This manual has been created to provide through an easy and dynamic journey all the tools,

steps, and knowledge necessary for the development of the export process and product

adaptation on the European market. The document it is not intended to prejudge any decision

making, therefore, should be read as merely advisory. The author do not assumes any kind of

responsibility for the success or failure of the results arising from the taking of decisions made

based on this article.

By tracking 4 macro-key-business-areas, the novel exporter would be able to adapt its support

for both personal and business/product and to prepare all the export process itself. Therefore:

(Red) 1 - Let's be conscious!

(Orange) 2 - Let's prepare our Company!

(Purple) 3 - Let's adapt the product!

(Green) 4 - Let's Export!

Let's be conscious!

In this first section, the reasons why many companies want to enter the world of export are

presented. We will also talk about the making of consciousness that involves the export process

and is essentiality for proper development.

Let's prepare our Company!

The second section will be focused on the company's internal preparation. Therefore, we will

emphasize on the importance of planning; we will see the needed adaptation that the company

needs internally and how can the company evolve over the marketing mix or is internal

reformulation necessary – or not – for the onset of the activity.

Let's adapt the product!

The third section will include everything strictly necessary and on the suitability of the product

to the foreign market. We will see why this adaptation is necessary and what factors are

considered "key" to the success abroad. Furthermore, we will also consider what conditioning

factors such as for example certifications are required within the euro area and beyond.

Let's Export

Once being conscious and being adapted in both company and product/service, we will advance

on the movements of how to take the export process. We will guide you in the development of

the export plan; we will see what are called "entry modes", where and how we can find market

information, which management bodies exist to support internationalization and how we can

promote ourselves and the product.

Ready? Let’s export at first Site!

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Yes, you will have to make an effort. Yes, you will have to spend time. Yes, there will come

hard times. Yes, it will cost money and time. Yes, you have to learn to be patient, persistent;

looking for alternatives. Learn how to handle many issues at once. Learn to be part of each

department of your company. For sure you will be tired and you will want to go home...

If you think you can not face it, stop reading.

Why to export?

Welcome! If you are still reading, it is because you opted firmly on export. Are you thinking on

opening new markets? Do you want to learn how to manage the export process? Let's start with

the basics.

What is the export?

IN INTERNATIONAL TRADE, "EXPORTS" REFERS TO SELLING GOODS AND

SERVICES PRODUCED IN THE HOME COUNTRY TO OTHER MARKETS [2]

.

Will export help me to increase my turnover?

Exporting is seen as a new source of income, as a tool of avoiding market dependence

(especially when domestic market is broken), as a risk diversification...

Other reasons of corporate entrepreneurship are:

1. Increase the quality and competitiveness of products through international competition.

2. Development of new products or improving existing ones.

3. Improve corporate image to customers and suppliers.

4. Advantages circumstantial

However, what companies should do is to create their own business model based on their keys

and experiences of its domestic market. It is not enough to go out and sell, but companies must

find its corporate positioning. Its image. Its identity.

Let's be frank, not because you sell abroad, you will sell more, especially in a short term. Your

sales levels are directly proportional to the effort you exercise for this purpose. Remember that a

company should go abroad when placed on a mature stage. A company does not have to start

exporting because of the falls of its internal market, neither because of transient opportunities

(short-term benefits). Once the company has developed the enough competitive force to

compete with the domestic product of the foreign country he should consider go international.

Although the crisis is tightening reins, be sure your company is well positioned and strong,

understanding strong as capable of dealing with the possible adversities that may come.

[2]. http://bit.ly/1BiC3G

Am I ready to start the export process?

Before starting the export process you should consider some important factors: Firstly, it is very

important to make a double change of global mindset: internal & external.

- Internal change. On one hand, the change of mind must be in face to the own performance

of the new activity. It will require initiative and proactivity, and although it may sound

outrageous, a change in perception between the concept of spending to investing. It is also

important to establish reachable objectives that guide you during the process.

