Exporting with Strategy

Sourcing Help

If developing an international marketing strategy seems daunting with so much to research, test and explore in order to make the right choices, you’re not alone. “SMEs need to acknowledge that to be successful in exporting they’re going to need help,” says Potter.

If using a consultant, he suggests talking to a number of different service providers in order to find somebody you have rapport with–do they have the credibility and the trust you need, and can they appreciate the dynamics of your business?

However, Gregory says the internet and the likes of Austrade provide free or at least very affordable resources for SMEs who want to go it alone.

Like anything in business it’s important to monitor the effectiveness of your marketing campaigns regularly, and adapt and change them as the market or your business changes. “Any planning you do should be reviewed on a regular basis,” advises Potter. Gregory agrees: “Things change so rapidly, so at least a couple of times a year or quarterly, would be ideal.”

“For the most part, we look at it on a regular basis to make sure the effort we’re putting in is being properly rewarded,” says Potter. “It does take time to get marketers up and running overseas, like anywhere. You do need to make an investment in time and resources in terms of updating your website and overseas travel and attending trade fairs and so forth, but we want to make sure with all that effort there is light at the end of the tunnel and we are going to get some traction.”

CASE STUDY: Brand Design

Eighteen years ago, physiotherapist Kumar Rajaratnam developed a range of specialist ergonomic chairs, selling them through his own retail business Backcare & Seating. He expanded the business by rolling out the Backcare & Seating franchise, which now boasts 60 stores Australia-wide.

Five years into operation, Rajaratnam realised there were opportunities to expand the business globally, especially into countries where the population had an increased awareness in their health and there were increased regulatory environments, similar to Australia’s OHS regulations. “There are other countries around the world that have had that awareness and drive in regulation that’s really led our targeting,” explains the company’s franchise director Michael Anthony.

“I know [the company’s approach to export] was quite strategic because Kumar’s not an ‘accident’ type of person,” explains Anthony. “He identified the key markets where those drivers were either coming into place, or were already in place. Scandinavia, especially, has had a very strong awareness of ergonomics for many years.”

Rajaratnam then jumped on planes and did his research to find out who the key players in the industry were. “He then went about meeting those people with a view of who is the right partner, rather than who can I sell it to,” adds Anthony.

Rajaratnam secured five distributors in key markets in the UK, Japan, North America and Europe, which meant the product could actually sell into 15 countries.

While the company’s marketing efforts were mostly through face-to-face contact initially, Anthony acknowledges things have changed quite a bit since then. “The world has become a lot more globalised over the last five to 10 years. Nowadays, we can do a lot more using internet technology and provide people with information and tools so they can find us.”

In response to this, Backcare & Seating embarked on a complete overhaul of its brand, both locally and internationally, 18 months ago. “We’ve completely re-engineered the look and feel and presentation of the business,” explains Anthony. “Before we did that, though, we hopped on planes and did our research in Japan, continental Europe, the UK and America, to find out what our competitors worldwide were doing. We were able to create a brief and a strategy based upon that research, and we then brought in an extremely strong team of providers, from branding experts to store architects.

“Together, we built our brand program, which helped lead us in terms of our new product and supply chain, and helped guide us in terms of what products and markets to focus on. Then, we went about implementing it all.

“While we were doing all this work, we started to make our international network aware of what the program is all about and what our aims and objectives are, and then we kept them up to date as we were moving through that 12-month process of implementation.”

While the branding remains consistent worldwide, Anthony recognises that marketing and product roll-out needs to be very market-specific. “What we recognise is that every country is very different and every marketplace is very different. The Hong Kong retail roll-out and the opportunity of building a brand is very different to the UK, which is very different to Singapore, for example. Our distributors or their partners (marketing specialists or whoever they may bring in) know their marketplace best, but we know our brand best, so we look to work with those understandings. “We’re the keepers of our brand and what that stands for. We’ve done the research in the markets before we put the brand together for their marketplace, but it’s their marketplace and they understand the nuances in their market better than we ever could.”

With 70 percent of the company’s total income derived from exports, much of Backcare & Seating’s marketing strategy lies in its international network of long-term partners, says Anthony. “The key is really for people to identify a range of vehicles like expos, websites, networking and so forth but, as they say, ‘we’re only three calls away from the King’. So think about who you know and who holds you in good regard, and then think about who they know.

“Don’t just take one approach, have a strategic approach, create a budget, be very focused, think about the marketplace itself and use your ears and seek to understand because that’s an approach that works well with people in other cultures.”

Marketing Assistance

The Export Market Development Grants (EMDG) scheme is an Australian government financial assistance program for new and existing exporters working to develop export markets.

Under the scheme, Austrade reimburses up to 50 percent of expenses incurred on eligible export promotion activities, above a $15,000 threshold (over two years for fist-time applicants). Each eligible applicant is able to access up to seven grants.

Applications for the 2007–08 grant year open on July 1 this year. For more information, visit the ‘assistance’ section of the Austrade website at www.austrade.gov.au