Branding for International Success
August 22, 2011
Ceris Burns, international marketing specialist for the cleaning industry takes a look at the importance and application of branding to aid success in overseas markets.
Why is branding important?
Ultimately brands are created to avoid the commoditisation of products and services which leads to purchasing decisions being made on price alone. The buyer expects to pay a premium for a number of perceived benefits from a recognised supplier or brand. Brands can lend a sense of authority to the purchasing decision and in some cases a particular product or service might even be specified by a company as it has been placed on their preferred supplier list. In this case branding helps lock out the competition.
International branding
Branding is the most visible of a company’s activities and this is even more the case when applied on an international scale. Branding allows customers to identify products and services across multiple markets which will guarantee their satisfaction as they provide specific benefits. These benefits might be based upon performance, price, quality or image. For the company, brands provide a point of differentiation from their competitor’s products and are also a way of adding value to the company. There is potential for the company to add value through one or more ways such as: Premium pricing – brands allow higher prices to be charged compared with non-branded products, Higher volumes – branded products can generate higher volumes if they are positioned at standard rather than premium price levels. Lower costs – higher volumes lead to cost reduction from economies of scale which improves competitiveness. Improved use of assets – high sales levels should lead to the optimum use of assets such as equipment and supply and distribution channels.
Brand Components & Strategies
A brand can be made up of tangible (for example ‘product reliability’) and intangible (the purchaser experiences a specific feeling as a result i.e prudent decision making or professionalism) benefits. In business to business environments, decision making tends to be more rational and as such branding is created around product or service attributes such as specification and performance. A brand builds confidence with customers in situations where it might be difficult for them to assess the differences between competitor products.
In international markets, due to different cultures, customer expectations and market development, the appeal of a branding approach may be more appropriate for a similar product. For example in some cultures, product or service attributes will be more important while in others aspirational branding may appeal. Another challenge for companies wishing to market their products overseas is to gauge to what extent the intangible benefits of branded products and services vary between countries, cultures and individuals.
When wishing to promote a brand overseas the first decision has to be which type of branding to adopt. There are several types of branding and these include: Umbrella branding – one brand which supports several products, Product branding – each product has a unique brand, Line branding – a number of complementary products share the same concept, Range branding – similar to line branding but includes a broader range of product concepts, Sourcing branding – products are double branded with a corporate or range name and a product name, Private branding – products are supplied to a third party for sale under their own brand name. In recent times, in part due to the economic climate, there has been an increase in private branding because private brands are perceived as being value for money. Whichever strategy you decide to take, your choice is likely to be based upon whether the benefits of a shared identity outweigh the importance of differentiation between individual product brands.
Positioning
Positioning is related to brand strategy and implementation and is concerned with how a product or service is to be differentiated from the competition. In the case of international marketing it should be remembered that perceptions of certain aspects of a product’s positioning may vary across countries. It is also necessary to establish in the customer’s eyes exactly what the product stands for and how it differs from existing and future competition by creating an identity which clearly represents the value of the product. Differentiation could be based upon price, quality, product or service attributes, specific applications or even direct comparison with a competitor.
For more information about international branding or positioning contact Ceris Burns ceris@cbimarketing.com
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New Product Development for Export Markets
August 3, 2011
There is an ever growing desire for customers to have new products. Meanwhile, companies frequently use new product development as a means to refresh their competitive advantage and some even set it as a business objective. With respect to international business, faster new product development is essential for companies wishing to secure increased export involvement. Ceris Burns, international marketing specialist for the cleaning industry considers new product development for overseas markets and outlines the implementation process that should be followed to minimise risk.
Few products these days are revolutionary which means that companies need to be innovative in every aspect of their business in order to keep one step ahead. Most often new products refresh or reinforce a product range by complementing the existing offer as opposed to being a catalyst for business change. Companies should bear in mind that the time needed to copy products is shortening and as such fast and cost-effective simultaneous launch of new products across multiple markets can be prudent.
The process used to develop products for international markets is similar to that for domestic markets. The main steps include; idea generation, market screening, business analysis, product development, market testing, marketing and product launch. The major difference is the increased requirement to analyse a product’s suitability for launch as several countries are to be targeted as opposed to one. In depth research and reliable local knowledge is crucial to ensure that local product needs are met and for products to be positioned correctly from the beginning.
