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International Trade Example


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International Trade Example

  1. 1. Barter Proposal Helping Your Brand To Break Into New Markets Without Needing To Spend Any Additional Cash
  2. 2. <ul><li>Summary of Proposal </li></ul> <ul><li>Ormita can offer you a range of advertising and public relations services in several of key markets such as Canada, China, Hungary, India, Mexico, Poland, Turkey, UK & the USA </li></ul><ul><li>Advertising is offered to you on a pure barter basis </li></ul><ul><li>You can benefit from: </li></ul><ul><ul><li>Increased brand exposure </li></ul></ul><ul><ul><li>Reduced capital expenditure on advertising and public relations </li></ul></ul><ul><ul><li>Cash paying customers - referred by happy recipients of your bartered offerings </li></ul></ul>
  3. 3. Types of Advertising Available to Your Business on a Barter Basis <ul><li>Television </li></ul><ul><li>Sponsorship of Events </li></ul><ul><li>Radio </li></ul><ul><li>Public Relations Providers </li></ul><ul><li>Newspapers </li></ul><ul><li>Magazines </li></ul><ul><li>Internet Websites </li></ul><ul><li>Billboards & Indoor Media </li></ul>
  4. 4. <ul><li>A global database of more than 93,800 media outlets </li></ul><ul><li>Providing strategic positioning against your competitors </li></ul><ul><li>Workable business and brand building PR strategies </li></ul><ul><li>Highly qualified, talented and experienced PR specialists </li></ul><ul><li>Every proposal is tailor made to meet your unique needs </li></ul><ul><li>Excellent execution skills </li></ul><ul><li>Timely follow-up and post project evaluation </li></ul><ul><li>Seamless multi-lingual and global delivery </li></ul><ul><li>All of our media is available on a barter basis </li></ul>Our Media Strengths
  5. 5. <ul><li>We are involved in every phase of normal PR activity </li></ul><ul><li>Global media delivery </li></ul><ul><li>Strategizing, planning, implementation and measurement </li></ul><ul><li>Intense stakeholder mapping </li></ul><ul><li>Three-month reviews </li></ul><ul><li>We help in other stakeholder relationship management </li></ul><ul><li>Regular Media monitoring reports </li></ul><ul><li>Competitor Tracking </li></ul>How We Manage Stakeholder Perceptions
  6. 6. <ul><li>Regional Media Availability </li></ul> <ul><li>27,187 Billboards in 9 countries </li></ul><ul><li>More than 3,122 urinals in 4 countries </li></ul><ul><li>2,538 video screens in 7 countries </li></ul><ul><li>8,971 point of sale advertising sites in 5 countries </li></ul><ul><li>Regional magazines and newspapers </li></ul><ul><li>Internet websites for various demographics </li></ul>
  7. 7. Some of our Larger Radio Brands
  8. 8. Some of our Larger TV Brands
  9. 9. <ul><li>Some of Our Larger Publications </li></ul>
  10. 10. <ul><li>Basics of the Barter Process </li></ul> <ul><li>We can work with you to select a list of media suitable for your target market. </li></ul><ul><li>We find the cash equivalent rates for your required media. </li></ul><ul><li>You confirm your booking and, instead of paying cash , offer the same equivalent cash value of your own product or service. </li></ul><ul><li>No direct barter takes place . The media you are buying from may not be the same people who will take your product or service in return. </li></ul><ul><li>Ormita will “onward barter” your product/service outside your local market and does not resell your product or service for cash. </li></ul>
  11. 11. <ul><li>Basics of the Barter Process </li></ul> Your Business You wish to acquire more cash paying customers from these three target countries
  12. 12. <ul><li>Basics of the Barter Process </li></ul> Your Business You have two options Pay cash to buy advertising and P.R . Doing this you run the risk of having no customers purchase from you and loosing money. Barter / Swap for advertising and P.R. This way you are guaranteed to cover your advertising cost and new customers will be “trying” your product; thereby creating more referrals.
