Growing Global Sales A View from the Trenches by Kevin LaMontagne.

Growing Global Sales

A View from the Trenchesby

Kevin LaMontagne

2

Goals of this Presentation• Share the international business experience of the

Fulton Companies• Compare/Contrast• Relate• Learn• Encourage

3

About the Fulton Companies

4

A brief history of Fulton…

2012

5

Fulton’s VisionTo be the Premier Provider of Innovative Heat Transfer Equipment and Energy Management Solutions

6

Fulton by the Numbers• Sales: 45% outside of the USA• Employees: 60% outside of the USA• Operations on the Ground

• Oswego County: 1949• England: 1960’s• Canada: 1980’s• China: 1990’s• Switzerland: 2011

• Physical Locations as of 2012:Pulaski, NY (HQ) Hangzhou, ChinaAlliance, OH Ningbo, ChinaHouston, TX Shanghai, China

Toronto, CanadaBristol, EnglandZurich, Switzerland

7

What Fulton Has Learned

Life in the SerengetiAfrican Proverb

Every morning a gazelle wakes up.It knows it must run faster than the fastest lion or it will be killed.

Every morning a lion wakes up.It knows it must outrun the slowest gazelle or it will starve to

death.

It doesn't matter whether you are a lion or a gazelle…

When the sun comes up, you better start running.

9

The Sun is UpYou Bett er Start

Running!

10

3 Stages of Growing Global Sales

ResearchExport

Invest

11

3 Stages of Growing Global Sales

ResearchExport

Invest

12

Research – Where to Start

GoogleCIA World Factbook

Competitor Websites

13

More on Research• M.B.W.A• Management By Walking Around

• R.B.T.T.P• Research By Talking To People

14

More on Research• R.B.T.T.P• Research By Talking To People

• Talk to your customers• May export your products• May use your products in their export products• Referrals to distributors

• Foreign Trade Shows• Google• US Department of Commerce• Foreign country government bureaus• Trade Associations• Ask people you know and trust!

15

3 Stages of Growing Global Sales

ResearchExport

Invest

16

Export: Channels• Foreign distributors• US-based export distributors• OEM components

17

Export Channel: Foreign Distributors• Expect business plans

• Visit any prospects• Meet the people• See the facility

• Ownership of product certifications

• Exclusivity – Avoid!

18

Export Channel: US Based Export Distributors

• As with foreign distributors• Expect a business plan• Visit any prospects• Avoid exclusivity

• Special export pricing considerations• Policing USA sale vs. export

19

Export Channel: OEM Components• Definition: Including your product on another

product which is eventually exported• Strategic connection with your OEM customer• Value-added marketing by association• Builds your brand in new markets

20

Export – Considerations Product

Local preferences Training Codes & licenses Landed cost price levels

Sales Customer service Training Printed sales materials Users manuals

Aftermarket Warranty Training Field service Availability of spare parts

Don’t forget: Languages

Product labels Sales materials Manuals

Packaging/labeling laws Units of measure

21

3 Stages of Growing Global Sales

ResearchExport

Invest

22

Invest• Distribution OR manufacturing• Joint Venture• With foreign company• With a related US company

• Wholly Owned• Acquisition• Start-up

• Regional Hub

23

Regional Hub Concept• Fulton has “Regional Hubs” in China, UK and

Switzerland• New Example: Turkey• Population: 78 million (1.1%)• % of World GDP: 1.5%• Last 3 Years Growth: 0.0%

24

Bordering Border9.6%

Bordering Turkey3.1%

Turkey1.5%

% of World GDP & Growth Rates

3-Year Growth

Rate2.2%vs.

USA/Canadaat 0.0%

25

Web Presence• Today: Mandatory• Considerations:• Language and cultural differences• Product catalog• Availability• Distributors• Codes• Pricing

• Protect your core!

Airplane Reading… you will need some!

• Everything by Thomas Friedman, but especially The World Is Flat

• One Billion Customers by James MacGregor• Lonely Planet Travel Guides• CIA World Factbook

• https://www.cia.gov/library/publications/the-world-factbook/

27

Thank you, don’t panic and good luck!• My Contact Info:

Kevin LaMontagneThe Fulton Companies

[email protected]

(315)298-7157