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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.
  • 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