The process for international product development should include:
Idea Generation
Make sure you use all resources available to you both internal and external for new idea generation. Get everyone involved from employees, R&D, competitors, customers, sales personnel and distributors through to external experts.
Market Screening
Develop tough criteria to test ideas for their suitability in all target regions or countries so opportunities and any country specific restrictions are not missed. What will work wonders in one country might not make it off the starting blocks in another. Also remember to assess the level of adaptation needed for the product to be accepted in each market.
Business Analysis
Establish criteria to measure launch success and failure and link these to your target markets. You should also make provision for contingencies and unexpected events that might just occur.
Product Development
All relevant functions from production to design should be involved in the product development process. Whether in-house or external R&D is used, it’s important that key management has easy access to the technology experts. It might also be practical if R&D were located close to your key target markets.
Test Your Market
The test area must be representative of your key target markets if the results are to be trusted. Infrastructure for market research, advertising and distribution will need to be established and you should remember to consider how your competitors may respond in your test market and globally.
Product Launch
Prepare a launch plan for either sequential launches where your primary focus is on lead markets or for a simultaneous launch where all countries are entered at the same time. Be ready for your competitors to react. If serious players they shouldn’t give up their slice of the market without a challenge.
Protect Your Competitive Advantage
Think about your competitor’s ability to copy and launch similar products. You should protect your Intellectual Property by taking out patent protection. Establishing a licensing agreement could also protect your position by enabling fast widespread distribution of your product on a regional or even worldwide basis.
Timing Is Everything
Finally, timing is critical for new product development to succeed. Get it right and you’ll be able to fully exploit opportunities or competitor weaknesses. It is also important to keep your time to market i.e. from idea generation to full market distribution, to a minimum.
For more information about new product development contact Ceris ceris@cbimarketing.com
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Top tips for successful acquisitions
August 3, 2011
Acquiring an established company overseas is one method of rapidly breaking into new markets. It can however also prove to be a risky business, so first-time buyers should step out with caution. Ceris Burns, international marketing specialist for the cleaning industry offers top tips to ensure acquisition success.
While the purchaser may benefit from access to ‘ready-made’ customers, a skilled workforce, technology and branding, he/she may also inherit the existing problems of the business. On top of this, the goals of the two companies could conflict and legal problems may also arise. The tips that follow will serve as a guide through the acquisition planning process to ensure a smooth outcome.
1. Write a wish list Senior management should set overarching criteria against which to select potential companies, e.g. sector experience, turnover etc.
2. Decide where your search will start Board member contacts, business advisors, solicitors and specialist agencies tend to be good starting points to seek out suitable targets.
3. Know what a potential hot target looks like The target company will tally up with your checklist of ideal qualities which should include amongst others: An established track record, a solid customer portfolio, an effective management team, a secure financial history, realistic projections and strong assets.
4. Double check the numbers It might sound like common sense but do make sure that the value of the combined business exceeds the value of your existing business plus the price of the acquired business.
5. Suss out any possible personality clashes You need to know early on if personal issues could ruin the deal. For this reason it’s recommended to meet with senior management of any potential targets as soon as possible.
6. Agree upfront who will pay if the deal gets cancelled It is acceptable to expect the vendor to pay the majority of fees if the deal fails due to problems pinpointed in the due diligence.
7. Go get a plan You will need to plan the integration, assess the strengths and weaknesses of both businesses, and adapt your sales and marketing strategy appropriately.
8. Agree the deal structure If you buy shares it is more straightforward as you buy both assets and liabilities. However, if you buy the assets, you can pick and choose the elements you want and you don’t have to inherit liabilities.
9. Treat legal and financial due diligence with utmost importance Legal due diligence covers things like the structure of the target company, employment issues, I.P rights and legal compliance. Financial due diligence on the other hand provides an independent review of the information provided by the vendor. This should include: historical earnings and profits, the customer and product mix, future prospects, bad debts and creditors, pensions and tax liabilities.
10. Be a legal eagle Make sure that the sale and purchase agreement contains warranties and indemnities. Agreements often contain pre-completion conditions and should also contain restrictive covenants on the vendors. Finally, ensure power of attorney is in place in case not all parties can attend the final meetings.
