PPT sample profile

1. FUNDAMENTAL OF EXPORT
BUSINESS PLAN
Presented by
Rahim Jabbar
November 2010
1

2. • An Overview of Export Business
• The Outline
• Detailed Explanation
– Introduction
– Current Market Position
– Market & Industry Trend
– Export Audit
– Market Assumptions
– Export Objectives
– Export Marketing Strategic Plan
– Export Management Plan
– Action Plan
– Financial Forecasts
• Summary & Conclusion
Points of Discussion
FUNDAMENTAL OF EXPORT BUSINESS PLAN
2

3. 3
AN OVERVIEW OF
EXPORT BUSINESS

4. AN OVERVIEW OF EXPORT BUSINESS ACTIVITIES
EXPORT
PRODUCT
EXPORT
MARKET
EXPORTER
•Internal company analysis (Strength & Weaknesses)
•S/W/O/T analysis strategic decisions
•Objectives & Targets
Export Market Audit (Opportunities/Threats)
PRODUCT MARKET
COMBINATION (PMC)
EXPORT MARKETING STRATEGY
(EMS)
What is needed to
successfully sell
the export product?
EXPORT MARKETING PLAN:
•Market segment
•Product
•Identity
•Price
•Distribution
•Promotion
•Trading Partner
How to enter the
selected export
market successfully?
EXPORT
BUSINESS PLAN
(INCLUDING
FINANCIAL PLAN
& SCHEDULE
EXPORT ING
ACTIVITIES
FEED-
BACKS
4

5. FIRST STEPS TO BUILDING
AN EXPORT BUSINESS PLAN
• PLAN, but more importanty, IMPLEMENT it!
• Be ready to CHANGE as you LEARN and GROW
• Ensure Management and Staff COMMITMENT
•What do you wish to achieve? (Goals &
targets)
•Capabilities?
•Restrictions?
•Seek AGREEMENT on all aspects of the Plan
5

6. KEEP THE PLAN SIMPLE AND FLEXIBLE
• An Export Busines Plan should be SIMPLE and FLEXIBLE
•Some market information and planning elements
may not be available at the time of drawing up an
initial export plan
•The export plan will generate more information
and understanding as your Company learns more
about exporting and your Company’s
competitive position improves in the Global
market place.
6

7. 7
A GENERAL FORMAT

8. 8
EXPORT MARKETING & BUSINESS PLAN (1)
1. Introduction, Mission and Business Principles
2. Current Market Position
3. Market & Industry Trend
4. Export Audit
4.1 Market Audit
4.2. Competitive Audit
4.3. Company Audit
4.4. S/W/O/T Conclusion

9. 9
EXPORT MARKETING & BUSINESS PLAN (2)
6. Export Objectives
7. Export Marketing Strategy
7.1. Strategy Summary
7.2. Market & Segment(s)
7.3. Positioning Strategy
7.4. Product Strategy
7.5. Branding Strategy
7.6. Pricing Strategy
7.7.Distribution Strategy
7.8. Promotional Strategy
7.9. Trade Partner Strategy
5. Assumptions about the Target Export Market

10. 10
EXPORT MARKETING & BUSINESS PLAN (2)
8. Management Plan
9. Action Plan
10. Financial Forecasts
11. Periodic Review & Evaluation

11. 11
DETAILED
EXPLANATION

12. 12
INTRODUCTION, MISSION AND BUSINESS PRINCIPLES (1)
The first thing  put things and principles into
perspective
•an introduction a sense of location
•who you are, what the company is, what it does
(business concept),
•a short historic track record
•a brief statement on your current position and
performance
•the markets that are currently covered

13. 13
INTRODUCTION, MISSION AND BUSINESS PRINCIPLES (2)
The first thing  put things and principles into perspective:
•a brief description on the set of basic thinking & ideas that
form the basis for the future of your Company’s business
the sense of direction
•the company's mission statement (the company’s
charter)
•where your Company wants to be (the Company’s goal)
•how your Company wants to get there (the Company’s
strategy)

14. 14
CURRENT MARKET POSITION (1)
•The CURRENT SITUATION/CONDITION is the STARTING POINT for
THE FUTURE international market expansion
•As a preparation for compliance to market access requirements
adaptations in the production, marketing and logistics processes
 may require investments.
•An x-ray of the Company’s current market position
 to identify the gap to be closed between the current market
position and desired market position
to clarify to what extent the organization has optimized the
opportunities in the current markets.

