WELCOME TO THE CBIS EXPORT MARKETING TRAINING

PROGRAMME!

EXAMPLE EXPORT MARKETING PLAN

Zorarko Investment Castings

Export Marketing Plan - EMP

August 2015
Marketing Manager

Zorarko Investment Castings

Molten Metal into Solid Solutions
Industrial zone: CBI 1971
Foundry road 14 16
1234 GO
Phone:
E-mail:
Website:

+
sales@
www.

This document will help you develop an Export Marketing Plan (EMP) for your company.
Save this template to your computer, make a copy and name this <your company name> date

e.g. save as company name EMP 24 March 2015

Please update your EMP as you go through the CBIs training programme.
In this document:

The text in the green text block contains instructions on how to complete your EMP

The text in the white box shows an example for Zorarko Investment Castings

Start writing after you see this sign:

=>

Now start writing your Export Marketing Plan!

Please remember to remove the green text block and white text block after you have finished
writing each section of the plan.

IMPORTANT:
Note that this EMP example focuses on developing exports to the EU market as this is the strategy of the
company, Zorarko Investment Castings.
However, you might plan to start exporting to your own region or to other markets. Develop your EMP
based on your own strategy and your target markets.
It might be that exporting to markets in Asia might be easier and more successful. You can still use this
template to develop an EMP focused on neighbouring countries or other target markets.

1. INTRODUCTION

INSTRUCTIONS
The introduction should include a short historic track record, the critical success factors which have brought the
company to its present status and performance (your companys reason of existence) and a brief statement on
who you are, what you do (business concept), why you do it (motivation), when and where you do it (market and
planning horizon), and how you do it (your overall strategy). The Mission statement should summarise your
company goals, your company added value, and your target market(s).

EXAMPLE
1: INTRODUCTION:
Zorarko Investment Castings is a small-medium scale Industry involved in the manufacturing of Investment
Castings by lost wax process. The company was founded in 1957 by Nico King. The company has grown steady
in the local market because of our quality products and reliability. The company is run as a family of 120
employees. Our culture and style of management is open and we stimulate the development of our employees by
improving their skills. Zorarko was the first foundry in the region that started in-house CNC machining in 1990.
Our independence of local machine shops has been one of the strengths in our company and one of the critical
success factors in growing the business to its present status. We are located Industrial zone CBI 1971 in the city
of Snits. Our company is ISO 9001:2008 certified by T Nord, Germany. Our core business is supplying casted
products with machining mainly for use in valves and pumps such as pump-housing, impellers and valve bodies.
We are specialized in stainless steel and duplex stainless steel but also supply products in carbon steel. Main
current markets served are oil and gas as well as food processing.
STRATEGY:
With our latest investments in new CNC machines and a Zeiss CMM measurement machine we are ready to
move into the high end of the market as per our overall strategy. Our medium term strategy is to extend our
current export to the EU from 10% to 40% of our total sales by end of 2016.

MISSION:
Our Mission is total customer satisfaction by being reliable partner for our customers by delivering quality
products on time at a competitive price level and by continually improving our performance.

=> Now start writing!

INTRODUCTION:

STRATEGY:

MISSION:

Remember to remove the green and white text boxes when you have finished writing this section!

2. CURRENT MARKET POSITION

INSTRUCTIONS
Describe your current market position, which is the starting point for your future international market expansion,
by using your marketing mix.
Product: Elaborate on your present product assortment: what products do you sell, what is their market position,
and what competitive alternatives are available in the market?
Place: What is your current market coverage, which distribution channels do you use, and how does that relate
to the competition?
Price: What is your pricing policy, to what extent do you apply different pricing from the competition, and how do
you apply pricing flexibility in order to promote sales (e.g. discounts, quantity offers, contractual tenders)
Promotion: Describe the promotional tools that you employ; your promotional mix (advertising, trade fair
participation, Direct Marketing, e-Marketing etc.).
People: Describe the company's policy towards social responsibility and accountability, in terms of occupational
health and safety for the workers, human rights, child labour, and to society as a whole.
Planet: Elaborate on your company's environmental awareness, policies and activities and your position on
environmental management.

