Export
Issue No. 43 - October/November 2008
The Olympic Approach to Exporting
by Penelope Herbert
Your approach to exporting should mirror the way national Olympic committees work says Patrick Baker, MD of sales and marketing consultancy Patrick Baker and Associates.
“Very few nations enter every event,” he says.
“In fact, most decide which sports to compete in, based upon their likelihood of success.”
Patrick suggests two key factors are taken into consideration by each committee, namely: in which events do our athletes (products) have natural ability? How likely are our athletes to succeed against their competitors in each event? It follows that considering these two factors makes it easier to invest prudently in selected events. Patrick believes exporters should take the same approach for the best chance of success, both in terms of selecting markets and export partners. At a recent Exporters’ Club workshop Distributor Recruitment and Management, Patrick urged participants to invest more time researching markets and understanding price points, costs, barriers to entry and the total potential of selected regional markets to avoid costly mistakes and wasted resources.
“Not all interstate or export markets will be profitable or viable for all products and services,” he says.
“We have many examples of SMEs who have been banging their heads against the proverbial brick wall in markets where they really do not stand a chance of being successful. The trick is to evaluate the potential of the different markets and to target those markets that are most attractive.”
Initially, a simple retail price survey will give a quick indication. If retail prices for your category in a market are too low to absorb freight and return sustainable profit, it is wise to look elsewhere. If not, you have identified a market worth further consideration.
When is a market not a market?
Deciding how to carve the world into manageable markets can be a little daunting. Patrick recommends taking a regional view of export mar...
