EXPORT MANUAL

YOUR GUIDE TO MARKET RESEARCH

A GUIDE TO PRACTICAL AND LOW COST MARKET RESEARCH
METHODOLOGIES IN EU COUNTRIES

CENTRE FOR THE PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES

YOUR GUIDE TO MARKET RESEARCH
A guide to practical and low cost market research
methodologies in EU countries

Compiled for CBI by:

Searce

in collaboration with
A. van Duijvenbode

2003
CONTENTS PAGE

PART 1: INTRODUCTION 5
1.1 Why is research so essential? 5
1.2 What is market research? 6

PART 2: THE MARKET RESEARCH PROCESS 7

2.1 Step 1 Define your research problem 8
2.2 Step 2 Which research technique? 9
2.2.1 Desk research 9
2.2.2 Desk research using the Internet 13
2.2.3 Field research 17
2.3 Step 3 Research planning 20
2.4 Step 4 Collecting relevant data 21
2.5 Step 5 Analysis - from data to information 22
2.6 Step 6 Transform information into intelligence 24

PART 3: RESEARCH AT EXPORT MARKETING STAGES 25

3.1 Stage 1 Export Market Analysis, Internal Analysis and SWOT 26
3.1.1 Market size 27
3.1.2 Market requirements 30
3.1.3 Trade flows 33
3.1.4 Market structure 34
3.1.5 Market growth and trends 35
3.1.6 Market targeting and segmentation 37
3.1.7 Competitors 39
3.1.8 Consumers / buyers 40
3.1.9 Internal Analysis and SWOT 41
3.2 Stage 2 Decision making and formulating objectives 42
3.3 Stage 3 Market Entry Strategy (MES) and Export Marketing Plan (EMP) 43
3.3.1 Product and positioning 44
3.3.2 Prices and margins 45
3.3.3 Place and distribution 46
3.3.4 Promotion 47
3.4 Stage 4 Evaluation and feedback 48

PART 4: ORGANISING MARKET RESEARCH 49

4.1 Research preparation and budget 49
4.2 Involving other people in research 51
4.3 Organising your data and information (MIS) 53

CHECKLIST 55

APPENDICES 57
1 Useful Internet sites 57
2 Useful addresses 58
3 Recommended reading 60

GLOSSARY 61
PART 1 INTRODUCTION
‘Your Guide to Market Research’ is a manual which provides practical guidelines for
exporters from developing countries to become familiar with their prospective mar-
kets. This manual consists of four parts: Introduction to research (Part 1), How to
carry out research using the Market Research Process (Part 2), What to research
during the Export Marketing Stages (Part 3) and Organising Market Research (Part 4).

1.1 Why is research so essential?

Market research is an essential business tool and a must in a competitive market

environment where buyers are not really waiting for your product. The more know-
ledge you have about your prospective markets and its customers, the more likely
you will succeed. A good understanding of local consumer target groups and their a good understanding
buying habits will help you to find out the right applications for your product. is the key to succes

Using research you can develop a product concept and choose the right positioning
strategy in each market. For example, you may discover that a particular taste in food
is mainstream in one market, while it is a specialty in another market.

From discovering a niche to planning an effective export marketing strategy, research

can provide the details which can be crucial for success. Less money and energy will
be wasted on false hopes, especially when you plan to export for the first time.
On the other hand, do not expect that market research is a guarantee for business
success. However, it can certainly help prevent you from taking wrong decisions.

Market research can help you in the following ways:

• You can find out: the largest markets for your product, the fastest
growing markets, market trends and prospects, market conditions,
practices and your opportunities.

• It enables you to narrow down your view from a broad scope. You
can set your priorities towards a specific target market and plan
future markets over a longer term.

• It helps you to identify the best product introduction tactics. After e.g.
one year, you can evaluate your own and your trade partners’ efforts.
Then you can make the necessary adjustments in each market.

• Getting an insight into your competitors, including their strengths

and weaknesses, their mistakes and reasons for success.

• You may also find ideas for new product development.

• By showing more interest in and understanding of their market,
buyers will take you more seriously.

Proactive approach
By staying aware of latest developments in your target markets, you can make your narrow your view
marketing decisions more quickly. In a fast changing international business environ- from a broad scope
ment you need such a proactive approach, which is actually your competitive edge.

Even in a period of slowing population growth, new trends and consumer target
groups emerge. For example, the growing number of older people or single house-
holds. Both groups look for convenience products. By market research you can find being proactive as a
out how large these groups are, how they differ by country and you can anticipate competitive edge
their interests.
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By responding quickly and introducing your product specifically tailored to these
groups in terms of size, appearance etc., your proactive approach may prove to be
successful.

Research as an integral part of your strategy

Market research is more than just compiling data and statistics. All data
collected needs to be analysed and to be transformed into relevant
information. This forms the basis of your marketing strategy and tools.

Researching markets, like all planning processes, is cyclical. At first, as

you review your initial data, you may find that some of the information
raises new questions that suggests the need for additional research.
In the end you can build up your own information system and add
missing or new data after each search, keeping your system up-to-date.
So, research does not stand on its own, but forms an integral part of
your Export Marketing Strategy. It is a continuous process.

Research needs a commitment

Market research requires a commitment in terms of time and money. Many companies
still aim to make every export venture ‘self financing’, i.e. start to export and finance
the investment from the profit from sales in these markets. This does not apply to
market research. Here you need to invest some money before introducing the product,
which prevents you from making expensive mistakes in your target markets later on.

1.2 What is market research?

As you now have become more aware of the essence of market research, you need
to know what it exactly is. Market research includes all methods to evaluate which
foreign markets have the best potential for your products. A simple definition is:

Market research is the collection and analysis of data about markets, people, definition research
restrictions, channels and players to support better export marketing decisions.

The following myths keep exporters away from undertaking any form of research:

• Myth 1: ‘Research is only for intellectuals and academic people’

This misunderstanding is partly created by researchers who have their own sophisticated
definitions and jargon. However, good researchers are well aware that research can be
easily designed and implemented by anyone.

• Myth 2: ‘The trade partner will do all necessary research’

Some exporters believe that they already have enough information through their trade part-
ner or expect the research to be done primarily by them. In addition, some exporters regard
market information as a by-product of their accounting system. But often trade partners
lack giving a neutral overview of the market and channel developments in their country.

• Myth 3: ‘Market research is too expensive’

Market research does not necessarily mean doing surveys, interviewing large numbers of research does not need
people and carrying out complicated computer analyses, which are expensive - especially to be expensive
when entering different EU countries. There are many low cost techniques (e.g. desk or
internet research) which are explained in this manual.

• Myth 4: ‘I am afraid to lose control with an information overload’

Some exporters are already very busy and are afraid of losing track when browsing
through all information and dealings with researchers. However, most research discussed
in this manual requires common sense and a time commitment.

There are various research techniques, which are covered in Chapter 2.2.
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PART 2 THE MARKET RESEARCH PROCESS
Effective research comes from good preparation, categorization and planning. Within
the limits of time and budget, you have to collect a lot of data, without losing track.
Your research will succeed when you structure your approach.

This Part explains the 6-step research process (see below), and focuses on some low-
cost techniques which could be used during this process. Within each process, you can
combine different research subjects (e.g. countries, market size, target groups, trends,
players, trade channels) and use different techniques.

Step 1
Define your research
• What export marketing experience do you have?
problem
• What do you want to be clarified by research?

Step 2
• Desk research
Which research • Desk research using the internet
technique? • Field research

Step 3
• Categorizing data by country and subject
Research planning
• Structuring by a Research Action Plan

Step 4
Collecting relevant data
• Which information is available?
• Which countries to start with?

Step 5
• Sorting and avoid getting lost (information overload)
Analysis - from data to • Filtering and matching reliable and useful data
information - • Organising and checking against the research problem

Step 6
Transform information
• Explain the cause and predict what will happen
into intelligence
• Give indication of actions

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2.1 STEP 1 Define your research problem

What export marketing experience do you have?

Most exporters start with a broad view by doing (desk) research initially or by looking
at the market environment. Here it is important to define your research problem in know your buyers’
relation to your export marketing experience. Where does your company stand in market conditions
exporting to the EU? Do you already have clients in some countries or is this your first
export business venture to the EU?

For example, when starting to export to the EU, you first have to find out whether this
business venture is worth your investment. Your research problem would be then first
to familiarise yourself with EU markets by finding out relevant information on subjects
such as: market sizes, requirements, structure, developments, segments, main players etc.

This research problem is evident if you are considering exporting for the first time,
but also if you already have customers in EU markets and are considering expanding
to other EU countries. In both cases, you will have to deal with each export marketing
stage in which you will have to find relevant information. What to research during each
export marketing stage will be further explained in Part 3 of this manual.

What do you want to be clarified by research?

