Transcript Preparing for Export Markets

Preparing for Export Markets:
Important Considerations
Berletta Henlon Forrester
Manager, Market Development
Workshop: Step By Step Guide to Exporting
JAMPRO; 2016 July 7
JAMPRO
What do we do?
We seek to identify, create, and facilitate
opportunities for wealth creation for all
Jamaicans through trade and investment.
Market Development Value Proposition:
We leverage relationships to help buyers and
exporters convert trade opportunities into increased
sales.
Important Considerations
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Basic Export Requirements
Planning for Export
Assessing Supply Capacity
Assessing the Target Market
Distributor Relationship
Key Issues/Market Feedback
Basic Considerations for Export
• Capacity: do you have enough to export? What’s the rule of thumb…;
• Market Research/Targeting: identifying markets; consumer culture/
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tastes; demand for product/service ;identifying channels of distribution;
required standards & quality (i.e certifications- e.g GAP, HACCP);
The Visual: Packaging; Labelling;
Marketing: Branding and in-market promotion( including selling inmarket- warranties, return policy, after sale service etc.);
IP Protection: Register your name, mark and brand in all target
markets;
Market Access: Trade Agreements;
• Exporter Registration – JAMPRO
Planning is Key
• Carry out due diligence – what product/service in
demand? Which countries to target? What are the
market access requirements?[Ref. to ITC: Market
analysis tools- Trade Map; Market Access Map.
Market information-market trends, non-tariff
measures and geographical indications];
• Develop an export marketing plan- set clear
objectives (sales volume, $, # of new markets,
customers); Timelines; Define your target market ;
• Manage your supply chain-ensure sustainability
• Financial Plan
Assess the Target Market/Route to Market
• Identify and target the market segment
• Evaluate the price levels, trends and competitors
• Identify issues that may be entry barriers for your product
• Research the distribution channels
• Examine shipping routes and costs
• Determine appropriate logistics partners:
– Customs Broker, Consolidator, Agent, Courier, Post Office?
Assess Internal Capacity
• Assess your capacity to enter your chosen market;
and to service the market
• Adaptability/Agility is key - how will you adjust your
marketing mix (product, promotion, price, place) to
respond to market changes?
• Determine the impact of the resource requirements
on your domestic marketing and sales efforts
Assess Internal Capacity
• Elements to be assessed include:
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Operating standards and product quality,
Production capacity,
Raw material availability/consistency,
Human resources
Financial resources
Overall competitiveness
Distributor Relationship
• Appoint a distributor to handle your product
• Ensure clear, unambiguous contract terms
• Check background, reputation and performance
• Get recommendations/referrals
• Seek to develop a winning partnership
Your Distributor
• KEY QUESTIONS:
– Is the distributor financially strong?
– Does he have the facilities needed to service the market?
– Is he linked into the right network to sell your product?
– How important is your product in his product mix?
In Summary…
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Focus on your product and aim to be the best
Know your market and competitors
Manage well all processes from factory to market
Support your product in the market; Plan to visit as
often as possible
• Honour your commitments! …Communicate
• It’s all about relationships – Build partnerships:
Make them solid; Make them last!
Key Issues/Market Feedback
Packaging & Labelling
• A key determinant in consumer purchasing decision
• Type/quality - products must arrive in good condition
• Packaging for the target market/segment (sizes;
number of units in a box; packaging for display;
convenience)
• Bilingual/ multi-lingual labels (e.g. French for Canada)
• Unattractive/inadequate labelling (Font, point size,
measurements - grams vs. ounces, nutritional
information, usage directions). Market-specific
labelling requirements
Key Issues/Market Feedback
Pricing
• Quote prices in the currency of the country
(Canadian buyers complain that Jamaican exporters tend to
quote in US$)
• Uncompetitive prices
– market research is key
– Understand the competitive landscape (key players and
their pricing strategies)
Key Issues/Market Feedback
• Understanding the supply chain – exporters need to
appreciate the entire process beyond shipping the product
• Lack of differentiation (too many ‘me too’ products in the
same place)
• Understanding market nuances – differences in
culture/taste/interpretation
– e.g. rose water, which is used in Jamaica for baking (labelled as food);
however, this product is used only as an astringent, for cosmetic
purposes, in Trinidad.
– Product may end up in the wrong aisle!
Key Issues/Market Feedback
Product Shelf Life
 Exporters should ensure that products have a longer ‘sell by’
date for distant destinations; taking into account time
required to go through the distribution channel before
reaching the final consumer.
 Often when products arrive, they are already close to the sell
by date, and some end up having to be dumped
Key Issues/Market Feedback
Marketing & Promotions
Limited in-market support
 Exporters keen on getting goods to market but thereafter fail to
promote in market.
