A case study where we research the opening new markets abroad through tradeshows.

1. Opening new markets abroad through tradeshows
ACME Tool Co. Case Study
Carina Balder
Vivian Schröder
Hugo Perverie
Eder Gonzalez
BITS (SoSe 2016)

2. 1. Background, Problem & Solution
2. Objectives & reasons for exhibiting
3. Exhibition locations
4. Budget Distribution
5. Budget Distribution per trade show
6. Justification of location choice
7. Requests (RFI, RFP, RFQ)
8. Marketing
9. The stand
10.Stand construction/design
a. How should it look like
b. Type of Stand & Location
c. Areas in stands
CONTENT
2

3. BACKGROUND, PROBLEM & SOLUTION
Background
• 70- 80% of revenues coming from American
defense contractors.
• 20-30% of revenues coming from aerospace
manufacturers‘ aircraft divisions (namely the
Boeing Company).
Problem
• National spending on military contracts may
get reduced dramatically if a democrat is
elected President of the United States.
Solution
• Start selling to commercial airlines
• Enter new markets
3

4. Objectives
Main objectives:
• Diversify client base
• Increase number of clients that are aerospace
manufacturers for commercial airlines
• Discover new markets (Western Europe &
United Arab Emirates)
Other objectives:
• Meet competitors
• Increase sales volume
• Presentation of (new) products
• New cooperation partners
• Increase company awareness
Reasons for exhibiting
• Great communication & network platform to
increase and diversify client base
• Great sales platform to increase sales volume
• Hands- on experience
• Open up and get to know the Western European
and United Arab Emirates Market markets
• Promote company´s image and increase awareness
(face-to-face)
• Better knowledge of the market (current & future
trends)
• Better knowledge of (potential) customer needs
OBJECTIVES & REASONS FOR EXHIBITING
4

5. BUDGET DISTRIBUTION
• A budget of 2.4 million USD was given to distribute among our
selected trade shows.
• Therefore, in the following tables you will be able to look 1st in the
budget distribution according to the most important aspects an
exhibitor should take into consideration such as (Stand Rental, Stand
Construction, Accommodation, Travel Costs, Other Costs and Leisure).
• Furthermore, within the 2nd table we were able to distribute each
budget into the selected tradeshows.
• This aspects were taken from AUMA’s official publication on
successful participation in trade shows.
5

6. $496,800.00
$739,200.00
$391,200.00
$302,400.00
$2,448.00
$160,800.00
$64,800.00
BUDGET 2.4 Million USD
DESCRIPTION %
Stand rental including additional charges 20.7%
Stand construction, transport, cleaning,
security
30.8%
Staff 16.3%
Accommodation 12.6%
Travel costs 10.2%
Other costs (advertising, hospitality) 6.7%
Shopping, leisure, Entertainment 2.7%
TOTAL BUDGET 100%
BUDGET DISTRIBUTION
6

7. Stand
Construction
Stand Rental Staff Accomodation Travel Costs Other Shopping Total Cost
PARIS $410,219.53 $275,699.49 $217,096.70 $167,817.08 $135,851.92 $89,236.07 $35,960.80 $1,331,881.60
ILA $264,858.00 $178,005.21 $140,168.36 $108,351.00 $87,712.71 $57,615.21 $23,218.07 $859,928.56
EBACE $24,756.64 $16,638.39 $13,101.73 $10,127.72 $8,198.63 $5,385.37 $2,170.22 $80,378.70
Friedrichshafen $19,776.84 $13,291.58 $10,466.32 $8,090.53 $6,549.47 $4,302.11 $1,733.68 $64,210.52
MEEBA $19,588.99 $13,165.33 $10,366.90 $8,013.68 $6,487.26 $4,261.24 $1,717.22 $63,600.62
TOTAL $739,200.00 $496,800.00 $391,200.00 $302,400.00 $2,448.00 $160,800.00 $648.00 $2,400,000.00
BUDGET DISTRIBUTION PER TRADE SHOW
7Please refer to appendix 1 for detailed information.

