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MN-3000 Final Year Project Report - Docx2
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1
Cherry Tree Country Clothing
MAY 3RD
2016
Project Group 21
3
1. Executive Summary
The project task assigned to us was to develop an international sales strategy for the
company’s expansion in the United States of America (U.S.). To achieve this we
developed several objectives which was to:
We carried out a primary research through the means of questionnaires and interviews,
one targeted at the UK and the other at the US. They were aimed at addressing the 2nd
objective, which was crucial in understanding the local market in comparison to the
foreign market. The results showed that there is an even greater outdoor participation
in the U.S, making it a very attractive market. The result further revealed that those
from West North Central in the U.S have the greatest participation in outdoor activities,
making this a prospective target market. It also showed the similarity in consumer
outdoor preferences from both countries, most consumers enjoy walking and running.
Finally, the results highlight the consumer buying behaviour in the U.S.
The comparative findings in cultural differences of both countries revealed very little
differences. Notwithstanding, the U.S is a culturally diverse market, given its many
minorities etc., however a dilution in cultural differences has resulted into a high level of
cultural integration.
Moreover, our research into customs and excise duties in the U.S represents a notable
influence on product pricing. However by best understanding of these taxes, which can
vary from 0% to 38%, and its average not exceeding 5.73%, the business is able to
manage these costs in order to improve competitive pricing.
4
The importance of e-commerce cannot be understated, given the fact that 87% of the
US population are Internet users, and of these, 70% are regular online shoppers. This
therefore gives the business access and visibility to their target market. To complement
this e-commerce platform, the business has already opened account on Twitter,
Instagram, Facebook and Google plus all of which serve to lift visibility and promote the
brand. Regrettably, due to time and budget constraint (See Appendix A) we were
unable to carry out social media campaigns that we intended to. However, Industry
experience would suggest that through efficient social media integration and other
public relations exercises, the business will be able to increase its presence on social
media, which will in turn, notably increase the number of visits on the company’s
website.
Furthermore, the project group experienced the following challenges: the acquiring of
video equipment for promotional purposes, the lack of personal interaction with the
company representative and lastly the inability to visit the company’s store due to
distance. In overcoming these challenges, we adopted a flexible communication style
using electronic mails and video conference calls.
2. Introduction
Cherry Tree Country Clothing is an established family business based in Ruthin, North
Wales in the United Kingdom, which retails different brands of outdoor clothing and
equipment. Brands they retail include: Grisport, Bonart, Highlander, Hoggs of Fife,
Forest Clothing amongst many others. The image below shows the Hoggs of Fife
Huntly Prestige Knitted Jacket, which is one of the business’ most sold items.
Its traditional area of business has been the U.K whilst recently, it has begun operation
in the states of New York and Alaska in the U.S. via e-commerce.
6
This business will sustain its current brand ranges into the new states and continue the
long-standing relationship with their suppliers.
Our contact was confirmed with Bethan Bithell, the CEO and Managing Director of the
company. Whilst personal contact was not possible due to distance and time, the
quality of interaction was highly professional. Also, clearly communicated needs and
aspirations of the company gave direction to our efforts and motivated the team to add
value (See Appendix B for minutes of each meeting).
The project team consisted of six members, and each member took up a role in the
course of the project (see Appendix C).
Cherry Tree Country Clothing was our first choice because we believed that each
member in the project team had the skills to execute the project successfully. We also
had a strong belief that we could develop a strategy that would serve the business’
determination cost-effectively. The different members of the team possess skills such
as: management, financial modeling/planning, marketing, graphic design, website
design and branding. These different skills were highly beneficial in the execution of
this project. Two members of the project team communicated often with the business
and then provided the rest of the team with the necessary information. As a result of
effective team communication and cooperation, the project was successfully executed.
2.1. Aim
The aim of this project was to create an international sales strategy for the company so
as to optimise their sales performance in the U.S. As a result, we were able to develop
objectives to help in the completion of the project.
2.2. Objectives
1. Research into the cultural differences in the U.S., as well as customs and duties
requirements in the country By February 15th 2016.
7
2. Research the level of participation in outdoor activities in the U.S, and the United
Kingdom (U.K) by 7th, March2016.
3. Research and determine ways the business can increase online sales by 15th
March 2016
4. Explore suitable strategies that are necessary for developing and implementing
an international sales strategy for the business by 22nd March 2016.
Tasks, timescales and responsibilities have been included in the project log (see
Appendix D). This log also includes the due date and status of each task.
8
3. Literature Review
Nonetheless it is critical that firms take into consideration even the smallest detail when
looking to grow in a global market and seek to understand the global game in order to
contend with foreign competitors (Douglas et al., 1989; Hamel & prahalad, 1985).
Consequently, the literature will focus on the U.S outdoor industry and progress to
understanding how a business can succeed using e-commerce whilst having a flexible
business model. Other factors such as cultural differences and customs and duties
requirements of the U.S will be reviewed. Finally, the literature will discuss international
sales strategies that can best serve the current nature of the business.
The U.S. outdoor market is a booming one as over $127 billion is generated from
outdoor recreation product sales each year (The outdoor recreation economy, 2012). It
is no surprise that outdoor recreation was referred to as part of the American fabric
since 48% of the U.S population engage in outdoor activities, which is nearly half the
population. (Outdoor recreation participation, 2015).
The U.S, which has a gross domestic product of over $17.9 trillion, is one of the
strongest economies in the world (The world bank, 2016). Favourably, Consumer
spending and disposable income have been growing in the last few years, whilst
consumer inflation has been experiencing a decline. The wellbeing of an economy can
have severe implications on foreign business (Craig & Thomas, 2009), thus it is
important to review these economic factors as often as possible. Over the years, the
9
Federal Communication Commission (FCC) in the U.S has made Internet regulation for
businesses even more favourable for investors encouraging more investments (Fox,
2015).
The market potential has proven to attract foreign investors, however penetrating into
this market can be quite challenging as some big competitors already dominate the
market (Miller & Washington, 2016). Manufactures, such as North Face, Patagonia and
Columbia who control more than half of the market are giant players (see fig 1) likely
causing threats to new foreign businesses.
Columbia
17%
North Face
L.L Bean 37%
19%
Nike
15% Patagonia
Timberland
9% 3%
Other sport brands such as Nike and Adidas have taken advantage of the outdoor
market growth and are successful, as these are already established sport brands
(Cheung, 2011).
