Diagnosis of exportFirst phase in which the competitive capabilities of the company in relation to foreign markets are internally analyzed. The strengths and weaknesses of the company are studied to know where it is and the environment in which the company develops its activity is evaluated to try to identify opportunities and threats.
Potential marketsA strategy is adopted. Market concentration or diversification? Concentration involves selecting a small number of markets to achieve a high level of penetration. Diversification focuses stocks to sell to a greater number of countries. making this decision, the countries are selected, eliminating those that do not meet the criteria that have been chosen as basic.
Input channelsThe way we enter foreign markets will be decisive for the Export Plan. The main alternatives for the commercialization of the products are through direct export, through a commercial agent (importer, distributor), or through a piggyback agreement, a license, a franchise, a joint venture or a commercial delegation.
Product adaptationAt this stage of the Plan, those products or services offered by the company that have the most capacity and potential to be exported must be chosen. It must be borne in mind that, many times, products must adapt to the market both at the level of attributes and at the level of legal regulations of the country of destination. At this stage, the pricing strategy will also be established.
Communication policyIt will begin by verifying if the brand / branding used by the company adapts to the foreign market, or alternatively, it is advisable to create a new one. The advertising and communication instruments must also be specified, such as digital marketing strategies and promotion strategy, attendance at fairs, promotional videos or point of sale promotion.
ConsolidationIn this last phase, the sales objectives and provisional operating account must be specified. The concepts to study are: foreign sales, gross trade margin, overhead costs, cost of sales, and operating balance.
In conclusion, before venturing into exporting, companies must carry out an Internationalization Plan in order to set their internationalization purposes, allocate their resources appropriately, determine potential countries, the way to reach customers and how to make offers. competitive.