Net Zero: Time for Irish companies in the UK to prioritise strategies to tackle climate change 

Net Zero

Irish companies operating in the UK have had quite a turbulent few years. Not only have they worked through the Covid-19 pandemic, which has affected literally every part of the business world, but they have also come through the preparation and implementation of Brexit. But now there’s another issue that is becoming ever more urgent by the day – climate change – and it’s time now for Irish companies in the UK to start implementing strategies to make their business more sustainable and environmentally friendly.

While climate change is an urgent issue in every country, an even closer light has been cast on the changing environmental and sustainability conditions of the UK market. The UK was the first industrialised nation to enshrine its climate targets in law, pledging to cut carbon emissions from 1990 levels by 78% by 2035 and to reach net zero by 2050. This has been supplemented by recent UK government announcements including its ten-point plan for a green industrial revolution (published in December 2020), a new hydrogen strategy and an offshore wind sector deal. COP26 is taking place in Glasgow this autumn, and to coincide with its launch, the UK government is planning to publish a comprehensive cross-sectoral net zero roadmap, which should provide greater clarity for all sectors.

By and large, net zero been welcomed by the market, as businesses can see the opportunities that come with such a move, but the details still need to be sorted out,” explains Darragh Cotter, Senior Market Advisor, Industrial and Cleantech, at Enterprise Ireland. “The comprehensive roadmap to be published ahead of COP in November is expected to include all the important steps to take the UK to their net zero target, including the level of investment the government is willing to put into it.”

 

Already an urgent issue

With such ambitious targets, it’s clear that this will result in fundamental changes across the business community. Already, the UK net zero challenge is rapidly impacting government policy and legislation, influencing consumer preferences, impacting investor decision making and changing the way major corporates work with supply chain partners.

If you already have a presence in the UK, you must become conscious of the net zero ambitions of your customer base and the changing dynamics,” says Darragh. “For instance, already a lot of public procurement is building in environmental criteria into their tender assessments. That will be the same in the construction and agricultural sectors. So our message is that this is a critical issue for Irish businesses if they want to continue working in the UK because everything from procurement to the type of products and services will undergo fundamental change as we journey towards net zero.

“For us in the Enterprise Ireland London office, it’s the number one issue facing businesses today; we want to educate our clients on the issues facing them, find out what’s required by their customers and potential customers in the UK and relay that information to our client companies. For instance, we are seeing more and more UK corporates looking for their supply chain to have achieved environmental accreditation through certification such as ISO 50001 and ISO 14001. Our client companies need to be aware of the criteria they need to fulfil in order to continue doing business in the UK.”

To help, Enterprise Ireland has launched Net Zero UK: Ready for a Green Future, a proactive market intelligence and insights campaign that is designed to keep Irish business informed of the UK’s net zero plans and their impact on business. Through webinars, podcasts and reports, the campaign will highlight technologies and verticals that are likely to decline and those that will grow and emerge, along with the evolving expectations of major UK corporates. These insights can inform the strategic planning and R&D activities of Irish companies operating in the UK to both protect and to grow their business over the coming years.

Opportunities

Of course, with every change there’s opportunity, and working with Irish SMEs to identify new and relevant business opportunities is a key goal of Enterprise Ireland’s Net Zero UK campaign. “Net Zero will affect every sector, but some sectors would require different measures to others,” says Darragh. “For Irish companies, there are opportunities across all sectors related to net zero, not just in renewable energy – there are also opportunities in construction, engineering, manufacturing, local authorities, finance, business technology and more.”

Enterprise Ireland’s Net Zero UK campaign is complemented by the €10 million Climate Enterprise Action Fund, which provides a suite of products to help Irish companies assess their current carbon footprint and develop a concrete decarbonisation strategy to help future-proof their business. These financial aids work alongside the focused sector insights provided by the Net Zero UK campaign.

Despite Brexit, the UK remains one of Ireland’s most important export partners, and it’s vital that Irish companies take action now to address the opportunities and risks brought about by the growth of UK’s green economy. Enterprise Ireland’s Net Zero UK campaign aims to support Irish exporters and help them to emerge stronger, more successful and more sustainable than ever.