When you have become familiar with EU markets, knowing which opportunities exist,
and when you have an idea of which markets to approach, the logical next step is to
go further into details. The more details you want, the more specific your research
problems will be. Finding out how your competitors sell in these markets - if you
should imitate them or innovate - and how to adapt your product in both cases - could
be a problem which you can clarify by research.

In assessing export opportunities, you may have carried out some research in the past.
You also may already have some information on EU markets within your own com-
pany. Once you have checked your internal sources and defined your research problem,
you can make a list of what you want to know and what can be found out. You should
try to find information which is obtainable, affordable and relevant.

It may take some time and effort to become more trained in research, but once you your efforts will be
carried out a research process a few times, it will be easier and ultimately be of great rewarded later
benefit, particularly when you know the useful sources which are relevant for your
specific product.
EXAMPLE AN EXPORTER OF TEXTILES
An exporter of textiles sent samples of his new collection to his existing customers and to potential
customers whose addresses he collected from a mailing list. He was convinced that this was the most
effective way of doing market research because ‘response could immediately turn into orders’. So he
invested some money to send his parcels and was hoping to get at least some reactions. But unfor-
tunately he did not receive any feedback from potential customers, who already receive so many sam-
ples. His existing customers politely told him that they were not interested because both the design and
colours of his collection were dated. ‘He should have sent these one year ago’ a few of them said.

With these results the exporter concluded that market research was too costly. Besides, it did not give
him any return and thus would not be needed anymore. The mistake he makes here is that he does not
regard this result positively, as a basis for a new market research. Even if he was already selling to
some customers, he runs the risk of losing them in the future. So he has a research problem to solve
here! By analysing his market more closely he can create a new collection, becoming the basis for his
future strategy.

He could do some desk research e.g. looking at internet sites of European exhibitions and magazines
to get an idea of the trend forecasts and visiting sites of some major clothing retailers. With this infor-
mation, he can develop an export collection and a well thought-over USP (Unique Selling Proposition)
to clients. Instead of spending money on sending samples, he could search on Internet sites of some tra-
ding platforms, where he can find buyers who may be interested. Once the contact is there, samples can
be sent.
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2.2 STEP 2 Which research technique?

Now that you have thought about the neccessary information of each country, you
need to find out the sources to get some of this information.

In market research there are several techniques for collecting data, which are either
desk research or field research. Each technique relates to the sort of data, which is
subdivided into primary data and secondary data:

• Primary data: in this case you, or a research specialist, collect data directly from
the foreign marketplace using mainly field research (see Chapter 2.2.3).
Field research always relates specifically to your product, is done on the spot,
and usually follows desk research.

• Secondary data: here you are looking for data previously collected by others e.g. secondary data as the
companies, governments using desk research. Secondary data is less expensive first step
and by using the internet, you can find much in on-line databases.

The next section focuses on these techniques, which are useful and affordable for
exporters from developing countries.

2.2.1 Desk research

What is it and what to collect?

Desk research is the best technique to do your first asses-
ment. Here you collect secondary data in your company
(internal sources) or elsewhere (external sources). You
search for information in hardcopy or in electronic form.

Some examples are: country overviews, market surveys,

company profiles, sales tracking data, trade statistics,
consumer surveys, articles, newsletters, magazines etc.

Within the abundance of information, especially in deve-

loped countries, you can familiarise yourself with new
markets. At the same time, you must try to find relevant
data for your specific product.

The challenge here is to collect and compile as much useful information and statistics finding relevant infor-
about your target markets within a limited time. mation in a limited time

During your desk research, try to mark the pieces of information with a date and
source. In doing so, you still know where you got it from, especially if the information
proves to be irrelevant later on.

DESK RESEARCH

Advantages Disadvantages

- Data collection is fast - It is often too general

- Relatively cheap - You have to validate its reliability

- Field research could be obsolete - Conflicting statistics, different definitions

- You or your staff can do it - Information can be too old

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Where to find secondary data?
Start collecting all data from your office at your desk, surfing on the Internet and
requesting data by e-mail, phone, fax etc. In most EU countries, especially in
Germany, France and the UK, people want a written request for information including
a short explanation who you are and why you need it. Data collection usually takes
time, so you could have trainees or students doing much of this work. Here you need
to give them a clear briefing of what you want - see also Chapter 4.1.

How to ask for free or low cost information?

Try to make a friendly but polite standard fax, e-mail or letter. You could use this
several times by slightly modifying it according to the people or organisation you are
contacting. Avoid asking too many questions, start with 2 or 3 questions and try to be do not ask too many
as specific as possible. In your request, it is important to set a deadline, which gives questions
you a reason to follow up later, but do not push too hard unless you have to pay for
the information.

It is important to find the right contact person, but often they are not in or too busy.
So simply explain what you are looking for. There is a risk of miscommunication
between you and staff of the organisation, which is dealing with your requests.
They may not be familiar with your product or your situation. Bear in mind that when simply explain what
asking for information free of charge, you cannot be certain to get specific answers. you are looking for

The main sources

1 CBI
CBI is a good starting point for your desk research. There are around 35 informative
EU Market Surveys on specific sectors available. Each survey reviews the latest mar-
ket developments, opportunities and provides export marketing guidelines. They are
already tailored for exporters from developing countries. In addition, each survey
gives many references and sources (addresses and Internet sites) for further research.

Registered exporters can download the CBI surveys

from the site www.cbi.nl.

CBI also provides manuals on export planning and other

topics, two fashion forecasts per year and a bimonthly
magazine, the CBI News Bulletin.

A special database, the Accessguide, has been set up

with all relevant information on non-tarif trade barriers
(e.g. environmental, health, safety and social issues)
- see - www.cbi.nl/accessguide.

In most EU countries, there are similar organisations

which stimulate imports from developing countries.
These can be found at www.tpo-net.com.

2 BSOs
In many developing countries, there are organisations which promote the exports
from their country through assistance and export promotion programmes. There are
governmental BSOs (e.g. ministries and national trade promotion organisations) and
sector associations. Next to individual assistance, they can provide the following
information services:
• Trade and country statistics and publications about EU markets.
• News bulletins and information on market opportunities for specific products.
• Database of other exporters in your country and of EU importers.
• Specific product or market information through customised research.
10
 3 NGOs
Within the large number of NGOs, some organisations such as ITC, FAO, OECD,
UNCTAD, World Bank, Oxfam etc. offer assistance programmes for exporters from
developing countries.

Concord is a EU coordination centre for NGOs, which is a good starting point to find NGO platforms and
NGOs in your target markets. Their site www.concordeurope.org gives an overview local networks
of National NGO platforms e.g. www.bond.org.uk and of NGO networks in all EU
countries.

At the sites www.unsystem.org; www.oneworld.net or www.euforic.org you also can

find links to NGOs aiming for a greater fairness in global trade.
In addition, you could contact the local ministries of foreign affairs, which publish
address lists of NGOs in their country. As well as providing information, NGOs may
offer credit schemes, incentives or provide assistance in locating and contacting
potential customers in EU countries.

4 Chambers of Commerce
Before approaching organisations abroad, you could check your local Chamber of
Commerce, which also functions as a BSO. As well as the usual Chambers, there are
bilateral Chambers of Commerce e.g. The Dutch - South African Chamber.

In EU countries, most Chambers offer a variety of information e.g. regulations and

the major trends in industry. You can also find information about local trade press,
trade fairs, business culture and links to other relevant organisations.

Addresses of Chambers of Commerce in EU countries are given in Appendix 2.

5 Trade Associations
European Trade Associations that are well organised can provide good information.
They have their own reference libraries for their members. They sometimes conduct
their own national or international market studies. In their annual report, which are extracts of studies in
sold at low cost to non-members, you can find extracts of these studies. annual reports

If possible, try to visit these associations direct or at trade fairs. Be aware that there
are trade organisations at different levels (e.g. retail, manufacturing, or industrial
level). Each organisation provides information from their own perspective.

Recently many Trade Associations have an Internet site from which articles can be
downloaded. You also will find links to other product or sector related organisations.

6 Embassies
Your embassies in target markets can be a useful source for general economic data general information
or country information. They provide guidance on any local regulations or laws.
They usually also have general information on doing business within their country.
In addition, they can introduce you to key persons or organisations in your sector,
and to translators.

7 Banks
Banks are another source, especially for financially related data such as exchange rate
forecasts. Major banks also have departments that are involved in researching world
markets, economic trends and developments in international trade.

8 EU Information Centres
Most EU countries now have a local information centre in the major cities, or there EU member countries
may be a special European corner in local libraries. Here you can find information on
EU legislation and directives, EU funding schemes and sources. You can also find
general information about the EU member countries here.
11
 9 Libraries
You could visit libraries in your own country or in your
target markets. As well as National libraries, most
organisations mentioned so far, have libraries which
you can visit. You oftenneed to make an appointment
beforehand.

Searching in libraries is a self-service activity, which

implies that you need to get familiar with their search
system. You often search by subject, title or keyword,
which leads you to a book or publication. You can copy
useful parts.

