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Preparing for Export Markets:
Important Considerations
Berletta Henlon Forrester
Manager, Market Development
Workshop: Step By Step Guide to Exporting
JAMPRO; 2016 July 7
JAMPRO
What do we do?
We seek to identify, create, and facilitate
opportunities for wealth creation for all
Jamaicans through trade and investment.
Market Development Value Proposition:
We leverage relationships to help buyers and
exporters convert trade opportunities into increased
sales.
• Basic Export Requirements
• Planning for Export
• Assessing Supply Capacity
• Assessing the Target Market
• Distributor Relationship
• Key Issues/Market Feedback
Important Considerations
Basic Considerations for Export
• Capacity: do you have enough to export? What’s the rule of thumb…;
• Market Research/Targeting: identifying markets; consumer culture/
tastes; demand for product/service ;identifying channels of distribution;
required standards & quality (i.e certifications- e.g GAP, HACCP);
• The Visual: Packaging; Labelling;
• Marketing: Branding and in-market promotion( including selling in-
market- warranties, return policy, after sale service etc.);
• IP Protection: Register your name, mark and brand in all target
markets;
• Market Access: Trade Agreements;
• Exporter Registration – JAMPRO
Planning is Key
• Carry out due diligence – what product/service in
demand? Which countries to target? What are the
market access requirements?[Ref. to ITC: Market
analysis tools- Trade Map; Market Access Map.
Market information-market trends, non-tariff
measures and geographical indications];
• Develop an export marketing plan- set clear
objectives (sales volume, $, # of new markets,
customers); Timelines; Define your target market ;
• Manage your supply chain-ensure sustainability
• Financial Plan
Assess the Target Market/Route to Market
• Identify and target the market segment
• Evaluate the price levels, trends and competitors
• Identify issues that may be entry barriers for your product
• Research the distribution channels
• Examine shipping routes and costs
• Determine appropriate logistics partners:
– Customs Broker, Consolidator, Agent, Courier, Post Office?
Assess Internal Capacity
• Assess your capacity to enter your chosen market;
and to service the market
• Adaptability/Agility is key - how will you adjust your
marketing mix (product, promotion, price, place) to
respond to market changes?
• Determine the impact of the resource requirements
on your domestic marketing and sales efforts
Assess Internal Capacity
• Elements to be assessed include:
– Operating standards and product quality,
– Production capacity,
– Raw material availability/consistency,
– Human resources
– Financial resources
– Overall competitiveness
Distributor Relationship
• Appoint a distributor to handle your product
• Ensure clear, unambiguous contract terms
• Check background, reputation and performance
• Get recommendations/referrals
• Seek to develop a winning partnership
Your Distributor
• KEY QUESTIONS:
– Is the distributor financially strong?
– Does he have the facilities needed to service the market?
– Is he linked into the right network to sell your product?
– How important is your product in his product mix?
In Summary…
• Focus on your product and aim to be the best
• Know your market and competitors
• Manage well all processes from factory to market
• Support your product in the market; Plan to visit as
often as possible
• Honour your commitments! …Communicate
• It’s all about relationships – Build partnerships:
Make them solid; Make them last!
Key Issues/Market Feedback
Packaging & Labelling
• A key determinant in consumer purchasing decision
• Type/quality - products must arrive in good condition
• Packaging for the target market/segment (sizes;
number of units in a box; packaging for display;
convenience)
• Bilingual/ multi-lingual labels (e.g. French for Canada)
• Unattractive/inadequate labelling (Font, point size,
measurements - grams vs. ounces, nutritional
information, usage directions). Market-specific
labelling requirements
Key Issues/Market Feedback
Pricing
• Quote prices in the currency of the country
(Canadian buyers complain that Jamaican exporters tend to
quote in US$)
• Uncompetitive prices
– market research is key
– Understand the competitive landscape (key players and
their pricing strategies)
Key Issues/Market Feedback
• Understanding the supply chain – exporters need to
appreciate the entire process beyond shipping the product
• Lack of differentiation (too many ‘me too’ products in the
same place)
• Understanding market nuances – differences in
culture/taste/interpretation
– e.g. rose water, which is used in Jamaica for baking (labelled as food);
however, this product is used only as an astringent, for cosmetic
purposes, in Trinidad.
– Product may end up in the wrong aisle!
Key Issues/Market Feedback
Product Shelf Life
 Exporters should ensure that products have a longer ‘sell by’
date for distant destinations; taking into account time
required to go through the distribution channel before
reaching the final consumer.
 Often when products arrive, they are already close to the sell
by date, and some end up having to be dumped
Key Issues/Market Feedback
Marketing & Promotions
Limited in-market support
 Exporters keen on getting goods to market but thereafter fail to
promote in market.
