Share this on
Growing abroad? No improvising, please
Gianfranco Lai - M&T Italia Srl
In a crowded automotive market, besides product quality and price, the ability to create value for the customer is becoming increasingly crucial. Here are some useful tips to facilitate the creation of a greater catchment area abroad and increase revenues.
Autopromotec is now on the doorstep, and represents a great opportunity to meet foreign buyers and operators. In fact, the international growth of our national automotive industry is becoming an increasingly relevant theme, but capitalizing on the opportunities offered by foreign markets, more competitive and selective than ever before, is far from easy.
In a crowded automotive market, besides product quality and price, the ability to create value for the customer is becoming increasingly crucial (for example new services, projects, tailor-made solutions and so on).
Without a proper plan, working haphazardly or even worse, clutching at straws, are the most common mistakes made by first-time investors, while careful planning makes up part of the international know-how of some of the most established companies, for which the participation in a fair such as Autopromotec falls within an integrated and planned program of activities aimed at increasing exports.
Here are a few tips on how to plan an effective commercial strategy.
1) Carefully define the markets in which you wish to operate without neglecting to consolidate the markets in which you are already present. Then choose a shortlist of 2-3 new markets on which to focus your efforts and investments, without dispersing human and economic resources on too many fronts.
2) In each market, business objectives must be defined in detail, avoiding general statements such as "last year's turnover plus 20% more". It is far better to set smaller and connected goals, for example "acquiring 3 new distributors in area X with an average annual turnover of Y, aiming for a turnover of Z and a contribution margin of W.
3) Determine which range of products will be offered on each market and what will be the distinctive factors of your offer compared to other competitors. In other words, why should foreign distributors and customers prefer your company’s offer?
4) Make a list of the benefits that your products or services will brings to the customer. An advantage can only be considered as such if it creates greater revenue, cost and time saving as well as fewer problems.
5) Determine the main characteristics of the most suitable distributors and customers for your company and your goals. For example, type, size, localization, specialization and portfolio of products already in hand. Then focus your efforts on finding new customers among those who possess the desired characteristics.
6) Create a promotional and communication strategy that takes into account your target countries, your objectives and the type of customers you are looking to acquire. Determine a dedicated budget.
7) Whenever possible, define price lists, standard discounts and different payment options for the different geographic areas in which the company wishes to operate. For example, discount conditions in Europe are very low compared to the Middle East.
8) Prepare an action plan to be implemented over the next 12 months, taking into account commercial strategies aimed at solving issues and weaknesses related to exports.
9) Establish an overall investment budget and verify its financial soundness and long-term viability.
10) Start your program of activities and check periodically to see whether the objectives are being reached within the established time and at the expected costs.
Dr. Gianfranco Lai
M&T Italia Srl
www.met-italia.com
In a crowded automotive market, besides product quality and price, the ability to create value for the customer is becoming increasingly crucial (for example new services, projects, tailor-made solutions and so on).
Without a proper plan, working haphazardly or even worse, clutching at straws, are the most common mistakes made by first-time investors, while careful planning makes up part of the international know-how of some of the most established companies, for which the participation in a fair such as Autopromotec falls within an integrated and planned program of activities aimed at increasing exports.
Here are a few tips on how to plan an effective commercial strategy.
1) Carefully define the markets in which you wish to operate without neglecting to consolidate the markets in which you are already present. Then choose a shortlist of 2-3 new markets on which to focus your efforts and investments, without dispersing human and economic resources on too many fronts.
2) In each market, business objectives must be defined in detail, avoiding general statements such as "last year's turnover plus 20% more". It is far better to set smaller and connected goals, for example "acquiring 3 new distributors in area X with an average annual turnover of Y, aiming for a turnover of Z and a contribution margin of W.
3) Determine which range of products will be offered on each market and what will be the distinctive factors of your offer compared to other competitors. In other words, why should foreign distributors and customers prefer your company’s offer?
4) Make a list of the benefits that your products or services will brings to the customer. An advantage can only be considered as such if it creates greater revenue, cost and time saving as well as fewer problems.
5) Determine the main characteristics of the most suitable distributors and customers for your company and your goals. For example, type, size, localization, specialization and portfolio of products already in hand. Then focus your efforts on finding new customers among those who possess the desired characteristics.
6) Create a promotional and communication strategy that takes into account your target countries, your objectives and the type of customers you are looking to acquire. Determine a dedicated budget.
7) Whenever possible, define price lists, standard discounts and different payment options for the different geographic areas in which the company wishes to operate. For example, discount conditions in Europe are very low compared to the Middle East.
8) Prepare an action plan to be implemented over the next 12 months, taking into account commercial strategies aimed at solving issues and weaknesses related to exports.
9) Establish an overall investment budget and verify its financial soundness and long-term viability.
10) Start your program of activities and check periodically to see whether the objectives are being reached within the established time and at the expected costs.
Dr. Gianfranco Lai
M&T Italia Srl
www.met-italia.com