National libraries have an online catalogue at their

Internet site. In case of a complex system, you could
have a look beforehand.

Some libraries have a document supply service which

can carry out a search for you at limited cost and send
the result of this search to you, even if you are overseas.
You need, however, to become a full member.

In most libraries, reading rooms have consumer magazines, international newspapers,

journals, trade magazines, annual reports and sometimes an online article database and
market reports.

10 Trade magazines and newspapers

Trade magazines published in your target market are very useful for gaining a general sector specific
impression of current market activity - competitors, trends, current issues and opinions,
active agents and distributors. Special features can sometimes include relevant market
statistics. You can receive these magazines overseas by contacting them by e-mail,
ask at a library, your embassy or to someone you know who lives there. Once you are
in contact with them, you can ask for back copies.

11 Other
The method to collect information from all these organisations as well as from airlines,
national statistics offices, exhibitions, etc.. is very much the same as mentioned earlier
- see page 10.

Contacting these sources will give you a basic understanding of what information is
available and some opinions of experts (e.g. at trade associations or trade press). You
undoubtedly will get many tips on other sources for further research.

12
2.2.2 Desk research using the Internet

The internet offers an almost endless stream of information. Recently, developments an enormous resource
in electronic and information technology have been fast. If you are connected to the
Internet, you can access an innumerable number of sources from your desk.

The ultimate technique for data collection?

The internet is an essential and useful research tool, which can save you much time.
However to avoid disappointment, you must be creative when entering key-words and
narrow your search in time. Once you spontaneously start to search for a subject, you
can easily find yourself going off at an interesting looking link leading to nowhere.

Afterwards, you may look at your watch to find out that you have spent several hours
and failed to find any relevant informationon the subject. So you need to go on the
Web again, the disappointment may be repeated etc. etc. Try to be prepared, creative,
stick to the subject and know when to stop.

How to structure your Internet search?

Similar to all other research techniques, structure your search and write down before- be creative and stick
hand what you are looking for, keeping your Research Action Plan (see Chapter 2.3) to your subject
at hand. You could search in the following ways:

1 Search by keyword using search engines

2 Search at Internet sites and their links
3 Search in (online) databases
4 Search at relevant information portals for your product.

1 Search by keyword: an example

Your Internet connection provides around 100 million websites throughout the world,
more information than any library can offer. This enormous amount of information is
categorized by data providers in their own way. There is no one way to carry out an
ideal search. But there are some techniques and skills that save you time, especially
with regards to narrowing or refining a search.

You could search in a creative way by using different keywords. You also can mini- use different keywords
mize the number of entries by adding codes to your keywords. These codes differ and search engines
per search engine. If for example, you are looking for information on the Spanish
market for luxury nuts, you could search by using the following codes:

+ (plus sign) Indicates that words must appear in each webpage

e.g. link the words spain+market+nuts (omit blanc space)

- (minus sign) Identified words that should not appear in each webpage.
e.g. spain+market-flea market, which excludes ‘flea market’

“ ” (quotes) Indicates the exact multiword phrase you are looking for.
e.g. “the Spanish food market” (as e.g. title of report)

AND To connect two or more words

e.g. spain AND market AND nuts (try with blanc space)

OR Make combinations with words

NOT Use in combination with AND in order to exclude words

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The best advice is to do it yourself and get familiar with search
techniques through trial and error. In the example, you could first
search on keywords in English and later on in Spanish, which you
need to translate.

Here try to set yourself a limited time e.g. 1 hour and scroll per
search, a maximum of ten pages. Please be aware that each page
shows the documents in which your keywords are used, which are
not necessarily the most relevant documents. So try to use more
keywords, change them regularly and use different terms each time.

Search engines
In addition, use a few search engines, of which google.com is the
most popular. Others engines include msn.com, altavista.com.
And if you are looking specifically into Spain, use Spanish search
engines. You can find these at www.searchenginewatch.com or at
www.whitelines.nl

SEARCH BY KEYWORD ➧ Spanish market for luxury nuts:

• Using Explorer or Netscape, go to a search engine e.g. google.com

• You can search using one of the following keywords in these or any other combinations
➧ Spanish market luxury nuts
➧ Spain+market+nuts
➧ Spain consumption nuts
➧ Mercado nuez
➧ Consumo AND nuez NOT pistachios
➧ Spain+production+nuts
➧ Spain+Gallina Blanca+nuez
SEARCH BY TOPIC
• At general sites of Spanish organisations, ministeries or statistics offices,
you can
search in their database for information on nut relevant topics such as; demographic,
socio-economic, culture and daily patterns. At sites of consumer magazines you can
search for information on Spanish eating and drinking habits and health issues.

2 Search at Internet sites and their links

You can scroll through sites of organisations, companies and retailers in EU countries
and see what you can find. Here you need to know the Internet address of the organi-
sation. Or you can try to find the organisation by the name and the country characters.
Each Internet address has a suffix or TLD (Top Level Domain name) which indicates
the nature of the organisation or the country code. For example:
ORGANISATIONS COUNTRY
• .com is a commercial company • .de = Germany
• .net is a service provider • .fr = France
• .org is a non-profit organisation • .co.uk = United Kingdom
• .gov is a governmental organisation • .nl = The Netherlands
For example, if you want to know which nuts are popular in Spain, try to find out use your intuition to
what sort of nuts are being sold by the largest retailer. In Spain, El Corte Inglés, the search by name and
largest department store, is important in food retailing and has much information suffix
on their Internet site. If you do not have the correct address, try www.elcorteingles.es
(es is the country code for Spain). or www.elcorteingles.com. Otherwise, you can
type ‘el corte ingles’ as a keyword using a search engine.
14
At their site you can check the food section (= alimentacion) showing their products
and prices. You could also find out their purchasing policies for foreign suppliers.
The useful links at their site lead you to the largest hypermarket chains Eroski and
Hipercor in Spain, both operated by El Corte Inglés.

As well as companies’ own sites, governments, national statistics offices, NGOs, check out useful sites
trade associations, trade portals, trade fairs, trade press also have their own Internet
sites. In addition, you may also find worldwide news media (e.g. Financial Times)
useful; they publish articles on the EU economy, specific industries and on individual
companies.

SEARCH MORE SPECIFICALLY AT INTERNET SITES ➧ URLs of useful sites related to nuts

• Have your research action plan and bookmarks near at hand

• Go to the sites of:
-The International Tree Nut Council ➧ www.nuthealth.org
- Intern. Trade Press ‘The Cracker ➧ inc.treenuts.org/cracket.html
- Intern. Trade Press ‘The Clipper’ ➧ www.agropress.com
- Alimarket, Spanish food magazine ➧ www.alimarket.es
- Portal for Food Ingredients ➧ www. ingrid.net
- ITC, P-Maps or C-Maps ➧ www.intracen.org
- Spanish Business Platform ➧ www.spaindustry.com
- Spanish Statistics Office (INE) ➧ www.ine.es

• If the URL no longer exists, you can search for the new site using a search engine
and enter the name of the company, organisation or magazine

3 Search in databases
There are databases on the Internet which you can not find by search engines because
they only can be found when searching on particular websites e.g. of Governments
or universities. It is definitely worthwhile to do searches at these sites e.g. or
www.usatrade.gov where you can come across market reports on EU countries
which are made for US exporters, which can be downloaded free.

You can also buy up-to-date information reports from online databases, which might
be more specific to your product. Online databases are operated by business infor- are these reports
mation providers such as LexisNexis, Marketresearch.com and market research worth the money?
companies such as Nielsen, Mintel, Frost&Sullivan, Euromonitor, Snapdata etc.

Also, some magazines put reports and articles available online at a

charge. Often you can download a summary or table of contents of
the reports and check how well they actually cover your specific
product well.

Once you decide to purchase a report, you must pay in advance by

a valid credit card. Then you can download the report or have it sent
by e-mail on CD Rom or in hardcopy. Most reports are expensive,
even if you can buy them in parts. If you have the time, you could
continue to search for free information on other sites instead.

4 Search at information portals

Sector based information portals are designed to be ‘one-stop-shops’ for all your
information needs. They are made by knowledgeable experts in the sector.
For different sectors, there are useful portals which offer comprehensive information
or act as a gateway to other sources on the Internet.
15
These are a good starting point for your search. Most of
these portals offer industry news, information about
product development, business directories, trade statistics,
news sources and sometimes a business platform.

In addition, they provide information about existing, new

or upcoming regulations. Internet addresses of some
interesting portals are given in Appendix 1.

Further information about portals can often be obtained

from the trade press or from other online sources e.g. the
CBI website at www.cbi.nl (link plaza) or the International
Trade Centre (ITC) tool P-maps (www.p-maps.org).
However these P-maps are at a charge.

