Welcome and programme Session 2-3 02/05/2015. Geneva goals Critical thinking process to further develop and organize your export marketing activities.

Welcome and programme

Session 2-3

02/05/2015

Geneva goals

• Critical thinking process to further develop and organize your export marketing activities (knowledge, instruments and skills)

• improving the export possibilities (preparation) and success rate (implementation) of your own companies export activities.

Centre for the Promotion of Imports from developing countries 02/05/20152

Geneva outcomes

• Market intelligence for decision making!

• Matching internal audit with market realities• Verification of market assumptions• Verification of first ideas on market entry strategy

• Discussion with your pears and expert• First steps to (writing) your market entry strategy• Understanding of next steps

Centre for the Promotion of Imports from developing countries3 02/05/2015

Geneva programme

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Date Morning Afternoon

Fri 1-5

Sat 2-5 training training

Sun 3-5 training EMP

Mon 4-5 Shop visits ???????????

Tue 5-5 Vitafoods Vitafoods

Wed 6-5 Vitafoods Vitafoods feedback

Thu 7-5 training

1 Introduction

2 EMP recap

3 EMP II

4 The EU NIHP market

5 Consumer trends

6 Industry trends

7 Segments and channels

8 Market access requirements

9 Market access requirements

10 Opportunities for NIHP

11 Opportunities for NIHP

12 Market intelligence



15 Programme close


Export marketing plan – Part II

Session 2-3

02/05/2015

The EMP - a recap


• Very useful tool for: – Newcomers to international trade, – Entrepreneurs with export

experience/presence– internal and external analysis– From price-taker to price-maker

• Marketing and management instrument – Shared vision of your company.– Based on evidence – Living document

• Structuring and systemizing your market approach

7

The Export Marketing Plan

❑ Your company and your role in the supply chain❑ The opportunities for your company in the export market❑ How to match what you offer to what the market wants❑ Focus on USPs, offering value to customers and communicating this

effectively❑ Who are your possible clients❑ Where to find these clients❑ How to get to these clients❑ Predict the profitability of the export venture



D. Sales & Marketing PlanMarket Entry Strategy – Action Planning – HR and

management - Budgeting

CBIs EMP process for South Africa


Pretoria

EMP IUnderstanding EMP

structureYour internal audit

First ideas on market entry

Geneva

EMPIIMarket intelligence

Market confrontation – SWOTRoad to market entry strategy

Follow up training/guidance

EMP IIIAction planning

Human resource / management needs

Budgeting

Next to other training and guidance on product development, marketing, promotion, etc.

EMP Structure

• Chapter 1, 2 and 3 Situation analysis• Chapter 4 and 5 Market research and audit• Chapter 6 SWOT Conclusions• Chapter 7 Competitor analysis• Chapter 8 and 9 Market assumptions and export objectives• Chapter 10 Export market strategy• Chapter 11, 12, 13 Planning, management and budgeting


Step A: Business audit

Internal analysis: Strengths & Weaknesses

–Strategic profile:

› Who are you?

› What do you do?

– Identification of your current product-market combinations


Step A: Business audit

Internal analysis: Strengths & Weaknesses

– What are your current results in these markets?

– What do you need to be successful in these markets (Critical Success Factors)? And how well do you score on these CSFs?

– What are your gaps in terms of current practice?

– Is your company ready to export to the EU?


Step B: EU market audit

External analysis: Opportunities & Threats

• What’s the business environment? Look at developments at levels and factors below. Translate this into opportunities and threats


Factors

Socio-cultural

Technological

Economic

Environmental

Political

Demographic

Levels

Consumer

Industry

Global/EU


External analysis: Opportunities & Threats

• Market research can help you find the right market for your product market combinations

• Find your MARs and best markets Translate into Opportunities and Threats

CBI and partner organisations can help you!



Competitive Environment:Identify your competitive edge and your critical success factors (CSFs) compared to your competition!


Competitive Rivalry

within an industry

Bargaining power of suppliers

Bargaining power of

customers

Threat of new entrants

Threat of substitute products


Internal analysis –SW-

External analysis -OT-

17

SWOT: Extracting conclusions

!! Weaknesses to be addressed in ECP action plan!!


Strengths vs Opportunities = Primary focus in EMP; Core competencies

Weaknesses vs Opportunities = Secondary focus in EMP; Internal action points

Strengths vs Threats = Possible future focus; Competitive strategy

Weaknesses vs Threats = Problem areaNo focus

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Step C: SWOT

Where does your company have the best chances? Define your:

• Products• Markets• Sales proposition (USPs)

Weaknesses?

