C H I S I N A U

2016

FOREIGN MARKET SECTOR BRIEFS

METHODOLOGICAL GUIDELINES HANDBOOK

MIEPO

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TABLE OF CONTENTS

RESEARCH METHODOLOGY FOR FOREIGN MARKET SECTOR BRIEFS

A. Rationale for foreign market sector briefs 3 B. Research objectives 4 C. Defining research target audience 6 D. Research approach 8 E. Research techniques 10 F. Setting a timescale 13 G. Defining research outputs and deliverables 15 H. Calculating a realistic research budget 16

STEPS IN DESIGNING FOREIGN MARKET SECTOR BRIEFS

A. Foreign Market Sector Briefs action planning and execution 19 B. Efficient formulation and presentation of Foreign Market Sector Briefs 21 C. Effective dissemination of Foreign Market Sector Briefs 23

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RESEARCH METHODOLOGY FOR FOREIGN MARKET

SECTOR BRIEFS

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A. RATIONALE FOR FOREIGN MARKET SECTOR BRIEFS

Providing trade development organizations and exporters with a research oriented

Foreign Market Sector Brief (FMSB) is a useful practice in establishing an informed

decision making process. The Brief contributes to what you need to know from the

target foreign sector.

However, the Brief is a cornerstone both for trade support entities and exporters. The

first could use the advantage in providing such an efficient tool, delivering services to

exporters and to be a business voice in policy making and networking. For the latter,

the Brief should help in researching export markets, in performing export and supply

chain management and to comply with market and procedures requirements.

The sector analysis includes all-important considerations and covers:

geography and product;

sector trends, competitors, supply chain;

market requirements and opportunities.

FMSB provides the companies with important information which will allow them to

answer to the following questions:

how can we determine an potential market and product?

is the chosen country a proper one in terms of purchasing power and consumer

habits?

are country sector market characteristics favorable for us?

how can we cope with market requirements and trade barriers?

how do we have to establish the distribution and who are our competitors?

are there any market opportunities, including B2B?

Generally, the brief will help in contributing to an overall and complex understanding

of foreign market sectors and reveals Moldova’s specific sector export potential and

market opportunities.

In particular, due to small scale internal market and quite limited resources, the export

means much more for Moldova than for other countries in the region. It can (and

should) be a crucial engine in generating growth. Such good practices tools like Foreign

Market Sector Briefs are essential in supporting trade development of representative

local products into development markets.

It is also important that it’s done by well substantiated works, in terms of structure,

methodology and market oriented research.

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B. RESEARCH OBJECTIVES

By setting research objectives the FMSB aims to focus on detailed goals in terms of

what it needs to describe and develop; is it in line to understanding and exploring

(more qualitative oriented objectives), related to consumer habits, trade barriers or to

ascertaining and measuring (more quantitative oriented objectives), related to market

trends and characteristics.

The stated objectives are more likely to succeed if to

follow the well known S.M.A.R.T. acronym, which means

Specific, Measurable, Achievable, Realistic, Timely.

Folding these goals on determining how do the research

objectives include each S.M.A.R.T. item is resulting in the

representation below.

Element Brief research objectives

Specific to target proper market sectors and products

Measurable assessment of foreign market sector dynamics

Achievable checking availability on market data

Realistic reviewed points on covering the entire ”picture” on distribution, consumer and competitors chain

Timely ensuring a time scale to complete research goals

It is important (1): research objectives contribute to the

overall development of FMSB purpose of being a

complete and reference study AND research objectives

should be in line with business objectives in approaching

and understanding foreign market sectors.

It is important (2): there should be a clear difference

between what we need to know through brief research

objectives AND what is nice to know.

The FMSB research objectives inform involved actors on a structured study

methodology and categories, provide a toolkit of useful instruments and apply these

tools in determining sector trends, requirements and opportunities.