Specific information
Information from these sources may give you an idea about the sector, but may not information is too
specific enough for your product or market to make the right decision. general or outdated

Often research for your specific product has never been done, or companies who have
done so will not share that information with potential competitors. In addition, the
data in these secondary sources may be at least 1-2 year old, especially when trade
statistics were used. Furthermore, southern EU countries are relatively slow in
providing statistics. In the meantime, trends may have changed.

Registration necessary
More frequently, you need to register in order to search on websites and have free
access to basic data and articles. The registration procedure can be free of charge,
but it can be off-putting if you have to register for virtually every site you are visiting.

You have to remember many different passwords, so try to use the same username
and password for each site. If this is not possible and the service automatically
provides you with a password, keep a list of passwords during your search.

Managing favourites or bookmarks

While searching, you come across interesting websites and addresses you can store creating and organizing
in your computer. In Explorer you can create a map ‘favourites’ (or bookmarks), your favourites
which you can categorize by subject or by country by using ‘Organize Favourites’.
To these categories, you can add useful sites as follows:
• When you are at the interesting site select ‘Favourites’ in the Explorer menu
• Click on ‘Add to favourites’ and now you can select under which category you
want to store the site. You can also rename this site.

Printing and saving internet pages

When searching on the Internet, you could print out the useful pages you come across
Or you can ‘cut’ and ‘paste’ the text of internet pages in a word processing program,
for example Microsoft Word. Here you first select the text with your mouse and copy
it with the right mouse button. Then you paste the non-formatted text using the option
‘paste special’ (under the menu ‘edit’) into a new document.

16
2.2.3 Field research

What is it and what to collect?

Field research is the technique to collect primary data using interviews, question-
naires, store checks, observations, product testing etc.. This implies that you do the zooming in on your
collection on the spot. Here you are zooming in from the general country and sector specific situation
level to your specific situation.

The role of field research?

There is often a need to validate the findings from desk research and collect additional
information. You could cover some of the missing information, and interviews with
buyers or consumers can be a real eye-opener. You may become aware of hidden
feelings people have towards your company, country or product. Even if statistics
show a growing market, field research can be crucial to take the final decision on
whether or not to go, and if so, how to do it.

Field research often requires a whole process

Field research focuses on consumer or buyers’ motives (e.g. why they would buy your
product instead of your competitors product), which form a basis for your positioning
strategy. So it requires a well thought through and in-depth approach. Therefore, each an in-depth approach
subject (e.g. market trend or price) requires a whole research process. which needs time
So field research is more time consuming than desk research, where you can combine
several subjects during a process.

FIELD RESEARCH

Advantages (if you do it yourself) Disadvantages

- Direct exposure gives a better feel - Usually more expensive than expected
for the market

- Chance to meet potential customers - Takes much time due to a lack of contacts

- You can adjust the list of required - Time consuming to judge the reliability
information during the field research of research specialist - see Chapter 4.2

Doing it in a reliable and professional way?

In doing field research, some different approaches can be identified. Depending on
sample size (i.e. the number of people selected for field research), country, budget,
you could decide to have a research specialist doing it for you. If you want to give
the research results credibility to buyers, you could decide to use a more scientific when credibility to
method. For example by running questionnaires and interviews among a sampled buyers is required
target group of consumers or buyers. For details on how to work with research
specialists - see Chapter 4.

Start field research in your own country

• Companies already exporting to the EU: you could talk with other exporters, talk to other exporters
especially those who export to the markets of interest to you. What do they know
that may be valuable to you? Even if they maybe reluctant - any information could
be of use. However, you need to verify its relevance to your own data later on.

• Exporters of similar products: a talk to other companies exporting products similar

to yours, but who do not directly compete, may be useful. There might be a way to
join forces in research and enter the export market together.

17
Field research at exhibitions
A more down-to-earth approach would be to have inter-
views with key persons such as importers, wholesalers
or retailers during your visits to exhibitions in the EU.
Here you should consider the following five points:

1 Planning of visit
If you are planning a visit to an exhibition, plan it well
in advance and not two weeks beforehand. With too
short notice, it will be difficult to fix appointments.
If the people you want to see have promised to give
you some information, allow them some time to have
it ready.

Try to order a catalogue beforehand and check the site of the exhibition. In this way
you can get familiar with the categories, themes and products exposed and find out
interesting stands and contacts.

In your approach, you could make a following distinction:

• Visiting potential customers ➧ Checking your chances in their market

• Visiting competitors ➧ Checking how they approach their market

(You could pretend to be a ‘buyer’)

2 Making appointments
Try to find out the right contact person and try to make an appointment with him or an appointment to
her beforehand. Briefly explain that you are interested in their company, their products let you in
and culture. Once you in contact, it is a way to enter the stand. Often large stands do
not allow people to enter without having an appointment.
Even if your contact person is away or too busy, you may speak to someone else and
observe their products, promotion etc.

3 The right timing

When visiting people at e.g. an exhibition, choose the right timing. At the beginning the last days are the
of a fair, the atmosphere is usually tense with people not really being in the mood to best
answer questions to someone they do not know well. Try to find a quiet moment or
one of the last days of the fair, when people are more relaxed or bored.

4 The questions
Ask a few simple ‘spontaneous’ questions from the top of your
head, already set in mind. You could prepare a questionnaire
with between 10 - 15 questions for your own reference. Start
the conversation by making a compliment about their product
or stand. Because many people at the stand are sales staff, they
are likely to talk about their product. When they ask who you are,
you briefly introduce yourself and mention that you are trying to
get familiar with their market. Avoid selling your product.

5 The conversation
Once the person carries on talking, try to get control over the
conversation by asking him some simple questions. You do not
need to say that it is an interview. A small ‘conversation’ sounds
less demanding than showing up an endless list of questions.

• Try to get a bit deeper into each subject, rather then jumping
from one question to the another. This usually generates an
ongoing conversation.
18
• Establish his or her position and try to find out what responsibilities he/she has
within the company.

• Keep the most important question for the final part and try to get a contact person
with whom you can get in touch later. If the person has given you good information,
you can offer a small present or gadget from your country in return.

• After visiting each stand, you can use a note pad to write down relevant information
and some details of the company e.g. products, contact person, special things he was
talking about, which could be also private (e.g. he visited your country last year).

Field research by doing store checks

Once you are in an EU country, you also could check some stores. Here you can pick
up price catalogues and see how competitive or similar products to yours are being
displayed. You could also count how much shelf space these products have. Check
which products have the biggest and best (eye-level) space. You also can get an
impression of in-store promotion and their merchandising tools. You even could ask
a few people their opinion e.g. store manager or sales staff.

Field research by marketplace observations

Observation research is a technique that helps to turn the facts you have found so far turning facts into a
into something meaningful. The most realistic and low cost technique is a marketplace sensible asessment
observation. Here you, or a trainee or research specialist, pose as consumers (known
as mystery shoppers), watching and recording the actions of consumers in-store.

In shops, you can get an impression of the staff and e.g. discover that some of them
are not able to give proper explanation about e.g. technical products.

In your hotel, you could look at some local TV stations, where e.g. commercials give
you an overall picture of what is hot, and what is not.

Doing your own field research by using the Internet

You can also carry out your own field research by collecting primary data by the collecting primary
Internet: data by the Internet

• Using electronic questionnaires with existing customers

• By tracking and tracing visitors to your website (if you have one)
• By offering added value functionalities on the website for which visitors have
to register

An example of an added value functionality is offering registered visitors subscription

to e-mail alerts or access to a virtual exhibition, which will update them on new
developments in your range. By requesting registration, you can directly find out who
is interested in your company and product range. Thereby, you create a database with
prospective customers who you can approach directly.

19
2.3 STEP 3 Research planning

Once you have clarified your research problem and decided which research techniques
to use, you will be in the position to set out a plan of action - research planning - to
get the information you need.

Categorizing data by country and subject

Start to categorize all data during collection and separate them by making small piles. piling up categories
Now you can recognise from which countries or subjects you have sufficient data and
what you still need to collect.
When searching on the Internet, print out the useful data you find and mark it by
category e.g. country, product, consumers, trends, trade channel etc... Prints are easier
to read than on a screen and it allows you to highlight important information.

Structuring your research by a Research Action Plan

You could use a Research action plan (see table below) which helps you to do keeping control over
research efficiently and make time commitments. After you collected sufficient countries and subjects
information, you can summarize all relevance on each subject in a brief conclusion.
Once these are filled in, you have a profile of each country with some key facts and
figures. These profiles give you an idea of how easy or difficult it will be to export
to that country, possible next steps or what further research is needed.

A copy of a research plan is handy when searching on the Internet. Undoubtedly

you will come across many subjects categorized in many different ways. The plan
keeps your investigations focused on your key subjects for research.