15. 15
CURRENT MARKET POSITION (3)
•PRODUCT:
•What products does the Company sell?
•What is their market position?
•What competitive alternatives are available in the
market?
•PLACE:
•What is the Company’s current market coverage?
•Which distribution channels does the Company
use?
•How does this relate to the competition?

16. 16
CURRENT MARKET POSITION (3)
•PRICE:
•What is the Company’s pricing policy?
•To what extent does the Company apply different
pricing from the competition?
•How does the Company apply pricing flexibility in
order to promote sales (e.g. discounts, quantity
offers, contractual tenders etc.)?
•PROMOTION:
•Describe the promotional tools you employ, i.e. the
Company’s promotional mix (trade fair
participation, advertising, Direct Marketing, e-
Marketing etc.).

17. 17
CURRENT MARKET POSITION (2)
•PEOPLE:
•Describe the company's policy towards social
accountability, in terms of occupational health and
safety for the workers, and to society as a whole.
•PLANET:
•Elaborate on the Company’s company's environmental
awareness, eco-mindedness and the Company’s
position on environmental management

18. 18
MARKET & INDUSTRY TREND (1)
Description of important developments - past, present and
future - in the Company’s current and potential markets, at two
levels:
•first, describe the international and target market trends
you can identify for the Company’s industry in generic
terms;
•second, go one level deeper and zoom in on trends you've
identified in pre-selected markets with high potential
(priority countries) to be singled out as the MOST
POTENTIAL ONE based on RELEVANT MARKET SIZE and
FAVORABLE IMPORT GROWTH, and potentially WINNABLE)

19. 19
MARKET & INDUSTRY TREND (2)
Consider important variables:
•economic, political and technological developments
•favorable trade relations
•historical, cultural or geographic characteristics
•affinity and proximity
•market characteristics
•supply chain characteristics
•competitor activity
•market access regulations
•fashion, innovation, and consumer preferences

20. 20
EXPORT AUDIT: TARGET EXPORT MARKET AUDIT
Major aspects/
dimensions
OPPORTUNITES THREATS
Social-cultural
Technological
Economic
Political
Legal
Environmental

21. 21
EXPORT AUDIT: COMPETITIVE AUDIT (1)
THREAT OF SUBSTITUTE PRODUCTS
The availability of close substitute products will increase the
propensity of customers to switch to alternatives in response
to price increases (high elasticity of demand).
Factors that determine the threat of substitute products:
•buyer propensity to substitute
•relative price performance of substitutes
•buyer switching costs
•perceived level of product differentiation

22. 22
EXPORT AUDIT: COMPETITIVE AUDIT (2)
THREAT OF ENTRY OF NEW COMPETITOR
Factors that determine the threat of entry of new
competitors:
•the presence of entry barriers
•economies of product differences
•brand equity
•switching costs or sunk costs
•capital requirements
•access to distribution
•absolute cost advantages
•learning curve advantages
•expected retaliation by incumbents
•government policies

23. 23
EXPORT AUDIT: COMPETITIVE AUDIT (3)
THE INTENSITY OF COMPETITIVE RIVALRY
Factors that determine the intensity of competitive rivalry:
•number of competitors
•industry growth rate
•intermittent industry overcapacity
•diversity of competitors
•level of advertising expenses
•economies of scale

24. 24
EXPORT AUDIT: COMPANY AUDIT
Major aspects/
dimensions
STRENGTHS WEAKNESSES
Men
Money
Means
Methods
Machines
Measurable

25. 25
Strengths Weaknesses
Men  Loyal workforce
 Skilled technicians
 Good account managers
 Limited English language skills
 Limited international marketing
experience
 Routine oriented
 Ageing workforce
Methods  Management by objectives
 Responsibility and
accountability accepted by
management
 Responsibility and
accountability accepted by
management
 Continuous job rotation
 Professional marketing
department
 No professional market information
system
 Time availability
 Dominant product drive
 Dominant financial control
 Low insight in industry benchmarks
 No ISO 9001:2008
 No ISO 14000 compliance yet
 R&D department
EXPORT AUDIT: COMPANY AUDIT
(An Example)

26. 26
Strengths Weaknesses
Means  Sound cash flow
 Good bank relation
 Limited budget for brand building
 No funds for international market research
 Limited budget for process and product
adaptation
Machines  Up-to-date production
equipment
 Packing station
 Preventive maintenance
system
 Limited flexibility
 Energy consumption inefficient
 Foreign maintenance dependability
 Spare part lead time
 Low degree of computerised
manufacturing
Measurables  High customer satisfaction
 Specific product specification
 Sales growth
 Sustainable profitability
 Successful product launches
 Growing customer base
 High production efficiency
 Spare capacity
 Energy bills/costs
 Rejection rate
 Shipping costs
 Average stock level too high
 Occupational hazards and injury incidence
 Employee absentee rate
EXPORT AUDIT: COMPANY AUDIT
(An Example)