10
3.2. Customs and Duties Requirements
Customs and duties are regarded as value added taxes imposed on goods when it is
moving across boarders (U.S department of homeland security, 2016). A clear
understanding of customs and duties is crucial in order to determine the price impact on
consumers.
When sending goods to the US, import duties are due at the border. The main valuation
used to determine the levy imposed is through ‘free on board; (FOB). This valuation
depends only on the value of the good. However, in some cases, it is calculated on
both value and quantity of the product which is usually in ad valorem (percentage of
value) or in dollar or cent. Whichever valuation is used, the duty rate usually varies
between 0%-38%, but the average rate is 5.73% (Pitney Bowes, 2016).
In addition to the import duties, Merchandise Processing Fee (MPF) is charged, it is a
fee required by the customs and duties protection to assist in process merchandise and
in monitoring customs and trade compliance (FedEx, 2016). Formal entry and informal
entry of goods are subject to this fee.
The charges are as follows:
Formal entry: charged on commercial goods valued at $2500 or more, the ad
valorem fee is 0.3464%. When the MPF is charged in this case, the minimum
amount to be charged is $25 and the maximum is $485 (CBP, 2016).
Informal entries: this includes goods that are transported to the US via ship, air
or international mail. The MPF for this entry is a set fee, which varies from $2.00
to $9.00 per shipment (CBP, 2016).
11
3.2.1. Custom Duty Management
Majority of the U.S consumers have become health-conscious. They have become
largely conscious of their appearance and are taking conscious effort such as dieting,
and exercising to watch their weight (Cho et al., 2014). Exercising has also become the
biggest motivator for outdoor participation (Outdoor recreation participation, 2015).
12
Figure 2: Youth and Adult Outdoor Participation
hiking
13% Running, Jogging
and Trail
Running
27%
fishing
19%
bicycling
22%
Camping
19%
The youths (ages 8-24) and adults are participants of outdoor activities; in fact, the
youths have a stronger participation level (see fig 1) as this generation promotes need
for health and fitness. Running, jogging and trail jumping seem to have a greater
number of participants amongst the youth. Females have shown increasingly more
interest in their participation level, majority of which are Caucasians.
The U.S consumers are westernised and rely on the Internet for almost everything.
Mintel’s online shopping report (2015) shows that more than half of the U.S adults shop
online. From this population, 62% are likely to buy clothing or accessories, in fact it was
recorded that online retailers of clothing and accessories made the most sales in 2014.
However, it was discovered that online shoppers usually try to find the best deals;
therefore they choose retailers on the basis of price due to easy comparability on the
internet (Mintel, 2015).
3.4. E-commerce
The growth of the Internet and Web technology has made it possible for businesses to
commercialise their products online (Mammar, 2003). An in-depth understanding of e-
13
commerce in the U.S and online shoppers’ behaviour is important in developing a
suitable sales strategy for the US.
From the U.S. population, 87% are internet users, similar to that of the U.K (The World
Bank, 2016). According to Pew Research Centre (2012), 92% of the youth were
reported to go online daily. Of these 92%, more than a quarter shop online and 70% of
Americans (both youths and adults) are regular online shoppers (Fox, 2012). Half of
these shoppers take advantage of shipping cost; they are willing to increase their order
size to meet up with the free shipping threshold (Mintel, 2015).
According to Dillon & Reif (2004) marketers have discovered that there are some
factors affecting consumers’ behaviour when they shop online. These factors are
referred to as “clusters of purchase perceptions” and they include: product
understanding, shopping experience, customer service, and consumer risk (Jarvenppa
& Todd, 1996).
Product understanding or product knowledge includes information concerning a
product application, function and feature. An online store does not present the
opportunity for consumers to physically hold a product and read the information
it contains; therefore e-tailers are making reasonable efforts to provide far more
variety in information sources than even traditional sources (Lee & Chan-
Olmsted, 2011). Consumers are keen to explore a product’s information so as to
weigh the product against its price and quality.
14
The shopping experience involves factors such as convenience, product
availability, shopping ease, effort and the comfort of the shopping process (Lee
& Chan-Olmsted, 2011).
Understanding issues on cultural differences are fundamental factors necessary for the
success of a business competing in a global market. Consumers in different countries
react differently to marketing input, have different style of communicating and make
decisions quite differently. Therefore, as businesses internationalise, they become
culturally dispersed and consequently lose their shared norms and beliefs (Meyer,
2015). Arguably, culture is dynamic; today’s global village has revealed societies and
15
values as interlinked. The dynamic nature of culture is said to exist because societies
are becoming more interconnected and the migration rate has been on the rise over the
years.
In 2004, the U.S had a net migration of 1.22 million, this reflects a 56% increase of
what it used to be in 1995. This migration must have caused a dilution of cultural values
and increase in cultural diversity (Malota, 2012); hence foreign business should take
into consideration this cultural shift (Jenner et al., 2008). The U.S is becoming more
heterogeneous, with increasingly minority population. Hence, companies targeting the
U.S market need to develop a better understanding of the diverse subcultural values
and lifestyles (Swaidan, 2012). Swaidan further stated that culture affects a company’s
marketing mix (Price, product, promotion and distribution) as culture determines what
consumers eat, what they wear, how they consume and what they consume.
Geert Hoftesde’s (2010) model has been widely accepted in assessing culture.
Hoftsede defines culture as the “collective programming of the mind which
distinguishes the members of one group or category of people from another (Hoftsede,
2010). Hoftsede developed a four-dimensional framework used to measure important
aspects of culture: power distance, individualism, masculinity and uncertainty
avoidance. These dimensions can be useful in determining consumer behaviour:
I. Power distance is the extent to which a culture accepts that power is distributed
unequally in an organisation or institution (Gillespie & Hennessy 2010).
II. Uncertainty avoidance is a culture’s lack of tolerance for uncertainty or
unambiguity.
III. Individualism/collectivism is the extent to which a culture believes that people
should stay emotionally independent from groups and other collectives.
IV. Masculinity/Femininity is the extent to which masculine values prevail over
feminine values (Gladwin, 1981).
16
It is important for a business to understand the values, ideas and moral standards
placed across the culture when entering into a new market.
