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EXPORTING TO AN INTERNATIONAL
MARKET PROJECT WORKBOOK
Group:
Students:
1. …………………………………………….
2. …………………………………………….
3. …………………………………………….
4. …………………………………………….
5. …………………………………………….
6. …………………………………………….
7. …………………………………………….
Ho Chi Minh City, May 2019
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AGENDA
Topic 1: Goal Setting
Topic 2: Identifying Products with Export Potential
Topic 3: Determining Your Company’s Export Readiness
Topic 4: Business/Company Analysis
Topic 5: Industry Analysis
Topic 6: Developing Your Export Marketing Plan
Topic 7: Marketing Your Product/Service
Topic 8: Marketing Strategy
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TOPIC 1: GOAL SETTING
Identifying business goals can be an exciting and often challenging process. It is, however, an
important step in planning your entry into the international marketplace. The following exercise is an
additional step to help clarify your short- and long-term goals.
STEP 1: DEFINE LONG-TERM GOALS
1.1. What are your long term goals for this business in the next 5 years?
Examples: increase export sales by _____ annually or % market share or % profitability or
return on assets.
1.2. How will the international trade market help you reach your long-term goals?
STEP 2: DEFINE SHORT-TERM GOALS
2.1. For your international business, what are your first year goals?
Examples: select a sales/distribution outlet in the export markets chosen; develop relationships with
agents/distributors; participate in the trade shows or trade missions in chosen market(s).
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2.2. What are your two-year goals for your international business products/services?
Example: Modify product for metric definition; expand international opportunities from initial
penetration of a market to other similar markets.
STEP 3: DEVELOP AN ACTION PLAN WITH TIMELINES TO REACH YOUR SHORT-TERM GOALS
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TOPIC 2: IDENTIFYING PRODUCTS WITH EXPORT POTENTIAL
List below the products your company sells which you believe have export potential. Write down why
you believe each product will be successful in the international marketplace. The reasons should be
based on your current knowledge, rather than any research.
Products/Services Reasons for Export Success
Based on reasons for export success, select one or more products you believe might have the best
prospects for exporting.
STEP 1: SELECT THE MOST EXPORTABLE PRODUCTS TO BE OFFERED INTERNATIONALLY
To identify products with export potential, you need to consider products that are sold successfully
in the domestic market. The product should fill a targeted need for the purchaser in export markets
according to price, value to customer/country and market demand.
1.1. What are the major products my business sells?
1.2. What product(s) do you feel have the best potential for international trade?
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STEP 2: EVALUATE THE PRODUCT(S) TO BE OFFERED INTERNATIONALLY
2.1. What makes your product(s) attractive for an overseas market?
2.2. What do you believe international buyers will purchase your company’s products?
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TOPIC 3: DETERMINING YOUR COMPANY’S EXPORT READINESS
STEP 1: ADVANTAGES AND DISADVANTAGES OF MARKET EXPANSION
Brainstorm a list of pros and cons for expanding your market internationally.
ADVANTAGES DISADVANTAGES
STEP 2: PROBABILITY OF SUCCESS IN THE INTERNATIONAL MARKET
Based on your current assumptions about your company, your company’s products and any market
knowledge, determine your probability of success in the international market.
0% 25% 50% 75% 100%
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TOPIC 4: BUSINESS/COMPANY ANALYSIS
STEP 1: THE REASONS FOR SUCCESSFUL BUSINESS IN THE DOMESTIC MARKET
1.1. Why is your business successful in the domestic market? Give specific reasons.
1.2. What is your company’s annual growth rate?
STEP 2: THE COMPETITIVE ADVANTAGES OF YOUR PRODUCTS OR BUSINESS
What are the competitive advantages of your products or business over the domestic and
international businesses?
List them:
1.
2.
3.
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STEP 3: COMMITMENT OF IMPLEMENTING AND EXPORT PROGRAM
3.1. What is your level of commitment and that of your company’s top management to
expanding into international markets?
3.2. How much preparation time, planning and resources are you willing to commit to
implementing and export program?
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TOPIC 5: INDUSTRY ANALYSIS
STEP 1: DETERMINE YOUR INDUSTRY’S GROWTH FOR THE NEXT THREE YEARS
Talk to people in the same business or industry, research industry-specific magazines, attend trade
fairs and seminars, and search the U.S. Department of Commerce’s website for industry specific
reports at [Link]
STEP 2: RESEARCH HOW COMPETITIVE YOUR INDUSTRY IS IN THE GLOBAL MARKETS
Locate industry sector reports available at [Link], evaluate import-export statistics from the
Bureau of Census ([Link]), or contact your trade association, local U.S. Small Business
Administration (SBA) office or the nearest U.S. Department of Commerce’s Export Assistance Center
(EAC).
