Evolve UK Webinar – Pricing

This webinar,  in  conjunction with Simon-Kucher & Partners, examines the most important profit driver; Pricing. It will also discuss how professionally managing pricing can add millions to your bottom line.

Chaired by Deirdre McPartlin, Manager of Enterprise Ireland UK, with expert insights from Simon-Kucher & Partners, a leading global consultancy specialising in top-line growth strategies with 35 years of experience with monetization topics of all kinds – from pricing strategies, customer segmentation, user experience, offer design, and packaging, to negotiation techniques, and sales excellence.

    • Mark Billige – CEO

    • Peter Colman – Partner

    • Phil Derby – Business Partner, Ireland

     

    One Planet. One Health – Danone and GreenPlus

    “The health of people and the planet are intertwined.  You can’t have one without the other”, states Mark Stafford, Nature and Sustainability Manager at Danone, Wexford.

    Danone’s mission is to bring health through food to as many people as possible with high quality products contributing to all life stages. This is where sustainability and the environment comes in and it is one of the four key pillars at the company – they have now adopted ‘nature’ as a business fundamental for all supply points and sustainability roadmaps for their brands.

    The company used Enterprise Ireland’s GreenPlus scheme to empower line management and teams to manage and improve energy performance at basic unit level and they have now achieved certification to the prestigious ISO 50001 International Energy Management Standard.  This standard aims to help organisations to continually reduce their energy use and therefore their energy costs and their greenhouse gas emissions.

    Through their work with GreenPlus, the Energy Management System (EnMS) at Danone has now been implemented successfully across the site, system accreditation has taken place and a number of energy saving opportunities have been identified. This has enabled the company to implement solutions and their annual energy savings are now measured and verified.

    So how was their journey with Enterprise Ireland’s GreenPlus and what were their main challenges? Peter Pearson, Nature Co-ordinator explains: “We started looking at the gaps and found the biggest gap was metering.  Data monitoring and reporting systems presented a challenge as the metering available on-site did not satisfy our requirements with regard to reporting detail and frequency”.

    “Going down the ISO 50001 route focused our minds on the areas we needed to tackle. It raised awareness within the company.  It identified savings and improved our knowledge on the use of energy onsite.  We found the process easy to navigate and it was fairly straightforward. It was great to have the support of Enterprise Ireland and it was very helpful.”

    Danone aims to become carbon zero across their value chain by 2050 and to do that all elements of the business need to become carbon neutral. “Our plant in Co. Wexford has become the first infant formula production site in the world to be certified as carbon neutral.”

    “Our net zero carbon rating has been certified by the Carbon Trust, an independent global climate change and sustainability consultancy,”  said Stafford

    Explaining the benefits across Danone of engaging with GreenPlus, he pointed out that “We needed buy in from management which we quickly achieved and it was also important to make all employees aware of where we needed to get to and our ambitions. We weren’t surprised that through the GreenPlus process we identified many opportunities – we knew they were there but just didn’t have visibility of them.  The process helped us to pinpoint exactly where we needed to make improvements”.

    “As part of our roadmap for the project there was also a huge focus on energy reduction and efficiencies and implementation of the ISO 50001 was crucial to that journey”.

    From a business perspective, Mark Stafford and Peter Pearson point out that consumers and customers are looking for sustainability more and more and all the research backs this up.  The expectation is there and that goes for all activities within a company.

    “The feedback is that people want more sustainably produced products and environmentally friendly products.” 

    “All employees are now aware of where we need to get to.  We have nature champions across our business units and they are now bringing in their own ideas in relation to sustainability and the environment for our brands.  There are a lot of projects now going on in the company. This includes our intention for all of our supply points and business units to be BCorp certified. We know where we are and where we need to get to and what we want to achieve.  We are very focused.”

     To get your business ready for a green future visit Climate Enterprise Action Fund or contact the Climate Action Team

    Key questions to ask at your Canadian Market Advisor meeting

    Canada is an affluent, high-tech industrial society with a market-oriented economy, low inflation and high living standards and has recently strengthened its close trading relationship with Ireland.

    If you are considering doing business in Canada, your first step should be a call with our team in Toronto.

      The questions below were designed to help Irish businesses get the best out of their first Market Advisor call

      • What should I be aware of as I start to think about exporting to Canada?
      • Do I need to localise my products or services for Canada in any way?
      • Are there any differences between Canada and the USA market?
      • Is there a trade deal or are there any trading barriers I should be aware of?
      • Do I need a local presence and is it easy to establish one?

      Set up a call with our team in Toronto today and also check out our Going Global Guide.

