Transcript Presentation to Terry Stannard

Agenda
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What’s ICOM?
What’s Europe?
How EBS can help
Q&A
What’s ICOM?
Cross Border Experience
Air Liquide…………industrial gas
Algoflash................... .garden fertilizer
Bayer Crop Science……..agricultural
Carpe Diem.......................health drink
Caterpillar………….power engines
Disney Channel…………TV network
Dremel…………………power tools
Dr. Oetker……………………food
ESM Seminars………………seminars
European Union…….consumer rights
Ferrosan……………skin care products
HSBC…………………financial services
InterBay Funding......property financing
Maison de la Franc………….tourism
JCB..................construction equipment
Miele....................................appliances
Natura.......................beauty products
Norpharma...................pharmaceuticals
Novo..............................health program
Ópticas Devlyn..................optical retail
Petrobrás.............................oil
Peugeot...............................automobiles
Qatar Airlines………………airline
Scania…………trucks, buses, engines
Sanyo……………………….electronics
Vins de Pays de France…….wines
What is Europe?
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One trading area
456m people
308m people in Eurozone
Euro as major global currency
European central bank
English widely spoken
therefore easy to access or ………
….more complex!
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25 countries
Multiple languages and cultures
Local legislation within EU framework
Eurozone vs the rest
European vs national government tensions
Popular opposition to further integration
Enlargement may include Turkey
Anti-American sentiment re Iraq and
globalisation
Relative Population
Population Trends
Demographics
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Fewer later marriages, more divorces
Fewer children, later
More births outside marriage
17% over 65 and rising
More single person households
Migration from non EU rising
Relative Purchasing Power
Employment
USA – the key trading partner
Cultures
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Cultural diversity
History – internal conflict and world powers
Anglo Saxon vs Continental ethos
Mediterranean lifestyle vs Northern Europe
Protectionist vs free traders
Religious tensions
Regional tensions
Urban vs rural
Planning for Europe
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Opportunity assessment
Country selection
The UK as a springboard
Route to market
Investment
Practical matters
Assessing the Opportunity
• Company commitment and resource
• Objective help from experienced
professionals in Europe
• A sound assessment process
– Market information
– Competitive landscape
– Customer buying criteria
Country Choice
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Market specific factors
Customer price sensitivity
Competitive position
Country size
Central vs Western Europe
UK as a Springboard
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Language
Culture aligned to US
Common entry point
Flexible labour laws
Good Intellectual Property Protection
Ready access to rest of EU
£/€ not an issue
The City
The Sunday Times
The Sunday Times
March 12, 2006
UK as a Springboard
• The last two years have been sensational. London is
no longer the second city. Right now it is as fast as
New York.”
James Cayne, Bear Stearns
• “People go to Tokyo to do business in Japan, they go
to New York to do business in America, but they
come to London to do business with the rest of the
world.”
Jeremy Isaacs, Chairman Lehman Brothers
Europe and Asia
The Times
The Times
March 20, 2006
UK as a Springboard
• “Hundreds of American companies are hoping to join
the Alternative Investment Market in London to avoid
the heavier regulatory environment in New York”
London City Lawyer
• “London is becoming more attractive for some
American companies because of Sarbanes-Oxley”
Michel Peretie, Chairman Bear Stearns
Route to Market Options
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Sales Agents
Importers/Distributors
Joint ventures
Licensing
Acquisition
Company start-up
Sales Agents
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Direct shipment to end customer
Title remains with principal
Cost effective
Quality
Maximum control
Appropriateness dependent on industry
Importer/Distributor
• Local title and stockholding
• Established route to market
• Distributor likely to be well known to
customers
• Client competes with other principals
• An extra margin
Joint Venture Partner
• Need to have common objectives
• Clear understanding of partner roles and long
term position
• Control?
• Useful where local manufacture important
Licensing/Franchising
• Need for compelling product or service
• Commercial support
• Low risk but low return?
