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

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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.

Plenty to celebrate stateside this St Patrick’s Day

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St Patrick’s Day offers an unrivalled opportunity to showcase Irish business innovation to a US audience.

The traditional meeting between the Taoiseach and US President is taking place virtually this year, leveraging our important ties and connectivity with our trans-Atlantic neighbour more than ever.  

The USA remains the world’s largest consumer market, a $22 trillion dollar economy. It grew by 4% in Q4 last year and early projections for 2021 indicate further growth of 3.2%, a strong performance for a developed economy.

Increasingly Irish companies succeed here by recognising that the USA is no more one market than Europe is, and that to penetrate it they must go in state by state. California’s economy is, after all, approximately the same size as that of the UK. New York’s is approximately the same size as South Korea.

 

The Pandemic Pivot

The Covid-19 pandemic has had a significant impact, with unemployment currently at 6.9%, up from 3.5% prior to Covid, which was a 50-year low. Lockdowns vary by state but as a whole the US is a market where the pivot happened fast, and the return will too.

One of the biggest trends we see is how major US multinationals, such as Facebook, Microsoft, and many others are embracing the lessons learned. They have ‘leaned in’ to the opportunities that remote working, accelerated technology adoption and virtual collaboration have presented.

Interestingly, this has also led to a level of economic migration and mobility not seen in generations as more and more people also take advantage of operating remotely and move to less dense population centres.

The crossing of the digital Rubicon has also led to accelerated growth in sectors that were once described as emerging, these include ecommerce, cybersecurity, and digital health. There has also been a marked increase in the demand for content driven by the rapid growth in usage and choice across stream platforms. These relatively sudden supply and demand shifts always result in direct and tangential opportunities, and threats.

As people live more online, those providing back end solutions, such as data management (provision and support products and services) and security, are seeing potential for robust growth.

 

Building Back Better

Further bolstering the optimism for strong 2021 GDP growth is the economic stimulus plan put forth by President Biden, further supplemented by significant planned investment in infrastructure and the green economy. At time of writing the $1.9 Trillion stimulus plan has moved back to the US House of Representatives for final ratification, this is expected to provide significant economic stimulus across the US.

Other sectors are of course challenged. International student numbers from the US to Ireland have fallen for obvious reasons. Consumer retail, for those that have not embraced ecommerce, is struggling, and other sectors that have historically relied on a tactile or physical element to the sales process, e.g. machinery, will naturally struggle more in a virtual environment.

A big question affecting businesses, and unknown in terms of our ‘new normal’, is what airline travel will look like. Capacity is certainly not what it was pre-Covid and there are complex variables that impact this supply and demand dynamic, not least of which are staff and equipment availability. Thankfully we continue to be relatively well served on the trans-Atlantic route.

Over the past 12 months Enterprise Ireland has also leaned in to supporting our clients to stabilise, reset and recover. Supports such as the Sustaining Enterprise Fund, Online Retail Scheme, Virtual Selling programme, Competitive Start, our many management training programmes and others have enabled companies not just to cope with the challenges of selling into the US and globally, but to compete for and capture the opportunities that now exist in our new normal.

 

Virtual St Patrick’s Day Celebrations

Enterprise Ireland is walking this walk too in our traditional St Patricks Day events, having taken the traditional week-long programme of events for St Patrick’s Day and working with our Team Ireland colleagues migrating it online. Where Team Ireland would normally have the Taoiseach, Ministers, and a programme of economic, political, social and cultural events from coast to coast and border to border, we have pivoted entirely and will instead be hosting a multi-faceted programme including a series of in-depth sectoral webinars.

We are running high profile mainstream media and social campaigns this week too, to maximise the impact of St Patrick’s Day, raising the profile of Irish companies and of the Irish Advantage.

None of us knows what the new normal will look like. We do know that it will not be a simple snapping back into the old ways. Over the past 12 months we have crossed the digital Rubicon. It is now up to all of us to embrace the digital opportunities on the other side. As Henry Ford said, “Whether you think you can, or whether you think you cannot, you are right”. We can.

 

Join Enterprise Ireland USA for the ‘Ireland and the US: On Track to Getting Back’ virtual event on 16th March where senior business leaders from both sides of the Atlantic will discuss learnings from 2020, and powering growth in 2021. Register here.

