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IBC 101

IBC 101: International

Essentials

IBC 101

Why Export?Incremental Business?Out to Conquer the World?Corporate Goals?Vision?__________________________________________

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IBC 101

Customer ReviewWho & where are your current customers?What channels are they in?How large or small are they?

Mass Merchants,Department Stores or Independent Specialty?

Take care of what you’ve got!__________________________________________

IBC 101

Customer ReviewPrepare and Prioritize:

Descending country list withDescending account list

__________________________________________

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IBC 101

Product ReviewWhat do you have to sell?Why would it sell (or not) in a foreign market?What needs to be modified?

Product?Color, design, features, etc.Material Compliance (plastics, silicone, electrical)

Packaging?Language, metrics, etc.

Instructions?Warranty?

__________________________________________IBC 101

Product ReviewPrepare and Prioritize:

Descending Product list (by sales or units)

__________________________________________

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IBC 101

How to go to MarketChannels:

RetailerDistributorExport Management Company (EMC)

Supply Chain:Ex US Warehouse FOB Foreign Factory PortBranch Office – WarehouseAll of the above

__________________________________________

IBC 101

PricingStart with DomesticModify as appropriate for international

Review International Pricing Strategies Presentation__________________________________________

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IBC 101

Develop Pricing Grid

Variables:Local Market PricingCountry CompetitivenessRetailer or Distributor ModelOrder SizeShipping PointCredit TermsMulti-National Issues (Walmart)

__________________________________________

Pricing

IBC 101

Payment Terms& Conditions

Cash in AdvanceNet 30/60/90/…Letters of Credit

Credit Checks__________________________________________

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IBC 101

Export MechanicsINCO Terms – updated in 2010

International rules accepted by governments, legal authorities and practitioners worldwide for the interpretation of the most commonly used international trading terms.

Reduce or remove uncertainties arising from differing interpretations of such terms in different countries.

www.iccwbo.org/incoterms__________________________________________

IBC 101

Export Mechanics

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IBC 101

Export MechanicsFreight Forwarder

Arrange international shipmentsPrepare and process documentation

Commercial InvoiceShipper’s Export DeclarationAutomated Export SystemBill of Lading

__________________________________________

IBC 101

Export MechanicsInternational Quotations

Quotation FormProforma Invoice

_________________

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IBC 101

Export MechanicsProduct Returns / Warranty

% allowance% discountSettle when requiredLocal Service Center

__________________________________________

IBC 101

CompanyInfrastructure

Senior Management (Corporate “buy-in”)Category ManagementInternational Sales Team / RepsOrder DepartmentCredit DepartmentExport LogisticsWarehousing & Distribution__________________________________________

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IBC 101

Sales ChannelsSales Representatives

Exclusive? What is the territory?What are the terms?

% commission, samples, expensesDistributors

Exclusive? What is the territory?What are the terms?

% markup, samples, expensesDirect to Retail

What service is needed? Merchandising?

Who provides? Who pays?__________________________________________

IBC 101

Budget:Unique Export CostsProduct:

Patent & Trade MarksProduct Testing & ComplianceCertifications (CE Mark, etc.)Packaging – Market Specific_________________________________

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IBC 101

Sales:TravelTrade ShowsTrade MissionsCollateral Material

_________________________________

Budget:Unique Export Costs

IBC 101

Market SelectionIHA Membership Export Survey

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IBC 101

Market SelectionFor whom are your products best suited?What are your best opportunities?Where should you focus?

Pick three marketsDon’t try to tackle the globe…

What are your budgets?What are your travel plans?

How often can you return to the market?__________________________________________

IBC 101

Market Selection

TARGET MARKET=Market SizexMarket AttractivenessxSuitability of Products to Market__________________________________

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IBC 101

Market SelectionMARKET Product / Category  1 Product / Category 2

U.K.

Pan Europe

Japan Immediate Markets

Mexico

Australia

Brazil

CIS (former Sovietstates)

South Korea Mid‐Term Markets

ASEAN (SE Asia)

Argentina

GCC (Middle East)

C. America Longer Term Markets

S. Africa

China

India

Example Only – Adapt chart to your specific products & situation

IBC 101

Business PlanWhat are your objectives…

…for each market?

How will you enter the market?Trade MissionsTrade Shows – Prepare Lead SheetIHA Retailer ReportsDistributor Search

__________________________________________

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IBC 101

Pavilions & Trade Missions

Pavilion & Retail TourChina – Sept 18 - 20

Trade MissionSouth Africa – Sept 28 - Oct 3

Trade MissionUnited Kingdom – Nov 9 - 14

______________________

IBC 101

Trade Shows

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IBC 101

Distributor SearchIBC – NetworkingTrade MissionsTrade ShowsRetailer recommendationUS Department of Commerce

Gold Key Programwww.export.gov/salesandmarketing

______________________________________

IBC 101

Business PlanWhat budget is available?

Trade Missions / Trade ShowsWhich?

TravelHow often?

In-house supportOrder entry, customer service, etc.

In-country supportMerchandising, marketing, etc.

Samples / Collateral Material__________________________________________

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IBC 101

Export ComplianceProduct Compliance

Materials UsedPlasticsSiliconeElectrical

PackagingLanguageMetricsImport Labels

IBC 101

Export ComplianceShipping Compliance

Dangerous GoodsAerosolsPressurized productsAlcoholChemicals – cleaning solventsGlues

Effects on Packaging & Labeling

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IBC 101

Export ComplianceCustomer Compliance

Lists to Check – Denied, Debarred, etc…www.bis.doc.gov/complianceandenforcementliststocheck.htm

IBC 101

Customer Compliance:

Restricted Country ListRestrictions vary from country to countrywww.bis.doc.gov/exportlicensingqanda.htm

Some restricted destinations are embargoed countries:

Cuba, Iran, North Korea, Sudan, Syria__________________________________________

Export Compliance

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IBC 101

Questions?

IBC 101