EXAMPLE
2: CURRENT MARKET POSITION:
Our current market position is our starting point for our expansion into the international market.
Sales history:

Tot. sales in
Export in
Total volumes sold
Employees

2012
1,250,000
77,000
410
20

2013
1,150,000
66,000
375
20

2014
1,475,000
80,000
440
25

2015 (Forecast)
1,700,000
100,000
520
30

Product:
Our core products are cast parts and components with machining for use in valves (40%) and pumps (30%).
Other products are used in general engineering applications (15%) medical instruments and implants (10%),
textile machinery (5%).
On average 95% of our products are supplied in machined or polished conditions and 5% as cast only.
Processed materials are on average: Stainless Steel (60%), Duplex Stainless Steel (5%) and Carbon and Low
Alloy Steel (35%).
Place:
The market share in our local market is less than 5% and we cover mainly the south part of the market in

Indipakivietnaphils because of our location close to the customers. Our distribution channel is direct sales to
OEMs (80%) which are mainly foreign multinationals who have International Purchase Office (IPOs) and
warehouses in our country. Most of our products are exported indirectly mainly to the EU, USA and Japan.
Distribution channel for our products in the general engineering sector is mainly via an EU based stockholding
sourcing group which sells to OEMs in the EU. We sell our products for medical application and implants via a
Germany based agent.
Price:
Our pricing policy in the local market is cost-plus, same as all our competitors.
For recent exports we used penetration pricing on smaller projects which was successful in gaining greater
market share. In some cases we use market pricing for exports. Our prices are 30% below EU price level but
10% above China.
Promotion:
Our promotion is limited to our website which needs updates as the data is from 2002. We use a 4 page Word
profile document to promote our company during visit to customers. A company brochure was produced in 2002
but is outdated. We do not use newsletters for promoting our company and giving information on our latest
developments. So far we have not participated in any fair as exhibitor but have been to the Valve World in
Shanghai in 2004 as a visitor. Main promotion is by e-mailing and phone calls to potential customers.
People
Describe the company's policy towards social responsibility, in terms of occupational health and safety for the
workers, human rights, child labour, and to society as a whole.
Planet
Elaborate on your company's environmental awareness, policies and activities and your position on
environmental management.

=> Now start writing!

Sales history:

2012
Tot. sales in
Export in
Total volumes sold
Employees
Product:

2013

2014

2015 (Forecast)

Place:

Price:

Promotion:

People

Planet

Remember to remove the green and white text boxes when you have finished writing this section!
3. COMPANY AUDIT (INTERNAL)

INSTRUCTIONS
The company audit, a self- assessment of a company's Strengths and Weaknesses, shows strong resemblance
to the so-called supplier quality assessments as performed by buyers. A key characteristic of the company audit
is that the elements covered are all controllable by the company management. At this stage, you should describe
the Strengths and Weaknesses of your company, related to the expansion strategy. You can use the 5-M
method: Men, Means (resources), Methods (management), Machines, Measurables (marketing impact,
customer and employee satisfaction, qualitative certifications) and audit the company according to the 5Ms (see
the example).
Take into consideration that in the international markets an increasing emphasis on quality management requires
companies to emphasize process performance (methods) and strive towards continuous performance
improvement (measurables). A company audit should take these issues into consideration!

EXAMPLE
Our companys assessment of our Strengths and Weaknesses based on the method of 5Ms: Management and
Staff, Means (resources), Methods (Management), Machines and Measurables (marketing impact, customer and
employee satisfaction, qualitative certifications) is as follows:

Management
and Staff

Means

(Resources)

Methods

Measurables
Machines

Procurement

Strengths
Highly skilled & experienced staff
Good relation with University for
recruitment of engineers.
All staff speak English.
Stable cash flow
Good Bank relations
High own capital
Good supply of scrap material available
Enough space to add lines for additional
testing and assemblies
Certified against ISO9001:2008
Implemented process control missing
ERP system
Flexibility in capacity by moving from 2 to
3 shifts.
A culture of openness and flexibility to
adapt new and better methods.
State of art CNC machines
CMM 3D measurement system
In-house Spectro Analyser
High capacity in CNC machining
High customer satisfaction, score 8,9 out
of 10.
Strong increase of sales in past two
years between 15 30%.
Ebit level between 8 - 10%
Low scrap rate below 1%

Warehousing
and shipping
Marketing and
Sales
Customer

Service
=> Now start writing!

Weaknesses
High turnover of senior staff.
Limited International Marketing experience.
Knowledge of EU market missing.
Poor infrastructure in Industrial area
Unpredictable power supply

Foundry missing simulation software.

