Climate often affects the design requirements: The ability to withstand extreme heat, cold, dryness and humidity.
Religion and other cultural
differences may also determine whether the product is saleable in its present form or otherwise.
For example: branding your IT anti-spam software product
Amor which mean "Love"
in Spanish will present a different impression of your product selling
them in Spanish speaking countries.
2. Product Package and Name checklist
The
package used to enclose the product for local market may not be suitable for export. Questions to be answered should include:
(a) Does the product need extra protection from rough handling, or climatic extremes?
(b)
Is the product easily recognizable and appealing to the foreign customer?
(c)
Does the label conform to local regulations?
(d)
Does the label clearly indicate the contents, even to persons who may be illiterate?
(e) Does the label need to be in a foreign language?
(f) Does the logo or brand name have another, perhaps undesirable meaning in the local language?
(g)
Does the package need to be larger or smaller than the one sold locally? Perhaps local consumers can only afford to buy smaller quantities of it.
(h) Have the brand name and trademark been registered in the foreign country?
3. After-Sales Service
Many products such as food require little or no after-sales service.
However, machinery and equipment require a certain level of service which can determine whether the customer buys the product or someone else's. Usually, the best way to handle after-sales service is to let the distributor provide it.
Pricing Strategy for Export
The price charged for the export product, should cover all the various costs involved in producing and marketing it. Sometime, an exporter may be satisfied with just breaking even or even incurring a loss - with a view of getting established in a new market.
It is tempting to sell products at a price that covers only the variable costs of each unit sold to make some contribution to the fixed costs or
factory overhead.
There is always the risk that the exporter can be accused of
dumping
its products abroad and are required to pay
anti-dumping
import duty.
An exporter should calculate and determine all the costs involved in selling its product in the foreign market, including:
1. Foreign agent's commission.
2. It's own required profit, and then quote a price on that basis.
Any pricing strategy must be flexible to take advantage of: special discounts for quantity purchases or special introductory prices.
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- Pricing Checklist
Distribution Strategy,
Distribution Checklist
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