International Best

Practices

The Global Sales Effort

• Distributors• Channel Developers• Export Mgmt

Companies• Independent Sales

Reps• Reseller Networks• Retail Marketing

Gary Shallo• Spent 1975-1995 at the Xerox Corporation

-Sales Rep, Sales Manager, Product Manager

-Director of Distributor Operations in Latin America

-Director of Sales and Marketing in Central Asia• Spent 1995-2010 in Business Intelligence Industry

-Sale Director at OneSource

-Vice President of Sales at True Advantage

-Global Sales Director for Dow Jones SalesWorks

Who is this Man and Why is He Here?

Because just a couple of years ago, I was exactly where you are right now

Current VP of International Sales

ESP Power FiltersRecreate the US Success of ESP Internationally

• Company created by copier dealers• Noticed service problems increasing• Identified problem as “electrical noise”• Patented power protection technology• Absorbs and dissipates power surges• Lifetime warranty on filter and product• Reduced service problems by 22%• Increased performance by 16%• Improved customer experience • ESP started in 1985; $35 million in sales

ESP Focused on US Market till 2008Owners decided to “Go Global”

No Brains, No Plan, No Success

• READY, SHOOT, AIM

-Never developed an international strategy

-Never spoke to OEM executives outside of US

-Never conducted research on where to target efforts

-Never created a supply chain program

-Never worked with international bank on payment

-Never developed a resource plan or budget

-Never sold anything and lost their shirt

Company bought in 2009 by Gridiron Investment Company

Is there a strategic and quantifiable reason for making the investment, commitment and effort to launch overseas?

The US economic recession has had a significant impact on our revenues

Why do You Want to ExportYour Products or Services?

The US recession has had just as serious an impact on the world economy

Competitive pressures in the US have reduced our margins and decreased sales

World markets are even more price sensitive than the US and flooded with Chinese products

We have to manufacture outside of the US if we are going to be price competitive

You can manufacture cost effectively in the US and “Made in America” has global appeal

You have to be able to say that you are a “global” company to close big accounts

Export Management companies located in the US can provide you with a global presence

There are more business opportunities outside of the US that we are not getting

What is the cost of closing and supporting business outside of the US…is it worth it?

We already have most of the marketshare in the US; we have to go global to grow

The world has gotten along fine without your product ; why do they need it now?

Explore, Export, Expand, Exist

Go Global or Go Broke

Darwins Theory of Survival of the Fittest• Economic Recession…the food supply is dwindling• Competition is Aggressive…eat or be eaten• Adapt and Evolve….or become extinct• One Dinosaur left….and it is a hungry Dragon

• How easy is it to get there; what will I need to bring

• What resources do I have and how much will it cost

• What will the alien culture be like; what do I need to know– Cash, Contests, Eyeballs and Unmentionables

• How will I survive once I get there; will the aliens help me

• Do they think the same way I do and play by the same rules– Can you say “Bakshish”

• Will they want the items I brought with me to trade

• Will they let me stay and help me prosper or send me home

Research is the Most Critical Step in Going Global

Think of it like planning a trip to another planet…what do you need to know to survive

• First Step: WWW.EXPORT.GOV or 1-800 USA-TRADE

-Has the information and links you need to build a plan

Will provide you with the specific details

Will provide the contacts you need to speak with

-Read “Basic Guide to Exporting” and forget Amazon

-Speak to people you may know who have done it

-Use the Internet and research your markets

-Buy vital information if you can afford it

-Contact potential clients and partners and ask questions

Management probably has NO IDEA what this will take, has huge expectations,

and has provided a small budget…

The US Commercial Service is the most professional, informative and inexpensive team you can use

• Is your product unique, innovative, patented

• Research will tell you whether there is a market

• Estimate the size of the market to determine whether it is worth it

• Understand the culture to determine if they will buy your product

• Determine if you need to make design changes in your product

• Buy research or test data (if you can) to support your case

• Find out what licensing you will need and how long to get it

• Develop a supply chain to get your products to your market

• Utilize the services of a qualified international attorney for contracts

• Utilize the ExIm Bank; they are experts and provide credit insurance

Build an Export Launch Plan

The best way to gain senior management sanity, support, commitment, and funding

• I contacted Sandra Edwards and spent an hour on the phone

-She wanted to know about our company and objectives

-What our timetable was and expectations

-What my experience was and what I knew about exporting

• We then met at her office in Morrisville and spent another hour

-Company history, products, value proposition

-Strategy, resources, past experiences

-Target markets; channel strategy

Contact the USCommercial Service

There is NOTHING more effective and less expensive than the US or NC Commercial Service….

• Sandra Edwards and Kuldip Wasson then visited our company

-She wanted to meet with our CEO, CFO and COO

-She wanted to understand the corporate mentality/philosophy

-She wanted to hear from them what their expectations were

-She wanted to test their understanding of Exporting

-She wanted to understand how smart and serious they were

-She wanted to know whether we had the right product

-She wanted to know whether we had the right resources

-She wanted to know if we were ready

Commercial Service Specialist

The Commercial Service has a vested interest…they are evaluated on whether you achieve export success

• They will contact the embassy specialist in target country

-They will review your questionnaire

-They will insure that your value proposition is understood

-They will discuss whether that specific market is right

-They will contact you and tell you whether there is a fit

• They arrange a teleconference for you with the embassy specialist

-You will give an overview of product, benefits, objectives

-Based on their knowledge they will discuss possibilities

-They will then go to work for you to find the appropriate channel

The Fastest Way to Reach Your Target

US Commercial Service Gold Key Service

• Ihsan and Stanislava

– Each had 10-15 years of experience with the Embassy and US Service

– Highly educated in international business practices

– Experts in their industrial focus; they know everyone

– They spent weeks developing a list of profile companies to meet

– They prequalified each one of them; many times in person

– They prepared a complete dossier on each company

– We met before the calls and reviewed each one in detail

– They came on each call and helped with translation and support

– We reviewed each call at the end of the day and created an action plan

GKS Real World Examples

Finding Distributors in Turkey and Bulgaria

Never Confuse Effort with Results

Progress in the last Three Years

• From virtually no international business to over $1 million-Have developed “critical mass” of distributors that will double revenue each year

-Bulgaria

-Turkey

-Germany

-South Africa

-Zambia and Nigeria

-China

-Southeast Asia

- Mexico

-Brazil

-Colombia

-Latin America

Never Confuse Effort with Results

Looking Ahead to Next Year

• Evolved from selling “cases” to “pallets” to “container loads”-Current prospects for 2013

-India

-Pakistan

-North Africa

-Australia

-Oman, Saudi Arabia, UAE

-Russia, the Ukraine

-Baltics

When Nobody Knows Your Name

Create Awareness and Branding through

US Commercial News

• Run Ad three times a year (buy two, get one free)• Has generated over 200 leads in the last three years• About 80% are “just looking” but 20% are serious

The US Commercial Service will continue to help with tradeshows, delegations, and promotions

Additional US Commercial Support Programs

• NC Sponsorship of Cebit Hannover Fair…500,000 attendees• NC Sponsorship of InfoComm in Beijing…500,000 attendees• US Sponsorship of Tradewinds Brazil…meetings with key embassy

staff• NC and US Sponsorship of Trade Delegations…they bring them to you• NC and US Single Company Promotions…help kick start your

channels• NC and US Ongoing Seminars, Webinars, Export University Programs• NC and US “Step Grant” programs to help fund attendance at shows

The US and NC Commercial Services is a Valued Partner in my Business

THANK YOU!

Good Luck and Go Global