EXAMPLE RESEARCH ACTION PLAN (for the year 2004)

Country / Subject Sources Do by Done Summary conclusion

GERMANY
• Market Trade Association/Portal 15 Aug 12 Aug Decreasing by 2%
• Restrictions ISO/TARIC 20 Aug 19 Aug Environmental reg.
• Products/trends Trade Magazines 25 Aug 23 Aug More research needed
• Number of customers Statistische Bundesamt, 25 Aug Bayern 400,000
meeting profile “A” Magazines Former East 200,000
• Distribution Euromonitor 1 Sept 30 Aug Importer/Mail order
• Prices Public Ledger/ITC 5 Sept 3 Sept Enduser € 25-35
Falling by 2% in 2004
• Competitors Magazines, 10 Sept 10 Sept 2 large International
Companys’ Website companies
• Other Other sources 15 Sept More research needed

UNITED KINGDOM
• Market Mintel/ONS 16 Aug 13 Aug Growing by 3%
• etc..

FRANCE Trade Association/Portal 18 Aug 15 Aug Growing by 2%

• Market

ITALY Trade Association 19 Aug Wating for information

You could also plan the research techniques e.g. starting by desk (Internet) and field
research in your own country. Next, you could plan visits to desk research sources in
EU countries and prepare field research e.g. at exhibitions. As described in the
previous Chapter 2.2.3, planning and preparation are very important here.
20
2.4 STEP 4 Collecting relevant data

Once you have set up a Research Action Plan , the next step is to collect data from all
available sources in EU countries in the most effective way. Finding the right sources
in more EU countries simultaneously is not an easy job.

The main shortcoming of collecting data on foreign countries is that data for particular
market areas or for specific product groups is not available. These countries simply do
not have governmental agencies that collect this data on a regular basis.

You could start to collect relevant data in your own country. Afterwards you carry on
to ‘easy’ countries, ending up in ‘difficult’ countries with few information sources.

Which information is available and what is easy to find?

Review the information you already have, your internal sources, which may vary your own information
from your own sales and foreign customer records (including prices) to easy to find
external sources. This could be information from a BSO on exporting, general infor-
mation on the EU, annual reports of competitors already exporting to the EU, articles
in your local trade press and the like. You can also check some of the websites, which
you already had in your favourites.

Which countries to start with?

When researching the EU, you have to be aware that you cannot just look into one
country and use much of its information for other EU countries. The EU market is EU countries are not
still complex and fragmented for many products, consisting of many market segments ‘roughly the same’
with different cultures, people, languages, rules and regulations.
Trade statistics are relatively easy to get, but it is mainly the market information
which is difficult to collect.

Trade statistics are usually available for most EU countries and give you a rough
indication on growing EU markets. Although you have to bear in mind that re-exports identify growing mar-
can be high especially in The Netherlands and Belgium. Another point of concern is kets by trade statistics
that in these statistics, products are often subdivided into very broad categories e.g.
according to raw material. In many cases, your specific product is within a larger
product group, which still leaves some questions to be resolved.

Market information is often available for the large EU countries. As countries become
more important as a market, a greater interest in basic data and better collection
methods develop. The United Kingdom, Germany and France have good and up-to UK, France, Germany;
date information sources. Because they often provide their information according to up-to-date information
similar definitions, you can compare them easier.

Start with the countries that have much information in English such as the United
Kingdom, Scandinavian countries and, to some extent, Germany. If your native
language is French or Spanish, southern EU countries would be a good start.

If you are considering entering Austria, information on the German market gives you
a basic idea e.g. about trends or the mood in German speaking countries. Besides,
German trade press often cover the Austrian market as well.

21
2.5 STEP 5 Analysis - from data to information

Sorting and avoid getting lost in an information overload

In the past 20 years, various innovations such as computers,
television, satellites have pushed people from a state of
information scarcity to a state of information surplus in a
very short time. So next to effective collection of data, you
need to effectively manage and use this endless stream of
information.

As already mentioned in Chapter 2.3, you can stay in control

over data by categorizing them as early as possible. An
overview of subjects by country you have already summarised
in your Research Action Plan. It helps you see what you
have done, what is still missing, when to stop searching and
start analysis.

This structured approach prevents you getting lost in an

information overload. If you do not have the time yourself,
someone else could do this for you. The sooner you start
sorting data, the better it will be in the end.

Filtering and matching reliable and useful data

Now you have to quickly read all data, some of which must be translated, and create pick up statistics first
useful information. You need to ‘digest’ the data and convert them into patterns.
During this process, try to get relevant information on each subject, to reconcile
contradictory items, to interpolate missing information, to identify inaccurate data
and deepen the overall picture of your prospective markets.

It is important to start classifying all statistical information. You will find that the
collected statistical data about specific products, markets or market segments will
probably be still insufficient to make decisions. Data and pieces of information on
some countries may be too old, incomplete or some pieces of statistics may leave
you with still many questions, especially when comparing EU countries.

So you may have an information gap and if these gaps are too big, you will have to
do additional (field) research. You then need to consider your critical information
elements, i.e. what do you really need?

The major problems when analysing secondary data, especially from sources on the information gap
Internet, are described below:

Reliability
Data collected from the Internet in particular may not be reliable or trustworthy. So sometimes too
check the writer of the article or report or check the sort of site you got it from (com- optimistic
mercial, personal, academic or governmental). Also, check if the sites give an address
or telephone number of a person or organisation. What was your impression of the
whole site?

In addition, official statistics are sometimes too optimistic, reflecting national pride
rather than reality. On the other hand, companies sometimes understate their sales
statistics in order to match their sales reported to tax authorities.

Completeness
Most statistics available are two years old, which is a reasonable timeframe to know two year old statistics
consumption and trade statistics in each country. You may get more recent data e.g. as a good basis
from Germany or the UK, but two year old statistics is a good basis to know the
trends in different EU countries.
22
Comparability
This problem is caused by a lack of data in some countries. EU countries also use dif- different sources
ferent sources, methodologies and different ways of reporting their statistics. Southern different methodologies
EU countries and smaller EU countries in particular, have their own definitions and
specific categories of product groups or retailers.

Therefore, try to use a single source especially for general data (demographic, socio-
economic trade statistics, retailing). It will be hard to find a low cost single source for
your specific product in e.g. six EU countries.

You may find this in on-line databases or in reports from business information sup-
pliers, but it will be expensive and even then, you cannot be sure of their accuracy.
The best comparable data are provided by Nielsen, Gfk, Taylor-Nelson SOFRES,
IPSOS or NPD. These companies are specialized in tracking and monitoring retail
sales which is analyzed through their EU branches.

Relationships and Consistency

When analysing, you can also try to understand the relationship between variables
e.g. price, income and retail sales. For example, the relationship between high income,
single households and purchase of consumer durables (white goods, digital cameras,
audio equipment). You also could try to find out the reasons for increases or decreases
in e.g. sales or of sudden peaks in imports.

You could check these relationships country by country. Start with Germany which is country by country
one of the most reliable and accurate information sources within the EU.

By making relationships between data, you are also checking their consistency. Try primary and secondary
to find a relationship between your secondary and primary data as well. Once these data
are clear, it will give you an idea of the future development in each country. You could
use this when estimating demand or forecasting sales.

Organising and checking against the research problem

Once the blanks in your Research Action Plan are filled in and you have read through familiar at last!
and analysed information on each country and subject, you probably are now more
familiar with the EU market place - your research problem. Still, it remains to be
seen if you can get all the answers to your specific product. But at least you have an
indication whether you should enter some markets and how to proceed further. Some
missing information can be backed up by field research, which you could combine
with your next business trip to the EU.

In addition, you are now more aware of the complexity and lack of clarity of your
prospective markets e.g. about the large differences between regions in these
countries. So by knowing the reasons, it would be easier for you to define what to
research in a next process.

All information is important for your export marketing strategy and is useful to
have in mind when talking to buyers.

23
2.6 STEP 6 Transform information into intelligence

Explain the cause of issues and predict what will happen when...
Now that all data has been collected and organised into useful information, it has to
be transformed into intelligence. Try to understand and explain the cause of important analysis and expertise
issues. Then you will have to try to predict what will happen, how it will develop, and
how it can be acted upon.

In this transformation process, you use your analyses

and expertise to show how markets operate. Also
clarify the threats and opportunities and the possible
consequences of actions by others (e.g. competitors)
operating in the same market.

This intelligence can be summarized into a brief

report. Preparing a thorough report may take a long
time. When working with a research specialist, you
may expect a clearly understandable written report
with relevant details - being one of their skills.

If you have to communicate the results personally,

you could present them in the form of a presentation,
instead of a written report.

Whatever the form of presentation, research results

must be as short and as clear as possible.
As a rule, by Keeping It Short and Simple (K.I.S.S.)
it remains clear to yourself and this will be surely
appreciated by others.
K.I.S.S.= Keep It
Short and Simple
The result should at least include:

• Brief explanation why the research was done

• The research objectives
• How the research was done (methodology)?
• What are the main findings (consumers, competitor trends, opportunities, threats)
• Conclusions and recommendations
• Appendices (statistics, addresses etc.)