High energy usage
Not yet PED 97/23/EC certification.
Not yet ISO 14000 certified

Robotically shell drying is missing

Pressure testing outsourced

High level of absent of staff: 5%

TIP: Do not just copy the table above. Use the inputs from the Export Audit conducted by CBIs
experts.
DERBIOTEC
Management
and Staff

Means
(Resources)

Strengths
Conocimiento del mercado
Amplia experiencia de
operarios de produccion
Tener knowhow e
infraestructura para
investigacion, desarrollo, y
aplicacion de produtos

Methods

Machines

Weaknesses
Mejorar distribucin de
funciones

Capacidad de acceso a
Financiamiento
Capacidad para invertir en
infraestructura y WK
Disponibilidad inmediata de
materia prima

Mejorar la Infraestructura
en equipos

Implementacin Sistema de
calidad
Manejo y conocimiento de
Protocolos de calidad

No cuenta todavia con

Certificacin ISO 9001,
HAACP, etc
No se aplica en su
totalidad los procesos de
Calidad

Equipos para produccin

No Automatizar procesos
No Aplicacin
Mantenimiento preventivo

Measurables

Procurement

Substantial Line of Credit for raw

materials

Warehousing and Shipping

Big warehouse
Close to the port

Marketing and
Sales

Buena relacin con

clients

Not enough shipping frequency

High shipping costs

No se encuentra
actualizada informacin

Customer
Service

Pagina Web
Brochure
Technical Information

Se cuenta con brokers

para ventas para Europa

en la web

Alta dependencia venta

por medio broker
Falta contacto directo
con clients

Strengths
What are you doing well already
Product

Producto mjuy usado en la

industria
Nuestro product tiene
Buena calidad a
comparacion de
competencia
Product en varias
presentaciones
Capacidad para formular
segun requerimiento de
cliente

Weaknesses
What more could you do?
Where are improvements needed?
No se cuenta con
informacion sobre
Mercado y usos en
cosmetic
No se cuenta con
informacion sobre
seguridad de product en
cosmetica

Price

Se cuenta con precio

competitive
Posibilidad de conseguir
Buenos precios de material
prima

Place

Promotion

CBI
Promperu

Beneficio a comunidades
campesinas

Incrementar huella carbono

People

Planet

Precios internacionales
bastante bajos
Competencia de
productores chinos

No cuenta con posicion

en Mercado

Remember to remove the green and white text boxes when you have finished writing this section!

Also refer to SEDEX audit template

4. MARKET AND INDUSTRY TRENDS

INSTRUCTIONS
Describe the past, present and future developments that are taking place, are envisioned
to take place, or have taken place in your current and potential future markets, including
particular segments: Try to identify workable market segments, and relate these to
consumer behaviour, procurement practices, differences in the distribution system,
regulations, fashion, economic, political and technological developments, innovation, and
of course competitor activity. You should try to identify the most promising market
(segment), providing concrete business opportunities.
Use the market surveys that CBI has available on its Market Intelligence Platform!

EXAMPLE
Local market trends:
The trends in our local market are mainly on the need for price reduction. This is because of strong
competition and new entrances. Many foundry managers have left the company they worked for and
started their own foundry. In the past 5 years the number of competitors in our region had grown by 25%
although most of them are at this moment not a threat for our company as they are yet not well developed.
Because of the same reason we are facing problems with key staff leaving the company as the
possibilities for new jobs have increased. Because of the strong growing economy in our country (8%
overall 13% growth in our market) we, and all our competitors are facing shortage in energy supply
which is a bottle neck for increasing our capacity and in growing our business. This trend is expected to
last for next two years.
EU market trends:
We have limited view on the trends in the EU market but have found the following trends (document trendmapping) at the Market Intelligence platform at CBI website for our sector metal parts and components:

Small and medium sized foundries will disappear in the long term as they will be unable to keep
making sound profits.
EU companies look for improving the level of automation within their processes and implementing Lean
Manufacturing to keep ahead of the competition from Low Cost Countries.
EU buyers compare local and global sourcing and will re-shore when rising cost, unreliable deliveries,
higher risk and unfavorable exchange rates causes negative effects on their businesses.
There is a lack of interest and enthusiasm among young people in relation to working in the metal
industry.
Many experienced staff members are reaching retirement age. (Past period of 2e World War baby
boom).
Companies reduced their stock levels and order lead times because of economic uncertainties and
rising cost of credit. There is a need for flexibility in the supply chains.
Companies shift their focus from initial purchasing cost to Total Cost of Ownership. (TCO)

Increasing focus on reduction of material used as well as better functionality.

Product design has a stronger focus on energy needed for manufacturing and the used and recycling
of materials.
CSR (Corporate Social Responsibility) gets more important in the B2B market place.

For Zorarko Investment Castings the European Valves and Pumps market appears to be the most
promising market.
=> Now start writing!
TIP: Do not just copy the information in the white text box.
Look at the CBI Market Intelligence platform for trends related to your Industrial market sector:
http://www.cbi.eu/marketintel_platform select your sector and download the manual CBI trendmapping.
Add the trends from the CBI trendmapping into your EMP.

Remember to remove the green and white text boxes when you have finished writing this section!