For more information about acquisitions contact Ceris at ceris@cbimarketing.com
Licensing & Contract Manufacturing
May 4, 2011
Have you ever considered licensing or contract manufacturing as routes to enter overseas markets? Both can be relatively low cost and low risk ways of increasing your international presence and sales. Ceris Burns, international marketing specialist for the cleaning industry discusses the pros and cons of licensing and contract manufacturing.
On my travels recently I have been asked by several European cleaning products manufacturers if I could seek licensing and contract manufacturing opportunities for them. As the cleaning industry has expressed a clear interest in these routes to market I thought it worthwhile sharing my thoughts on both options and to provide a few tips on how to avoid any possible pitfalls.
What is Licensing?
Licensing is a contract in which a licenser gives a licensee the right to use: Product or process know-how, patent rights, trademark rights or copyrights. In some cases several of these might be included and the licenser may also sell components/services to the licensee as part of the deal.
When is Licensing a good choice?
Licensing can be a good choice for markets where it is difficult to deal direct or where the market size is too small to justify a higher level of involvement. Demands on costs and management are fairly low as there is no need to set up manufacturing or a sales office.
How does it work?
The licensee pays a percentage of the sales achieved which means that as sales increase so does revenue for the licenser. The licensee benefits as he can tap into know-how while avoiding the high costs associated with researching, developing and launching new products.
What can go wrong?
Things can go wrong because market needs change. The market might demand something new that the licenser isn’t necessarily prepared to develop or the licensee learns so much about the product and market that he thinks he doesn’t need the licenser any longer.
What is contract manufacturing?
Contract manufacturing involves a firm agreeing for a local company to manufacture its product under contract.
When is contract manufacturing a good choice?
When current manufacturing or transport and duty costs would price the product out of the market, the manufacturer is looking for a means of reducing manufacturing costs to target a number of countries or government insists on local manufacture and there is no other way into the country.
What are the pros and cons?
Lower management and finance demands enable the company to focus on sales and business development. Should the product not do as well as expected it is also less problematic to pull out of the market due to lower investment. Contract manufacturing also lends companies more flexibility in supplying specific products to suit the needs of different markets and to compete at local prices when manufacturing is in countries with lower labour costs. Disadvantages include minimal control over the manufacturer’s activity, so for example quality may be below standard or working conditions not in line with the company’s corporate policy. The local company may also not possess the necessary knowledge to compete in the marketplace.
Tips to avoid problems
In both cases there is no substitute for thorough planning. If looking for a local manufacturer, ideally you should settle on a company that has some synergy with your own management approach and beliefs. You will need to visit their manufacturing plant several times and obtain references if possible from other companies for whom they manufacture. With respect to licensing, build some of the following into your agreement in order to prevent potential conflict: Ensure your agreement includes factors such as duration, quality control, royalties and performance measurement, set restrictions on territory, request equity in the licensee and ensure you retain copyright, patents and trademarks.
If you are looking for a licensing or contract manufacturing partner contact Ceris at ceris@cbimarketing.com
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The Benefits of Using a Marketing Agency
April 6, 2011
Many companies who value PR and marketing will opt to use one or more external agencies to get the job done effectively. Ceris Burns, international marketing specialist for the cleaning industry discusses why using an agency for international PR and marketing can make a lot of sense.
Does your company have professional PR and marketing skills in-house? Will this resource suffice to get the job done on time? What about industry knowledge and an extensive network of contacts? Do you have a budget and is it important to get an external perspective? Which country or countries do you wish to market to and will these command local cultural knowledge or language skills? These are just some of the questions you will need to answer when deciding whether to manage your PR and marketing in-house or to outsource. Let’s take a closer look at the benefits of outsourcing.
Financial – Agencies often use specialist people and tools for a number of clients and as such this can reduce the end cost for the client. Similarly an agency may be able to get preferential advertising rates and produce creative more cost effectively. What’s more, the overall cost of producing your project or campaign on an external basis may cost less than paying a full time member of staff – a key consideration in today’s climate. If you recruit and it doesn’t work out you will incur additional H.R costs. With an agency you can choose to invest in what you need when you need it and if a relationship doesn’t work it’s easy enough to walk away.