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In particular, the aim of the research will address the following:

to understand European sector dynamics for specific products;

to argue the choice of particular country and sector;

to determine export procedures and entities’ trade agreements issues;

to establish target countries’ consumer habits and trends;

to assess foreign sector market size and characteristics for chosen products;

to understand buyers, quality and industry requirements;

to appreciate market opportunities in line with DCFTA and B2B issues.

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Country (es)

trends

challenges

Sector (s)

structure & trends

requirements

challenges

Consumers & Competitors

habits & revenue

import & export

business practices

B2B

C. DEFINING RESEARCH TARGET AUDIENCE

FMSB research target audience is a segment of entities having specific involvment in

conducting research actions and/or being a user of brief outputs.

As a guideline it is recommended that target audience for Foreign Market Sector Brief

be:

research oriented – where the research categories are treated as research

object in the brief structure;

beneficiary oriented – where the research categories are treated in terms of

traders, support institutions etc.

It is important (1): in both cases, the defining of target

audience should take into account the following steps:

gathering information on target audience, search

audience data, use specific research summaries.

It is important (2): find a clear answer to question ”who

is involved?”.

The profile of audience is identified as an asnwer to the questions:

who do you want to approach?

who do you want to research?

is the audience an aggregate structure (sector), economic entity, trade

development related organization?

are target audience characteristics relevant in terms of size, data availability?

how many entities do you want to involve?

In particular, FMSB research oriented target audience should cover the elements

approached as a part of foreign sector analysis. This way, the following representation

argues the deed.

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Sector related ministries/policy makers

Ministry of Economy, Ministry of Agriculture and Food Industry

Trade support and development organizations

Exporters from 2 branches: food &

industry Food exporters

- MIEPO

- Chamber of Commerce

Industrial exporters

On the other hand, FMSB beneficiary oriented target audience should cover the

elements approached as a part of system including economic entities, trade support

organizations and policy makers.

Ultimately, some crucial actions are to be taken in order to ensure a proper defining of

research target audience:

Actions Comments

Choose the audience in terms of research and beneficiary issues

Consider the characteristics of audience in terms of size, trends, requirements, opportunities

Assess the decision do we understand the audience? how can we reach it?

Involved resources in terms of human, financial and time issues

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D. RESEARCH APPROACH

Research objectives of the FMSB would best be met if the research approach will

represent a ”launching ramp” for research techniques. However, a qualitative,

quantitative research or a combination of these should be taken into consideration.

Study developers must understand that each part of the structured brief requires

specific research, so a pragmatic approach (mixed methods) could be the best fit.

It is important (1): alternative research approaches should

be analyzed; none of the research strategies are

considered to be superior or inferior to the others.

It is important (2): the preferred methodology is the

proper application, in terms of resources and time.

It is important (3): the research approach must emphasize

what can businesses, trade support and policy making organizations learn from its use.

Quantitative research approach will answer to the questions / will tell study

developers:

is there a market and a product for selected entities ?

how many competitors and consumers are there ?

what is the profile of purchasing power?

how many partners in supply chain can be approached in selected market ?

Because the chosen form is a FMSB, the recommendations on quantitative research

approach are oriented to a detailed and proficient desk research.

Qualitative research approach will answer to the questions / will tell study

developers:

what are market/sector requirements ?

what is the profile of consumer habits ?

how price and market requirements affect decision-making ?

how country agreements and business opportunities affect export potential ?

In applying research approach, the authors will ensure the use of deductive and

inductive methods, carefully selected:

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Inductive methods

deep understanding od research object

collecting mainly qualitative data

relatively flexible approach to research structure

avoiding generalizing categories

Deductive methods

data oriented approach

relationship between variables need an explanation

highly structured categories

concepts of research have to ensure the clarity

General recommendations :

initiate the FMSB with a quantitative oriented research approach,

then develop the study by using the qualitative methods;

use a variety of data sources;

use a variety of research methods;

use multiple perspectives to interpret the results.

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E. RESEARCH TECHNIQUES

Research techniques are useful tools to: find out more about the research object,

develop an understanding of the researched environment and draw objective

conclusions.

