Le rendez-vous des PME et de l'Intelligence Economique

Tags: distribution strategy | Export market | exporter | Exporting | Growrh strategy | guide line | international | internationaliser | PME

I have been involved in the exporting of services and products for the past 22 years. My experience is that most firms can export providing they set clear objectives, do their research and prepare a plan. The process does not need to be expensive or complicated. I propose to guide you through the following simple steps: 

1) To define your growth strategy (Why?)
2) To define your export market (Where?)
3) To define your sales and distribution strategy (How?)
4) To prepare a action plan that brings it all together (Who does what and when?) 

In the beginning, it is more a strategic assessment of where your firm is in its growth cycle and whether or not exporting can play a part in that growth. Some of the questions outlined above may appear basic and simplistic, never the less they should be answered. History is full of simple questions that were ignored and resulted some brilliant marketing mistakes.

Not all to answers have to be followed by a yes, the objective is to be as honest as possible about your capabilities, needs and real reasons for going forward. 

Step 2: To define your export market (Where?) 

Where, is definitely one of the key questions you must answer. Regardless, the country you chose, the next step will be to: 

• Look at that countries' market of your product or products similar to yours. What can you learn from those products?
• Are they distributed, packaged and positioned like yours ? Most of the time it is similar, but look for a difference that could impact your sales. Remember after sales service.
• Use the internet to learn as much as possible about the country ?
• Are there local standards that you must conform to?
• Are there technical standards that you must conform to ?
• Principle harbours and airports, logistical system, etc.
• Even if you use a transportation firm in France who can deliver direct, you and your margin will bear the cost of a bad or corrupt logistical and border system. In some cases, it is better for the importer to handle the logistical issues.
• You must try to identify all hidden costs associated with importing your product.
• How difficult is it get paid?
• Does your bank have an affiliate office in country?
• How easy is it to transfer funds?
• What about business taxes?

It is highly recommended to visit first hand or attend a trade show in country in order gain a better understanding of the market and the culture. Remember that you are a foreigner in another culture who's habits and ways are often very different. 

Step 3: To define sales and distribution strategy (When and How?) Once again, simple questions: 

• How are products like yours distributed in this country?
• How many competitors would you have in this country?
• Who is the biggest player in the market ?
• What are the barriers to entry ?
• What is your product differentiation ?
• Are sales people easy to find?
• Are employment contracts difficult or costly to manage?
• Is it easy to set up an office?
• Can you franchise?
• How is the legal system?
• What is the most common form of advertising in country?
• Are there any language issues relating to your company name and our product?
• When is the best time to launch your product?
• What is safest legal status for this country? Getting married is easy, getting divorced can be very expensive.

On of the keys to a good exporting strategy is control, you must be able to control your brand image, safe guard your technology and make sur you get paid. It is clear that win- win must be your objective. You should guard against scenarios which look to good. If some can go wrong, it will.  

Step 4: To prepare a action plan that brings it all together. 

Once you have answered the questions outlined above, then the next step is to define a realistic time line and list all steps that you will have to take to achieve those objectives:

 • Establish a 24 month time line with an investment budget.
• From this you work backward on a month by month basis with clearly defined actions and milestones.
• Every 3 months you must review your progress and if necessary change your course.
• A good plan must be as detailed as possible with clear quantifiable actions for sales, marketing, finance and production.
• It must be a living document that takes into account what has been really learned and achieved, not a book that sits on a shelf collecting dust. 

My objective is to encourage exporting with open eyes. You must have clear goals based on a concise analysis. Your export team must have a clear roadmap in order to succeed. I would conclude with a few points : 

While you can not anticipate and analyze everything, your actions must be based on facts. 

Your objectives must be realistic and achievable. Most of the challenges you will be faced with will relate to interpersonal communication:

• Culture, be sensitive to the culture of the country you are entering, its values and overall business practices. Make sure you have a local on your team.
• Language, be very careful with you translations and remember that not all words or gestures mean the same to everyone.
• Take the time to build your relationships.
• Be ready to learn.
• Be ready to stop, if it is not working.
• Be ready to ask a lot of questions.
• Be modest and respectful of different ways of doing things.
• Always look for solutions, a success at 90% of your objective is better than 100% of nothing.