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International Marketing (MM4731)

How to Write an Export Marketing Plan

Guidance Notes & FAQs

Professor Paul D. Ellis Dept of Management and Marketing, Hong Kong Polytechnic University

Last updated: 17 March 2008

Note: The following instructions have been developed over a period of 12 years of teaching "International Marketing" to students in Hong Kong. The notes have been used in the preparation of well over a hundred export marketing plans. Most of these plans have been completed with assistance from managers of real companies with the express aim of helping those companies develop their international marketing activities. Thus, the notes are intended to be highly practical. Lately I have been asking students to limit their selection of export markets to BOP or "bottom of the (economic) pyramid" markets. This makes good business sense for reasons explained elsewhere. Feel free to use this material in the classroom. A proper citation might be as follows: Ellis, P.D. (2008), “How to write an export marketing plan: Guidance notes and FAQs,” website: [see the link above] accessed on [insert download date].

What is an Export Marketing Plan?

Working in your study groups (4 groups per seminar class), you will be required to prepare a short

export marketing plan for a locally-made or designed product with untapped export potential. Your

product needs to be commercially viable in a BOP market. Your major project has three major

components;

Part A: selection of a suitable export product

Part B: market screening exercise leading to the selection of a potential BOP market

Part C: analysis of that BOP market in terms of its potential demand for your product

How do we pick a suitable export product?

Working in your team, you need to pick 2-4 potential products for presentation to the class (see

Appendix 14; not graded). During this presentation you will have an opportunity to get feedback from

the class and lecturer as to which product might have the best potential in a BOP market. You should

begin thinking about suitable product as soon as possible. Ask yourselves two questions:

- is there untapped demand for this product in BOP markets?

- is this product made or designed locally?

The answer to both questions should be “yes”. You then need to identify a company associated with

each of your potential products. After you have had one of your product choices endorsed in the class,

you will contact the relevant manufacturer to learn more about its export potential. (Do not contact any

companies before this presentation.)

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How do we know if our product is suitable for this project?

You are free to choose any product that you believe has untapped potential in a BOP market. However,

many students look in the wrong place and pick products which are successful in Hong Kong. Here are

three types of product you may want to avoid;

(i) conspicuous hi-tech consumer products – there may not be much demand in BOP markets

for top-of-the-line cosmetics, jewelry, pet-care products, etc.

(ii) products with low value/weight ratios (eg; most foodstuffs, beverages, herbal products,

concrete), as these might be expensive to ship to distant markets

(iii) products made in Hong Kong under license to a foreign brand-owner (eg; Mickey Mouse

dolls or Intel chips) – our aim is to promote Hong Kong-made/designed products

How do we select a company to study?

Pick a product first, then look for a local company that makes (or could make) that product. You might

identify a company through the connections of one of your group members, by browsing company

listings in an industry directory or the Trade Development Council website (www.tdctrade.com), or by

scanning the business pages of the local press (eg; Economic Journal, SCMP, AWSJ). If you’re

interested in a particular type of product, you could try a keyword search on Google (eg: “solar power

and HK” or “HK home appliances”). You do not need to identify a famous Hong Kong exporter – just

a company which has untapped export potential.

Once you have chosen a potential company, register your choice with the lecturer (see the sheet outside

the lecturer’s office). Companies will be registered on a first-come first-served basis and you cannot

choose a company that has been studied before (see Appendix 4).

If you are unable to identify a company, one will be recommended to you by the lecturer. However it is

hoped that most teams will be able to study a company of their own choosing.

How do we know if our company is suitable for this project?

Your aim is to choose a Hong Kong-made or designed product with untapped potential in BOP markets.

Suitable firms thus include manufacturers and product designers. Unsuitable firms include retailers,

traders, wholesalers, and restaurants. Make sure you choose a firm that actually owns the intellectual

property embodied in the product you wish to export (the design, brand name, etc.). Licensees of

foreign technology/brand names are not acceptable.

See also the questions listed on the proposal for further guidelines (Appendix 14).

Do we need to visit these companies or other places?

If you cannot get sufficient information to complete the project from public sources you will need to

visit the company, consulate offices, Trade Development Council library, etc. However, do not contact

your company until your choice has been approved by the lecturer. (To prevent the situation where

busy executives are contacted by several groups, companies may not be studied by more than one

subgroup.) You may also want to visit local consulate offices to get information about conducting

business in foreign countries (see Appendix 2 for a list of useful contacts).

If you do make outside trips, please document, in an appendix of your final report, full details

regarding these activities (ie: interview date, location, duration, visits to TDC, who went, etc).

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We have written and asked for an interview with our chosen company but we have heard

nothing back. The semester is nearly over – what should we do?

Never write a letter/email to ask for an interview as it takes too long to get a response. Phoning will

give an immediate response and save time. The best procedure is as follows:

(1) ring, rather than write (letters are too easy to ignore),

(2) ask for the MD/CEO by name (as it increases the chances of being put straight through),

(3) legitimize the research (stress the association with the university), and

(4) make the research sound simple and unthreatening (ask for no more than 15-20 minutes of

their time).

How should we prepare for the interview?

Never go to an interview without doing some background preparation on the company in question. If

you have found out something about their business from published sources you will have more time

available to ask more questions during the interview. Your preparation, as always, begins in the library.

Scan the PolyU library’s collection of newspaper clippings. Try the Web (eg: the TDC’s database,

Google them). You would be surprised what turns up after a diligent and thorough search!

If you are unable to find any information on the specific company you have chosen, you should at

least be able to learn some important facts about the nature of their business. Who are the major

players in this industry? What types of products do they offer? What are the major trends facing the

industry today? Familiarisation with the nature of the business will ensure that you ask more informed

questions during the interview (as well as making a favourable impression on the interviewee).

At the interview don’t forget that you are representing PolyU – so make a good impression. Be polite.

Make eye-contact. Smile. Most importantly, listen well. You should make your own list of the

questions you need to ask prior to the interview. You might want to ask questions about: (1) the

company and its chief product, and (2) the company’s history of international marketing. You may

want to take a few photos during your visit and include these in your final report.

Any other interviewing tips?

1. Allow the interviewee to finish answering questions; make notes of leads and pick up on them

later.

2. Make sure the interviewee understands the question and not simply what they think the

question is; ensure they are clear about what is being asked.

3. Write up your notes within 24 hours (while the interview is fresh in your memory).

4. Do not ask questions about confidential matters (e.g., financial performance).

What if we cannot find sufficient secondary information and the company won’t grant us an

interview?

You may need to pick another company. In past years approximately one out of every three teams has

had to go with their back-up company choice.

What BOP market should we select for Part B of the report?

Do not choose a BOP market without conducting a market screening exercise. (Various screening

techniques will be introduced in the lecture on “Selecting Foreign Markets”.) Based on your marketing

screening activities, you may choose any foreign city, state, province or country as a potential export

market for your company, as long as it is a BOP market. However, you may not choose China.

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Help! I don't know how to do a market screening exercise. What do I do?

Make sure you pay special attention in the special lecture entitled “Selecting Foreign Markets”.

How many screens should we apply?

As a general guideline, you might want to consider 3-7 screens. Each screen might have 1-4 separate

measures. For example, an economic screen might consider purchasing power, inflation, and currency

volalitility.

We can’t find any data for a particular country on a particular screen – should we eliminate it?

