1. Welcome and programme Session 2-3 02/05/2015

2. Geneva goals Critical thinking process to further develop and organize your export marketing activities (knowledge, instruments and skills) improving the export possibilities (preparation) and success rate (implementation) of your own companies export activities. Centre for the Promotion of Imports from developing countries02/05/2015 1

3. Geneva outcomes Market intelligence for decision making! Matching internal audit with market realities Verification of market assumptions Verification of first ideas on market entry strategy Discussion with your pears and expert First steps to (writing) your market entry strategy Understanding of next steps Centre for the Promotion of Imports from developing countries 2 02/05/2015

4. Geneva programme Centre for the Promotion of Imports from developing countries 3 02/05/2015 DateMorningAfternoon Fri 1-5 Sat 2-5training Sun 3-5trainingEMP Mon 4-5Shop visits??????????? Tue 5-5Vitafoods Wed 6-5Vitafoods Vitafoods feedback Thu 7-5training 1Introduction 2EMP recap 3EMP II 4The EU NIHP market 5Consumer trends 6Industry trends 7Segments and channels 8Market access requirements 9 10Opportunities for NIHP 11Opportunities for NIHP 12Market intelligence 13Market intelligence 14Market intelligence 15Programme close

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6. Export marketing plan – Part II Session 2-3 02/05/2015

7. The EMP - a recap Centre for the Promotion of Imports from developing countries02/05/2015 Very useful tool for: – Newcomers to international trade, – Entrepreneurs with export experience/presence – internal and external analysis – From price-taker to price-maker Marketing and management instrument – Shared vision of your company. – Based on evidence – Living document Structuring and systemizing your market approach 6

8. The Export Marketing Plan ❑ Your company and your role in the supply chain ❑ The opportunities for your company in the export market ❑ How to match what you offer to what the market wants ❑ Focus on USPs, offering value to customers and communicating this effectively ❑ Who are your possible clients ❑ Where to find these clients ❑ How to get to these clients ❑ Predict the profitability of the export venture Centre for the Promotion of Imports from developing countries02/05/2015 7

9. Centre for the Promotion of Imports from developing countries02/05/2015 8 D. Sales & Marketing Plan Market Entry Strategy – Action Planning – HR and management - Budgeting

10. CBIs EMP process for South Africa Centre for the Promotion of Imports from developing countries02/05/2015 9 Pretoria EMP I Understanding EMP structure Your internal audit First ideas on market entry Geneva EMPII Market intelligence Market confrontation – SWOT Road to market entry strategy Follow up training/guidance EMP III Action planning Human resource / management needs Budgeting Next to other training and guidance on product development, marketing, promotion, etc.

11. EMP Structure Chapter 1, 2 and 3Situation analysis Chapter 4 and 5Market research and audit Chapter 6SWOT Conclusions Chapter 7Competitor analysis Chapter 8 and 9Market assumptions and export objectives Chapter 10Export market strategy Chapter 11, 12, 13 Planning, management and budgeting Centre for the Promotion of Imports from developing countries02/05/2015 10

12. Step A: Business audit Internal analysis: Strengths & Weaknesses – Strategic profile: ›Who are you? ›What do you do? – Identification of your current product-market combinations Centre for the Promotion of Imports from developing countries02/05/2015 11

13. Step A: Business audit Internal analysis: Strengths & Weaknesses – What are your current results in these markets? – What do you need to be successful in these markets (Critical Success Factors)? And how well do you score on these CSFs? – What are your gaps in terms of current practice? – Is your company ready to export to the EU? Centre for the Promotion of Imports from developing countries02/05/2015 12

14. Step B: EU market audit External analysis: Opportunities & Threats What’s the business environment? Look at developments at levels and factors below.  Translate this into opportunities and threats Centre for the Promotion of Imports from developing countries02/05/2015 13 Factors Socio-cultural Technological Economic Environmental Political Demographic Levels Consumer Industry Global/EU

15. Step B: EU market audit External analysis: Opportunities & Threats Market research can help you find the right market for your product market combinations Find your MARs and best markets  Translate into Opportunities and Threats  CBI and partner organisations can help you! Centre for the Promotion of Imports from developing countries02/05/2015 14

16. Step B: EU market audit Competitive Environment: Identify your competitive edge and your critical success factors (CSFs) compared to your competition! Centre for the Promotion of Imports from developing countries02/05/2015 15 Competitive Rivalry within an industry Bargaining power of suppliers Bargaining power of customers Threat of new entrants Threat of substitute products

17. Centre for the Promotion of Imports from developing countries02/05/2015 Internal analysis –SW- External analysis -OT- 16

18. SWOT: Extracting conclusions !! Weaknesses to be addressed in ECP action plan!! Centre for the Promotion of Imports from developing countries02/05/2015 17 Strengths vs Opportunities = Primary focus in EMP; Core competencies Weaknesses vs Opportunities = Secondary focus in EMP; Internal action points Strengths vs Threats = Possible future focus; Competitive strategy Weaknesses vs Threats = Problem area No focus

19. Centre for the Promotion of Imports from developing countries 18 Step C: SWOT Where does your company have the best chances? Define your: Products Markets Sales proposition (USPs) Weaknesses?  Make note of your weaknesses and take them up in your ECP action plan 02/05/2015

