Export Now Five Keys to Entering New Markets

Export Now Five Keys to Entering New Markets Frank Lavin, Chairman, Public Affairs, Edelman Asia Pacific

Export Now I. Why and What: Setting your Export Goals I. Why and What: Setting your Export Goals II. How: Five Keys to Entering New Markets III. When: Making your Export Strategy Happen 2

I. Why and What: Setting your Export Goals Where’s the World Going? Why has the pace of economic change accelerated in recent years? 1 Three billion new customers 2 The death of distance 3 The erosion of trade barriers 3

I. Why and What: Setting your Export Goals What does this mean? Growth of world trade It has never been easier for a foreign competitor to enter your market, and it has never been easier for you to enter a foreign market. 4

I. Why and What: Setting your Export Goals What it means to you? The business impact Every company needs to think about exporting This means a shift from vertical skills to horizontal skills Your business needs to develop a culture of flexibility and innovation 5

I. Why and What: Setting your Export Goals Where are You Going? Self awareness is a key business issue Motives Direct and indirect costs 6

I. Why and What: Setting your Export Goals Where are You Going? Why Export? • To learn and experiment • To broaden the product slate • To diversify markets • To improve scale (MOTS) • To deny territory to the competition Motives 7

Export Now I. Why and What: Setting your Export Goals II. How: Five Keys to Entering New Markets II. How: Five Keys to Entering New Markets III. When: Making your Export Strategy Happen 8

II. How: Five Keys to Entering New Markets A. Country: Pick the Right One Keep it simple: seek proximity and like markets Align goals with capabilities Have an incremental business model Understand trade barriers Do your research Remember the global channels 9

II. How: Five Keys to Entering New Markets Complexity of market entry Final target Build target Initial target Value of the market 10

II. How: Five Keys to Entering New Markets Remember the global channels www. .com To help companies sell to Chinese consumers 12

II. How: Five Keys to Entering New Markets 11

II. How: Five Keys to Entering New Markets 13

II. How: Five Keys to Entering New Markets B. Customers: How They Differ You don’t know the customers and they don’t know you • How is your target customer different from your home market customers? • What will target customers need before you start selling? • Will your proposed product or service offer target customers a superior value proposition? • How should you adapt your strategy to deliver competitively superior customer value in your target market ? 14

II. How: Five Keys to Entering New Markets C. Competitors: A Different Market Can your company offer potential customers a competitively distinct product? Can your company perform the critical activities needed to protect a profitable position? Key issues Key issues • market segments • competitor positions • unmet consumer needs • leaders and laggards • value chain • strategic audit 15

II. How: Five Keys to Entering New Markets D. Capabilities: What you Need to Win Self-knowledge Learning organization Diagnostic skills Understand to what extent your strengths at home are strengths globally Start with like-minded customers in export markets Tailor your export marketing strategy to target the same customers in the export market Maintain a healthy paranoia to keep ahead of competitors 16

II. How: Five Keys to Entering New Markets D. Capabilities: What you Need to Win Self-knowledge Learning organization Diagnostic skills Strengths at home Strengths globally 17

II. How: Five Keys to Entering New Markets E. Capability Gap: How to Close it Home Market Advantages Joint Ventures Partnerships Contract Support From Head Office Established operating position 1 Volume 2 18

II. How: Five Keys to Entering New Markets Home Market R &D Manufacturing Distribution Finance Sales General Corporate Activities Country A Country B Country C 19

Export Now I. Why and What: Setting your Export Goals II. How: Five Keys to Entering New Markets III. When: Making your Export Strategy Happen III. When: Making your Export Strategy Happen 20

III. When: Making your Export Strategy Happen Resource the Strategy • How much capital and management time will the strategy require? • Who will manage the business in the new market? • How should you decide among the potential candidates? • How do you formalize this capital and management decision? 21

III. When: Making your Export Strategy Happen Credibility Bridge the Cultural Gap Pace of business Friendship Gifts Taste Dress Learning Punctuality Caution Details Traditional societies 22

III. When: Making your Export Strategy Happen Bridge the Cultural Gap Self-knowledge Learning organization Diagnostic skills How to adjust to a new culture: • Arrive a day early and observe • Get expert advice • Listen and learn • Don’t fake it 23

III. When: Making your Export Strategy Happen Take Action! Move incrementally Experiment and test markets Become a learning organization Develop a feedback mechanism Be willing to adjust Remember Global Channels Happy Exporting! 24

Case Studies 35 case studies from 14 different countries 25

Export Now Export Now Written by Frank Lavin and Peter S. Cohan 26

Export Now Team: Frank Lavin, Global CEO: Frank@exportnow.com John Hoover, U.S. CEO: John@exportnow.com Seth Lavin, Chief of Staff: Seth@exportnow.com Clare Malone, Marketing Communications Manager, Clare@exportnow.com 27

Export Now Five Keys to Entering New Markets