       

      Enterprise Ireland’s top tips for entering the Canadian market can be viewed by clicking the graphic below.

      Evolve UK  Report – UK Local Authority Report: An Overview

      The UK remains the largest export market for indigenous Irish companies.

      A new focus for Enterprise Ireland in the UK is to support Irish companies looking to enter the UK Local Authorities space.

      This report examines:

      Where the requirements are

      Who makes the decisions

      What is the purchasing process

      In short how do you sell to the local authority market. As with any sales process it starts with really knowing and understanding your customer. Read the below report to learn more.

       

      Evolve UK Webinar – Selling to the NHS in the post-Brexit era

       

      The NHS provides a significant opportunity for suppliers and will continue to do so beyond January 1st 2021.

      This webinar places the spotlight on Digital Health and Health IT with insights into how you can sustain and win business with the NHS beyond January 2021. It was developed to inform Irish businesses considering selling to the NHS for the first time as well as those needing additional information about the overall UK healthcare landscape and the various procurement pathways.

      Hosted by Marie-Claire Henry, Senior Market Adviser – Healthcare & Lifesciences, Enterprise Ireland and Martin Bell, an expert in the UK healthcare sector.

      The webinar will feature:

      – Building relationships

      – Navigating the NHS landscape

      – Building credibility

      – Regulation & procurement

      – Market entry to sustained growth

      For any queries around selling to the NHS, please email Marie-Claire Henry.

      Evolve UK – Pharma Manufacturing Sector webinar

       

      This webinar forms part of the Evolve UK Webinar series and provides an overview of the UK Pharma sector including the regional clusters and the main UK pharma manufacturers.

      Hosted by Laura Brocklebank, Senior Market Advisor for UK Manufacturing and Heike Owen from Shibumi Consulting Ltd the webinar will look at the opportunities, challenges and hot topics in the UK Pharma sector. 

      Download the supporting report here

      Evolve UK – Local Authorities webinar

       

      This webinar forms part of the Evolve UK Webinar series and gives an insight into  how UK local authorities are developing new ideas and innovative ways of providing services.  With more than £100bn expenditure per year on a wide range of services across the UK, it is an attractive proposition for any supplier.

      Hosted by Enterprise Ireland’s Laura Brocklebank with expert insights from Go-Exporting’s Mike Wilson, the webinar will examine:

      • Changes in Local Authorities Structure

      • Local Authority Funding Update

      • Key Investment Areas of councils

      Opportunities for Irish suppliers

      • Impact of Covid-19 on UK local authorities

      PIXAPP – Shedding light on PIC packaging

      “PIXAPP is more than just a project; like all Horizon support I look at it as seed funding to grow your activity.”

      Professor Peter O’Brien, Director of PIXAPP Photonics Packaging Pilot Line Horizon 2020 open call project

      Overview:

      • Tyndall National Institute in Cork is leading an international consortium that is establishing ‘best in class’ photonic integrated circuit (PIC) packaging technologies
      • The PIXAPP project is funded by the European Union’s Horizon 2020 research and innovation programme
      • The European Commission has recognised PIXAPP as a flagship pilot manufacturing capability in Europe.

      Photonics is the future. In devices ranging from hand-held cardiovascular monitors to self-drive cars, photonic integrated circuits (PICs) are revolutionising technology, enabling significantly higher capacity and speed of data transmission.

      Its huge potential to address socio-economic challenges in areas such as communications, healthcare and security, has led the European Commission to invest heavily in programmes to advance PIC technologies. But with most developments focusing on the PIC chips, the challenge now relates to packaging, that is, connecting the chips to the real world though optical fibres, micro-optics and electronic control devices.

      To address the challenge, a €15.5m project, involving 18 partners and led by the Tyndall National Institute in Cork, has established the world’s first open access PIC assembly and packaging manufacturing line, PIXAPP.

      “The assembly and packaging challenges are considerable and it’s hugely expensive for manufacturers. PIXAPP provides a single point of contact, the Gateway, at Tyndall, through which businesses can access expertise in industrial and research organisations across Europe to translate their requirements into the best packaging solution. It’s a major step forward to enable the conversion of R&D results into innovative products,” explains Professor Peter O’Brien, co-ordinator of the Horizon 2020-funded PIXAPP pilot line.

      The importance of sustainability 

      When PIXAPP started in 2016, the ability to package PICs was dispersed across several European companies and institutions, each of which could only do a few steps in the process.

      “Our aim was to make a diversified, distributed pilot line, which meant coming up with a common language of design, materials and equipment standards that could seamlessly move across different countries.” says O’Brien.