 

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Customs – Country of Origin

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When it comes to customs, the country of origin of a product is critically important. And to all intents and purposes, the world is divided in three – EU member states and preferential and non-preferential countries.

 

Preferential Countries

Goods of EU origin travel freely within the EU, with no customs to deal with. Preferential countries are those with trade agreements with the EU, and all other countries fall into the non-preferential category.

Exports to and from preferential countries are subject to the rules of the trade agreement. For Irish exporters, this means proving that the goods involved are of EU origin. Importers must establish that the goods are of preferential origin, i.e. that they came from the country with the trade agreement.

 

Non-Preferential Countries

Normal WTO rules apply to non-preferential countries. This means first establishing the origin of the goods in question and then looking up the EU TARIC site to get the code for the goods and finding the relevant tariffs and other rules such as anti-dumping or quota restrictions which might apply.

Origin is essentially the economic nationality of the goods being traded. In some cases, this is easily established. These are instances where products are what is known as wholly obtained in a country. This means they have been entirely produced in that country without any goods from other countries being utilised in the end product.

 

Value-Added Rule

This would normally apply to fruit or vegetable products or basic cuts of meat. Spanish strawberries or Dutch tomatoes would be examples.

Things get a little more complicated with prepared consumer foods like frozen pizzas or other ready meal products like lasagne. The increasingly complex and globalised supply chains involved in the manufacture of such products can call into doubt their country of origin. So, a pizza manufactured in the EU, but with many of its ingredients sourced from countries outside the EU, could present an interesting case.

Origin in these cases is determined by where what is known as substantial transformation has taken place. This is decided by the value-added rule which, broadly speaking, means where most value has been added. In the case of the Irish manufactured pizza or ready meal, if the value of the finished product is significantly greater than the sum of its third country ingredients, it is deemed to be of EU origin.

 

Certificates of Origin

Certificates of Origin are required for goods being exported to countries with trade agreements with the EU. Certificates may also be required for other countries depending on the destination e.g. certain Arabic countries. Many large exporting companies have an Approved Exporter for Simplified Origin Procedure status with Revenue, and this allows them to self-certify their exports to countries with EU preferential origin status.

Companies without this Approved Exporter status have to apply for a EUR 1 certificate from Revenue for each consignment of goods to preferential countries. For newer preferential agreements with Japan and Canada, EU exporters can simply register in the REX system, without applying to Revenue for Approved Exporter status. They can then declare their exports to Japan and Canada as having EU preferential origin by means of a statement on origin placed on an invoice or other commercial document.

Where the goods are destined for a non-preferential country, a Certificate of Origin can be obtained through Chambers Ireland or one of its members.

For further information, go to a customs broker for advice or to your local chamber of commerce. If you are still in doubt after that, you will find further information on the Origin section of Revenue’s website or contact the Revenue Commissioner’s Origin and Valuation Unit.

Supporting Regional Development Critical To Future Jobs Growth

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Resilience is a word we became used to in 2020 and it is an apt term to describe how Irish business responded to the dual challenges of the Covid-19 pandemic and the end of the Brexit transition period.

For thousands of businesses across Ireland, and their staff, it has been a tough, challenging year marked by disruption and uncertainty. But what has been remarkable is how Irish businesses have responded to the impact of Covid-19 and Brexit.

At Enterprise Ireland we work closely with the Irish manufacturing, export and internationally traded services sector.  We invest in established companies and start-ups, we assist companies to begin exporting or expand into new markets and we back research and development projects creating future jobs.

This week we launched our annual review for 2020.  The good news is that the companies we are proud to support employ more than 220,000 in Ireland.  Despite the challenges faced in last year, nearly 16,500 new jobs were created, closely mirroring the 2019 outturn.

However, job losses were significantly higher than in previous years, resulting in a net reduction of 872 jobs across the companies we support.

There is no sugar coating the fact that it was a tough year for business.  However, behind these statistics are individual stories of companies taking brave decisions to change their business model, reimagine their product offering and find new ways of doing business and connecting with customers to trade through the impact of Covid-19 and Brexit.

Enterprise Ireland has worked with these companies throughout the year to ensure viable companies have the liquidity, supports and advice they need to trade, and importantly, to sustain jobs.

Enterprise Ireland supported companies have a key role in the Irish economy.  65% of employment is outside the Dublin region and these indigenous Irish companies, many of which are world leaders in their field, are critical to delivering balanced regional economic development.