Net Zero UK is part of Enterprise Ireland’s Evolve UK campaign. Find out more here.

Leo Varadkar and others on trade mission

Back to business: Tánaiste leads Enterprise Ireland trade mission to London, Paris & Berlin

It’s been a long and difficult 18 months for Irish businesses, but now that we can finally travel abroad and meet new and existing companies, the recovery has well and truly begun. In fact, Enterprise Ireland’s ambitious calendar of in-person trade missions has already begun, with the Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, leading a team on a visit to the UK, France and Germany in early September.

This was the first in-person trade mission since the EU-UK Trade Agreement and the Covid-19 pandemic, and underlined Enterprise Ireland’s commitment to helping Irish companies grow and prosper during this period of recovery. “This trade mission was a reflection of our commitment to the economic recovery, getting Irish businesses out there as quickly as possible to take advantage of opportunities in these three important markets,” says Tom Cusack, Divisional Manager for International Sales and Partnering at Enterprise Ireland.

Together, the UK, France and Germany represented 38% of total Enterprise Ireland client exports in 2020, with over 2,300 Enterprise Ireland client companies exporting to these three markets. “Brexit has happened but the UK continues to be the No.1 export market for Irish companies,” says Tom. “Our ambition is to sustain and grow exports into the UK while growing exports outside the UK too. France and Germany are important to us; each market is worth over €1 billion, and as part of the Eurozone, there are several huge advantages in trading with both countries, including the currency, ease of access and ease of trading. But the UK remains extremely important.”

 

Resilience and growth

While undoubtedly the past 18 months have been challenging, Irish companies have shown great resilience and tenacity in continuing to trade during tough times. In fact, despite the challenges of Covid-19 and Brexit, Enterprise Ireland client exports remained steady in 2020, achieving exports of €25.48 billion. Plus, over the last 12 months, more than 50 companies have set up a new presence on the ground in the UK, French and German markets, in such growth areas as digital technology, life sciences, construction, fintech, energy and transport.

“Irish companies have been remarkably resilient over the last 18 months, and have continued to win business and maintain existing business without being able to travel,” says Tom Cusack, Divisional Manager for International Sales and Partnering at Enterprise Ireland.

“Some industries have been more impacted than others, but our 2020 numbers would have effectively held their own with 2019, which is very positive.”

To help Irish companies grow and recover, the purpose of the September trade mission was practical, and enabled Irish companies to meet potential new customers and decision makers in many different industries in the three countries. “Ultimately the mission was about raising the profile of Irish businesses and Irish products in the UK, France and Germany, and highlighting the level of innovation and commitment coming out of Ireland,” says Tom. “It was also a chance for companies to pitch to potential customers in each country. The presence of the Tánaiste always helps to get people into the room, so the mission proved a valuable opportunity for Irish companies.”

 

Three busy days

The first day of the trade mission took place in London, underlining once again how vital the UK market is to Irish companies. Highlights of the visit included an innovation exchange event, attended by the Tánaiste, with UK local authorities and Irish companies. There was also opportunity for focused business meetings with key decision makers from the UK insurance and healthtech industries.

In Paris, much attention was paid to large infrastructure projects, and included meetings with Réseau de Transport d’Electricité and EirGrid, partners in the Celtic Interconnector project. There were also meetings with representatives from Le Grand Paris project, the largest transport and infrastructure project in Europe focused on mobility, sustainability and urban development in the Ile de France region.

The team then travelled to Berlin, where the Tánaiste formally launched Enterprise Ireland’s fourth Enter the Eurozone programme, in partnership with Berlin-based European School of Management and Technology (ESMT). Meetings also took place with Europe’s leading healthcare provider, Helios Health, and German mobility company Tier GmbH.

Over the course of the trade mission, the Tánaiste also met with a number of IDA Ireland existing and target client companies from the financial, telecommunications, insurance and e-commerce sectors.

