals.
    • Basics of the Barter Process
    • Basics of the Barter Process Your Business Ormita Customer A Ormita Customer B You get media from Ormita on barter You give Ormita your product or service in return Ormita will barter your product or service on
  • Ormita Will Barter Your Product or Service “Off Market”
    • Ormita will never devalue your current cash market
    • Ormita will only offer your service for barter into markets where it does not currently exist and/or where there is low brand awareness
    • Customers who acquire your product or service through barter are more likely to give positive feedback
    • The cost for you to service an additional customer is nominal versus what you gain in advertising in return
  • Basics of the Barter Process
    • You can buy first and sell later
    • Every time you buy your account is debited for the value of the product or service you are purchasing
    • Every time you sell your account is credited
    • Ormita will provide you with an interest-free line of credit
    • We can custom-make a P.R. Campaign to meet your needs with no obligation to you.
    • With thousands of international media assets, we can create a demographically targeted campaign that will attract your target audience based on any, or all, of these factors:
    • age group
    • geographic location
    • income / assets
    • gender / sexual orientation
    • occupation
    • marital status
    • hobbies / interests / sporting and social activities
    • professional occupation
    • industry associations
    • If you don’t wish to go ahead – you are not obligated to do the barter deal or pay any other costs.
    We Can Tailor A Package To Meet Your Needs With No Obligation To You
  • Ormita Members Are New Revenue
    • Ormita customers do not replace existing cash customers
    • Ormita brings new you only new customers
    • These customers generate new revenue
    • Your businesses uses this revenue to pay for:
    • - advertising
    • - existing fixed costs
    • - brand development
    • - business expansion
    • - new acquisitions
  • Some of Our Better-Known Non-Media Customers
  • Some Customers You May Recognise
  • Some Customers You May Recognise
    • Some Little-Known Statistics
    • Approximately 70% of all Fortune 500 companies engage in barter [1] .
    • Eight out of ten corporations engage in barter [2] .
    • Approximately 65% of all New York Stock Exchange-listed companies engage in barter trade [3] .
    • The SWISS Wir alone does 2.5 billion Swiss Francs (over $2 billion US dollars) and boasts 80,000 members nationally [4] .
    • The WIR also enjoys a membership base of nearly 20% of all Swiss businesses in a country of only 7 million people [5] .
    • At its peak in 2001-2002, an estimated 6 to 10 million Argentines participated in the Red Global de Trueque barter system, including doctors, manufacturers, and even railways, turning over approximately 6 billion US dollars per annum in transactions and accounted for approximately 15% of Argentina’s mean personal income [6] .
    • Approximately 400,000 businesses engage in formalised barter in the United States [7] .
    • In North America 80,000 small businesses used barter for the first time in 2007 and over 800,000 American companies bartered at least once. [8]
    • Barter accounted for 31% of export operations from the Ukraine in last year with highly liquid goods accounting for between 60 and 70% of all goods exported by barter [9] .
    • Companies that actively barter can do as much as 5-10% of their business annually through trades. [10]
    • [1] Schmidgall, R.S., Damitio, J.W. (1999)., Bartering activities of the Fortune 500 and hospitality lodging firms., Michigan State University, International Journal of Hospitality Management
    • [2] American Association of Advertising Agencies. (2003).
    • [3] (2004)., Annual Report, National Association of Trade Exchanges
    • [4] Lietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & Scarcity. Galley Edition.
    • [5] Valentini, E. (2003)., Switzerland’s WIR System and Barter Worldwide, International Trade Currency System
    • [6] Stodder, J. (2007).,Residual Barter Networks and Macro-Economic Stability. Rensselaer Polytechnic Institute at Hartford, Hartford CT.
    • [7] (2004)., Fact Sheet, International Reciprocal Trade Association.
    • [8] Frisk, S., (2007). The American Economics Association
    • [9] Kuchma, L., (1998). Press Release. Embassy of the Ukraine to the United States of America. (14 Oct).
    • [10] Schact, J. (2004)., "The Business of Bartering", Illinois Meetings & Events (Fall Edition).
    • Some Examples of Recent Cross-Border Trades
    • Dec 2010 – Jan 2011
    • Kairali Resorts ( ) Took: $43,198 USD of advertising Repays in: Hotel rooms, entertainment Hidden Benefits: Rooms sold to new customers only who may come back and buy with cash.
    • Hertz Rentals ( ) Took: $274,150 USD of advertising Repays in: End-of-life ex-rental cars Hidden Benefits: Rental cards disposed of without warehousing, auction and other costs and at a higher margin than with outright cash sale.
    • Nokia Electronics ( ) Took: $89,715 USD of printing and packaging Repays in: Incorrectly packaged models / overstock models Hidden Benefits: Models sold outside of their market only; thereby creating a new market for them who may buy with cash.
    • Some Examples of Recent Cross-Border Trades (cont…)
    • Dec 2010 – Jan 2011
    • 4. BlueScope Steel ( ) Took: $25,000 AUD of hotel vouchers Repays in: Surplus steel items Hidden Benefit: Surplus only allowed to be sold to non-BlueScope customers, thereby taking customers away from their competitors.
    • Galena Cellars Winery ( ) Took: $35,000 USD of expo space Repays in: Wine Hidden Benefit: Sold offshore to new markets only which had never experienced Galena Wines and for higher than local market value.
    • M.A.C. Cosmetics ( ) Took: €68,175 of advertising Repays in: Remnants / end-of-stock-lots of product Hidden Benefit: Sold offshore to new markets only and for full retail value.