 Distributors need support from exporters to promote goods in
market.
 Buyers sometimes not familiar with products and therefore
exporters need to work more closely with them in promoting to
consumers.
Key Issues/Market Feedback
Capitalise on the Strength of Brand Jamaica
 Authentic Jamaican products should boldly proclaim
‘Made in Jamaica’ on the packaging.
 While it is important to highlight own brand,
remember Jamaica sells!
VIRTUAL BUSINESS GENERATION
(a) Is your business a needle in a haystack?
(b)Do you always want to have sales opportunities at
your fingertips?
If you answered “YES” to (a) & (b) then perhaps (c ) is
the solution:
(c ) Digital Transformation…..
VIRTUAL BUSINESS GENERATION
What have the following in common?:
• facebook
• Linkedin
• twitter
• YouTube
• Alibaba.com
• Ebay
VIRTUAL BUSINESS GENERATION
Answer:
• Facebook, Twitter and LinkedIn are all
social networks which allow people to
identify and contact both leads and
customers.
• Alibaba and Ebay are virtual
marketplaces which bring together large
numbers of buyers and sellers.
VIRTUAL BUSINESS GENERATION
Jump On the Innovation bandwagon- surveys
are showing that companies (Digirati) who
adopt new technologies like internet based
business generation tools( matchmaking
software; Online directories; Online
marketplaces; Mobile marketplaces etc.)
outperform their competitors in areas
including market share, revenue creation and
profits.
JAMPRO’s
Export & Market Development Services
• Business Information
– Secure vital business information and learn about
export procedures
• Business Linkages
– Identify business linkage opportunities and generate
local supply contracts
• Market Development
– Identify export opportunities and access markets for
your products
Market Penetration Initiatives
JAMPRO provides you with opportunities to place your
products in front of buyers through:
– International Trade shows
– Inward Buyer Missions
– Outward Trade Missions to target markets
– Business Matchmaking
– Buyer Recruitment for Expo Jamaica
In Summary:
Are You Ready to Export?
EXPORT READINESS CHECKLIST
1.Why do you wish to export?
□ Increase sales
□ Expanding market capacity
□ Better utilization of personnel
□ Extend life of the product/service
□ Decreasing dependence on single
market, traditional markets
□ Greater opportunities
□ Better utilization of idle plant
capacity
□ Decreasing Jamaican sales
□ Other
Are You Ready to Export?
*The areas below represent conditions that should exist within
your company enabling you to become a successful exporter.
How does your company rate?
On a scale of 1 to 4, rate your company: 1=definitely no, 4=definitely yes:
 Strong management team
□ Well established domestic market
□ Sufficient plan capacity/personnel to meet increased demand
□ Product/service can be modified to meet the needs of foreign
markets/customers
□ Willing to accept lower profit margin, at least initially, to establish a market
presence
□ Prepared to provide effective, efficient after-sales service
Are You Ready to Export?
How does your company rate?(1)
On a scale of 1 to 4, rate your company: 1=definitely no, 4=definitely yes:
□ Revenues are growing
□ Well thought out realistic business and marketing strategies – in writing
□ Are prepared and able to compete with foreign products/services in terms
of quality/price
□ Management is willing and able to make a tangible commitment to pursue
export markets; dedicating time, personnel and funds for that
□ Willing to consider joint ventures, technology transfers or strategic alliances
Are You Ready to Export?
EXPORT READINESS CHECKLIST (Contd.)
How does your company rate? (2)
□ Revenues are growing
□ Well thought out realistic business and marketing strategies – in writing
□ Are prepared and able to compete with foreign products/services in terms of
quality/price
□ Management is willing and able to make a tangible commitment to pursue export
markets; dedicating time, personnel and funds for that
□ Willing to consider joint ventures, technology transfers or strategic alliances
*The above areas represent conditions that should exist within your company
enabling you to become a successful exporter.
Are You Ready for Export?
EXPORT READINESS CHECKLIST (Contd.)
3. Background Information
Have you checked into the following? Answer YES/ NO
a) Identified and researched target market(s)
b) Decided on methods of marketing
c) Tariffs/duties for each product in each target market
d) Transportation routes /distribution channels
e) Packaging
f) Pricing
g) Financing (e.g. Exim Bank)
Are You Ready for Export?
EXPORT READINESS CHECKLIST (Contd.)
4. Pitfalls of exporting
□ Inadequate market research
□ Bad timing
□ Poor planning
□ Company profits are in the red
□ Other
So- Are You Ready for Export?
IF YES get on board the Export train!