Specialists – The value of agency specialist knowledge shouldn’t be underestimated. This might be specialisation in a particular area of PR or marketing, a specific industry, country or even continent. By having a focus area, an agency can bring a whole new level of knowledge and an impressive set of contacts to boot. A cleaning industry PR agency for example should be well connected with all of the cleaning, FM and relevant vertical market press in order to help you gain valuable coverage in all the right places. If you are carrying out a multi-country campaign which needs a consistent approach and central control, you may wish to use one international agency capable of supporting you in each country. On the other hand, using several specialist agencies may provide a more tailored local approach if you don’t mind forfeiting a little control and risking a few communication issues.
Professionalism – Now I’m not saying that PR and marketing can’t be managed professionally in-house (we work with some very good in-house marketers!) but problems can arise when non-marketers think they can take care of the job themselves. Let’s face it marketing is one of those professions where everyone thinks they can do it. After all marketing is just common sense isn’t it? If you don’t have a skilled marketing professional in-house your only option should be to outsource. Look for agencies that are CIM or CIPR members. Members of both institutes work to a professional code of conduct which means that you should receive a service that is based upon honesty, professionalism and the latest insight.
Creativity – By wearing different hats to manage a variety of client campaigns, an agency is often able to bring a higher level of creativity. It also goes that an in-house environment is not always the most conducive to coming up with fresh and creative ideas or a new solution to an existing challenge. An agency can turn the creative process on its head and inject a new lease of life into a campaign.
External Perspective – I’m sure we have all suffered at some point from getting too close to a project. An agency can of course bring a welcome external view to an existing challenge. This can be extremely valuable, especially at times of major change or new market entry, when assessing all options is crucial to making the right decision.
The benefits of outsourcing international PR and marketing are numerous and clearly decisions need to be made on an individual company basis. The key factors to keep in mind are budget, skill availability, the need for specialist knowledge and any specific country requirements.
To discuss whether outsourcing is for you contact Ceris at ceris@cbimarketing.com
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Incredible India – Massive potential untapped – Part 2
February 18, 2011
India has been dubbed ‘the powerhouse’ of the future. It is the second most populated country in the world and is projected to be the third largest economy in the world by 2050. Bearing these facts in mind, what is the potential for the cleaning industry in India and is it time for UK exporters to make a move? Ceris Burns, international marketing specialist for the cleaning industry speaks with Indian cleaning industry leaders to gain an insight into this rapidly growing market.
This is the second part of a two part article. Part 1 was featured in the January issue of Cleaning & Maintenance.
I have spoken to numerous companies who are interested in India but apprehensive about taking the first steps. What advice would you give to a British company keen to enter the Indian market?
Vinay Ruparel director at Jade Consumer Products advised the following: “Bureaucracy is deep in India. You will need to have a good Indian partner if you want to succeed. They will help you navigate the systems and processes in this country. There is a lot of guess work and very little transparency. And don’t think that because this is a densely populated country it’s a big market right now. The market is young and the percentage of the population that buys is limited.
Make sure you go slow, invest gradually and test the market. Adapt your plan as you learn and above all have patience. Allow time to be accepted and for it to work. If you try to bulldoze your way in you’ll come up against a brick wall.”
Hydros Jassem managing director of Oxygen Powered Fragrance Technologies agrees:
“Come here for the long term. There are no quick wins. You should expect to invest for a good five years or more. Make sure you look for reliable people who have international business experience.”
Pradeep Mehra CEO and managing director of Walsons HR Solutions added: “You’ll need to understand the market and adapt to its needs. While the Indian cleaning industry may be crying out for professional products and services, you can’t expect to come here without adapting your offer in any way. There is great potential for companies to do joint ventures, to bring in expertise and couple this with local knowledge. Many service companies over here want to provide high level service but they just don’t have the expertise.”
Which factors are most important in decision making?
Vinay Ruparel explained: “Cost and quantity tend to be the most important decision making factors. After saying this, companies do often want to procure professional quality products and services but find that they are not always available. If more multinationals enter the Indian market and bring with them quality and professionalism, buyers will be prepared to pay a premium.”
Do companies tend to work regionally or nationally ?