No! Lack of data is never a good reason for eliminating a potential market. You will be rewarded for

being creative, not for taking short-cuts.

Screens are used to eliminate unsuitable markets, but there are two ways to apply any screen, as

follows:

(i) suitable markets must meet all the following criteria to be included (X and Y and Z), or

(ii) suitable markets must meet any of the following criteria to be included (X or Y or Z)

The second kind of screen is particularly useful when you are having difficulty finding data for

evaluating markets.

Can you give us some examples of market screens and how they’re measured?

Below are some examples of innovative micro-environmental screens that past students have used for

diverse products. (Don’t try and adopt these for your product – they probably won’t fit!)

Screen Some relevant measures

Hard-working, busy lifestyles less than 4 weeks annual vacation

work week > 40 hours

Stress/insomnia urbanization rate >75% (cities are more stressful)

Liver problems alcohol consumption >10 litres/person/year

Suit wearers no. men working in services sector

Openness to foreign ideas proportion of population as international tourists

number of minutes/person/year on IDD calls

proportion of migrant/total population

imports/GDP or imports/capita

Can you give us any tips on how to do a good market screening?

Tip 1: Absolute measures (eg: GDP) are not as good as relative measures (eg: GDP per capita) when

screening markets and can lead to funny choices. For example, when looking for a large market one

group eliminated a small country and retained a large country on the basis of GDP. But then their final

choice was a state within the large country not much different in size from the country they had

previously discarded for being too small. Don’t get so caught up in the technical aspects of your

screening process that you end up comparing apples with oranges and making nonsensical choices.

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Tip 2: Don’t be afraid to take a risk. Conservative market screens will always lead you to the most

competitive market, which may not be the most attractive choice. Think outside the box. Be

entrepreneurial in sizing up potential markets. The exercise in Appendix 3 may help you get the

creative juices flowing.

What is the outcome of Part B of our project?

At the end of Part B you will have identified a specific target market(s). You should be able to describe

your target market(s) using a variety of demographic, psychographic, and lifestyle variables. (If you

have forgotten about these, reread the chapter on target marketing in your Marketing Management

textbook.) Remember, BOP consumers have low incomes, so your target market(s) needs to be large

for your venture to be profitable.

How much detail do we need to complete Part C of the report?

To analyse your chosen BOP market for your product you will need to understand both macro-

environmental factors (culture, politics, etc.) in your chosen market and micro-environmental concerns.

In short, who will be your…

- potential customers? (can you describe the target market(s)?)

- likely competitors? (can you describe substitute products in this market?)

- possible channel intermediaries? (how will you reach your target market?)

As this is a marketing plan, your report should address the following questions:

- are customer needs/conditions of use in the foreign market the same as in HK?

- will your positioning strategy be same/different as in HK?

- who are your likely competitors? What are the product substitutes in this market? How

does your product compare (in terms of features, benefits to consumers, prices)?

- what channel arrangements will you use?

Ideally you should be able to provide simple calculations leading to four sets of figures;

(i) the price in the BOP market – how much will consumers pay for this product? does this

price take into account local competitive conditions and price escalation? (see Appendix 8)

(ii) your sales forecast – how much do you expect to sell in 12 months? best/worst case scenario?

(iii) the investment cost – how much will it cost to set up this venture? how much will it cost to

ship your product? how much of a commission/margin will you allocate to

independent/integrated intermediaries?

(iv) the anticipated return on your investment – when will the venture break-even? how much of

a return will it generate?

Tools for answering these questions will be provided in the lectures and seminars.

Do we need to think about the competition in the market?

Of course! You need to demonstrate that your product-solution offers BOP customers better value than

substitute products. You should be very explicit in making product comparisons. Here is an example of

how to do this from Vycon (an award-winning manufacturer of stored energy systems)…

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Source: www.vyconenergy.com/

Do we need to be good at accounting to succeed at this project?

No. The actual numbers are not that important (although they certainly will be in the real world!). What

will be assessed are the methods you use to arrive at these figures. In short, can you demonstrate that

you know how to conduct a market screening and analyse potential demand?

Can you give us any tips on writing up Part C?

- Always remember the competition will be defined primarily in terms of other products (not other

retailers or manufacturers).

- Don’t forget to have a positioning strategy.

- Cost-plus pricing is easy to do and it may be what the company does in practice, but it’s seldom a

good strategy for achieving marketing objectives, particularly in BOP markets. Don’t use it.

- Don’t forget your product has to be physically transported to the foreign market. Have you

accounted for the cost in time (perishability) and money?

- In any weighting of variables, market characteristics (number of customers, competitive intensity)

will always be more important than macro-environmental factors (eg: currency stability, political

risk).

What does an Export Marketing Plan actually look like?

See Appendix 10 for a suggested structure and note the marking key in Appendix 12.

Should we include any appendices in the report? What are appendices for?

If you have done some detailed calculations to support your analysis and there is no room for this in the

main body of text, put it in an appendix. For example, you might have an appendix listing those countries

which you eliminated or retained in your market screening exercise. In a separate appendix you might

show the maths behind your breakeven analysis.

However, please note that marks are primarily given for work shown in the main body of your project, not

for your appendices. Make sure you include sufficient information in the main part of the project to earn

the marks (eg: tell us what measures were used for different screens, etc.). Also, note that appendices

which are excessively long and disorganized will cost you marks. The trick is to be disciplined in including

only essential information and presenting it as economically as possible.

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What is the Poster presentation?

In your project you will be making a number of recommendations. Can you convince potential

investors that your recommendations are worth supporting? Is the quality of your analysis sufficient to

warrant the level of investment you are asking for?

In the final lecture each group will put up a Poster display containing

a summary of their recommendations. The aim of these presentations

is to “sell” your ideas to potential investors (ie: your classmates and

FB staff). You will win their interest not by proposing fantastic returns

but by demonstrating both the robustness of your analysis and the

likelihood of achieving your stated goals in the BOP market chosen.

Each study group needs to prepare a visual display no larger than 3 A3

sheets taped together (see below for suggested layout). Your

classmates will be asked to make investment choices based on the

persuasiveness of your display. Your poster needs to be ready before

the start of the final lecture, for you will only have 5 minutes to stick it

on the wall. (You will have time in the seminars to work on your

poster.) The poster should use a font-size sufficiently large to be read

from 2m away. Try to make your poster eye-catching. Have fun, be

creative & provide some essential details such as the following:

Page 1 Page 2 Page 3

Info about the company & export product- Short summary of screening exercise- Final short-list of markets-

Brief justification of BOP market selected- Identification of;

- likely customers - likely channels - likely competitors (&

substitute products)

Mode of entry (& cost)

Estimates of: - potential sales (in HK$) after 12

months - different estimate methods used

(eg: analogy, chain ratio) - the time required before break even

(when does income > costs); ROI

Can you provide us with some examples of past students’ work?

See Appendix 5 for a summary of market screens used in some past projects as well as the

methodologies used to estimate overall demand. Below is a list of the export markets recommended for

the companies studied in 2006 and 2005. Note, however, that this assignment was not restricted to BOP

markets.