27. 27
EXPORT AUDIT: S/W/O/T CONCLUSION(1)
POSITIVE
FACTORS TO
ACHIEVE
OBJECTIVES
NEGATIVE
FACTORS TO
ACHIEVE
OBJECTIVES
EXTERNAL
FACTORS
OPPORTUNITIES THREATS
INTERNAL
FACTORS STRENGTHS WEAKNESSES

28. 28
EXPORT AUDIT: S/W/O/T CONCLUSION (2)
•The main challenges:
•addressing the WEAKNESSES  STRENGTHS (Company’s
strengths and weaknesses are CONTROLLABLE)
•optimizing the impact of the Company’s STRENGTHS to tap
identified market OPPORTUNITIES.
•OPPORTUNITIES and THREATS (UNCONTROLLABLE/given
market conditions)  drivers for company adaptation and
improvement

29. 29
EXPORT AUDIT: S/W/O/T CONCLUSION
•SWOT analysis completed  final decision to export or
not (balance the strong points and opportunities against
the weak points and the threats)
•Does the Company think the organization is STRONG
ENOUGH TO COPE with the extra challenge and workload
of the exporting venture?
•If YES is ready for the Big Jump the next step will be
to focus on the Company’s immediate and potential
competition. Get ready to take them on!!!

30. 30
MARKET ASSUMPTIONS
SOCIAL-
CULTURAL
DYNAMICS
TECHNOLOGICAL
TRENDS
ECONOMIC
DYNAMICS &
TRENDS
ENVIRONMENTAL
CHANGES
LEGAL
ENVIRONMENT
POLITICAL
DYNAMICS
MARKET
DYNAMICS
COMPETITIVE
SITUATION
COMPANY’S EXPORTING
ACTIVITIES:
•Marketing strategies
•Marketing activities
•Cash-flow

31. 31
•We expect the Japanese economy to recover as of
next year.
•We expect the distribution system to further
concentrate to industry captains and Large Scale Retail
buying groups.
•We assume a continuation of trade liberalisation.
•The product life cycle will be extended through
functional innovation, including packaging for small
households in the consumer market.
MARKET ASSUMPTIONS
(An Example)

32. 32
•The growing number of young consumers will create
a demand for new varieties and brands.
•We expect a solid domestic market development
ensuring sufficient cash flow for sustaining our export
venture.
•We assume that the exchange rate of the Japanese
Yen in relation to the US dollar remains relatively
stable.
MARKET ASSUMPTIONS
(An Example-continued)

33. 33
EXPORT OBJECTIVES: SMART
•SPECIFIC:the Company’s product(s) and market(s) should
be specified.
•MEASURABLE: the Company’s objectives should be
quantitative, expressed in terms of sales value, sales
growth, market share, number of customers etc.
•ACHIEVABLE: the Company’s objectives should be based
on the Company’s company's strengths and its critical
success factors (the internal potential) and market
opportunities (external potential).

34. 34
EXPORT OBJECTIVES: SMART (2)
•REALISTIC:the Company’s objectives should be realistic in
the sense that the required investments remain in
proportion to expected gains.
•TIME-LED: set a specific period within which the
Company’s objectives are to be achieved. It is advisable to
formulate short-term, mid-term and long-term objectives.

35. 35
Export Marketing
Strategy

36. 36
EXPORT MARKETING STRATEGY: TARGET SEGMENT
Market Segmentation
Market Segment
A subgroup of people or organizations sharing one or
more characteristics that cause them to have
SIMILAR PRODUCT NEEDS in the export market
Market
People or organizations with
needs or wants and the ABILITY and WILLINGNESS TO
BUY in the export market
Market Segmentation
The process of dividing a market into meaningful,
relatively SIMILAR, IDENTIFIABLE segments or groups
in the export market.