      With PIXAPP due to end in October 2021, the issue of sustainability is key to ensuring progress in the area of PIC packaging continues.

      “One of the key things we had to show in our Horizon 2020 proposal was a sustainability plan. We can’t just walk away after four years. We’re now engaged with over 120 companies around the world and many of them are gearing up to do the whole packaging process themselves, working with the technology standards we’ve developed.

      “Ultimately, that’s what success looks like for us, where we can step back and industry takes on the high volume packaging work. There are still risks involved for companies but we can help reduce those by sharing or advising on equipment and we can train their engineers, which is an important part of what we’re doing.”

      O’Brien’s team has also secured funding from the Disruptive Technology Innovation Fund, which will help with regional sustainability.

      “When we got the DTIF funding the Commission was delighted because that’s the kind of regional investment they want to see,” says O’Brien.

      Insights for Horizon 2020 success 

      Applying for Horizon 2020 support can be daunting but O’Brien has extensive experience and offers some insights.

      The key to a successful proposal is addressing the call requirements, in terms of scientific excellence, impact from project results including dissemination and structure of the workplan. It is also important to ensure the proposal reads as one document, rather than a large number of small documents complied by partners into a single proposal. Ideally, the coordinator should write the full proposal, taking input from all partners. This will ensure the proposal has one voice, making it easy for reviewers to read, understand and enjoy.

       “Enterprise Ireland gave us support to write the proposal and it’s important to use their expertise as well,” says O’Brien.

      The right partners are also central to success.

      “You need to have partners that you trust and who trust you, so you have a shared vision, and you need to work with them well in advance; don’t form consortia based on a call. Our funding success is is high, and we like to work with the familiar partners but it’s also exciting to work with new partners who can bring new technologies and insights. Spending time out of the lab meeting partners, including new partners is important. Visits to Brussels to are also important to stay ahead of upcoming calls and as a central location or HQ to meet partners and future collaborators.”

      Tyndall’ photonics packaging group is currently involved in 15 European projects and has recently participated in €19m project for a new Photonics Innovation Hub called Photon Hub Europe.

      O’Brien also feels strongly that projects should not be seen in isolation.

      “All our projects are strategically aligned so we’re leveraging capabilities from one project to another. A focus on your core technical capabilities is important. And it’s a continuous thing. You have to keep working on proposals, stay up to speed, don’t dip in and out.

      “The big benefit of being involved in Horizon projects is the contacts networks and the relationships that you make. You should think of the funding as seed funding to grow your activity. I don’t like the word project, because that suggests it’s done when it’s done. I think the Commission likes to think that every project is seeding something else much bigger.”

      For advice or further information about applying for Horizon 2020 support please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie

       

      Pricing Excellence: Irish exporters need to develop a robust pricing structure to safeguard their business

      

      We are currently entering a period of high inflation, with prices rising in the EU, the UK and the US. Even at home, the Irish Consumer Price Index rose to 1.7% for the year to May 2021. But after several years of stable prices, many companies are unprepared for the commercial implications of inflation, leaving them vulnerable both now and in the future – and this, according to the results of the Pricing Excellence study recently commissioned by Enterprise Ireland, is a very real worry for Irish companies operating in every country.

      Having a robust pricing strategy is important in every sector, but thanks to a prolonged period of low inflation, this skill has been underused and underdeveloped. “Pricing is a fundamental capability and relevant in every market,” says Deirdre McPartlin, Director UK at Enterprise Ireland. “It’s not a dark art or something mysterious, it’s a strategy that companies need to develop and fine-tune over many years. It has even been described as a ‘memory muscle’ that unfortunately has weakened over the years of low inflation. A pricing strategy requires both skill and confidence, and these can – and must – be learned and developed.”

      Why a good pricing strategy is so vital

      “For business to business companies, many of the SMEs we look after are dealing with powerful procurement departments that are highly skilled at getting the lowest prices,” says Deirdre. “Or they may be going up against bigger corporates that have very sophisticated pricing systems and strategies. And with online marketplaces and increased digitalisation, pricing is more transparent than ever – but it’s hard to explain value in those instances or compare like with like. And then there are companies with something completely new – how do you set a pricing strategy in a brand-new market?”

       

      Not charging enough

      An increasing number of Enterprise Ireland client companies have reported that they are finding the subject of pricing strategy more challenging recently. “We see clients that are so skilled at innovating, that work incredibly hard in winning a customer and in keeping a customer,” says Deirdre. “But they say that trying to monetise that innovation requires skill and confidence, so that pricing is not just ‘cost plus’.