“It was a very busy couple of days but we believe the trip really opened doors for Irish companies, highlighted the significant benefits in doing business with Irish companies and ultimately helped their growth and recovery by introducing new customers and encouraging new business,” Tom explains

“This trade mission was hopefully the first of many. We have a draft schedule of missions running to the end of the year that includes the US and the Middle East, underlining our commitment to get Irish companies back out there. Where possible, the export agenda will be fully supported by Ministers from the Department of Enterprise, Trade and Employment, which always helps to open doors during these missions. We’re an island nation and exports are vital to us; we have a strong reputation throughout the world and our priority is to sustain and grow this through these trade missions.”

Building an online presence in Germany

Building your German online presence – Best practice in localisation and eCommerce

Building an online presence in Germany

 

Selecting the route to market can be one of the main challenges for any business looking to export to Germany. While in the past there may have been a preferred or single route to market, businesses are achieving success using multi-channel approach to engage the market at different levels.

Enterprise Ireland’s team in Germany has seen the importance of online to not only sell products and services but also to support the German customer in their buying journey. Buying decision are often made well in advance of the first contact. Your online presence is a key factor in informing and influencing your customer about your business and why they should consider you for their needs.

Enterprise Ireland has vast experience in advising businesses on German customers’ perspectives and expectations and how to develop an effective German online presence. In conjunction with Glocafy, Enterprise Ireland has developed this Best Practice guide with sectoral insights and advice from companies already trading in Germany.

Help your business to succeed locally, download your Best Practice Guide to Building your German online presence.

Paula Carroll

New Frontiers: The first step for ambitious entrepreneurs

IPaula Carroll - New Frontiers National Programme Manager

Ireland has a fine reputation around the world for being a country of innovators – indeed, it’s hard to find someone who doesn’t have an idea for a new product or service, or a vision to make an existing solution even better. But translating that idea into a viable business is a massive jump – which is where the New Frontiers programme comes in.

Delivered on behalf of Enterprise Ireland in 18 Institutes of Technology and Technological Universities across Ireland, New Frontiers is Ireland’s national entrepreneurial development programme, as Paula Carroll, New Frontiers National Programme Manager, explains:

“It’s a programme designed to support early-stage entrepreneurs, from when they have that business idea in their head right through to when they bring that product to market. It offers a structured and supportive environment and runs across three stages.” 

Delivered in three phases, the New Frontiers programme is designed to be as user-friendly as possible, allowing you to explore and develop your idea over a number of phases

“In Phase 1, someone may come in with a sketchy idea and want to explore and validate it,” explains Paula. “Within six to eight weeks, they work on the idea and find out if it can become a valid business that’s worth progressing. It’s part-time so requires no commitment; the participant can complete the phase in the evenings or at the weekend without it affecting their job. It consists mostly of interactive workshops.

“After Phase 1, participants can apply for Phase 2, which is an intensive six-month immersive programme.

“In Phase 2, participants work on their business idea full-time; the programme includes interactive workshops, five one-to-one mentoring sessions and a €15,000 stipend.” 

They also get a lot of support within the colleges or universities in which the programme is being run, and have the opportunity to immerse themselves in the entrepreneurial ecosystem. During this phase they get milestone reviews, to ensure they stay on track as six months can pass very quickly indeed.

“At the end of the six months, sometimes participants can look for additional support either from the Local Enterprise Office or from the High Potential Start Up team in Enterprise Ireland. They could also stay on for Phase 3, which is another three months of support.”

 

Creating success stories

Enterprise Ireland has been managing the programme since 2012, and since then, approximately 4,900 individuals have participated in New Frontiers, with 1,500 going on to the immersive Phase 2 of the programme.

“We also did an evaluation at the end of 2019,” says Paula, “and out of the people we surveyed who had completed the programme, over 83% were still in business. Plus the turnover of those people surveyed was over €300 million.”