Powering the Regions is Enterprise Ireland’s strategy for regional development.  It outlines specific plans for each region in the country, drawing on their existing enterprise base, their connections with third level institutions and their unique potential for growth.

The strategy is backed significant funding.  This time last year more than €40m was allocated, in a competitive call, to 26 projects fostering regional entrepreneurship and job creation.

These included the Future Mobility Campus Ireland, based in Clare, which explores the potential of autonomous, connected and electric vehicles, UCDNova’s Ag Tech innovation centre in Kildare and the Clermont Hub in Wicklow which focuses on content creation and draws on the region’s established film and audio/visual track record.  The 26 projects were supported under the Regional Enterprise Development Fund, which has seen €100m invested in similar projects since 2017.

Given the potential impact of Brexit, particularly in the Border region, 11 similar projects designed to cluster expertise and innovation were supported with €17m in support under the Border Enterprise Development Fund in 2020.

These were strategic initiatives, closely linked to government regional policy, with a medium to long-term focus on supporting regional enterprise.

However, due to Covid-19, Enterprise Ireland moved last year to provide more agile interventions to regional businesses assist them to reset and recover.

Ensuring that viable companies had the access to finance was an important necessity.  Through the government-backed ‘Sustaining Enterprise Scheme’ Enterprise Ireland allocated €124m last year to support more than 400 companies employing more than 10,000 people.  The majority of this funding went to regionally based companies.

Similarly, €8.2m in funding for 95 enterprise centres, which are critical to the start-up ecosystem and future job growth regionally, was made available in September.

Retail business across Ireland also benefitted from the Online Retail Scheme which saw 330 retailers allocated €11.8m in funding to enhance their online offering, reach new customers and increase sales.

Through a mix of strategic funding aimed at long-term enterprise development and more agile funding supports Enterprise Ireland has helped to sustain jobs throughout Ireland in 2020.  We’ve also supported those sectors, such as cleantech, construction and life sciences which continued to grow and create jobs last year.

The pandemic will have lasting effects including how we work and where we work.  Many of these long-term changes can complement strong local and regional economies.  A key element of the Powering The Regions strategy was the potential of remote working and co-working hubs that Enterprise Ireland is committed to developing with our partners.  That potential has been accelerated by the changing work patterns evidenced in the past year. Now, more than ever, having a strategic approach to enterprise development is vital, and Enterprise Ireland looks forward to the role it can play as we recover and build for the future.

By Mark Christal, Manager, Regions and Entrepreneurship at Enterprise Ireland.

New African Dawn: Launch of the Continental Free Trade Agreement

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A new year usually brings with it hope, optimism and new resolutions. The first two weeks of 2021 have however been fraught with the on-going pandemic, Britain’s exit from the EU and increased protectionism and populism around the globe. In marked contrast with this tone, one continent is pushing forward with hope, optimism and new resolutions.

The first of January 2021 saw the launch of the African Continental Free Trade Area (AfCFTA). This milestone agreement strives for greater trade cooperation on the continent. The aim is to bring together 1.3 billion people in a $3.4-trillion economic bloc that will be the largest free trade area since the establishment of the World Trade Organization. This agreement comes into force, with support from 54 of the 55 countries recognised by the African Union (Eritrea being the sole exception) is a hugely positive move.

The Agreement establishing the AfCFTA was signed in March 2018 and of the 54 Member States of the African Union that have signed, 30 countries have deposited their instruments of ratification with the Chairperson of the African Union Commission.

The main objectives of the AfCFTA are to create a single market for goods and services, facilitate the movement of persons, promote industrial development and sustainable and inclusive socio-economic growth, and resolve the issue of multiple memberships, in accordance with the African Union’s Agenda 2063. The agreement lays a solid foundation for the establishment of a Continental Common Market.

AfCFTA presents a significant opportunity to boost intra-regional trade as well as increase Africa’s negotiating position on the international stage. Intra-African trade has always been relatively low. In 2019, only 15% of Africa’s $560-billion worth of imports came from the continent – compare this with a figure of 68% in the European Union (UNCTAD).

In addition, many African nations have struggled to develop better-enabling environments for attracting investment and it should follow that this agreement will help to make the continent an increasingly attractive location for foreign companies seeking to penetrate its huge market potential.