37. 37
EXPORT MARKETING STRATEGY: TARGET SEGMENT
Different Basis of Segmentation
GEOGRAPHIC
SEGMENTATION
•Regions
•Cities
•States
•Countries
DEMOGRAPHIC
SEGMENTATION
•Age
•Gender
•Income
•Occupation
•Religion
•Social class
•Family size
PSYCHOGRAPHIC
SEGMENTATION
•Lifestyles
•Personality
•Values
•Beliefs
BEHAVIORAL
SEGMENTATION
•Occasion of usage
•Benefits sought
•Usage rate
•Loyalty status

38. EXPORT MARKETING STRATEGY: POSITIONING
38
•Positioning is about finding the “BEST POINT/PLACE IN THE
CONSUMER MIND  IN THE MARKET” for the product/
service and the most appropriate for the target market. (It is
all in the consumer’s mind!)
•The process of developing a competitive position for a
brand starts with the segmentation of the market, followed
by targeting (selecting a particular segment) to whom a
product or a brand is to be positioned (=positioning).

39. EXPORT MARKETING STRATEGY: POSITIONING
39
•In order to explore competitive values to be
wrapped in the product or brand to be positioned,
we should analyze the target consumers (
CONSUMER INSIGHTS) and the competitors’
product/brands.( COMPETITORS MAPPING)

40. 40
•“Class”
•Pride
•Distinctive look
•Practical
•Fuel Economy
•Affordable
•Sporty
•Fun
•Young
•Conservative
•Somewhat
older
•Mercedes •B.M.W.
•Toyota.
•Honda.
•Mitsubishi
•Lexus
EXPORT MARKETING STRATEGY: POSITIONING
Competitive Mapping

41. 41
Raw
Materials
Auxiliary
Materials
COMBINED &
PROCESSED
PRODUCT
TO FULFILL
THE NEEDS &
SATISFY THE
WANTS OF
CONSUMERS/
CUSTOMERS
METHODS/
TECHNIQUES
WORKS
EXPORT MARKETING STRATEGY: PRODUCT
A Definition of Product

42. 42
EXPORT MARKETING STRATEGY: PRODUCT
42
Functions
Usage
PRODUCT
Attributes/
Features
BENEFITS VALUES
C
O
N
S
U
M
E
R
S
Components of a Product

43. 43
•Develop the product range in accordance with
•the CUSTOMER NEEDS and
•prevailing MARKET CONDITIONS
(competition and rules and regulations) in the
target markets.
•Can you use the Company’s existing product
assortment or does it need adaptation?
Product Development
EXPORT MARKETING STRATEGY: PRODUCT

44. 44
•Do the Company’s products offer features (physical
property of the product) or benefits that add value to the
customer/consumer?
•Are there elements of the Company’s intrinsic product
which are not appreciated by the Company’s customers?
•Always remember that product safety, recyclability and
user-friendliness are dominant success factors in the
developed markets due to legislation.
Features/AttitubesBenefits Analysis
EXPORT MARKETING STRATEGY: PRODUCT

45. 45
Unique Selling Proposition (USP)
Before developing a USP, it helps to know:
•The features of the product/service
•How and why the customers uses the product services
•Features of competitive products
EXPORT MARKETING STRATEGY: PRODUCT

46. 46
EXPORT MARKETING STRATEGY: PRODUCT
Unique Selling Proposition (USP) (continued)
Steps to develop a USP (1)
•List all main features/attributes of the product.
(Features/ attributes describe what the product/service does).
Features can be: quality, type and level of service, price,
functional or technical characteristics.
•Convert each feature/attribute  benefit.
(A benefit describes what customer need it fulfils).
Customer buy benefit, therefore obtaining value from that.
An example:
•Feature of an industrial machine: reliability, which means
available for more hours of the working day ( benefit for
the buyer).

47. 47
EXPORT MARKETING STRATEGY: PRODUCT
Steps to develop a USP (2)
•Rank the benefits according to their relative importance to the
customer
•Group the benefits into standard ones, i.e. available to all
competitive products or the different and special (unique) to
your product/service)
•If no anything special or different, you have to develop at least
one unique benefit ( IT IS ALL IN THE MIND = PERCEPTION)
Unique Selling Proposition (USP) (continued)

48. 48
EXPORT MARKETING STRATEGY: PRODUCT
•Packaging  needs market adaptation (advisable to
include the trade partner in the packaging adaptation
decisions)
•Packaging must be PRACTICAL, CONVENIENT and
PROMOTIONAL  engineering, design, graphics,
distribution and marketing issues to be addressed over
packaging solutions for exports.
•New packaging issues in developed markets:
•environmental concerns,
•safety concerns
Product Packaging

49. 49
EXPORT MARKETING STRATEGY: PRODUCT
• Product life cycle stage: Does the Company’s product
fit in the current life cycle stage in the market?
• Product profitability: Does the Company’s margin justify
the Company’s market entry efforts?
• Product seasonality: Does the Company’s timing of the
Company’s product launch match seasonal demand, or
is there a possibility for counter season offering?
Critical Success Factors:

