How to successfully break into a foreign market

ASIA FOCUS : How to successfully break into a foreign market

In the first of a series of articles intended to highlight the issues faced by Thai entrepreneurs who venture abroad, the head of Masterkool International discusses his company's experiences, how it selected its markets and the channels it used to build its brand overseas.

Operating a business in foreign countries is a dream of many Thai entrepreneurs, but it requires lots of preparation.

Entrepreneurs who want to head abroad need to understand a laundry list of regulations and refine their own products to excel in specific markets.

Take Masterkool International for example. We manufacture, distribute, and export Masterkool-branded mist fans. I've been a management executive for more than five years now, and about four years ago I spearheaded a move to sell our brand to foreign customers.
In those early years, I encountered many problems and obstacles. But those experiences have proved essential in giving us a competitive advantage today.

I like to share stories about our overseas start-up to Thai SME operators who are interested in setting up shop overseas.

The most important thing is determining a clear strategic goal for the product before plunging into a foreign market.

A Masterkool mist fan, as you may imagine, is a seasonal product that sells best during the summer heat. At the peak of the hot season, the fans are flying off the shelves. But during the rainy and winter seasons, sales volume hits normal levels or even stagnates, resulting in a slowdown of stock release.

Therefore, selling to foreign countries boosts stagnant sales in the offseason. This creates a new market for the product and assures consistent cashflow.

For Masterkool, this worked out very well. The rainy season in Thailand corresponds with the summer season in Europe and the Middle East, so we can arrange our sales plan in each region to stabilise sales volume for the entire year. We sell throughout the year without interruption.
Entrepreneurs also need to seek innovation that paves the way to distribution channels abroad. Stores both here and overseas want innovative products that can draw new customers.

In the case of Masterkool mist fan, I spread the word about the product by putting a sticker with the company's address and phone number on the rear of every unit. When tourists bought them, any potential buyer could easily contact the company for further information.
In the past, foreign customers actually walked in to visit the company after seeing Masterkool products at tourist spots in Thailand. However, we considered the tourist market superficial since it didn't present continuous sales.

We had to come up with a serious plan to export our product to foreign markets. Without taking a chance, we would not gain anything.

After management decided to pull the trigger, I quickly took our Masterkool project to the Department of Export Promotion. Officials provided us with helpful suggestions for foreign market expansion and invited us to participate in roadshows arranged by the department where we could open a booth to present our product.

We were able to select the countries we were interested in exporting to, and decided to focus on the Middle East and Europe. We then found reliable local distributors in each country.
Furthermore, the Department of Export Promotion helped us tremendously in cutting costs incurred from selling overseas and gave us advice on business connections.

I truly encourage all Thai business operators who are preparing to expand overseas to head to the Department of Export Promotion, as it is really a helping hand.

It is imperative for you to determine a thorough strategic marketing plan for your products to succeed abroad.
Nopachai Veeraman is the managing director of Masterkool International Co Ltd, http://www.masterkool.com/

Article from : http://www.bangkokpost.com/Asiafocus/16Jun2007_focus02.php
For more comprehensive information, visit her other websites at:
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