5. MARKET AUDIT (External)

INSTRUCTIONS
The market audit is an external analysis of the Opportunities and Threats in the market. A key characteristic of
the market audit is that the aspects covered are market conditions which are uncontrollable by the company
management. At this stage, you should describe the opportunities and threats of your current and target export
markets. You can make use of the STEEP methodology: Identify opportunities and threats related to Sociocultural factors, Technological factors (barriers), Economic factors, Environmental factors and Political factors
related to trade.
For more background information on market auditing in the export planning process, check the CBI manuals
on at the market intelligence platform or the CBI database from the CBI website or consult your local expert or
EU expert for the same.

EXAMPLE
Our market audit indicates the Opportunities and Threats, who are uncontrollable by our company management,
in our current and target markets by the use of the STEEP methodology:

Social-cultural

Technological

Economic

Opportunities
Lack of interest among young people
in Western Europe in working in the
metal industry.
Experienced technicians in the EU
reaching retirement age.
Rising demand for investment castings.
The increasing need for more value
adding: Companies only want
castings in machined conditions.
Expected EU recovery from crises by
mid-2014.
Need for cost saving in the EU because
of strong competition.
Small and medium sized foundries will
disappear in the long term in the EU.

Environmental

Political/Legal

Our country has good relation with

most EU countries.
Stable political situation in our country.

Threats

Increasing use of automation by EU

competitors.
3D printing in long term.
Currency exchange rates fluctuations.
High percentage rent on bank loans
Poor infrastructure within our country.
Transport lead-time to EU longer
compared to competitors from Eastern
Europe.
China is still number one on price.
Increase or re-shoring.
Increased focus on CSR by EU buyers.

Our country is not well known by EU

buyers, weak country reputation.
Low level of government support.

=> Now start writing!

Apuntes Derbiotec
Social-cultural

Technological

Opportunities
Hombres tambien estn en tendencia
a cuidarse
Incrementa el valor por Cuidado
personal

Threats

Economic

Environmental

Proteccion de ambiente

Incrementen regulaciones de
proteccion

Political/Legal

Our country has good relation with

most EU countries.
Stable political situation in our country.

Our country is not well known by EU

buyers, weak country reputation.
Low level of government support.
Nuevas regulaciones a aplicarse,
ejemplo Nagoya

TIP: Do not just copy the table above. Only add opportunities or threats you know or have found
through conducting your market research.
You will identify additional opportunities and threats when you know more about the European market.
Attending CBI EXPRO will be very useful and provide further information which will help you complete this
section.

Remember to remove the green and white text boxes when you have finished writing this section!

6. SWOT CONCLUSIONS

INSTRUCTIONS
In the ideal situation, the findings of the Strengths, Weaknesses, Opportunities and Threats (SWOT)
analysis as carried out as part of the export audit, will provide numerous opportunities that match with
identified company strengths. However, in reality, the findings will often show several threats in the market
that correspond to weaknesses in the company. The main challenge here lies in addressing the
weaknesses and transforming them into strengths, while optimizing the impact of once strengths to tap
identified market opportunities. Remember that a threat is considered a threat because the company is
unable to deal with it. It has an associated weakness. If the weakness is transformed into a strength, the
threat will disappear (and may even become an opportunity). The identified opportunities and threats
should be considered as drivers for company adaptation and improvement. It is important to realize that
the market conditions cannot be changed, and for that matter they enforce the direction the company
should take towards market entry. Remember that the strengths and weaknesses are controllable whereas
the opportunities and threats are given market conditions.

EXAMPLE
SWOT conclusions:
Our main challenge is to link our strengths to opportunities in the identified market of valves and pumps
and to transform our companys weaknesses into a strength. We have also to consider if our company is
strong enough to cope with all the challenge and workload of exporting as per our target and planning.
Conclusions on opportunities in identified markets:

The European market will offer opportunities, but only to those companies, like we, that are fully
committed to establish business relations based on partnership and that are able to keep up with the
growing demands in the field of product innovation, production capacity, flexibility and technical
requirements.
The main opportunities that fits to our strength is the EU market sourcing strategies for value additions
to the casting products including machining, surface treatments like grinding and polishing, final
testing, assemblies and packaging.

Conclusions, in order to become successful in the European market we need next weaknesses to be
transformed into strengths:

New HR policy to retain senior staff with the company for a longer period.
Training in international B2B marketing and market research on the EU market.
Visiting EU fairs on valves (Valve World Globally ) to conduct field research.
Installation of a power station to ensure power supply for higher reliability of supplies.
Energy saving plan.
PED certification for entering large parts of the EU market of valves and pumps.
In-house pressure testing.

 => Now start writing!

