International Marketing 101 - how and why

The hows and whys for marketing your product service in international markets

1. Going International – A Perspective
ANAND KUMAR PADMANABAN
COO, Witmer Health
[email protected]

2. It’s an Interconnected World
These American Products are in India
These Indian Products are in America

3. Overview
•How do startups move
their products from
one region to another
and What are some of
the key criteria to look
at ?
•What are some of the
key success attributes
to consider when you
do market analysis ?
•How do you build the
right channels, and
build a brand and
build up market
position?
•What are some of the
tools and frameworks
you can use to get
that accomplished ?

4. Key Aspects For A Successful Startup
A business needs many components to help it succeed - employees, financial
strength, research and development and, naturally, a product or service.
Marketing philosophy is needed in running business - focused on understanding,
creating, communicating and delivering customer related values, that is, those needs
and wants which customers wish to see in the products and services they consume
Satisfied customers are essential if a business is to thrive but without customers a
business will not continue to exist.
Marketing‘s task is to find and retain customers for the business, whilst working with
other functions within the business to achieve this efficiently and effectively.

5. The basic
business -
customer
transaction

6. The Model Of A Successful Startup
A Perfect Match

7. Key Challenges
Shorter product life
cycles
Diminishing brand
value
Smarter and more
demanding customers
New-technology
enabled distribution
channels
Increased pressure on
prices and financial
results.

8. Customer Needs, Wants, JobsToDo
Needs relate to the basic
requirements which we, as
human beings, need to
survive. Thus, food, water,
shelter constitute our basic
needs.
Our wants, in terms of
marketing, are the wide
range of products and
services which we desire for
whatever reason.
Customers buy products
and services for all sorts of
reasons which reflect their
own values.
It may be because the item
is functional (buying things
for what they do- water
bottle) or symbolic (buying
things for what they mean-
iphone )

9. The Broad Plan
UNDERSTANDING
CUSTOMER
CREATING
CUSTOMER VALUE
COMMUNICATING
CUSTOMER VALUE
DELIVERING
CUSTOMER VALUE

10. International
Marketing
International marketing can be
defined quite simply as 'the
performance of business
activities that direct the flow of
a company's goods and services
to consumers or users in more
than one nation for a profit

11. The various
definitions
•Exporting a consignment of goods
–involves transportation, packaging, labelling,
documentation, adherence to relevant technical
standards, insurance and payment.
–The focus of the business relationship is on the
intermediary who is purchasing the goods
•International market entry
–typically, a company will primarily be a domestic
operator with only occasional sales going to
other countries.
–If sales to international markets significantly
increase, the company may adopt different
marketing strategies for each international
market, facilitated through international
subsidiaries.
•Global marketing
–a company has recognized that customers
belonging to similar segments exist in a number
of different national markets.
–As a result, marketing activities are directed at
standardizing as much as possible of the
product or service and reaching the customers
with similar communication, pricing and
distribution strategies.

12. Some Ground Work
Understanding
Understanding the
customer
•Belief systems
•Aesthetics
•Value of time
Creating
Creating the
product
•Country of origin effect
•Pricing
•Legal
Communicating
Communicating
with the customer
Delivering
Delivering to the
customer

13. Many Reasons For Internationalization
Excess capacity Having a unique
product
Having a
company specific
advantage
Having a
marketing
advantage
Being driven by
the owner /key
decision-maker
A desire to
spread cost and
risk.

14. Key Aspects When Entering New
Markets
Tariff Rates
Does the product need to be adapted ?
Marketing
Logistics costs

15. How will you know if you are ready ?
Exceptional domestic
demand
Demonstrated
international market
A unique product that is
difficult to duplicate
abroad
Secure capital ,
operations and team to
operate overseas
Strong relationship with
creditors
An understanding of
global markets and ability
to divert resources to
those markets if needed

16. Market Entry Strategies
EXPORTINGLICENSINGACQUISITIONJV
FRANCHISING/PARTNERINGTURNKEY

17. Market Analysis

18. Key Factors To
Decide
•Technical
perspective
•Organizational
perspective
•Personal
perspective
•International
perspective
•Cultural

19. Other Key Factors To Consider
Level of international
experience
Degree of integration
into existing industry
models
financial resources
available
Nature of the business
sector
How internationalized
the industry sector is
How internationalized
the host market is
What the host market’s
potential
How far the market is
geographically or
physically distant
How similar the
potential market is to
the one already served
in the domestic market.

20. Key Market Questions
What is the nature
of the market we
are operating in?
What are the main
challenges for
customers in this
market?
Do these challenges
open up new
business
opportunities?
What is the
potential market
size?
Is the market
stable, growing, or
shrinking?
What is potential
market share? Can
we capture it ?
Who are our
current customers
and what do they
buy?
Who are our
"natural" customer
segments?
What are our main
products or
services?
What is our
position in relation
to the competition?

21. MAIN POINTS TO ANSWER
What is the current market
situation?
What could be the future
market situation?
What are the market
perspectives into the future
for your type products ?
Which strategic options
(short term, mid-term and
long term) are available for
your product ?

22. Attractive Market ?
How big is
the market?
How fast is it
growing?
Market
Growth CAGR
Market
Profitability
Market
Trends

23. Positioning and Value Proposition
What market position is most important? (Price or
value or both or brand or ?)
What are the most meaningful value
propositions? How does this add value?
What are cultural aspects around this ?
Value Proposition Vs. Customer Segment

24. Differentiation
How can I have differentiation?
Which products sell well in the
market ? what is their selling
model ?
How does the business
model take advantage of
differentiation?

