agenda what’s icom? what’s europe? how ebs can help q&a

Agenda

• What’s ICOM?

• What’s Europe?

• How EBS can help

• Q&A

What’s ICOM?

Cross Border Experience

Air Liquide…………industrial gasAlgoflash................... .garden fertilizerBayer Crop Science……..agricultural Carpe Diem.......................health drinkCaterpillar………….power enginesDisney Channel…………TV networkDremel…………………power toolsDr. Oetker……………………foodESM Seminars………………seminarsEuropean Union…….consumer rightsFerrosan……………skin care productsHSBC…………………financial servicesInterBay Funding......property financing

Maison de la Franc………….tourismJCB..................construction equipmentMiele....................................appliancesNatura.......................beauty productsNorpharma...................pharmaceuticalsNovo..............................health programÓpticas Devlyn..................optical retailPetrobrás.............................oilPeugeot...............................automobilesQatar Airlines………………airlineScania…………trucks, buses, enginesSanyo……………………….electronicsVins de Pays de France…….wines

What is Europe?

• One trading area• 456m people• 308m people in Eurozone• Euro as major global currency• European central bank• English widely spoken

therefore easy to access or ………

….more complex!

• 25 countries• Multiple languages and cultures• Local legislation within EU framework• Eurozone vs the rest• European vs national government tensions• Popular opposition to further integration• Enlargement may include Turkey• Anti-American sentiment re Iraq and

globalisation

Relative Population

Population Trends

Demographics

• Fewer later marriages, more divorces• Fewer children, later • More births outside marriage• 17% over 65 and rising• More single person households• Migration from non EU rising

Relative Purchasing Power

Employment

USA – the key trading partner

Cultures

• Cultural diversity • History – internal conflict and world powers • Anglo Saxon vs Continental ethos• Mediterranean lifestyle vs Northern Europe• Protectionist vs free traders• Religious tensions• Regional tensions• Urban vs rural

Planning for Europe

• Opportunity assessment• Country selection• The UK as a springboard• Route to market• Investment• Practical matters

Assessing the Opportunity

• Company commitment and resource• Objective help from experienced

professionals in Europe• A sound assessment process

– Market information– Competitive landscape– Customer buying criteria

Country Choice

• Market specific factors• Customer price sensitivity• Competitive position• Country size• Central vs Western Europe

UK as a Springboard

• Language• Culture aligned to US• Common entry point• Flexible labour laws• Good Intellectual Property Protection• Ready access to rest of EU• £/€ not an issue• The City

The Sunday Times

The Sunday Times

March 12, 2006

UK as a Springboard

• The last two years have been sensational. London is no longer the second city. Right now it is as fast as New York.” James Cayne, Bear Stearns

• “People go to Tokyo to do business in Japan, they go to New York to do business in America, but they come to London to do business with the rest of the world.”Jeremy Isaacs, Chairman Lehman Brothers Europe and Asia 

The Times

The Times

March 20, 2006

UK as a Springboard

• “Hundreds of American companies are hoping to join the Alternative Investment Market in London to avoid the heavier regulatory environment in New York”

London City Lawyer

• “London is becoming more attractive for some American companies because of Sarbanes-Oxley”

Michel Peretie, Chairman Bear Stearns

Route to Market Options

• Sales Agents• Importers/Distributors• Joint ventures• Licensing• Acquisition• Company start-up

Sales Agents

• Direct shipment to end customer• Title remains with principal• Cost effective • Quality• Maximum control• Appropriateness dependent on industry

Importer/Distributor

• Local title and stockholding• Established route to market• Distributor likely to be well known to

customers• Client competes with other principals• An extra margin

Joint Venture Partner

• Need to have common objectives• Clear understanding of partner roles and long

term position• Control?• Useful where local manufacture important

Licensing/Franchising

• Need for compelling product or service• Commercial support• Low risk but low return?

Acquisition

• Resource intensive• Target availability• Well developed corporate finance

infrastructure • All major US investment banks represented• UK as centre of private equity industry

Company Start Up

• Human and physical assets required?• Investment • Recruitment• Time scale to profitability• Advisors

About EBS

• We help companies develop profitable multi-country or single market businesses in Europe with a flexible menu of marketing services, including the identification of distribution and sales partners

 • EBS is a European Marketing Services Group staffed

by people with an impressive record in European marketing

 • With well-established links across the key European

markets, and partners in the USA, EBS gives businesses of all sizes the power they need to grow

Who We Can Help

• Companies planning first steps in geographical expansion

• Companies operating in several European markets who want a highly responsive and integrated service across Europe

• Companies with a pan-European concept who wish to establish “early mover” advantage in several markets over a short time scale

How We Can Help

• Research• Legal advice• Office space• Staffing• Financial advice• Distributors• Franchisees• Industry advisors• Business and marketing advice and support

How EBS works

Process Definition

Plan DevelopmentFirst Stage Audit

Decision Support Tools

Countries

SituationAnalysis

Competitors

Market

Customer Voice

Profiling

Segmentation

Research

No-Go or Go Forward

Offices – staff base in

country

Plan Development

Decision Support Tools

Countries

SituationAnalysis

Competitors

Market

Customer Voice

Profiling

Segmentation

Research

Decision Support Tools

Countries

SituationAnalysis

Competitors

Market

Customer Voice

Profiling

Segmentation

Research

Budgets

Timeline

BusinessPlan

Development of Strategies & Tactics

Plan Development

Offices – staff base in

country

Research

Sales & MarketingCommunications

Plan

Implementation

If research gives a comfort to launch in country EBS will:

1. Audit $30,000-50,000

2. Initiate research

3. Work up business plan for each country

4. Plan out all service supports

5. Budgets for year one and two

6. Work up complete sales/marketing communication plan

Total Price: $150,000 - $200,000

- all depends on size of plans

InterBay Funding

EBS’s role

• Help to launch InterBay in the UK in May 2006

• Activities have included:- Analysing the UK market in depth

  - Finding office space- Staff recruitment- Extensive market research- Identifying industry experts- Business and marketing advice- Adapting US advertising

InterBay Funding

EBS’s role cont’d…

- Advertisement placement

- PR launch and on-going campaign

- Producing marketing materials

- Web-site adaptation

- Corporate video production

- Creation of exhibition stand and event co-ordination

- Advising at all business levels until the UK is fully formed

The Main Pitfalls

….according to the American Chamber of Commerce:

•  Under-estimating the cultural differences – “you can’t just snap your fingers and expect to get an appointment”

• Not understanding the environment – “many US companies falter because they don’t have access to a local network that can help and support them”

• False expectations – “a lot of American companies make the mistake of believing that entering a country that speaks their language is a piece of cake… it isn’t! For one thing American and English are two different languages…”

The Importance of Local Knowledge

It seemed like a simple translation! “Pepsi brings your ancestors back from the grave” Pepsi ad slogan ‘Pepsi Comes Alive’ as originally

translated into Chinese

“It takes a virile man to make a chicken pregnant” Purdue Chicken ad as mistranslated in Arabic

The European Players

Klaus Kitzmueller, Germany

Uffe Just, Scandinavia

Terry Stannard, UK

Patrick Walhain, France

Inigo Muguiro, Spain

Key Insights

• You need a working knowledge of the various European markets in order to successfully expand into Europe.

• A solid plan in critical:– An understanding of what is required to launch your product in

Europe– A feel for the European business climate– A feel for some of the benefits as well as pitfalls of doing

business in Europe– Follow an established process

• Utilizing an experienced network of European businesses located in the markets you are targeting will help to ensure your success.

Questions & Way Forward

THANK YOU