Your report should be easy to understand for all involved and provide an indication of
what actions should follow.

24
PART 3 RESEARCH AT EXPORT MARKETING STAGES
This figure gives an overview on what to research (i.e. research subject) during the
Export Marketing Stages, which for the purpose of this manual are combined into
four major stages. Detailed information on the export stages can be found in CBI’s
‘Export Planner’.

Most research you need to do will be in the stages 1 and 3. In each stage, the role
of research differs, as shown below.

EXPORT STAGE RESEARCH SUBJECT ROLE OF RESEARCH

Chapter
Stage 1
• Export Market Analysis
3.1.1 • Market size (country/culture/economy,
consumer and industrial markets)
3.1.2 • Market requirements (quality
standards, ntb’s etc.)
3.1.3 • Trade Flows
3.1.4 • Market structure (supply chain,
• Direction
price sensitivity etc.) • Narrowing view
3.1.5 • Market growth and trends • Setting priorities
3.1.6 • Market targeting and segmentation
3.1.7 • Competitors
3.1.8 • Consumers / buyers

• Internal Analysis 3.1.9 • Internal Analysis

• SWOT 3.1.9 • SWOT

Stage 2 3.2 • Decision and objectives

• Decision making and
formulating objectives

Stage 3 3.3.1 • Product and positioning

• Market Entry Strategy 3.3.2 • Prices and margins • Forecast
3.3.3 • Place and distribution
• Export Marketing Plan 3.3.4 • Promotion

Stage 4 3.4 • Product (concept testing)

• Evaluation / Feedback • Price (acceptance) • Measurement
• Place (change channel)
• Promotion (awareness)

25
3.1 STAGE 1 Export Market Analysis, Internal Analysis and SWOT

Market research during stage 1

In stage 1, you must investigate most research subjects during your Export Market Stage 1
Analysis. For each subject you need to find as much as secondary and primary data • Export Market Analysis
as you can. When collecting this data, you can follow the steps in the research process
as given in Part 2. You can use a Research Action Plan here to keep control of your
research activities.

➧ Firstly, you start from a broad view by becoming familiar with EU countries, their
market size, requirements, trade flows, market structure, growth and trends in these
markets. All data collected on these subjects already give you a rough picture of
which countries are difficult and which countries are rather easy to enter.

➧ Secondly, you will have to set your priorities and choose target markets in terms of • Internal Analysis
primary, secondary and tertiary markets. In this choice, you can use much of the
data gathered so far, including your chances in these markets. • SWOT

➧ Thirdly, you narrow down your view by segmenting your primary markets and and
focus your research to get more details about your competitors and consumers and Stage 2
buyers there. • Decision making and
formulating objectives
This approach enables you to identify and get more control over your target markets.
Now you should be able to do an Internal Analysis by estimating if your company
could enter these markets.
Stage 3
The results of your Export Market Analysis and Internal Analysis will be the main • Market Entry Strategy
input for a SWOT Analysis.
• Export Marketing Plan
Try to combine subjects
In your desk research, try to combine more subjects in order to save time and costs.
For example, when looking into prices, check them at all levels at once. After you
have collected all price related information, you can separate this by stage and subject. Stage 4
• Evaluation / Feedback
Most information you will use in stage 3: price level discounts etc., but you also can
use this information for stage 1 for relevant price-related information when looking
into the subjects: market structure and competitors.

26
3.1.1 Market size

Country / culture / economy

At first you can search for multi-national surveys, handbooks or articles, all giving
you a quick insight and comparison of all EU countries. Another advantage of these get familiar with
publications is a common approach and harmonised analysis. Afterwards you can the EU countries
search for details in individual country surveys and identify similarities or how
cultures in each country can differ (see example below).

Typical subjects to research and a few sources to find much of this information are:
• COUNTRY / CULTURE / ECONOMY ➧ TYPICAL SUBJECTS AND TOPICS :
■ General data such as: population trends, population by age group and sex,
trends in households, population by region, major cities, marriages, divorces
etc.
■ Economic data such as: GDP, household expenditure (by category), inflation,
production by sector, unemployment rate, retail sales food/non-food (by sector
or by detailed category), growing retail sectors, socio-economic trends etc.
■ Other data relevant for your product such as: technological developments,
health care, housing situation, education, politics, social conditions/region etc.

• COUNTRY / CULTURE / ECONOMY ➧A FEW SOURCES:

There are many sources on the Internet that provide macro-economic country
data. The latest figures can be found at on-line newspapers. For example, the
Financial Times (www.ft.com) has an extensive database with statistics of all
countries in the world. Other databases include:
- www.countryreports.org
- www.eiu.com

You definitely can find most information at the national statistics offices. On some
subjects, these offices make European comparisons, which are useful. The addres-
ses and Internet sites of each office can be found in Appendix 2.

Other country information can be obtained from Eurostat and the Organisation for
Economic Co-operation and Development (OECD):
- www.europa.eu.int/eurostat.html
- www.oecd.org

EXAMPLE CULTURAL DIFFERENCES IN HEALTH AND MEDICINE

An exporter of pharmaceuticals intended to introduce and promote his medicine range in a similar
way in all EU markets. But after he did a market survey, he decided to take a different approach in
each country.
There are deep-rooted differences in how people think about health, disease and medicine. In dif-
ferent countries, different organs are believed to be the cause of illness. Germans are almost obses-
sive about heart and circulation – they are Europe’s largest consumers of heart medicines. Southern
Europeans assign almost mystical qualities to the liver. In the UK, doctors tend to look for external
agents attacking the body and quickly prescribe antibiotics. In central European countries, people
turn first to herbal treatments and hot or cold baths, relying on antibiotics only as remedies of last
resort. So if you say you are tired, the Germans would say it was a cardiac insufficiency, while in
the UK they would consider you depressed.

Next, you will have to assess the markets for your product or service in each country.
Depending on your product, you could focus on consumer markets or on industrial
markets.
27
Consumer markets
Try to collect reliable current and historical data. In CBI market surveys, other market
reports, trade press and trade associations, you can find market values (in € or US$) most you can find by
or volumes for your product or sector. Much of the data you can collect by desk desk research
research using the Internet (see Chapter 2.2.2 for an example).

How to define consumer markets?

To estimate the market size carefully, try to collect as much market data as you can.
You will have to judge the market size using data from various sources collected
according to different definitions, for example:

• RETAIL SALES
Total sales by retail outlets in a country which sell your product. Retail sales
are often measured at current or constant end-user prices. Try to find retail sales
data for your product (or sector) and countries which are rather easy to find.
Even if product categories are often too broad, it still will be a good method to
compare countries. Please note that some sources report retail sales with sales
tax, while other sources don’t.
• TRACKING DATA
Up-to-date retail sales, which is measured for specific product groups or brands
on a quarterly or yearly basis. This data also provides detailed market shares and
their quarterly changes. This information is collected through cash registration
systems (ECR) or scanning systems (EDI). You can buy this data from research
specialists such as Nielsen, Taylor Nelson or NPD. The data is reliable but is
also expensive. You may find some parts of tracking data in trade press articles.
• CONSUMPTION
Consumption or consumer expenditure, which is calculated on the basis of a
large sample survey commissioned by the National Statistics offices (every
4 years) or large research companies. Up-to-date statistics on consumer expendi-
ture is easy to find in the UK, France (at a cost), but difficult in Germany, The
Netherlands, Belgium, Spain, Italy and Scandinavia. Euromonitor gives con-
sumption per capita figures of the EU countries, but you will have to pay for it.
• INDUSTRY SALES
Often trade associations provide trade and sales statistics. These sales statistics
include sales to export markets, which you will have to deduct to know the
domestic sales. Sometimes the prices given at wholesale or factory level.
In addition, you also need to be aware that some trade associations only give
sales figures of their own members, which is less than national sales.

Typical subjects and questions when searching for data on market sizes of consumer
markets and a few sources to find this information are:

• MARKET SIZE ➧ TYPICAL SUBJECTS AND QUESTIONS:

■ What are the market sizes of the most important EU countries?
■ Is it possible to make a good comparison between these markets?
■ What are the largest markets for your product?
■ How have these markets developed over the past three to five years?
■ Has market growth been consistent year to year for these markets?

28
 • MARKET SIZE ➧A FEW SOURCES:
Information on market sizes and segments is included in the downloadable mar-
ket surveys from the CBI website, at portal sites and from sites of trade associati-
ons. Please note that addresses of portals sites and trade associations are included
in CBI’s link plaza on the CBI website.

You can also find market reports on www.usatrade.gov or www.fao.org or buy

reports at www.marketsearch-dir.com, which are not too expensive. Other infor-
mation you can find at ITC (www.intracen.org), with articles for free and most
reports at a charge.

