MELISSA MILLER CHEMISTRY OPEN HOUSE 2014 - 2015. MELISSA MILLER.
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Working Session — Successful Export Strategy for Southeast Asia
Session Objectives
• Clarify strategic advantage and differentiators in Southeast Asia markets
• Introduce Target Market Selection Worksheet used in Commercial Outlook sessions
2
Strategy in Global Markets
3
Attitude
To be successful – in both the global and domestic markets – you must offer customers:
A REASON TO BUY FROM YOUVERSUS COMPETITORS
Differentiate (Offer Greater Customer Benefits
than Competitors)
If you don’t differentiate you become a me-too or commodity
Low PriceOver the long-term, requires lower
costs, and a drive to keep low
Competing on Low Price is Difficultfor US Exporters
4
Conceptual: Export to China
$50 Cost Disadvantage for US Exporters
$70
Total $120
China Price
$70
US Price
$100
FreightDuties
InventoryTravel
+$20 Export Costs
To Succeed Globally, Offer Superior Customer Benefit (i.e. Differentiate)
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Strategic Advantage (Strength, Capability)
•Unique product•Superior performance or quality•Specialized capabilities•Superior service
Differentiators/Value Proposition/ Reason to Buy
Customers That Care About Benefit
•Customers, market segments and applications that care the most about the benefit you can provide
Superior Customer Benefit
• Reduced energy cost• Longer product life• Improved productivity• Reduced risk• Faster response• Fewer defects• Reduced inventory• Lower cost design• Reduced maintenance• Greater enjoyment
6
Reason to Buy from You / Differentiators
Description Examples of Superior Customer Benefit (Differentiators, Value Propositions)
Strategic Advantage
• Patented• Only company that
offers_____________• First to market• Unique technology
• Our dental device is the only product on the market that allows for a simple 1-hour procedure with a general dentist versus an expensive, painful surgery with an oral surgeon. Saves thousands of dollars and reduces patient discomfort.
Unique Products
• Better quality• Better performance• Lower costs for customer
• Our stress indicator bolts allow visual inspection of tightness, from several feet away, allowing maintenance people to focus only on loose bolts. In a typical two week maintenance cycle, on an installation of 1000 fasteners, SmartBolts® can reduce maintenance time by 80% and costs by up to 50%.
• Our product lasts longer than competitors, which we guarantee with a 10-year warranty.
Superior Performance or Quality
• Unique/specialized process capabilities
• Difficult to manufacture, tight tolerance
• Unique technical or design expertise
• Our unique process capability for injection molding of a certain type of HDPE resin, allows us to make gas tanks out of plastic. The gas tanks have plastic valves – by making the tanks out of the same plastic material you get better welds – and thus lower scrap rate and costs.
Specialized Capabilities
• Shorter lead/faster response • Customization• Better technical support,
design services• Inventory management
• Unlike competitors, we respond within 24-hours.• Our shorter and more reliable lead time reduces customer
inventory by 30% versus competitors.
SuperiorService
Elevator Pitch
• We sell ___________________ to _________________________________ who
want _____________________________________________________.
• Unlike ____________, we ________________________________________.
7* Source: Adapted from Beanstalk CFO Group
(benefit)
(product/service) (customers)
(competition) (differentiator)
Exercise: Elevator Pitch
Elevator Pitch – Examples
• Example #1
We sell dehydrated lemon and lime crystals to restaurants who want the taste of real fruit and the convenience of a powder. Unlike real fruit, we have a four year dry shelf life and no water weight to ship. Unlike competitors, we use no artificial ingredients or preservatives.
• Example #2We sell temporary stents to urologists who want a catheter alternative that provides patients with a no-bag option and allows them to urinate naturally. Unlike the Foley Catheter, our stent is less painful, more hygienic because it does not drain to an external bag, and easy for physicians to insert.
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• We sell __________________________ to _____________________
who want ________________________________________________.
• Unlike ______________________, we _________________________.
• Write down your statement about your company (or about a specific product line)
• Each company take a turn explaining statement to others at your table, who will ask critical questions about differentiators
Elevator Pitch Worksheet
(product/service) (customers)
(benefit)
(competition) (differentiator)
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Tips – Elevator Speech
• Select a specific product / service• Benefit – What does your product/service do for the customer?