- External change. On the other hand, you should be aware that selling abroad means

having a strong cultural interconnection, so you need to know how to adapt your behavior

and socialization depending on the profile you have in front of you.

Secondly you, as an exporter or as a company, need to evaluate your export capacity. Therefore,

ask yourself the following questions:

1. Can I explain my company product without problem? Can I define at what stage of the life

cycle it is and what are his comparative advantages in relation with its direct competitors? Do

I have enough resources to present it? (brochures, web page..)

2. Do I know if the product is adapted to the target market? (packaging, Labeling, regulations ...)

3. Do I know the process I must follow to market it on the foreign market?

4. Do I know if the export initiative is a decision taken unilaterally on the company or otherwise

it is a decision born of the group?

5. Do I know if my company has enough production capacity to assume outside bands?

6. Is the company prepared in terms of staffing and internal layout for the new workload?

7. Do I know or I have ability to know my target market and customer type?

8. Do I know the international payment types, methods of entry and international promotion

methods?

9. Am I willing to travel?

10. Would I want to? Am I excited with?

If you realize, your answers exceed far beyond the simple answer, all of them are strictly related

with the 4 main global areas developed on this guide. Therefore:

- Product – (questions 1 to 3)

- Company – (questions 4 to 6)

- Personal predisposition & Export Procedures (questions 7 to 10)

Remember that personal preparation it is no enough to assure and assume export procedures.

You will also have to assure that your team is also prepared and the whole company is open-

minded and predisposed to take part of the big pie.

Are you ready? Let’s optimize your business!

2.1 - Corporate Positioning

The success or failure of the implementation of our brand in the destination country depends on

the image and reputation that you project there from it. Watch out! Your brand positioning will

set the trend for the short-and long-term projection as well as the target and customer profile,

both in national and international markets. Let us see an example:

Remember the case of the Levi's jean’s brand. Originally from USA was positioned as a

"must brand" among American youth cabinets of the '70s. A mid-80s began their

international expansion. Too focused on its expansion, this international presence -

which lasted a few years - led to a degradation of the brand which forced them to rethink

their strategic positioning both internally (within the borders of their country) and

outside it; Levi’s stopped being "trendy" to be perceived as "the brand of my parent’s

jeans.". Levi's therefore in 94 initiated a new program called "PPG - Personal Pair

Jeans" where women could for only a few more Dollars customize to suit jeans. As a

result, customers segmented themselves and Levis provided coverage for all type profiles.

How I can improve my corporate positioning?

8 out of 10 brands are not recalled due to not reaching the consumer's mind. That is, we have a

20% chance to make our brand successful enough to survive. This proportion, however, is

increased in the case our brands are already launched on the market. In this way we have three

starting assumptions:

1- Your brand is already known. In this case our main goal will be to bring the brand

more good perception with conceptual reformulation. To start with, we have to analyze

what their initial position is and what are your main competitors (how they are

perceived). Thus we analyze what actions I can take to upgrade my brand.

2- Your brand is not known. In this case you have a lot to gain. Your goal will be to

build an initial strategic positioning that allows you to reach the desired target.

3- Your Brand is not known but you do not want to build the brand itself. In that case

you have to promote your product as a House Brand or Private Label. A private label

will allow you to first introduce your product and therefore analyze the acceptance of it

before building its own brand reputation.

Keys for making a good up-grade positioning

Consistency

Refers to the logic that generates an attitude to achieving correlative activities. If we take a

philosophy to perform an action, the following must bear the same ideal background. Otherwise

you will lose potential customers. Inconsistency leaves value.

This is the case, for example of Apple, when in 1985 Steve Jobs was fired from the company.

The inconsistent decision do not only reverberated sales, but missed the "faith" to the brand

which accentuated the value of the loss.

Naming and Visual Identity

Naming refers to the exact name of the product or service which is supposed to be marketed.

Before launching a product in a foreign market you must find out if the name in the destination

country, or the translation into the language of the destination country, has some meaning and

how it is perceived. A bad name can bring your whole product to the failure.