Make note of your weaknesses and take them up in your ECP action plan

02/05/2015

Sales objectives and export targets

Verify your market assumptions

• Economic developments

• Difficulty of market entry

• External developments

Check export objectives


SMART Objectives

• Specific: the product(s) and market(s) should be specified • Measurable: the objectives should be quantitative, expressed in

terms of sales value, sales growth, market share, number of customers etc.

• Achievable: the objectives should be based on your company’s strengths and its critical success factors (the internal potential) and market opportunities (external potential)

• Realistic: do not bite off more than you can chew! Results in relation to investments (and vice versa)

• Time-bound: use a planning horizon to reach your goals and limit the pay back period


Market Entry Strategy

Centre for the Promotion of Imports from developing countries

02/05/2015

Export Marketing Strategy

• Market Entry Strategy– Market selection and positioning– Product strategy– Pricing strategy– Distribution strategy– Promotion strategy– People strategy– Planet strategy

• What is your USP for each

• Management responsibilities• Export Action Plan• Budget and sales forecasts



Positioning strategy

• How your business offering meets the perceived customer needs in the target markets

• Product/market mix – what you sell– at what price– where you sell– how you sell it – How does your product/market mix compare to the competitors’

marketing mix? – To what extent and in which areas do you differentiate from the

competition


Positioning strategy

• Your product/market mix should make it clear for customers whether you are aiming for the top end of the market, at medium level, or at the lower end

• Positioning, based on a blending of perceived and physical added value, impacts on the choice of distribution channel, product quality and warranty, business communication and pricing


Product strategy

• Develop product range in accordance with customer needs and market conditions (competition, market access requirements) in your target market.

• Can you use your existing product assortment or does it need adaptation?

• What is your product development capacity


Kotler’s product review

Core product: • The product BENEFIT S• Meeting requirements for

product and the accompanying claim (HEALTH EXAMPLE)



Actual product:What features add value? Feature –benefit analysisAdding tangible product features to become competitive and build your USP, e.g.• Quality & consistency• Sustainability• Assured availability• Story telling



Augmented product: Additional benefits to strenghten your USP

Customer service


Pricing strategy

• Often you cannot dictate your price.• If you can, what will the market

accept?• How will competitors respond?• Different strategies

–Cost-plus pricing–Competitive–Penetration–Perceived value pricing

Beyond price taker to real cost-based pricing


Distribution strategy

• Which players through which channels?

• Direct or indirect to the new market?

• Cost-benefit analysis• Know you capacities


Promotion

Market research needed to determine promotion strategy!

What is your message?What is the promotional mix


PullPush

Matching message and audience (1/2)

Who are we targeting?• To consumers?

–Different segments• To/in the companies?

–Different roles (purchasing, product development, quality control, marketing)

• To policy makers?


Matching message and audience (2/2)

What is the message?


Step

Establish your identity

What characteristics make up your identity?

Developing a Theme

What characteristics appeal to buyers?

Objectives Who to reach, what change to achieve?

Content • Informative?• Persuasive?

• Rational (claim linked to evidence)• Motivational (claim linked to needs/desires)

Format and delivery

• Advertising (media)• Personal selling (visits, fairs)

Follow-up steps

• Additional training to look at• Management responsibilities• Action planning• Budgeting and forecasting

• In addition to training and guidance on key aspects to develop your product, business and marketing mix


People

Do you have a team that is up for the task at hand?• Training• Service oriented• After sales support


Process

As an exporter, you provide a product. Make sure that the process of delivering this product to your client is in order.

• Focus on customer satisfaction• Are your customers well informed?• Are your services efficient and helpful?


Proof

A product is difficult to check before delivery, which is a risk for a buyer. Make sure that your buyers can ‘see’ what they are buying.

For example: • Certification standards• Safety datasheets• Technical datasheets


Action plan

How do you go from ideas to action?• Make an action plan based on

your SWOT and marketing mix. –EMP actions: actions that

support strengths, maximise opportunities and minimise threats.

–ECP actions: actions that confront your company’s weaknesses.

• Check financial feasibility!–Budget


Welcome and programme Session 2-3 02/05/2015. Geneva goals Critical thinking process to further develop and organize your export marketing activities.

Documents

promotion of imports

export market strategychapter

market approach6

market research

market wantsfocus

export objectiveschapter

export markethow

market entry strategyfollow