25. Competition
Who are the
competitors and
how are they
different?
How can a new
product gain
competitive
advantage?
Competitor
Comparison
Competitor
positioning
Complementary
products in the
market
Substitute products
in the market
Price points of
competitors

26. Channel and Partnerships
What distribution channel is
best? (is it direct
sales/intermediaries/agents
or through
distributors/retailers )
Which partners should
potentially be recruited?
what are the cultural
aspects , trade tariffs and
legalities around this ?

27. Tool - PESTEL Analysis

28. The Analysis Process
PRIMARY SOURCES OF
INFORMATION
SECONDARY SOURCES

30. Market Research
Market
Research
Offline
research
Top Down
Bottom up
Online
research
Industry
experts

31. How Do I Go about It ?
DO I DO INTERNATIONAL
MARKETS MYSELF ?
DO I TAKE EXTERNAL HELP ?

32. Doing It Myself

33. Advantages To Doing It Yourself
Knowledge
improvement
Investment
spread
Constraints
Can be
planned
Strategic
independence
Culture
management

34. Key Factor 1 : Market
Attractiveness
•Hi / Med / LoEstimated Market Size
Meets Our Needs
•Hi / Med / LoOperating Margins Meets
Our Needs
•Hi / Med / LoLevel Of Competition
•Hi / Med / LoAbility To Differentiate
For us
•Hi / Med / LoCurrent and Future
Positioning for us

35. Key Factor 2 : Market Fit & Feasibility
To Organization
•Hi / Med / LoAlignment with our
current Capabilities
•Hi / Med / LoAlignment with defined
KBO’s
•Hi / Med / LoLevel of coverage for
customers challenges
•Hi / Med / LoInvestment Level
Required is manageable
•Hi / Med / LoRisk is manageable

36. Analyse & Decide
Deep dive into the
High Potential
option and analyze
1
High potential will
drive immediate
growth in the next
few years with high
impact
2
Medium will drive
some impact in
next few years and
deliver sustained
growth
3

37. Taking A Partner
Approach

38. Approach Types
Externally Focused
Acquisition
Merger
JV
Strategic Partnership

39. Inorganic –
Strategic
Alliances
•Equity alliancesinvolve the creation of a
new entity that is owned separately by the
partners involved. The most common form
of equity alliance is the joint venture,
where two companies remain independent
but set up a new company that is jointly
owned by the parents
•Non-equity alliances-Non-equity
alliances are often based on contracts.
•One common form of contractual alliance
is franchising, where one company (the
franchisor) gives another company (the
franchisee) the right to sell the franchisor’s
products or services in a particular location
in return for a fee or royalty. McDonald’s
restaurants and Subway are examples of
franchising.
•Licensingis a similar kind of contractual
alliance, allowing partners to use
intellectual property, such as patents or
brands, in return for a fee.
•Long-term subcontracting agreements are
another form of loose non-equity alliance,
common in automobile supply.

40. An Example - Process Of Internationalization
EXPORTING BEGINS VIA
INTERMEDIARIES
THE FIRM BEGINS TO
EXPORT MORE DIRECTLY
AND ENTHUSIASTICALLY
THE FIRM MAY
ESTABLISH A PRESENCE
IN THE EXPORT MARKET
IN THE FORM OF A
MARKETING OR SALES
OUTLET
FINALLY, AT THE MOST
ADVANCED POINT, AN
OFFICE/
MANUFACTURING
PLANT IS ESTABLISHED.

41. Some Key Founder Decisions
Available resources
whether human or
financial
Having the time to
devote to
international
activities
State of the market
Getting paid
exchange rate
volatility
Need far and cost of
insurance
Getting the right
(cheap) information
Cost of marketing
activities Political risk
Suitability of the
product/service Cultural differences.

42. Key Operational Factors
Speed of entry
required
Financial resources
available Flexibility required
Degree of risk
aversion
Period over which
the investment is
expected to
provide a return
Degree of
marketing control.

43. Challenges
Building distribution networkBuilding
Designing Market entry strategies Designing
Identifying market Opportunities Identifying
Dealing with political and commercial risks Dealing
Obtaining information on different alternatives Obtaining
Securing working capital and financing Securing
Collecting foreign receivables Collecting
Providing after sales customer service Providing
Dealing with tariff barriers and quotas Dealing
Dealing with export laws, regulations and procedures.Dealing

44. Look For Favorable Factors
Friendly diplomatic
relations
Trade pacts and
agreements
Export subsidies and
support (including
information
provision, tax breaks)
Low trade barriers
(tariffs and other
trading restrictions)
Stable political and
trading environment Good infrastructure.

45. Success Factors
Market
selection
Product
strategy
Packaging
characteristics
Pricing strategy Credit strategy Communication
strategy
Distribution
strategy
After sales
support
Experience of
staff.

46. Reducing The Odds Of Failure
Detect all Go-to-Market risks firstDetect
Prioritize all Go-to-Market RisksPrioritize
Work these risks from the most important one downWork
Try to manage these risks until it’s okTry

47. Sources
Talk to the ecosystem
Buyers
Users
Analysts
Industry media
Competitors
VCs
Where can you find them?
Your peer network
Linked-in/ social media
Online communities
Events and conferences

48. Successful Strategy ~ Pilots
Making it work on small scale first 90 day plan
“Spend a little to learn a lot” strategy
Run a pilot product launch first
Focus on sharpening the business concept and
apply lessons learned

49. In Summary
–Would You Want Enter the
Market (alignment with
company strategy)
–Should You enter the market
(Decision Tree Analysis –
Market Attractiveness –
Market Size, Market Growth,
Market Profitability,
Competitors (Key success
factors, weightage,
distribution, customer focus,
Technology) and Regulations
–Could You enter the market
(Finance, Skills, Resources,
Compliances)
–How could You enter the
market (Subsidiary/JV /
franchising/agents etc.)

50. Thank You
Questions / Clarifications
[email protected]