SIB650 Export Marketing Plan, Project Part 3 (25%)

Marks breakdown Total Marks /10 references

Executive Summary a) Very brief overview of the firm and your chosen product line. A few strong points and a few weak points about your chosen country/region (from Part 1 and Part 2). 5 b) A few highlights from this report. For example, you might outline your product positioning and pricing strategy. Then you might outline which channel members/intermediaries will help you to sell this product. This summary will vary for every report, depending on your particular circumstances. You should end this summary with a financial overview of when the plan will become profitable and how much profit you expect it to 5 generate in the first few years. NOTE: this entire executive summary should not exceed 2 pages, doublespaced Section 5: Your Recommended Entry Strategy For this section, select one of your markets studied, and complete your final Entry Strategy for that market. Selected Entry Strategy /15 5 Explain fully the reasons for selecting your entry strategy 10 Provide supporting evidence that this will be effective Market Objectives /3 1 Outline your first year expectations for this market e.g. Market share % (include total industry size in this market), # retailers carrying product, # units sold 2 Do you want to heavily penetrate the market or get started finding a small base of customers? Target markets /4 Guide to 2 Exporting Describe your target markets (e.g. Who buys the product/service (or (ch.6) similar ones) that you propose to export- end users, businesses, MRK106 governments? Demographics? Psychographics? Industry classification?) 1 Why does your target market buy? How much do they buy? Where and how do they buy? 1 What do your buyers care most about: Price? Quality? Functionality? Design? Prestige? Safety or Security? Timeliness? Reliability? Other? Product Strategy /4 Text 1 (ch. 16) Be sure to cover all aspects of the product (including all levels of MRK106 product such as package, warranty and branding) reference Chapter 11 INB200 of text 1 INB220 What changes do you recommend be made to the product and why? Are there any special requirements in terms of: conforming to local 1 technical or safety standards? Sizes, units of sale, measurements? Labelling and packaging? Instructions? Handling and delivery? Assembly? Maintenance? After-sales service? 1 Are there any cultural considerations acting against (or demanding modification of) the product, the way it is marketed or the way it is labelled?

Product positioning Positioning statement for product launch Your products strengths vs. top competitor products o e.g. Is your product the Rolex or the Timex of the industry? o e.g. 7-up reminds us that it is the uncola with no caffeine Never had it and never will o How do you want your customers to think of your product? o Although you may consider it a wonderful offer, remember that a low-priced high quality product is rarely a profitable idea. You probably need to come up with a different positioning. Pricing strategy Examples: Skimming, Market Pricing, Marginal (page 19 of Guide), Include reasons/supporting rationale for this strategy. Pricing strategy for launch: reference MRK106 text for terminology plus page 19 of Guide Outline your main competitors final pricing for their similar products Outline all your additional/reduced costs vs. your Canadian operations (e.g. Product differences, promotion, transportation, insurance etc.) o See pricing checklist on p. 21 of Guide) this will help you to identify all the added costs you will have Reference market objectives (e.g. Penetrate market) and per-capita income (if its a consumer product) Create a per-unit price and cost summary. Show the costs for each channel member plus your own product costs. This must be consistent with the section on Intermediaries below. Dont forget any TARIFFS or TAXES added into selling price See Example below: Example: Retail price: $50.00 Retailer margin: 25.00 (assume 50% of retail price unless you have better info) Distributor margin: 7.50 (assume 15% of retail price unless you have better info) Import agent margin: 5.00 (assume 10% of retail price (or 15% if they do your Transportation cost: 2.40 Net to Mfr 10.10 Mfr added costs 1.05 Product costs 7.40 Net contribution 1.65 Terms of sale Incoterms- Select an appropriate incoterm. One based on a commonly used incoterm in the foreign industry or one that will allow your firm the ability to compete more effectively. Be sure to be consistent with the section on Intermediaries below. The first person to own the product in that country will be the one using this incoterm. What credit will you extend to your channel members (wholesalers, retailers) and to your end customers
warehousing/transportation within the chosen country) unless you have better info) (find real costs from home country to this country) (subtract all costs above from retail price) (calculated from research) (calculated from research) (subtract above 2 costs from Net to Mfr)

/4 1 3

MRK106 Text (ch. 13)

/8 1 1 1 1

MRK106 Text (ch. 15) Guide to Exporting (ch.5) INB345 INB355

1 3

/4 3

INB 355

Physical Distribution strategy Outline physical distribution plans (logistics) as a general overview (no specific details needed). For example, explain likely transportation selected, where it will be warehoused (city), any special considerations (e.g. Refrigerated truck) Do transportation cost estimate for input to pricing section above Note that this section must be consistent with the section on Intermediaries below Promotion strategy/development of sales leads Overview of changes needed to current materials and new materials needed, account for culture and business operational differences Describe how new sales leads will be generated and how these relationships will be maintained o e.g. If product is sold in retail stores, is it your own sales rep that called on the retail store to convince them to stock it? Will advertising play a role in the channels? Describe consumer advertising/promotion plans o Outline media selected & budget $ o Outline 1-time startup costs for initial ad/promos o Outline expected ongoing ad/promo budget (often a % of sales is used) o Outline who will pay for the ad/promo o Will sales reps be used? How many? Costs? Who pays? o What are the main messages that need to be conveyed about the product or service in terms of: Quality? Price? Unique features? Prestige? Convenience? Other? o Give an outline of some sales promotion plans you have that you think will be effective. Reference your Marketing text for many examples. Examples might include sampling, couponing, and contests. Description of intermediaries and partners Describe all channel member types desired Potential allies/partners & reasons for considering this company (e.g. Will use an agent working on commission to sell to supermarkets in ______city) Subtotal for Section 5 and Executive Summary See Section 6 below

/5 3

MRK106 INB345

/8 0.5 0.5

MRK106 SIB470

1 1 1 1 1 1

/5 3 2

Guide to Exporting (ch.2 & 6)

70

Marks breakdown Section 6: Implementation Plan and Financial Plan Key Activities List of all major activities required to be completed by firm, in chronological order o For example, one of the earliest activities of many firms will be to contact their Trade Commissioner. o When these activities have been completed, in the order shown, the company will be prepared to start selling in the selected country Evaluation criteria and process Set some target values for the first 6 months of operating the business in this country. For example, you might outline # of retailers carrying your product by month, $value of sales by month, or # wholesalers signed. This information will help you calculate your sales projections in the Financial section below. Create a report that can be filled in each month to determine if the operation is on track to be profitable or if the plan needs to be revised. Describe how the overall effort be monitored to ensure success, or get early warning that the program needs adjustment Financial Plan Create an Income Statement and Balance Sheet using the links on the right and any ACC106 material with your own calculations of costs and expected revenue. Include a complete itemized list of costs, broken out into 1-time startup costs plus annual ongoing costs. Examples of costs might include: training, travel, package re-design, market research, sales office, sales reps, manufacturing/warehousing facilities, advertising, trade shows

Total Marks

references

/20

Guide to Exporting
(appendix A)

INB345 INB355 INB365

/5 2

2 1 /20 10 ACC106 Beginners Guide to Financial Statements, Balance Sheet and Income Statement Examples /5

10

Checklist of Ontario/Canadian Govt. assistance Outline all areas where you will seek govt. assistance with your export plan. Be specific. o e.g. Will work with trade commissioner to get introductions to potential distributors in chosen country Total Marks for Section 5 and Executive Summary Total Marks for Section 6 Grade Deductions: 0.5 marks for each spelling or grammar error after the first 3 errors, to a maximum of 12 TOTAL MARK FOR REPORT

/70 /50

/120