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Agenda • • • • What’s ICOM? What’s Europe? How EBS can help Q&A What’s ICOM? Cross Border Experience Air Liquide…………industrial gas Algoflash................... .garden fertilizer Bayer Crop Science……..agricultural Carpe Diem.......................health drink Caterpillar………….power engines Disney Channel…………TV network Dremel…………………power tools Dr. Oetker……………………food ESM Seminars………………seminars European Union…….consumer rights Ferrosan……………skin care products HSBC…………………financial services InterBay Funding......property financing Maison de la Franc………….tourism JCB..................construction equipment Miele....................................appliances Natura.......................beauty products Norpharma...................pharmaceuticals Novo..............................health program Ópticas Devlyn..................optical retail Petrobrás.............................oil Peugeot...............................automobiles Qatar Airlines………………airline Scania…………trucks, buses, engines Sanyo……………………….electronics Vins de Pays de France…….wines What is Europe? • • • • • • One trading area 456m people 308m people in Eurozone Euro as major global currency European central bank English widely spoken therefore easy to access or ……… ….more complex! • • • • • • • • 25 countries Multiple languages and cultures Local legislation within EU framework Eurozone vs the rest European vs national government tensions Popular opposition to further integration Enlargement may include Turkey Anti-American sentiment re Iraq and globalisation Relative Population Population Trends Demographics • • • • • • Fewer later marriages, more divorces Fewer children, later More births outside marriage 17% over 65 and rising More single person households Migration from non EU rising Relative Purchasing Power Employment USA – the key trading partner Cultures • • • • • • • • Cultural diversity History – internal conflict and world powers Anglo Saxon vs Continental ethos Mediterranean lifestyle vs Northern Europe Protectionist vs free traders Religious tensions Regional tensions Urban vs rural Planning for Europe • • • • • • Opportunity assessment Country selection The UK as a springboard Route to market Investment Practical matters Assessing the Opportunity • Company commitment and resource • Objective help from experienced professionals in Europe • A sound assessment process – Market information – Competitive landscape – Customer buying criteria Country Choice • • • • • Market specific factors Customer price sensitivity Competitive position Country size Central vs Western Europe UK as a Springboard • • • • • • • • Language Culture aligned to US Common entry point Flexible labour laws Good Intellectual Property Protection Ready access to rest of EU £/€ not an issue The City The Sunday Times The Sunday Times March 12, 2006 UK as a Springboard • The last two years have been sensational. London is no longer the second city. Right now it is as fast as New York.” James Cayne, Bear Stearns • “People go to Tokyo to do business in Japan, they go to New York to do business in America, but they come to London to do business with the rest of the world.” Jeremy Isaacs, Chairman Lehman Brothers Europe and Asia The Times The Times March 20, 2006 UK as a Springboard • “Hundreds of American companies are hoping to join the Alternative Investment Market in London to avoid the heavier regulatory environment in New York” London City Lawyer • “London is becoming more attractive for some American companies because of Sarbanes-Oxley” Michel Peretie, Chairman Bear Stearns Route to Market Options • • • • • • Sales Agents Importers/Distributors Joint ventures Licensing Acquisition Company start-up Sales Agents • • • • • • Direct shipment to end customer Title remains with principal Cost effective Quality Maximum control Appropriateness dependent on industry Importer/Distributor • Local title and stockholding • Established route to market • Distributor likely to be well known to customers • Client competes with other principals • An extra margin Joint Venture Partner • Need to have common objectives • Clear understanding of partner roles and long term position • Control? • Useful where local manufacture important Licensing/Franchising • Need for compelling product or service • Commercial support • Low risk but low return? Acquisition • Resource intensive • Target availability • Well developed corporate finance infrastructure • All major US investment banks represented • UK as centre of private equity industry Company Start Up • • • • • Human and physical assets required? Investment Recruitment Time scale to profitability Advisors About EBS • We help companies develop profitable multi-country or single market businesses in Europe with a flexible menu of marketing services, including the identification of distribution and sales partners • EBS is a European Marketing Services Group staffed by people with an impressive record in European marketing • With well-established links across the key European markets, and partners in the USA, EBS gives businesses of all sizes the power they need to grow Who We Can Help • Companies planning first steps in geographical expansion • Companies operating in several European markets who want a highly responsive and integrated service across Europe • Companies with a pan-European concept who wish to establish “early mover” advantage in several markets over a short time scale How We Can Help • • • • • • • • • Research Legal advice Office space Staffing Financial advice Distributors Franchisees Industry advisors Business and marketing advice and support How EBS works Process Definition Plan Development First Stage Audit Research Decision Support Tools Competitors Situation Analysis Market Customer Voice Profiling Countries Segmentation No-Go or Go Forward Plan Development Research Decision Support Tools Competitors Situation Analysis Market Customer Voice Profiling Countries Offices – staff base in country Segmentation Plan Development Research Decision Support Tools Competitors Situation Analysis Market Customer Voice Profiling Countries Research Segmentation Business Plan Development of Strategies & Tactics Timeline Sales & Marketing Communications Plan Offices – staff base in country Budgets Implementation If research gives a comfort to launch in country EBS will: 1. Audit $30,000-50,000 2. Initiate research 3. Work up business plan for each country 4. Plan out all service supports 5. Budgets for year one and two 6. Work up complete sales/marketing communication plan Total Price: $150,000 - $200,000 - all depends on size of plans InterBay Funding EBS’s role • Help to launch InterBay in the UK in May 2006 • Activities have included: - Analysing the UK market in depth - Finding office space - Staff recruitment - Extensive market research - Identifying industry experts - Business and marketing advice - Adapting US advertising InterBay Funding EBS’s role cont’d… - Advertisement placement - PR launch and on-going campaign - Producing marketing materials - Web-site adaptation - Corporate video production - Creation of exhibition stand and event co-ordination - Advising at all business levels until the UK is fully formed The Main Pitfalls ….according to the American Chamber of Commerce: • Under-estimating the cultural differences – “you can’t just snap your fingers and expect to get an appointment” • Not understanding the environment – “many US companies falter because they don’t have access to a local network that can help and support them” • False expectations – “a lot of American companies make the mistake of believing that entering a country that speaks their language is a piece of cake… it isn’t! For one thing American and English are two different languages…” The Importance of Local Knowledge It seemed like a simple translation! “Pepsi brings your ancestors back from the grave” Pepsi ad slogan ‘Pepsi Comes Alive’ as originally translated into Chinese “It takes a virile man to make a chicken pregnant” Purdue Chicken ad as mistranslated in Arabic The European Players Inigo Muguiro, Spain Klaus Kitzmueller, Germany Uffe Just, Scandinavia Patrick Walhain, France Terry Stannard, UK Key Insights • You need a working knowledge of the various European markets in order to successfully expand into Europe. • A solid plan in critical: – An understanding of what is required to launch your product in Europe – A feel for the European business climate – A feel for some of the benefits as well as pitfalls of doing business in Europe – Follow an established process • Utilizing an experienced network of European businesses located in the markets you are targeting will help to ensure your success. Questions & Way Forward THANK YOU