This landmark agreement is off the starting block but there is much to be negotiated to reach the desired goal of #OneAfricanMarket.

Under AfCFTA trading, with an aim to eliminate export tariffs on 97% of goods traded on the continent, tariffs on various commodities where rules of origin have been agreed will be drastically reduced and businesses of all sizes will have access to a much bigger market than they used to before. Non-tariff barriers (NTBs) to trade will also be addressed and a mechanism for reporting of NTBs has been put in place (www.tradebarriers.africa).

In parallel to the AfCFTA, the African Union has also introduced the Protocol on Free Movement of Persons.

Though it will be years before the AfCFTA is fully implemented, the significant steps that have been taken to get the agreement to this point should not be underestimated, particularly in the current difficult global environment. Increasing prosperity on the African continent will ensure that it continues to be a continent of great interest to Irish exporters.

Enterprise Ireland has been assisting Irish companies to navigate the Sub-Saharan African market through our office in Johannesburg, along with an established and growing network of industry specialists across the continent. Contact us to learn more about the opportunities for your business in this growing export destination.

Nicola Kelly, Senior Market Advisor, Middle East, Africa & India

Conor O’Donovan: Brexit disruption can be offset by Look for Local campaign

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Thousands of Irish companies have been availing of the opportunity to promote their business through the Look for Local campaign, which was launched in November by the Local Enterprise Offices

Backed by the Department of Enterprise, Trade and Employment in partnership with Enterprise Ireland and the local authorities, the Look for Local campaign aims to highlight small Irish businesses in every sector, asking individuals to support businesses in their locality when looking for goods or services.

“The campaign is tapping into the deep well of goodwill towards local businesses that exists in communities throughout Ireland,” says Conor O’Donovan, head of global marketing and corporate communications at Enterprise Ireland. “Local companies across a range of sectors are featured on the Local Enterprise LookforLocal website.

“It is supported by national and local advertising and marketing,” he adds.

“We want to try and encourage more consumers and businesses to look local if they require goods or services in the period ahead.”

He advises any small business which wants to be featured on the LookforLocal website to contact their local LEO to make arrangements.

“More than 4,200 businesses are benefiting from the campaign which has generated excellent traction online after just a few weeks.”

The campaign is of particular relevance to companies which have pivoted and changed their business models during the year in response to the disruption caused by the Covid-19 pandemic. Since January, the LEOs have approved over 11,000 Trading Online Vouchers for small Irish businesses, helping them to establish an online trading presence, or adapt it, under the National Digital Strategy.

In addition, 330 retailers have been approved for €11.8m in funding as part of the government’s Covid-19 Online Retail Scheme, which is administered by Enterprise Ireland. The scheme is targeted at retailers which are looking to enhance their current online presence.

An online presence is also increasingly important for exporters. “A trend we’ve been seeing is that international buyers will search online before making contact with a potential supplier. It’s essential that Irish exporters have strong online visibility.”

Many small local exporting companies will now have to contend with the additional disruption caused by Brexit.

A key Brexit mitigation strategy for exporting firms is market diversification and the Enterprise Ireland Irish Advantage website offers them a shop window to buyers across the world to aid them in its execution.

Exporters and potential exporters interested in being promoted on the Irish Advantage website should contact Enterprise Ireland or their Local Enterprise Office,” he said.

O’Donovan also advises businesses to visit Enterprise Ireland’s Prepare for Brexit website.

“The site is full of resources and information to help businesses get ready for Brexit.

“On January 1 the UK will become a third country as far as trade with the EU is concerned. The Brexit Readiness Checker will take you through all the essential steps to take, including customs,” he says.

“Revenue has estimated that customs declarations will increase from 1.2 million a year at present to 20 million a year. There has been a massive uptick in visits to the site in recent months. The message is getting through that being better-informed means being better prepared and that makes for better outcomes.”

Irish companies are, by and large, retaining their existing overseas contracts, but new contracts are down this year as a result of Covid-19.

“Exporters can’t jump on planes or trains or go to trade shows, so we are facilitating them to connect with new buyers online and encouraging them to avail of funding, advisory and innovation supports available from both Enterprise Ireland and LEOs”, he said.

And there is a high degree of awareness of those supports. “That was one of the very encouraging findings of some recent Department of Finance research,” says O’Donovan.

