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International Marketing Matters SCA makes the Global 100 Sustainability List...again
Market entry - which
Tork manufacturer SCA is not appear this year.” qualified as one of the Global
once again the only tissue Britain led the way this 100 Most Sustainable
method is for you?
company to feature in the year with a total of 21 Global Corporations every year since
latest Global 100 Most 100 companies being UK- the scheme’s inception in
Sustainable Corporations based. The US came in 2005.
list. second with 12 corporations, SCA was also named one
In our practical series about
This is the sixth year while Canada and Australia of the world’s most ethical
international marketing, Ceris running that the company gained joint third position companies In April 2009 for
Burns, international marketing
has been recognised as one with nine Global 100 the second year running. The
specialist for the cleaning
of the world’s most companies each. The US Ethisphere Institute in New
sustainable companies by topped last year’s list with 20 York considered more than
industry, considers the different Canadian Corporate Knights. companies. 10,000 companies in its
market entry methods and how
The list comprises companies retained our place in the The latest list was unveiled annual ethics survey and
to select the one that best suits
from 24 countries that have Global 100 list since around recently at the World named SCA among the top
been evaluated on how 50% of the companies Economic Forum in Davos, 99 in the world.
your business.
effectively they deal with included in last year’s list do Switzerland. SCA has www.tork.co.uk
various environmental and
For a company about to trade internationally, market entry
social issues.
is often seen as the first critical step not only for financial
“Sustainability is integral to
Free travel for ISSA/Interclean attendees
reasons but also because it will set a structure for future
everything we do, and we
ISSA/Interclean 2010 (Monday 26 to Thursday 29 April at the Amsterdam RAI) is offering visitors
international activity. It will determine sales to be had and
are delighted that our
a free NS [Dutch Railways] return ticket between Amsterdam Schiphol and Amsterdam RAI dur-
provide a source of valuable market insight. There are at
approach is gaining such
ing the trade show this year. Amsterdam RAI's aim is to stimulate the use of public transport.
least 15 different market entry methods used commonly in
global recognition,” said
Discount travel is also available from other NS stations: an NS return ticket can be purchased for
international business today, so how do you fathom out
Susan Iliefski-Janols, SCA’s
only €12.50 and is valid from any station in the Netherlands.
which is best suited to your company? Let’s take a look at
director environment and
Train tickets can only be ordered online by professional attendees if they pre-register for
some of the methods and reasons for using them.
product safety, SCA global
ISSA/Interclean. Alongside good NS discounts, visitors can also take the Gemeentelijk
The market entry method you choose could be indirect
hygiene category. “It is
Vervoersbedrijf Amsterdam's buses, trams and metros at reduced rates.
(piggybacking), direct (agent/distributors), a cooperation
particularly gratifying to have
www.issainterclean.com
(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 (ie 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 emerged 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
Thousands of fl oors.
costs came to the fore. The agent lost interest and shifted
his focus to other brands. Unable to put things right the
One mop head.
relationship quickly came to an end.
The moral of the story is...if selecting an agent or
With its unique gentle wash action, the Miele PW5064 washing machine signifi cantly
distributor take time in the early stages to clarify
extends the life of mop heads and cleaning cloths. And it gives you perfect
expectations and to formalise the relationship in a detailed
disinfection time after time. Miele products are engineered to keep performing wash
written contract. To get the most from a partner you must
after wash, year after year. Meaning less downtime, longer replacement intervals and
recruit them in a professional manner just as you would if
ultimately less cost. Which is great news for your business. And your balance sheet.
recruiting a member of staff. Assess their suitability
alongside predetermined essential criteria such as company For years of perfect performance, it must be a Miele.
financial strength, contact with potential customers,
complementary products, location and premises, sales
Call 0844 893 0755 or visit www.miele-professional.co.uk
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.
March 2010 C&M5
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