This is the case of the Japanese car brand Mitsubishi Motors who, referring to the Pampas Cat

(Leopardus Pajeros) launched its new model SUV called "Pajero". The name did not just swoop

down sales volume, but attacked the image of the brand. The car's name had finally to be

changed to Mitsubishi Montero

Social & Branding website

It is shown that companies with direct involvement in new technologies and websites have

higher brand reputation and belief. Do not only increase sales but also the "core value" of the

company. Numerous U.S studies show that e-commerce over the next 10 years, the vast

majority of companies that do not have web pages adapted to many languages will disappear.

Promoting the Social Branding ranges from the simply action of creating a Linked-in profile the

introduction on social networks pages like Twitter or Facebook spread corporate recognition.

By contrast, a web page is the company on-line personal, brand and product presentation. It is a

firm commitment to corporate responsibility.

Architecture of Marks.

The brand architecture refers to the logical order and segmentation of the different products that

complete a portfolio. If your brand includes several products, before exporting you must create a

mental differentiation for each of them in order to make each product being able to meet

different needs.

2.2 - Adequacy of the internal structure

Before exporting you must remember that your personal and internal structure that had has since

now, may are not ready for export. This preparation may not be for several reasons:

1- Ignorance of the export process

2- Non - internal project communication

3- Not having a knowledge of foreign languages

4- Never have had international experience before

Do I need to adjust my internal structure? Will my staff be involved?

1. Yes, my staff will be involved. To do this you need to create an export department in your

company, which will have to be occupied by a person with sufficient knowledge to such

office. The other departments should be trained on how to manage the new tasks to be

incorporated in the company.

2. No, my staff will not be involved. If you decide to outsource your export process by

international actors or new hires please keep references. Remember that one of the main

risks when outsourcing the process is the loose of potential customers since an external

company will have access to your database. Do not also forget that your staff will need to be

knowledgeable of the new activity that will be done in the company; especially for

accounting or administration departments, whom should receive information for new

activities they will be faced on.

3. A third option will be a mixed strategy consisting on incorporating to your staff export

experts to carry on the activity internally. That will provide an objective viewpoint since the

expert would be hired from outside the company, and also will contribute giving all the

benefits of having an extra and specialized worker.

2.3 - Adaptation of Marketing Mix.

The strategic analysis of the key internal aspects of a company, or marketing mix, are often

designed for a market or specific product portfolio. Consequently, we must review it in order to

adapt strategies for our new target market. In short: re-define our business strategy.

Price

The price we say is the basic tool that will stimulate our demand. Also we will determine the

profitability of exports. The price is a very relative concept, for which there are often unsure

how to set it, in export, our aim will be to understand the customer's mind and to know how

much they are willing to spend (which is not the same as how many they finally spent, but the

value that the customer gives the product).

The 5 key steps to set the price. (Mix method between the “average method” and “cost method”)

Step 1 - Analyze your production capacity. Look what is the maximum you can sell; this will

determine the amount of demand that can satisfy.

Step 2 - Determine the unit cost. Differ from variable costs and fix costs. Variable cost will

depend on the total amount of your production while fix cost will remain stable no matter the

quantity you produce. Do not forget your cost of administration and your cost of sales (also

referred shipping costs, tariff costs ... any extra costs accruing from the sale). Followed sum of

all costs and divide by the number of units produced.

Step 3 – Once you have the unitary cost, find out the breakeven point. BeP will determine the

quantity and price in which your revenues cover the costs. Therefore, you only need to add your

desired margin level to the founded price.

Step 4 - Find out the price of your main rivals in the destination country, that will help you

to position yourself rationally on the new market.

Step 5 – Combine your price with your . Note that the resulting price should not exceed the

price of your competition. You can take as reference the average of the prices of your

competitors.