“Almost 90pc of SMEs are aware of Enterprise Ireland supports and initiatives while over 80pc are aware of what’s available from the LEOs. That awareness will be of critical importance as we strive to help Irish companies become more innovative, competitive and diversified in order to succeed and take advantage of the opportunities that will arise in the coming year and beyond.”

Evolve UK – Guide to Social Value in Procurement

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Social Value in UK Public Sector tenders

Social Value can be described as the additional value created in the delivery of a contract to a community, beyond the monetary value of the contract itself. While Social Value has been a feature of UK public procurement over the last decade, it has grown in prominence since introduction of the Procurement Policy Note (PPN) 06/20 in September 2020. This note requires councils to include a weighting of at least 10% to social value in tenders. Therefore, it is necessary for any Irish company dealing with the UK public sector to consider social value and how they can create value in a wider community.

This Enterprise Ireland publication has been developed in collaboration with Steve Oldbury, Founder & Director, Bidwriting.com to help companies to meet the social value requirements of UK tenders and improve their capability to win business with UK public sector bodies.

This guide includes:

  • The Principles of Social Value

  • Why Social Value is so important to society

  • The importance of Social Value when tendering for work

  • Assessing Social Value and the National TOMs Framework

  • Examples of Social Value Questions

  • Actions required by companies to respond effectively to Social Value

 

 

 

Steve Keogh - Graduate Programmes

Graduate Stories – Flying the flag for Irish businesses in international markets

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Steve Keogh title

Steve Keogh participated in Enterprise Ireland’s international graduate programme working as a Trade Development Executive in the Austin, Texas, office. On completion of the programme he made the move back to Europe and is now based in Brussels working as a Market Advisor

The Graduate Programme at Enterprise Ireland gave me the opportunity to see the world while flying the flag for Irish businesses in international markets. My story is slightly different in that I’m 37 years old and ran a family business in Dublin for many years before deciding that I wanted to do something bigger. While studying Business Management in Tallaght I became interested in Enterprise Ireland and went on to complete an International Management Masters in Trinity before joining the Graduate Programme.

 

Applying for the Graduate Programme

The application process for the Graduate Programme is fairly intense. First you need to write an essay about why you’re good for the role. Then there are online tests to do before a video interview. The group scenarios can seem quite intimidating. In one instance there are five applicants with five individual assessors taking notes and watching your performance as you work through a case study completing tasks and discussing the assignment in front of the group. While it can be intimidating it is worth it for the benefits and experience that the Enterprise Ireland graduate programme provides.

If I were to give one piece of advice to applicants who face the same test it would be that this is not the time to discuss your thesis; this is a test to see how you would act on the ground in the market. Many candidates think that the assessors want to see their knowledge of a topic, when it’s actually a practical test to see what impactful decisions you would make that would help our clients. This test is reflective of the job itself – on any given day, you’ll receive a call from a client looking for contacts or networking opportunities – your job is to connect them with the right person/people, sector knowledge is important but so is practicality. Time is money over here.

If you’re interested in the position, you need to be bold and confident. There’s no room to be timid around ideas, instead be brave enough to voice the ideas that you think would make the most impact.

“Go in with a positive mental attitude and let your willingness to work hard and do the job show.” advises Steve Keogh.

 

Networking is key

The job itself is intensive. You are representative of Ireland on the ground in a foreign business community. I can’t put a figure on the number of tasks you might be asked to do. It’s literally anything and everything that would help Irish companies win exports in a foreign market. It’s about knowledge and networking – the knowledge of the leading sectors in your market, and the contacts you make through attending shows, events and so on.

 

Making an impact for Irish business

Nothing makes more of an impact than if a company rings up looking for advice on how to get into a sector and you’re able to introduce them to the major players and progress an introduction– you’ve just saved them a lot of time and a lot of headaches. And on the flip side you will have lots of people coming to market with a product that mightn’t be suitable – your knowledge of the market could save them time and money if you can direct them to the best market fit for their product.

One of my favourite success story’s features a company from Tipperary called Saint Killians that produces candle units for churches. Their products make it so that when the candle burns down, the wick drops into a water bath underneath for safe extinguishing. About a week after I stepped into this role, they contacted me and asked for help to sell into Texas for the first time. This was my first task and I felt I had something to prove so I got on the phone to every priest from Houston to Dallas and back, and now, if you go to 10th Street in Austin, there’s a church there with a candle unit from a company in Tipperary – and I got it there! That’s the sort of impact you can have for an Irish company and the feeling of being able to point to it and say: “I did that” is extraordinary.