2006 Projects Export Market Project Export Market

(i) iPet (dog clothing) UK (vii) Suzuran (bedding) Mexico

(ii) Hung Tat (kids’ clothes) Netherlands (viii) MagicPro (computers) Russia

(iii) Moiselle (knit jackets) London (ix) House of Swallows Seoul

(iv) Manley Toys Saudi Arabia (x) Lon Hong Ka (bird’s nest) Japan

(v) PolyU TCM Vancouver (xi) Crocodile (suits) Mexico

(vi) YK Mfg (bath toys) South Africa (xii) New ImMax Toronto

2005 Projects Export Market Project Export Market

(i) Alan Chan Clocks Berlin (vii) Lucullus Chcocolate Japan

(ii) Hoye Exit Lights London (viii) Tun Bow Ironing Board Spain

(iii) Chardonnay Shoes Sydney (ix) Chan Kee Dim Sum London

(iv) Honest Wine Stopper France (x) Tsit Wing Milk Tea Singapore

(v) Chicks Underwear New York (xi) Ming’s Cabinets California

(vi) Wah Shing Puppets Mexico (xii) Pedder Red Shoes Japan

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What are the key dates for this project that I need to mark in my diary?

ASAP Register your selected company on the sheet outside the Lecturer’s office

10 Oct 07 Lecture: “How to select foreign markets”

Week 6 Discuss your product choices in seminars & submit Appendix 15* to lecturer

Week 7 Submit proposal at beginning of seminar – see Appendix 14* (sooner if possible)

Week 10 Submit progress report at beginning of seminar – see Appendix 13*

28 Nov 07 Submit peer evaluation – see Appendix 11

5 Dec 07 Lecture: Display your poster and get feedback from classmates (10 marks)

10 Dec 07 Submit completed assignment (noon): see Appendix 12 for cover page * Developmental feedback will be provided only; individual team member’s contributions will affect their

participation grade.

What style should we follow for the written report?

You will lose marks for incorrect formatting, so please study the following carefully:

1. Your report should not exceed 10 pages (excluding appendices). Feel free to put relevant, but

non-essential information (e.g., detailed calculations or background material pertaining to

specific market screens) in numbered appendices.

2. Format your document using a consistent system (eg: Times New Roman at 12 point font with

1 inch margins throughout).

3. Every piece of information gleaned from a secondary source needs to have a citation showing

that source. (This is not necessary for general knowledge.) So use a consistent referencing

system throughout your report (eg: “author (date)” or end/footnotes).

4. Include page numbers on every page.

5. Tables should not have vertical lines and should not run over more than 1 page. Do not cut &

paste tables from websites! Tables should have sources identified underneath. See Appendix 4.

6. Present data visually wherever possible (no massive tables where one chart will do).

7. Feel free to include photos of your company visit or other relevant illustrations. In an appendix

at the back of your report list dates/times of any outside activities (eg: company interview).

8. It’s always a good idea to include a picture of the product you’re going to export.

9. You don’t need a SWOT analysis. You don’t need a methodology section.

10. In your references section, please divide sources into categories (eg: academic books/journals,

periodicals, websites).

11. Try not to mix and match too many currencies. Ideally report everything in one currency – eg:

HK$ or US$ or Euros.

12. The best way to compare a group of countries on a variety of measures is in the side-by-side

comparison of a table.

13. Check your spelling/grammar before final submission. Sloppy projects will lose marks.

14. Give your project a snappy title. Don’t forget to staple the cover page to the front of your report

(see Appendix 9) and email a soft copy of your work to mspaul@inet.polyu.edu.hk.

Where can we find some good online sources of country-data?

See Appendix 2 for some useful sources.

How will this project be assessed?

See Appendix 9 for Assessment Criteria. Appendix 12 contains the marking key used for the written

report. Please note that marks will be deducted if;

o deadlines (for the proposal or final report) are missed

o your appendices are excessively long and disorganized.

o you cut and paste materials (eg: charts and figures) from online sources

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I am a superstar student. Working with teams always pulls my grade down. What can I do?

Even though this is a team project, specific steps will be taken to assess the contribution of individual

students. Here’s how:

(i) the team will get an overall grade for the project which is shared equally by all members

(ii) by mutual agreement, different team members can take final responsibility for different sections

of the written report; if a certain part of the report is of higher quality that the rest of the project,

the supervising student for that section will get bonus marks (counting towards their

participation grade)

(iii) no student will lose marks if their section is sub-standard

(iv) however, students may gain or lose marks on the basis of the peer evaluation (see next question)

How do we deal with potential free-riders in our team?

The success of any group project depends upon the contribution of its members. The confidential peer

evaluation form (Appendix 11) is intended to ensure that the grades attributed to the group project are

fairly earned by all the members of that team. The information you provide on this form will be used,

in part, to determine whether one or more of your team-mates was a “free-rider” in this project. Note

that the default position is that the grade given for the project will be attributed equally to each member

in the group. Widely varying assessments of involvement will lead to interviews with each team

member with the possible outcome that free-riders will receive one letter grade lower than the rest of

the team. The peer evaluation sheet is to be filled out by each team member, sealed in an envelope, and

submitted in class on 29 Nov. However, please note that the evaluation form is a feedback instrument

of last resort. If you are having problems with one of your team members, please inform the subject

leader as early as possible either in person or via the Progress Reports (Appendix 13).

We are nearly ready to submit our finished report. What have we forgotten?

Below is a check-list. You should be able to check “yes” for all points. Any “no” checks indicates that

your project is incomplete and not ready to be submitted. CHECKLIST PRIOR TO SOFT-SUBMISSION Yes No

Does our project have an interesting title? Does our project have page numbers? Has a soft copy of our completed project been emailed to mspaul@inet.polyu.edu.hk? Is our report properly formatted (1 inch margins, Times at pt 12 or larger)? Are tables properly formatted/numbered with sources cited underneath? If we have cited evidence to support our claims, have we made proper reference to the source of evidence in the sentence (eg: using a footnote or the (author, date) convention)?

Have we identified our target customers in the foreign market? Have we estimated potential sales for the first year? breakeven? etc. On the basis of the evidence we have provided, would a reasonable investor think our proposal is worth supporting?

What kind of support can we expect from the lecturer?

Four kinds of instructional support will be provided:

(i) formal analytical methods – in lectures

(ii) discussion of case examples of successful BOP marketers – in lectures

(iii) practical applications and exercises – covered in the seminars

(iv) personal feedback – in seminars and by appointment

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What’s in the Appendices?

Just about everything you need to complete this project is included or identified in the Appendices:

1. Style Guidelines for IM Assignments – Some FAQs

2. Major Consulates & Online Sources of Country Information

3. How to Define your Target Market

4. Previous HK Companies Studied

5. Market Screening Examples from Past Projects

6. How to List Selected/Non-selected Markets

7. How to Evaluate Short-Listed Markets

8. What is our Foreign Market Price?

9. Assessment Criteria for this Project

10. What does the EMP Look Like?

11. Peer Evaluation Form

12. Cover Sheet and Marking Key

13. Progress Report

14. EMP Proposal

15. Product Selection

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EMP Appendix 1: Style Guidelines for IM Assignments – Some FAQs

1. How do we cite sources of evidence/secondary materials?

Every piece of information gleaned from a secondary source needs to have a citation showing that source. (This

is not necessary for general knowledge.) So use a consistent referencing system throughout your report (eg:

“author (date)” or end/footnotes). Study the following examples:

Without proper citations

Between 1978 and 1995 China received US$128b in foreign direct investment, equivalent to 40 percent of

all the inflows to developing countries. In 1978, on the eve of reform, China’s external trade was worth

around US$20b making it the world’s 32nd largest exporting nation. By 2003 China’s exports had grown to

US$438b propelling the nation into fourth place, marginally behind Japan.