Product

You should know that the product you choose is your image in the destination country. It is not

advisable to try to marketing many portfolios for your fist export experience. So, which one of

your products should you take for? We recommend you to choose the product that is nationally

the most demanded and that one that provide you a greater margin of profit. It will therefore be

the most elastic in terms of prices so we will be able to adapt it depending on the country and

the demand. In the section "2 - L'ets Adapt our product" we will analyze how we can and should

adapt the product to the European export.

Distribution

It is about considering all channels through which our product pass through, since it is

manufactured until it reaches the hands of our buyer and consumer. In the section "3 - L'ets

Export" we will see the way how we can distribute our product, and under what both regulations

and payment methods we can use for it.

Promotion

During the promotion of our product or service we will consider both: the specific promotional

actions (you should refer those used to promote our product nationally) and the methods on how

we can manage these promotions. In the same way we will consider staff conducted

promotional activities.

2.4 – Planning

Planning, despite not being a compulsory step, it is one of the major pillars on export. It brings

together all the ideas and processes that guide the project progress to achieving objectives. You

must be aware that to ensure good progress is necessary to be prepared and planned. To get

prepared, there is need to develop a great sales pitch and guide development, but it is

recommended to set the different objectives to be achieved with the project.

In case of export we can differentiate two main steps:

1. Step 1 - Feasibility study of the project. Before starting the export procedures, it is

necessary to analyze how important is the development of the project for the company

and how the company is prepared for such purpose. Thus, it is recommended to do an

analysis of all the stages in which the company has weaknesses, for example, if the

product is not suitable, or if the team is not prepared for what we will need a few days

of preparation.

2. Step 2 - Planning for the project. Second, once reached all the steps above, it is

recommended to assign exact dates of completion of the steps one by one's related to

the export process (allocation through phases). This planning also must address all

potential issues under the assumption "What if". Similarly, we recommend making a

distribution of tasks and resources for each stage of the process. This will avoid last

minute surprises. Very important: do not wait until the end of the project to analyze

the results. Keep analyzing it as completed goals.

Who plans?

Any person on the company can help planning if their arguments add value to the project.

However, we recommend the planning task to be done by the team that will finally develop the

planned activity, otherwise relevant information can be lost.

Is it necessary to follow a planning model?

It is not necessary to follow a planning model but you need to ensure that development planning

covers all objectives. It is advisable to accompany these goals with planned completion dates in

order not to delay the project tasks and carry the day. The level of detail of the planning process

will be determined by the difficulty of the project or the degree of involvement and control that

the company wants to exert on it.

And… if I do not elaborate a perfect strategic plan?

As mentioned, the elaboration of a strategic plan it is not mandatory. However, if the company

chooses not to draw it up, should keep in mind that they must use an appropriate methodology

for the development of the project. It is indispensable to set down the main objectives and

actions; otherwise, direction may not be clear what will preclude goal achievement.

To market a product is not enough only adapting it in terms of selling the brand but is required

its adaptation from a physical standpoint. However, not all markets can sell the product as sold

in the domestic market, in fact, each country usually has its own packaging and labeling rules.

Usually, there are four degrees of adaptation of product according to the relevance to the output

thereof to foreign markets. 4 degree of adaptation can be classified as:

- First degree factors

First grade factors are all those related to the legality and intangible of the product such as:

intellectual property, use of know-how, quality certifications and other certifications such as

the certificate of origin. In that part, should also be considered sanitary and phytosanitary

regulations and safety regulations for electrical products, flammable or poisonous substances.

- Second degree factors

They are all related to the physical aspects of the product subjected to the law of the importing

country. We refer to packaging, labeling and design; and also to both the technical aspects and

used building materials related to making, patterns, durability, and fitness to the physical rules

of origin. In this second level are also considered technical specifications, volume and weight.

- Third degree factors

Third grade factors are relevant to the brand, after-sales service and product image. 3th degree is

the least involved in connection with the product outlet to the foreign market since the three

factors mentioned before by their own do not prevent proper marketing. It is then the creation of

attractive properties for the consumer in accordance with the specification of the country.

More specifically, both the creation of the brand, and the image, follow the same structure and

construction that what was argued in "Corporate Positioning 2.1" to create brand equity, but this

time applied to product.