Some companies prefer to work on a regional or State basis in order to provide a more tailored, personal service. However, as Pradeep Mehra commented this is not always the case: “There is a shift for clients to look to national suppliers. They realise that by streamlining supply chains, better economies of scale can be achieved along with improved service, cost reductions and efficiency.”
Can you give me an idea of labour costs?
Hydros Jassem said: “To get a quality labourer you can expect to pay the same as you would back home. This is because often in India labourers give a poor level of productivity. A labourer in Europe would be four times as productive. In short, to achieve this same quality in India you will have to pay.”
Pradeep Mehra added: “A cleaners’ average wage in India would be £60 for a 26 day period. The cost to the employer for that individual including equipment use etcetera would be £100 per month.”
What about payment terms?
Payment in India is generally much better than you might expect as Hydros Jassem confirmed: “Payment is made within 30-60 days. Of course you need to choose your clients wisely and manage relationships effectively but as a rule companies in India pay more reliably than those in several other countries I could name. ”
In your experience what are the most effective methods of marketing in India?
Raakesh Malhotra head of business development at Forbes DMS said: “The most effective and important method of marketing in India is word of mouth. This is followed by communication in the trade press. Email marketing has also started to be used more but word of mouth and face to face contact is crucial. Relationships are so important in India. They may not always be totally ethical but are nevertheless needed to make deals happen.”
To discuss how your company could take advantage of opportunities in India contact Ceris at ceris@cbimarketing.com
As published in C&M magazine February 2011
Incredible India – Massive potential untapped – Part 1
January 20, 2011
India has been dubbed ‘the powerhouse’ of the future. It is the second most populated country in the world and is projected to be the third largest economy in the world by 2050. Bearing these facts in mind, what is the potential for the cleaning industry in India and is it time for UK exporters to make a move? Ceris Burns, international marketing specialist for the cleaning industry speaks with Indian cleaning industry leaders to gain an insight into this rapidly growing market. This is part one of a two part article – part 2 will feature in the February issue of Cleaning & Maintenance.
What opportunity does the Indian cleaning industry hold for UK exporters?
Sources estimate that the Indian cleaning market is currently worth 1bn Euros. The market is very much in its infancy (just 10-15 years old) and is currently enjoying an impressive 40% growth year on year. Market players believe that the industry’s future is blindingly bright and expect growth rates to reach 50%+ and to stay there for the next 5 to 10 years as a minimum. Additional growth will in part be driven by new entrants bringing the latest technologies and by building awareness of the need for and benefits of, efficient and professional cleaning. India is hungry to professionalise this industry and wants access to the latest products and services.
Commenting on this point Pradeep Mehra CEO and managing director of Walsons HR Solutions said: “It’s the right time to come to the Indian market as there are very few service orientated companies over here. Overseas players can bring the service focused mindset and expertise which local companies are looking for and would very much welcome.”
Accelerated market development is evidenced in the number of five star hotels and shopping malls that have sprung up recently – Just ten years ago these were non-existent. The facilities available in airport washrooms have also improved significantly.
Which cleaning products and services are in most demand?
Hydros Jassem managing director of Oxygen Powered Fragrance Technologies explained that all manner of cleaning products are being sought. He said: “Everything from cleaning chemicals and bio cleaners to machines and washroom products are in demand. Companies are looking for broader choice and better quality across the board.“
What are the biggest differences between the Indian and European cleaning markets?
Hydros Jassem continued: “India is at least 20 years behind! Cleaning is still a relatively new industry in India and systems are just not in place. This poses a big challenge to educate the market. It means that it’s not easy to sell cleaning products and services in India but if you get in and build brand loyalty now, you will reap the fruits of your efforts in the future.
Customers need to be taught which cleaning products are available and to understand the benefits of using them within their facilities. Cleaning operatives also need training so they have the skills to use this equipment and products effectively. Until recently elbow grease was the norm in India. Mechanisation is now gradually being introduced as people learn that it can be more efficient and effective than manual work. Law and culture also dictate differences here. With respect to washroom facilities for example, there is no law in India to ensure the provision of feminine hygiene disposal units so very few washrooms have them. Toilet tissue is also not widely installed. In fact ninety percent of the population doesn’t use paper. This is because traditionally Indians have used water to clean instead of paper. To us water means hygiene and cleanliness but paper doesn’t. Some high class establishments now install toilet paper but it will never totally replace water due to cultural preferences.”
