Promotion
Just selling your product to a foreign buyer does not necessarily guarantee that your product will sell in that market. Nor will it ensure that your volume of sales grows over a period of time. Increasing your percentage market share requires time and probably money but it is worth the investment?
You will therefore need to devise a plan to increase buyer awareness of your product to push up demand to increase your sales. Large companies often use expensive activities such as TV and print advertising, followed up by promotional gifts and discounted prices. Whilst effective, the high costs mean you may have to find cheaper and more inventive ways of reaching potential buyers.
Most companies choose to promote their products via industry specific trade shows or targeted showcasing (both of which are covered earlier in this section). Other options include targeted mail-outs, free samples to high potential clients, media stunts and radio advertising (which can often be cheaper and more far-reaching than TV or print media, depending on the location). Much will be determined by the nature of your product or service and the market you have selected.
If you are considering appointing a representative of your business in that market, then the agreement you negotiate should specify any promotional activities and the anticipated outcomes. Advice on this area can be obtained through Austrade and TradeStart.
If you choose to use free samples and trade shows as a key component of your promotional activities investigate the benefits of using ATA Carnet system to minimise the duty implications of using your goods around the world.
ATA Carnet
An ATA Carnet is a temporary importation customs document which replaces the need for depositing duty at customs posts in different countries or raising bonds. This document is commonly used for goods that are not for sale but rather are to be used as display items at trade shows and exhibitions or commercial samples.
The Chamber of Commerce can issue a Carnet and it takes approximately one week to process. A fee is normally charged. A Carnet will stipulate the countries you intend to visit, however, the key benefit of this document is that you do not need to have your goods with you when you travel. They can travel ahead of you or by different means of transport.
Packaging
Packaging of your product carries two key imperatives. Firstly that your product will arrive intact and in pristine condition and secondly that the packaging reflects the demands of the end buyer in that particular market place.
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Packaging for delivery
Often the packaging you use for your domestic client base is not suitable for export. Exported goods will undergo several more handling stages and must therefore be packaged accordingly. In most countries how you package your goods is also determined by the nature of your goods and as such must meet that country’s guidelines. This is especially pertinent to foodstuffs, beverages and pharmaceuticals which are affected by climate changes during transport.
You also need to consider the cost of adjusting your packaging as well as the bulk. Significant increases in the size or volume of your consignment will result in higher transportation costs. There are also International Standard Organisation ISO (International Organisation for Standardisation) symbols produced by the Standards Association of Australia, which you can use to indicate the handling required for your shipment.
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Packaging for sale
How you package or present your goods is often the key to your sales success. In most countries if your product is new or untried, or not supported by an extensive marketing or promotional blitz, then the “look” of your product is the only mechanism you can rely on to achieve sales.
During the planning stage you would have spent a considerable amount of time investigating potential markets for export. During the research phase it is not only imperative that you examine the packaging and labelling requirements of that country, but also how your successful competitors package their products. You must learn what your customer looks for in a product and what packaging attracts them. For example, in some countries the colour is crucial. In other countries the name of the product is the most important feature. In this instance it is essential that you investigate the foreign interpretation of your product’s branding to eliminate the possibility of impropriety or confusion.
You should also investigate whether additional labelling is required at the point of sale.
