Competing in Europe

Competing in Europe Competing in Europe

Presented @ GATEWAY SEMINAR WATERFORD CEBBy John F. Whelan 2009

Headlines 2009

Changing landscapeChanging landscape

Banking Crisis

Introduction

Setting the scene

Changing landscape

Options for companies in difficulty

Managing the situation

Current issues

TIME to

DECIDE !

MarketMarket ResearchResearch

DistributorDistributorSearch &SelectionSearch &Selection

BrandingBrandingEC markEC markPromoPromo

>>tion>>tion

Schemes of Arrangement

W/CAPITAL

Examinership : an overviewCommercial requirements for survival in export markets;

good underlying business

sufficient working capital

long term funding – typically by way of equity investment.

WHEN THE TIDE GOES OUT WE SEE WHO HAS BEEN SWIMMING NAKED.

Warren buffet

Impact …. CONSUMER BEHAVIOURCONSUMER BEHAVIOUR

PrefCerentiaCClCreditoCrsCUSTOMER

HOW CUSTOMERS ARE REACTING?

THERE ARE ATITUDES & BUYING PATTERNS CHANGING

HOW EASY IS FOR THEM TO SWITCH SUPPLIER?

OR STOP BUYING YOUR PRODUCT or SERVICE?

WHAT WILL HAPPEN WHEN THE RECOVERY KICKS IN?

• PET FOOD CO. BASED IN NAVAN,

CO. MEATH

• GED O’LEARY MD AND CO-FOUNDER

• SUPPLIES PET FOOD wholesalers in UK, Sweden, Holland, Denmark and Finland

• Tries to bring out new product every

• Latest new product, dry roasted ham bone with soft meat and bone both edible for dogs

PET TREATS.IE

• Currently investing in new equipment which will greatly reduce moisture content , and reduce the level of packaging , adds to the shelf

• Differentiates his product form the competition

• SALES have remained stable through out 2009

• Irish cost base a constant challenge

• Innovation vouchers , Stabilisation Fund , Go

Global fund have helped

PET TREATS.IE--contd

Informal Schemes of Arrangement

YOUR OLD MARKET PLAN IS OBSOLETE

NEW MARKET SEGMENTS ARISING FROM CRISES

CONSUMER REACTION VARIES ACROSS THE CATEGORIES

TRUSTED BRANDS LESS VULNERABLE TO DOWNWARD PRESSURE ON PRICE AND MARGINS

ImplicationsManufacturer margins may be under pressure as buyers resist price increases>>>>

……May be winners and losers depending on negotiating strength

……Larger players may take the opportunity to increase pressures on smaller companies who cannot absorb price increases

Is it all Doom and Gloom?

How Should Exporters React?

Avoid a market entry strategy which is based on price

Always vulnerable to being undercut

If you sell on price , you will loose on price

Develop a sustainable market position which is constantly reviewed/tested internally

Sustainable Market Position

CONSUMERS ;

Through the understanding of how consumers’ needs and wants are changing Irish companies should look to develop products which satisfy consumer needs

Innovation the key

Sustainable Market Position

Buyers ;

-will have an ongoing requirement to meet their customers needs.

As suppliers, Irish companies must know the role their products are playing within the buyer’s portfolio

The greater the overall value of the product the harder it will be to replace with a cheaper alternative

Can the IEA help??

Yes

Managing

VALUEVALUE

PRATICALPRATICAL

FOCUSEDFOCUSED

Managing Your export BusinessManaging Your export Business

The IEA works to ensure that: International markets are easily accessible to Irish

exporters The cost of trading abroad is minimised The infrastructure to reach export markets

is efficient and cost effective Exporters are given maximum Government support to

develop their international business. The Regulatory burden on exporters is minimised

The IEA represents the whole spectrum of Irish exporters, including SME’s, multinationals, as well as service providers who are essential facilitators of our international trade.

>>>>>>>>>>>>Lobbying for your needs 24/7<<<<<<<<<<<<<<<<<<<<<<

Membership benefits

Export Advice & AssistanceVisa & Legalisation ServiceTenders for Public procurementCustoms and tariff adviseCountry Reports Export Documentation Legal Advice First Query service Transport costs, routes, regulationsBrand DevelopmentMarket Entry StrategyForeign Currency /Treasury adviseIP >Trade marks / Patent adviseExport Credit InsuranceGrant Funding

TRANSPORT AND LOGISTICS > Programmes and Assitance

PROPS>Promotion of Short Sea Shipping SKEMA >Knowledge platform for

maritime and logistics industry GDP>Good Distribution Practice for Life

Sciences industry Transport Volumes and destinations

(exports and imports) Dangerous Goods Safety Advisory

courses

Membership benefits

Export Programmes

Food & Drink export market development.

Life Sciences Ireland , supply chain development .

General product Export market entry , channel development

ICT/Software accelerator programme

Brand Audit and Clinics

Customs tariff /compliance, audits and clinics

IP audits and clinics

CONSULTANCY The IEA have a panel of consultants ready to assist members with specific expertise in ;

Market Research

Buyer Search

Market Development

Channel Sales Development

E – Commerce

European market strategies

Asia markets

Transport and Logistics

Customs and Tariffs

Patents and Trade marks

Agents and Distributors agreements

Export Credit insurance/Product Recall insurance

Export finance and currency management

THANK YOUTHANK YOUANY ????ANY ????John whelanJohn whelan2009 2009