Some of those still in business are genuine Irish success stories. For instance, a 2019 participant is Uccello Designs, a design and manufacturing company providing stylish assisted-living devices such as an innovative no-pour kettle; Uccello Designs now employs 11 people in Ireland, Australia and the UK. Another success story is 2017 participant Kianda Technologies, which has developed a no-code business process automation platform that allows business users address core business process management needs without the need for outside help. Now supported by Enterprise Ireland’s High Potential Start-Up unit, Kianda recently experienced a 40% increase in their customer base and is aiming to triple the size of their team by the end of the year. And, Immersive VR Education in Waterford, one of the 2016 participants, raised €6.75 million following a successful IPO in 2018.

 

Supporting every corner of the country

The regional aspect of the programme plays an important role in Enterprise Ireland’s commitment to developing sustainable businesses all over Ireland. “It’s offered in 18 institutions throughout Ireland,” says Paula. “With Covid, obviously, it all went online but post-Covid, Phase 1 will remain online – which makes it accessible to everyone, regardless of where you live – but Phase 2 will have face-to-face meetings, interaction and networking, as well as some online.

“Having that interaction is so important when building a business as other people can challenge an idea within a safe environment, and give participants the opportunity to practise their pitch in front of mentors and peers. 

“New Frontiers encourages people to pitch from day one; we get them to deliver an elevated pitch at the very start, and by the end of even Stage 1, that pitch has been refined and developed through practice.”

The New Frontiers programme is open to early-stage entrepreneurs based in Ireland over the age of 18 with an idea that has employment and export potential. Start dates vary according to your chosen location, but the application process is quick and easy. Simply fill in the online form available on www.newfrontiers.ie and a programme manager will get in touch to discuss your project and send you an application form

Visit www.newfrontiers.ie for details on how to apply.

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.

Karen_Hernandez

People management and the new work landscape

 

For the past year and a half, employees across the country and indeed the world have found themselves in the unusual position of working from home. But now that some sort of normality is returning to our lives, many industry bosses are keen for their staff to put in a physical presence at the office – however, an overwhelming majority would like to continue working remotely in some way or other.

“Since the onset of the pandemic, the nature of work has changed as, for many businesses, Covid has accelerated the move to remote working,” says Karen Hernández, Senior Executive – People & Management Pillar – with Enterprise Ireland. “Overall, this has been a positive move as many companies have found that productivity has remained the same or even increased during this period.

“A recent survey, conducted by the Whittaker Institute and NUI Galway, found that 95% of respondents would like to work remotely at least some of the time – and with this in mind companies are now seeking to set up appropriate means of supporting remote, hybrid and flexible working.”

 

Challenges ahead

But while this new landscape brings both opportunities and challenges, Hernández says companies should also consider how to address some of the medium-term HR and management challenges now facing their business.

“Possible issues include looking at ways to implement flexible working to suit both the business and the employees, utilising office space while many are working remotely and motivating managers and employees while they are engaged in work outside of the office,” says Hernández

“In addition, staff may be anxious about returning to the workplace, so it is also important to consider health and well-being supports and be aware that remote working attracts the same rights and responsibilities as office-based work in terms of pay, benefits, health and safety and work time.

“But where businesses are employing staff from other jurisdictions, they need to be clear that the employment rights, which govern the terms and conditions of employment, are those of the country where the individual is physically working.”

 

No one-size fits all model

The people management expert says while research indicates that a majority of employees want to keep working remotely, in some format, employers must understand that they run the risk of losing their best talent if they force everyone back to the office.

“Transitioning to a fully remote or hybrid work model may seem easy as we have all been doing it for 18 months,” she says. “But in reality, getting remote and hybrid working right for the long-term is actually very complex and requires significant planning and communication with employees.

“Firstly, companies really need to consider what’s best for them as a business as well as their employees. What’s right for one company may not be right for another, so a good starting point is to survey managers and staff to understand their needs. Then companies need to review and consider how easy it will be for employees to carry out responsibilities remotely – flexibility is key here as what works for one person, may not work for another.”

 

New skills needed

Maintaining engagement and motivating staff is incredibly important and Hernández says that managers need to develop new skills to engage employees in remote and hybrid work environments.