With citations: (Author, date)

Between 1978 and 1995 China received US$128b in foreign direct investment, equivalent to 40 percent of

all the inflows to developing countries (Broadman & Sun, 1997). In 1978, on the eve of reform, China’s

external trade was worth around US$20b making it the world’s 32nd largest exporting nation (Lardy, 1992).

By 2003 China’s exports had grown to US$438b propelling the nation into fourth place, marginally behind

Japan (WTO Annual Report, 2005).

With citations: footnotes

Between 1978 and 1995 China received US$128b in foreign direct investment, equivalent to 40 percent of

all the inflows to developing countries.1 In 1978, on the eve of reform, China’s external trade was worth

around US$20b making it the world’s 32nd largest exporting nation.2 By 2003 China’s exports had grown to

US$438b propelling the nation into fourth place, marginally behind Japan.3

________________ 1 Broadman, H.G. and X.L. Sun, (1997). “The distribution of foreign direct investment in China,” World

Bank Working Paper No. 1720 (February). 2 Lardy, N.R. (2002), Integrating China into the Global Economy, Brookings Institution: Washington D.C. 3 WTO Annual Report (2005), website www.wto.org/english/res_e/reser_e/annual_report_e.htm accessed on

10 March 2007.

2. How do we organize my references?

Your list of references should (a) include only those source materials directly cited in the document and (b) be

consistently formatted in alphabetical order. Below is an example of how to list working papers, journal papers,

books, chapters in edited books, and websites.

References

Broadman, H.G. and X.L. Sun, (1997), “The distribution of foreign direct investment in China,” World Bank

Working Paper No. 1720 (February).

Ellis, P.D. (2001), “Adaptive strategies of trading companies,” International Business Review, Vol.10, No.2,

pp.235-259.

Lardy, N.R. (2002), Integrating China into the Global Economy, Brookings Institution: Washington D.C.

MacBean, A. (1996), “China’s foreign trade corporations: Their role in economic reform and export success,” in

J. Child and Y. Lu (editors.), Management Issues in China: Volume II, London: Routledge, pp. 183-200.

WTO Annual Report (2005), website www.wto.org/english/res_e/reser_e/annual_report_e.htm accessed on 10

March 2007.

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3. How do we present quantitative information?

Present data in visual format wherever possible. A picture (or chart or figure) is worth a thousand words; charts are also preferable to tables.

Worst Better

Best

After achieving double-digit growth of 11.3 percent in

2001, Brazil’s economy dropped dramatically over the next

two years. In the following year, GDP growth was down

more than four percentage points, but was actually negative

in 2003 (-1.8%) – indicating a shrinking economic base.

The following year saw no change in GDP (0% growth) but

recently there are signs that economy has started to pick up

again. Based on annualized data, it appears that GDP

growth for 2005 will be around 4.2% (Brazilian Stats,

2005).

Brazil’s GDP Growth (%) Brazil's GDP Growth (%)

-2

0

2

4

6

8

10

12

2001 2002 2003 2004 2005

Source: Brazilian Stats, 2005

2001 11.3

2002 7.2

2003 -1.8

2004 0

2005 4.2

4. How do we format tables properly?

Tables should not have vertical lines and should not run over more than 1 page. Do not cut & paste tables from websites! Tables, figures and charts should have sources

identified underneath.

Bad example… Sample example after re-formatting…

Figure 7:Hong Kong exports of optical goods in 1997 (By major markets)

Ranking Country Share (%)

1 U.S.A 36.7%

2 China 19.3%

3 Japan 7.5%

12 Canada 1.3%

Source: Trade Development Council

TABLE 7: Hong Kong Optical Goods Exports (1997)

Rank Country Share (%)

1 U.S.A 36.7

2 China 19.3

3 Japan 7.5

12 Canada 1.3

Source: Trade Development Council

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EMP Appendix 2: List of Sources of Country-Data/Major Consulates

Online Sources of Country Data

World Bank Development Indicators http://devdata.worldbank.org/dataonline/

CIA World Factbook http://www.cia.gov/cia/publications/factbook/

UN Statistics http://unstats.un.org/unsd/mi/mi_source_xrxx.asp?source_code=80

EuroStat http://epp.eurostat.cec.eu.int/

Nation Master www.nationmaster.com/

EuroMonitor http://www.euromonitor.com/

Climate http://www.worldclimate.com/

Country Address Telephone

Austria Rm 2201 China-Chem Tower, 34-37 Connaught Rd, Central 2522-8086

Australia 23-24/F Harbour Ctr, 25 Harbour Rd, Wan Chai, Hong Kong 2827-8881

Belgium 9/F St John’s Bldg, 33 Garden Rd, Central, Hong Kong 2524-3111

Canada 11-14/F One Exchange Square, 8 Connaught Place, Central 2810-4321

Denmark Rm 2402B Great Eagle Ctr, 23 Harbour Rd, Wan Chai, Hong Kong 2827-8101

Finland 1818 Hutchison Hse, 10 Harcourt Rd, Central, Hong Kong 2525-5385

France 26/F Tower II Admiralty Ctr, 18 Harcourt Rd, Admiralty, Hong Kong 2529-4351

Germany 21/F United Ctr, 95 Queensway, Admiralty, Hong Kong 2529-8855

India Unit D 16/F United Ctr, 95 Queensway, Admiralty, Hong Kong 2528-4028

Indonesia 127 Leighton Rd, Causeway Bay, Hong Kong 2890-4421

Israel Rm 701 Tower II Admiralty Ctr, 18 Harcourt Rd, Admiralty 2529-6091

Italy Rm 805-810 Hutchison Hse, 10 Harcourt Rd, Central, Hong Kong 2522-0033

Japan 46/F One Exchange Square, 8 Connaught Place, Central, Hong Kong 2522-1184

Luxembourg 1 Duddell St, Central, Hong Kong 2877-1018

Malaysia 23/F Malaysia Bldg, 50 Gloucester Rd, Wan Chai, Hong Kong 2527-0921

Netherlands 3/F China Bldg, 29 Queen’s Rd Central, Hong Kong 2522-5120

New Zealand 3414 Jardine Hse, 1 Connaught Place, Central, Hong Kong 2525-5044

Norway Rm 1502 15/F Great Eagle Ctr, 23 Harbour Rd, Wan Chai 2587-9953

Pakistan Rm 3806 China Resources Bldg, 26 Harbour Rd, Wan Chai 2827-0681

Panama Rm 1008 Wing On Ctr, 111 Connaught Rd C, Central, Hong Kong 2545-2166

Philippines 6/F United Ctr, 95 Queensway, Admiralty, Hong Kong 2823-8500

S. Korea 5-6/F Far East Finance Ctr, 16 Harcourt Rd, Admiralty, Hong Kong 2529-4141

Singapore 9/F Tower 1 Admiralty Ctr, 18 Harcourt Rd, Admiralty, Hong Kong 2527-2212

