How to Revolutionize Exports?

The Case of Estonia

Anu-Mall NaaritsGeneral Manager

Marketingi Instituut

Estonia• Re-independent since 1991• 45,227 km2 (similar in size to

Denmark or the Netherlands)• 1.34 million (68% Estonians,

25 % Russians)• Capital Tallinn (403,000)• Estonian• Currency Euro (2011)• Member of EU and NATO

(2004)• Member of Schengen zone

(2007)

• http://www.investinestonia.com/?internalUrl=whyInvestInEstonia

Key sectors

ICT and electronics Transport and logistics

services Business and financial

services Industrial machinery

and metalworking

Main economic indicators, 2010 GDP real growth (%) 3.1

GDP (current prices, billion EUR) 14.5

GDP deflator (%) 1.5

Consumer price index (%) 2.7

Employment (15–74 years old, thousands) 570.9

Employment growth (%) -4.2

Unemployment rate (ILO) 16.9

Average wage (EUR) 791

Wage real growth (%) -2.0

Current account (% of GDP) 3.6

GDP growth and inflation, 2002-2010

7,87,1

7,59,2

10,2

7,1

-3,6

-14,1

3,1

-15

-10

-5

0

5

10

15

-15

-10

-5

0

5

10

15

2002 2003 2004 2005 2006 2007 2008 2009 2010

gdp growthinflation

Source: Statistics Estonia

A NEW TRAINING PROGRAM TO BE LAUNCHED

Goals for the new program• Increase export • Help companies to find new export sales

managers• Decrease unemployment among

graduates

The program• Recruit 25 new export

sales managers to 25 companies

• 12 month export training

• Personal mentor• Study visits abroad

export sales manager

mentor

company

Requirements25 export sales managers• Graduates• 1st or 2nd job• Fluent English, Estonian

+ 1 foreign language• Experience from abroad• Motivated to start sales

career

25 export companies• Min 640 000 euros

export sales • 20 - 250 employees• Production or services• Targets a new market• Employs a new export

sales manager for 12 months

• Or appoints a person from other position

Challenge to recruit25 export sales managers 25 export companies

…during 2 months or the program would not start

Strategy• Nationwide intensive media

communication to maximize the amount of applicants

• Group selections to speed the process up• Communicate clear course of actions to

partners, get them committed

Maximise applications (3 weeks)

Test and approve (1 week)

Match companies with candidates (3 weeks)

Match with coaches (2 weeks)

CHALLENGE 1: GET ENOUGH APPLICATIONS

Media campaign• Intriguing name: Export

revolution• Press conference• 80 articles• Advertising in central

media• Mailing lists and

networks• Social media• Telemarketing for

companies

Results

Export sales managers• 511 applicants• 189 qualified

• 120 passed the language test

Export companies• 67 applicants• 35 qualified

CHALLENGE 2: MATCHING COMPANIES AND CANDIDATES

Challenges

• High risk decision for both parties• Candidates with no previous experience • How to know the sales potential of 120

candidates with almost no time?

Work fair

Schedule• 5 days pre fair access to CV-s / to companies’

information• 30 min pre-briefing• 1 hour 120 candidates meet the 27 companies• 30 min select up to 10 best candidates• 1 hour schedule interviews• up to 10 interviews 25+5 minutes• Selection narrowed to 4-6 candidates

Final selection• Managed by companies

– Meetings in companies– Tests– Personal assignments– Group works

• First 25 got into the program

CHALLENGE 3: MATCH COMPANIES AND COACHES

Matching with coaches• 10 coaches• 25 companies + 25 new export sales

managers• Speed date 5 minutes meetings• combination based on their preferences

LESSONS LEARNED

Key success factors• Media support created an image of VIP (Very Important

Program). Meaningful name and “mission impossible” were well understood!

• Extreme speed of recruitment sorted out the most motivated from both sides

• Sense of competition increased speed of decision making

• Daily internal communication with all participants• Passionate participants: companies, candidates,

mentors, Marketingi Instituut, ITM Worldwide and Enterprise Estonia

Key learning points• Motivation, motivation, motivation!• Graduates’ the CV-s do not show their potential• Program was not for unemployed • Innovative recruitment strategy sets extremely

high expectations to innovative training methods

6 months later

• 1 company quitted, 1 export manager quitted, 1 change of coach

• All the others are very happy!

• Export is increasingly popular among small and micro companies!

Thank you!

Questions?

Top 6 export and import countries

Exports ImportsFinland 17,0% 14,9%

Sweden 15,6% 10,9%

Russia 9,7% 8,3%

Latvia 9,0% 10,9%

Germany 5,2% 11,3%

Lithuania 4,9% 7,7%

Export ImportMachinery and appliances 22,6% 23,5%

Mineral products 15,7% 17,5%

Wood and articles of wood 9,1% 2,8%

Base metals and articles of metals 9,1% 10%

Misc. manufactured articles 7,6%

Transport equipment 6,5% 7,1%

Chemical products 4,5% 8%

Food products 4,0% 6,3%

Live animals, animal products 3,7%

Textiles and textile articles 3,6% 5%

Plastics and rubber 3,2% 5,6%

Paper and paperboard; printed materials 3,2%

Other 7,2% 14,2%

Industrial Production