Goodada has been designed as a platform to allow you to promote your products to international markets. People often ask for tips on how to grow their export sales. So I have listed 7 tips that will help bring success to your international sales strategy.
Tip 1 – Select a limited number of Products to promote internationally
You should export products which have the highest international appeal and in turn have the highest chances of success for your company.
Each product that you are seeking to sell into a new market needs to be properly researched to see if it is suitable for the new market. Areas to be researched include:
What are the unique selling points of your product when compared to the competitors’ products in the targeted Market
- Does your product meet local Government Health and Safety requirements?
- Do you have any data sheets available in the language of the target market?
- Do you have marketing material for your product which has been tailored for the local market?
- Has a proper Sales and Marketing plan been created for the products?
It is recommended that when launching into a new market that the optional number of products is 30. The reason for this is
- The investment cost is kept to a minimum.
- Not all your products will be successful in a new market. With 30 products you are able to provide yourself with an optimal number so that your chances of success on some products will be maximised.
- It will be easier for Promoters, Distributors and agents to work with a well-defined product range.
Another strategy is to use the following approach:
Year 1 – Export 10% of your range of products
Year 2 – Export 30% of your range of products
Year 3 – Export 60% of your range of products
Year 4 – Export 100% of your range of products
Tip 2 – Identify the countries that you want to develop
When looking to grow your export business you need to ask yourself these important questions
- Define what makes a perfect export market for your business?
- What countries do you want to export to?
- Why do you want to sell to this country?
You should take a strategic look at the world and undertake an exercise to establish which countries offer the best prospects for your business.
You should also use the list outlined in Tip 3 to work out suitable countries for your product and business.
Tip 3 – Use the right criteria to identify your target countries
If you pick the right markets for your company’s products, you will dramatically increase the chances that your product will become successful in this market.
A simple list like below will allow you to commence on selecting suitable markets for you to target:
- Market Size and Prosperity
- Client Profiles
- Preferred Purchase Routes
- Market Prices
- Competition
- Government Regulation
- Import Duties
- Exchange Rates
- Logistics and Supply Chain
- Business Culture
- Language
- Time Zones
- Ease of travel
You should look at all the major markets in the world and score them on each of the above criteria.
A simple example to use is if you produce alcoholic products there is little chance of success in trying to sell your product into a market where alcohol is prohibited by the local government.
Tip 4 – Don’t ignore countries and markets that are close to you
When deciding on new markets, don’t forget the ones nearest to you. The reasons for this is include
Travel
- You can quickly get across to meet a customer in this market
- The cost of travel is normally a lot cheaper when compared to distant locations
Time Zones
It is easier for you to be available during the working day of your customers in the new market.
Logistics
It is usually quicker for you to send your goods to customers in markets which are closer to your market.
Duties and Taxes
You will find that import duties are very low or non-existent with countries and markets that are close to your country.
While the above are import points, the market that you choose should be primarily based on the product that you are selling and where it will most likely be purchased.
Tip 5 – Consider using local Partners to develop your Market
One of the biggest challenges for SME’s is to try to promote their products into new markets. Most SME’s can’t justify the expense of opening an office and employing staff in each overseas market.
On the opposite side most buyers would prefer to be introduced to new products from somebody locally rather than a company based in another country.
There are many strategies for entering a new market which address both of the above observations. Some of the more common strategies are:
- Supply Chain Partners based in the new market.
- Distribution Partners based in the new market.
- Sales Agents based in the new market.
- Joint Venture with a company based in the new market
- Acquire a similar business based in the new market
- Open a Branch Office in the new market
- Direct Sales from your country to the new market
The most successful are at the top of the list. It’s worth noting that the options higher up the list have a greater degree of local support, the ones further down have less local support.
Supply Chain Partners
Supply Chain Partners such as Freight Forwarding companies can promote your products into new markets at no cost to you. It is important to remember that it is in their interest to promote your product as they can then grow their freight business when your sell products to these new customers.
Distributors
These are companies which buy, stock and sell your products direct to their customers in the new market.
Sales Agents
These are freelance salesmen who are normally are paid a commission on the sales they make. The agent sells your product but you supply and invoices directly to the customer and then pay them their commission.
Joint Venture
This is a partner in a new market who will work with you to promote your product in their market and you share the profits.
Tip 6 – Fully Research Your Targeted New Market
When preparing to launch into a new market you should have a checklist of items to review so that your business and product are fully ready for the new market that you are going to enter. Make sure that all items have been addressed before you launch the sales of your product.
Items your list should cover include:
- Has all local regulations and legal requirements been complied with?
- Has the local business culture and any differences been addressed?
- Is you plan robust enough to deal with more or less orders than you intended?
- How will you provide support to customers in the new market?
- How will faulty products be returned back to you?
- How will you repair or replace products?
- How often do you intend to visit the market that you are developing?
- Can you make an emergency visit if required?
- Have you taken differences in exchange rates into your selling prices?
- What if the economic conditions change in the market?
It can take a long time to build a reputation in a new market but it only takes seconds to destroy it. So make sure that you have put the structures in place to enhance the reputation of your business and products.
Tip 7 – Keep Developing New Markets
Once you have successfully developed your first market – keep going!
The hardest market is usually the first. This is because you have had to set up a lot of new processes and procedures to internationalise your business and Products.
However once you have successfully developed this first market then all you have to do is follow the same approach, processes and procedures to launch into another market.
Aidan Conaty – Founder of Goodada.
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