gaining mindshare in us market
DESCRIPTION
Advice on how to do business in the US for European SMEsTRANSCRIPT
Pledges of Allegiance: Gaining Mindshare in the US Market
Presented by:Derek PerkinsPresident, Perkins Associates
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Seminar ProgrammeIntroductions
How Big is my Market?
Go West?
Slicing & Dicing the Market
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Marketing – to advertise or not?
Showtime!
Buddying up
Post-September 11th America
Introductions:Goals of the Seminar
Know issues to be aware of before doing business in US
Learn practical ways of assessing, entering and doing business in the market
Provide contact points and references for further information & assistance
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Introductions: Me
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DP INTERNATIONAL CONSULTING
DP INTERNATIONAL CONSULTING
Introductions: You
NamePositionCompany
Interest in & experience of US marketWhat do you want from this seminar?
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How Big Is My Market?
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How Big Is My Market?
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Malaysia
Argentina
Netherlands
Saudi Arabia
Greece
How Big Is My Market:GDP Comparisons
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California Italy, UK
New York China, Brazil
Texas Canada, Mexico
Florida Australia, Russia
Go West?
Not for faint-hearted or uncommitted
Needs senior management involvement
Need to audit company first
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Market entry strategies
Main options:
Agents, distributors & representativesOutsourced support (virtual company)Direct representation - sales & marketing
presence/full subsidiary (in-house/hired)JV/strategic allianceAcquisition
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Market entry strategies:Agents, Distributors, Reps
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Pros Cons
Speed of set up Work for other companies too
Existing client base Strengths may be regional
Knowledge of market Little embedding – hired hand
Market entry strategies:Outsourced Support
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Pros ConsGood visibility/”own brand” image
Focus on specialist elements, not holistic
Demonstration of commitment
Different companies doing different things
Employees focus on your company’s needs
Little direct exposure to market for company staff
Market entry strategies:Direct representation
Pros Cons
Own people on ground High cost – financial & human resources
React in best interest to market needs
Steep learning curve – employees know company, not market
Assess strategy & next steps better
High risk if not done right
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Market entry strategies:JV/Acquisition
Pros ConsBuy existing book of business
High failure rate
Resources on ground, momentum
Very high management commitment needed
Established name/brand/presence
Costs and consequences of failure significant
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Slicing and Dicing The Market: Company Size
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500 < SME
20 - 49 Small50 - 99 Medium100 - 500 Large
Slicing and Dicing The Market: Geography
New YorkLos AngelesChicagoSan Francisco/OaklandPhiladelphia
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BostonWashington, D.C.Dallas/Fort WorthHoustonDetroit
Slicing and Dicing The Market: Sectors
Consumer goods:North East corridor
Agricultural & industrial goods:Mid West (IL, MI, OH, IN)
Service industry:Everywhere. 80% of US GDP
Growth areas:Arizona, Texas, California
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High-tech:Silicon ValleyD.C.Austin/Dallas/Fort
WorthRaleigh/Durham
Research TrianglePhoenixNew EnglandNew Jersey
Showtime!Trade Shows & MissionsProbably most common vehicle for market
entryPossibly least effective (if not done
properly):
80% firms – no participation without subsidy
60% failed to follow up leads
50% neutral/negative on results18
Showtime!Trade Shows & Missions
Best uses:
Gauge local market interest
Meet potential customers/partners
Identify regional markets
Understand adaptation needed
Source: Going Global19
Showtime!Trade Shows & MissionsPre-trip:
Research partners/customers
Prepare goods/services for US market
Invite targets to booth, lunch, dinner
Send target companies information
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Showtime!Trade Shows & MissionsDuring Missions:
Devise system to capture enquiries & leadsWrite key info on back of business/lead cardsEnter into database Use literature sparingly – 65% handed out at
shows is unreadAsk open-ended questionsSELL!
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Showtime!Trade Shows & Missions
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Immediately after show
2 weeks after show
3 months after show6 months after show
1 year after show 18 months after show
2 years after show
Buddying Up – Available Support
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Buddying Up – Available Support
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• Core Services:
• Internationalization of SMEs (IOS)
•Tailored Market Information Reports
•Trade Mission Programmes
•International Business Opportunities (IBO)
Buddying Up – Available SupportDate Market Sector
May Barcelona Multi-sector
June Philadelphia Multi-sector
September Rio de Janeiro Geoscience/engineering (Oil & Gas Expo)
September South Africa (2/3 centres)
Engineering, Automotive, Professional Services
November India (2/3 centres) Medical/Environmental
November L.A. & Las Vegas Multi-sector to LA; IT sector to COMDEX, Las Vegas
December Poland & Czech Republic
Multi-sector
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Buddying Up – Available Support
Export USA initiative5 key elements:
Mentoring Market assessmentMarketing courseTrade fair visitPublicity
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Buddying Up – Available Support
Eligibility
<250 employeesEstablished track record in UKNew, innovative product, system, processNew to US marketNominated by Business Link/Trade Association
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Buddying Up – Available SupportAssistance:
Importing into USMarket researchReal estate & relocationUS subsidiary sourcing Transportation & logisticsAssembly & warehousingImmigrationConsultancy & referral services – legal, financial,
cultural, research
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Buddying Up – Available Support
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Post September 11th & Understanding America
Attitude to lifeTime
LanguageLocalization
Business etiquettePatriotism
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Pledges of Allegiance: Gaining Mindshare in the US Market
Presented by:Derek PerkinsPresident, Perkins Associates
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