 Distributors need support from exporters to promote goods in
market.
 Buyers sometimes not familiar with products and therefore
exporters need to work more closely with them in promoting to
consumers.
Key Issues/Market Feedback
Capitalise on the Strength of Brand Jamaica
 Authentic Jamaican products should boldly proclaim
‘Made in Jamaica’ on the packaging.
 While it is important to highlight own brand,
remember Jamaica sells!
VIRTUAL BUSINESS GENERATION
(a) Is your business a needle in a haystack?
(b)Do you always want to have sales opportunities at
your fingertips?
If you answered “YES” to (a) & (b) then perhaps (c ) is
the solution:
(c ) Digital Transformation…..
VIRTUAL BUSINESS GENERATION
What have the following in common?:
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facebook
Linkedin
twitter
YouTube
Alibaba.com
Ebay
VIRTUAL BUSINESS GENERATION
Answer:
• Facebook, Twitter and LinkedIn are all
social networks which allow people to
identify and contact both leads and
customers.
• Alibaba and Ebay are virtual
marketplaces which bring together large
numbers of buyers and sellers.
VIRTUAL BUSINESS GENERATION
Jump On the Innovation bandwagon- surveys
are showing that companies (Digirati) who
adopt new technologies like internet based
business generation tools( matchmaking
software; Online directories; Online
marketplaces; Mobile marketplaces etc.)
outperform their competitors in areas
including market share, revenue creation and
profits.
JAMPRO’s
Export & Market Development Services
• Business Information
– Secure vital business information and learn about
export procedures
• Business Linkages
– Identify business linkage opportunities and generate
local supply contracts
• Market Development
– Identify export opportunities and access markets for
your products
Market Penetration Initiatives
JAMPRO provides you with opportunities to place your
products in front of buyers through:
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International Trade shows
Inward Buyer Missions
Outward Trade Missions to target markets
Business Matchmaking
Buyer Recruitment for Expo Jamaica
In Summary:
Are You Ready to Export?
EXPORT READINESS CHECKLIST
1.Why do you wish to export?
□ Increase sales
□ Expanding market capacity
□ Better utilization of personnel
□ Extend life of the product/service
□ Decreasing dependence on single
market, traditional markets
□ Greater opportunities
□ Better utilization of idle plant
capacity
□ Decreasing Jamaican sales
□ Other
Are You Ready to Export?
*The areas below represent conditions that should exist within
your company enabling you to become a successful exporter.
How does your company rate?
On a scale of 1 to 4, rate your company: 1=definitely no, 4=definitely yes:
 Strong management team
□ Well established domestic market
□ Sufficient plan capacity/personnel to meet increased demand
□ Product/service can be modified to meet the needs of foreign
markets/customers
□ Willing to accept lower profit margin, at least initially, to establish a market
presence
□ Prepared to provide effective, efficient after-sales service
Are You Ready to Export?
How does your company rate?(1)
On a scale of 1 to 4, rate your company: 1=definitely no, 4=definitely yes:
□ Revenues are growing
□ Well thought out realistic business and marketing strategies – in writing
□ Are prepared and able to compete with foreign products/services in terms
of quality/price
□ Management is willing and able to make a tangible commitment to pursue
export markets; dedicating time, personnel and funds for that
□ Willing to consider joint ventures, technology transfers or strategic alliances
Are You Ready to Export?
EXPORT READINESS CHECKLIST (Contd.)
How does your company rate? (2)
□ Revenues are growing
□ Well thought out realistic business and marketing strategies – in writing
□ Are prepared and able to compete with foreign products/services in terms of
quality/price
□ Management is willing and able to make a tangible commitment to pursue export
markets; dedicating time, personnel and funds for that
□ Willing to consider joint ventures, technology transfers or strategic alliances
*The above areas represent conditions that should exist within your company
enabling you to become a successful exporter.
Are You Ready for Export?
EXPORT READINESS CHECKLIST (Contd.)
3. Background Information
Have you checked into the following? Answer YES/ NO
a) Identified and researched target market(s)
b) Decided on methods of marketing
c) Tariffs/duties for each product in each target market
d) Transportation routes /distribution channels
e) Packaging
f) Pricing
g) Financing (e.g. Exim Bank)
Are You Ready for Export?
EXPORT READINESS CHECKLIST (Contd.)
4. Pitfalls of exporting
□ Inadequate market research
□ Bad timing
□ Poor planning
□ Company profits are in the red
□ Other
So- Are You Ready for Export?
IF YES get on board the Export train!
JAMPRO -Working for Jamaica; working for you
www.tradeandinvestjamaica.org
E: [email protected]
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