Market Entry, Sales and Distribution
You have done your homework – or we have done it for you. You know about the market that you would like to enter, the facts about your industry. You compared the features and benefits of your product with competitive products. You have identified your targeted customers/market segments. You have studied how your competitors market, sell and distribute their products/services. You have clearly identified all major barriers to market entry.
Now you want to develop a market entry strategy. There are several alternatives. Our service: We can help you review and select the most suitable strategy for you and your product/service taking your resources and strategic intent into consideration:
Licensing-out
If you possess intellectual property (copyright, trademark, patent, related rights) for products/services that are relatively easy to produce, licensing-out is an interesting option.
Our service
To help review your options and find/select potential licensees. As your income will greatly depend on your licensee’s business success, this choice is critical. You would also benefit from working with a leading intellectual property management consultant we are connected with.
Exporting – indirectly
You will have to find and sell to a domestic partner who represents re-seller or customer in a foreign market.
Our service
We could help you find such intermediary by reviewing any suitable candidate active and successful in a target market.
Exporting – directly
You would handle every aspects of your business. This is a great way to improve profit and stay close to the market.
Our service
We can help guide and practically assist you if you also commit time and effort to maximize profits for long term growth.
Piggyback
May help you distribute your products in a foreign market while saving marketing and distribution costs. How? You will find a domestic partner who serves the same market segment/customer in the foreign market that you target. His and your product line(s) are complementary. The personal chemistry between you and the piggyback partner is fine.
Our service
We will help you find this partner by reviewing all possible partners based on their distribution services and performance in your target market.
Manufacturers Representative
May add value to your marketing process. The right MR knows the territory and the potential customer. You would benefit from a trustful relationship that has been developed over years. Working with a carefully selected MR could be the best strategic sales solution for you. But outsourcing the sales function does not mean that you are “off the hook.”
Our service
We will help you find and select the right MR for your product. We will prepare your organization for working with an MR organization. This will help you develop a mutually beneficial relationship for long term stability, establishing realistic goals and achieving your goals.
Agent
This frequently misunderstood term is often used instead of “Sales Representative or MR. But in Commercial Law, an “Agent” is a person who is authorized to act on behalf of you, the “Principal” to create a legal relationship with a Third Party. The Principal must give or be deemed to give the Agent the authority to act. This can be problematic because of “implied authority” which can be more than intended. Therefore, companies in the USA usually use the term “Representative” instead of “Agent”. If “Agent” would be your preferred alternative, you would benefit from working with an experienced attorney. He will make sure that your agent (or representative) would not have the legal authority to obligate you, the Principal.
Our service
To help identify, review and select a suitable agent. If you consider appointing an Agent, you would also benefit from working with an experienced commercial lawyer who would see to it that the representative or the agent does no have authority to obligate you, the principal.
Distributors (retail, wholesale)
Typically purchases and sells your product at his own account, provides warehousing and transportation to retailers or end customers. Distributors may help you establish an immediate business presence but they can also act as a barrier between you and your end customer. Selecting a distributor and entering into a long-term relationship is equivalent to hiring a highly paid key executive. You want to be extremely careful.
Our service
Identifying, reviewing, selecting candidates based on an agreed upon “ideal distributor profile”. But, as we learnt the hard way: You can’t simply find (suitable) Distributors, – you have to “make” them. We will not only help you find but “make” your most suitable Distributor. We will help you develop a productive relationship based on mutually agreed goals and strategies. We will propose to introduce a goal-setting-goal-achieving process (MOSA) that has proven to be a stable basis for a trouble-free relationship based on mutual understanding and trust.
Dealer
This term is often used interchangeably with “Distributor” or “Agent” but a dealer is an individual or firm that buys goods from the manufacturer or from a distributor for wholesale and/or retail reselling. Unlike a distributor, a dealer (usually) is a principal and not an agent. Whatever term you or a third party may want to use, make sure that you have a clear understanding and a common definition.
Our service
As under Distributor(s). Based on an agreed upon “Ideal Dealer Profile”, we will help you find (and “make”) dealers that are truly committed to selling your products/services. We will introduce a simple yet sophisticated process (MOSA) that will help you and your dealer(s) to agree on realistic objectives, develop distinct strategies and action plans that are key to efficient communication and cooperation.
Own business presence
Will have the great advantage that you will be recognized as a national/local company. This is particularly important in the USA. American firms and authorities do not or do not like to deal with firms/partners located outside the USA. Not having your own business presence will often be used as an argument against you by your national/local competitors. It will be interpreted as a lack of commitment. Being “on the ground” in a foreign market will help you to better understand and adapt to a foreign culture. This in turn will enable you to develop direct contacts and relationships with your customers and re-sellers.
Our Service
We will help you to completely understand the considerable challenges that your firm will face. We will help you review these challenges in light of your resources. Once you have decided to follow this route, we will help you find the right location and contacts. We will help you choose the most suitable distribution channel for your product/service. We will find you partners such as MRs, Distributors or Dealers. We will help you hire your most important “first (wo)man on the ground.”
We are very experienced in setting-up businesses in foreign countries and will guide and assist you throughout the process. Most importantly, we are there after you have landed to make sure that your adventure becomes a success. We are business practitioners with many years of experience in start-up companies in foreign countries. Entering a foreign market can become a nerve-wrecking experience. You may want to choose your partner carefully.
Own sales force
Own sales force could be a suitable strategy for products with relatively large sales potential to a clearly defined, limited market or customer segment. Focusing on relatively few key customers will help you keeping your costs low. Direct sales will eliminate the margin due to re-sellers. Also, direct sales eliminates “filter” and delay during communication with re-sellers or customers. It is a very valuable experience.
On the other side, you will be responsible for everything yourself: marketing (promotion), packaging, labeling, translation, customer service and – last but not least – collecting accounts receivable.
Our service
We will review with you alternative strategies designed to minimize risk and improve your chance of success. We will work with you to find and bring on board the most important and, at the same time, most undervalued resource: good salesmen. We are former salesmen. Stay away from “consultants” who have never sold anything but themselves.Merger with or acquisition
Merger with or acquisitionof a suitable firm may provide immediate market access and coverage. M or A are alternatives when products/services are complementary or when there are potential success factors at play. M&A are difficult, sensitive activities that require competence and confidentiality. They are particularly challenging across cultural borders.
Our service
To review and investigate potential target firms you may be interested in merging with, buying or selling to. We will prepare you for negotiations and will guide post-merger integration of both firms or business units. Again, our many years of practical business experience are of great value to our clients. We know how to manage (national, business, corporate) cultural differences with success. We have done it – not as advisors but as practitioners. We will work with experienced legal and financial consultants. But our emphasis will be on people, organization, and practical aspects of integration to ensure performance and long-term success.