50. 50
EXPORT MARKETING STRATEGY: BRANDING
Operating in a foreign market under the Company’s own BRAND
NAME requires SUBSTANTIAL INVESTMENTS.
Only advisable if,
•It will lead to higher revenues,
•It will create binding and stimulate repeat purchases
•the Company’s own brand and company image is appreciated
by the trade
•Done in STEP-WISE, GRADUAL APPROACH
Alternatives to own branding that can be considered:
•Operate under partner’s companies own brand name or
private label
•Make product according to the buyer’s specifications (with or
without licensing agreement)

51. 51
THE
BASIS
(Product/
Service)
THE
IDENTIFIER/
RELATOR
(Name/
Logo)
THE
NARRATOR
(The Message/
Advertisement)
THE
PRESENTER
(Packaging)
Should be
matching to
each other
THE
PROXY OF
VALUE
(The Price)
Copyright Rahim Jabbar/ @ 2010
EXPORT MARKETING STRATEGY: BRANDING
Identity system
Components of a Brand

52. 52
EXPORT MARKETING STRATEGY: PRICING (1)
COST-PLUS PRICING.
The Company’s production costs PLUS the PROFIT that needs
to be made.
This strategy is used mostly in opportunity marketing.
The focus is more on selling instead of sustainable long term
marketing.
COMPETITIVE PRICING
With competitive pricing, the exporter establishes the
Company’s MARKET PRICE by benchmarking with
competitors' prices and DIFFERENTIATE THROUGH
MARKETING MIX INCENTIVES.
The result should be a better price performance ratio than the
competitor average.

53. 53
EXPORT MARKETING STRATEGY: PRICING(2)
PENETRATION PRICING
Penetration pricing is applying LOW MARGINS or even apply
marginal costing (in case present sales cover the contribution to
overheads while the Company still has spare capacity to utilise)
and SELL AT THE LOWEST PRICE of all the Company’s competitors.
The focus is on ENTRY and HIGH VOLUME.
A negative aspect  the product/company will also receive A
LOW QUALITY IMAGE (or PRICE FIGHTER) which may hinder
upward marketing later on.
(PERCEIVED) VALUE PRICING.
Adopting VALUE PRICING is suitable when there is no competition
(yet) or when the product is perceived as UNIQUE or SUPERIOR.
The VOLUME may be SMALL, the MARGINS are HIGH, which offers
the Company an opportunity to lower the price at a later stage
and increase volume.

54. 54
EXTPORT MARKETING STRATEGY: DISTRIBUTION
Basic questions to answer in formulating a
distribution strategy:
•What am I selling?
•Who are my prospects/target consumers?
•Where are they?
•How can I reach them?
•How does the distribution channel work?
•What does it imply to sell through this
channel (trade margins)
•How many channels should I use?

55. 55
EXTPORT MARKETING STRATEGY: DISTRIBUTION
Manufacturer
Cluster
Export
Organization
Source: CBI, Export Planner, 2004
Importer
Buyer
Buyer
Agent
Retailer
CUSTOMER
Country or
Tariff
Border
E-commerce
Joint venture
Trade partner
LABYRINTH OF
INROADS

56. 56
EXTPORT MARKETING STRATEGY: DISTRIBUTION
SIMPLIFIED ENTRY STRUCTURE
Trader
Exporter
Country or
Tariff
Border
Agent
Trader
Importing
Wholesalers
Distribution
(Outlets)
Customer

57. 57
EXTPORT MARKETING STRATEGY: DISTRIBUTION
THE AGENT
•An independent person or company who merely
intermediates (bringing exporter/seller and importer/buyer
together).
•His services are paid (usually by the exporter) in the form of a
commission, which is a percentage of the (CIF) value of the
goods imported.
THE IMPORTER
•An independent company, specialized in importing a certain
range of goods from abroad.
•An importer buys directly from the exporter and thus
becomes the rightful owner of (or 'takes title' to) the goods.
•In turn, he will try to sell the goods to wholesalers or, in the
case of professional goods, to customers.

58. 58
EXTPORT MARKETING STRATEGY: DISTRIBUTION
THE IMPORTING WHOLESALER
An importing wholesaler is a company that not only imports
but also operates facilities to forward the goods into the
distribution channels by means of promotional support.
THE BROKER
•A broker is an independent person or company who,
somewhat like an the agent, brings together buyer and
seller and gets paid by the party who hired him.
•The broker holds neither title, nor stock.
•Occasionally, he can provide consultancy services, based
on his sector knowledge.