The latest reports on a wide range of products can be found at business information
providers. Reports are expensive, but can also be bought in parts or by chapter:
www.marketresearch.com www.frostandsullivan.com
www.snapdata.com www.euromonitor.com
www.mintel.com www.profound.com
www.tns-sofres.com (tracking data) www.npd.com (tracking data)

Industrial markets
Because the supply lines are short, market research is relatively simple compared to
consumer research. Still, the research process is much the same as described in Part 2.
A starting point in industrial market research is to get familiar with the supply struc-
ture, which has changed for many products in the past decade.
In the past, EU manufacturers took care of the whole production process (from raw changes in the supply
material to finished product). Nowadays they only concentrate on the last stage of the structure
production process and buy assembled or semi-assembled products.

If you are a raw material (or component) supplier, some typical questions are:
• INDUSTRIAL MARKETS ➧ TYPICAL SUBJECTS AND QUESTIONS:
■ What is the supply structure for industrial products?
■ The main concept vendors, supplying semi-finished products to manufacturers?
■ Imports / Exports statistics, average price level, sourcing / destination countries?
■ What is the industrial demand in target countries?
■ What are the smaller and fast-emerging markets with opportunities?

The sources to check are similar to those given above. A few research specialists on
industrial markets are www.packagedfacts.com and www.globind.com.

Calculating market size - when no data is available

When either in consumer or industrial markets, if it is hard to find data on your speci-
fic product or when there is little information available, you can calculate the market
size yourself. You can verify this rough estimate of one country, with information you
already have from another country.

Rough estimates of the market size of a country can be made as follows:

rough estimates-
• Apparent consumption: In order to do this, you need production figures and trade fitting the puzzle
statistics (e.g. from Eurostat - see also Chapter 3.1.3) from the countries. Add to
the production (in volume or value) the imports of your product. Then deduct from
this figure, the exports and the inventory level of your product in that year. The
result will give you the apparent consumption at factory prices.
• Apparent sales: Here you estimate the sales, if you know the number of companies
or retail outlets in a country or region selling your product. By estimating their
average sales per year you may get a picture of what is being sold in that year.
29
3.1.2 Market requirements

Once you have an idea of market size, you have to look into the difficulties of ente-
ring these markets. You may find out that some markets have too strict regulations or
require too much investment on your part. So already at this stage, you can decide not
to export to these countries and stop your research there for the time being.

Nowadays, regulations and market requirements in the field of product quality, safety,
health, environment and social issues are growing throughout all sectors of the econo- meeting regulations
my. Generally, one can say that regulations are legally binding, whereas requirements and requirements
are a reflection of the market forces. Here you need to investigate the EU regulations
and requirements, which can be subdivided as follows:

1 Non-tariff trade barriers (ntb’s) ➧ Quality standards

➧ Environmental, social, health & safety issues
2 Tariffs and quotas
3 Trade regulations

1 Non-tariff trade barriers ➧ Quality standards

Even if buyers are always looking for new lines of merchandise, they tend to stay with
their current suppliers. So, you must prove that your product is absolutely reliable. If
you know which quality standards exist in each market, you can better prepare your-
self when approaching buyers.

Typical questions when searching for information on quality standards and some sour-
ces are given below. Almost all can be collected from the Internet.
• QUALITY STANDARDS ➧ TYPICAL QUESTIONS:
■ Are there any EU quality (management) standards to meet regarding my
product (e.g. ISO 9000:2000)?
■ Are these EU quality standards compulsory?
■ What are the quality standards in each potential market? Are they compulsory?

• QUALITY STANDARDS ➧A FEW SOURCES:

International standards can be found at the ISO (www.iso.ch), the European Com-
mittee for Normalisation (www.cenorm.be), national Standards organisations and
Trade associations. You can find the addresses in the appendices in CBI market
surveys. Trade associations and portals in particular have the latest information on
quality and grading standards and their Internet sites usually have links to National
organisations.

EXAMPLE CULTURAL DIFFERENCES IN HEALTH AND MEDICINE

Standards were often used to limit market access effectively. For example, Germany protected its beer market
from the rest of the EU with a purity law. This law requires beer sold in Germany must be brewed only from
water, hops, malt and yeast. They also insisted to keep their sausages (‘Bratwurst’) pure by limiting the amount
of non-meat additives such as vegetable fat and protein. Also Italy protected its pasta market by requiring that
pasta should be made from durum wheat. In the meantime, all these standards were abolished by the European
Court of Justice and were regarded as trade violations.

In addition, definition problems were constraints in the free circulation of food products in the EU. For exam-
ple, several member states have different definitions of yogurt. The French insist that anything called yogurt
must contain live cultures. So they prohibited the yogurt made in The Netherlands, made without live cultures.

In March 1996, the European Commission decided that only goat’s cheese or ewe’s cheese produced in
Greece could be called feta. This has led to protests from the Danes, who produced feta from cow’s
cheese. Still the Greeks could continue the name feta, with a long history, while the Danes had to look for
another name.
30
1 Non-tariff trade barriers ➧ Environmental, social, health & safety
issues
Other non-tariff trade barriers have become increasingly important. Consumers and
buyers have been more aware of environmental issues. The immediate consequences
for exporters in developing countries are:

• Regulations and requirements that aim to reduce the use of dangerous

substances.
• The amount of packaging waste and to re-use and recycle packaging material.
• More implementation of environmental management and assessment systems.
• An increasing importance of hallmarks (labels) for a variety of products with a
growing awareness among EU consumers.
• Environmentally unfriendly products will be banned from the EU market.
In addition, EU consumers nowadays are also concerned more about their health and
safety. Extensive legislation exists for example in the field of foodstuffs, e.g. pesticide
residues, heavy metal contents, and radiological contamination.

Social issues are also becoming increasingly relevant in the EU. Companies are being
held accountable for their acts.
A growing number of Europeans share the idea that companies have a moral
obligation towards their workers and society as a whole. Although social
accountability does not necessarily incorporate obligatory measures, the
importance of ‘business conscience’ as a selection criterion for consumers is
growing.

It is important to investigate which of these non-tariff trade barriers could be a

constraint for you to enter some countries.
For example, in Germany, France and Scandinavia this concern is quite strong.
On the other hand, if you can find out beforehand how your product can meet these
regulations and requirements, it could be your competitive advantage. A first step is to
collect information on each subject by internet search and finding answers to some of
the questions below:

• ENVIRONMENTAL, SOCIAL, HEALTH & SAFETY ISSUES ➧ TYPICAL QUESTIONS:

■ Are there environmental regulations or requirements on the use of dangerous
substances for my product?
■ What sort of raw material in my product is forbidden in EU countries?
■ What kind of alternative material could I use? Is this worth the investment?
■ Are there environmental regulations or requirements regarding packaging waste?
■ Are there environmental managements systems to meet regarding my product?
■ Are there any labels (e.g. ECO-labels, FSC-label) and where to apply?
■ What special legislation must be complied with regarding health and safety
issues (e.g. CE norms)? In which countries?
■ Are there any requirements on social accountability (e.g. SA 8000)? Countries?

• ENVIRONMENTAL, SOCIAL, HEALTH & SAFETY ISSUES ➧A FEW SOURCES:

Information about environment, social, health and safety issues, is available through
CBI’s Accessguide database. Also check the national trade associations and stan-
dards organisations. A database of the European commission is Euro-lex.
Check the websites:
www.cbi.nl/accessguide www.europa.eu.int/eur-lex
www.ilo.org (labour/health) www.who.org
www.codexalimentarius.net (food) www.ifoam.org (organic food)
www.octrooibureau.nl (patents) www.newapproach.org (product safety)
www.foodnet.fic.ca (foodsafety)
31
 2 Tariffs and quotas
In EU countries, trade information on products is classified under Harmonised
Commodity Description and Coding System (HS) numbers. These codes must be know the HS Code
quo- ted in customs documentation when items are exported and imported. For import of your product
duties, a special version of the HS system is used within the EU, known as TARIC.

When you know the HS code for your product, check whether its import duty is
reduced under the GSP (Generalised System of Preferences) or under the Cotonou
Arrangement for the ACP countries. If so, find out what documents are required (in
most countries: form A, EUR 1).

In the same way, you can check the VAT rates (ranging from 16 to 21% in EU coun-
tries) and possible EU import quotas in your target countries. Most of this information
you also can find out by the Internet.

• TARIFFS AND QUOTAS ➧ TYPICAL QUESTIONS:

■ How much is the import duty and VAT for my product in target countries?
■ Are there import quotas for my product and in which target countries?
■ Are there any international trade agreements which have a positive effect on
import volumes or tariffs?

• TARIFFS AND QUOTAS ➧A FEW SOURCES:

Information about Import duties, VAT rates and possible EU import quotas for
your product can be found in CBI market surveys. More specifically, you can
search on the website of the European Commission. The commission has publis-
hed a database with all import duties (including the preferences) on the Internet.

