Marketing in the Global MarketplaceMarketing in the Global Marketplace

International Lessons Learned International Lessons Learned

SC International Trade ConferenceSC International Trade ConferenceCharleston Place * Charleston, SCCharleston Place * Charleston, SC

May 27, 2008May 27, 2008

Dana M. HicksDana M. HicksManaging DirectorManaging Director

Perlitz Strategy Group - AmericasPerlitz Strategy Group - Americas

International Lessons LearnedInternational Lessons Learned

Target Market ResearchTarget Market Research Channels to MarketChannels to Market Product AdaptationProduct Adaptation Product LiteratureProduct Literature Product PricingProduct Pricing Travel TipsTravel Tips

Target Market ResearchTarget Market Research Target countries that “Buy American”Target countries that “Buy American” Confirm market for your product existsConfirm market for your product exists Estimate market size and growthEstimate market size and growth Identify & quantify market segmentsIdentify & quantify market segments Identify major competitorsIdentify major competitors Profile each major competitorProfile each major competitor Determine & articulate the competitive Determine & articulate the competitive

advantage(s) for your product or serviceadvantage(s) for your product or service

Attractive Target MarketsAttractive Target Markets NAFTA Countries – Canada & MexicoNAFTA Countries – Canada & Mexico

• Close proximity, easily reachableClose proximity, easily reachable• Reliable supply chainsReliable supply chains• Same time zones as USASame time zones as USA

Free Trade Agreement (FTA) MarketsFree Trade Agreement (FTA) Markets• Existing – Australia, Bahrain, Canada, DR-Existing – Australia, Bahrain, Canada, DR-

CAFTA, Chile, Israel, Jordan, Mexico, Morocco, CAFTA, Chile, Israel, Jordan, Mexico, Morocco, Oman, South KoreaOman, South Korea

• Pending – Columbia, Panama, Peru, South Pending – Columbia, Panama, Peru, South KoreaKorea

Channels to MarketChannels to Market Identify feasible channels to marketIdentify feasible channels to market

• Agent, Rep, Distributor, SI, VAR, OtherAgent, Rep, Distributor, SI, VAR, Other Define criteria for desirable channelsDefine criteria for desirable channels Identify & profile top potential partnersIdentify & profile top potential partners Consider US Dept of Commerce Gold Consider US Dept of Commerce Gold

Key Service and partner searchKey Service and partner search Use in-country SC Dept of Commerce Use in-country SC Dept of Commerce

trade specialists where availabletrade specialists where available• Canada, Germany-Western Europe, China, Canada, Germany-Western Europe, China,

Japan Japan

Product Adaptation & PackagingProduct Adaptation & Packaging

Local market approvals – CSA, IEC, EULocal market approvals – CSA, IEC, EU Voltage & frequency for target marketVoltage & frequency for target market Name appropriate in local languageName appropriate in local language Multilingual product labels and packagingMultilingual product labels and packaging Metric dimensions, weights, unitsMetric dimensions, weights, units Minimize size & weight of packagingMinimize size & weight of packaging ““Green” biodegradable packagingGreen” biodegradable packaging

Product LiteratureProduct Literature

Point of purchase displays and signage in Point of purchase displays and signage in local languagelocal language

List metric dimensions and weightsList metric dimensions and weights Design/layout brochures & flyers so they Design/layout brochures & flyers so they

can be printed locallycan be printed locally Leave ample “blank space” in original Leave ample “blank space” in original

English literature for translationEnglish literature for translation

Product Pricing & SalesProduct Pricing & Sales

Benchmark in-country end user pricingBenchmark in-country end user pricing Cost plus transfer pricing if shipping to Cost plus transfer pricing if shipping to

a company subsidiarya company subsidiary Optimize supply chain to reduce landed Optimize supply chain to reduce landed

cost and boost marginscost and boost margins Pros and cons of “ex-factory” salesPros and cons of “ex-factory” sales Sell and invoice in U.S.$ if possibleSell and invoice in U.S.$ if possible

Travel TipsTravel Tips Maintain low profileMaintain low profile No college or pro sports team wearNo college or pro sports team wear No flashy jewelryNo flashy jewelry No big, obtrusive luggage tagsNo big, obtrusive luggage tags Learn a few words of local languageLearn a few words of local language Learn some facts about your Learn some facts about your

destination’s culture & historydestination’s culture & history Know & understand currency Know & understand currency

exchange ratesexchange rates Know local tipping practicesKnow local tipping practices

S.C. International Trade CoalitionS.C. International Trade CoalitionIncludes federal, state, and private organizations Includes federal, state, and private organizations

involved in promoting international trade. involved in promoting international trade.