Spain 8/F Printing Hse, 18 Ice House St, Central, Hong Kong 2525-3041

Sweden 8/F The Hong Kong Club Bldg, 3A Chater Rd, Central, Hong Kong 2521-1212

Switzerland 3703 Gloucester Tower, 11 Pedder St, Central, Hong Kong 2522-7147

Thailand 8/F Fairmont Hse, 8 Cotton Tree Drive, Central, Hong Kong 2521-6481

UK 1 Supreme Court Rd, Admiralty, Hong Kong 2901-3000

USA 26 Garden Rd, Central, Hong Kong 2523-9011

List of Major Contacts in Hong Kong

American Chamber of Commerce in Hong Kong

Rm 1904 Bank of America Tower, 12 Harcourt Rd, Central, Hong Kong

2526-0165

Hong Kong Productivity Council

78 Tat Chee Avenue, HKPC Bldg, Kowloon Tong, Hong Kong

2788-5678

Hong Kong Tourist Association

11/F, Citicorp Ctr, 18 Whitfield Rd, North Point, Hong Kong

2807-6543

Hong Kong Trade Development Council

38/F Office Tower, Convention Plaza, 1 Harbour Rd, Wan Chai, Hong Kong

2584-4333

The British Chamber of Commerce in Hong Kong

Rm 1401 Tung Wing Coml Bldg, 111 Gloucester Rd, Wan Chai, Hong Kong

2824-2211

The Chinese Manufacturers Association of Hong Kong

5/F CMA Bldg, 64 Connaught Rd C, Central, Hong Kong

2545-6166

14

EMP Appendix 3: Exercise – How to Define Your Target Market(s)

3 things to do BEFORE you conduct your market

screening exercise:

3 things to do AFTER you conduct your

market screening exercise:

1. describe the product

2. describe a typical purchasing situation

3. define your intended markets

See below

1. segment the market

2. target the market

3. position your product

See any marketing management text

1. Describe the product

what are its distinguishing features? some adjectives:

- cheap, long-lasting, fashionable, highly-engineered, durable, efficient, tasty, nutritious,

disposable, convenient, exciting, functional, reliable, high-performing, user-friendly,

clever, timely, easy-to-find, colourful, hip, fashionable, compact, economy-sized, super-

sized, distinguished, elegant, affordable

what makes our product better than the competition?

- who are our rivals? what are likely substitute products? (if I didn’t buy this brand, what

could I use instead?)

- how does our brand compare with rivals? (see list of adjectives above)

- what are the prices of substitute products? what is our price? what is our likely price in

distant markets?

2. Describe a typical purchasing situation

why do people buy/use our product?

- does it have industrial uses, household uses or both?

- how frequently is our product bought? is it bought in batches or one at a time? what

happens when our product is used up? does it need batteries?

how is our product sold?

- vending machine? retail outlet? personal selling? direct mail?

- does our product require special packaging/handling/installation? who provides this (us,

the consumer, retailers, or specialists?) does it require an instruction manual?

- can this product be readily exported to independent distributors? if not, what other entry

modes are suitable?1

3. Define your ideal target market(s) in terms of demographic, psychographic and lifestyle variables2 – some adjectives:

Chinese-speaking, multi-lingual cosmopolitan, fashionable, male, female, young, mature,

health-conscious, the unwell, AIDS sufferers, global culture, traditional, rich, poor, middle-

class, elites, coffee-drinkers, urban, out-doorsy, environmental, masculine, uncertainty-

avoiding, individualistic, egalitarian, thrifty, families, singles, divorcees, risk-takers,

apartment-dwellers, home-owners, car-owners, hot countries, rainy countries, red-meat eaters,

spice-eaters, wine drinkers, cigarette smokers, movie-lovers, left-handed people, illiterates,

culture-lovers, fun-loving, hard-working, hippies, punk, religious, serious, generous, blood-

donors, bookworms, pet-lovers, hunters, frequent fliers, politically active, university educated,

etc.

1 NB: Indirect and cooperative exporting are NOT suitable choices for this project. 2 Re-visit the chapter on market segmentation in your Marketing Management text if you’ve forgotten how to do this.

15

Mkt Screening Preparation – In-class Exercise (Optional – You may submit this together with Appendix 13 at any time before seminars on Week 10.)

Seminar Day: __________ Seminar Time: ____________ Full names of members: _______________________________

_____________________________________________________________________________________________________

Company Name: ______________________________ Product Name/description: _____________________________

1. Describe the product / product-substitutes (see reverse for ideas)

2. Describe a typical purchasing situation (see reverse for ideas)

3. Define your ideal target market(s) (this is NOT your BOP market; see reverse for ideas)

__________________________________

Once you have completed the blanks above, you are now ready to conduct the market screening exercise! Remember, that the goal of the market screening exercise is to identify those foreign markets where target markets are most attractive (most customers, fewest competitors, easiest marketing options). How to interpret Appendix 13:

Screens used = labels – what are you looking to exclude/include and why? justify your choice Proxies/measures = how will you define/measure these screens? what are your cut-off points? Sources = from where have you found your data?

When you have completed the market screening exercise, you are ready to proceed to the second half of the project (analyse your export market, estimate demand, develop positioning strategy, etc.).

16

EMP Appendix 4: Previous HK Companies Studied (you may NOT pick these companies)

3 Wells Watch Ind. Ltd. Ah Yee Leng Tong (Chinese

dishes) Aji Ichiban Alan Chan Clocks Alco Holdings Ltd. Amoy Amoy frozen meals Anphelia Co. (cheongsam) Best Union Electronics Co. Blue Box International Ltd. Bo Bo Tea Bossini Boto Co. Ltd. Brisky Ltd. BSR International Travel Ltd. Bu Yik Fong (herbal tea) Central Footwear Co. Chan Kee Dim Sum Chardonnay Shoes Chicks Underwear China Apollo (health drinks) Coastal International

Exhibition Co. Crocodile Garments Doll Instant Noodle East East Wonton (restaurant) EFP International (HK) Ltd. Emphasis (jewellery)

Famous Dragon Enterprises Fontaine Four Seas fish balls Four Seas Mercantile

Holdings Ltd. GameOne Genius Link Giordano Goldlion (holdings) Ltd. Goldlok Toys Mfy Co. Ltd. Group Sense Ltd (GSL) Habour Bldg Material

Supplies Co. Hang Lung suitcases HFT herbal drinks Hing Lun Industrial Co. Ho Sai Cheong Medicine Hoe Hin Pak Fah Yeow Holda International (HK) Home of Swallows Hong Kong Chinese

Orchestra Honest Wine Stopper Hoye Exit Lights Huge City Hung Tat Trading Hui Lau Shan Intercom Packaging Co. Ltd. IPet

Jade Dynasty (Legend of Emperor comic)

Joineur Chinese furniture Johnson Electric Just Gold Ka Po (preserved

mandarin peel) Keenpac Hong Kong Ltd. Kin Keung Shoes Mfrs Ltd. King & Country (toy

soldiers) King Wah Co. Knife Brand peanut oil Kong Wah OEM Kung Wo Tong (medicine) Lee Fung Tea (Mei Dick

Tea) Lee Kum Kee (sauces) Lee Kung Man (underwear) Lerado Lo Kong Ha LF herbal medicine Ling Zhi (mushrooms) LSK umbrellas Lucullus Chcocolate Macy’s Candies Ltd. Magic House Magictwin Maidas curtains

Mailing List (Asia) Ltd. Manley Toys Ming Pao Enterprise Corp. Ming’s Cabinets Mirabell International

