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