Does business potential and attitude vary across the different regions of India?
Rakesh Malhotra head of business development at Forbes DMS commented: “Typically the market is split into North, East, South and Western regions. The North has more spending power and is currently the largest market while the South holds more growth potential as it is home to the big cities.” It was also noted that attitudes to business vary by region. For example in the South and West, decision makers tend to be more organised and work to commercial timeframes, while in the North, they are all talk and little action and show less respect for timeframes.
To discuss how your company can take advantage of opportunities in India email Ceris at ceris@cbimarketing.com
As featured in C&M magazine January 2011.
Goodbye Dubai, hello Qatar and Saudi?
December 30, 2010
You may have mentally deleted Dubai from your export wish list, but not so fast… Other Gulf States are making massive investments and will soon be crying out for cleaning services and products to meet demand. The shrewd exporter might do well to revisit the Middle East with a fresh pair of eyes and consider if he can take advantage of the opportunities out there . Ceris Burns, speaks with Mick Dalton past chairman of BIFM and managing director of Saudi based Musanadah Facilities Management about the outlook for British companies to export cleaning products and services to the Middle East.
Dubai in demise
Let’s face it, who really thought Dubai could carry on the way it was going? Isn’t it the norm that burgeoning resorts hit financial trouble at some point along the way? Boom is usually followed by bust. Dubai just did too much too quickly and developments have a habit of outpacing demand as developers become overoptimistic.
Despite this I would wager that the situation isn’t quite as bad as it seems and some exporters already out there positioning themselves as early entrants, would appear to agree. Dubai will be back, it’s just a matter of time, meanwhile the other Gulf Cooperation Council (GCC) states are forging ahead as Mick Dalton confirms.
I have had numerous conversations with British exporters who tell me that the Middle East is off their radar for the time being. What is the reality of the market opportunity out there?
The FM market in the wider GCC is currently worth US$ 4.2bn and is forecast to reach a value of US$ 9.75bn by 2014. The biggest pockets of growth are in Abu Dhabi, Qatar and Saudi Arabia followed by Egypt, Kuwait, Oman and Jordan. Dubai is quiet but it will be back so it would be prudent for companies to get a foothold in the wider GCC now.
Which countries offer the best opportunities?
Qatar and Saudi Arabia are at the top of the league with Egypt and Jordan closely behind. Dubai was the first off the block in development terms but other Middle Eastern countries can offer the same level of opportunity, they have just been taking their time.
Qatar is number two in the world of gas supply and as a result has no shortage of government funds to fuel growth. Wealth in Saudi Arabia has come from the oil industry and again significant funds are available. To give you an idea of the scale of current developments, in Saudi, US$ 330bn has been invested into new construction contracts over the last 3 months alone.
I believe that there are massive opportunities out here for cleaning and FM companies. Within the next three years these new construction projects will come to fruition and with just three international FM companies here at the moment, who will supply the demand for cleaning and FM? UK companies should be making a move now or they will miss the boat just as they did with Dubai. The big UK companies came out to Dubai when it was too late. The Arabs had already spotted the opportunity – they set up FM companies and flooded the market. In reality however the Arab companies do not provide a high quality cleaning service.
Which countries are easiest to trade with?
On a scale of 1-10 where 10 is the easiest, Dubai would score 10, Qatar 6 and Saudi 4. In both Saudi and Qatar employment is not without its challenges. You can’t employ staff until they have signed a contract and it is impossible for them to get a VISA without having a contract in place. Both countries also require a company to employ a certain number of locals. For this reason I would advise that the easiest way to set up over here is to do a joint venture. In this way your partner already has this point covered.
I understand that it can take ages to receive payment?
In Dubai and Abu Dhabi payment can take from between 6 months and a year. This doesn’t mean that you will then receive the full amount – after this period customers will negotiate what proportion of the payment to release and when to pay this to you. This approach is typical in the real estate market. Qatar is not quite so protracted with respect to payment whereas in Saudi it varies – property developers are typically bad payers while the government is pretty good.
Which cleaning products and services are in most demand?