59. 59
EXTPORT MARKETING STRATEGY: DISTRIBUTION
THE TRADING HOUSE
•A trading house is an independent company that
specializes in trading certain range(s) of goods.
•A trading house or company buys and sells on its own
account and at its own risk.
•It decides on its own export assortment.
•Trading houses usually have a strong commercial
acumen and professionalism.
•Sometimes their after-sales performance, which is
necessary for most technical and professional products, is
weak.
•A trading company can be located in the Company’s own
country or in the target country.

60. 60
EXTPORT MARKETING STRATEGY: PROMOTION
The AIDAS formula = the FIVE (5)
KEY GOALS of any effective
promotional mix:
•Get Attention
•Capture Interest
•Create Desire, that
•Leads to Action, and
•Customer Satisfaction

61. 61
EXPORTERS/
TRADERS/
SUPPLIERS/
MANUFACTURERS
MESSAGES
ABOUT
THE EXPORT
PRODUCT &
COMPANY
A VARIETY OF
COMMUNICATION
MATERIALS
DISTRIBUTED
& PUBLICISED
& BROADCASTED
RECEIVED
AND
INTERPRETED
PROSPECTS/
BUYERS IN
THE TARGET
MARKET
INLFUENCE
HIS/HER/THEIR
OPINION, ATTITUDE,
BEHAVIOR
RESPONSES
(among other BUYING
OR OTHERWISE)
FEED-
BACKS
EXTPORT MARKETING STRATEGY: PROMOTION
THE CYCLE OF
MARKETING
COMMUNICATION

62. 62
PROMOTIONAL
ACTIVITIES
PERSONAL
SELLING
SALES
PROMOTION
PUBLIC
RELATIONS
DIRECT MAIL
& E-MAIL
TRADE FAIRS
& EXHIBITION
ADVERTISING
& WEBSITES
SPONSORSHIP
PROMOTIONAL MIX SHOULD BE DESIGNED SO AS TO MUTUALLY STRENGHTEN
ONE ANOTHER (EFFECTIVE PROMOTIONS).
ACTIVITIES WITH ASTERISKS (*/**/***) ARE SUITABLE FOR EXPORT MARKETING
***
**
*
EXTPORT MARKETING STRATEGY: PROMOTION

63. 63
EXTPORT MARKETING STRATEGY: TRADE PARTNER
It takes considerable amount of TIME, ENERGY and
MONEY to establish a position in the complex in the
developed market as a target export destination
Exporter should find a trading partner that would
likely be having LONG-TERM PERSPECTIVE and NURTURE
MUTUALLY ADVANTAGEOUS RELATIONSHIP with the
buyer.

64. 64
Management Plan

65. 65
ASSIGNING MANAGEMENT RESPONSIBILITIES
•The Company’s export venture should by no means
jeopardize the Company’s domestic position.
•Consider CRITICAL CONTROL POINTS and CONTINGENCY
PLANS in order to MANAGE THE RISKS of this international
adventure.
EXPORT MANAGEMENT PLAN (1)

66. 66
ASSIGNING MANAGEMENT RESPONSIBILITIES
The followings whould be resolved
•Who will be responsible?
•How will operations be run?
•Which systems will be in place?
•How will the workload be divided?
•How will your Company control EXPORT MARKETING
activities, or balance them and their claim on the
Company’s capacities and resources with the
Company’s DOMESTIC MARKETING EFFORTS?
EXPORT MANAGEMENT PLAN (2)

67. 67
Exporting Action Plan

68. 68
EXPORT ACTION PLAN (1)
Action Plan Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget Year
1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec in USD
1Kick-off export venture
Establish Task force
Cultivate commitment at all levels
2Establish learning organisation
Attract young marketing
professional 5000
Develop new systems and
procedures 2000
Implement skill enhancement
programme 2100
3
Establish market information
system
Develop terms of reference and
benchmarks
Assign market research tasks
Research first priority markets 6000
Reseach second priority markets 3000
4
Establish product adaptation
system
Develop procedures between
marketing and production dept
Product adaptation and innovation 9000

