1. Preparing for Export Markets: Important Considerations Berletta Henlon Forrester Manager, Market Development Workshop: Step By Step Guide to Exporting JAMPRO; 2016 July 7

2. 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.

3. Basic Export Requirements Planning for Export Assessing Supply Capacity Assessing the Target Market Distributor Relationship Key Issues/Market Feedback Important Considerations

4. Basic Considerations for Export Capacity : do you have enough to export? What’s the rule of thumb…; Market Research/Targeting : identifying markets; consumer culture/ 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 in- market- 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

5. 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

6. 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?

7. 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

8. Assess Internal Capacity Elements to be assessed include: – Operating standards and product quality, – Production capacity, – Raw material availability/consistency, – Human resources – Financial resources – Overall competitiveness

9. 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

10. 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?

11. In Summary… 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!

12. 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

13. 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)

14. 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!

15. 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

16. 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.

17. 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!

18. 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 ) D igital Transformation…..

19. VIRTUAL BUSINESS GENERATION What have the following in common ? : facebook Linkedin twitter YouTube Alibaba.com Ebay

20. 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.

21. 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.

22. 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

23. Market Penetration Initiatives JAMPRO provides you with opportunities to place your products in front of buyers through: – International Trade shows – Inward Buyer Missions – Outward Trade Missions to target markets – Business Matchmaking – Buyer Recruitment for Expo Jamaica

24. 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

25. 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

26. 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

27. 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.

28. 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)

29. 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

30. 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: info@jamprocorp.com