50
40 United Kingdom
30 United States
20
10
0
Power distance Individualism Masculinity Uncertainty
Avoidance
Cultural Dimensions
Fig 3 shows a comparative finding for both the U.K. and U.S. Both countries score high
and low in the same dimensions, thus showing a similarity in cultural values. In
addition, both countries have high individualistic cultures, which mean that people tend
to be “I” conscious; they look out for themselves (Mooij & Hofstede, 2011). People from
this culture are more embracing of outsiders, hence they are universalistic and assume
their cultural values are universal.
The UK and U.S. also score high in masculinity, which means status, success and
achievement are highly regarded. Therefore high status products are important in
showing off one’s success (Mooij & Hofstede, 2011). Finally, consumers in high
uncertainty avoidance cultures are likely to require more adaptation time in embracing a
new product development, new innovation or in purchasing a new technology.
Fortunately the U.S scores low in this cultural dimension. In a low uncertainty
avoidance culture like the U.S, people have a more vigorous attitude towards life and
tend to participate in active sports (Mooij & Hofstede, 2011). Standardizing ones’
product offering and marketing strategies can be possible, specifically when cultural
similarities exist between local and foreign market (Katsikeas et al., 2006).
17
However, according to Schaffer & Riordan (2003) it is not wise to totally rely on the
rankings from Hoftsede from the 1980’s, it is said to have been ageing and could have
possibly been out-dated. It was predicted that the uncertainty avoidance would likely
change within 20 to 40 years, hence research relating to the national ranking of
uncertainty avoidance may be questionable (Jenner et al., 2008).
In 1976, Edward T. Hall proposed the theory of high context and low context cultures,
which is useful for cross-cultural communication and marketing studies. In low context
cultures such as the US and UK, people are highly individualised and indifferent,
thereby having little involvement with others (Kim & Park, 1998). These cultures tend to
be clear and provide detailed information in their communication, it is no surprise that
Muller (1987) research discovered that the US consumers seek clear, detailed and
precise product information from ads they are exposed to. High context cultures are
quite the opposite, they are deeply involved with each other, hence they seek intimacy
and emotions in their communication style.
The rise of the Internet in the business world brought a great attention to the business
model (Novak, 2013). An understanding of the business model is necessary for
implementing an international sales strategy. A business model according to
Osterwalder (2005) is a term used to define a firm’s logic in creating and
commercialising value. A comprehensive business model is able to create a full
understanding of a business and makes it easy to implement its strategies (Goethals,
2011). When entering into a new market, re-adjustment of the business model is key.
The literature will use a regular company’s business model element as presented by
Osterwalder’s (2004) business model and an e-commerce model as presented in Afuah
& Tucci’s (2003) business Model. In addition, Byhlin and Holm (2012) integration and
application of both models will be adopted.
18
Figure 4: Oesterwalder, Affuah & Tucci’s Business Models:
In building the business model, it is important to consider the three strategic questions:
“What, who and how” the question addresses what product will be used to serve the
new market. Ostewalder’s (2004) model explains that value proposition is important in
distinguishing a business’ product from competitors’. Afuah & Tucci’s also supports this
statement that e-tailers need to have profit sites that distinctively positions them even
amongst competitors as this will impact customer value, the customer segment they
attract and prices they charge.
The ‘‘who’’ question is directed at who the business will target (target customer)? How
they will be reached? And how relationship is built amongst them? The distribution
channel is the connection between the target customer and value proposition (Byhlin
and Holm, 2012). Value is created for an online shopper when the product is delivered
19
at the right time, place and at a reasonable price. Likewise, building sustainable
relationships with customers is key in achieving loyalty and loyalty is fundamental to the
profitability and also survival of e-tailers (Christodoulides & Michaelidou, 2011).
The strategic question “how’’, is divided into two parts: the activities needed to create
value and the implementation of these activities. It addresses the infrastructure
management, which involves key operations in the business. As proposed by
Ostewalder’s model as well as Afuah and Tucci’s model, the value configuration and
connected activities are those activities that must be performed to underpin value, and
this is achieved through the value chain. Value should be added as it moves up the
chain of logistics, marketing, sales, operations and services. Nevertheless, focusing on
the business’ core competence is key; those areas where they have great knowledge
and technical capacities can give them a competitive advantage.
Having analysed all the strategic questions, the financial aspect, which is the last pillar,
addresses revenue, cost and price. However, a profitable price can only be charged
when customers derive value from the company’s product. Cost can only be minimised
when infrastructure is effectively managed and consequently revenue can be positively
impacted.
E-commerce business models should be focused on using the internet to create value
to customers, knowing target customers, understanding buyers’ habits, building long-
lasting relationships with them and having an effective distribution channel.
Expanding into new markets does not guarantee long-term business profitability; in fact
it is a risky venture. Igor Ansoff product-market expansion grid provides a useful growth
strategy that businesses can consider. It offers market penetration, market
development, product development and diversification.
20
The business already sends out parcels to the US, therefore a market penetration
strategy is proposed. Market penetration is a growth strategy that seeks to increase
market share with its existing product and existing market (Richardson & Evans, 2007).
Penetration can be achieved by attracting first time users of a product, encouraging
existing customers to increase purchase and winning customers from competitors.
21
4. Research
The group collected data by means of surveys, using questionnaires and semi
structured interviews. The questionnaire was initially focused on the U.S market,
however during the course of the project, we decided to introduce another survey
targeted at the U.K market as well. The rationale behind this was to compare both
markets so as to identify similarities and differences between the U.K. market and the
U.S particularly in areas such as culture, outdoor participation level and consumer
buying behaviour. Our findings will be able to impact the business by enhancing their
understanding of the market nature in the U.S., and enabling the management to make
an informed decision.
Before carrying out any of the surveys, a pilot study was conducted so as to avoid
challenges when carrying out the actual survey (Blessing et al., 2009). We
administered the actual survey to five people and closely observed their behaviour in
answering them, as well as the time it took. Since no challenges were encountered, the
actual survey remained the same. Both the pilot study and the questionnaires were
administered online, using Qualtrics; a research software as specified by Swansea
University to us. Respondents were recruited based on a random selection. Majority of
respondents lived in Swansea and surrounding cities within Wales and there were few
respondents who lived in bigger cities such as: London and Lancaster
The interview on the other hand was a qualitative research conducted to gain an even
deeper understanding of what exactly customers take into consideration when
purchasing outdoor clothing and equipment. This involved those residing in the United
Kingdom as well as others who were residents of the U.S. but are currently in the
United Kingdom.
