Approaches to International Business Development In Europe ... · Approaches to International...
Transcript of Approaches to International Business Development In Europe ... · Approaches to International...
Approaches to International Business Development In Europe &
Go-To-Market Basics
EuroDev Group Harris
Mark de Vries Jeff Coffed
6/18/2015
Market Entry- Do’s and Don’ts For Europe
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How to become active in the successful 25%
• 75% of the worlds purchasing power is international
BUT • 75% of the product launches are not successful • 75% of companies entering the EU market quit within 2 years • 75% of the initial international hiring's are unsuccessful • 75% of the international alliances fail
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Exporters are more successful
• Sales grows faster • More product development • More value through
– Taxes – Profit diversification – Operating flexibility – Reduce Cost of capital
• More competitive in home market • Attract better talent • More revenue growth (2005-2009)
37%
7%
Exporting Non-exporting
REVENUE GROWTH
Source: Taylor and Francis (2007); Creal et al. (2011); Brookings (2011)
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Lame excuses for IBD
0% 10% 20% 30% 40% 50% 60%
Finding a good local partner
Payment risks
Laws and governmentregulations
Entry barriers
Market intelligence
20122011
Source: Fenedex (2012)
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Real barriers IBD
Culture / Language differences
Communication between facilities
Management’s lack of “knowhow” and skills
Exchange rates
Developing effective structure
Logistics Source: Prater and Ghosh (2005)
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The evolution, why the change?
Source: Prater and Ghosh (2005)
Initial strategies 1. Locally hired management 2. Alliances with distributors 3. Direct exporting 4. Own sales office 5. Subsidiaries 6. Licensing
Current strategies 1. Locally hired management 2. Subsidiaries 3. Own sales office 4. Alliances with distributors 5. Direct exporting 6. Foreign acquisition
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Why Europe?
• 1957, 6 member states • 2014, 28 member states
• 830 million inhabitants • 23 official languages
• Estimated 30% share of the world's nominal GDP
• Americas largest export market • Expanding market
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Elements of Entry Strategy
(1) Assessing products and
foreign markets: choosing the
target product / market
(2) Setting objectives and
goals
(3) Choosing the entry mode:
export, contractual arrangements or
investment
(4) Designing the marketing plan:
price, promotion, distribution, etc.
(5) Control System: monitoring operations revising entry strategy
Target market
Entry operations
Source: Root (1994)
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Business Development Landscape
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Experience
• 2 years to reach break even point • 1 year to get a strategic partner • 1 year to get a distributor successful • 7 months to acquire a company, 8 to sell • 2 months to recruit a person, 4 months before he/she starts
• Reps do not cover the market, distributors need 35% • After 2 years an EU sales operation costs 10% of sales • Shipping costs are 8% of turnover
ACT Global – Be Yourself
Thank you for your attention!
| 13 Marketing in Europe | Harris Proprietary Information harris.com
Jeff Coffed Senior Product Marketing Manger, Harris
Marketing in Europe
| 14 Marketing in Europe | Harris Proprietary Information June 22, 2015
• Business is booming!
• Now what?
• Doing business well in the U.S. ≠ doing business well in Europe
Marketing in Europe?
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• European Union (EU) has 500 million consumers
• EU’s 28 members account for 16% of world imports and exports
• EU accounted for 22.7% share of the global GDP in 2012
• There were $43.8B in U.S. Exports to Germany in 2013
• In 2013 France was the world’s fifth-largest economy
Why Market in Europe?
Gain Access to New Revenue Opportunities
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• Strategic marketing at the product / product line level
• Focuses on understanding the market, needs and customer set
• Develops positioning, messaging and competitive differentiation
• Ensures the Sales and Marketing teams are aligned
• Represent the voice of customer in the development process
Role of Product Marketing
Acquire Deep Market Knowledge to Develop Strategic Direction
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• Varies from country to country
• Be aware of cultural differences – “The future’s bright, the Future’s Orange” telecom ad in Northern Ireland
• Paper sizes are different
• Acknowledge other countries holidays and seasons
• How do you refer to dates, measurements, etc.
• Translations – Languages vary – Make room for translations – Don’t translate word for word – Have a native speaker review translations – Stay away from idioms
European Market Dynamics
Avoid a Pan-European Approach
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• Who is doing your selling?
• What tools do your sales teams need?
• When possible communicate in a prospect’s native language, but…
• Correspondence translations: one size does not fit all − When in Spain, write in English (unless your Spanish is impeccable) − In Italy write in Italian for priority attention
> Web pages – How about simple SEO for existing pages – Use “misspellings” for meta tags (colour vs. color) – Format the date correctly – Different sites for different countries (.de for Germany, .fr for France, etc.)
> What’s in a name? – Hitachi 9400… 9500 – IKEA Fartfell – children’s work bench
Go To Market Considerations in Europe
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• Why is gaining VOC/VOM crucial? – Critical for product development (steering wheel) – Helps plan GTM (understanding customer need, pricing, terms) – Know required certifications (RoHS, CE) – Documentation and translations (including software, interfaces)
• How do you get VOC / VOM data? – Do your research – primary and secondary – Qualitative and quantitative approaches – Through partners and sales channels – Focus groups
Get to Know Your Target
Knowing Your Audience Quickens Your Ramp to Success
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• Who gains market knowledge and develops strategic direction?
• Be aware of market dynamics
• Avoid a pan-European approach
• Product development benefits from knowing market preferences
• Be careful with translations
• Know the ‘market’ in your Go-to-market
Summary
Bringing Your Company to a New Geography is a Business Challenge and a Human Endeavor
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Thank you! Questions?