20. Sales objectives and export targets Verify your market assumptions Economic developments Difficulty of market entry External developments Check export objectives Centre for the Promotion of Imports from developing countries02/05/2015 19

21. SMART Objectives Specific: the product(s) and market(s) should be specified Measurable: the objectives should be quantitative, expressed in terms of sales value, sales growth, market share, number of customers etc. Achievable: the objectives should be based on your company’s strengths and its critical success factors (the internal potential) and market opportunities (external potential) Realistic: do not bite off more than you can chew! Results in relation to investments (and vice versa) Time-bound: use a planning horizon to reach your goals and limit the pay back period Centre for the Promotion of Imports from developing countries02/05/2015 20

22. Market Entry Strategy Centre for the Promotion of Imports from developing countries 02/05/2015

23. Export Marketing Strategy Market Entry Strategy – Market selection and positioning – Product strategy – Pricing strategy – Distribution strategy – Promotion strategy – People strategy – Planet strategy What is your USP for each Management responsibilities Export Action Plan Budget and sales forecasts Centre for the Promotion of Imports from developing countries02/05/2015 22

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25. Positioning strategy How your business offering meets the perceived customer needs in the target markets Product/market mix – what you sell – at what price – where you sell – how you sell it – How does your product/market mix compare to the competitors’ marketing mix? – To what extent and in which areas do you differentiate from the competition Centre for the Promotion of Imports from developing countries02/05/2015 24

26. Positioning strategy Your product/market mix should make it clear for customers whether you are aiming for the top end of the market, at medium level, or at the lower end Positioning, based on a blending of perceived and physical added value, impacts on the choice of distribution channel, product quality and warranty, business communication and pricing Centre for the Promotion of Imports from developing countries02/05/2015 25

27. Product strategy Develop product range in accordance with customer needs and market conditions (competition, market access requirements) in your target market. Can you use your existing product assortment or does it need adaptation? What is your product development capacity Centre for the Promotion of Imports from developing countries02/05/2015 26

28. Kotler’s product review Core product: The product BENEFIT S Meeting requirements for product and the accompanying claim (HEALTH EXAMPLE) Centre for the Promotion of Imports from developing countries02/05/2015 27

29. Kotler’s product review Actual product: What features add value? Feature –benefit analysis Adding tangible product features to become competitive and build your USP, e.g. Quality & consistency Sustainability Assured availability Story telling Centre for the Promotion of Imports from developing countries02/05/2015 28

30. Kotler’s product review Augmented product: Additional benefits to strenghten your USP Customer service Centre for the Promotion of Imports from developing countries02/05/2015 29

31. Pricing strategy Often you cannot dictate your price. If you can, what will the market accept? How will competitors respond? Different strategies – Cost-plus pricing – Competitive – Penetration – Perceived value pricing  Beyond price taker to real cost- based pricing Centre for the Promotion of Imports from developing countries02/05/2015 30

32. Distribution strategy Which players through which channels? Direct or indirect to the new market? Cost-benefit analysis Know you capacities Centre for the Promotion of Imports from developing countries02/05/2015 31

33. Promotion Market research needed to determine promotion strategy! What is your message? What is the promotional mix Centre for the Promotion of Imports from developing countries02/05/2015 32 PullPush

34. Matching message and audience (1/2) Who are we targeting? To consumers? – Different segments To/in the companies? – Different roles (purchasing, product development, quality control, marketing) To policy makers? Centre for the Promotion of Imports from developing countries02/05/2015 33

35. Matching message and audience (2/2) What is the message? Centre for the Promotion of Imports from developing countries02/05/2015 34 Step Establish your identity What characteristics make up your identity? Developing a Theme What characteristics appeal to buyers? ObjectivesWho to reach, what change to achieve? Content Informative? Persuasive? Rational (claim linked to evidence) Motivational (claim linked to needs/desires) Format and delivery Advertising (media) Personal selling (visits, fairs)

36. Follow-up steps Additional training to look at Management responsibilities Action planning Budgeting and forecasting In addition to training and guidance on key aspects to develop your product, business and marketing mix Centre for the Promotion of Imports from developing countries02/05/2015 35

37. People Do you have a team that is up for the task at hand? Training Service oriented After sales support Centre for the Promotion of Imports from developing countries02/05/2015 36

38. Process As an exporter, you provide a product. Make sure that the process of delivering this product to your client is in order. Focus on customer satisfaction Are your customers well informed? Are your services efficient and helpful? Centre for the Promotion of Imports from developing countries02/05/2015 37

39. Proof A product is difficult to check before delivery, which is a risk for a buyer. Make sure that your buyers can ‘see’ what they are buying. For example: Certification standards Safety datasheets Technical datasheets Centre for the Promotion of Imports from developing countries02/05/2015 38

40. Action plan How do you go from ideas to action? Make an action plan based on your SWOT and marketing mix. – EMP actions: actions that support strengths, maximise opportunities and minimise threats. – ECP actions: actions that confront your company’s weaknesses. Check financial feasibility! – Budget Centre for the Promotion of Imports from developing countries02/05/2015 39