22
4.1. Results from United Kingdom Market Survey
Male
38%
Female
62%
This survey gained 112 respondents (see Appendix E), in which 62% of the
respondents were female and 38% were male (Fig.5).
50%
40%
30%
20%
10%
0%
18-24 25-34 35-44 45-54 55-64 65-74 75+
Age
Majority of the respondents were between the ages of 18-24 (Fig.6) (See Appendix F
for Survey questions). This was due to the fact that we had the easiest access to
students. The business should be aware that that we conducted this survey in a large
23
student community, so results may slightly differ when the same procedures are carried
out on much older age groups.
We noticed in the results that, nearly half of the respondents were studying towards
their Bachelor’s degrees; whilst others were studying towards high school diplomas,
associate degrees, amongst others (Fig.7). It is evident from the results that majority of
those that engage in outdoor activities have attained a greater level of education. This
could be as a result of better exposure to the issues surrounding health and fitness or
could be due to keen interest in nature, as a result of their learning.
24
Figure 8: Outdoor Activities’ Participation
25%
Participants of outdoor
activities
Non-participants of
outdoor activities
75%
20%
15%
10%
5%
0%
Hiking Climbing Mountain Bird Rock Road Wild Other
biking watching climbing cycling camping
Activities
All respondents had their preferences in terms of what outdoor activity they enjoy.
Running and walking (chosen as “other”) are the most popular outdoor activities,
followed by road cycling (Fig.9). As many members of the population are increasingly
25
interested in health and fitness, it is only normal for a great proportion of the
respondents to be involved in outdoor fitness exercises.
35%
30%
25%
20%
15%
10%
5%
0%
Once in a while Sometimes Often Everytime
Results reveal to us that majority of participants take part in these activities once in a
while and 39% claim to participate in these activities sometimes.
26
activities within their convenience rather than travelling. We predict that those who go
out of their jurisdictions are outdoor enthusiasts.
Purchase
Do not 45%
purchase
55%
More than half those that engage in outdoor activities in the U.K. do not purchase
outdoor equipment (Fig.12). It is baffling that 75% of the total population participates in
outdoor activities yet only 45% actually buy outdoor equipment. This reveals fairly low
enthusiasm in the participation of these activities, therefore showing that there are still
opportunities for greater penetration in the U.K. market.
This survey was aimed at getting responses from people who were residents of the
U.S. It was a bit challenging in recruiting U.S. respondents as Swansea is less diverse
due to its size. Nevertheless, we were able to get 43 respondents for this survey (See
Appendix G).
27
Figure 13: Respondents, by Gender
Female
Male 49%
51%
Just over half of the respondents were males and the rest were females (Fig.13) (See
Appendix H for survey questions). This favours the research as it gives a fair balance to
the responses of both genders.
40%
30%
20%
10%
0%
18-24 25-34 35-44 45-54 55-64 65-74 75+
Age
Majority of the respondents fell under the “18-24” age group, and slightly over a quarter
of the population were between ages 25-34 (Fig.14). Majority of respondents were
students.
28
Figure 15: Respondents, by Ethnicity
Caucasian
3% 6%
11% Black/African American
50%
American Indian/Alaska
30% Native
Asian
Native Hawaiian/Pacific
Islander
From the collation of results, it was discovered that half of the respondents were
Caucasians and 30% were Black or African American (Fig.15). Based on our
secondary research, Caucasians also showed the most interest in outdoor activity.
However, an awareness of this should prompt the business to understanding their
ethnic perspective and cultural values. Nevertheless, it is advisable to employ diversity
marketing particularly in areas of communication as the U.S is made of diverse ethnic
groups.
Participate in Outdoor
Activities
Don't participate in
outdoor activities
95%
29
This result shows an even stronger participation rate than the UK, with a rate of 95%.
Only 5% of the population do not participate in outdoor activities (Fig.16).
Logically, we felt that consumers’ region in the U.S could determine how actively
consumers participate in outdoor activates. Results showed that most people were from
the West North Central region of the United States of America (Fig.17). This region
comprised of states such as; Minnesota, Iowa, Kansas, Missouri, North Dakota, South
Dakota and Nebraska. This could be a strategic location to focus on, as well as states
in the pacific and middle Atlantic.
30
Figure 18: Outdoor Activities, by Type
25%
20%
Percentages
15%
10%
5%
0%
Hunting Shooting Walking Dog Hiking Camping None Other
Walking
Activities
The result in figure 18 further shows a well diverse interest in the different outdoor
activities. However, of all the activity, Dog walking is the most popular activity; nearly
half of the entire U.S population own at least one dog (ASPCA, 2016), this could be a
motivation. Walking, Hiking and the “Other” category, which includes running, are also
popular too. The business already offers dog walking and hiking clothing and
equipment. However, as shown by the result and the information obtained from
secondary research, there is a big market for walking and running.
Figure 19: Factors taken into consideration when buying outdoor clothing
70
60
50
Percentages
40
Quality
30
Price
20
Return policy
10
0 Customer service
Not Slightly Important Very
important at important Important
all
Degree of Importance
31
In order to understand buying habits of potential customers in the United States, we
had to include a question aimed at understanding the factors taken into consideration
before making purchases. Respondents were asked to rate quality, price, returns policy
and customer service according to their preference. From the results, we discovered
that most people rated prices of the products as well as the quality very highly (Fig.19).
This in turn means that the business might need to have a competitive advantage in
both price and quality so as to be more attractive to customers.
Use 3rd
party
websites
83%
We were able to understand that a high proportion (83%) of people who purchase
outdoor equipment/clothing actually prefer doing so through third party e-commerce
websites such as Amazon and eBay (Fig.20). This could prompt the business to include
their products on these third-party websites so as to be more visible to their target
audience.
32
Figure 21: Method of Purchase
60%
50%
40%
30%
20%
10%
0%
Mobile Computer Either Mobile or
Computer
From figure 21, we discovered that half of the population are happy to make online
purchases of outdoor apparel either through their mobile or computer. Forty four
percent of respondents have a stronger preference in using their computer and nearly
the entire population would rather not use their phone.
From the interviews conducted for the U.S, we discovered that Jack Wolfskin was a
favourite outdoor brand due to its high quality in products and equipment. They also
mentioned that they were willing to switch brands on the basis on lower price and good
quality. Four out of the five people we interviewed had no idea what Cherry Tree
Country Clothing was – which supports the strong need for brand awareness for the
business.