Generally, in drafting market studies, two category of techniques are taken into

account:

Primary Research – involves collecting of information that does not exist in a

structured form, yet. It supposes and extensive knowledge on the researh

object.

Secondary Research – involves the revision of the existing data, then summary

and conclusions are presented.

In particular, FMSB are requiring an extensive secondary research by using the best

practices within potential and sector assessment tools.

In recommending different research techniques one must refer to the following

structures of them:

Research techniques Comments

Audience research technique analysis of consumers, habits, purchasing power

Product research technique marketing, placement and trade requirements

Sector/market research techique distribution and business practices, trends and opportunities

When referring to FMSB drafting, some specific research techniques should be used:

Aaker method1 for market sector analysis, in Europe for instance: market size,

trends, growth rate, distibution channels.

CAGR (Compound Annual Growth Rate): useful in assessing sector dynamics and

involving the mean of annual growth rate over a specified period of time longer

than one year.

1 http://www.netmba.com/marketing/market/analysis/

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Export Potential Assessment (EPA)2, representing specific indexes on market

import-export trends, such as: share in exporting country’s exports, unit value,

exported growth in value within a specific period (in years), share of partner

countries in world imports etc. Data: COMTRADE3, UNCTAD4, INTRACEN5

Boston Consulting Group (BCG) Matrix6, adapted to foreign market sector analysis

and related to partner for export. Data: COMTRADE, UNCTAD, TRADE MAP

Example of Moldova’s products matrix oriented to regional market:

Case Study7, involving a structured analysis on specific issues. Can be used on

target country demographic, purchasing power and consumer habits

characteristics. Data: World Bank, National Accounts

Trade Map, involving the competition framework. Data: COMTRADE, UNCTAD,

TRADE MAP

B2B platforms, representing business opportunities on entities, structured in

specific sector segments. Data: INTRACEN

4Cs analysis8, involving adapted country (C) and sector context, channels (C),

customers (C) and competitors (C) approach.

Register of legal acts9, useful in appreciating trade agreement, export

requirements.

EXPORTHELPDESK10, an interactive platform informing on market and tariff

requirements in EU.

Integrated Customs Tariff (ICT)11, useful in understanding Moldova’s export

procedures, acts etc.

2

http://www.intracen.org/uploadedFiles/intracenorg/Content/Exporters/Market_Data_and_Information/Market_Analysis_Tools/131203-ExpPotAssessment-1p-EN.pdf 3 http://unstats.un.org/unsd/tradekb/Knowledgebase/How-to-query-data-from-UN-Comtrade

4 http://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx

5 http://www.intracen.org/itc/market-info-tools/market-analysis-tools/

6 http://www.netmba.com/strategy/matrix/bcg/

7 https://awc.ashford.edu/tocw-guidelines-for-writing-a-case-study.html

8 http://www.netmba.com/marketing/situation/

9 http://lex.justice.md/index.php?lang=2

10 http://exporthelp.europa.eu/thdapp/display.htm?page=re%2fre_Tutorial.html&docType=main&languageId=en

11 http://www.customs.gov.md/ro/content/tariful-vamal-integrat-al-republicii-moldova#

Losers in growing sectors Winners in growing sectors

Fruit, nuts

Vegetables and tubers

Cereals

Dairy products, eggs, honey

Preparations of cereals, flour

Losers in declining sectors Winners in declining sectors

Animal and vegetal fats and oils

Live animals

Cocoa and preparations

Sugar and sugar confectionery

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Other techiques related to secondary research.

It is important (1): research techniques have to find the answer

to the proposed brief structure.

It is important (2): do not limit to an exact number of

techniques for each researched item; developing the approach

will bring a more value-added product.

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Phase 1:

pre-drafting

Phase 2:

drafting methodology related issues

Phase 3: FMSB

drafting

Phase 4: results

coordination and

improvements

F. SETTING A TIMESCALE

In setting a timescale is crucial to understand ”the big picture” of what you have to

undertake within the whole process of drafting FMSB.

It is important (1): timescale should be calculated to

meet the deadline; it must be proportionally and logically

divided.