8. EXHIBITION LOCATIONS
8

9. • After distributing the budget and taking into account other aspects
such as the number of visitors, cost, type of trade shows, the m2
needed for each stand as well as other factors. We could rate them in
order of importance. It is important to know that all this was made up
using the total amount of the budget initially given (2.4M USD).
JUSTIFICATION OF LOCATION CHOICES
9

10. Trade Fair Type of show Location No. of Visitors
Cost of m2
(USD)*
Including Local VAT
m2
Needed
Total
(Incl. all Cost)
*USD
Exhibitors Exhibition Year
Exhibitors' profile
(# of Exhibitors of
different countries)
A+ Paris, France 351,584 $1,053.44 262 $1,331,881.60 2303 2017 48
A+ Berlin, Germany 227,000 $776.22 229 $859,928.56 1204 2018 38
B Friedrichshafen, Germany 33,900 $108.27 60 $64,210.52 606 2017 & 2018 38
A Geneva, Switzerland 12,743 $475.01 20 $80,378.70 478 2017 & 2018 39
A Dubai, UAE 8,314 $414.33 32 $63,600.62 422 2018 48
$2,400,000.00
JUSTIFICATION OF LOCATION CHOICES
10

11. THE STAND
Individual Stand
"Taking part individually and hosting one‘s own stand offers the best chances for success.“
• Taking into consideration our past experiences in trade fairs, we have decided
that there is no need to cooperate/share with another trade fair team in the
stand.
• However it would be a new niche, they don’t need to be supported.
• Furthermore, the budget also allows an own stand
11

12. HOW SHOULD IT LOOK LIKE
“A trade fair stand is a company‘s calling card.“
• A stand at a trade fair represents a company’s calling card, for which reason
the design and dimensions should emulate a company’s market standing and
the exhibited products.
• The stand should be under perfect technical condition and also match to the
standards of the market
• It should be in focus to present the exhibits customer-friendly. The stand
especially, should appeal to a customers senses.
• Regarding the aircraft industry it is advisable to present an innovative and
modern stand.
12

13. TYPE OF STAND & LOCATION
"Different types of stands result from the position to the neighboring stands or how they
open out to the aisles.“
Recommended for ACME Tool Co.
• Island stand
The advantage of an island stand is that it is surrounded by aisles on all sides and
the customer can enter the stand from all sides. Furthermore, an island stand has a
high impact and is very impressive.
Depending on season and offered stand construction:
• Outdoor stand
The advantage of an outdoor stand is that very large products can be presented.
Nonetheless a roofed meeting area should be considered.
13

14. AREAS IN STAND
The stand for ACME Tool Co. should contain the following three areas.
Presentation area
The presentation area includes
the entire space required for
displaying exhibits, information
boards, videos, presentations and
activities.
Meeting area
A meeting area should be implemented
in order to have the possibility to held
meetings with potential and existing
business partners or customers.
Therefore arrangements for a useful
area for consultations should be made.
Optionally a separate room for
meetings.
In order to enhance the communication
concept the company could use a bar or
an hospitality area.
Ancillary area
This area should be used as a
kitchen or storage area for
brochures, etc. Furthermore it
can serve as a technical area a
staff area and an office. The
staff on stand should have
enough space in this area in
order to have appropriate
breaks and storage area for
their personal valuables
14

15. • Personnel requirements and selection (depending on the size of stand)
• Rule of thumb : 1 staff/5 m²
• Do not forget interprets/export advisers in case of language problems
15
STAND PERSONNEL
CEO – Managing
director
Supervisor + Tech. employee + Sales Hostesses – Info - Catering

16. • Motivation and Training
16
STAND PERSONNEL
• The range of products and services
• Prices and sales terms
• Competitors and their products
• A product’s target audience
• The type of visitors at the fair important
customers and visitors
• How to collect visitor data
• The rules of the stand and a duty roster
• The importance of the trade fair for the
industry
• The trade fair venue and the grounds
• How to attract a visitor’s attention
• How and when to approach a visitor (opening
lines)
• How to find out a visitor’s name and address
and to store this information
• Basic attitude and behavior towards the
general public at fairs
What we want our staff to master in
order to enhance our performance