33
Furthermore, one of the UK Interviewees emphasised on his keen interest in cycling, he
further revealed that he was not loyal to any brand but price was a priority for him when
choosing outdoor equipment.
Generally, we discovered from this interview that price and quality plays an enormous
role in consumers’ decision-making process and the loyalty of consumers can be easily
changed, if the business has a competitive advantage in price and quality.
34
5. Delivery/Implementation
Based on our regular interactions with the business, we discovered ways through which
we could enhance the existing set objectives, as we were keen to add substantial value
to the business.
The essence of the primary research was to deal with the first objective, which was to
understand the outdoor participation level. We decided to carry out two surveys
because we wanted to understand the differences between both markets and how this
impacts critical decisions for the business.
Based on the research findings, it was discovered that consumers from the US have a
greater outdoor participation level. Due to the variety in activities, a higher incidence of
outdoor activity is prevalent. This reality gives the opportunity for the company to
operate profitably.
These findings also point out that young people have a greater interest in outdoor
activities than older ones and this fact is supported by our secondary research. One
can say that this is resulted from a strong desire to look good, keep fit and live a
healthier lifestyle.
In comparing the survey results, both countries enjoy partaking in the same activities,
walking and running. People from western countries are enlightened about the negative
impact of obesity and excess weight and its influence on medical cost.
As expected, people from Minnesota, Iowa, Kansas and the rest of the West North
Central are more active in outdoor participation as these areas are more appealing to
outdoor enthusiasts. Therefore guiding the business on areas more worthy of
penetration.
In addition, these findings aided our understanding of U.S consumer buying behaviours
and habits, giving us a better knowledge of the target market and how to encourage
consumers to buy more of the company’s products. Critically, consumers confirmed
price to be the number one priority when they shop, they also voted quality as equally
very important. Based on the Interviews, an interviewee stated that he is loyal to Jack
35
Wolfskin clothing and footwear, however, if he got a better price deal from another
brand with a similar quality, he was willing to switch brands. This automatically signals
the importance of competitive and good quality products, although in many cases,
higher quality demands higher price.
Lastly, the majority of consumers revealed that they are more likely to use a third-party
website when they shop for outdoor products given the variety of brands and products.
By establishing the business on a third-party website, they are easily accessible and
exposed to their target audience. They can create brand awareness as it drives the
business to compete even more aggressively against other competitors and finally, it
can greatly improve sales.
The next crucial step for the group was discovering ways through which we can drive
sales, as this addresses the third objective. We brainstormed, sought guidance from
the literature and received advice from experienced consultants in the field (see
Appendix J). Consequently, we did the following:
We registered the business with Industry-related website (See Appendix K) in
both the U.K. and U.S. By so doing, the company is grouped amongst other
similar businesses therefore providing better visibility to the consumers,
particularly when they search online.
The team redesigned the company’s logo and website to attract consumers’
attention to the website (this was done as a template which could serve the
company in the future)
We went further to create a landing page (See Appendix L) which provides an
easier platform for U.S. consumers. The company is also able to target its
product promotion or sales promotion to the U.S consumers in order to
encourage sales.
In addressing our final objective, which was to explore suitable strategies in developing
an international sales strategy, we sought the literature. We discovered that a market
penetration strategy was a suitable one considering the company’s finances and size.
As this was theory related, we conducted in-depth secondary research, which
highlighted the importance of social media, sales promotion and competitive pricing in
36
penetrating a foreign market. Regrettably, we were unable to run our social media
campaign due to time constraint.
We did not ignore logistics, as it’s a vital part of the business’ operation. Despite our
thorough research of understanding the U.S. customs and duty requirement, we further
went on to contact major courier services operating globally such as UPS (see
Appendix M). We discovered that the courier costs depended on a few factors such as:
the weight of the product/package, dimensions, where it is being posted from and
where it is being delivered to.
Lastly, we took a step further to determine how profitable this expansion will be for the
company. Since two members in the group are equipped with sound knowledge in
financial modelling, we decided to create financial projections for the business. Based
on the prices of the popular products, such as the Hoggs of Fife, we were able to
project sales revenues and total costs assuming the business begins full operations in
the U.S. in the year 2017 (Fig. 22). This was done based on the current total amount of
sales of outdoor equipment in the U.S. However, it is important for the business to take
note that the projected figures are based on assumption and informed projections, thus
it could be subject to change.
Figure 22: Projected Sales Revenue and Total Costs
£35,000
£30,000
£25,000
£20,000
Sales Revenue
£15,000 Total Costs
£10,000
£5,000
£0
Year 1 Year 2 Year 3
37
6. Evaluation
During the execution of this project, varying degrees of success was achieved. To this
end, we were still able to achieve material contributions that have severed the success
of the project and have created value for the business.
Gathering data for the U.S. was a challenge for the group in that it was difficult to obtain
U.S. citizens or residents to complete the survey. However we approached the School
of Management to assist us by sending emails to every U.S. student within the School
of Management. To augment what we thought may be a low response, we also decided
to send it to friends and relatives in the U.S. They helped even further by sending the
survey link to other people they knew that were from or lived in the United States of
America. Although we had a relatively low number of respondents but we were happy
to use his sample
We were determined to conduct a social media campaign, as this would have had a
huge impact on social media awareness. Our plan was to increase traffic to the
company’s website via Facebook and Instagram and to also track the number of people
going to the website as a result of our promotion. We also wanted to increase
conversion rate thereby increasing sales. However, this idea was constrained by time
and the business advised us not do the campaign (see Appendix N).
Notwithstanding, we were able to achieve all our four objectives. In so doing the group
aim too was achieved. Most of our efforts worked and added substantial value to the
business such as: re-designing the company’s website and logo, rebranding,
conducting interviews, and questionnaires, designing a landing page for the U.S.
The group’s success was especially evident in determining the natures of the U.K and
the U.S market, which understanding will serve management decision making in the
near future. Furthermore, the group successfully revealed the impact of customs and
38
excise duties, which in-turn would affect end consumer pricing. This initiative further
highlighted the supply chains issues including best delivery methods and quantities.
The group success is further evident in their highlighting of the opportunities and
threats of this new market. Opportunities included the market size and areas of greatest
outdoor spend, whilst threats were identified as the scale and scope of competing
companies, strong recall for high visibility brands such as North Face and L.L bean.
All of the success achieved was made possible through the adoption and close
attention to the project log.