It is important (2): not only the namely briefs are

activities that must be measured in terms of time;

different and necessary meetings and decision-making

processes must be considered.

FMSB drafting requires 3 steps in terms of time:

Phase 1, pre-drafting: an important step to understand what have to be done;

activities should refer to meetings with beneficiary target audience to evaluate

their needs and recommendations; also it involves the work on defining strategy

for FMSB developers and on defining allotted time for outputs (as number and

structure) and brief layout. Recommended time: about 3 man-days.

Phase 2, drafting methodology issues: a second step intended to develop

methodology and steps in designing FMSB, a specific Standard Template for brief, a

presentation on methodology to be discussed with trade support/policy making

entities. Recommended time: about 15-16 man-days.

Phase 3, FMSB drafting: the third step involving the work on FMSB, data collection

and analysis. Recommended time: about 12-13 man-days for one FMSB.

Phase 4, results coordination and improvements: involves work with beneficiaries

and trade support entity on brief improvements; submitting the deliverables.

Recommended time: about 2 man-days.

Total recommended time for methodology and 2 FMSBs is 40-45 man-days.

An useful tool to set a timescale in drafting and submitting outputs could be a Gantt

chart.

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A suggested approach with specific activities is presented below.

Activities /

Period

Task

Lead

Task

Executive

%

complete

Period/Phase

1 (month/s)

Period/Phase

2 (month/s)

Period/Phase

3 (month/s)

Period/Phase

4 (month/s)

Meetings with

involved

actors

Defining

strategy and

brief layout

Drafting

methodology,

steps and

Standard

Template

Drafting

presentation

and

conducting

Workshop

FMSB 1

drafting

FMSB 2

drafting

Coordination/

improvements

Submitting

deliverables

Total recommended time for drafting all outputs should be reflected in activities’

timesheets.

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G. DEFINING RESEARCH OUTPUTS AND DELIVERABLES

Generally, deliverables and outputs are produced in order to enable achievement of

the objectives. They are tangible things as a result of team work.

It is important (1): brief developers should focus on

”real outputs” (handbook, template, research paper)

not on ”internal outputs” which represent namely the

work during brief drafting.

It is important (2): not to confuse deliverables with

paper objectives; the first should aim to be a tangible

embodiment of the latter.

It is important (3): defining deliverables guides the research team attention to

outcomes rather than activities.

In particular, the FMSB deliverables/outputs have to answer the following questions:

what is the preferred format for the findings (word, presentation, workshop)?

how many deliverables are needed, proceeding from FMSB structure?

which are the desired deliverables?

which is their volume?

what is the order of submitting outputs?

However, a recommended logical framework in defining FMSB outputs is presented

below.

„HOW?” outputs „WHAT?” outputs

objectives set activities to do deliverables objectives set activities to do

deliverables

Understanding: method

Developing all methodology

FMSB methodology guide

Understanding: Sector regional trends „Point to

Point” execution of

FMSB structure, in

terms of quantitative

and qualitative research

FMSB papers,

depending on target sector(s)

AND country(es)

stages

Developing required steps

FMSB planning, drafting and presentation guide

Target country characteristics

format Developing content & format oriented template

Specific template Market size and trends

Sector requirements & opportunities

Oriented for trade support entities use Oriented for all entities use

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H. CALCULATING A REALISTIC RESEARCH BUDGET

The FMSB research budget will reflect how bulky is the study. It includes all kind of

costs related to:

drafting and presenting of outputs (methodology, template, briefs etc.)

presentation of deliverables

dissemination of outputs.

It is important (1): research budget should include an

indication on funds availability.

It is important (2): stipulation on different taxes has to be

included.

It is important (3): it is advisable to take the proposed

methodology and turn it into a step-by-step budget plan.

Typical divisions of the FMSB research budget are personnel, supplies, equipment,

services and indirect costs. If needed, other categories can be added. Budget has to

make clear how the totals of expenses are reached.