Holdings Moiselle Multipak/Luk Yu My Kids New ImMax New Way Holding Ltd. Nu Life International Ltd. Ocean Creative (Battling

Wolves comics) Pak Fah Yeow (medicinal

oil) Pak Fook (beancurd

products) Pedder Red Shoes Perfect Toys International Po Cheung Trading (health

food) PolyU TCM Research Press Mark Media Ltd. Print-Rite Sa Sa Cosmetic Co. Ltd. Seven Seas Chemicals Sun Wing Lee Hing Chan Super X

Suzuran Bed Tack Hsim Restaurant Tai Cheung animal toys Tai Ping Carpets Techtronic Industries Co. Timeless Software Ltd. Tong Ren Tang (pharmaceuticals) TS hotel amenities Tsit Wing Milk Tea Tun Bow Ironing Board Tung Fong Hung TVB UT Models Vitasoy Vtech Holdings Ltd. Wah Shing Puppets Wellcome/Dairy Farm Wice Marine Services Ltd. Wilmore Manufactory Ltd. Wing Wah (mooncakes) Wonderful Time Industrial

Ltd. Yan Chim Kee (food) Yan Wo Tau Pan Choung

(tofu) Yat Fat Jewelry Co. Yau Fat Toys Mfg Ltd YK Manufacturing

17

EMP Appendix 5: Market Screening Examples from Past Projects

Product (HK price) Emergency Exit signs ($1,120) Chinese calligraphy clock ($1,690) Thermal underwear ($112) Luxury chocolate ($15)

Competitive features English-language, LED-illuminated

signs; more expensive than

traditional incandescent signs, but it

pays for itself with lower energy-

consumption & maintenance costs

This expensive clock has a

distinctive Chinese feel and is sold

to price-insensitive buyers at high-

end outlets (eg: Peninsula Hotel)

Warm, comfortable. Premium, hand-made

chocolate pralines sold in red

& gold gift boxes; chocolate

containing nuts has a limited

shelf-life

Manufacturer/Designer Hoye Lighting (Kwun Tong) – a

small ODM company, unable to

afford major product modifications

or FDI, yet with under-utilized

production capacity

Alan Chan, an award-winning HK

designer. The clock is made by

Seiko for the Alan Chan Design

Company.

Chicks – an underwear

manufacturer/retailer with

stores in HK and on the

mainland

Lucullus Food & Wines

Indicative market screens 1. electrical standards (240v)

2. English-speaking countries

3. need potential (no. hospitals,

universities & schools, banks,

malls, construction companies)

1. GDP, education levels

2. cosmopolitanism (proportion

of foreigners/Chinese)

3. art museums/person

4. artistic rate (art & music

colleges/universities)

1. GDP/WTO member

2. cold climate (mean

temperature = 10°C)

3. underwear sales &

growth rate

1. GDP/capita

2. chocolate

consumption/capita

3. competitors (<5 major

brands in market)

4. trade barriers (<15% tariff)

5. delivery times (shipping

distance)

Final market (export price) London metro area ($1,570) Berlin ($2,000) New York ($162) Japan ($24)

Market size estimate (annual

sales)

₤14b (trade audit)

3,000 units (chain ratio)

2,900 units (analogy)

6,300 units (chain ratio) $67m (chain ratio) 2.2m units (chain ratio)

Mode of entry Direct export via foreign

intermediaries (construction

companies)

Direct export to a German

watch/clock distributor; sold to

furniture stores

Direct export to a

company-owned store

Direct export to a chocolate

wholesaler; sold to high-class

hotel gift shops/cafes

Note: These projects were not restricted to BOP markets.

18

EMP Appendix 6: How to Present Selected & Non-selected Markets

The table below shows how one team used a market screening process to reduce an original list of 44 countries to a final short-list of three countries using the following screens; (1) spending power, (2) health-consciousness, (3) countries with large working female population, (4) openness to foreign culture generally, and (5) openness to Chinese culture specifically. The full market screening procedures used were documented in the main part of their report while the table appeared in an appendix.

Screen

Rank 1 2 3 4 5

1 United States United States Netherlands Spain Australia

2 Japan Switzerland France Greece Italy

3 Germany Germany Switzerland Portugal Japan

4 United Kingdom Iceland Belgium Italy Canada

5 France Norway Spain Switzerland United Kingdom

6 Italy France United States Australia Korea

7 Netherlands Canada Italy Austria Singapore

8 Austria Greece Australia Japan Brunei

9 Belgium Netherlands Japan Saudi Arabia UAE

10 Australia Monaco UK Greenland Qatar

11 Korea, Rep. Portugal Canada Guam San Marino

12 Sweden Australia Austria Bahamas, The Saudi Arabia

13 Switzerland Belgium Germany Bahrain Bahamas, The

14 Singapore Japan Greece Andorra Bahrain

15 Denmark Sweden Portugal Antigua & Barbuda Andorra

16 Canada Malta Norway Portugal Qatar

17 Finland Denmark Portugal Puerto Rico San Marino

18 Ireland Israel Puerto Rico Qatar Saudi Arabia

19 Cyprus Slovenia Qatar Italy Monaco

20 Brunei Italy San Marino UK Faeroe Islands

21 Greece New Zealand Saudi Arabia Canada Netherlands Antilles

22 UAE Austria Bahamas, The Greece Portugal

23 Iceland San Marino Bahrain Portugal Puerto Rico

24 New Zealand New Zealand Andorra Monaco Kuwait

25 Isle of Man Isle of Man Antigua & Barbuda Faeroe Islands Liechtenstein

26 Israel Israel Aruba Netherlands Antilles Luxembourg

27 Spain Spain Virgin Islands (U.S.) New Caledonia Cayman Islands

28 Bermuda Bermuda Bermuda Norway Malta

29 French Polynesia French Polynesia French Polynesia Portugal Kuwait

30 Kuwait Kuwait Kuwait Puerto Rico Liechtenstein

31 Liechtenstein Liechtenstein Liechtenstein Guam Italy

32 Luxembourg Luxembourg Luxembourg Guam Switzerland

33 Cayman Islands Cayman Islands Cayman Islands Bahamas, The Saudi Arabia

34 Malta Malta Malta Bahrain Greenland

35 Monaco Monaco Monaco Andorra Guam

36 Faeroe Islands Faeroe Islands Faeroe Islands Qatar Bahamas, The

37 Portugal Andorra Portugal Faeroe Islands Portugal

38 Puerto Rico Antigua & Barbuda Puerto Rico Netherlands Antilles Puerto Rico

39 Qatar Aruba Guam New Caledonia Qatar

40 Bahrain Norway Bahrain Luxembourg Liechtenstein

41 Andorra Portugal Andorra Cayman Islands Austria

42 Antigua & Barbuda Puerto Rico Qatar Malta Germany

43 Aruba Qatar San Marino Kuwait Greenland

44 Virgin Islands (U.S.) San Marino Saudi Arabia Liechtenstein Guam

Countries Remaining

44 34 15 8 3

19

EMP Appendix 7: How to Evaluate Short-listed Countries – An Example (using non-BOP mkts)

Attributes (weighting) Description

Score (N/10)

Belgium Norway Finland Japan Korea

Culture: Chinese Influence (.15)

No. Chinese-speakers Chinese; national relationship in history

3 1 1 7 8

Regulatory: Food import procedures (.10)

Certificates required, tariffs 3 3 3 3 5

Competition (.30) Intensity of direct & indirect competition

7 7 7 4 5

Market demand (.35) Spending on skincare, cosmetics or facial surgery

7 5 6 10 10

Trade infrastructure (.05) Length of railways and highways, proximity to ports

8 5 4 7 5

Political factors (.05) War, political stability, ease of doing business.