39
7. Conclusion
This project was better for the group’s contribution rather than individual effort.
Although we faced certain challenges as each member had their different views and
interpretation on different subject matters. Having to constantly align each member’s
contribution with the project requirement was difficult. It was a challenge to reduce the
information and data collected to a concise and informative report
The group was able to identify likely risks that the business might face which include
long established competitive companies, high visibility brand with strong recall,
customer loyalty to these brands, currency fluctuations and changes in domestic policy
in respect to customs and excise duty.
Moreover, this experience is one that the team would be happy to repeat again as it
grows experience, knowledge and understanding of the business environment. Overall,
we are confident that it was worth the effort because we achieved our aim and
objectives and positioned the business for better-informed decision-making. We also
believe that the organisation would be well advised to execute this project again, but
40
would derive even greater benefit if their prevailing circumstances, including financial
information, margin management, procurement, etc. were more revealing to the group.
41
8. Recommendations
The success of this expansion strategy lies in showing a strong sustainability plan.
From the group’s effort we strongly recommend a market penetration particularly in the
West North region of the U.S where outdoor participation is greatest. The purpose
should be aimed at increasing product sales and consequently market share.
Penetrating the market would not rely on a single strategy but several tactics that are
described in the subsequent paragraphs.
It is important to grow the strong visibility of the brand, as this will therefore increase
brand recall. It would also serve to strengthen the domestic market whilst
simultaneously compliment the US expansion strategy. Social media plays a huge role
in achieving this. As a result, it is very important that Cherry Tree Country Clothing
conduct an aggressive social media campaign on major social media platforms such as
Facebook, Twitter and Pinterest. However business is unable to successfully run this
campaign themselves, then it could be outsourced to public relations experts.
Critically, the company in the wake of the cultural nature of the US communication style
should be specific and interesting in their marketing communication. We have partly
addressed this issue by making recommended changes to both logo and website (see
appendix O), using less text and more visual aids. We recommend this because the US
market clearly responds positively to clear product promotion. These recommendations
would be further optimized through social media, brand awareness and product
knowledge communications.
42
Critical for a long term pricing competitiveness, we recommend partnering with local
agencies whose local market knowledge will serve to reduce risk and decrease the
company’s cost of excise duties. Consumers can be discouraged by the delivery
charges and may opt for a local company whose charges are much minimal. Therefore
having a local agent, who can stock the business’s product, will minimise distribution
cost and encourage more sales.
43
9. References
Afuah, A. & Tucci, C. L., (2003), Internet business models and strategies: texts and
http://www.aspca.org/animal-homelessness/shelter-intake-and-surrender/pet-
http://www.businessdictionary.com/definition/product-knowledge.html [Accessed 12
Mar. 2016].
Byhlin, H. and Holm, E. (2012). Entering the Chinese e-merging market: A single
case study of business model adjustment. 1st ed. [ebook] North Sweden: Umeå
44
Cheung, G. (2011). Brand Analysis: The North Face. [online] Slideshare.net.
Cho, J., Lee, H. E., Kim, S. J., & Park, D. (2015). Effects of Body Image on College
doi:10.1080/0267257X.2010.489815
Craig, B. R., Jackson, W. E., & Thomson, J. B. (2009). The Economic Impact of the
221-231. doi:10.1111/j.1540-627X.2009.00269.x
Douglas, S. P., & Craig, C. S. (1989). Evolution of Global Marketing Strategy: Scale,
45
FedEx, (2016). [online] FedEx. Available at:
http://www.fedex.com/ca_english/international/regulatorynews/mpf.html [Accessed
22 Mar. 2016].
FOX, (2015). FCC approves sweeping Internet regulation plan, Obama accused of
http://www.foxnews.com/politics/2015/02/26/fcc-approves-sweeping-internet-
Fox, S. (2012). The e is for engagement. [online] Pew Research Center: Internet,
Gabrielsson, P., Gabrielsson, M., & Seppäl, T. (2012). Marketing Strategies for
Gillespie, K., & Hennessey, H. (2010). Global marketing / Kate Gillespie, H. David
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Gladwin, T. N. (1981). Culture's Consequences: International Differences in
doi:10.5465/AMR.1981.4285738
28(5), 47-61.
Hamel, G., & Prahalad, C. K. (1985). Do you really have a global strategy?. Harvard
Hofstede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations:
1(2), 59-88
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Jenner, S., MacNab, B., Briley, D., Brislin, R., & Worthley, R. (2008). Cultural
doi:10.1080/08911760802135582
Katsikeas, C. S., Samiee, S., & Theodosiou, M. (2006). Strategy fit and
Kim, D., Pan, Y., & Park, H. S. (1998). High- Versus Low-Context Culture: A
15(6), 507-521.
Lee, C., Kim, J., & Chan-Olmsted, S. M. (2011). Branded product information
search on the Web: The role of brand trust and credibility of online information
doi:10.1080/13527266.2010.484128
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Lightner, N. J. (2004). EVALUATING E-COMMERCE FUNCTIONALITY with a
doi:10.1145/1022594.1022599
93(10), 66-72.
Miller, R. K., & Washington, K. (2016). PART I: THE U.S. SPORTS MARKET:
Marketing, 51-52.
49
Novak, A. (2013). Relations Between the Business Model and the Strategy.
Governance, 214-222.
http://www.outdoorfoundation.org/pdf/ResearchParticipation2015Topline.pdf
Richardson, M., & Evans, C. (2007). Strategy in Action Applying Ansoff's Matrix.
50
Schaffer, B., & Riordan, C. (2003). A Review of CrossCultural Methodologies for
The outdoor recreation economy. (2012). 1st ed. [ebook] U.S.A: outdoor industry
http://file:///Users/faithabolarinwa/Desktop/OIA_OutdoorRecEconomyReport2012.pd
The world bank, (2016). Internet users (per 100 people) | Data | Table. [online]
51
The world bank, (2016). United States | Data. [online] Data.worldbank.org. Available
https://www.cbp.gov/travel/international-visitors/kbyg/customs-duty-info
52
10. Appendices
10.1. Appendix A
53
10.2. Appendix B
Teaching Block 1
Week 2
Date: 5/10/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack,
Group had first meeting and introductions
We made a list of the companies we would like to work with; this was based on
individual priorities.
Everyone had done some research as to why they chose the business they did,
and how it will benefit the entire team if we chosen a particular business.
