Marketing Tools for Your International Business

Steve Hanson GRIP IDEAS

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The Global Market Place is NOW!

Putting it all together.

Experience Ingredient Brands

Finished Product Brands

Reasons for Expanding Internationally

• Products have competitive advantage

• Domestic market is saturated or mature

• Consumer demographics in target market match your ideal customer base

• Demand is higher in other market than in home market

Organizing Your International Business

• Determine organization & product readiness

• Assess the market

• Developing a business & marketing plan

• Create appropriate & required infrastructure support

• Marketing & promoting your products

Determine Your Desire

What percentage level of commitment would you assign for your company? How does management feel about exporting? What resources are available to expand your business? Is your organization open minded? How content are you with your company’s present situation? Are you committed for the long term?

Does your company have an unrelenting positive attitude to be successful?

We can and will do it!

Determining Organization & Product Readiness

Setting Realistic Expectations

Do you have: A product with real potential Clear and achievable goals/objectives A willingness to adapt for a new market A realistic understanding of what is required A commitment to succeed The patience to do your homework The discipline to say “no” if homework does not support your efforts

Assess the Market • Market overview and channel descriptions

• Size of market

• Market forecast

• Demographics

• Political and economic environment

• Regulatory requirements

• Industry trends

• Description of key industry participants

• Overview the buying and purchasing process

Developing a Plan A plan should include: • Situation Analysis – Organization description, target market overview, purpose of effort, international marketing objectives

• Product Overview – Product description, key features and benefits, competitive advantages and required adaptation for exporting

• Market Entry Strategy – Target market, competitor overview, distribution & channel strategy, promotional strategies and terms of sale

Developing a Plan • Regulatory/Legal Requirements – Regulatory approvals, import restrictions, duties and tariffs, intellectual property protection, insurance and trade documentation

• Identification of Risk Factors – Country market risks, credit and currency risks and political risks

• Tactical Plan – Overview of key activities along with measurement and evaluation

• Financial Plan – Funding, operating budget, conservative revenue projections

Market Research Resources • Nutrition Business Journal – Provides quantitative market data for the U.S. nutrition industry www.newhope360.com/nutrition-business-journal

• SPINS – Offers U.S. retail scan sales data for natural health food stores and mass market retail www.spins.com • Euromonitor International – Supplies market size information for the nutrition industry covering a number of country markets www.euromonitor.com • MarketResearch.com – Research reports on a variety of subjects www.marketresearch.com

U.S. Trade Association Resources

• Council for Responsible Nutrition – www.crnusa.org

• Natural Products Association – www.npainfo.org

• American Herbal Products Association – www.ahpa.org

• American Botanical Council – www.herbalgram.org

• Institute of Food Technologists – www.ift.org

Build Infrastructure

Establish own presence 1

• GLOBAL FOOD COMPANIES

(Nestlé, Coca-Cola, Cadbury, Kellogg’s)

• MULTI-LEVEL MARKETING COMPANIES

(Amway, Nu Skin, Shaklee, Herbalife)

• GLOBAL FOOD INGREDIENT COMPANIES

(DSM, BASF, Indena, Lonza)

Find a local partner (Distribution/License) 2

Process for Finding a Local Partner

• Identify Partner Candidates o Size of partner

o Appropriate channel

• Partner Interviews • Partner Meetings • Follow Up • Partner Agreement

Important Criteria for Selecting a Local Partner

• Industry Experience o What is the background of the company? o What companies do they currently represent? o What experience do they have with nutritional ingredients? o How successful have they been in growing sales?

• Regulatory Experience/Support

o What regulatory staff is in place? o What experience do you have in registering currently non- approved ingredients?

o What ongoing regulatory support do you provide?

Important Criteria for Selecting a Local Partner

• Marketing/Sales Support o What sales/marketing staff is in place? o How is your sales organization structured? o How do you support the marketing of a new product? o How would you keep us informed?

• Importation Procedures

o What importation procedures need followed? o What staff is in place to handle importation?

• References

Working with Your Partner • Take time in the selection process

o Understand the market, the players, etc. o Manage the process like hiring an important employee

• Actively assist registrations • Protect your intellectual property • Require an annual sales/marketing plan • Require sales reports by customer • Provide more information than you think is needed • Lead your partner • Build the market together • Provide them with the tools to sell your products • Be patient

Promoting Your Products

“Our distributor is responsible for the marketing activities for our products. We’re not very happy with our sales or awareness of our product.”

Promoting Your Products • Take responsibility for your marketing & communications activities

• Hire a public relations/advertising firm o Your investment will pay off

• Develop a communications plan

• Get involved with industry trade associations

• Build a Brand

Building a Brand

Brand – A perception or emotion

maintained by the consumer,

describing the experience related

to doing business with an

organization offering a product

or service.

Great Brands Have a Singular Focus

• Nike is about athletic performance

• FedEx is about overnight delivery • Marlboro is about the macho cowboy • Apple is about the cool digital future • Starbucks is about coffee indulgence

Wellness Brands

Brand Positioning • Seeks to develop ownership of a concept in the mind of your target audience

• Develops a focus on what the product is about and does

• Differentiates your product from the competition

• Establishes why your target audience should believe you

Brand Positioning Model

• Frame of Reference: The association between your brand and the target audience that makes your product relevant. Establishes the "category". • Differentiating Benefit: The differentiating benefit and value proposition must be unique to your product. • Reasons to Believe: Proof that your value proposition is true. For example, scientific studies, patents, trademarks, etc.

For target audience, brand name is the frame

of reference that provides differentiating benefit

because of reasons to believe.

Over communicated?

Information Overload

Too many choices

Messages need simplification

INNOVATION

BRAND DEVELOPMENT

CUSTOMER SERVICE

• Product development • Intellectual property • Invest in science

• Quick response • Sales Team • Technical Support

• Segment-specific marketing

• Brand consistency • Take time to plan

Successful Nutrition Brands

Marketing Resources

• Nutrition industry web sites and trade publications

• Industry trade associations • Industry trade shows • Public Relations Society of America (PRSA) www.prsa.org • American Marketing Association (AMA) www.marketingpower.com

Reasons International Businesses Don’t Succeed

• Lack of organizational focus o International business not a priority

• Lack of planning

• Barriers to entry halt efforts o Regulatory a common barrier

• Lack of resources o Appropriate resources not identified and allocated

• No patience

GRIP IDEAS International Expertise

• Importation Feasibility • Registration Assessment & Submissions • Partner Identification & Selection • Distributor Management • Business Development Agreements • Marketing Program Creation & Implementation • Sales Calls & Support

GRIP IDEAS Contact Information

Steve Hanson Owner +1.480.488.0969 steve@gripideas.com www.gripideas.com