Do not just copy the conclusions above.
Remember to remove the green and white text boxes when you have finished writing this section!
7. COMPETITOR ANALYSIS
INSTRUCTIONS
Now that you have conducted your own SWOT analysis, try to identify the main competitors in the target
markets. What are their strengths and weaknesses and their expected strategic moves in relation to the
opportunities and threats?
Remember that the opportunities and threats are not only drivers for your company performance but will
also direct the other players in the market.

EXAMPLE
Our main competition comes from China as they cover 60% of the market share of valve and pump parts
with the EU. Their strength is providing a very competitive price (10 20% below our price level) but their
weakness is their inconsistency in quality, delivery and reliability.
The EU competitors disadvantage against us is their higher price in both tooling level (in some cases 6
10 times higher compared to us) and products (30 - 40 % higher). The EU competitors are more attractive
to OEMs from the EU because of their product quality, short lead times and high level of reliability.
The number of global competitors and rivalry in our market is enormous and many compete aggressively
on price especially as now the EU market is declining.
A new entrant is not a threat for us or anybody else as it will not be noticed because of the high number of
competitors in the market. In some cases it might affect our local market slightly.
EU buyers will not easily switch to a new supplier due to the costs of investing in tooling may be very high
and a switching to a new supplier is also considered risky.
We do not foresee threats from substitute products or materials. The valve and pump markets in the oil
and gas and food processing and medical applications remain the same on product design and used
materials although there is a slight change in material from low alloy steels to stainless steel.

=> Add your text on competitor analysis

TIP: Dont just copy the example above. Look at the CBI Market Intelligence platform for competitor analysis
related to your Industrial market sector: http://www.cbi.eu/marketintel_platform select your sector and choose
competition and download the manual CBI market competitiveness.

Remember to remove the green and white text boxes when you have finished writing this section!
8. MARKET ASSUMPTIONS

INSTRUCTIONS
Describe the underlying assumptions that may impact on the plan. Relate these assumptions to for
example the economy (slow or fast economic growth), distribution pattern, product (life cycle)
development, technological and regulatory developments, stability or dynamism in your target markets,
your companys financial situation (e.g. cash flow). The more realistic your assumptions are, the more
accurate your plan and budgeting can be. If the assumptions change substantially, the plan (and budget)
needs to be adapted.

EXAMPLE
Within our Export Marketing Plan we apply the following underlying market assumptions for the next 3
years:

Prices will increase but will be limited to maximum 5%. Price increase include higher raw material cost,
higher transport cost and the increase of salaries.
Prices will decrease due to technology upgrade, improved and more efficient processes and price
pressure in the market between 3 and 4%.
Government rules and market access requirements will remain the same.
The European market will recover from the crisis and economy growth in our target market will be
between 2 and 3% year on year based on year 2014.
The exchange rate between our currency IPVP will not change more than 5% against the current
exchange rate 1 Euro = 2,20 IPVP.
Our financial situation and casflow will remain at the average level of 2014.

=> Add your text on Market Assumptions here:

Remember to remove the green and white text boxes when you have finished writing this section!
9: SMART EXPORT OBJECTIVES

INSTRUCTIONS
Based on the outcome of the audit, you should be able to formulate sound objectives. These objectives
should provide the building blocks for your companys targets. Therefore they should be SMART: Specific,
Measurable, Achievable, Realistic and Time-bound.
Specific: the product(s) and market(s) should be specified;
Measurable: the objectives should be quantitative, expressed in terms of sales value,
sales
growth, market share, number of customers etc.
Achievable: the objectives should be based on your companys strengths and its critical success factors
(the internal potential) and market opportunities (external potential);
Realistic: do not bite off more than you can chew and that needed investments are in relation with the
expected yield (and vice versa)
Time-bound: use a planning horizon to reach your goals and limit the earn back period.
You are advised to formulate short term, medium term and long term objectives.

EXAMPLE
Within our management team we have set the next export SMART objectives for the period 2015 2017:
(SMART: Specific, Measurable, Achievable, Realistic and Time bound)

To increase our export of valve and pump parts to OEMs in the EU from 100.000 (FY 2014) to
150.000 (FY2015) 225.000 (FY2016) and 300.000 (FY2017).
To increase our exports of medical instruments and implants to the EU from 60.000 (FY 2014) to
80.000 (FY2015) 100.000 (FY2016) and 150.000 (FY2017).
To gain at the end of each year (2015, 2016 and 2017) minimum one new customer for botch product

line valves and pumps and medical instruments and implants which contributes to minimum 30.000
sales within the first year.
To participate at exhibitions Valve World 2015 ((Dsseldorf), Medica 2016 (Dsseldorf) and Valve
World 2017 (Dsseldorf) with CBI.
Set up an export department by January 2015 employing an export manager and one assistant.
Improve our website to a level comparable with EU competitors by May 2015.
Develop an Export brochure consisting of 8 pages covering our core export products by May 2015 as
preparation for our participation at Valve World 2015.
Minimum two business trip annually starting 2015 to the EU to meet potential customers, the first one
to be scheduled after participating at Valve World and Medica.
Developing two annual newsletter (in April and September) to inform our customers, potential
customers and contact about our latest developments.

