Are entirely new products needed? Export Exports include direct selling to end consumers, and also indirect exports, where goods are sold through an intermediary such as an agent or distributor. A systematic assessment of the different entry methods can be achieved through the use of a matrix see table 7. Licenses can be for marketing or production. The exporter's task is to choose a market, find a representative or agent, set up the physical distribution and documentation, promote and price the product. Countertrade can also be used to stimulate home industries or where raw materials are in short supply. Step outside Companies have no reason to repeat the mistakes of others.
This deal follows a spectacularly unsuccessful joint venture with Wahaha in 2009 and a false start with Mengniu in 2007. The client realized that overcoming them required a deep understanding of the market, identifying a value proposition, knowing when to enter, and whom to partner with. The insights availed from such market intelligence solutions will help companies to analyze the present market scenario and make strategic decisions. If companies in other industries could succeed in the target market, they should be considered as well. Product support - Product sourcing - Match existing products to markets - air, sea, rail, road, freight - New products - Product management - Product testing - Manufacturing specifications - Labelling - Packaging - Production control - Market information 2.
Even before companies select their reference cases, an explicit review of these factors sometimes shows that the dice are loaded against going forward. The greater the overlap with the experience of the industry in question, the more valuable each example will be for the reference class. Foreign production Besides exporting, other market entry strategies include licensing, joint ventures, contract manufacture, ownership and participation in export processing zones or free trade zones. Export Markets Quick Links: Subscribe to our. Distribution support - Funds provision - Raising of capital - Order processing - Export preparation and documentation - Freight forwarding - Insurance - Arbitration 6. Every approach requires careful attention to marketing, risk, matters of control and management.
That means new territories to target, new customers to understand and to reach. Do consumers need to be educated on how to use it? Please check our to see how we protect and manage your submitted data. Set clear goals Be specific about what you want to achieve in your new market, including the level of sales you can expect to reach. Entering a new geography, which does not share the same market dynamics, laws and regulations were challenging the client. . Countertrade By far the largest indirect method of exporting is countertrade.
There is a broad agreement that countertrade can take various forms of exchange like barter, counter purchase, switch trading and compensation buyback. Thus, with market entry strategies, the automotive manufacturer wanted to explore and assess the foreign market opportunities. Inventory support - Inventory management - Warehousing - Distribution - Parts supply - Credit authorisation 5. These methods are lower risk and require minimal investment. The engagement highlights how the client was able to understand the automotive product market, identify the untapped opportunities, and successfully launch their products based on the market entry strategies engagement conducted by Infiniti Research.
But companies that place product bets less frequently, and with less apparent risk, have fewer internal reference cases to compare and generally either don't consider looking at the experience of outside companies and industries or, if they do, often conclude that the effort isn't worth the expense. This press release features multimedia. This is typical of the horticultural industry of Kenya and Zimbabwe. Even in fairly routine endeavors such as launching new consumer products , expenditures often exceed forecasts dramatically. The ability to communicate and control 100% may outweigh any of the disadvantages of joint ventures and licensing. They distinguished between firms whose marketing efforts were characterized by no activity, minor activity and aggressive activity.
Basically two separate contracts are involved, one for the delivery of and payment for the goods supplied and the other for the purchase of and payment for the goods imported. Getting can help clarify the challenges. Licensing involves little expense and involvement. One telecommunications company that leaned toward using a premium-feature, low-cost strategy to enter a new market assumed that the incumbents would maintain the status quo of premium features and high prices. A second useful way of improving estimates of market size is to use the reference class of other entrants as a benchmark.
Whether you are introducing a new product to the market or entering a new market with an existing product, a coherent market entry strategy is necessary. More complex forms include truly global operations which may involve joint ventures, or export processing zones. A lot of companies start by going into the U. Direct exporting may be the most appropriate strategy in one market while in another you may need to set up a joint venture and in another you may well license your manufacturing. Normally these would be geographically adjacent or able to be served, say, on an air route.