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Gaining mindshare in US market

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Advice on how to do business in the US for European SMEs

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Gaining mindshare in US market

  1. 1. Pledges of Allegiance: Gaining Mindshare in the US Market <ul><li>Presented by: </li></ul><ul><li>Derek Perkins </li></ul><ul><li>President, Perkins Associates </li></ul>
  2. 2. Seminar Programme <ul><li>Introductions </li></ul><ul><li>How Big is my Market? </li></ul><ul><li>Go West? </li></ul><ul><li>Slicing & Dicing the Market </li></ul><ul><li>Marketing – to advertise or not? </li></ul><ul><li>Showtime! </li></ul><ul><li>Buddying up </li></ul><ul><li>Post-September 11 th America </li></ul>
  3. 3. Introductions: Goals of the Seminar <ul><li>Know issues to be aware of before doing business in US </li></ul><ul><li>Learn practical ways of assessing, entering and doing business in the market </li></ul><ul><li>Provide contact points and references for further information & assistance </li></ul>
  4. 4. Introductions: Me DP INTERNATIONAL CONSULTING Sales process and lead generation • Intercultural training • Economic development DP INTERNATIONAL CONSULTING Sales process and lead generation • Intercultural training • Economic development DP INTERNATIONAL CONSULTING Sales process and lead generation • Intercultural training • Economic development DP INTERNATIONAL CONSULTING DP INTERNATIONAL CONSULTING           
  5. 5. Introductions: You <ul><li>Name </li></ul><ul><li>Position </li></ul><ul><li>Company </li></ul><ul><li>Interest in & experience of US market </li></ul><ul><li>What do you want from this seminar? </li></ul>
  6. 6. How Big Is My Market?
  7. 7. How Big Is My Market? Malaysia Argentina Netherlands Saudi Arabia <ul><ul><ul><ul><li>Greece </li></ul></ul></ul></ul>
  8. 8. How Big Is My Market: GDP Comparisons California Italy, UK New York China, Brazil Texas Canada, Mexico Florida Australia, Russia
  9. 9. Go West? <ul><li>Not for faint-hearted or uncommitted </li></ul><ul><li>Needs senior management involvement </li></ul><ul><li>Need to audit company first </li></ul>
  10. 10. Market entry strategies <ul><li>Main options: </li></ul><ul><ul><li>Agents, distributors & representatives </li></ul></ul><ul><ul><li>Outsourced support (virtual company) </li></ul></ul><ul><ul><li>Direct representation - sales & marketing presence/full subsidiary (in-house/hired) </li></ul></ul><ul><ul><li>JV/strategic alliance </li></ul></ul><ul><ul><li>Acquisition </li></ul></ul>
  11. 11. Market entry strategies: Agents, Distributors, Reps Pros Cons Speed of set up Work for other companies too Existing client base Strengths may be regional Knowledge of market Little embedding – hired hand
  12. 12. Market entry strategies: Outsourced Support Pros Cons Good visibility/”own brand” image Focus on specialist elements, not holistic Demonstration of commitment Different companies doing different things Employees focus on your company’s needs Little direct exposure to market for company staff
  13. 13. Market entry strategies: Direct representation Pros Cons Own people on ground High cost – financial & human resources React in best interest to market needs Steep learning curve – employees know company, not market Assess strategy & next steps better High risk if not done right
  14. 14. Market entry strategies: JV/Acquisition Pros Cons Buy existing book of business High failure rate Resources on ground, momentum Very high management commitment needed Established name/brand/presence Costs and consequences of failure significant
  15. 15. Slicing and Dicing The Market: Company Size 500 < SME 20 - 49 Small 50 - 99 Medium 100 - 500 Large
  16. 16. Slicing and Dicing The Market: Geography <ul><li>New York </li></ul><ul><li>Los Angeles </li></ul><ul><li>Chicago </li></ul><ul><li>San Francisco/Oakland </li></ul><ul><li>Philadelphia </li></ul><ul><li>Boston </li></ul><ul><li>Washington, D.C. </li></ul><ul><li>Dallas/Fort Worth </li></ul><ul><li>Houston </li></ul><ul><li>Detroit </li></ul>
  17. 17. Slicing and Dicing The Market: Sectors <ul><li>Consumer goods: </li></ul><ul><ul><li>North East corridor </li></ul></ul><ul><li>Agricultural & industrial goods: </li></ul><ul><ul><li>Mid West (IL, MI, OH, IN) </li></ul></ul><ul><li>Service industry: </li></ul><ul><ul><li>Everywhere. 80% of US GDP </li></ul></ul><ul><li>Growth areas: </li></ul><ul><ul><li>Arizona, Texas, California </li></ul></ul><ul><li>High-tech: </li></ul><ul><ul><li>Silicon Valley </li></ul></ul><ul><ul><li>D.C. </li></ul></ul><ul><ul><li>Austin/Dallas/Fort Worth </li></ul></ul><ul><ul><li>Raleigh/Durham Research Triangle </li></ul></ul><ul><ul><li>Phoenix </li></ul></ul><ul><ul><li>New England </li></ul></ul><ul><ul><li>New Jersey </li></ul></ul>