  13. 13. <ul><li>Basics of the Barter Process </li></ul>
  14. 14. <ul><li>Basics of the Barter Process </li></ul> Your Business Ormita Customer A Ormita Customer B You get media from Ormita on barter You give Ormita your product or service in return Ormita will barter your product or service on
  15. 15. Ormita Will Barter Your Product or Service “Off Market” <ul><li>Ormita will never devalue your current cash market </li></ul><ul><li>Ormita will only offer your service for barter into markets where it does not currently exist and/or where there is low brand awareness </li></ul><ul><li>Customers who acquire your product or service through barter are more likely to give positive feedback </li></ul><ul><li>The cost for you to service an additional customer is nominal versus what you gain in advertising in return </li></ul>
  16. 16. Basics of the Barter Process <ul><li>You can buy first and sell later </li></ul><ul><li>Every time you buy your account is debited for the value of the product or service you are purchasing </li></ul><ul><li>Every time you sell your account is credited </li></ul><ul><li>Ormita will provide you with an interest-free line of credit </li></ul>
  17. 17. <ul><li>We can custom-make a P.R. Campaign to meet your needs with no obligation to you. </li></ul><ul><li>With thousands of international media assets, we can create a demographically targeted campaign that will attract your target audience based on any, or all, of these factors: </li></ul><ul><li>age group </li></ul><ul><li>geographic location </li></ul><ul><li>income / assets </li></ul><ul><li>gender / sexual orientation </li></ul><ul><li>occupation </li></ul><ul><li>marital status </li></ul><ul><li>hobbies / interests / sporting and social activities </li></ul><ul><li>professional occupation </li></ul><ul><li>industry associations </li></ul><ul><li>If you don’t wish to go ahead – you are not obligated to do the barter deal or pay any other costs. </li></ul>We Can Tailor A Package To Meet Your Needs With No Obligation To You
  18. 18. Ormita Members Are New Revenue <ul><li>Ormita customers do not replace existing cash customers </li></ul><ul><li>Ormita brings new you only new customers </li></ul><ul><li>These customers generate new revenue </li></ul><ul><li>Your businesses uses this revenue to pay for: </li></ul><ul><li>- advertising </li></ul><ul><li>- existing fixed costs </li></ul><ul><li>- brand development </li></ul><ul><li>- business expansion </li></ul><ul><li>- new acquisitions </li></ul>
  19. 19. Some of Our Better-Known Non-Media Customers
  20. 20. Some Customers You May Recognise
  21. 21. Some Customers You May Recognise
  22. 22. <ul><li>Some Little-Known Statistics </li></ul> <ul><li>Approximately 70% of all Fortune 500 companies engage in barter [1] . </li></ul><ul><li>Eight out of ten corporations engage in barter [2] . </li></ul><ul><li>Approximately 65% of all New York Stock Exchange-listed companies engage in barter trade [3] . </li></ul><ul><li>The SWISS Wir alone does 2.5 billion Swiss Francs (over $2 billion US dollars) and boasts 80,000 members nationally [4] . </li></ul><ul><li>The WIR also enjoys a membership base of nearly 20% of all Swiss businesses in a country of only 7 million people [5] . </li></ul><ul><li>At its peak in 2001-2002, an estimated 6 to 10 million Argentines participated in the Red Global de Trueque barter system, including doctors, manufacturers, and even railways, turning over approximately 6 billion US dollars per annum in transactions and accounted for approximately 15% of Argentina’s mean personal income [6] . </li></ul><ul><li>Approximately 400,000 businesses engage in formalised barter in the United States [7] . </li></ul><ul><li>In North America 80,000 small businesses used barter for the first time in 2007 and over 800,000 American companies bartered at least once. [8] </li></ul><ul><li>Barter accounted for 31% of export operations from the Ukraine in last year with highly liquid goods accounting for between 60 and 70% of all goods exported by barter [9] . </li></ul><ul><li>Companies that actively barter can do as much as 5-10% of their business annually through trades. [10] </li></ul><ul><li>[1] Schmidgall, R.S., Damitio, J.W. (1999)., Bartering activities of the Fortune 500 and hospitality lodging firms., Michigan State University, International Journal of Hospitality Management </li></ul><ul><li>[2] American Association of Advertising Agencies. (2003). </li></ul><ul><li>[3] (2004)., Annual Report, National Association of Trade Exchanges </li></ul><ul><li>[4] Lietaer, B & Belgin, S. (2004)., Of Human Wealth: Beyond Greed & Scarcity. Galley Edition. </li></ul><ul><li>[5] Valentini, E. (2003)., Switzerland’s WIR System and Barter Worldwide, International Trade Currency System </li></ul><ul><li>[6] Stodder, J. (2007).,Residual Barter Networks and Macro-Economic Stability. Rensselaer Polytechnic Institute at Hartford, Hartford CT. </li></ul><ul><li>[7] (2004)., Fact Sheet, International Reciprocal Trade Association. </li></ul><ul><li>[8] Frisk, S., (2007). The American Economics Association </li></ul><ul><li>[9] Kuchma, L., (1998). Press Release. Embassy of the Ukraine to the United States of America. (14 Oct). </li></ul><ul><li>[10] Schact, J. (2004)., &quot;The Business of Bartering&quot;, Illinois Meetings & Events (Fall Edition). </li></ul>
  23. 23. <ul><li>Some Examples of Recent Cross-Border Trades </li></ul><ul><li>Dec 2010 – Jan 2011 </li></ul> <ul><li>Kairali Resorts ( ) Took: $43,198 USD of advertising Repays in: Hotel rooms, entertainment Hidden Benefits: Rooms sold to new customers only who may come back and buy with cash. </li></ul><ul><li>Hertz Rentals ( ) Took: $274,150 USD of advertising Repays in: End-of-life ex-rental cars Hidden Benefits: Rental cards disposed of without warehousing, auction and other costs and at a higher margin than with outright cash sale. </li></ul><ul><li>Nokia Electronics ( ) Took: $89,715 USD of printing and packaging Repays in: Incorrectly packaged models / overstock models Hidden Benefits: Models sold outside of their market only; thereby creating a new market for them who may buy with cash. </li></ul>
  24. 24. <ul><li>Some Examples of Recent Cross-Border Trades (cont…) </li></ul><ul><li>Dec 2010 – Jan 2011 </li></ul> <ul><li>4. BlueScope Steel ( ) Took: $25,000 AUD of hotel vouchers Repays in: Surplus steel items Hidden Benefit: Surplus only allowed to be sold to non-BlueScope customers, thereby taking customers away from their competitors. </li></ul><ul><li>Galena Cellars Winery ( ) Took: $35,000 USD of expo space Repays in: Wine Hidden Benefit: Sold offshore to new markets only which had never experienced Galena Wines and for higher than local market value. </li></ul><ul><li>M.A.C. Cosmetics ( ) Took: €68,175 of advertising Repays in: Remnants / end-of-stock-lots of product Hidden Benefit: Sold offshore to new markets only and for full retail value. </li></ul>