- Fourth degree factors.

They correspond to the climate and geography which affect the buying patterns and usage that

in turn determine the marketing of the product. Fourth grade factors cal also be non-tariff

barriers which, although they are not subject to any legal rule are those that ultimately approve

or deny market acceptance. Within this group we can consider the "obstacles" that public

agencies and / or governments establish to promote national market and hinder market access

abroad.

Before proceeding to the analysis of possible alternatives and European export adjustments, let

focus the main ideas: Europe is, in itself, a geographical and cultural concept. It concerns the

territory limitation. The European Union, otherwise it is a political and economic union between

the 27 countries belonging to the Continent. Consequently regulations will apply according to

the destination countries and they fall within the union, or not. Recall that intra-Community

countries, as are within European Union framework, they enjoy total freedom of movement of

goods including transport and sale. Just if need, restrictions on free-circulation would be only

applicable with relation on public interest matters such as public health and safety,

environmental protection or consumer welfare. Once contextualized, what are the 4

considerations to keep in mind before exporting?

1 – Identify and select your potential market

The selection of the market in which you will and want to operate is one of the most difficult

decisions to take. Along with the strategy to be carried out for the above market, this will

determine the implication and evolution of all our activities.

Tips for the selection and choice of markets:

- Choose growing markets and analyze the different channels you have to access them.

- Consider what the market has dealt with other neighboring markets. Thus, if in the

future you decide to open a new neighborhood market, you may find it easier since you

are already implemented in the country of origin of the favorable treaty.

- Use a pattern of market selection. The selection pattern lets you to evaluate the

conditions of market access as well as all relevant variables for projection, input and

marketing of your product.

How should I prepare a market selection pattern?

1 - Develops an initial list of objectives, interests and preferences

2 - Classify the relevant variables as they pertain to: macro, sector or product.

3 - Analyze the variables classified as: demand, imports and competition.

4 - Evaluate each outcome with numerical values.

5 - The potential market is the market with the highest score.

Besides serving to assessing markets, the selection matrix serves as a basis for the development

of the export plan since it includes the main interest for the project and the importance of each.

You can also consider in your selection matrix tariff aspects, plus tax and Commercial

Technical standards, sanitary and Phytosanitary and Animal Health, licenses, rules of origin,

voluntary standards or any information that may condition the sale of your product.

2 – Do an Export Plan.

Perfect! If you have reached this point, that means you have few steps left to make your first

sale! So far all efforts have been focused on making all inquiries and modifications / adaptations

needed to prepare for the sale of the product. and now we have chosen the potential market, we

need to be prepared to it. The Export plan aims to bring together all these variables into a single

document to monitor the whole process. What parts should include my Export Plan?

The theory says that we are to follow and analyze the following:

1- Company description

2- Market analysis

3- Product manufacturing

4- International law and legal issues

5- Personnel strategy

6- Implementation plan

7- Financial analysis

8- Risks and penetration plan

9- Review plan

Although the practice leads us to review it more practical:

1 - Company Analysis self – Company readiness

2 - Production / finance plan – Product Readiness

3 - Market / Industry fact plan

4 - Market penetration Strategy

The export plan will help us establishing by a serious manner the correlation of the company

preparation in relation to the evolution of the market product sales or export process.

3 - Prepare the entry method and contract

Choose the best entry mode - Export Methods

The choice of entry selling method of your product will be carefully chosen since it will

determine the first positioning of it. The export method chosen must be consistent with the

internal structure of the company, their capacities and available resources (financial and human

capital) and also related to the commercial strategy of the company. In addition, the export

method will be determined and a determinant of our potential and reachable customer target.

For example, if I’m selling decorative flowers my chosen entry method selected to reach my

projected target will be different as if I sell military tanks.

Apart from the own company point of view related to the aimed strategy, and before the

selection, it is also very important to consider the economic conditions of the country you are

exporting and your customers creditworthiness. This consideration it is close-related with the

payment term choosing procedure, since both will determine your turnover.

