 |
 |
 Lessons
to be Learned on the Way to the U.S. Market
By Steven M. Goodman, MBA
HSR Associates, Inc.
So, you want to export to the North America market, including the
United States and Canada. You figure the timing is right, given
that the U.S. dollar is strong compared to other international currencies,
and the American economy is doing better than most.
All you need to do is find an importer, broker, distributor, or
some combination thereof, pull together landed prices, send some
samples, and start packing your container. After all, your product
tastes terrific and your packaging is outstanding. Right?
Wrong! For years, many exporters of food and beverage products looked
upon the U.S. market as similar to theirs, just larger. When containers
didn't sell, and repeat orders didn't come in, they tended to fire
their contacts and hire new brokers and distributors, repeating
this cycle ad nauseam until they gave up.
A Good Marketing Program is Your Best Insurance for Success.
The U.S. Market is different, and has always been. In the U.S.,
we depend on multilevel distribution, and each level of distribution…importer
or broker, distributor, wholesaler, and retailer needs their own
unique marketing program. Stores in the U.S., particularly mass
merchandisers and chains, treat their shelf space like real estate,
and evaluate profit per square inch. They don't care if you are
a domestic or imported product. There is never free space available.
It's not just a matter of whether your food product will sell, they
also need to decide which product they discontinue to make room
for you.
Study the Market and Your Competition. Be aware that over
90% of new products still fail in the United States. The more
you know, the better your chance of avoiding pitfalls, not wasting
money or time. First, develop a complete and comprehensive market
survey and plan for any or several of the market segments you plan
to enter. Your potential in segments such as gourmet stores, grocery
chains, department stores, convenience store chains, club stores,
vending and catering operations, hotels, restaurants, airlines,
institutions, department stores, mail order, even the Internet,
needs to be carefully considered.
A good business marketing plan will clearly identify who are the
major players, competition, which of your products to promote (not
all may be appropriate or competitive), who should be selling the
product (brokers, distributors, direct), what type of programs are
necessary to support and sell-through the product, how to price
the product to assure the marketing program is funded and your profit
margins are maintained, among other key issues.
Prepare Your Marketing Program. Hire an experienced and competent
consulting firm in the United States to totally manage your complete
main stream marketing and sales program. They should know the markets,
the contacts and their needs. They will help you be sure that your
food products are formulated and packaged properly for these markets,
prepare the necessary in-store displays and support materials, prepare
pricing, provide a complete sales presentation to the trade that
includes what customers need to know in order to buy, recruit and
hire the best brokers and distributors, and manage sales including
making key account sales presentations. They should also keep their
ears and eyes open to new opportunities that will cost you little.
For example, can your product be packaged as a single serve for
the convenience and vending markets? Can it be bulk packed for foodservice
and service deli operations? Can it be combined with other products
to provide a complete meal for the fast-growing home meal replacement
(HMR) market? Opportunities abound, if you prepare for them.
Put Marketing Ahead of Sales and Success Will Follow. Our
company still gets calls from foreign exporters who have spent a
tremendous amount of money on trade shows and hiring sales people,
have accomplished little in the U.S., and wonder if we can rescue
them. That's too bad; we hate to see anyone waste money. If a small
part of those development funds were spent getting ready for the
U.S. market with a good marketing program, their story would have
been different.
Mr. Goodman is a marketing consultant whose specialization includes
food and beverage products imported into the North America market.
He has conducted his own professional marketing practice for over
15 years, and has held senior marketing management positions with
Procter & Gamble, Union Carbide and several multinational advertising
agencies. He also has advanced degrees in Marketing, including a
Master of Business Administration.
|