      We see customers with order books going out 18 months and yet they’re operating on the thinnest of margins – so they clearly have a very valuable product or they have customers that they’ve maintained for 10 years but they’re not getting the profit margin.” says McPartlin

      If you are struggling to find the margin to invest in sales & marketing or R&D to grow and protect your business, but you’re keeping your customers, then maybe you’re not charging for all you provide.”

      To look at the challenges being face by Irish companies around the area of pricing, Enterprise Ireland partnered with international pricing and strategy consultancy Simon-Kucher & Partners to conduct a survey of Enterprise Ireland client companies on pricing strategy. This was the first multi-sectoral pricing survey of Irish companies, and the results were compared with the global averages from Simon-Kucher & Partner’s Global Pricing Study 2021, which evaluates the pricing and growth strategies of companies across all industries worldwide.

      The study involved a survey of nearly 500 Enterprise Ireland client companies covering 12 industries. The sample included respondents across top and middle management positions in a range of B2B and B2C industries. And the results echoed what Enterprise Ireland has been hearing since the end of 2000 – that Irish companies were still producing goods and solutions valued by the market, but that profit margins were increasingly under pressure.

      According to the survey, Irish exporters have shown great resilience through the challenges posed by both Brexit and Covid-19, with 54% of companies reporting improving profits in 2020, comparing well with the global average of 59%. 

      According to the survey, Irish exporters have shown great resilience through the challenges posed by both Brexit and Covid-19, with 54% of companies reporting improving profits in 2020, comparing well with the global average of 59%.

      But with volume gain consistently identified as the key profit driver, and only 8% predicting that these improvements in profits will be sustainable in the long term, any profit gains are highly vulnerable to the impact of inflation rises.

      From the survey, 71% of respondents were planning a price increase in 2021, with 35% of respondents targeting price increases above the inflation rate and 34% planning a price increase in line with inflation. But the average realisation rate for price increases was 21%, which means that a company trying to raise prices by 2% would only achieve around a 0.4% increase on average. This puts many companies at risk of significant margin erosion – even if they were targeting for increases above inflation rates.

       

      Building skills and confidence in pricing strategy

      Price is the strongest profit lever for companies ahead of cost control and increase in sales volume, and these results clearly show that Irish exporters need to develop a sustainable pricing strategy. Not only is this important to protect profit margins, but it’s also needed to future-proof the business, by giving them the resources to invest in research and development, as well as the means to invest in important business functions like sales and marketing activities.

      “It’s not price gouging or exploitation, it’s about getting a fair price for the value that you are delivering,” says Deirdre. “We’re living in a time of inflation, which is relatively new for a lot of companies – for instance, we talked to some clients who hadn’t put in place a price increase for nine years. The study clearly shows the need for companies to invest time and skills into a pricing strategy that will equip the company for future growth and success.”

      Watch our on-demand webinar with Mark Billige, CEO of Simon-Kucher & Partners to learn the steps needed to implement a price increase process.

      How Connemara Marble continued to innovate with support from the Sustaining Enterprise Fund

      Thanks to the Sustaining Enterprise Fund, we are one step closer to recovery. In the meantime, we’re continuing to innovate. Enterprise Ireland genuinely gave us hope.”

      Stephen Walsh, Managing Director, Connemara Marble

      Key Takeouts

        • JC Walsh & Sons, Ltd. and Connemara Marble have been in business for 75 years and a partner of Enterprise Ireland for nearly as long. They specialise in tourism retail, religious goods, and marble jewelry sales.
        • The Covid-19 pandemic and world-wide lockdowns hit the majority of their sales very hard. As a result, Managing Director Stephen Walsh reached out to Enterprise Ireland and applied for the Sustaining Enterprise Fund.
        • The funding provided by Enterprise Ireland allowed Connemara Marble to reposition their business to focus on television and online sales, worldwide. They are back up to 50% capacity and foresee a steady recovery over the next year.

        Case Study: Connemara Marble

        JC Walsh & Sons, Ltd. has been in the tourism retail, religious goods, and jewellery business for 75 years. This third-generation family business owns and operates the oldest Connemara marble quarry in Ireland. They are also a longtime client of Enterprise Ireland. Managing Director Stephen Walsh remembers when his father joined a trade mission to Washington, D.C. in 1963. He stood in the Rose Garden at the White House with John F. Kennedy just months before he was assassinated. Connemara Marble has been a solid piece of the Irish business landscape for many years—and then Covid-19 happened.

