US Turkey Market Perception Survey Prepared for the Turkey

US/Turkey Market Perception Survey Prepared for the Turkey – US Business Partnership Alliance Presented by Robert Otto Director CARANA Corporation www. carana. com August, 2006 1 a

AGENDA • • Overview, Objectives High Level Summary of Survey Questions Overall Themes that Emerged Where to Go for More Information 2

OVERVIEW • Rapid Investor and Market Perception Survey (of US firms) for these Markets/Products: – Automotive Components – Software Development – Marble/Natural Stone – Furniture – Lighting Fixtures • Interviewed 75 leading US firms/15 in each sector/product group. • Where possible, interviews were held with international players currently doing business with Turkey, or who were familiar with Turkey. 3

Survey Questions • What are current market trends (volume, sourcing, sales channels, buyer preferences, and industry developments)? • What are industry success factors? • Perceptions in the US of Turkish firms and especially SMEs – Their ability to meet buyer needs, international competitiveness? • Given market trends and industry perceptions, what are realistic opportunities for Turkish SMEs to penetrate and/or expand their market presence? 4

Emerging Themes from the Surveys Contributing Factors to Export Costs • Reduce Information Gaps in the US Market • Those who know Turkish Partners are Impressed • Need to Identify and Develop Niche Markets INSERT GRAPHIC TO • Marketing will be Key to Success for Turkish Firms ADD MAP • Continuously Improve Quality, Costs, and Delivery • US Market Not Always the Best Fit for Turkish SMEs MAP IS 6. 17” TALL • SMEs Might Need to Focus on Collaborating with/Marketing Through Larger Turkish Firms 5

Reduce Information Gaps in the US Market • Turkey largely an unknown in terms of potential to be a supplier/player within several of the markets surveyed. • Turkish firms were often described as “invisible” or “off the radar screen”. • Turkish Industry (for sectors surveyed) needs to “get the word out” or show that “Turkey has a story to tell”. • Concerted, collaborative promotional campaigns in the US. • Regular participation in key industry-specific forums in the US. 6

Strengths • Modern Industrial and Knowledge Centers • Excellent Education/Training Facilities • Large, Well-Trained Workforce • Sharply Increased Domestic Access to Telecoms Facilities • Where Known, Turkish Products are Regarded as High Quality with Excellent Workmanship • Where Known, Turkish Partners are Viewed as Mostly or Strongly Reliable 7

Weaknesses • • Relatively High Cost of Labor, Energy Turkey Will Have to Adapt to US Market Needs Language Barrier (Americans Mostly Monolingual) American Business’s Concern about the “Neighborhood” (Iraq, Syria, Iran, Israel) • Turkey is an Unknown Quantity in Many Sectors 8

Opportunities • Reduce Intermediation Costs • Export Higher Value-Added Products • Continue Growing the Knowledge-Based Labor Segment • Get the Word Out About Turkey’s Goods and Services (in a Focused Way) • Build Sector Representation to US Partners • Turkish Diaspora/Chamber (www. turkishuschamber. org) 9

For More Information • For More Detailed Information… – http: //traderoots. org/turkeydetail. asp • To Receive Copies of the Surveys… – Email botto@carana. com and specify sector 10