“Enterprise Ireland gives you the opportunity to do genuinely meaningful work for Irish companies in international markets.” says Steve Keogh.

 

One Year Later

One year later and I am sitting in the Enterprise Ireland Benelux office on the 14th floor of Sablon tower in city centre Brussels. It’s been an interesting transition to say the least and I feel invigorated by the challenge of a new region, new team dynamics and business culture.

I have started a new position as a Market Advisor for digital solutions and will be working with colleagues in the wider Eurozone team to deliver impact for clients in cyber security, ICT and more. That’s what’s great about Enterprise Ireland, the opportunities for progression and exciting challenges are there. It takes a combination of patience, opportunity and results but if successful you can join one of the overseas offices in a new region and gain an entirely new cultural experience, or advance in your career in HQ at Eastpoint and remain at the forefront of innovation.

The preceding year was challenging for businesses globally as we all transitioned into the world of virtual work, restricted travel, and general uncertainty. Working from Austin I was able to witness first-hand the adaptability of the Enterprise Ireland team and we all pivoted into new ways of delivering impact for clients. Through webinars, virtual pitch events, business accelerators and network we could still deliver key supports to help win new business and expand existing relationships for our clients.

For those wishing to progress beyond the grad programme in Enterprise Ireland, your demonstration of capability will increase your responsibility. My portfolio was expanded to include the energy and aerospace sectors for the US and I thoroughly enjoyed finding new opportunities for clients in these markets. The development of meaningful relationships with your clients will be key in your success.  The clients I worked with had incredible offerings and exceptional business development skills so once I could find the right opportunity for them, I was confident that they would work their magic and get results. Building trust with your manager and team will open doors to new opportunities and keeping a keen eye on new or unexplored sectors in your region will provide a platform to demonstrate your innovative thinking. In this regard I particularly enjoyed looking at the commercial space and renewable energy sectors in the US.

I think ultimately that there is an element of job fit that comes into play. It won’t take you long to figure out if this is the sort of role you enjoy and if it is the right one doors tend to open.

If you are successful in joining the programme, you have gained the opportunity of a lifetime. Whether you stay on with Enterprise Ireland or take up a new role in a different organisation, the skillset, network and confidence you will have gained set you up for success in any new endeavour.

To learn how Enterprise Ireland’s Graduate Programme can help you take the next step in your career visit National Programme /  International Programme.

Why Export title

Export Journey: Step 1 – Why Export?

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Why Export title - image of woman packing a box

In a post-Covid world access to international markets, buyers, distributors and information is now at the fingertips of Irish SMEs thanks to increased digitalisation.

When looking towards new markets, it is important to consider the potential benefits of exporting for your company such as;

1. Diversification of market and reduced vunerability

A well considered diversification plan can minimise a dependency on the domestic market and the potential exposure to domestic downturn.

2. Increased revenue and scale

Exporting opens channels to exponentially expand the home market and identify new markets to take advantage of globally. A larger market base delivers economies of scale, enabling you to maximise your resources.

3. Improved profitability

Your ongoing domestic operation should cover business-as-usual fixed costs, either directly or via other types of business financing, which should, in turn, facilitate a faster growth in your export profits.

4. Best practice and knowledge

Accessing global markets will provide additional benefits to an exporter, aside from increased revenues such as new ways of doing business, increased awareness of global best practice, cultural and international competitiveness, that could also bring benefits to your market offering in Ireland.

5. Domestic competitiveness

Considering your company’s export potential will increase its resilience against potential competition within the domestic market.

 

 

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Export Journey: Step 2 – Assess & Validate

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Before beginning your export journey you must clearly identify your target market.  You may have preferences based on previous experience, understanding of the language or culture or simply some connection with the market, though a good starting point it’s not enough of a reason to export to this market.

Market Research will form the backbone of your export strategy as you begin to validate your plans.

The key elements for consideration are:

  • What makes your product unique
  • Who are your competitors in your selected research market?
  • Who are the buyers in that market?
  • How does your product compare in terms of pricing?
  • How is the product sold in that market?
  • What are the local regulations, certification for selling your product and can you currently comply?
  • A clear understanding as to why you have selected this market as the potential first market.