9 10 10 7 5

Total 6.15 5.05 5.35 6.75 7.20

Notes3: A high score indicates high market attractiveness on each dimension. Culture: Belgium has 14,000 Chinese-speakers, Norway has 3,000, Finland has 6,000, Japan has 16,000 and

Korea has 35,000 exchange students from China (Sources…). In addition, Japan and Korea both have many cultural elements originally borrowed from China (Sources…).

Regulatory: The three European countries generally have tough import policies governing food-stuffs and health products (Sources…). Japan has a similarly stringent import regime. Any person wishing to import goods must declare them to the Director-General of Customs and obtain an import permit after necessary examination of the goods concerned. The formalities start with the lodging of an import declaration and end with issuance of an import permit after the necessary examination and payment of Customs duty and excise tax. In this way, measures are taken to ensure the fulfillment of the requirements for the control of foreign exchange and other regulations concerning the importation of goods (Sources…). In contrast, Korea is slightly more import-friendly having recently eliminated requirement for manufacturing process information and ingredient listing by percentage for all ingredients. Korea has also; set up an expedited (5 working days) clearance procedures for fresh produce; developed a new sampling system to replace 100 percent sampling; and abolished sorting requirements for horticultural products (Sources…).

Competition: Belgium, Norway and Finland – no direct competition but keen indirect competition from multinational companies selling a variety of healthcare products meeting a similar need. OTC healthcare sales are predicted to grow by at least 20% year in the medium term (Sources…). Directly substitutable products can be found in both Japan and Korea as well as a number of competing brands from Hong Kong (Sources…)

Market demand: For full computation of market size estimates for these five markets, as well as an analysis of consumer spending on related products, see Appendix X. In summary…

Trade infrastructure… Political factors…

3 These have been extensively trimmed to save space.

20

EMP Appendix 8: WHAT IS OUR FOREIGN MARKET PRICE? Group discussion template

An important part of your export marketing plan is to estimate the total demand for your product in the

foreign market and thus calculate your return on investment. This assumes you are able to sell your

product at a competitive price. You need to ask: “what price is best for our product?”

Fill in the gaps below as best as you can. Don’t panic if you don’t have enough information at this time –

the main thing is to start thinking about your pricing strategy. Simply use the questions below to inform

your preparation and planning activities for your project work.

Product Name: ____________________________ BOP market: ____________________________

Fill in the blanks…

Hong Kong Your BOP market: __________________

GDP/capita (PPP):

US$37,300 (2006)*

_HK$_______________

Product price: __HK$_____________ _HK$_______________ (estimate)

* CIA World Factbook

(a) Manufactured cost of the product:a HK$_____________

(b) (Hard!) What are some likely substitute products in the foreign market? What are their prices?

- ____________________ HK$______________ (or your best guess)

- ____________________ HK$______________ (or your best guess)

Justification: can you provide a marketing justification for your estimated price?b Your answer may refer

to differences between the Hong Kong and your foreign market in terms of:

the standard (or cost) of living (higher or lower than HK?)

your positioning strategy (same as HK?)

price elasticity of customers (more/less elastic)

competition in the market (more or less intense than HK?)

Outline your justification here: ____________________________________________________

______________________________________________________________________________

(c) Is your foreign market price higher or lower than the price in Hong Kong? HIGHER / LOWER

(d) If your foreign price is lower, what ideas to you have for managing the additional costs of delivering

the product to market (ie, how will you deal with price escalation)c? Summarize your strategy(s) here:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

__________ a If you don’t know this, assume the manufacturing cost is around 30% of the final price. b See pp.534-538 of Cateora and Graham if you are unsure how to start. c See pp.538-547 of Cateora and Graham if needed.

21

EMP Appendix 9: Assessment Criteria for the Exporting Marketing Plan

Grade Content

F/D failure to meet the criteria for a satisfactory (“C”) grade

C/C+ choose a HK manufacturer with a product suitable for exporting; identify the existing

markets served by this company (which will not be included in your screening exercise)

display a basic understanding of the market screening process; have a logical screening

order culminating in the selection of a suitable BOP market (see Lecture #6)

display a familiarity with at least two methods for estimating market demand

apply the concepts taught in the class/text

B/B+ complete all the criteria for a C grade and…

exhibit proficiency in using a variety secondary & primary sources of information with

which to define product-relevant screens, estimate potential market demand and describe

the competition in the foreign market

provide proper referencing of source material

A/A+ complete all the criteria for a B grade and…

drawing on the materials you have collected analyse the competitive structure of the

foreign market leading to the identification/justification of a suitable market niche/target

market for your firm

provide and evaluate different estimates for the size of your target market; indicate the

level of financial commitment required to achieve the market objectives you set;

calculate a breakeven point

22

EMP APPENDIX 10: EMP – Suggested Outline Section/Indicative Headings Tasks/points to raise/questions to answer

Part A: Introducing the Product/Company The product Provide some basic details including; the local price, size, weight, perishability. What

are its distinguishing features? Why do people buy it? How often do they buy it

(frequency of purchase)? What makes this better than other, similar products on the

market? Are there any related accessories? Are customers different from consumers?

How is the product sold? Does it have special handling requirements? ease of

shipping, ease-of-use, training requirements, after-sales service requirements. Show

us a picture.

Company Provide some basic details regarding size (# employees), history, address, location of

factories. Does this company have sufficient funds for exporting/expansion? any

unused production capacity (relevant for some pricing options)? Why should they

think about exporting (motive)?

Part B: Selecting a Foreign Market

Ideal target market defined Use as many adjectives as you can to describe your ideal market in terms of

demographic, psychographic and lifestyle dimensions.

Market screening Systematically eliminate unsuitable countries by applying a mix of macro- and micro-

environmental screens, culminating in a short-list of potentially BOP markets for

more detailed analysis

Evaluation of short-list systematically compare your final 3-6 BOP markets using a number of predominantly

micro-environmental criteria which are weighted in favour of market conditions;

consider market-specific factors pertaining to market size, market competition, trade

barriers, etc.

PART C: Evaluation of Selected BOP Market - customers who are they? what do they look like and where are they located? how many are

there? are their needs/conditions of use in the foreign market the same as in HK or

different?

- competitors who are they? what are the substitute products? how much do they cost? how does

your product compare (in terms of features, benefits to consumers, prices)?

Marketing strategy

- positioning strategy same/different as in HK? where is the unfilled niche in this market?

- pricing strategy In view of market conditions, how much are customers prepared to pay for your

product? how will you deal with price escalation? what is the export market price?

price elasticity?

- distribution strategy what channel arrangements will you use (independent or integrated)? how will you

motivate independent intermediaries? what commission/margin levels will you set?

Estimate of market demand

- projected sales Converge on a realistic estimate of total market demand using a variety of methods

(eg: trade audit, chain ratio, analogy); estimate your share of the total market (in view

of customers/competitors above), what are your projected sales after 1 year? 3 years?

best/worst case?

