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Which foreign market should we select first

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In this article, we will discuss the choice of the first commercial target related to foreign markets development. Choosing a country whose language and culture are familiar to us, does not always equal a simplified access to the market or a sure hit.

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Which foreign market should we select first

  1. 1. Asselin Bannon Strategic Management Consultants Division of La Société de gestion et de formation GEXIMTM Inc. (This text is the sole property of Ronald Bannon – All rights reserved © 2015) Globalizing your business Which market should we select first? By Ronald Bannon MBA, C. Adm., FCMC Quebec, Canada, May 15th 2015 In this series of articles on international market development, we spoke rapidly in the previous article about the reasons why companies go to the other side of the border and what are the main reasons why the success is not necessarily ensured in a short-term horizon. Often we hear that this individual is fortunate because he is taking the plane for a destination outside the territorial limits of Canada. Some of these destinations are often envied as a tourist and gastronomic sites. The reality is far from a relaxing visit or pleasure when the main purpose of the trip is to work and to perform especially taking into account the time difference, travel on site, the local language if you do not speak it, the culture with its protocol, the customs and the assiduity of your interlocutors to respect the hours of appointment. Later we will publish an article on best practices on how to travel effectively for work. Now back to our subject on the choice of the first market. Several reasons can justify the choice of target countries in order to find new opportunities abroad. Among the major we encounter in our practice, those that occurs most often are: • Confirmation of need following a market study or opportunities identified through participation in a trade fair; • Existing demand for your products or solutions (ordered through purchase orders or a web trading platform); • Collaboration on joint projects with foreign suppliers with whom you do not share formal business relationships; • The obligation to consider other markets for lack of sufficient buyers in the local market due to the innovative nature of your product or your solution; • Presence of competitors in markets where you are not present (concept of uncovered opportunities for lack of knowledge or means); • An invitation to respond to an international tender. Ronald Bannon is a Certified Management Consultant (CMC) since 1997 and involved in international sales & marketing of innovative products and solutions since 1984. He carries out a long experience on how doing business abroad and promoting your latest innovation in markets where often Canadians have never showed up. In 2014, he was appointed Fellow for its contribution to promote the CMC designation and his excellent reputation.
  2. 2. Asselin Bannon Strategic Management Consultants Division of La Société de gestion et de formation GEXIMTM Inc. (This text is the sole property of Ronald Bannon – All rights reserved © 2015) However, the reasons for an increased presence in a new market is not always good. Several companies are trying to give explanations for piercing abroad to choose United Kingdom as the first commercial target abroad, great tourist destinations I recommend, can sometimes be difficult to justify unless your skills are related to the beer industry, information technology and communications or specific knowledge in aerospace engineering. This definition of the needs of United Kingdom is perhaps not as representative of the current economic reality, but it reflects the needs that we have been exposed in previous mandates. Consequently, in our experience, the choice of a first commercial target abroad must establish on the following basis: • Ideally, target a geographic market where the currency is stronger than that in your home country so that there is at least an economic incentive to deal with you; • Identify a specific need that has been confirmed in advance either by a market study is a serious chance that you will take the time to validate. Once on site, visit the Canadian consulate closest geographically and meet others players in the same industry to ensure that the perceived need is real and confirmed; • Outline what it will cost to meet the need or opportunity identified; • Build a realistic financing plan with specific goals based on long-term investments as the need remains and the market is still at your fingertips; it is important that funding for your international operations do not adversely affect the working capital required to operate your business in the domestic market; • Identify how you could develop this market opportunity by trying to be modest in your sales forecasts and expectations. In our experience, many companies resign rather quickly; • Finally start with a strategic plan and eventually when you'll master more market behavior and its players draw up a marketing plan. The registration of your intellectual properties should have been made before your sales efforts, mainly with regard to your patents. These must have been previously filed in the countries of your choice with your patent agent. You may also file an industrial patent design to protect the uniqueness of your product if that is the case. Please also note that it will be essential that you should registered your trademark in the countries that you target taking into account the fact that the rules for obtaining a certificate or title of ownership may be different from those in use in Canada. Check with a trade-mark agent or visit the Canadian Intellectual Property Office to www.cipo.gc.ca. You will find a lot of useful information and interesting as the tools made available by the Government of Canada to protect your ideas and your rights. Next subject: which available product or solution to offer in the first place to your foreign buyers? Asselin Bannon Strategic Management Consultants is a firm of professionals dedicated to the sales and the promotion of innovative products, solutions or processes issued from applied R&D into multi cross channels. We provide services to entrepreneurs locally and abroad in a way to help them identify business opportunities, building added value offers and business models and constructing their commercial plan. In certain cases, we also provide assistance to facilitate adequate funding required for commercial expansion. To date, we estimate our involvement in near 1,000 commercial projects. Asselin Bannon brings you into new markets where nobody has ever gone before.

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