“There needs to be regular two-way communication, via surveys, focus groups and all-hands meetings,” she says. “This is essential going forward and companies need to establish a culture of trust, with value placed on deliverables rather than on input or time spent online.

“In addition, managers need to have the skills to lead and manage remotely – and this may require some additional training.  So, companies need to look out for signs of stress and over-work among employees as it is more difficult to spot in a remote environment.  Indeed, many are reporting that the merging of work and home life is making it difficult to switch off outside work hours and this is exacerbated when the work culture is focused on presenteeism, as employees feel that their time is being monitored.”

Support from Enterprise Ireland

Enterprise Ireland is aware that companies may need assistance when it comes to ensuring a smooth return to the office or developing an efficient hybrid or remote working model. So in in conjunction with Voltedge Management Ltd, it has developed Emerging through Covid-19: The Future of Work to help Irish companies to consider and reflect on these and other HR challenges they are likely to face over the coming months.

“Its purpose is to help business leaders to understand how the world of work has changed over the past year and consider the impact these changes may have on the expectations and motivations of both current and prospective employees,” says Karen Hernández.  “Our intention is to provide insight into good HR practice and to encourage businesses to think about what approaches or responses may be right for them.”

 

Click here to download your copy of the guide.

Update on the AMP7 spending cycle and Green Webinar title: UK Water Sector, Recovery Investment Plans

The UK Water Sector and the AMP7 spending cycle – Webinar

This webinar provides an update to the UK Water Sector and the AMP7 spending cycle and Green Recovery Investment Plans.

Hosted by Enterprise Ireland and British Water the webinar discusses the key topics facing the sector with insights provide by industry experts:

  • Lee Horrocks, Director, LCH Executive

  • Lila Thompson, Chief Executive, British Water

  • Matt Lewis, Water Innovation Portfolio Manager, Severn Trent

  • Paul Gardner, Managing Director, Glanagua (UK)

  • Mike Froom, BD Director, TE Tech solutions (part of the Trant Group)

Gain key business insights with our on-demand UK webinar series.

    The Future of UK Ports – Overview, trends and opportunities

    As the UK ports industry enters a time of significant transformation, we hear from leading market experts on the latest trends and opportunities for Irish suppliers in the sector.

    This webinar examines:

    • Ports for offshore wind

    • Freeports

    • Port decarbonisation

    • Smart ports and digitalisation

     

    Contact our UK Cleantech Market Executive or gain key business insights with our on-demand UK webinar series.

      Why Export title

      Export Journey: Step 1 – Why Export?

      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.

       

       

      Assess & validate title and two women at a computer screen

      Export Journey: Step 2 – Assess & Validate

      Assess & Validate title and business people

      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

      Positioning Strategy title and businessman

      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

       

      Export Strategy title and port image

      Export Journey: Step 4 – Developing your Export Strategy

      The next step is your export plan. You may have ideas but you need to clearly communicate them in writing so that your whole team is clear on their responsibilities. Having a plan laid out makes it easier to spot pitfalls, gaps and even additional opportunities!

      The export plan is also key in seeking supports in term of financing or grants.  Don’t overcomplicate it, keep it clear and simple.

      The key elements of a successful export plan include:

      1. The Vision

      • What you are going to do. How you are going to do it. What your expected outcome is.

      2. Human Resources

      • Have you the staff, external support and expertise? Have you skills within your team to manage language and cultural differences?

      3. Financial Resources

      • Budget, Sales targets and Pricing – Consider the additional costs involved in selling into the overseas market. Establish a target price for the end user, taking into consideration currency, payment terms, freight and carriage charges, import duties and taxes, commission to partners and competitors’ pricing.

      4. Target Market

      • Why you have selected this market; who your buyers are.

      5. Your Product

      • Your USP and how it translates internationally. Are there external factors which could impact production or sales?

      6. Market Entry

      • Sales channels; marketing plan; regulations, language and local laws.

      7. Monitoring and Developing the market

      • Are you meeting sales targets?

      8. What’s next?

      • How do you plan to grow and scale?

      Access the Market Entry Page