STEP 3: FIND OUT YOUR INDUSTRY’S FUTURE GROWTH IN THE INTERNATIONAL MARKET
Have you contacted your nearest U.S. Export Assistance Center (EAC) for information on U.S.
government programs that can help you to identify qualified, potential agents or distributors in your
target markets, including the Gold Key and International Partner Search programs?
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STEP 4: RESEARCH FEDERAL OR STATE GOVERNMENT MARKET STUDIES THAT HAVE
BEEN CONDUCTED ON YOUR INDUSTRY’S POTENTIAL INTERNATIONAL MARKETS.
Obtain information available through the U.S. Department of Commerce at [Link], or
contact your local EAC, SBA, or SBDC office, or your trade association.
STEP 5: FIND EXPORT DATA AVAILABLE ON YOUR INDUSTRY.
Contact your EAC, SBA, or SBDC office or research the statistics available at [Link].
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TOPIC 6: DEVELOPING YOUR EXPORT MARKETING PLAN
STEP 1: SELECT THE BEST COUNTRIES TO MARKET YOUR PRODUCT.
Research the [Link] website for U.S. Department of Commerce Country Commercial
Guides for each country in which there is a Foreign Commercial Service presence. In addition, the
Department of State has background reports on each country at [Link], as does the Central
Intelligence Agency’s World Factbook which can be accessed at [Link].
(1) Select 3 countries you think have the best market potential for your product;
(2) Review the market factors for each country;
(3) Research data/information for each country;
(4) Rate each factor on a scale of 1–5 with 5 being the best; and
(5) Select a target market country based on your ratings.
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CRITERION TO SELECT THE BEST COUNTRY
Country 1 Country 2 Country 3
No. Market Factor Assessment Weight
Score Total Score Total Score Total
1 Demographic/Physical Environment:
1.1 Population size, growth, density
1.2 Urban and rural distribution
1.3 Climate and weather variations
1.4 Shipping distance
1.5 Product-significant demographics
1.6 Physical distribution and communication network
1.7 Natural resources
2 Political Environment:
2.1 System of government
2.2 Political stability and continuity
2.3 Ideological orientation
2.4 Government involvement in business
Attitudes toward foreign business (trade restrictions,
2.5
tariffs)
3 Competitive Environment:
3.1 Other competitive offerings
3.2 Uniqueness of your product/service
Pricing of competitive products (non- tariff barriers,
3.3
bilateral trade agreements)
3.4 National economic and development priorities
4 Economic Environment:
4.1 Overall level of development
4.2 Economic growth; GNP, industrial sector
4.3 Role of foreign trade in the economy
Currency: inflation rate, availability, controls, stability
4.4
of exchange rate
4.5 Balance of payments
4.6 Per capita income and distribution
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4.7 Disposable income and expenditure patterns
5 Social/Cultural Environment:
5.1 Literary rate, educational level
5.2 Existence of middle class
5.3 Similarities and differences in relation to home market.
5.4 Language and other cultural considerations
6 Market Access:
6.1 Limitations on trade: high levels, quotas
6.2 Documentation and import regulations
Local standards, practices, and other non-tariff
6.3
barriers
6.4 Patents and trademark protection
6.5 Preferential treaties
Legal considerations for investment, taxation,
6.6
repatriation, employment, code of laws
7 Product Potential:
7.1 Customer needs and desires
7.2 Local production, imports, consumption
7.3 Exposure to and acceptance of product
7.4 Availability of linking products
7.5 Industry-specific key indicators of demand
7.6 Attitudes toward products of foreign demand
7.7 Competitive offerings
8 Local Distribution and Production:
8.1 Availability of intermediaries
8.2 Regional and local transportation facilities
8.3 Availability of manpower
8.4 Conditions for local manufacture
Total 100%
Comments:
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STEP 2: RESEARCH HOW COMPETITIVE YOUR INDUSTRY IS IN THE GLOBAL MARKETS.
2.1. What is your present domestics market percentage?
2.2. What are the projected sales for similar products in your chosen international markets for
the coming year?