- What do they receive that you provide? - Does your product reduce the customer’s cost? Reduce risk? Enhance
safety? Increase productivity? Make life easier? Generate excitement? - What problem does your product solve?
• Differentiator – Why will foreign customers buy from you versus competition?- What is unique or special about your product or capabilities?- Does your product offer superior performance or quality?- Do you provide service (lead time, technical support) that competitors
cannot offer?- Do you offer a lower price?
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Questions to ask as You Listen toElevator Pitches
If they say…• It’s our reputation• It’s our quality
• It’s our service
Ask…• Reputation for what?• What aspect of quality? How do you
measure it?• How do you quantify that? How do you
convince potential customers?
• Can competitors claim the same thing?• Can they quantify how much better their product is than
competitors’?• Go deeper:
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EVALUATION CRITERIA
POTENTIAL SOUTHEAST ASIAN COUNTRY MARKETS (Evaluate Markets as High/Medium/Low in Attractiveness or Potential)
Viet Nam Thailand Singapore Malaysia Indonesia
Market Size & GrowthIs the size of the potential market for your product/service
large and growing? What is the impact of key market trends on the demand for your product in this country?
Pricing & MarginsAre pricing & margin levels favorable?
Current OpportunitiesDo you have immediate opportunities in this market
(inquiries, facilities of US customers)?
Competition & DifferentiatorsIs the competitive situation favorable? Do you offer a clear reason for customers to buy from you versus competitors?
Business ClimateIs the business climate favorable (tariffs, income, economic
growth, currency, corruption, the availability of export financing, etc.)?
Legal & ComplianceAre there major legal or compliance barriers (e.g.; product
safety, environmental, other regulatory, intellectual property protection)?
Culture, Climate or GeographyAre there major cultural, climate or geographic issues that
might help or hinder sales?
ShowstoppersAre any of the above issues showstoppers that would
prevent you from being successful in this market? — If yes, put an
“X” under that country, and don’t score.
OVERALL EVALUATION
TARGET MARKET SELECTION WORKSHEET
Thank you.
Working Session — Pursuing Your Company’s Priority Markets in Southeast Asia
Session Objectives
• Determine priority target markets in Southeast Asia • Identify next steps for pursuing export opportunities in the
region
2
EVALUATION CRITERIA
POTENTIAL SOUTHEAST ASIAN COUNTRY MARKETS (Evaluate Markets as High/Medium/Low in Attractiveness or Potential)
Viet Nam Thailand Singapore Malaysia Indonesia
Market Size & GrowthIs the size of the potential market for your product/service
large and growing? What is the impact of key market trends on the demand for your product in this country?
Pricing & MarginsAre pricing & margin levels favorable?
Current OpportunitiesDo you have immediate opportunities in this market
(inquiries, facilities of US customers)?
Competition & DifferentiatorsIs the competitive situation favorable? Do you offer a clear reason for customers to buy from you versus competitors?
Business ClimateIs the business climate favorable (tariffs, income, economic
growth, currency, corruption, the availability of export financing, etc.)?
Legal & ComplianceAre there major legal or compliance barriers (e.g.; product
safety, environmental, other regulatory, intellectual property protection)?
Culture, Climate or GeographyAre there major cultural, climate or geographic issues that
might help or hinder sales?
ShowstoppersAre any of the above issues showstoppers that would
prevent you from being successful in this market? — If yes, put an
“X” under that country, and don’t score.
OVERALL EVALUATION
TARGET MARKET SELECTION WORKSHEET
Export Obstacles and Risks
4
EExxppoorrtt OObbssttaacclleess && RRiisskkss
International Business Area Market #1 Market #2
Research, Planning and Commitment
1. Market Research
2. Target Market Selection
3. Management Commitment, Overcoming Fear
Sales Channel Partners and
Marketing
4. Identification & Evaluation of Distributor, Rep Partners
5. Partner Legal Agreements
6. Management of & Marketing Support for Partners
7. Translation/Localization, International Marketing
8. Adaptation to Business Culture (etiquette, negotiation, relationships)
9. Optimization of Website for International
10. Tradeshows/Missions
11. Service (training, repair, spare parts)
Logistics and Documentation
12. Logistics
13. HS Codes, Duties/Taxes, Landed Cost
Top 3 Action Items When You Return to Your Company
5
Top 3 Action Items When You Return To Your Company…
1)
2)
3)
Thank you.