S.C. Department of Commerce S.C. Department of Commerce http://www.SCcommerce.com

U.S. Commercial Service of the U.S. DOC U.S. Commercial Service of the U.S. DOC www.export.gov

S.C. State Ports Authority S.C. State Ports Authority http://www.port-of-charleston.comhttp://www.port-of-charleston.com

S.C. Department of Agriculture S.C. Department of Agriculture http://www.scda.state.sc.us http://www.scda.state.sc.us

S.C. Forestry Commission S.C. Forestry Commission http://www.state.sc.us/forest/ http://www.state.sc.us/forest/

S.C. World Trade Center, Charleston S.C. World Trade Center, Charleston http://www.scwtc.org http://www.scwtc.org

The Export Consortium The Export Consortium http://www.exportconsortium.comhttp://www.exportconsortium.com

S.C. District Export Council S.C. District Export Council http://www.scdec.orghttp://www.scdec.org

City of Columbia Office of Economic Development City of Columbia Office of Economic Development http://www.columbiascdevelopment.com http://www.columbiascdevelopment.com

Thank YouThank YouMerci, Danke SchMerci, Danke Schöön,n,

Muchas Gracias, Grazie Mille,Muchas Gracias, Grazie Mille,Domo Arigato, Xie Xie NiDomo Arigato, Xie Xie Ni

Questions?Questions?Dana M. HicksDana M. Hicks

Perlitz Strategy Group - AmericasPerlitz Strategy Group - Americasdana.hicks@perlitz.comdana.hicks@perlitz.com

www.perlitz.com www.pipelineplanner.com www.perlitz.com www.pipelineplanner.com

International Trade Impact on SCInternational Trade Impact on SC$16.56 billion in exports in 2007$16.56 billion in exports in 2007

Ranked 9Ranked 9thth among 50 states among 50 states

In 2007, SC’s Largest Export Markets: Germany, In 2007, SC’s Largest Export Markets: Germany,

Canada, Mexico, UK, ChinaCanada, Mexico, UK, China

Germany replaced Canada as #1 export market for Germany replaced Canada as #1 export market for

SC exports in 2007SC exports in 2007

From 2006 to 2007 SC’s fastest growing markets were From 2006 to 2007 SC’s fastest growing markets were

in the Western EU, specifically Germany, Belgium, in the Western EU, specifically Germany, Belgium,

France, Spain, Sweden, and SwitzerlandFrance, Spain, Sweden, and Switzerland

Other fast growing markets for SC exports: Argentina, Other fast growing markets for SC exports: Argentina,

Brazil, Chile, Australia, South Africa, UAEBrazil, Chile, Australia, South Africa, UAE

Impact of Trade on SCImpact of Trade on SC SC Economy Increasingly DiverseSC Economy Increasingly Diverse

• Leading Export Sectors in 2007: vehicles, Leading Export Sectors in 2007: vehicles,

machinery, plastics, electrical machinery, machinery, plastics, electrical machinery,

rubber, paper and paperboard, organic rubber, paper and paperboard, organic

chemicals, optics and medical equipment, chemicals, optics and medical equipment,

wood pulp, and manmade staple fiberswood pulp, and manmade staple fibers Export-supported jobs in 2007 accounted for Export-supported jobs in 2007 accounted for

9% of SC’s total private sector employment9% of SC’s total private sector employment• Average national percentage is 7.2%.Average national percentage is 7.2%.

Ranks 14th in number of jobs linked to exportsRanks 14th in number of jobs linked to exports

Importance of Exports to SC EconomyImportance of Exports to SC Economy Exports mean higher wages for SC workersExports mean higher wages for SC workers

• Export-related jobs pay wages that are 13-16% Export-related jobs pay wages that are 13-16% higher than other jobs.higher than other jobs.

• In the high-tech field, hourly earnings are 34% In the high-tech field, hourly earnings are 34% higher than the national average.higher than the national average.

Exports mean growth in SC jobs & job securityExports mean growth in SC jobs & job security• U.S. export-related jobs have grown several times U.S. export-related jobs have grown several times

faster than total employment.faster than total employment.• Exports have accounted for the majority of U.S. Exports have accounted for the majority of U.S.

manufacturing jobs created in the last few years.manufacturing jobs created in the last few years.

U.S. Commercial ServiceU.S. Commercial Service

Worldwide networkWorldwide network

105 Export Assistance Centers throughout 105 Export Assistance Centers throughout the U.S.the U.S.

Charleston, Columbia, and Greenville, SC.Charleston, Columbia, and Greenville, SC.

157 offices in 84 countries157 offices in 84 countries

One-on-One Long Term Export CounselingOne-on-One Long Term Export Counseling

95% of your potential customers live outside the 95% of your potential customers live outside the United StatesUnited States

S.C. Dept. of CommerceS.C. Dept. of Commerce

SC OfficeSC Office

Columbia Columbia International Trade DivisionInternational Trade Division

1201 Main Street, Suite 1600 1201 Main Street, Suite 1600

Columbia, SC 29201-3200 Columbia, SC 29201-3200

Telephone: 803.737.0400Telephone: 803.737.0400

Overseas OfficesOverseas Offices

• Toronto, CanadaToronto, Canada• Munich, GermanyMunich, Germany• Yokohama, JapanYokohama, Japan• Shanghai ChinaShanghai China

www.SCcommerce.com

South CarolinaSouth Carolina

Our mission:Our mission:

Supply specialized expertise to small and medium-Supply specialized expertise to small and medium-sized businesses that are interested in exporting.sized businesses that are interested in exporting.

Encourage Small Business Exporters to take Encourage Small Business Exporters to take advantage of Federal, State and Local resources.advantage of Federal, State and Local resources.

District Export Councils (DECs) are organizations of leaders from the local business community, appointed by successive U.S. Secretaries of Commerce, whose knowledge of international business provides a source of professional advice for local firms.