Developingan Export Strategy Marketing Plan (1)
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  • You will be inline with management goals and expectations.training PeopleBuy-inLack of clarity of the goalsLack of resourcesChanging environmentTimeline / budget
  • To help identity which foreign markets are suitable for your products and what potential product modifications will be required.
  • What role does each of these have in the competitive nature of your product.To help identity which foreign markets are suitable and determine the marketing approach.
  • This will help you identify your foreign market entry method and ideal customers.
  • What does your company do and which of these functions are outsourced?To identify what functions will later be done by your company or your foreign partner.
  • A common analysis is the Porter Five Forces model, discussed In Michael Porter's book Competitive Strategy. It presents an analytical framework for understanding industries and competitors particularly by describing five competitive forces that determine industry attractiveness:People processes & Technology http://en.wikipedia.org/wiki/Porter_five_forces_analysis
  • International expansion is often exciting. Even minor successes get the attention of staff and company stakeholders (owners, shareholders). But its very nature can also lure a company to keep investing and expanding without the necessary profit returns. The push and excitement to go global may also blind the company, including management, to the reality that the investment may become too great and retrenchment is necessary. Thus a company's international business plan must address indicators that eventually force the issue of addressing further investing in the global expansion. These may be on a market by market basis, or the whole of the international expansion plan.

Developingan Export Strategy Marketing Plan (1) Presentation Transcript

  • 1. Developing an Export Strategy & Marketing Plan
    International Business Certificate Program
  • 2. Topics to be Discussed
    • How to Succeed in Today’s Global Marketplace
    • 3. Importance of a Marketing Plan
    • 4. Market Research and Resources
    • 5. Choosing a Product to Export
  • Topics to be Discussed 2
    Choosing Target Countries
    Export Distribution Plan
    Export Product Pricing Plan
    Advertising and Promotion Plan
    After Sales and Support Plan
  • 6. Why Export?
    To Set-up Additional markets
    To find sales opportunities not found here
    To create sales stability in times of U.S. slumps
    Exposure to new ideas and concepts
    It’s fun, challenging and full of learning
  • 7. Today’s Global Marketplace
    Global sourcing is a reality and its here to stay
    Instant access to information via the Internet
    Worldwide demand for more speed & efficiency, better quality & service
    Trend of moving from manufacturing to more service oriented companies in U.S.
    Information, technology, management and finance are main U.S. strengths
  • 8. Today’s Global Marketplace 2
    Fiercely competitive world
    Must differentiate your product
    High quality
    High or new technology
    New designs, more creativity
    Quick & Efficient Service
    Need for great branding, attractive products, packaging and promotion
  • 9. Before Going Global
    Seven Questions to Answer before Developing an International Strategy
    1. Do you have management commitment to expand int’l?
    You will have:
    Budget
    Personnel
    Time commitments
  • 10. Before Going Global
    2. Who are the end-users and why do they need your product?
    Identity the role the product plays for each consumer.
  • 11. Before Going Global
    3. What is the basis for your company’s competitive advantage?
    price, features, quality, customer service, brand and product Image, technology.
  • 12. Before Going Global
    4. What is the most effective distribution channel for your product?
    Do you sell to:
    agents
    distributors
    direct to end-users
  • 13. Before Going Global
    5. What role does your company play in the value chain? What are the value-added activities?
    R&D
    Purchasing
    HR management
    Technology
    • Manufacturing
    • 14. Marketing and sales
    • 15. Customer service
  • Before Going Global
    6. Did you conduct an analysis of your industry and its profitability structure?
    • Bargaining power of buyers - leverage
    • 16. Threat of substitute products or services – alternatives
    • 17. Bargaining power of suppliers - leverage
    • 18. Threat of new entrants - entry barriers
    • 19. Rivalry among existing firms – competition
  • Before Going Global
    7. When and how will you know if your international expansion must either be stopped or scaled back?
    How much investment in time and resources (cash) will be allowed before the company acknowledges it cannot continue its international strategy?
