Support to the Development of Greenfield investments in Lithuania

“Marketing and promotion of the industrial parks”

Training session leader: Paul Baker, ECORYS

Hotel Reval, Vilnius, 19 September 2006

Content

• Strategic Marketing – brief overview• Developing a joint approach

– Motivation and purpose– Investment promotion functions– Allocating functional responsibilities in the context of

a joint approach– Mechanisms for

Marketing and Promotion

Marketing & Promotion

Attraction

FDI Strategic Marketing

• The Business Concept – Whom (“FDI Target Market”) – What (“Location Value Proposition”)– How (“Delivery Approach”)

• The Organisation Concept– Resources– Structure– Controls and Rewards

• The Core Processes– Product (Solution) Development– Resources (Stakeholder) Development– Changes & Transformation

FDI Strategic Marketing

Reasons for adopting a joint approach

• Mutual reinforcement of FDI promotion activities• Avoid negative consequences of multiple

marketing strategies– Wasteful competition to attract the same investment– Duplication of effort and utilisation of resources– Too many agents approaching potential investor– Confusion of key messages

Purpose of a joint approach

• Deliver a clear and coherent message • Enhance the ‘professionalism’ of the services

provided• Overcome resource limitations and lack of

capacity• Improve information flows, oversight and

management of the system

Main functions of an IPA

Function Description

Image buildingCreating positive image of the country as a whole to international investors and business community worldwide

Investment generation

Creation of a flow of FDI prospects: marketing investment opportunities (from general to highly targeted activities)

Retain and expand existing FDI

Investment facilitationProject handling: assist investors to evaluate opportunities; provide information and support during pre-establishment and establishment phase.

Investor servicing / aftercare / corporate development

Assist investors in the operational phases (e.g. to minimise difficulties encountered by investors in operating their business)

Retain and expand existing FDI

Policy advocacy / business environment improvement

Advocate for policies to enhance the investment and general business climate and to address investors’ concerns

Resource assessment – national level

• National level IPA (LDA)– Natural point of contact for initial investor enquiries– Involvement in defining and building national image – Better access to government networks (e.g.

overseas foreign representation)– Able to provide greater choice to investors through

broader scope of investment opportunities and locations

– Able to direct investment leads to the region(s) that are most suitable

Resource assessment – local level

• Local Agency / Industrial Zone Management– Provide local facilitation services (planning and

construction, local utilities, recruitment etc.)– Inform and ‘promote’ foreign investments to local

communities– Provide aftercare services (particularly where they

concern ‘local’ issues)– Keep Informed of developments in the business and

therefore encourage re-investment

– Assist development of linkages to local businesses (suppliers etc.)

Allocation of functional responsibilities

• IPA (LDA) should take lead role in activities of:– Investment marketing and lead generation– Investment facilitation (pre-establishment

phase)– Support to investment decision

• Industrial Zones should take lead in:– Investment facilitation (establishment phase)– Investment servicing (operational phase)

Cooperation mechanisms and protocols

• Where local investment attraction priorities are similar:– a transparent mechanism for allocating investment

prospects to individual industrial zones is required;• Where local investment attraction priorities are dissimilar:

– resources should be allocated to generate investment prospects that reflect the range of different priorities of industrial zones.

• The IPA and IZ management agencies should identify priority activities for mutual cooperation and develop an implementation plan that should be integrated within their respective Business Plans.

Coordination mechanism

• Broad context: part of overall coordination of the country’s investment promotion system

• Narrow context: coordination between national IPA (LDA) and FDI-related activities of IZ management agencies

• Scope of activities:– Setting guideline and protocols for marketing and

promotion activities– Setting guidelines and protocols for information

sharing– Administering procedures to handle disputes– Monitoring and benchmarking performance