Marketing in the Global Marketplace International Lessons Learned

1
Marketing in the Global Marketplace
International Lessons Learned

• SC International Trade Conference
• Charleston Place Charleston, SC
• May 27, 2008
• Dana M. Hicks
• Managing Director
• Perlitz Strategy Group - Americas

2
International Lessons Learned

• Target Market Research
• Channels to Market
• Product Adaptation
• Product Literature
• Product Pricing
• Travel Tips

3
Target Market Research

• Target countries that Buy American
• Confirm market for your product exists
• Estimate market size and growth
• Identify quantify market segments
• Identify major competitors
• Profile each major competitor
• Determine articulate the competitive
  advantage(s) for your product or service

4
Attractive Target Markets

• NAFTA Countries Canada Mexico
• Close proximity, easily reachable
• Reliable supply chains
• Same time zones as USA
• Free Trade Agreement (FTA) Markets
• Existing Australia, Bahrain, Canada, DR-CAFTA,
  Chile, Israel, Jordan, Mexico, Morocco, Oman,
  South Korea
• Pending Columbia, Panama, Peru, South Korea

5
Channels to Market

• Identify feasible channels to market
• Agent, Rep, Distributor, SI, VAR, Other
• Define criteria for desirable channels
• Identify profile top potential partners
• Consider US Dept of Commerce Gold Key Service and
  partner search
• Use in-country SC Dept of Commerce trade
  specialists where available
• Canada, Germany-Western Europe, China, Japan

6
Product Adaptation Packaging

• Local market approvals CSA, IEC, EU
• Voltage frequency for target market
• Name appropriate in local language
• Multilingual product labels and packaging
• Metric dimensions, weights, units
• Minimize size weight of packaging
• Green biodegradable packaging

7
Product Literature

• Point of purchase displays and signage in local
  language
• List metric dimensions and weights
• Design/layout brochures flyers so they can be
  printed locally
• Leave ample blank space in original English
  literature for translation

8
Product Pricing Sales

• Benchmark in-country end user pricing
• Cost plus transfer pricing if shipping to a
  company subsidiary
• Optimize supply chain to reduce landed cost and
  boost margins
• Pros and cons of ex-factory sales
• Sell and invoice in U.S. if possible

9
Travel Tips

• Maintain low profile
• No college or pro sports team wear
• No flashy jewelry
• No big, obtrusive luggage tags
• Learn a few words of local language
• Learn some facts about your destinations culture
  history
• Know understand currency exchange rates
• Know local tipping practices

10
S.C. International Trade Coalition

• Includes federal, state, and private
  organizations involved in promoting international
  trade.
• S.C. Department of Commerce http//www.SCcommerce.
  com
• U.S. Commercial Service of the U.S. DOC
  www.export.gov
• S.C. State Ports Authority http//www.port-of-cha
  rleston.com
• S.C. Department of Agriculture
  http//www.scda.state.sc.us
• S.C. Forestry Commission http//www.state.sc.us/f
  orest/
• S.C. World Trade Center, Charleston
  http//www.scwtc.org
• The Export Consortium http//www.exportconsortium
  .com
• S.C. District Export Council http//www.scdec.org
  
• City of Columbia Office of Economic Development
  http//www.columbiascdevelopment.com

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Thank YouMerci, Danke Schön,Muchas Gracias,
Grazie Mille,Domo Arigato, Xie Xie NiQuestions?

• Dana M. Hicks
• Perlitz Strategy Group - Americas
• dana.hicks_at_perlitz.com
• www.perlitz.com www.pipelineplanner.com

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International Trade Impact on SC

• 16.56 billion in exports in 2007
• Ranked 9th among 50 states
• In 2007, SCs Largest Export Markets Germany,
  Canada, Mexico, UK, China
• Germany replaced Canada as 1 export market for
  SC exports in 2007
• From 2006 to 2007 SCs fastest growing markets
  were in the Western EU, specifically Germany,
  Belgium, France, Spain, Sweden, and Switzerland
• Other fast growing markets for SC exports
  Argentina, Brazil, Chile, Australia, South
  Africa, UAE

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Impact of Trade on SC

• SC Economy Increasingly Diverse
• Leading Export Sectors in 2007 vehicles,
  machinery, plastics, electrical machinery,
  rubber, paper and paperboard, organic chemicals,
  optics and medical equipment, wood pulp, and
  manmade staple fibers
• Export-supported jobs in 2007 accounted for 9 of
  SCs total private sector employment
• Average national percentage is 7.2.
• Ranks 14th in number of jobs linked to exports

14
Importance of Exports to SC Economy

• Exports mean higher wages for SC workers
• Export-related jobs pay wages that are 13-16
  higher than other jobs.
• In the high-tech field, hourly earnings are 34
  higher than the national average.
• Exports mean growth in SC jobs job security
• U.S. export-related jobs have grown several times
  faster than total employment.
• Exports have accounted for the majority of U.S.
  manufacturing jobs created in the last few years.

15
U.S. Commercial Service

• Worldwide network
• 105 Export Assistance Centers throughout the U.S.
• Charleston, Columbia, and Greenville, SC.
• 157 offices in 84 countries
• One-on-One Long Term Export Counseling

95 of your potential customers live outside the
United States
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S.C. Dept. of Commerce

• SC Office
• Columbia
• International Trade Division
• 1201 Main Street, Suite 1600
• Columbia, SC 29201-3200
• Telephone [phone]

• Overseas Offices
• Toronto, Canada
• Munich, Germany
• Yokohama, Japan
• Shanghai China

www.SCcommerce.com
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South Carolina
District Export Councils (DECs) are organizations
of leaders from the local business community,
appointed by successive U.S. Secretaries of
Commerce, whose knowledge of international
business provides a source of professional advice
for local firms.

• Our mission
• Supply specialized expertise to small and
  medium-sized businesses that are interested in
  exporting.
• Encourage Small Business Exporters to take
  advantage of Federal, State and Local resources.