  18. 18. Showtime! Trade Shows & Missions <ul><li>Probably most common vehicle for market entry </li></ul><ul><li>Possibly least effective (if not done properly): </li></ul><ul><ul><li>80% firms – no participation without subsidy </li></ul></ul><ul><ul><li>60% failed to follow up leads </li></ul></ul><ul><ul><li>50% neutral/negative on results </li></ul></ul>
  19. 19. Showtime! Trade Shows & Missions <ul><li>Best uses: </li></ul><ul><ul><li>Gauge local market interest </li></ul></ul><ul><ul><li>Meet potential customers/partners </li></ul></ul><ul><ul><li>Identify regional markets </li></ul></ul><ul><ul><li>Understand adaptation needed </li></ul></ul><ul><li>Source: Going Global </li></ul>
  20. 20. Showtime! Trade Shows & Missions <ul><li>Pre-trip: </li></ul><ul><ul><li>Research partners/customers </li></ul></ul><ul><ul><li>Prepare goods/services for US market </li></ul></ul><ul><ul><li>Invite targets to booth, lunch, dinner </li></ul></ul><ul><ul><li>Send target companies information </li></ul></ul>
  21. 21. Showtime! Trade Shows & Missions <ul><li>During Missions: </li></ul><ul><ul><li>Devise system to capture enquiries & leads </li></ul></ul><ul><ul><li>Write key info on back of business/lead cards </li></ul></ul><ul><ul><li>Enter into database </li></ul></ul><ul><ul><li>Use literature sparingly – 65% handed out at shows is unread </li></ul></ul><ul><ul><li>Ask open-ended questions </li></ul></ul><ul><ul><li>SELL! </li></ul></ul>
  22. 22. Showtime! Trade Shows & Missions Immediately after show 2 weeks after show 3 months after show 6 months after show 1 year after show 18 months after show 2 years after show
  23. 23. Buddying Up – Available Support                                                                                                                                                                                          
  24. 24. Buddying Up – Available Support <ul><li>Core Services: </li></ul><ul><ul><li>Internationalization of SMEs (IOS) </li></ul></ul><ul><ul><li>Tailored Market Information Reports </li></ul></ul><ul><ul><li>Trade Mission Programmes </li></ul></ul><ul><ul><li>International Business Opportunities (IBO) </li></ul></ul>
  25. 25. Buddying Up – Available Support Date Market Sector May Barcelona Multi-sector June Philadelphia Multi-sector September Rio de Janeiro Geoscience/engineering (Oil & Gas Expo) September South Africa (2/3 centres) Engineering, Automotive, Professional Services November India (2/3 centres) Medical/Environmental November L.A. & Las Vegas Multi-sector to LA; IT sector to COMDEX, Las Vegas December Poland & Czech Republic Multi-sector
  26. 26. Buddying Up – Available Support <ul><li>Export USA initiative </li></ul><ul><li>5 key elements: </li></ul><ul><ul><li>Mentoring </li></ul></ul><ul><ul><li>Market assessment </li></ul></ul><ul><ul><li>Marketing course </li></ul></ul><ul><ul><li>Trade fair visit </li></ul></ul><ul><ul><li>Publicity </li></ul></ul>
  27. 27. Buddying Up – Available Support <ul><li>Eligibility </li></ul><ul><ul><li><250 employees </li></ul></ul><ul><ul><li>Established track record in UK </li></ul></ul><ul><ul><li>New, innovative product, system, process </li></ul></ul><ul><ul><li>New to US market </li></ul></ul><ul><ul><li>Nominated by Business Link/Trade Association </li></ul></ul>
  28. 28. Buddying Up – Available Support <ul><li>Assistance: </li></ul><ul><ul><li>Importing into US </li></ul></ul><ul><ul><li>Market research </li></ul></ul><ul><ul><li>Real estate & relocation </li></ul></ul><ul><ul><li>US subsidiary sourcing </li></ul></ul><ul><ul><li>Transportation & logistics </li></ul></ul><ul><ul><li>Assembly & warehousing </li></ul></ul><ul><ul><li>Immigration </li></ul></ul><ul><ul><li>Consultancy & referral services – legal, financial, cultural, research </li></ul></ul>
  29. 29. Buddying Up – Available Support
  30. 30. Post September 11 th & Understanding America <ul><li>Attitude to life </li></ul><ul><li>Time </li></ul><ul><li>Language </li></ul><ul><li>Localization </li></ul><ul><li>Business etiquette </li></ul><ul><li>Patriotism </li></ul>
  31. 31. Pledges of Allegiance: Gaining Mindshare in the US Market <ul><li>Presented by: </li></ul><ul><li>Derek Perkins </li></ul><ul><li>President, Perkins Associates </li></ul>

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