For example, wages information often needs to be specified in detail; also, it is

recommended to make clear if salary totals involve different rates. However, trade

support entity should analyze the funding sources (donors, government, private) and

establish a budget approach on fee payment – is it Daily, Weekly, Monthly or Lump

Sum oriented. If the period of assignment is a quarter or more, monthly approach can

be the best fit.

Primary research involves much more costs, especially related to travel and supplies;

on the other side, secondary research is less expensive, oriented on staff

remuneration.

Consider the following items when drafting FMSB research budget:

staff wages

indirect costs (for facility use, as an example)

equipment (for presentation, as an example)

consumables (paper, toner)

services (dissemination of FMSBs)

other items.

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In order to calculate a realistic research budget, the entity must undertake the

following actions:

planning and listing the activities + all cost related to each of them;

checking what does the funding (is any) cover in terms of costs;

detailing the budget, on finance lines;

developing a spreadsheet;

justifying the budget.

A specific budget pattern could be developed by using a clear and readable format. A

suggested approach is presented below.

Budget item No. of

items

Cost per

item

Total

cost

Notes

Contracting consultant 1 € 150 € 150 Hiring a trade development expert

Monthly labour cost 4 € 930 € 3720 1 month x fee rate

Dissemination of deliverables

by organization

2 € 200 € 400 1 event x target audience (exporters)

… … … … …

Other important issues are recommended to be added to research budget format:

funding (amount & terms), additional administrative costs, consultant timesheets etc.

According to data of the European Federation of Management Consultancies

Associations (FEACO), the average daily rate (ADR) for paying a qualified management

consultant in Balkans region is on average € 150. Splitting the above argued estimation

of timescale (40-45 man-days) and dividing the work on a part-time basis, one can

calculate easily the maximum remuneration for Moldova.

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STEPS IN DESIGNING FOREIGN MARKET SECTOR

BRIEFS

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A. FOREIGN MARKET SECTOR BRIEFS ACTION PLANNING AND EXECUTION

In designing Foreign Market Sector Briefs (FMSB) there are some specific steps, related

to planning and execution. The FMSB developers can follow the phases:

Planning Phase I

• it is a pre-drafting step

• it involves setting of FMSB goals and strategy on how to achieve them

• it contains forming a team responsible for FMSB designing (developers)

• it requires FMSB budget planning

• it requires FMSB time planning

Methodology stage

Phase II

• it is a methodology oriented step

• it involves the development of methodology and standard template in designing FMSB

Structure, size and coordination Phase III

• it is a content oriented step

• it involves a joint work on structure and volume of FMSB items (by developers, trade support entity, exporters)

• final coordination on how a FMSB should look and what should it contain

Implementation phase

Phase IV

• it is namely the FMSB drafting step

• it involves data collection and analysis

• it contains folding of research results on FMSB structure and standard template

• it requires a comprehensive and objective approach

Evaluation phase Phase V

• it is a checking step

• it involves assessment of any deviation in the FMSB plan and structure

• it contains the necessary corrections

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Framework setting FMSB objectives

designing research methods

collecting data

Applying concepts

using structure, data and research methods, the stated objects are accomplished

Facing research and drafting challenges

However, other important issues have to be taken into consideration:

In particular, a proper flowchart framework could be an useful tool in FMSB planning

and designing. It refers to the presentation below.

Actions Comments

Strategy AND Tactics each phase is recommended to describe goas within strategy AND activities to achieve them

within tactics

Feasibility by resources in terms of team, finance and time resources

Quantifiable results measurable milestones are crucial in FMSB designing

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B. EFFICIENT FORMULATION AND PRESENTATION OF FOREIGN MARKET SECTOR

BRIEFS

Formulation and presentation of FMSB is recommended to be oriented in such a way

that they can be used as input in a decision making process. Clear conclusions should

be drawn and objective key findings should be discussed with target audience and

trade support entity.