TIP: Use the inputs from the Export Audit of your company done by the CBI experts. Some of the
action plans drawn up might be related to your export objectives.
=> Add your text on Export Objectives
Remember to remove the green and white text boxes when you have finished writing this section!
10. EXPORT MARKETING STRATEGY
10.1 Summary 10.2 Market Segments

INSTRUCTIONS
Market summary: In the strategy, you develop a sense of direction for your company. Based on the
conclusions of the export audit and competitor analysis, you will be able to develop the strategy to meet
the objectives. You will determine the market (segments), choose the most suitable distribution channel
and select the right trade partner. The appropriate positioning should offer you the competitive edge you
need vis--vis the competition, to outperform them based on customer value. For more information about
strategizing in the export planning process, check the CBI export planner manual, which can be
downloaded from the market information database.
Market segments: When selecting your target markets, you have to determine which market (segment)
you will focus on and why. In this respect, consider market size and in particular market growth, specific
segments, particular niches, developments in customer needs and customer satisfaction, physical and
cultural proximity, and alertness of competitors.

EXAMPLE
10.1 Summary: The most strategic way to enter the EU market is by participating in International
exhibitions but this is not enough to achieve our objectives. We have to expose ourselves by using
different strategies. We are aware that entering the EU market is not an easy task as it is a highly
competitive market. In our market strategy we focus and prioritise on the market segments, our position
strategy, product strategy, pricing strategy, distribution strategy and promotion strategy.

10.2: Market Segments:

Our priorities are to supply casted valves and pumps components to the following markets in Europe.
1. Germany
2. UK
3. Norway
4. The Netherlands
5. Denmark
Target markets are Oil and Gas, Chemical, Food and Pharmaceutical.
Our priorities are to supply parts for medical instruments and implants to the markets in Europe:
1. Austria
2. Germany
3. Netherlands
4. France
By additional market desk- and field research we will identify the most interesting market segments or
particular niche markets.

=> Continue writing!

Remember to remove the green and white text boxes when you have finished writing this section!
10.3 Positioning Strategy

INSTRUCTIONS
Positioning strategy: Based on a clear understanding of the customer needs in your defined target
markets, you have to clarify how your business offering meets the perceived customer needs. The resulting
product/market mix should include what you sell, at what price, where you sell and how you sell it. How
does your product/market mix compare to the competitors marketing mix? To what extent and in which
areas do you differentiate from the competition. Your product/market mix should make it clear for customers
whether you are aiming for the top end of the market, at medium level, or at the lower end. Positioning,
based on a blending of perceived and physical added value, impacts on the choice of distribution channel,
product quality and warranty, business communication and pricing.

10.3 Positioning:
Compared to our competitors from low cost countries we are better organised in terms of facilities,
equipment, logistics and reliability. Our positioning in the local market is at the high / top end of the market.
For the EU market we will also position our company as a premium quality supplier above the medium and
up to the top end of the market. We want to differentiate against our competitors from low cost countries by
delivering higher quality with a high level of value adding. This is our strategy on branding and company

image that we want to create in the EU market. We will not position ourselves as a price fighter.

=> Continue writing!

Please do not just copy the text above
Remember to remove the green and white text boxes when you have finished writing this section!

10.4 Product Strategy

INSTRUCTIONS
Product strategy: How can you develop the product range in accordance with the customer needs and
prevailing market conditions (competition and rules and regulations) in the target markets. Can you use
your existing product assortment or does it need adaptation?
Features/benefits analysis: Do your products offer features (physical property of the product) or benefits
(usage added value) that add value to the customer? Are there elements of your intrinsic product which
are not appreciated by your customers? Always remember that product safety, recycle ability and userfriendliness are dominant success factors in the European Union due to legislation.
Unique selling proposition of your products: Do your products offer unique properties that are an
incentive to customers to buy it? You should try to name at least one USP per marketing P (product, place,
promotion, price) since this will help you to formulate your sales message.
Product development: You will discover that only in exceptional cases your product will be directly
acceptable to the market. Therefore product development capability, in relation to market demands is of
crucial importance. Moreover, at a higher level, not only product development but more so process
management capability is a key issue for success. When your process reaches European conformity
(including research and development processes), this will attract customers who will assist you in
producing according to required specifications. In this respect, consider the importance of compliance and
assurance with management systems (e.g. ISO 9001:2000 for quality management and HACCP for food
safety).
Product packaging: In most cases packaging is one of the product features that needs market
adaptation. Packaging includes all aspects of the package that holds your product and must be practical,
convenient and promotional. Issues of engineering, design, graphics, distribution and marketing enter into
packaging solutions for exports. In the EU three new packaging issues have emerged: environmental
concerns, safety concerns, and what we call packaging as product. In most cases it is advised to include
the trade partner in the packaging adaptation decisions.

