new mkts new dist
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1. Penetrating New Export Marketswith New Distribution PartnersGraham Crews 2. Initially need to identify / classify opportunities Target Markets / Distributors Existing large markets USA / Europe / Japan top GDP Potential large markets in the future BRIC (Brazil Russia India China) MINTS (Mexico Indonesia Nigeria Turkey South Africa) Hold Markets Markets where you have a presence that you wish to maintain Target Distributors That may or may not operate in these markets May cover several smaller markets that as a whole make them a target 3. Support to identify /classify opportunities There are a wide variety of reports / support to help with this General Information Web based E.g.. List_of_countries_by_real_GDP_growth_rate Published reports E.g. World Medical Fact Book Several can also be analysed further for averageages personal spending on for example health care,depending upon your markets key drivers These provide indicators to help you prioritise/ classify which markets are ideal for your business 4. Support to identify/ classify opportunities Once specific target markets are identified / gap analysis can be completed Do you have a distributor in this market Are there additional barriers to entry that would makethis not target market Regulatory restrictions Trade issues Exchange rates / fluctuations Import tariffs Other e.g. conflict Understand the markets e.g healthcare market specifically Channels to market / Diversity of pharmacies Healthcare structure / insurance Regulations etc. Identify potential distributors UKTI OMIS (Overseas Market Introduction Service) report is agood starting point Also use any other reference points may have Other clients Details from trade fairs etc.Tarrif report for Key MarketsMarket TaffifEU or MFNRussia 0%China 10%Brazil 14%India 7.5%Mexico 0%Indonesia 5%Nigeria 5%Turkey 0%South Africa 0%MFN = Most Favoured Nation - which UK isSource MADB 5. Selecting suitabledistribution partner(s) Arrange to visit the target market UKTI trade missions help and can be subsidised Arrange to meet a series of potential distributors during this visit Ahead of the visit commence dialogue with these potential distributor's Email / Skype / Telephone etc.. This is a very key stage of initially assessing their professionalism anddesire to work with you I would ask them to tell me about the local market the potential the regulatory issues the channels they would focus on the other products in their portfolio to ensure compliment your range There is no one clear answer Too big you may simply be an an item in their catalogue with limited focus Too small and they may not have the access to the market key contacts Their response details / timings / ease of communication are all factors to consider 6. Selecting suitabledistribution partner(s) During the visit make sure you meet at their offices If translation is needed ensure you have this arranged in advance During the meeting review their comments on the market and complete a distributor reviewform for assessment later Develop an initial actions plan Business plans Agree together an initial year action plan and predicted sales performance Timings / lead times to be aware of (e.g. sales meetings / range reviews) Who key targets will be agree action plan on how/when they will arrange meetings with them What marketing / sales support will they need Commercial tools needed e.g. to defend pricing in market / relative to competition etc.. Technical / Regulation requirements These will impact directly onto the Business plan Documentation they will require for regulations Lead time for regulation process if applicable into this market Understand the help and support they can give with this Other Staff training etc.. Agree responses expected and lead times e.g. monthly forecast 7. Selecting Distribution Partner(s) Following visit review all finding (facts and feelings) Follow up any agreed actions Sales / Marketing tools Technical / Regulation details etc. Finalise your decisions as soon as you can whilst the momentum is still there. Agree Distributor Agreements Details (Exclusivities / Channels / Regions / Targets / Forecast etc.) Agree details for joint calls with key clients if applicable This can be the ideal training session too Illustrates commitment to work together 8. Selecting Distribution Partner(s) Establish a regular review process Performance against agreed actions Arranging diary dates Submitting details / requirements for Regulations Identify issues they face and agree actions to resolve these TOGETHER Review performance against the business plans / forecast Keep open and regular dialogue As is most applicable - email / Skype / telephone / visits Support them with all the issues / queries / questions they face! Develop specifics if needed for them As a safety net have an agreed exit plan for both parties after an agreed timeperiod So both parties are fully aware of what is expected of the other 9. Additional factors Some markets may require more than 1 Distribution partner If applicable need to minimise conflict / competition Separate by regions / routes to market Non Drive markets Still need the same professional approach But a practical scaled down version Some non drive markets will be welcome opportunistic add-ons Possibly make the opportunity for new distributors to approach you bymaking it clearer on the web site seeking potential distributors 10. Any Questions or queries please contactGraham Crews +44 (0) 161 215 [email protected]_crewsJoin my Linkedin Network+44 (0) 796000 1776