What supports are available?

If your business is at an early development stage the Local Enterprise Office has the supports to help you plan, start and grow

If you are are already supported by Enterprise Ireland you can contact your Development Advisor here.

The Market Research Centre provides access to world class research databases to help client companies make better, more informed business decisions. Contact the Market Research Centre here. 

Enterprise Ireland hosts events to assist companies’ growth plans – See our events calendar for details.

Our Market pages and Going Global guides provide expert insights and contact details for our overseas offices.

Learn how our Exporter Development team can support your growth.

 

 

 

Positioning Strategy title and businessman

Export Journey: Step 3 – Positioning Strategy

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Your positioning strategy should set out what you will do to achieve a favourable perception in your new export market.

Typically companies will try to achieve the same brand positioning regardless of the market. A coherent positioning strategy can be hugely advantageous, so it’s important when reviewing the export potential of your products/goods or services to consider the following:

1. Customer profiles

  • What is your current USP and will this translate to your new foreign export markets ?
  • Do you understand your domestic customer profile? E.g. age profile, socio-economic grouping etc.
  • Are there other significant demographic patterns to your product or service’s usage?
  • Have you considered the need to modify your product/service to facilitate differences in language, culture and business environments?
  • How do you plan to deliver your services to foreign markets ? In person, via a local partner or using digital resources?

2. Market Pricing and Value Propostion

  • Consideration whether any necessary changes to make your product/service more appealing to foreign markets and customers?
  • If you’re exporting services, what makes them unique within global markets?
  • Have you benchmarked your services in a global context? Would they be considered to be world-class and stand up to stronger scrutiny?
  • Have you considered the cost implications of servicing overseas markets? Including FX rates and fluctuations?
  • Does your product have a shelf life and will this be impacted by time in transit?
  • Will your packaging have the same impact in a foreign market or can it be easily modified to satisfy new demands?
  • Are there any climatic or geographic factors that could affect the uptake of your product or service in other markets?

3. Route to Market

  • Do you need special export licensing or documentation to export? i.e. technical or regulatory requirements localised to the market?
  • Are there considerations for the safe transportation of your product to global markets ? i.e. specialized containers or packaging materials?
  • Would transportation costs make competitive pricing a problem?
  • How efficiently does your target market process incoming shipments?

4. Capacity to support

  • In the event that your domestic/export demand increases beyond current projections, will you still be able to look after both markets?
  • Will you be able to serve both your existing domestic customers and any new foreign clients?

 

5. Further considerations

  • Do you require a local presence or representation?
  • Will your products/service require local professional support or can this be done digitally?
  • Will after-sales service be required ? Can it be easily sourced locally or do you have to provide it? Does you have the resources to provide it?
  • Are there legal / IP implications to consider when entering global markets?

Once your positioning strategy is in development, it’s time to consider how to develop your export strategy and access your target market.

 

Take the next step in the Export Journey

 

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Export Journey: Step 6 – Scale

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Scale title and background image of modern cityYou are now successfully exporting to your first market. Now begin to build on this success and grow your exports.

You will now have built up a good relationship with the overseas market team and keeping up to date on buyer trends and external factors impacting these trends will enable you to stay competitive.

Factors to consider in your plans to scale exports:

1. Resources

Do you have the necessary resources both in terms of staff and finance to meet the demand of a new market?

2. Capacity

Do you have the manufacturing, packaging, logistics, linguistic capacity?

3. Environmental

Have you considered your carbon footprint; requirements of buyers?

4. Sustainable Growth

How will this impact your current financial standing? Will it strengthen or dilute your position in the market?

5. Adjacent Markets

Is there potential in the adjacent markets where buying patterns, pricing and local regulations may be similar?

 

How can Enterprise Ireland support your growth?

If you are are already supported by Enterprise Ireland you can contact your Development Advisor here.

The Market Research Centre provides access to world class research databases to help client companies make better, more informed business decisions. Contact the Market Research Centre here. 

Enterprise Ireland hosts events to assist companies’ growth plans – See our events calendar for details.

Our Market pages and Going Global guides provide expert insights and contact details for our overseas offices.

Learn how our Exporter Development team can support your growth.