This document outlines Lascar Electronics' strategy to grow exports through overseas distributors. It established distribution as its export focus due to previous success, distributors' local language and market knowledge. Lascar found and selected distributors based on their business plans and routes to market. It offered discounts and support to distributors, and has seen exports grow from £400k to over £2m, exceeding its 2004 turnover, through over 40 overseas distributors worldwide. Lessons included selecting distributors it can easily communicate with and maintaining a manageable number of strong relationships.

1. Ben Savage

2. Introduction
 Lascar Electronics company overview
 Devising our strategy
 How we implemented this strategy
 How has this helped our business?
 Lessons learned

3. Lascar Company Profile
 Established in 1977
 Voltmeters to the sensors industry
 Primary route to market through distribution
 US sales office and HK production office established in
early 2000’s.
 USB data logging range launched in 2004
 Custom design & manufacturing service
 Sell to a diverse range of industries

4. Devising an Export Strategy
Identify possible routes to market:
 Direct Sales to overseas customers/users
 Overseas distributors selling to end users in distinct
industries and territories
 US Sales Office growing business in both North &
South America

5. Devising an Export Strategy
Identify obstacles to be negotiated
 Data Logging range sells to a variety of industries:
 Limited sales resources
 Lack of expertise/contacts in a number of these industries
 Very limited foreign language skills within the business
 Low-cost, off-the-shelf solution:
 Most business ‘low’ typical order value
 Travel to EU (and further) is not economic considering this

6. Our Export Strategy
Focus on distribution
 Previous success with distribution for displays products
 Ability to have niche distributors for different industries
 Local language spoken by distributors
 Distributors understand local business needs, customers
can buy products locally
 Relatively easy management from central location

7. Implementation
How did we go about growing overseas
distribution?
 Passport to Export with UKTI
 Find and choose distributors
 Devise attractive distributor package
 Translate technical documentation
 Manage and grow accounts

8. Finding distributors
 Existing distribution network helped to promote
 Website setup to encourage distributors to contact us
 Data sheets translated into main EU languages
 Who are our competitors selling through?
 Bi-annual Electronica show in Munich (’08/’10) with
UKTI funding

9. Choosing Distributors
Our selection criteria is based on:
 Are they an established business with a
specific business plan for selling our products?
 What is their route to market? Web/Direct?
 How will they promote the products?
 What stock holding can they commit to?
 Intangibles: Can we work with them? Do they
seem motivated? Do we trust them?

10. What we offer to distributors
 Discounts from our list price (initially 30 to 35%)
 Incentive for hitting target
 Technical & marketing material supplied
 ‘Hands-off’ agreements
 Monthly email newsletters (new product info /
special promotions / application information)
 Regular contact by phone / email / skype

11. What results have we seen?
 Over 40 overseas distributors supported by Lascar
in UK.
 Distributors all over the world including EU, Japan
and India
 Total exports have grown from £400k to exceed
£2m (i.e. larger than company turnover in 2004)

12. Lessons learned
 Language can be a barrier; select companies you
can converse with easily
 Good working relationship key to making the
partnership successful
 Keep the new products coming; good distributors
love new things to sell
 Keep numbers manageable and select carefully
 Enough resource and time to build good relationships
 Don’t overcrowd the marketplace
 Having a great product helps enormously!