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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): ___________________________________________
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Why is this suitable for BOP markets? ________________________________________________________
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Product 3: ______________________________________________________________________________ Brief description (function, price, competitive features): ___________________________________________
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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):
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