IBC 101
IBC 101:
International
Essentials
IBC 101
Why Export?
Incremental Business?
Out to Conquer the World?
Corporate Goals?
Vision?
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IBC 101
Customer Review
Who & where are your current customers?
What channels are they in?
How large or small are they?
Mass Merchants,
Department Stores or
Independent Specialty?
Take care of what you’ve got!
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IBC 101
Customer Review
Prepare and Prioritize:
Descending country list with
Descending account list
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IBC 101
Product Review
What do you have to sell?
Why would it sell (or not) in a foreign market?
What needs to be modified?
Product?
Color, design, features, etc.
Material Compliance
(plastics, silicone, electrical)
Packaging?
Language, metrics, etc.
Instructions?
Warranty?
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IBC 101
Product Review
Prepare and Prioritize:
Descending Product list
(by sales or units)
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IBC 101
How to go to Market
Channels:
Retailer
Distributor
Export Management Company (EMC)
Supply Chain:
Ex US Warehouse
FOB Foreign Factory Port
Branch Office – Warehouse
All of the above
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IBC 101
Pricing
Start with Domestic
Modify as appropriate for international
Review International Pricing Strategies
Presentation
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IBC 101
Develop Pricing Grid
Variables:
Local Market Pricing
Country Competitiveness
Retailer or Distributor Model
Order Size
Shipping Point
Credit Terms
Multi-National Issues (Walmart)
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Pricing
IBC 101
Payment Terms
& Conditions
Cash in Advance
Net 30/60/90/…
Letters of Credit
Credit Checks
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IBC 101
Export Mechanics
INCO Terms – updated in 2010
International rules accepted by governments, legal
authorities and practitioners worldwide for the
interpretation of the most commonly used
international trading terms.
Reduce or remove uncertainties arising from
differing interpretations of such terms in different
countries.
www.iccwbo.org/incoterms
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IBC 101
Export Mechanics
IBC 101
Export Mechanics
Freight Forwarder
Arrange international shipments
Prepare and process documentation
Commercial Invoice
Shipper’s Export Declaration
Automated Export System
Bill of Lading
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IBC 101
Export Mechanics
International Quotations
Quotation Form
Proforma Invoice
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IBC 101
Export Mechanics
Product Returns / Warranty
% allowance
% discount
Settle when required
Local Service Center
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IBC 101
Company
Infrastructure
Senior Management (Corporate “buy-in”)
Category Management
International Sales Team / Reps
Order Department
Credit Department
Export Logistics
Warehousing & Distribution
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IBC 101
Sales Channels
Sales Representatives
Exclusive? What is the territory?
What are the terms?
% commission, samples, expenses
Distributors
Exclusive? What is the territory?
What are the terms?
% markup, samples, expenses
Direct to Retail
What service is needed?
Merchandising?
Who provides? Who pays?
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IBC 101
Budget:
Unique Export Costs
Product:
Patent & Trade Marks
Product Testing & Compliance
Certifications (CE Mark, etc.)
Packaging – Market Specific
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IBC 101
Sales:
Travel
Trade Shows
Trade Missions
Collateral Material
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Budget:
Unique Export Costs
IBC 101
Market Selection
IHA Membership Export Survey
88%
65%
64%
62%
56%
49%
45%
40%
35%
27%
Canada
Mexico
W Europe
Latin America
Australia
Asia
E Europe
Mideast
US
Africa
Export Destinations % of Sample Exporting to Each Country
n=797
IBC 101
Market Selection
For whom are your products best suited?
What are your best opportunities?
Where should you focus?
Pick three markets
Don’t try to tackle the globe…
What are your budgets?
What are your travel plans?
How often can you return to the market?
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IBC 101
Market Selection
TARGET MARKET
=
Market Size
x
Market Attractiveness
x
Suitability of Products to Market
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IBC 101
Market Selection
MARKET Product / Category 1 Product / Category 2
U.K.
Pan Europe
Japan Immediate Markets
Mexico
Australia
Brazil
CIS (former Soviet
states)
South Korea Mid-Term Markets
ASEAN (SE Asia)
Argentina
GCC (Middle East)
C. America Longer Term Markets
S. Africa
China
India
Example
Only – Adapt
chart to your
specific
products &
situation
IBC 101
Business Plan
What are your objectives…
…for each market?
How will you enter the market?
Trade Missions
Trade Shows – Prepare Lead Sheet
IHA Retailer Reports
Distributor Search
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IBC 101
Trade Missions
Trade Mission
Brazil/Colombia – September 13 - 18
Trade Mission
Australia/New Zealand – November 8 - 13
IBC 101
Trade Shows
IBC 101
Distributor Search
IBC – Networking
Trade Missions
Trade Shows
Retailer recommendation
US Department of Commerce
Gold Key Program
www.export.gov/salesandmarketing
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IBC 101
Business Plan
What budget is available?
Trade Missions / Trade Shows
Which?
Travel
How often?
In-house support
Order entry, customer service, etc.
In-country support
Merchandising, marketing, etc.
Samples / Collateral Material
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IBC 101
Export Compliance
Product Compliance
Materials Used
Plastics
Silicone
Electrical
Packaging
Language
Metrics
Import Labels
IBC 101
Export Compliance
Shipping Compliance
Dangerous Goods
Aerosols
Pressurized products
Alcohol
Chemicals – cleaning solvents
Glues
Effects on Packaging & Labeling
IBC 101
Export Compliance
Customer Compliance
Lists to Check – Denied, Debarred, etc…
www.bis.doc.gov/complianceandenforcementliststocheck.htm
IBC 101
Customer Compliance:
Restricted Country List
Restrictions vary from country to country
www.bis.doc.gov/exportlicensingqanda.htm
Some restricted destinations are
embargoed countries:
Cuba, Iran, North Korea, Sudan, Syria
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Export Compliance
IBC 101
Questions?
IBC 101