JAMPRO -Working for Jamaica; working for you
www.tradeandinvestjamaica.org
E: info@jamprocorp.com
Follow Us:

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1- Preparing for Export Mats_Step_by_Step_KgnJULY2016_0.pptx

  • 1. Preparing for Export Markets: Important Considerations Berletta Henlon Forrester Manager, Market Development Workshop: Step By Step Guide to Exporting JAMPRO; 2016 July 7
  • 2. JAMPRO What do we do? We seek to identify, create, and facilitate opportunities for wealth creation for all Jamaicans through trade and investment. Market Development Value Proposition: We leverage relationships to help buyers and exporters convert trade opportunities into increased sales.
  • 3. • Basic Export Requirements • Planning for Export • Assessing Supply Capacity • Assessing the Target Market • Distributor Relationship • Key Issues/Market Feedback Important Considerations
  • 4. Basic Considerations for Export • Capacity: do you have enough to export? What’s the rule of thumb…; • Market Research/Targeting: identifying markets; consumer culture/ tastes; demand for product/service ;identifying channels of distribution; required standards & quality (i.e certifications- e.g GAP, HACCP); • The Visual: Packaging; Labelling; • Marketing: Branding and in-market promotion( including selling in- market- warranties, return policy, after sale service etc.); • IP Protection: Register your name, mark and brand in all target markets; • Market Access: Trade Agreements; • Exporter Registration – JAMPRO
  • 5. Planning is Key • Carry out due diligence – what product/service in demand? Which countries to target? What are the market access requirements?[Ref. to ITC: Market analysis tools- Trade Map; Market Access Map. Market information-market trends, non-tariff measures and geographical indications]; • Develop an export marketing plan- set clear objectives (sales volume, $, # of new markets, customers); Timelines; Define your target market ; • Manage your supply chain-ensure sustainability • Financial Plan
  • 6. Assess the Target Market/Route to Market • Identify and target the market segment • Evaluate the price levels, trends and competitors • Identify issues that may be entry barriers for your product • Research the distribution channels • Examine shipping routes and costs • Determine appropriate logistics partners: – Customs Broker, Consolidator, Agent, Courier, Post Office?
  • 7. Assess Internal Capacity • Assess your capacity to enter your chosen market; and to service the market • Adaptability/Agility is key - how will you adjust your marketing mix (product, promotion, price, place) to respond to market changes? • Determine the impact of the resource requirements on your domestic marketing and sales efforts
  • 8. Assess Internal Capacity • Elements to be assessed include: – Operating standards and product quality, – Production capacity, – Raw material availability/consistency, – Human resources – Financial resources – Overall competitiveness
  • 9. Distributor Relationship • Appoint a distributor to handle your product • Ensure clear, unambiguous contract terms • Check background, reputation and performance • Get recommendations/referrals • Seek to develop a winning partnership
  • 10. Your Distributor • KEY QUESTIONS: – Is the distributor financially strong? – Does he have the facilities needed to service the market? – Is he linked into the right network to sell your product? – How important is your product in his product mix?
  • 11. In Summary… • Focus on your product and aim to be the best • Know your market and competitors • Manage well all processes from factory to market • Support your product in the market; Plan to visit as often as possible • Honour your commitments! …Communicate • It’s all about relationships – Build partnerships: Make them solid; Make them last!
  • 12. Key Issues/Market Feedback Packaging & Labelling • A key determinant in consumer purchasing decision • Type/quality - products must arrive in good condition • Packaging for the target market/segment (sizes; number of units in a box; packaging for display; convenience) • Bilingual/ multi-lingual labels (e.g. French for Canada) • Unattractive/inadequate labelling (Font, point size, measurements - grams vs. ounces, nutritional information, usage directions). Market-specific labelling requirements
  • 13. Key Issues/Market Feedback Pricing • Quote prices in the currency of the country (Canadian buyers complain that Jamaican exporters tend to quote in US$) • Uncompetitive prices – market research is key – Understand the competitive landscape (key players and their pricing strategies)
  • 14. Key Issues/Market Feedback • Understanding the supply chain – exporters need to appreciate the entire process beyond shipping the product • Lack of differentiation (too many ‘me too’ products in the same place) • Understanding market nuances – differences in culture/taste/interpretation – e.g. rose water, which is used in Jamaica for baking (labelled as food); however, this product is used only as an astringent, for cosmetic purposes, in Trinidad. – Product may end up in the wrong aisle!
  • 15. Key Issues/Market Feedback Product Shelf Life  Exporters should ensure that products have a longer ‘sell by’ date for distant destinations; taking into account time required to go through the distribution channel before reaching the final consumer.  Often when products arrive, they are already close to the sell by date, and some end up having to be dumped
  • 16. Key Issues/Market Feedback Marketing & Promotions Limited in-market support  Exporters keen on getting goods to market but thereafter fail to promote in market.  Distributors need support from exporters to promote goods in market.  Buyers sometimes not familiar with products and therefore exporters need to work more closely with them in promoting to consumers.