There is certainly a requirement for professional cleaning and FM companies to move in. With respect to products, innovations taken for granted in Europe are desperately needed here. Robots for window cleaning, long range telescopic cleaning tools, the latest vacuum cleaners, ride on cleaning machines, specialist enzyme based cleaning products and chemicals, marble and metal cleaning products, colour coded products, micro fibre mops and more.
What are the biggest differences between the cleaning industry in the Middle East and the UK?
Salaries are much lower. In the UK there is a minimum wage whereas in the Middle East I can employ a cleaner for 1,000 AED Dirham per month (£170). Culturally it is very different, staff don’t understand the Western culture and many don’t understand English. Productivity is slower and poorer. Customers also expect a greater level of service but they are not prepared to pay more for this. Looking at the positives, cleaning is king just as it was in the UK back in the 70’s. The most important thing to most customers is that their building looks spotlessly clean.
What tips would you give to British companies considering setting up in the Middle East?
Firstly you should look for a good JV local partner. Set up camp, bring in staff but don’t just look locally – consider looking further afield, Thailand for example. Use your local connections to make it work and don’t expect to achieve a return on your investment in the first 18 months. There is a good support network available out here for cleaning and FM companies. The International Facilities Management Association (IFMA) is active in the Middle East and there is also an FM group on Linked in which is doing pretty well. In addition you will find MEFMA the Middle East Facility Management Association.
What are the most effective ways of marketing in the Middle East?
Don’t go knocking on doors as it doesn’t work out here. The Arabs use the word ‘Wasta’ which means network. Networking is key to marketing in the Middle East. It is very much about making use of local relationships and networks and helping each other. PR can also be effective – being seen at conferences, gaining valuable editorial coverage, winning awards etcetera.
To discuss how your company could take advantage of opportunities in the Middle East email Ceris at ceris@cbimarketing.com
ENDS
As published in C&M magazine November 2010.
How not to: Knit yourself a scarf in China
December 30, 2010
We all use the Web regularly and are aware of its importance on a worldwide scale. It’s a fantastic tool for lead generation, brand building, PR and more, but are company websites set up to effectively reach overseas prospects? Ceris Burns, international marketing specialist for the cleaning industry looks at using multilingual search engine optimisation to tap into overseas market potential.
More than translation
Have you had your website translated in an attempt to generate more overseas business? That’s a good start but translation alone is not enough. To quote an amusing example, in Chinese the phrase ‘to Tweet’ translates to ‘to knit yourself a scarf’. Unsurprisingly Twitter hasn’t taken off in China. It’s crystal clear that if you don’t want to be the laughing stock and you do want your online presence to be REALLY effective overseas, localised research is a must.
To do the job well, you’ll probably need a Multilingual Search Engine Optimisation (SEO) specialist to work with you. SEO is ‘the process of using various techniques to improve a website’s ranking with search engines in the hope of attracting targeted visitors.’ Translation plays a key part in multilingual SEO but research needs to be carried out into the complexities of search behaviours, such as popular key words and phrases for each key market you wish to target.
Research and apply exact key terms
An SEO specialist will employ native speakers of the language(s) relevant to your target country. They will dig deep and understand exactly which terms internet users are typing in to find the products or services you wish to sell. A direct translation of scrubber drier for example, won’t drive traffic to you if 80% of the local market uses an abbreviated category name instead. Regional language differences need to be taken into account too. If your target customers are based in Bavaria for example, you’ll need to build Bavarian key terms into your programme as opposed to just sticking to German language. In some countries including Russia, searchers often use plural phrases when searching i.e ‘scrubber driers’ rather than ‘scrubber drier’. This sort of valuable insight must be built into your SEO programme if it is to succeed.
Not just Google
Your web agency may understand Google, but outside of the UK, local search engines are often more popular. Find out which are the top search engines in your target countries and task your agency to help you climb the rankings. In Russia the search engine Yandex has over 60% market share. It is the fastest growing search engine in the world and has its own keyword tool called Wordstat which can be helpful to provide an insight into Russian search behaviour. It is also important to note that like many local search engines, Yandex prefers websites hosted in Russia or at least with a .ru Russian domain name. If you are serious about this market, as a minimum you should make sure you buy a Russian domain name.