69. 69
EXPORT ACTION PLAN (2)
Action Plan Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget Year
1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec in USD
5
Implement process adaptation
programme
Cost saving programme
Environmental management
programme 4000
6Direct Marketing Campaign
Collect prospect list 1000
Prepare one-on-one mailings in first
priority country
Run the mailing 1000
Follow-up 1000
Prepare one-on-one mailings in
second priority countries
Run the mailing
Follow-up
7Upgrade website
Develop functional design
Subcontract the webdevelopment 2500
New website online

70. 70
EXPORT ACTION PLAN (3)
Action Plan Quarter 1 Quarter 2 Quarter 3 Quarter 4
Budget Year
1
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec in USD
8
Trade fair participation in first
priority country
Select appropriate fair
Study exhibitors and identify
competitors and prospects 600
Make reservations
Prepare samples, documentation
and stand 3000
Arrange logistics
Arrange free publicity and
advertorials 1000
Prepare and send invitations 400
Participate 7000
Field research and follow-up visits 1500
Follow-up 1000
9
Introduce CRM as key management
tool
Compare different software
packages
Purchase and implement CRM
system 2500
10
Performance monitoring and
evaluation

71. 71
Financial Forecasts

72. 72
BUSINESS = MONEY-EARNING ACTIVITIES
THAT REQUIRE MONEYMONEY MATTERS
BASIC QUESTIONS BUSINESS PEOPLE ASK THEMSELVES ABOUT
•How much money am I bringing in? Sales revenues
•How much am I spending? Expenses for activities
•Is my business making any money?Revenues - Expenses
•What’s the value of what my business owns?Assets
•How much does my business owe to others?Liabilities
•What is my business worth?Value of ownership(= Equity)

73. 73
PROFIT PRICE VOLUME COSTS
= X -
CONSTRAINED BY
•Market space
for the product
field in the TEM
CONSTRAINED BY
•Competitive
environment
in the TEM
DRIVEN BY
•Structure
•Inputs
•Process
•Activities
BASIC PROFIT EQUATION
IN EXPORT BUSINESS
In order to MAXIMIZE PROFIT, exporter should:
•Improve operational efficiency and effectiveness
•Economize costs
•Maximize volume of export sales gain more share
•Optimize export price

74. VARIABLE
COSTS
CONTRIBUTION
MARGINS
TO COVER
FIXED COSTS
+ OPERATIONAL
INCOME
SALES
REVENUES
CONVERTED
INTO LOCAL
CURRENCY
EXPORT
PRICE
VOLUME/
QUANTITY
OF GOODS
EXPORTED
X
SALES REVENUES ARE TO COVER VARIABLE
COSTS AND CONTRIBUTES TO FIXED COSTS

75. 75
VARIABLE COSTS AND FIXED COSTS
EXAMPLES OF FIXED
COSTS
4000 PAYROLL
4100 RENT
4101 FIXED COSTS BLDNGS
4102 REPAIR/MAINTENANCE
4103 GAS,WATER.ELECTRIC
4104 SERVICE COSTS
4109 OCCUPANCY COSTS
4300 MILEAGE COMPENSAT
4319 AUTOMOBILE COSTS
4500 PROMOTION/ADVERTISE
4520 TRAVEL/HOTELS
4522 MISCELL. TRAVEL
4530 REPRESENTATION
4532 DEBTOR NON-COLLECT
4599 SALES COSTS
4600 INTERESTS & COSTS
4603 INTEREST TAXES
4604 INTEREST DEPOSITS
4700 ACCOUNTANTS
4710 CONSULTANCY
4715 STATIONERY
4720 TELECOM/MAIL
4725 MEMBERSHIPS/SUBSCR.
4735 COMPUTERS
4750 INSURANCES
4790 MISCELL. COSTS
VARIABLE COSTS are expenses that
change in proportion to the activity of a
business (volume-related and are paid
per quantity produced).
Variable costs are sometimes called unit-
level costs as they vary with the number
of units produced.
Direct labor and overhead are often called
conversion cost, while direct material and
direct labor are often referred to as prime
cost.
FIXED COSTS are business expenses that
are not dependent on the level of goods
or services produced by the business.
They tend to be time-related, such as
salaries or rents being paid per month.

