export planning how to write an international marketing plan

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export PlanningHow to write an international marketing plan

Internationalisation of the firm

Chapter 4: Country Analysis and Selection


Export PlanningLearning objectives (learning tasks) Ch. 4

At the end of the chapter you are able to:

1. Describe the three phase filter – model as an approach to analyse and select foreign countries/markets;

2. Explain the criteria of the first filter: the pre-filter which provides a rough scan of the market;

3. Explain the criteria of the second filter: filter 1 which provides a detailed analysis of the DESTEP environment of potential countries;

4. Explain the criteria of the third filter: filter 2 which provides a detailed market analysis of the most interesting countries/markets;

5. Prepare a proposal for choosing which country(ies) to start the market entry strategy with.


Export PlanningIKEA case

Country Year Number of Stores

Sweden 1958 16Norway 1963 5Denmark 1969 4Switzerland 1973 6Germany 1974 40Australia 1981 3Canada 1976 11Austria 1977 6The Netherlands 1978 11France 1983 18Belgium 1984 6USA 1985 29UK 1987 13Italy 1989 13Hungary 1990 2Poland 1991 7Czech Republic 1991 4Slovakia 1995 1Finland 1996 2Spain (mainland) 1996 9China (PRC) 1998 4Russia 2000 8Portugal 2004 1Japan 2006 2

Country Number ofStores

Australia 2Greece 2Hong Kong 3Iceland 1Israel 1Kuwait 1Malaysia 1The Netherlands 1Romania 1Saudi Arabia 2Singapore 2Spain 4Taiwan 4Turkey 1United Arab Emirates 2USA 1


Country Analysis Example PUMA

Target: South America

12 countries

Middle and low level of economic

development

Unstable political and economical

situation in most countries

Lack of information about markets

Non-English domestic resources

Source: P.Kabanov a.o., students HAN University


Pre-Filter SelectionFACTORS:

Human development;Environmental (disaster) factors;Import duties and sea delivery costFootball association presence

Pre-Filter Result

Argentina Chile

BrazilUruguay

Venezuela

Colombia Peru

Paraguay

EcuadorSuriname

GuyanaBolivia

1,95

3,95

5,95

7,95



Filter 1 Selection

Filter 1 Result

Chile BrazilArgentina

Colombia

Uruguay Peru

Venezuela

Paraguay

2,8

3,8

4,8

5,8

6,8

FACTORS:

Political riskSocial structureGDP growth and sizeConsumptionExchange rateInflationPorts information



Filter 2

Criteria Weight Argentina Brazil Chile

Potential market size (population) 0,2 21,930,540 99,327,027 9,786,759

Potential market size (value), billion $ 0,2 26.38 73.95 12.50

Inflation direction 0,1 moderate growth stable stable

Import duties 0,2 20% 35% 6%

National football team sponsor 0,1 Adidas Nike Brooks

Main competitors representativeness 0,2 6 10 6

Sum of weighted score 1,8 1,7 1,8

Rank by sum 2 1 2

Result BEST

First country for expansion in South America is BrazilSource: P.Kabanov a.o., students HAN University


Export PlanningChapter review questions (10 min.)

1. What are the three steps of the Export Audit – phase? Name the steps and explain them.

2. Explain the three phase filter-model for country analysis and selection

3. Explain the criteria of the filter-model per phase.

4. What is a BERI-analysis / index? Explain and motivate your answer.

5. How could you apply the GE – matrix for country selection?

export planning how to write an international marketing plan

Documents