Acquisition
• Resource intensive
• Target availability
• Well developed corporate finance
infrastructure
• All major US investment banks represented
• UK as centre of private equity industry
Company Start Up
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Human and physical assets required?
Investment
Recruitment
Time scale to profitability
Advisors
About EBS
• We help companies develop profitable multi-country
or single market businesses in Europe with a flexible
menu of marketing services, including the
identification of distribution and sales partners
• EBS is a European Marketing Services Group staffed
by people with an impressive record in European
marketing
• With well-established links across the key European
markets, and partners in the USA, EBS gives
businesses of all sizes the power they need to
grow
Who We Can Help
• Companies planning first steps in geographical
expansion
• Companies operating in several European markets
who want a highly responsive and integrated service
across Europe
• Companies with a pan-European concept who wish
to establish “early mover” advantage in several
markets over a short time scale
How We Can Help
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Research
Legal advice
Office space
Staffing
Financial advice
Distributors
Franchisees
Industry advisors
Business and marketing advice and support
How EBS works
Process Definition
Plan Development
First Stage Audit
Research
Decision Support
Tools
Competitors
Situation
Analysis
Market
Customer Voice
Profiling
Countries
Segmentation
No-Go or Go Forward
Plan Development
Research
Decision
Support Tools
Competitors
Situation
Analysis
Market
Customer Voice
Profiling
Countries
Offices –
staff base in
country
Segmentation
Plan Development
Research
Decision
Support Tools
Competitors
Situation
Analysis
Market
Customer Voice
Profiling
Countries
Research
Segmentation
Business
Plan
Development of
Strategies &
Tactics
Timeline
Sales & Marketing
Communications
Plan
Offices –
staff base in
country
Budgets
Implementation
If research gives a comfort to launch in country EBS will:
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Audit
$30,000-50,000
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Initiate research
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Work up business plan for each country
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Plan out all service supports
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Budgets for year one and two
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Work up complete sales/marketing communication plan
Total Price: $150,000 - $200,000
- all depends on size of plans
InterBay Funding
EBS’s role
• Help to launch InterBay in the UK in May 2006
• Activities have included:
- Analysing the UK market in depth
- Finding office space
- Staff recruitment
- Extensive market research
- Identifying industry experts
- Business and marketing advice
- Adapting US advertising
InterBay Funding
EBS’s role cont’d…
- Advertisement placement
- PR launch and on-going campaign
- Producing marketing materials
- Web-site adaptation
- Corporate video production
- Creation of exhibition stand and event co-ordination
- Advising at all business levels until the UK is fully formed
The Main Pitfalls
….according to the American Chamber of Commerce:
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Under-estimating the cultural differences – “you can’t just snap
your fingers and expect to get an appointment”
• Not understanding the environment – “many US companies
falter because they don’t have access to a local network that
can help and support them”
• False expectations – “a lot of American companies make the
mistake of believing that entering a country that speaks their
language is a piece of cake… it isn’t! For one thing
American
and English are two different languages…”
The Importance of Local Knowledge
It seemed like a simple translation!
“Pepsi brings your ancestors back from the grave”
Pepsi ad slogan ‘Pepsi Comes Alive’ as originally
translated into Chinese
“It takes a virile man to make a chicken pregnant”
Purdue Chicken ad as mistranslated in Arabic
The European Players
Inigo Muguiro, Spain
Klaus Kitzmueller,
Germany
Uffe Just,
Scandinavia
Patrick Walhain,
France
Terry Stannard, UK
Key Insights
• You need a working knowledge of the various
European markets in order to successfully expand
into Europe.
• A solid plan in critical:
– An understanding of what is required to launch your product
in Europe
– A feel for the European business climate
– A feel for some of the benefits as well as pitfalls of doing
business in Europe
– Follow an established process
• Utilizing an experienced network of European
businesses located in the markets you are targeting
will help to ensure your success.
Questions & Way Forward
THANK YOU