In designing efficient formulation of FMSB, developers have to consider the following:

problem definition

research design formulation

tools for data approach

tools for methodology approach

sample/template approach

In fact, guidelines for formatting and designing FMSB is the most advisable research

activity in this regard. In order to be efficient, FMSB formulation will encompass:

Activity on formulation Item 1 Item 2 Item 3

FMSB format summary part main body appended part

Readable style within all content structures, related to grammar too

”Easy to follow” and technical text

accurate presentation in

FMSB

not ”expected” BUT ”real” conclusions

Efficient visualization of information

tables & charts the most significat data

should be emphasized

efficient use of footnotes, headings

and sources

In a research oriented format, the formulation is related to organizing the writing

content, following the principles of FMSBs, using a proper style and accurate visual

techniques.

The formulation of FMSB is recommended to involve a clear track in linking

methodology with data, FMSB content & structure and proposed standard template.

In reference to an efficient FMSB presentation, there are some commonly accepted

techniques. Related to format, a word, pdf, Power Point or Prezi presentations are

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different alternatives. In assisting the exporters, FMSB formulation and presentation

are important elements in helping them implement research findings.

It is important (1): in oral presentations, previous reading

of FMSB by target audience is an asset.

It is important (2): presentation time has to be well

structured, allowing answers and general assessments.

It is important (3): efficient FMSB presentation states the

main findings, recommendations and it is tailored to

target audience.

Technology of reporting the FMSB research results involves presentation packages,

different word-processing techniques, text formats and subheadings. All of these are

useful tips in facilitating the integration of material in different platforms, including

web and databases, implying multimedia content: pictures, graphs, tables, animation,

video.

Oral presentations are an efficient opportunity for questions and discussions. FMSB

developers should consider the following in order to prepare a good presentation:

determine the key point that exporters need to hear;

present clearly the FMSB crucial points;

encompass as much as possible the important aspects from the FMSB structure;

check out the presentation tools;

refer shortly to methodology BUT refer broadly to target sector and country

trends, requirements and opportunities.

General and technical recommendations :

prepare 10-15 pages for a FMSB presentation;

spend no more than 20-25 minutes for presentation to

maintain the public attention ”captured”;

use a friendly and not small text font;

visualise as much as possible and do not load much text on

pages;

practice good presentation skills in terms of posture and

knowledge of FMSB details.

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techniques to communicate

dissemination strategies

achieved dissemination goals

C. EFFECTIVE DISSEMINATION OF FOREIGN MARKET SECTOR BRIEFS

In constructing a model of effective FMSB dissemination one should take into account

the dissemination strategies, objectives, efforts and costs. A targeted dissemination is

the best fit for an efficient result.

In the process, the influence is manifested by:

opinion leaders – their role is to persuade rather than to inform on FMSB data;

trade experts can be involved to disseminate FMSB role and impact;

mass media approach – radio, TV and internet approach on FMSBs developed;

target audience approach – exporters approach and their oppinion on FMSB role

and impact.

large public - its willingness to accept new knowledge.

FMSB dissemination is recommended to be conducted through a large variety of

channels in order to ensure a wide spread. These leads to the following goals.

The logical framework of FMSB dissemination involves:

Goals Actions Dissemination techniques

FMSB targeted spread to increase the rich of

evidence for exporters

professional presentation

(PPT, Prezi), e-mail, social

media

A greater confidence in

research and

methodology

to increase the entities’

motivation to use and

apply FMSB

interpersonal outreach,

opinion leaders

Improvind the image of

trade support entity to deliver useful and

complex foreign market

analysis

social networks, mass media

Effective

communication,

tailoring the message

to state a communication

and PR strategy

PR specialialists, trade

experts, graphic & numeric &

non-numeric visualisation,

content matching & feedback

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In particular, in order to achieve an efficient dissemination of FMSB to a large public,

the following techniques are quite useful:

Facebook, Twitter, My Space, YouTube, Foursquare;

TV, radio, newspapers;

Webinar, in-person visits;

Conference, involving opinion leaders

It is important (1): to respect the principles of transparency and

accurate information in disseminating the FMSB.

It is important (2): effective FMSB dissemination is propagating

along the chain: quality data – quality presentation –

completeness – audience feedback – dissemination goals

achieved.