  • 20. Qualities of a Successful Exporter
    Long term thinking
    Patient
    Flexible
    Culturally sensitive
    Ability to deal with both detail and broad thinking and planning
    Good communicator with people skills
  • 21. Export Players
    Exporters
    Manufacturers
    Export Management Companies (EMC)
    Commission Reps
    Freight forwarders/Customs Brokers
    Shipping lines/Airlines/Truck/Rail
    Banks
    Foreign Buyers
    Distributors
    Reps
    Retailers/Chain stores
  • 22. The Export Process for Success
    1. Focus on a product and be the best
    2. Know your U.S. buying and selling environment and competitors
    3. Know your foreign buyer environment and needs
    4. Manage well all processes between factory and partners and foreign buyers
    5. Its all about relationships. Make them solid, make them last
  • 23. Importance of market planning
    Global market is a big place
    We have limited resources
    Must focus efforts on best countries and foreign partners for our products
    Need to budget money and time for the most bang for the buck
    Need to fit into overall business plan
  • 24. International Marketing Plan Elements
    Written strategy for 2+ years covering:
    Products
    Target countries and sub markets
    Distribution channels
    Pricing
    Promotion
    Service
    Budget
    Travel
    Time goals
    (See sample export marketing plans and template)
  • 25. International Market Research Tools
    Export assistance agencies
    Internet
    Colleges, universities & libraries
    Trade & Industry associations
    Trade shows
    Information from other companies
    Foreign consulates & embassies
  • 26. Choosing a Product to Export
    Will your product sell abroad?
    Are product modifications required?
    Size/color/formulation/design
    Labels & packaging
    Instructions
    Language
    Voltage
  • 27. Selecting Your Target Countries
    Where is the demand highest?
    Where is there less competition?
    Where do you have an advantage because of language of culture
    Where do you already have contacts?
    Analysis of competition by country
  • 28. Researching your markets
    Understand your product classification numbers- Harmonized Tariff Schedule (HTS) and SIC codes
    Use Trade agency websites
    CITD
    U.S. Department of Commerce
    U.S. Customs (for HTS codes)
    Selecting Your Target Countries
  • 29. Selecting Your Target Countries
    CITD.org Website
    Best Market Reports (BMR’s)
    International Trade Database
    Export and import trade statistics
    U.S. Department of Commerce Country Commercial Guides
  • 30. Making an Export Distribution Plan
    Decide on mix of distribution channels:
    Distributors
    Commission representatives
    Chain stores
    Direct to end user
  • 31. Finding Buyers/Distributors
    Government agencies
    Internet
    Referrals
    Trade shows
    Trips
  • 32. Export Pricing Plan
    Prices must be competitive with local, foreign and U.S. companies
    Must be competitive with prices seen on internet, even with U.S. distributors of your own product
    Prices should be affordable to target market buyers
    Must analyze total cost to end user, with duties, sales VAT tax, distribution margins, etc.
  • 33. Plan for Advertising and Promotion
    Begins with plan of how to find & reach potential buyers & distributors
    Direct mail and email
    Website and links (don’t forget foreign language translation)
    Use of media: magazines, newspaper, radio & TV
    Trade shows in USA and abroad
    Trade associations and directories
  • 34. After Sales and Support Plan
    There will always be after sales service and warranty issues
    Normal U.S. policies are usually not enough.
    Need to cover:
    Who takes care of service? Here or there?
    Who pays for service and freight if returned?
    Who pays for training?
  • 35. Marketing Budget
    Make a realistic budget, including:
    People & salaries
    Promotion, materials & advertising
    Communication
    Trips
    Trade shows
  • 36. Good Communication is the Key
    Frequent commutation with buyer & partners minimizes misunderstandings
    Understanding of foreign requirements and cultural differences very important. If they ask for it, they probably need it
    Provide responses and solutions quickly
    Travel and meeting clients and partners is essential and will triple your sales!
  • 37. Travel is Key
    Make travel plan budget
    Establish travel procedures S.O.P
    Visit your customers at least once/Yr.
    Combine with trade shows
    Don’t forget U.S. shows
    Take samples & literature
    Learn culture and honor clients
  • 38. Important to Revise Plan Often
    This is a quickly changing world
    Learn by your mistakes and quickly adapt to new conditions and trends
    KEY: Learn to listen to your buyers & let the market tell you what it wants
  • 39. Conclusion
    There is a large international sales and profit potential
    To succeed, we don’t have to be the richest or smartest, but we must be ready to commit to the export process, putting in the time and effort required over the long term.
  • 40. Export Assistance Resources
    Center for International Trade Development (CITD)
    U.S. Department of Commerce (DOC)
    Export Import Bank (EXIM)
    U.S. & California Dept of Agriculture
    Small Business Administration (SBA)
  • 41. Center For International Trade Development
    California State funded
    Fourteen offices in California
    Assistance with export and import
    Workshops
    Free consultations
    Trips and events
  • 42. Robert Corona
    Director
    Riverside Community College District
    14745 Riverside Drive
    Riverside, CA 92518
    (951) 571-6443, Fax: 951-653-1051
    Robert.corona@rcc.edu, www.citd.org
    http://www.linkedin.com/in/rcorona