76. 76
VARIABLE
COSTS
CONTRIBUTION
MARGINS
VARIABLE
COSTS OF
EXPORT
GOODS
SOLD
VARIABLE
OPERATIONAL
COSTS
FIXED
OPERATIONAL
COSTS
OPERATIONAL
INCOME
BREAK-EVEN IS ACHIEVED WHEN CONTRIBUTION
MARGINS EQUAL FIZED COSTS
CONTRIBUTION MARGIN OPERATIONAL INCOME

77. D
I
V
&
I
77
THE
BUSINESS
FIRM
VENDORS BUYERS/
CUSTOMERS
Services/
Products
In
Services/
Products
Out
Expenses
tor
Inputs
Sales
Revenues
MONEY IN
MONEY OUT
A PRUDENT BUSINESS ALWAYS STAYS ON TOP OF ITS CASH FLOW: EVEN A
PROFITABLE BUSINESS CAN GO BANKRUPT IF CASH IS NEGATIVE (UNABLE TO
REPAY MONEY OWED TO OTHERS, TO PAY FOR DAILY NEEDS,ETC.)
 A FIRM SHOULD TRACK ITS CASH-FLOW
CASH IS KING, PROFIT IS THE QUEEN
FINANCING
SOURCES
F
U
N
D
S
Dividends &
interests

78. 78
THREE CATEGORIES OF CASH-FLOWS
1.OPERATIONAL CASH FLOWS: Cash received or
expended as a result of the company's internal business
activities. It includes cash earnings plus changes to
working capital. Over the medium term this must be net
positive if the company is to remain solvent.
2.INVESTMENT CASH FLOWS: Cash received from the sale
of long-life assets, or spent on capital expenditure
(investments, acquisitions and long-life assets).
3.FINANCING CASH FLOWS: Cash received from the issue
of debt and equity, or paid out as dividends, share
repurchases or debt repayments.

79. 79
In US$ January February March
Opening cash balance $ - $ 599.50 $ 449.50
Operating Cash Flow
.. List of all operating items
(+/-) $ (2,650.50) $ (500.00) $ 750.00
Investing Cash Flow
.. List of all investing items
(+/-) $ (1,750.00) $ (650.00) $ -
Financing Cash Flow
.. List of all investing items
(+/-) $ 5,000.00 $ 1,000.00 $ -
Total cash flow for the month $ 599.50 $ 449.50 $ 1,199.50
Closing cash balance $ 599.50 $ 449.50 $ 1,199.50
A FIRM SHOULD TRACK ITS CASH-FLOWS

80. 80
EVALUATION & REVIEW
OBJECTIVES &
TARGETS
ACTUAL
BUSINESS
RESULTS
EVALUATION: CAUSAL FACTORS THAT
CONTRIBUTE TO THE SUCCESS OR ANY
DEVIATIONS FROM THE PLAN
ADAPT & REVISE THE PLAN  BUSINESS
ACTIVITIES
A SUCCESSFUL EXPORT BUSINESS!!!
Export Marketing & Business Plan

81. 81
Summary
&
Conclusion

82. 82
TEN STEPS TO ENSURE YOUR SUCCESS
IN EXPORT BUSINESS
ANALYSE
MARKET
POTENTIAL
IN TARGET
MARKET
EVALUATE
YOUR
PRODUCT’S
POTENTIAL
DETERMINE
THE WAY TO
ENTER
THE TARGET
MARKET
DEVELOP
A STRONG
DETERMI-
NATION
APPLY THE
MARKETING
STRATEGY
EFFECTIVELY
ORGANIZE
THE EXPORTING
OPERATIONAL
TEAM
DEVELOP
A COMPETITIVE
MARKETING
STRATEGY
IDENTIFY
TECHNICAL
AND
ADMINISTRATIVE
CHALLENGES
EVALUATE
AND CONTROL
EXPORTING
BUSINESS
OPERATION
ALLOCATE
RESOURCES
REQUIRED
CONTINUOUSLY
REVIEW EACH AND
EVERY STEP OF
EXPORTING BUSINESS
ACTIVITIES AND
INTEGRATE
ALL ACTIVITIES
(1) (2) (3) (4)
(5)
(6)
(7)
(8)
(9)
(10)

83. 83
THANK
YOU

84. 84
REFERENCES
•Capon, Noel and James M. Hulbert, “Marketing Management
in the 21st Century”, Prentice Hall, 2001
•Davidson, Hugh, “Even More Offensive Marketing”, Penguin
Books, 1997
•Hiam, Alexander and Charles D. Schewe, “The Portable MBA
in Marketing”, John Wiley & Sons, Inc., 1992
•Jabbar, Rahim, “Approaches towards Segmentation,
Targeting & Positioning”, 2002, (unpublished)
•Laman Trip, Johan F., “Export Planner”, 5th Edition, Center for
the Promotion of Imports from Developing Countries, CBI, 2004
•U.S. Small Business Administration, “Breaking Into The Trade
Game: A Small Business Guide to Exporting, 3rd Edition, 2005