China largest internet market
With 400 million internet users now (and a projection of 800 million users by 2013), China is the largest internet market in the world. If China is the top of your list, a well thought out online marketing strategy is essential. Even before Google squabbled with the Chinese government and moved to Hong Kong, Baidu ranked as China’s top search engine. Still in the top slot, of late it has modified its ranking strategy closer to that of Google in that it no longer automatically ranks above others, websites with high keyword density.
Think local
While Baidu leads in China, it is hardly present in Hong Kong so companies need to take a local approach when optimising their websites. To complicate things just a little more, there are two main Chinese languages; Mandarin and Cantonese. Another important point to bear in mind is that social networking sites are extremely popular in China. Top sites are QQ and RenRen and companies would do well to build some element of social networking into their online strategies towards these sites as opposed to those popular in the Western World.
A localised approach and an understanding of online search are essential to the success of websites in other countries. By modifying your website to improve SEO, you can open your business up to new opportunities around the globe.
To discuss your international online strategy email Ceris at ceris@cbimarketing.com
ENDS
As published in C&M magazine October 2010.
Market entry – Which method for you?
December 30, 2010
In our practical series about international marketing, Ceris Burns, international marketing specialist for the cleaning industry considers the different market entry methods and how to select the one that best suits your business.
For a company about to trade internationally, market entry is often seen as the first critical step not only for financial reasons but also because it will set a structure for future international activity. It will determine sales to be had and provide a source of valuable market insight. There are at least 15 different market entry methods used commonly in international business today, so how do you fathom out which is best suited to your company? Let’s take a look at some of the methods and reasons for using them.
The market entry method you choose could be indirect (piggybacking), direct (agent/distributors), a cooperation (joint venture/strategic alliance) or a direct investment (subsidiary or acquisition) and each of these groups will require a varying level of international involvement from you. So your choice of method should be based upon the level of involvement and marketing control your company wishes to have, against the financial and marketing risks.
Domestic purchasing for example (indirect) where the company makes product available for others to export but does nothing to market internationally itself, requires a minimal level of international involvement whereas a company that chooses to operate wholly owned subsidiaries must be prepared to give total involvement. The level of involvement also tends to have serious control and risk implications where higher levels of involvement can bring greater potential for country marketing control and also higher risk due to increased costs. Joint ventures and strategic alliances tend to be popular as they can offer higher levels of control at lower risk and cost provided that the companies cooperate and their objectives are compatible.
If you are reading this I guess that you are most likely considering long term involvement. Unless you already have direct investments in other countries or have identified major potential in your next export market, a direct exporting method could be a good mid level solution for you. This would mean working with overseas agents or distributors, setting up a franchise, management contract or doing direct marketing to the country in question. All of these methods can help you to secure a long term presence in a given market for a low investment and without having significant effects on existing operations. You would be able to exert more influence over marketing activity and to gain a detailed knowledge of the market. The down side would be that your involvement with respect to administration, distribution and marketing would be much higher than indirect methods so you would need to consider market opportunity in order to justify the investment.
Agents i.e individuals or companies which are contracted to obtain orders on behalf of exporters, are the most common method of low cost direct exporting. From my own experience however, finding the right agent and getting them to perform consistently is not always that simple.
A cleaning products manufacturer I know appointed an agent in Dubai and in the early stages it appeared to be a match made in heaven. After the first year however several disagreements were had about points not covered by the memorandum signed. The manufacturer had appointed an agent in Turkey and as a result the agent in Dubai felt betrayed as he had understood that Turkey was within his Middle Eastern territory. Similarly the commission structure for higher volume sales was questioned and a misunderstanding about the reimbursement of marketing costs came to the fore. The agent lost interest and shifted his focus to other brands. Unable to put things right the relationship quickly came to an end.
The motto of the story is…, if selecting an agent or distributor take time in the early stages to clarify expectations and to formalise the relationship in a detailed written contract. To get the most from a partner you must recruit them in a professional manner just as you would if recruiting a member of staff. Assess their suitability alongside predetermined essential criteria such as company financial strength, contact with potential customers, complementary products, location and premises, sales resources and check where your products will sit in the pecking order. Once appointed, achieve a long term satisfactory relationship by motivating the agent, providing adequate ongoing support and ensuring two-way communication.
For further advice on agents/distributors or other market entry methods email ceris@cbimarketing.com
ENDS
As published in C&M magazine March 2010.
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