17. 17
STAND PERSONNEL
• Professional appearance and conversation
• Timing
• Introduction
• Discussion, arguments, listening
• Details recorded
• Follow-up meeting
What the staff should take
care of during our event

18. 18
STAND OPERATIONS
• Rules of the stand
o Roles, atmosphere, time table…
• Hospitality
o Sustainability, offerings, tableware…
• Data collection
o Pre-printed forms, digitalization, ordering…
• Cleaning and security
o Pre-cleaning, lockers, maintenance, post-cleaning…
• Information on trade fairs and market
o Catalogue, brochures, survey answers…
• End-Of-Fair activities on the stand
o Team feedback, written report, dismantling…

19. • RFI: After having clarified locations, budget, goals, stand size and preferable design ACME
Tools & Co. has send a RFI to different suppliers of exhibition stand constructions in order
to gather knowledge about their experiences, capabilities and availabilities.
• RFQ: ACME Tools & Co has asked five different suppliers (see page # 20) to send a RFQ including
an accurate price based on the supplier briefing (see information about budget, stand &
stand construction).
• RFP: ACME Tools & Co has asked five different suppliers to send a RFP including a fixed
price and a picture of stand design based on the supplier briefing.
REQUESTS
19

20. SUPPLIERS
20
COMPANY LOCATION SERVICES COUNTRIES WHERE IT WORKS
Formundraum GmbH Messebau Cologne & Frankfurt Stand Design Stand Rental Stand Construction
Stand Set Up Designer Stand
Austria Belgium Canada Denmark France Germany Italy Netherlands Qatar
Russia Saudi Arabia Spain Switzerland United Arab Emirates United
Kingdom United States
Triumfo Frankfurt Stand Design Stand Construction Stand Set
Up Designer Stand Modular Stand
Austria Belgium China Czech Republic Denmark Finland France Germany
Greece India Ireland Japan Kazakhstan Netherlands Norway Poland
Romania Russia Spain Sweden Switzerland Turkey Ukraine United Arab
Emirates United Kingdom United States
becama GmbH Berlin Stand Design Stand Construction Stand Set
Up Designer Stand Modular Stand
Austria Belgium Cyprus Czech Republic Denmark Finland France Germany
Greece Italy Liechtenstein Luxembourg Malta Monaco Netherlands Norway
Poland Portugal Slovakia Spain Sweden Switzerland Turkey United
Kingdom Vatican
Alpha Medien UG Meerbusch Stand Design Stand Rental Stand Construction
Designer Stand
Austria Belgium Denmark France Germany Luxembourg Netherlands
Switzerland United Kingdom
mavonorm Lena Debosz Poland Stand Design Stand Rental Stand Construction
Stand Set Up
Belgium Czech Republic France Germany Netherlands Norway Poland
Slovakia Sweden
“FormundRaum“ was chosen as the exhibition
stand construction supplier, because of it’s great
offer of services, their worldwide experience and
global presence and recommendations of a
business contact.

21. MARKETING
Marketing via trade fair organizers
• Advertising
• Flags
• Hall signs
• Towers
• Floor
• Carpet
• etc.
• Sponsoring
• Products
• Services
• etc.
• Branding
• Maps
• Tickets
• Busses
• etc.
• Promotion
• Walking acts
• etc.
• Others
• Website
• Catalogue
Own marketing
• Visitor invitations
• E-Mail
• Letter
• Brochures
• Free admission vouchers
• Free gifts/ raffles at the stand
• Entertainment on the stand
• Advertising in aerospace magazines/
websites
In order to exhibit successfully, high visitor attention on the stand is necessary.
21