- projected expenses Total investment required to set up this export venture:

Marketing expenses – promotion (to consumers, retailers or distributors); product

adaptation (translating labels or manuals); visits to distributors (eg: for provision

of training); test-marking

Shipping expenses, insurance

Other expenses – eg: regulatory approval

- breakeven analysis

Appendices

- Appendix 1 Market screening details (for example)

- Appendix 2 Supporting evidence for the evaluation of short-listed markets (for example)

- Appendix 3 Etc.

23

EMP APPENDIX 11: Peer Evaluation Form Submit at beginning of lecture on 28th Nov, if needed. Submissions will not be received after this date.

In order to make the grading system as fair as possible to all members of the group, peer evaluations will be

considered in determining whether the grade for the group should apply equally to each member in the group. Each

group member should submit their evaluation report in a sealed envelope attached to the project. Interviews will be

held with all team members in the case of serious discrepancies being reported.

Seminar Day/Time: __________ Export product/manufacturer: _____________________ BOP Mkt: ___________

In the table below, please identify those individuals on your team who have taken responsibility for conducting

various project-related tasks:

Task (list major activities done) Who did most of the work? (You can list more than 1 name)

Please rate the contribution made by all members of your group (including yourself):

Did much less

than their fair

share

Did a fair

share of

the work

Did much more

than their fair

share

Member # 1 Name (yourself) ________________________________

1

2

3

Member # 2 Name ________________________________________ 1 2 3

Member # 3 Name ________________________________________ 1 2 3

Member # 4 Name ________________________________________ 1 2 3

Member # 5 Name ________________________________________ 1 2 3

Member # 6 Name ________________________________________ 1 2 3

Please explain any significant discrepancies in the allocation of points between group members above:

____________________________________________________________________________________

____________________________________________________________________________________

Your signature: ______________________________________ Date: ___________________________

24

EMP Appendix 12: Cover Sheet for Export Marketing Plan

ATTN: Prof. Paul Ellis International Marketing MM4731

Group members’ full names: (Western name*) Responsible for

which section?** Seminar

day/time:

__________________

1. ______________________ ______________ ______________ Company name: __________________

2. ______________________ ______________ ______________ Export product: __________________

3. ______________________ ______________ ______________ BOP market***: __________________

4. ______________________ ______________ ______________ Export price: __________________

5. ______________________ ______________ ______________ Interviewee*: __________________

6. ______________________ ______________ ______________ Interviewee contact no: __________________

7. ______________________ ______________ ______________ Interview date* __________________

* If relevant. ** Although the project is a team endeavour, please identify – if possible – a key person for each of the different sections of the project. (See below for section numbers.) *** GDP/capita (PPP) should be <US$5,000.

Marking Key For indication only Student responsible

Part A: The Export Product A B C D F Write name here…

(i) describe the product and the company

Part B: Selecting a Foreign Market

(ii) describe an ideal target market (currently Appendix 6)

(iii) conduct market screening of all potential markets shortlist

(iv) evaluate 3-4 shortlisted BOP markets

Part C: Market Evaluation

(v) evaluate chosen market (customers, competitors)

& briefly describe your marketing strategy (positioning, 4Ps)

(vi) estimate market demand and potential sales

Appendices

(vii) presentable and comprehensive appendices

Poster presentation

Notes to Students:

Final Grade:

NB: For more details on how each section will be marked, please refer to Appendix 10: “EMP: Suggested Outline”

25

EMP APPENDIX 13: Project Progress Report Seminar Day: ______ Seminar Time: _______ (Submit during seminars on Week 10)

Product: ____________________________ Company: _________________________________________________

Group Members (incl. Western names if relevant): ________________________________________________

______________________________________________________________________________________

Details of Project-related meetings and outside trips held/made by your team:

Date, duration Who attended? Issues discussed/tasks assigned/purpose of trip

Details of tasks assigned to/completed by each team member:

Name Tasks assigned (date) Completed?

Please provide here a brief summary of the market screens you have selected so far:

SCREENS USED

(Please indicate whether macro or micro)

PROXIES / MEASURES USED

(what measures will you likely use for this screen?) 1.

2.

3.

4.

5.

Any problems/issues relating to individual team members or project work? __________________________________________________________________________________________________

Signed (all members):

__________________________________________________________________________________________________

26

EMP APPENDIX 14: Export Project Proposal Seminar Day: ______ Seminar Time: _______

(Submit at beginning of seminars in Week 7 to receive immediate feedback.)

Group Members (incl. Western names if relevant): __________________________________________________________

_______________________________________________________________________________________________________

Name & address of manufacturer to be studied: ____________________________________________________________

Why did you choose this company? Please specify any relationships between group members & this company: _______________________________________________________________________________________________________

Is this a local firm? Is the head office located in HK/Shenzhen? (If not, pick again.) Yes / No What is this company’s website (if relevant): _________________________________________________ Is this firm a manufacturer? Yes / No Is this firm a product designer relying on the manufacturing capabilities of others? Yes / No If you have ticked “no” to both of the last two questions, you may need to pick another company.

Does this firm already engage in some exporting? Yes / No If so, please list the export markets (cities or countries) where this firm is already active (outside of HK/China): ________________________________________________________________________________________________

What is the main product made by this firm that you are going to consider for exporting? (Attach a picture) ________________________________________________________________________________________________

Describe this product – why do people buy it and what benefits does it provide? How much does it cost? ________________________________________________________________________________________________

________________________________________________________________________________________________

Do you know where this product is made (eg: HK, PRD)? ____________________________________________ Who’s the competition – what are some substitute products? ________________________________________________________________________________________________

Please list any background material you have found relating to this company:

________________________________________________________________________________________________

Is there sufficient secondary (published) information about this company for you to identify it’s product benefits and existing foreign markets?

Yes / No

If not, do you plan to conduct an interview with this company? Yes / No Please identify the person you plan to interview:*

Name: __________________________ Title: ____________________ Phone number: _____________ When will you phone them to arrange an interview: ____________ When will you visit them?: ___________

* Note: Do NOT contact the company until after this proposal has been approved by the lecturer. To facilitate your data collection,

early proposal submissions are welcomed.

27

EMP APPENDIX 15: Export Product Selection Seminar Day: ______ Seminar Time: _______

(Submit at beginning of seminars in Week 6 and be ready to make a brief presentation (5-10 mins) to the class.)

Full Names of Group Members: ___________________________________________________________________

________________________________________________________________________________________________

Below please describe those products you are thinking of adopting for your project… Product 1: ______________________________________________________________________________ Brief description (function, price, competitive features): ___________________________________________

________________________________________________________________________________________________

Why is this suitable for BOP markets? ________________________________________________________

________________________________________________________________________________________________

Product 2: ______________________________________________________________________________ Brief description (function, price, competitive features): ___________________________________________

________________________________________________________________________________________________

Why is this suitable for BOP markets? ________________________________________________________

________________________________________________________________________________________________

Product 3: ______________________________________________________________________________ Brief description (function, price, competitive features): ___________________________________________

________________________________________________________________________________________________

Why is this suitable for BOP markets? ________________________________________________________

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Product 4: ______________________________________________________________________________ Brief description (function, price, competitive features): ___________________________________________

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Why is this suitable for BOP markets? ________________________________________________________

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Evaluation & feedback (Lecturer’s use only):