2.3. What sales volume will you project for your products in these international markets for
the coming year?
2.4. What is the projected growth in these international markets over the next five years?
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STEP 3: IDENTIFY CUSTOMERS WITHIN YOUR CHOSEN MARKETS.
3.1. What companies, agents or distributors have purchased similar products?
3.2. What companies, agents or distributors have made recent requests for information on
similar products?
3.3. What companies, agents or distributors would most likely be prospective customers for
your export products?
STEP 4: DETERMINE METHOD OF EXPORTING.
4.1. How do other Vietnamese firms sell in the markets you have chosen?
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4.2. Will you sell direct to the customer?
1. Who will represent your firm?
2. Who will service the customers’ needs?
STEP 5: BUILDING A DISTRIBUTOR OR AGENT RELATIONSHIP.
Will you appoint an agent or distributor to handle your export market? Consider legal advice from the
Export Legal Assistance Network (ELAN). A free initial consultation is available by request through
an SBA District Office, SBDC, SCORE or U.S. Export Assistance Center.
5.1. What facilities does the agent or distributor need to service the market?
5.2. What type of client should your agent or distributor be familiar with in order to sell your
product?
5.3. What territory should the agent or distributor cover?
5.4. What financial strength should the agent or distributor have?
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5.5. What other competitive or non-competitive lines are acceptable or not acceptable for the
agent or distributor to carry?
5.6. How many sales representatives does the agent or distributor need and how often will
they cover the territory?
5.7. Will you use an export management company (EMC) to do your marketing and
distribution for you? Yes No
EMCs do not have to represent your company exclusively on a worldwide basis. Rather, they
sometimes can represent you in specific regional markets. For example, you might contract with an
EMC to sell your products in Latin American markets, while you continue to handle direct export sales
to Europe and Asia.
If yes, have you development an acceptable sales and marketing plan with realistic goals you agree
to?
Comments:
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TOPIC 7: MARKETING YOUR PRODUCT/SERVICE
Given the market potential for your products in international markets, how is your product or
service distinguished form others-attractive or competitive?
1. What are your product’s advantages?
2. What are your product’s disadvantages?
3. What are your competitors products’ advantages?
4. What are your competitors products’ disadvantages?
What needs does your product fill in a foreign market?
What competitive products are sold abroad and to whom?
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How complex is your product? What skills or special training are required to:
1. Install your product?
2. Use your product?
3. Maintain your product?
4. Service your product?
What options and accessories are available?
1. Has an aftermarket been developed for your product?
2. What other equipment does the buyer need to use your product?
3. What complimentary goods does your product require?
If your product is an industrial good:
1. What firms are likely to use it?
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2. What is the useful life of your product?
3. Is use or life of product affected by climate? If so, how?
4. Will geography affect product purchase; for example transportation problems?
5. Will the product be restricted abroad; for example tariffs, quotas or non-tariff barriers?
If your product is a consumer good:
1. Who will consume it? How frequently will the product be bought?
2. Is consumption affected by climate?
3. Is consumption affected by geography; for example, transportation problems?
4. Will the product be restricted abroad; for example, tariffs, quotas or non-tariff barriers?
5. Does your product conflict with traditions, habits or beliefs or customers abroad?
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TOPIC 8: MARKETING STRATEGY
In international sales, the chosen “terms of sale” are most important. Where should you make the
product available: at your plant; at the port of exit; landed at the port of importation; or delivered free
and clear to the customer’s door? The answer to this question involves determining what the market
requires, and how much risk you are willing to take.
Pricing strategy depends on “terms of sale” and also considers value-added services of bringing the
product to the international market.
STEP 1: DEFINE INTERNATIONAL PRICING STRATEGY
1.1. How do you calculate the price for each product?
1.2. What factors have you considered in setting prices?
1.3. Which products’ sales are very sensitive to price changes?
1.4. How important is pricing in your overall marketing strategy?
1.5. What are your discount policies?
1.6. What terms of sales are best for your export product?
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STEP 2: DEFINE PROMOTIONAL STRATEGY
2.1. What advertising materials will you use?
2.2. What trade shows or trade missions will you participate in, if any?
2.3. What time of year and how often will foreign travel be made to customer markets?
STEP 3: DEFINE CUSTOMER SERVICES
3.1. What special customer services do you offer?
3.2. What types of payment options do you offer?
3.3. How do you handle merchandise that customers return?
