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1. Introduction to ITC Tools and preparation of Market Profiles Cairo, March 2018

2. Why to go global? Identify promising markets for exports Identity better import sources Access GVC Diversify and reduce vulnerability …

3. Reasons to export? To offset domestic market’s cyclical sales To achieve additional sales To extend a product’s life cycle To respond strategically to foreign competitors To achieve the success the firm’s management has seen others achieve To improve the efficiency of manufacturing equipment

4. Reasons not to Export Two major reasons Preoccupation with the vast American market Reluctance to become involved in a new, unknown and therefore risky operation Not active in international markets due to Lack of knowledge Locating foreign markets Payment and financing procedures Export procedures

5. Show and Sell Trade events to facilitate international trade pavilions Trade missions Product literature center Reverse trade missions

6. Export Marketing Plan Essentially same as domestic marketing plan Specific about Markets to be developed Marketing strategy for serving them Tactics to make the strategy operational

7. Export Marketing Plan Essentially same as domestic marketing plan Specific about Markets to be developed Marketing strategy for serving them Tactics to make the strategy operational

8. Terms of Sale… INCOTERMS Universal trade terminology developed by the International Chamber of Commerce Ex-Works Risk passes at factory door US equivalent: FOB (free on board)

9. Terms of Sale FAS Free alongside ship, port of call CIF Cost, insurance, freight, foreign port CFR cost and freight, foreign port DAF Delivered at frontier

10. Importing Ways to identify import sources If similar imported products are already in the market, visit a retailer and examine the product label If the product is not being imported, call the nearest consul or embassy of that country Use the electronic bulletin boards of the World Trade Centers

11. Customhouse Broker Independent business that handles import shipments Acts as agent for importer Customhouse broker brings goods through customs May arrange transportation for goods after they leave customs Need to know when imports are subject to import quotas and how much of the quota has been filled

12. Importing Bonded warehouse Area authorized by customs for storage of goods on which payment of import duties is deferred until goods are removed Automated Commercial System (ACS) Used to track, control, and process all commercial goods imported into U.S. Import Duties Importer must know how U.S./Canada calculates import duties The Harmonized Tariff Schedule of U.S. (HTSUSA) American version of the Harmonized System used worldwide to classify imported products

13. What do companies have to be aware of before going global? S t and a rds Competi t ion Market Regulations (health, safety etc) Di f ferent Tastes B usine s s contacts Custom tariffs Global and national market dynamics Import restri c tions What is the demand for the product

14. Key steps to get to the right target market M ark e t Zoo m (9 Ps) Panorama People Per m ission Product Price Packaging Placement Promotion Prospects M ark e t E n try Key minimum requirements D i f feren t ia t ion opportunities Develop a winning value proposition Identify your target market Understand your target market Get to the target market Market Scan Market size Market dynamism Competition Proximity Diaspora opportunity M arket access conditions Market Profile report + Group presentation

15. 1 - Market Scan: Identify attractive markets Market scanning involves comparing potential markets against various criteria to help identify a suitable market Which are the biggest and fastest growing markets for my product? What is the level of competition in those markets? What are the risks of doing business in those markets? What are the business opportunities linked to the diaspora network? What are the market access conditions for those markets?  Where should I focus further research?

16. Market Analysis Tools Trade Map: trade flows Market Access Map: custom tariffs, Non-Tariff Measures, etc. Sustainability Map: voluntary standards, etc. Procurement Map Investment Map Export Potential Map

17. Users from developing countries can access the tools free of charge Free Ac c ess

18. ITC tools are available at: http://www.intracen.org/marketanalysis Click here to create your account

19. 2 - Market Zoom: the 9 Ps P ANORAMA : What is the socio-economic situation? P EOPLE: Who are the consumers? What segments exist in this market? P RODUCT: What are the uses of the product? What are the sub-products? P ERMISSION: What are the regulatory entry requirements? P LACEMENT: What is the distribution structure like? How is value distributed? P ACKAGING: What are the packaging and labeling requirements? Preferences? P RICE: What are the prices in the market? Are there significant differences? Why? P ROMOTION: What are the best ways to introduce products to buyers? P ROSPECTS: What are possible routes to market?

20. 3 - Market Entry: Your value proposition Minimum requirements Example: Phytosanitary requirements Product quality standards, on-time delivery, competitive price Differentiation Example: Differentiate as an “ethnic” gourmet experience F i rm What do we need to do different at the firm level?

21. What is a Market Profile? Product focused: dealing with a single product or a narrowly defined group of products Limited Geographically: dealing with one market or markets that share similar features Concise: a good description of the main characteristics of the target market Practical: containing sufficient information to support exporters with the design of their export strategy

22. A Market Profile provides an understanding on where opportunities lie and how to access these opportunities. Provides exporters and trade support institutions with a concise overview of conditions for market entry and trends in a given import market. Organizes the information about the identified product and target market in a user-friendly and comprehensive framework . What is a Market Profile for? INFORMS a robust export strategy!

23. Where will we play? What is the identified product and market? Product : description, HS codes World Market : global trends, tariffs Target Market : competition, tariff faced and tariff advantage Packaging Price Place m ent Promotion Prospects Market Profile From rese a rching trade information to market intelligence Key Minimum R e qu ireme n ts Key Differentiation Factors What will make us win? What is our understanding of the Target Market? Panorama People Product Permission SWOT A n a l y sis

24. Market Profile Structure (I) Market Screening Attractive markets Selected market for building a market profile Target Market Cha r a c te r istics Egypt’s trade performance in target market Competition in the target market Import seasonality Egypt price positioning using unit value E5 Tariff faced and tariff advantage in target market Product overview A1. Product characteristics World Production and Consumption Overview Production capacity of Egypt Global Trade Overview World Trade characteristics for selected product Imports characteristics B-3 Exports characteristics Egypt’s export performance for selected product Egypt’s export performance in the world market Egypt’s export performance relative to other products within its sector Tariff faced by Egypt in the world

25. Market Profile Structure (II) PANORAMA: CONTEXT IN THE TARGET MARKET PRODUCT PEOPLE PERMISSION PACKAGING AND LABELLING REGULATIONS PRICE PLACEMENT PROMOTION PROSPECTS SWOT ANALYSIS: MINIMUM REQUIREMENTS AND DIFFERENTIATION FACTORS RECOMMANDATION USEFUL SOURCES

26. Workshop Objectives Understand how ITC's Market Analysis Tools can facilitate trade analysis Understand the main elements involved in selecting an export market: Market Scan, Market Zoom and Market Entry Identify a product and its global trade flows. Evaluate Egypt’s positioning relative to its competitors Become familiar with different types of market access requirements applied to Egypt’s export products Identify and understand mandatory regulations and voluntary standards Combine all the steps to prepare and present a Market Profile

27. Agenda Market Scan What are attractive markets for my products? Trade flows (Trade Map) Market Access requirements (Market Access Map) 2. Market Zoom (9 Ps) & Market Entry 3. Practice: Group presentation Days 3 & 4 Days 1 & 2 Day 5 Panorama • Peopl e • Per m ission • Product Price Packaging Place m ent Promotion Prospects Minimum requirements Differentiation Value proposition

28. Are you ready ?