Week 3
Date: 12/10/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
Narrowed down the companies we would like to work with into the top three
priorities based on our research.
Week 4
Date: 19/10/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
We discovered that we were working with Cherry Tree Country Clothing and
emailed them regarding what the group are able to do for them.
Finally we discussed possible ways through which we can tackle the report as a
group.
54
Week 5
Date: 30/10/2015
Venue: Supervisors Room in School of Management
Time: 6pm
Participants: StefaniaBoscari, Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
We had our first meeting with our supervisor Stefania Boscari, we introduced
ourselves to her.
She then presented us with documents entailing the ethical procedures fro
collecting primary data for the business. We were told to go through each ethical
concern as instructed by the University.
Week 6
Date: 4/11/2015
Venue: Library
Time: 9am
Participants: Bethan, Ava, Odufolakemi, Faith, Mofe, Sasha
The group had our first Skype call with Bethan from Cherry Tree Country
clothing
We introduced ourselves and discussed the project brief as well as the outcome
of the project
The team was able to ask questions during this meeting and Bethan was helpful
in answering them.
Week 7
Date: 9/11/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
Group came together to discuss about the outdoor industry
Each member was told to do some research about the U.S outdoor industry and
the potential threats that exist in the market.
55
Week 8
Date: 16/11/2015
Venue: Library
Time: 6pm
Participants: Ava, Odufolakemi, Faith, Shadrack, Mofe, Sasha
We discussed the findings of our result as posed in the previous meeting
Each member was to also research on the differences between the United
Kingdom and North America
Work has been split up, by Monday 23 November each group member should
have finished their individual research on each section they were assigned
Group will now come up with aims and objectives of the progress report, as well
as going through introduction stage
Discussed how the group has to research the U.S.A (Tax, Customs, Pestle)
Group trying to figure out cultural differences in the USA (we were confused on
the exact culture to focus on)
Every member of the group has brought individual sections of literature review
56
Group had another Skype call with Bethan as we discussed how we were
progressing with the report and we continued to ask any questions we did not
understand from the project brief
Questions were asked about expansion into the U.S, the business confirmed
that were already sending out parcels to the U.S
Discussing the location to carry out the survey; we agreed online, Singleton and
Bay campus
Ensure participants know exactly what the survey will be for – for a primary
research conducted by students of Swansea university and for Cherry Tree
Country Clothing, state
57
The group is working on the evaluation part of the report
Put together theory, data and information gathered to try come up with a
conclusion
(All group discussions during exams and the holiday period were online as well
as Whatsapp)
Teaching Block 2
8 February 2016
Venue: Library
Time: 2pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
Based on the feedback from the progress report, we are putting together more
detailed questions for our survey that will be more relevant and logical
One questionnaire would be based on outdoor activates in the US and the other
will be based on outdoor equipment.
Setting out deliverables for the teaching block and the set time to achieve each
target and compete each task.
58
Discussed ways to reach more respondents
She gave us ideas on our primary research- collecting data from both UK and
US respondents.
Working out how tax, customs and exporting works in the USA
Beth from Cherry Tree informed us through email that the social media might be
an impossible task due to time constraint.
59
Organising Easter Break times to meet up
Trying to gather information and proof of everything group has done for personal
reflection
60
Venue: Student Accommodation
Time: 1 pm
Participants: Ava, Odufolakemi, Faith, Mofe, Shadrack, Sasha
Final rehearsal before presentation tomorrow, timing and delivery went well
22 April 2016
Venue: School of Management
Time:12pm
Participants: Ava, Odufolakemi, Faith, Mofe,
Discussed the individual report, our supervisor was explaining that there is no
particular format.
25 April 2016
Venue: School of Management
Time:3 pm
Participants: Odufolakemi, Faith, Mofe, Shadrack, Sasha
Group came together to finish compiling our final year project
26 April 2016
Venue: School of Management
Time:3 pm
Participants: Odufolakemi, Faith, Mofe, Shadrack, Sasha
Finalising group report, nearly finished
61
10.3. Appendix C
62
10.4. Appendix D
63
10.5. Appendix E
64
10.6. Appendix F
Q1. This survey is being carried out by Swansea University Third Year Students, in
order to gather primary data for their Final Year Project. Names and other personal
information are not required to partake in this survey (anonymous), and answers are
kept completely confidential.
If you are satisfied with this, please select "YES" to move on with this survey, and if not,
please select "NO".
Yes
No
Male
Female
18 – 24
25 – 34
35 – 44
45 – 54
55 – 64
65 – 74
75+
65
Some college, but no degree
Associate degree
Bachelor’s degree
Graduate or professional degree
Hiking
Climbing
Mountain biking
Bird watching
Rock climbing
Road cycling
Wild camping
Other: _________
Student
Employed full-time
Employed part-time
Unemployed
Other (please specify): ____________
Your yard
Park or other area in your neighbourhood
Park or other area outside your neighbourhood, but within your town/city
66
Park or other area outside your town/city
Other (please specify): _____________
Yes
No
67
10.7. Appendix G
68
10.8. Appendix H
Q1. This survey is being carried out by Swansea University Third Year Students, in
order to gather primary data for their Final Year Project. Names and other personal
information are not required to partake in this survey (anonymous), and answers are
kept completely confidential.
If you are satisfied with this, please select "YES" to move on with this survey, and if not,
please select "NO".
Yes
No
Male
Female
18 – 24
25 – 34
35 – 44
45 – 54
55 – 64
65 – 74
75+
White
Black or African American
69
American Indian or Alaska Native
Asian
Native Hawaiian or Pacific Islander
Other (please specify): _________
Caucasian
Q5. In which region of the United States of America do you or have you lived in?
Yes
No
Hunting
70
Shooting
Walking
Dog Walking
Hiking
Camping
None
Other (please specify): ________
Online
In-store
Either online/in-store
Q9. How would you rate the elements below when purchasing outdoor clothing?
Not important at all Slightly important Important Very important
Quality
Price
Returns
Policy
Customer
Service
Q10. Have you ever used a third-party/e-commerce website such as Amazon or eBay,
to purchase outdoor clothing?
71
Yes
No
Q11. If you were to shop online for outdoor clothing. how would you do so?
Mobile
Computer
Either Mobile or Computer
72
10.9. Appendix I
Introduction
Odufolakemi: Hello guys, we are a group of final year students pursuing our final year
project at Swansea University. We have been assigned to a company called Cherry
Tree Country Clothing, which sells different brands of outdoor clothing and equipment.
