Approaches to International Business Development In Europe & Go-To-Market Basics

Transcription

1 Approaches to International Business Development In Europe & Go-To-Market Basics Mark de Vries EuroDev Group Jeff Coffed Harris

2 Market Entry- Do s and Don ts For Europe 6/18/2015

3 How to become active in the successful 25% 75% of the worlds purchasing power is international BUT 75% of the product launches are not successful 75% of companies entering the EU market quit within 2 years 75% of the initial international hiring's are unsuccessful 75% of the international alliances fail 6/18/2015

4 Exporters are more successful Sales grows faster More product development More value through Taxes Profit diversification Operating flexibility Reduce Cost of capital More competitive in home market Attract better talent More revenue growth ( ) REVENUE GROWTH 37% 7% Exporting Non-exporting Source: Taylor and Francis (2007); Creal et al. (2011); Brookings (2011) 6/18/2015

5 Lame excuses for IBD 0% 10% 20% 30% 40% 50% 60% Finding a good local partner Payment risks Laws and government regulations Entry barriers Market intelligence Source: Fenedex (2012) 6/18/2015

6 Real barriers IBD Culture / Language differences Communication between facilities Management s lack of knowhow and skills Exchange rates Developing effective structure Logistics Source: Prater and Ghosh (2005) 6/18/2015

7 The evolution, why the change? Initial strategies 1. Locally hired management 2. Alliances with distributors 3. Direct exporting 4. Own sales office 5. Subsidiaries 6. Licensing Current strategies 1. Locally hired management 2. Subsidiaries 3. Own sales office 4. Alliances with distributors 5. Direct exporting 6. Foreign acquisition Source: Prater and Ghosh (2005) 6/18/2015

8 Why Europe? 1957, 6 member states 2014, 28 member states 830 million inhabitants 23 official languages Estimated 30% share of the world's nominal GDP Americas largest export market Expanding market 6/18/2015

9 Elements of Entry Strategy (1) Assessing products and foreign markets: choosing the target product / market (2) Setting objectives and goals (3) Choosing the entry mode: export, contractual arrangements or investment (4) Designing the marketing plan: price, promotion, distribution, etc. (5) Control System: monitoring operations revising entry strategy Entry operations Target market Source: Root (1994) 6/18/2015

10 6/18/2015 Business Development Landscape

11 Experience 2 years to reach break even point 1 year to get a strategic partner 1 year to get a distributor successful 7 months to acquire a company, 8 to sell 2 months to recruit a person, 4 months before he/she starts Reps do not cover the market, distributors need 35% After 2 years an EU sales operation costs 10% of sales Shipping costs are 8% of turnover 6/18/2015

12 ACT Global Be Yourself Thank you for your attention!

13 Marketing in Europe Jeff Coffed Senior Product Marketing Manger, Harris harris.com Harris Proprietary Information Marketing in Europe 13

14 Marketing in Europe? Business is booming! Now what? Doing business well in the U.S. doing business well in Europe Harris Proprietary Information Marketing in Europe June 6/18/ , 14

15 Why Market in Europe? European Union (EU) has 500 million consumers EU s 28 members account for 16% of world imports and exports EU accounted for 22.7% share of the global GDP in 2012 There were $43.8B in U.S. Exports to Germany in 2013 In 2013 France was the world s fifth-largest economy Gain Access to New Revenue Opportunities Harris Proprietary Information Marketing in Europe June 6/18/ , 15

16 Role of Product Marketing Strategic marketing at the product / product line level Focuses on understanding the market, needs and customer set Develops positioning, messaging and competitive differentiation Ensures the Sales and Marketing teams are aligned Represent the voice of customer in the development process Acquire Deep Market Knowledge to Develop Strategic Direction Harris Proprietary Information Marketing in Europe June 6/18/ , 16

17 European Market Dynamics Varies from country to country Be aware of cultural differences The future s bright, the Future s Orange telecom ad in Northern Ireland Paper sizes are different Acknowledge other countries holidays and seasons How do you refer to dates, measurements, etc. Translations Languages vary Make room for translations Don t translate word for word Have a native speaker review translations Stay away from idioms Avoid a Pan-European Approach Harris Proprietary Information Marketing in Europe June 6/18/ , 17

18 Go To Market Considerations in Europe Who is doing your selling? What tools do your sales teams need? When possible communicate in a prospect s native language, but Correspondence translations: one size does not fit all When in Spain, write in English (unless your Spanish is impeccable) In Italy write in Italian for priority attention > Web pages How about simple SEO for existing pages Use misspellings for meta tags (colour vs. color) Format the date correctly Different sites for different countries (.de for Germany,.fr for France, etc.) > What s in a name? Hitachi IKEA Fartfell children s work bench Harris Proprietary Information Marketing in Europe June 6/18/ , 18

19 Get to Know Your Target Why is gaining VOC/VOM crucial? Critical for product development (steering wheel) Helps plan GTM (understanding customer need, pricing, terms) Know required certifications (RoHS, CE) Documentation and translations (including software, interfaces) How do you get VOC / VOM data? Do your research primary and secondary Qualitative and quantitative approaches Through partners and sales channels Focus groups Knowing Your Audience Quickens Your Ramp to Success Harris Proprietary Information Marketing in Europe June 6/18/ , 19

20 Summary Who gains market knowledge and develops strategic direction? Be aware of market dynamics Avoid a pan-european approach Product development benefits from knowing market preferences Be careful with translations Know the market in your Go-to-market Bringing Your Company to a New Geography is a Business Challenge and a Human Endeavor Harris Proprietary Information Marketing in Europe 6/18/

21 Thank you! Questions?

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