  • 17. Key Issues/Market Feedback Capitalise on the Strength of Brand Jamaica  Authentic Jamaican products should boldly proclaim ‘Made in Jamaica’ on the packaging.  While it is important to highlight own brand, remember Jamaica sells!
  • 18. VIRTUAL BUSINESS GENERATION (a) Is your business a needle in a haystack? (b)Do you always want to have sales opportunities at your fingertips? If you answered “YES” to (a) & (b) then perhaps (c ) is the solution: (c ) Digital Transformation…..
  • 19. VIRTUAL BUSINESS GENERATION What have the following in common?: • facebook • Linkedin • twitter • YouTube • Alibaba.com • Ebay
  • 20. VIRTUAL BUSINESS GENERATION Answer: • Facebook, Twitter and LinkedIn are all social networks which allow people to identify and contact both leads and customers. • Alibaba and Ebay are virtual marketplaces which bring together large numbers of buyers and sellers.
  • 21. VIRTUAL BUSINESS GENERATION Jump On the Innovation bandwagon- surveys are showing that companies (Digirati) who adopt new technologies like internet based business generation tools( matchmaking software; Online directories; Online marketplaces; Mobile marketplaces etc.) outperform their competitors in areas including market share, revenue creation and profits.
  • 22. JAMPRO’s Export & Market Development Services • Business Information – Secure vital business information and learn about export procedures • Business Linkages – Identify business linkage opportunities and generate local supply contracts • Market Development – Identify export opportunities and access markets for your products
  • 23. Market Penetration Initiatives JAMPRO provides you with opportunities to place your products in front of buyers through: – International Trade shows – Inward Buyer Missions – Outward Trade Missions to target markets – Business Matchmaking – Buyer Recruitment for Expo Jamaica
  • 24. In Summary: Are You Ready to Export? EXPORT READINESS CHECKLIST 1.Why do you wish to export? □ Increase sales □ Expanding market capacity □ Better utilization of personnel □ Extend life of the product/service □ Decreasing dependence on single market, traditional markets □ Greater opportunities □ Better utilization of idle plant capacity □ Decreasing Jamaican sales □ Other
  • 25. Are You Ready to Export? *The areas below represent conditions that should exist within your company enabling you to become a successful exporter. How does your company rate? On a scale of 1 to 4, rate your company: 1=definitely no, 4=definitely yes:  Strong management team □ Well established domestic market □ Sufficient plan capacity/personnel to meet increased demand □ Product/service can be modified to meet the needs of foreign markets/customers □ Willing to accept lower profit margin, at least initially, to establish a market presence □ Prepared to provide effective, efficient after-sales service
  • 26. Are You Ready to Export? How does your company rate?(1) On a scale of 1 to 4, rate your company: 1=definitely no, 4=definitely yes: □ Revenues are growing □ Well thought out realistic business and marketing strategies – in writing □ Are prepared and able to compete with foreign products/services in terms of quality/price □ Management is willing and able to make a tangible commitment to pursue export markets; dedicating time, personnel and funds for that □ Willing to consider joint ventures, technology transfers or strategic alliances
  • 27. Are You Ready to Export? EXPORT READINESS CHECKLIST (Contd.) How does your company rate? (2) □ Revenues are growing □ Well thought out realistic business and marketing strategies – in writing □ Are prepared and able to compete with foreign products/services in terms of quality/price □ Management is willing and able to make a tangible commitment to pursue export markets; dedicating time, personnel and funds for that □ Willing to consider joint ventures, technology transfers or strategic alliances *The above areas represent conditions that should exist within your company enabling you to become a successful exporter.
  • 28. Are You Ready for Export? EXPORT READINESS CHECKLIST (Contd.) 3. Background Information Have you checked into the following? Answer YES/ NO a) Identified and researched target market(s) b) Decided on methods of marketing c) Tariffs/duties for each product in each target market d) Transportation routes /distribution channels e) Packaging f) Pricing g) Financing (e.g. Exim Bank)
  • 29. Are You Ready for Export? EXPORT READINESS CHECKLIST (Contd.) 4. Pitfalls of exporting □ Inadequate market research □ Bad timing □ Poor planning □ Company profits are in the red □ Other
  • 30. So- Are You Ready for Export? IF YES get on board the Export train! JAMPRO -Working for Jamaica; working for you www.tradeandinvestjamaica.org E: info@jamprocorp.com Follow Us:

Editor's Notes

  1. Salutations……
  2. This brings me to end of my presentation…………………