So our main task here and our main objective is to create an international sales
strategy in order to raise brand awareness in the United States of America, even
though their based in Wales in the United Kingdom. So in this video we are going out to
interview people from the United States of America and the United Kingdom as well
and how they engage in outdoor activities, how often they do it and if they actually buy
outdoor equipment and where they buy it from. And if they're willing to switch brands,
what factors would they take into consideration when changing brands. So it's basically
all about that and getting to know about the outdoor activity industry, thank you and i
hope you enjoy watching this.
Interview 1
Odufolakemi: Hello
Interviewee: Hi
Odufolakemi:: Sorry where are you from?
Interviewee: I'm from London
Odufolakemi:: So you're in school here?
Interviewee: yeah I'm in the school of management
Odufolakemi:: do you live in Swansea as well?
Interviewee: yeah as a student, as a student yes
Odufolakemi:: So you said as a student, do you do any other thing, apart from uni?
Interviewee : Not really no
Odufolakemi:: So do you have a part time job or anything?
Interviewee : No
Odufolakemi:: Do you engage in any outdoor activities?
Interviewee : I cycle occasionally and i also play football occasionally, don't really do
anything
73
Odufolakemi:: So about cycling, of course you bought a bicycle, where did you get this
bicycle from?
Interviewee: I got it from a store in Swansea when I first got in uni, I was living in the
student village and it was a quicker way for me to get to uni and that's how it started
Odufolakemi: Do you remember the name of the bicycle you got?
Interviewee : Sorry no
Odufolakemi:: Why did you choose that particular one?
Interviewee: It was in my price range, its good for hills and its quite heavy
Odufolakemi:: So that means you take price into consideration when you buy, so is
there anything you like apart from cycling, i know you do football, apart from that, any
other thing?
Interviewee : No
Odufolakemi: Have you ever heard of Cherry Tree Country Clothing?
Interviewee : Not before this no
Odufolakemi:: Is it through us or were you able to get knowledge of them from
somewhere else?
Odufolakemi: So Cherry Tree Country Clothing is an outdoor store, it has different
brands and equipment like jackets, stuff for hiking, stuff for walking, stuff for cycling,
anything really and its based in Wales. We are just trying to increase the brand
awareness by telling people about the company by interviewing people and that's it
Interviewee :okay
Odufolakemi: Thank you for the interview
Interview 2
Faith: Okay and you go hiking as well?
Interviewee :Yeah
Faith: How often do you do it?
Interviewee : With soccer I play after every two weeks, and hiking I do it every day
because that's the normal thing to do
Faith : Okay, where are you from?
Interviewee : I am from the USA
74
Faith : In the US, where in the US?
Interviewee: I live in California
Faith : Okay nice, so do you buy outdoor equipment? obviously you said you do hiking,
so what equipment do you use?
Interviewee : The most important thing to buy are hiking boots, they are high range but
they are strong and have a strong force level
Faith : Okay so you buy these boots from the US?
Interviewee : Not necessarily, I tend to buy it online
Faith : Oh you buy online? When you're buying products online, you can't see them
physically, what are those things you consider when buying your hiking boots online?
Interviewee : There is mostly three things, the price, the brand name and i look at
reviews to see how good the boots are
Faith : Oh to see what customers said about it, okay regarding pricing, if the price is too
high you're not going to buy it?
Interviewee : Not necessarily because with hiking boots the quality tends to match the
price, so the higher the price the higher the quality
Faith : So you would go for a higher price? You're rich!
Interviewee :Not necessarily
Faith :Okay so what brand do you buy?
Interviewee : Jack Wolfskin
Faith : Why do you like that brand?
Interviewee : It's the most respected brand
Faith : In the US?
Interviewee : In the world in general, its mainly a United Kingdom provider, they are
based in the United Kingdom so you can't really get it in the US. So you have to buy
online
Faith : Okay so would you be willing to switch brands?
Interviewee : If there is something of better quality I see, I will definitely buy
Faith : What if you get of the same quality but lower price?
Interviewee : I am ready to compromise and do that
Faith : Okay have you heard of Cherry Tree Country Clothing?
75
Interviewee : No no
Faith : Cherry Tree Country Clothing is a retailer in Wales, retailing outdoor equipment
and clothing, so you can check on their website and you can check them on Facebook
as well, I'm sure you might find some hiking boots. It was nice speaking to you
76
10.10. Appendix J
77
As an aside be aware that less than 25 percent of U.S. business ventures abroad are
successful. "A lot of that is because Americans don't do their homework or because
they think the rest of the world should do business the way they do business,"
Therefore :
Build a relationship before you get down to business. "That entails making
small talk and getting to know one another without [immediately] getting into
business discussions," she says.
Don't impose time limits. "Keep [the meeting] as open as possible because it
adds strength to your negotiating position."
Do your research. This applies to both the greater target market and to the
geographies most suited to your "product profile".
Dress with respect and authority. This should be self-explanatory. If it's not,
seek the help of an image expert.
78
Brush up on your documentation and export licensing procedures. If you find it
too time consuming, hire a freight forwarder who can fill you in on the spot. Ask a lot of
questions. Use their expertise to your advantage.
Set up terms, conditions and other financing options. Agree on terms of payment
in advance, and never, ever sell on open account to a brand new customer. No ifs,
ands or buts. Just don't.
You can eliminate many foreign distributor prospects by deciding whether you
need a stocking or non-stocking distributor. Stocking distributors are generally
larger firms that will commit to purchasing an inventory of your product.
79
The best distributor will be one with a track record selling to the companies or
consumers who are target markets for your product.
You will want prompt, competent responses to your requests for information
or service. Make sure your phone calls, faxes and e-mails are answered in a
timely, satisfactory fashion.
Meet your prospects in person, and, as always, get and check references.
The Internet is having a large impact on the way international business is conducted.
This impact is especially significant when it comes to finding leads for international
trade partners. You can look at TradeNet, the U.S. government's online trade-matching
service, for numerous links, databases, message boards and other tools.
Shipping procedures are a paramount concern when moving products long distances.
High-value items may be shipped by air, but many products come by ship. This often
means transit times measured in months, with the associated risks of missing market
opportunities.
80
10.11. Appendix K
81
82
10.12. Appendix L
83
10.13. Appendix M
84
10.14. Appendix N
85
10.15. Appendix O
86