Preparation of the strategy in relation to the

market potential and export process

Negotiate a payment terms - Payments Methods & Incoterms

In the same way than selecting export entry method, the choice of international payment system

is also a very delicate point.

Choosing payment terms is influenced not only by the size of your firm but also by the company

risk tolerance. Depending on the ability of the company to face fraud actions, the nature of the

products or services sold, previous export experiences or simply the perceptions of the

international conditions and its evolution must help us to decide whether an option is better than

another. Depending on all those factors the payment method will be more or less restrictive,

and more or less rigid, meaning the payment reception more or less secure. In reference to that

and to the trust level that the exporter wants to offer the importer, is especially advisable to offer

payment methods to those countries with restrictive trade and market risk high. Among EU

countries payment methods can be more relaxed.

Complementary to the choice of payment system we can find Incoterms, what are also called

“price clauses”. Incoterms are international rules governed by the International Chamber of

Commerce, which determine the extent of the commercial clauses included in international sales

contract.

Incoterms helps companies to better decide which of the payment clauses are suitable for its

commercial and financial transaction since they determine to whom the responsibility of the

delivery of goods, transport and transfer risk is relapsed to.

Incoterms can be classified through 2 structures:

1- The first structure organizes the incoterms depending on 2 subgrups: ones related to

shipments up to the destiny customs house (without crossing it) and the second one

related to shipments that crosses destiny customs house. Thus, we find on the first

EXW, FCA, FAS, FOB, CFR, CIF, CPT and CIP and in the second group DAT, DAP,

DDP.

2- The second structure, organizes the incoterms depending on its Group Nature. Thus, we

find:

a. Group E (EXW)

b. Group F (FCA, FAS, FOB)

c. Group C (CFR, CIF, CPT, CIP)

d. Group D (DAT, DAP, DDP)

Do not forget regulations, taxes & export documentation

Regulations, taxes and export documents vary depending on our target market. Considering

Europe as our potential market, firstly we must differ between countries belonging to the

European Union and those outside - also called third markets.

For the third markets, it is necessary to monitor import duty system regulations for each specific

country, since each one can hold different ones. Nevertheless, some compulsory

documentations will be commonly applied on all European countries. The principal ones are

EAD (accompanied export document), CPC (Customs Procedure Code), SAD (single

administrative document) and ATA Carnet, among others; It is also important not to forget

about customs declarations through the NES (national export system) which in turn is part of

HMRC's CHIEF.

For European Union markets, despite having customs exemption, it is necessary to fit within

some requirements. These procedures include the following documents: Certificate of Origin

Form A, Bill of Lading, Carnet TIR, ATA Carnet, the Single Administrative Document (SAD),

Commercial Invoice, Packing List, DV Format, health certificate, and CITES Certificate.

4 – Keep your project growing - Funding, grants and Support.

Ones the project or export procedures are enough consistent to go a forward step, we need to ask

ourselves the feasibility of using growing aids. The main ones are:

- Funding & Grants request

Funding and grants request, despite the obtainment is being even more complicated, it is an

option you do not have to underestimate. A lot of private and public agencies are waiting for the

best projects and products to give them an opportunity. Proof you have future and you will get

refund. Nevertheless, remember that applying for public assistance, would depend on the

country legal structure. It is also important to consider the possibility of profits repatriation.

Although we are within the European framework whose main premise is the free movement of

goods and capital, do not forget that some markets do not allow capital outflows (or benefits

repatriation) for what is required to re-invest in that country.

- Promotional and divulgative possible measures

Complementary measures can help you to both introduce the product on the new market and

promote it. There are a lot of possibilities in that arena, but as always, your choice will depend

on your resources, product, strategy and potential market. The main ones are:

Use of chambers of commerce and regional offices, hiring specialists in International Trade,

participation in conferences, support application on international fairs, conducting direct and

reverse trade missions, conducting trade agendas, use of joint programs and services.