Penetrating New Export Markets with New Distributor Partners

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  Exporting to New Markets is always an excellent idea - but selecting which markets and then how to target these in terms of identifying / selecting and working with the correct distributors is frequently confusing and daunting This brief presentation helps to highlight some key steps with some tips that I hope you will find helpful If you need any more help - or have any questions please don't hesitate to contact me
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  • 1. Penetrating New Export Markets with New Distribution Partners Graham Crews
  • 2. Initially need to identify / classify opportunities • Target Markets / Distributors • Existing large markets • USA / Europe / Japan – top GDP • Potential large markets in the future • BRIC (Brazil Russia India China) • MINTS (Mexico Indonesia Nigeria Turkey South Africa) • Hold Markets • Markets where you have a presence that you wish to maintain • Target Distributors • That may or may not operate in these markets • May cover several smaller markets that as a whole make them a target
  • 3. Support to identify / classify opportunities • There are a wide variety of reports / support to help with this • General Information • Web based • E.g.. List_of_countries_by_real_GDP_growth_rate • Published reports • E.g. World Medical Fact Book • Several can also be analysed further for average ages personal spending on for example health care, depending upon your markets key drivers • These provide indicators to help you prioritise / classify which markets are ideal for your business
  • 4. Support to identify / classify opportunities • Once specific target markets are identified / gap analysis can be completed • Do you have a distributor in this market • Are there additional barriers to entry that would make this not target market • Regulatory restrictions • Trade issues • Exchange rates / fluctuations • Import tariffs • Other e.g. conflict • Understand the markets – e.g healthcare market specifically • Channels to market / Diversity of pharmacies • Healthcare structure / insurance • Regulations etc. • Identify potential distributors • UKTI OMIS (Overseas Market Introduction Service) report is a good starting point • Also use any other reference points may have • Other clients • Details from trade fairs etc. Tarrif report for Key Markets Market Taffif EU or MFN Russia 0% China 10% Brazil 14% India 7.5% Mexico 0% Indonesia 5% Nigeria 5% Turkey 0% South Africa 0% MFN = Most Favoured Nation - which UK is Source MADB
  • 5. Selecting suitable distribution partner(s) • Arrange to visit the target market • UKTI trade missions help – and can be subsidised • Arrange to meet a series of potential distributors during this visit • Ahead of the visit commence dialogue with these potential distributor's • Email / Skype / Telephone etc.. • This is a very key stage of initially assessing their professionalism and desire to work with you • I would ask them to tell me about the • local market the potential • the regulatory issues the channels they would focus on • the other products in their portfolio to ensure compliment your range • There is no one clear answer • Too big you may simply be an an item in their catalogue with limited focus • Too small and they may not have the access to the market key contacts • Their response details / timings / ease of communication are all factors to consider
  • 6. Selecting suitable distribution partner(s) • During the visit make sure you meet at their offices • If translation is needed ensure you have this arranged in advance • During the meeting review their comments on the market and complete a distributor review form for assessment later • Develop an initial actions plan • Business plans • Agree together an initial year action plan and predicted sales performance • Timings / lead times to be aware of (e.g. sales meetings / range reviews) • Who key targets will be – agree action plan on how/when they will arrange meetings with them • What marketing / sales support will they need • Commercial tools needed e.g. to defend pricing in market / relative to competition etc.. • Technical / Regulation requirements • These will impact directly onto the Business plan • Documentation they will require for regulations • Lead time for regulation process if applicable into this market • Understand the help and support they can give with this • Other • Staff training etc.. • Agree responses expected and lead times – e.g. monthly forecast
  • 7. Selecting Distribution Partner(s) • Following visit review all finding (facts and feelings) • Follow up any agreed actions • Sales / Marketing tools • Technical / Regulation details etc. • Finalise your decisions as soon as you can whilst the momentum is still there. • Agree Distributor Agreements Details • (Exclusivities / Channels / Regions / Targets / Forecast etc.) • Agree details for joint calls with key clients if applicable • This can be the ideal training session too • Illustrates commitment to work together
  • 8. Selecting Distribution Partner(s) • Establish a regular review process • Performance against agreed actions • Arranging diary dates • Submitting details / requirements for Regulations • Identify issues they face and agree actions to resolve these TOGETHER • Review performance against the business plans / forecast • Keep open and regular dialogue • As is most applicable - email / Skype / telephone / visits • Support them with all the issues / queries / questions they face! • Develop specifics if needed for them • As a safety net have an agreed exit plan for both parties after an agreed time period • So both parties are fully aware of what is expected of the other
  • 9. Additional factors • Some markets may require more than 1 Distribution partner • If applicable need to minimise conflict / competition • Separate by regions / routes to market • Non Drive markets • Still need the same professional approach • But a practical scaled down version • Some non drive markets will be welcome opportunistic add-ons • Possibly make the opportunity for new distributors to approach you by making it clearer on the web site seeking potential distributors
  • 10. Any Questions or queries please contact Graham Crews  +44 (0) 161 215 0836 Graham_crews Join my Linkedin Network  +44 (0) 796000 1776
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