Export Planning How to write an international marketing

Export Planning How to write an international marketing plan Chapter 4: Country Analysis and Selection Internationalisation of the firm Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Learning objectives (learning tasks) Ch. 4 At the end of the chapter you are able to: 1. 2. Describe three phase filter – model as an approach to analyse and select foreign countries/markets; Explain the criteria of the first filter: the pre-filter which provides a rough scan of the market; 3. Explain the criteria of the second filter: filter 1 which provides a detailed analysis of the DESTEP environment of potential countries; 4. Explain the criteria of the third filter: filter 2 which provides a detailed market analysis of the most interesting countries/markets; 5. Prepare a proposal for choosing which country(ies) to start the market entry strategy with. Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning IKEA case Country Year Number of Stores Country Number of Stores Sweden Norway Denmark Switzerland Germany Australia Canada Austria The Netherlands France Belgium USA UK Italy Hungary Poland Czech Republic Slovakia Finland Spain (mainland) China (PRC) Russia Portugal Japan 1958 1963 1969 1973 1974 1981 1976 1977 1978 1983 1984 1985 1987 1989 1990 1991 1995 1996 1998 2000 2004 2006 16 5 4 6 40 3 11 6 11 18 6 29 13 13 2 7 4 1 2 9 4 8 1 2 Australia Greece Hong Kong Iceland Israel Kuwait Malaysia The Netherlands Romania Saudi Arabia Singapore Spain Taiwan Turkey United Arab Emirates USA 2 2 3 1 1 1 2 2 4 4 1 2 1 Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Country Analysis Example PUMA Target: South America 12 countries Middle and low level of economic development Unstable political and economical situation in most countries Lack of information about markets Non-English domestic resources Source: P. Kabanov a. o. , students HAN University Export Planning Institute _II_BPM Joris Leeman© , 2010

Pre-Filter Selection FACTORS: Human development; Environmental (disaster) factors; Import duties and sea delivery cost Football association presence Source: P. Kabanov a. o. , students HAN University Export Planning Institute _II_BPM Joris Leeman© , 2010

Filter 1 Selection FACTORS: Political risk Social structure GDP growth and size Consumption Exchange rate Inflation Ports information Source: P. Kabanov a. o. , students HAN University Export Planning Institute _II_BPM Joris Leeman© , 2010

Filter 2 Criteria Weight Argentina Brazil Chile Potential market size (population) 0, 2 21, 930, 540 99, 327, 027 9, 786, 759 Potential market size (value), billion $ 0, 2 26. 38 73. 95 12. 50 Inflation direction 0, 1 moderate growth stable Import duties 0, 2 20% 35% 6% National football team sponsor 0, 1 Adidas Nike Brooks Main competitors representativeness 0, 2 6 10 6 Sum of weighted score 1, 8 1, 7 1, 8 Rank by sum 2 1 2 Result BEST First country for expansion in South America is Brazil Source: P. Kabanov a. o. , students HAN University Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Institute _II_BPM Joris Leeman© , 2010

Export Planning Chapter review questions (10 min. ) 1. What are three steps of the Export Audit – phase? Name the steps and explain them. 2. Explain the three phase filter-model for country analysis and selection 3. Explain the criteria of the filter-model per phase. 4. What is a BERI-analysis / index? Explain and motivate your answer. 5. How could you apply the GE – matrix for country selection? Export Planning Institute _II_BPM Joris Leeman© , 2010