EXAMPLE
10.4 Product Strategy:
We will offer the same products to the EU as we currently do into the local market: Cast parts and
components with machining for use in valves, pumps, medical instruments and implants. Our products
delivered in the local market are already indirectly exported and used in high end till top markets and
therefore meet the target customer requirements. Products will be supplied in Stainless Steel, Duplex
Stainless Steel, Carbon and Low Alloy Steel.
Compared to our competitors from low cost countries our unique selling points are:

Product: Our process capability and quality in castings accuracy and ability of castings with thin wall up
to 3 mm has been developed by implementing process control since 2006. This gives us a competitive
advantage of being able to supply complex castings with thin wall designs.

Benefits: We offer our customers added value through our very high machining accuracy our airconditioning and temperature controlled QC room which is equipped with a Zeiss CMM machine.
A second benefit we offer is our in-house capability and combination of TIG welding and mirror polishing
for applications in food processing equipment and pharmaceutical applications. So far we have not seen
any competitor from low cost countries who is able to offer the same value addition to OEMs in the EU.

=> Continue writing!

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10.5 Pricing Strategy

INSTRUCTIONS
In many cases, you will not be able to dictate your own prices. Information from the market research
should give you the insight into the prevailing retail and wholesale prices, appropriate margins and
competitor prices. Some considerations you have to make when determining a pricing strategy: Cost,
demand, competition, image, segment. Also, you need to consider what countermeasures your
competitors may take. Will they strike back? Will they be forced to defend themselves aggressively? Are
they in such a secure position that they can take long term actions to undermine your position?
You may choose out of four basic pricing strategies:

Cost-plus pricing: In cost-plus pricing, you look at the cost of what you sell. That is, your
production costs, and add on the profit you need to make. Cost plus means Cost plus profit. This
strategy is used mostly in opportunity marketing. The focus is more on selling instead of sustainable
long term marketing.

Competitive pricing: With competitive pricing you establish your market price by
benchmarking with competitors prices and differentiate through marketing mix incentives. The result
should be a better price performance ratio than the competitor average.

Penetration pricing: You can adopt penetration pricing by applying low margins or even
apply marginal costing (in case present sales cover the contribution to overheads and you still have
spare capacity to utilise) and sell at the lowest price of all your competitors. The focus is on entry and
high volume. A negative aspect is that you will also receive a low quality image (price fighter) which
may hinder upward marketing later on.

(Perceived) Value pricing: You can adopt value pricing in case there is no competition (yet)
or when the product is perceived as unique or superior. The volume may be small, the margins are
high, which offers you the opportunity to lower the price at a later stage and increase volume.

EXAMPLE
10.5 Pricing Strategy:
We manufacture items as per customer design and specifications. Pricing is based on material cost,
geometry, size and weight of the components and added with the labour cost of machining and other
processes like welding and grinding and polishing if applicable and overhead and profit.
In the start of our export journey we will use Cost-plus pricing.
If we see an interesting nice market which is interesting for us and fits to our capability we will decide to
use competitive pricing or penetrating pricing at cost price in the start to gain market share.

=> Continue writing!

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10.6 Distribution Strategy

INSTRUCTIONS
A proper Place produces profits! The first decision to make is whether to go direct or indirect to the new
market. Indirect means, that the complete export activities are taken care of by an exporter or agent or that
the complete import activities are taken care of by an importer or agent. When you decide to enter the
market directly, you should realize that you should take care of in-market stocks, in-market promotion, inmarket distribution and in-market sales. In such case, it may be very difficult to keep the investments in
relation to the expected yield! When formulating a distribution strategy, ask yourself:

What am I selling?

Who are my prospects?

Where are they?

How can I reach them?

How does the distribution channel work?

What does it imply to sell through this channel (trade margins)

How many channels should I use?

When you manage to follow the product flow upstream, from the front-line (profile of the end consumer) to
importer, you will be able to select the right market entry mode. This mode may include: Exporter, agent,
importer/wholesaler, manufacturer (co-maker / subcontracting), OEM (original equipment manufacturer),
retailer, mail order company, independent sales reps, Internet sales, or joint marketing agreements as
supplier to a large marketing company.

