Page 106 - Export and Trade

Marketing Strategy

international markets. Exporters demonstrating strong then more valuable, and specialisation makes it more
growth have clear criteria for their distributors, set GLI¿FXOW WR FRPSHWH ZLWK 7KH JRDO LV WR EH RQH RI WKH
clear sales targets and KPIs, and hold their distributors best in the market you are trying to enter – if you have
accountable for them. multiple high quality competitors already established in
7KH LPSRUWDQFH RI ¿QGLQJ GLVWULEXWRUV ZLWK D WUDFN the market – things may get a little tricky.
record of success in delivering on your objectives with Hyper-niching could involve altering your product to
similar business is critical. This may mean to go deep in cater for a gap in the current market, or maybe even
a market you require more than one distributor to reach altering your channels or segments compared to existing
different channels. markets to increase the prospects of success.
It is important to remember that the supply chain or Insights that identify niches come from in-depth
channels for reaching your customers in international NQRZOHGJH RI PDUNHWV DQG KRZ \RXU RIIHU ¿WV 7KH\
markets may not be the same as your domestic market. will appear as a result of an effective ongoing market
Local knowledge and networks, a similar business validation. By researching, talking, designing, testing and
culture, transparency, brand building expertise constantly learning, you will come to not only understand
and shared objectives are all regarded as critical the market, but be an expert within it.
requirements in a new market partner/distributor
relationship. So how can small to medium size businesses
in New Zealand ensure they are following
Product pricing and brand control these principles?
Price control and brand control are critical and
inextricably linked both within markets and across the Supply chain
greater international marketplace. Most New Zealand Understanding the supply chain is essential for a
brands have to command a premium to be viable; this successful entry into a new market or expansion in an
is underpinned by strong brand management in the existing market. For a New Zealand exporter their offer
strongest businesses. needs to deliver to every member of the supply chain to
Successful companies maintain a clear and distinct successfully reach the end user.
point of competitive differentiation to retain price So it is important to ask yourself, “What is the role
premium. of each member of the supply chain? How does my
These pillars are the epitome of the old cliché ‘the product add value to their organisation or meeting their
devil is in the detail’. This is detail around competitors, objectives?”
detail around channels, detail around potential partners, A successful export strategy relies on an intimate
detail around external threats and opportunities, and understanding of the market that you want to enter
even internal strengths and weaknesses. including the practical stages of the process that delivers
It is vital to understand everything about your market the product to the end user. How products and services
from the outset, but even more importantly, to continue reach the end user can differ by market. You need to
to learn as the market grows and develops. know the value of your product in the market better than
Success is based around a market-led focus into all every member of the supply chain and ensure that you
facets of the export process, with core elements of can communicate how this is valuable to each member.
specialisation and ‘hyper-niching’. Whether it is giving a distributor a unique offer, giving a
reseller increased margin or making it easier for the end
Why invest in preparation? user to complete a certain job.
Most New Zealand exporters will be looking for A supply chain can be relatively simple if you are
opportunities that on a global scale are very small and perhaps selling direct to a retailer in an international
specialised. Globally small niches are extremely valuable market who takes care of all importing, warehousing and
and most businesses are specialists serving a niche to a sales and promotional activity.
very high standard. It can also be complex. For example, a business selling
To avoid competing only on price New Zealand high performance products for superyachts needs to
exporters need to identify where they can be leaders of have a strategy to sell to, educate and train importers,
specialist niches. We call this ‘hyper-niching’. distributors and sub-distributors, boat-yard staff and
Hyper-niching enables you to be the leader in a management, specialist contractors, management
narrow, specialised market segment. Your product is companies, captains and boat owners.

104 NZ Export & Trade Handbook 2018