         

        As a business heavily reliant on tourism, their major trading season begins on St. Patrick’s Day, March 17th, and continues throughout the summer. The Irish lockdown was implemented on March 12th, 2020.

        For us, the timing of lockdown was terrible—every cent we had was tied up in stock,” says Managing Director Stephen Walsh. “We were looking forward to a big year of sales. We were ready to fly and suddenly the wind completely changed direction.”

        Travel bans meant tourists disappeared. Connemara Marble’s religious goods market is aimed at an older crowd, who were all cocooning, as recommended by health officials. Churches were closed, pilgrimages cancelled, and sales came to a halt. Their exports business suffered, too, as presidential museums, cathedrals, and other destinations in the US and UK were closed. All that was left was their online and television sales. This remaining revenue stream was encouraging, but Walsh recognised that their business was going to need outside help if they were to survive this global pandemic.

         

        A partnership with Enterprise Ireland

        “One of the first calls I made was to Enterprise Ireland,” Walsh recalls. “They came back with an immediate response.” He was extremely thankful for the quick, positive response and agreed he first step was for Connemara Marble to work with a finance business growth advisor. Following that report, Enterprise Ireland supported the company to prepare a sustainment plan for the struggling business. A consultant came up with a strategic plan forward, which Walsh says was absolutely crucial. After this phase, they were able to apply for the Sustaining Enterprise Fund.

         

        Walsh says, “Enterprise Ireland gave us support, encouragement, and belief. They were like the cavalry coming over the hill.”

        Since Connemara Marble had tied all of their capital up in stock for the year of sales that never came, receiving the Sustaining Enterprise Fund gave them a vital influx of cash to get the rest of the business up and running. They bought raw materials to facilitate the shift to online sales. They also put money back into web development and promotion of their online business.

         

        The future of Connemara Marble

        “The Sustaining Enterprise Fund gave us the cash to support our existing business and invest in new products,” says Walsh. “Most importantly, we’ll be able to sustain our business and stay above water until recovery comes.”

        Walsh says he does not see any prospect of recovering the tourism retail business until Summer 2021, at the earliest. Instead, they are concentrating on their partnership with the shopping channel, QVC. Normally, Walsh would appear live from their studios in Pennsylvania. Due to Covid-19, they have transitioned to Skype appearances. This gives the viewer a direct window into the seller’s home, which Walsh says seems to have been a game-changer. The response has been very positive and sales with QVC have doubled since 2019. “If this is what the viewer is responding to, we’ll stick with it,” says Walsh. “It’s been a pleasant surprise to see how the market has responded to this new way of doing things.”

        Today, Connemara Marble are running at about 50% capacity, which is in line with their strategic financial plan. Walsh says with this sort of turnover, they can survive this unexpected year. He acknowledges they still have a journey ahead of them, but says they are better situated than he first thought possible.

        Walsh says, “Thanks to the Sustaining Enterprise Fund we are one step closer to recovery. In the meantime, we’re continuing to innovate. Enterprise Ireland genuinely gave us hope.”

        His advice to other companies suffering due to fallout from the global pandemic? First, call Enterprise Ireland. Then, cut overheads and concentrate on the parts of your business that haven’t been negatively impacted by Covid-19. Look around corners, search for new opportunities, and never give up.

        Click here to learn more about applying for the SEF. Contact your Development Advisor or our Business Response Unit to find out more.

         

        Key questions to ask at your Vietnamese Market Advisor meeting

        Successfully selling into the Vietnamese market earns you credibility internationally and can be a gateway to many other overseas markets.

        If you are considering doing business in Vietnam, your first step should be a call with our team in Vietnam.

          The questions below were designed to help Irish businesses get the best out of their first Market Advisor call

          • How does the market look like for my products/services?
          • Is there a demand for my products/services?
          • Who are the key players existing in the market? Competitor analysis?
          • What is the usual route to export to Vietnam?
          • What is the business culture like in Vietnam?

          Set up a call with our dedicated team today, and be sure to check out the Going Global Guide 

           

          Enterprise Ireland’s top tips for entering the Vietnamese market can be viewed by clicking the graphic below.

          Net Zero UK GA Agriculture

          Net Zero UK podcast – The UK agriculture sector – Jon Foot, AHDB

          In Enterprise Ireland’s ‘Net Zero UK’ podcast series, we discuss how the UK plans to transition to a net zero economy and the impact this will have on SMEs.

          In the fifth episode, Jon Foot, Head of Environment and Resource Management at the Agriculture and Horticulture Development Board (AHDB), discusses the latest sustainability trends in the UK agriculture sector.