EXAMPLE
10.6 Distribution strategy:
Our priority is to distribute direct to OEMs of Valve and Pumps or Medical Instruments. Our target to the
high end of the market involves technical specifications and quality requirements which can only be
managed by direct communications. In markets where we will experience difficulties to enter we will
decide if we will work through an agent, only after an extensive search and selection of a suitable
candidate.

 => Continue writing!

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10.7 Promotion Strategy

INSTRUCTIONS
Promotion strategy: Promotion boosts purchases! Defined narrowly, promotion means ways of creating
awareness or inducing people to buy. The promotional mix is a range of techniques, whereby you initiate,
increase and maintain awareness of what you offer to your customers, in the most cost-effective way. As
part of the mix you can use the following ingredients: Direct Marketing, advertising, trade shows, personal
visits, web-advertising, in-store and distribution channel promotion, free publicity, catalogues and
brochures (CD ROMS).
The AIDAS formula helps you to remember the 5 key factors that a good promotional mix must realize:
Get Attention; Capture Interest; Create Desire; that Leads to Action; and Customer Satisfaction.
For more information about trade fair participations download the Expo coach. For more information
about image building campaigns, download the Image builder manual from the market information
database.

EXAMPLE
10.7 Promotion Strategy:
In marketing to customers in the EU market we will use the following promotional mix:
Trade fair participations at Valve World 2015 and 2017 and Medica 2016, all in Dsseldorf.
Personal visits to potential customers and contacts made at fairs.
Website promotion. We will upgrade our website and bring it to level of EU competitors.
Export brochure, to be developed which will also be downloadable from our website.
Video presentation of our company from pouring metal until machining and packaging.
Newsletters to all our customers and contacts on our latest developments.
Participation in the Dutch MMF (Match Making Facilities from NL Agency.
Overall promotion of our company in e-mails, quotations and letters.

 => Continue writing!

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11: MANAGEMENT RESPONSIBILITY

INSTRUCTIONS
Indicate the management requirements to manage the export fitness and market entry efforts. Who will be
responsible, how will the operations be guided, which systems will be in place and how will the workload
be divided? Also, how will the export marketing activities, and the resulting claim on the company's
capacities and resources, be balanced (or controlled) in relation to the domestic marketing efforts? The
export venture should by no means jeopardize the company's position in the domestic market. Consider
critical control points and contingency plans in order to manage the risks of the international adventure.

EXAMPLE
Our Managing Director will be responsible for achieving the desired export readiness and to succeed in
our market entry in the EU. He is also responsible for controlling the risks involved with the export
marketing as well to ensure that the export marketing activities will not have a negative effect on the sales
and marketing in the local domestic market.
The workload will be divided over the members of the management team for which each will be partresponsible as action plan owner of the actions addressed in the action plan. The managing director is
also responsible for the required budget to finance the export marketing and to put in place a sufficient
amount of capacity and human resources.
The Export Marketing Plan will be updated by the Marketing Manager and authorised by the Managing
Director based on the new inputs from market research, new market conditions, new trends, SWOT
analyses, market assumptions, export objectives, market entry strategies and market results once in each
year.

 => Add your text on Management Responsibility here:

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12. EXPORT ACTION PLAN

INSTRUCTIONS
Develop an action plan for your export start-up (or expansion), which is based on the export audit and
competitor analysis (actions needed in order to become competitive and to tap the opportunities), which
supports the objectives and strategies and that provides detailed actions showing timing and costs.
Develop a spreadsheet, detailing when key activities start and finish, and how they dovetail into each
other.
Use the Excel spreadsheet Action Plan and Budget EMP Zorarko Investment Castings 2015 -2017 as a
template.
Attach a copy of your action plan to this EMP.
=> Develop your Export Action Plan using the spreadsheet!
13. BUDGET AND FORECAST

INSTRUCTIONS
The last, but certainly not least important aspect of the export marketing plan is of course the financial
plan. You should include a section on financials, demonstrating the effect your marketing activities will
have on revenues and profitability. First an export sales forecast should be made up, covering a period
from 1 to 3 years. Based on this forecast, an export revenue projection should be made, followed by a
budget of export expenses. All this results in the profit and loss projection of the export venture.
Again, use the Excel sheet Action Plan and Budget EMP Zorarko Investment Castings 2015 -2017 as a
template to help you develop sales forecasts, estimate cost of sales and show when exporting contributes
to the companys earning (EBIT).

=> Develop your budget and forecast using the spreadsheet!

Well done! Plan Complete!

Remember you need to revise your plan, particularly your Export Action Plan regularly!