22. • http://www.expodatabase.de/
• http://www.auma.de/
• http://www.auma.de/en/DownloadsPublications/PublicationDownloads/Successf
ulParticipationInTradeFairs.pdf
• http://www.ila-
berlin.de/ila2016/aussteller/downloads/5.%20Preise%20und%20Geb%C3%BChre
n%20ILA%202016.pdf
• http://www.mebaa.aero/exhibit/exhibiting-costs
• http://www.aero-expo.com/aero-wAssets/pdf/de/AERO-2016-Anmeldung-
Aussteller-DE_E-Form.pdf
• https://ebace.aero/exhibitor-information/exhibit-options-pricing/
• http://salon-du-bourget.fr/img/pdf/Dossier_de_participation_SIAE2013.pdf
REFERENCES
22

23. 23
Amount in USD %
496,800.00$ 20.7%
739,200.00$ 30.8%
391,200.00$ 16.3%
302,400.00$ 12.6%
244,800.00$ 10.2%
160,800.00$ 6.7%
64,800.00$ 2.7%
2,400,000.00$ 100%
Price p sq meteres
(Prices in EUROS)
VAT
Total Price
p/sqm
TOTAL IN USD p/m2
Exchange Rate @
(1.12773)
Extra Fees
ILA 735.60€ 19% 875.36€ 776.22$ 990.00€
EBACE 496.00$ 8% 535.68€ 475.01$ -$
MEBA 445.00$ 5% 467.25€ 414.33$ -$
PARIS 990.00€ 20% 1,188.00€ 1,053.44$ -€
Friedrichshafen 102.60€ 19% 122.09€ 108.27$ 150.00€
TOTAL 2,769.20€ 2,827.26$ 1,140.00€
VISITORS m2 of stand % of Budget STAND RENTAL Stand Construction Staff Accomodation Travel Costs Other Shopping
ILA 227,000.00 229 36% 178,005.21$ 264,858.00$ 140,168.36$ 108,351.00$ 87,712.71$ 57,615.21$ 23,218.07$
EBACE 12,743.00 35 3.35% 16,638.39$ 24,756.64$ 13,101.73$ 10,127.72$ 8,198.63$ 5,385.37$ 2,170.22$
MEEBA 8,314.00 32 2.65% 13,165.33$ 19,588.99$ 10,366.90$ 8,013.68$ 6,487.26$ 4,261.24$ 1,717.22$
PARIS 351,584.00 262 55% 275,699.49$ 410,219.53$ 217,096.70$ 167,817.08$ 135,851.92$ 89,236.07$ 35,960.80$
Friedrichshafen 33,900.00 123 2.68% 13,291.58$ 19,776.84$ 10,466.32$ 8,090.53$ 6,549.47$ 4,302.11$ 1,733.68$
TOTAL 633,541.00 681 100% 496,800.00 739,200.00 391,200.00 302,400.00 244,800.00 160,800.00 64,800.00
Description PARIS ILA EBACE Friedrichshafen MEEBA TOTAL
Stand Construction 410,219.53$ 264,858.00$ 24,756.64$ 19,776.84$ 19,588.99$ 739,200.00$
Stand Rental 275,699.49$ 178,005.21$ 16,638.39$ 13,291.58$ 13,165.33$ 496,800.00$
Staff 217,096.70$ 140,168.36$ 13,101.73$ 10,466.32$ 10,366.90$ 391,200.00$
Accomodation 167,817.08$ 108,351.00$ 10,127.72$ 8,090.53$ 8,013.68$ 302,400.00$
Travel Costs 135,851.92$ 87,712.71$ 8,198.63$ 6,549.47$ 6,487.26$ 244,800.00$
Other 89,236.07$ 57,615.21$ 5,385.37$ 4,302.11$ 4,261.24$ 160,800.00$
Shopping 35,960.80$ 23,218.07$ 2,170.22$ 1,733.68$ 1,717.22$ 64,800.00$
Total Cost 1,331,881.60$ 859,928.56$ 80,378.70$ 64,210.52$ 63,600.62$ 2,400,000.00$
Budget Distribution per trade show
DESCRIPTION
Stand rental incl additional charges
Stand construction, transport, cleaning, security
Staff
Accomodation
Travel costs
Other costs (advertising, hospitality)
Shopping, leaisure, Entertainment
TOTAL BUDGET
APPENDIX 1