You can search by product (HS Code) and country of origin on:
www.europa.eu.int/comm/taxation_customs/index_en.htm

On the same site you are able to find the latest VAT rates for each EU country
and news with regards to import quotas. In The Netherlands - see www.douane.nl

3 Trade regulations
Besides tariff preferences, there are other specific arrangements or international
agreements. These could be related to the trade of products (e.g. protocols for sugar,
bananas) or to special bilateral trade agreements between your country and an EU
country. If you are a Mercosur country, you may have several advantages when
entering the Spanish market. Or if you are within Magreb countries (Algeria, Libya,
Mauretania, Morocco and Tunisia), there are trade agreements with the EU, which
includes a tariff reduction for all industrial products between 40 and 80%.

Check if there are there any international trade agreements, which have a positive agreements between
effect on trade restrictions or barriers between your country and your target market. your country and
You could find more information in CBI’s publication ‘Exporting to the European target market?
Union’, which can be obtained from the download plaza at www.cbi.nl or you could
check at www.wto.org

32
3.1.3 Trade flows

A next step in your Export Market Analysis is to get an insight into the trade flows,
which gives you an overview of the trends in global supply of your product (group).
By identifying upcoming EU markets and competitive supplying countries to the EU trade by competitive
(e.g. China), you can further narrow down your prospective EU markets. supplying countries

From CBI market surveys or from Eurostat CD Roms, you can obtain trade statistics
which indicate the imports and exports of your product to and from various countries.
As the collection of information takes a long time, the most recent statistics are usual-
ly two years old. Most trade statistics of EU countries are from Eurostat.
Their figures are based on information from the Customs in all member countries,
who receive this from EU companies. However, it should be noted here that this infor-
mation is given on a voluntarily basis.

In Eurostat statistics, a distinction is made between intra-EU and Extra-EU trade:

• Intra-EU trade: Not all transactions are registered, such as those by smaller com-
panies when transactions are under € 100,000. So, trade within the EU is not fully
represented in this category.
• Extra-EU trade: Most of the trade between the EU and the rest of the world (Extra-
EU) is registered. So this category is better represented in these statistics.

Still, you must treat these statistics with extreme caution and regard them as an just an indication of
indicator of trends in international trade. In addition, the presence of the distribution trends in supply
centres of large suppliers in Belgium and The Netherlands implies that large volumes
of products are re-exported from these countries to other EU markets.

When researching Eurostat statistics, you must know the HS codes of your product or
product group. In these statistics, values are all expressed in € 1,000 and volumes are
stated in tonnes (=1,000 kg). In order to have a better idea, try to compare the trade
for your product over the past three years, to identify fluctuations in supply.

When looking into trade flows, use desk research and Internet research.
• TRADE FLOWS ➧ TYPICAL QUESTIONS:
■ What are the total EU imports in volumes and values (over the past 3 years)?
■ What are the imports by EU target countries (volumes/values over 3 years)?
■ What are the sourcing countries for my product group – especially non-EU?
■ The same questions with regard to exports and destination countries?
■ Did import growth occur in large and small EU countries, even during periods
of economic recession?

• TRADE FLOWS ➧A FEW SOURCES:

Trade statistics for both consumer and industrial products are available from CBI
market surveys. Statistics on specific products can be directly purchased at natio-
nal statistics offices in EU countries at a charge. www.cbi.nl or www.europa.eu.int/

Working with Eurostat CD Rom requires some exercise and time. You need to get
used to make the right combinations of variables, as there are many possibilities.
HS Codes for your product can be found on the CD Rom or at www.usatrade.gov,
where you can also find trade statistics in their reports (consumer + industrial pro-
ducts).

For agricultural products, the FAO statistical database (faostat) provides a very
useful source for trade as well as production statistics. Search filters include, pro-
duct, market, volume and value as well as multiple years selection. The faostat
database is free of charge. http://www.fao.org/waicent/portal/statistics_en.asp
33
3.1.4 Market structure

Now that you have an idea about the market sizes, market regulations, requirements,
and trade flows, you can focus on those EU markets which are easy for you to enter
and offer the best prospects for your product.

The next step is to find out how these prospective markets are structured. Once you
have a picture of the supply chain, the number of operators and the price sensitivity, find out who supplies
you get an impression of what your chances in each market are. to whom

The supply chain

A simple chain involves manufacturers, importers, wholesalers, retailers and con-
sumers. In this chain, those who are involved in each stage basically sell down the
chain until the final product reaches the consumers. However, in reality it often
appears that everybody is selling to everybody else. There are also differences in the
sort of product (e.g. parts, semi-finished or finished) and the level of service given at
each stage. Try to find out by desk research and field research (e.g. conversation with
buyers) the most important supply routes.

Price sensitivity and price differences

When researching the supply chain, check the prices, typical mark-ups and the
discount structures at each stage in this chain. If you look into more EU countries Euro prices are now
you can compare the prices (in Euro!) at each stage between the countries. You will easier to compare
find that despite a common currency there are still many price differences. Also,
check your competitors’ prices and find out if a low price level in these countries is
crucial for success.

An insight into the market structure shows you who sells to which target groups, what will be your
who your main competitors are and where your position in this supply chain will be position in the supply
in your prospective markets. Try to find answers to these questions and some of the chain?
questions below:

• MARKET STRUCTURE ➧ TYPICAL QUESTIONS:

■What is the typical market structure for my product or sector in each country?
■ What are the supply lines – are importers/wholesalers controlling the market?
■ How many operators are there in the chain?
■ Is it common to do business directly with the industry? Are they export
oriented?
■ Who are the main players in these markets? What are their prices?
■ What are the prices and margins at each distribution level? Discount structures?
■ How sensitive are these prices and are they similar or different in each country?

• MARKET STRUCTURE ➧A FEW SOURCES:

Information on supply chains is included in the CBI market surveys, at portal sites
and from sites of trade associations or in articles in local trade magazines.

You can also find some information in market reports on www.usatrade.gov or

www.marketsearch-dir.com, www.intracen.org or at business information providers
(see sources under Market size at Chapter 3.1.1 and for portals - see Appendix 1).

Information about prices is often difficult to get through the Internet, apart from
prices for commodities and fresh fruits and vegetables. Try to get information
from buyers or other people with some knowledge of the market structure. You
could check retail prices through websites of competitors, retailers or of mailorder
companies. Other sources - see Chapter 3.3.2.
34
3.1.5 Market growth and trends

Now you try to assess your chances in your prospective EU markets by researching
their developments. So you need to find out which markets are growing and why.

Which markets are growing?

Start with all general information you already have of each country, which may
include some market forecasts. You can simply verify these by general trends e.g.
ageing population, economic recession etc.

Emerging versus saturated markets

If an emerging market for your product, e.g.
Denmarkis just beginning to open up, there may
be fewer competitors than in a ‘saturated’ big
market e.g. Germany, where many exporters
make their start.

So, if the Danish economy stills grows, while

Germany is in recession, the opportunities for
your product in Denmark are much higher.

Besides, once you have made a successful start

in Denmark, it will be easy to enter other
Scandinavian markets. This may be much
more profitable in the long run, than the
German market. Even if Germany is big, it
will take you a lot of time to search for niches
in a fragmented market.
In addition, you need to deal with buyers who
are looking for the best quality at rock-bottom
prices.

These new Scandinavian markets could qualify as emerging markets, given the lower also look at smaller
starting point. emerging markets

Market trends - the reasons behind market growth

After you have found out how much the market is growing, you will need to know the
reason behind this growth, and asses if this growth will continue. Try to find out if
there are relations between facts you have found, for example:

• Less farmers in the EU - Intensive use of advanced agricultural and

• Economic recession
• Specific news or events
horticultural machinery by large farms
requiring more spare parts.
- Falling housing markets, less demand for
household and furnishing goods. Or, a rising
demand for second hand goods, increased
sales by discounters etc.
- Foot and mouth disease, BSE, industriali-
sation in agriculture leading to more demand
for organic food.

Other reasons can be found in market trends related to changing consumer behaviour,
technological developments, changing safety regulations etc..

35
You need to collect most data by desk research.
Check the Internet sites of local trade and consumer
magazines. Here you will often come across the
latest trends in the international or local market.

If you are an exporter of e.g. clothing, textile,

cosmetics, jewellery, furniture, interior decorative
articles, gifts or gardening articles, it is crucial to
be familiar with the future trends in fashion.
In order to get a better picture of these trends,
you need to collect primary data by field research.
For example, this could be at exhibitions or by
store checks or, if possible, through conversations
with key individuals in your sector.

You could also recognize market trends by monitoring the main players, who usually check the latest trends
are the trendsetters. in magazines

• MARKET GROWTH ➧ TYPICAL SUBJECTS AND QUESTIONS:

■ What is the expected market growth of the most important EU countries?
■ At what stages are these markets – new, growing, established, declining?
■ What external factors have a major influence on their market development e.g.
political activity, economic trends, social issues, consumer confidence, eating
habits, trends in fashion, technological development?
■ How are these factors affecting the market – growth rates, trends, structure,
stability, customer preferences, profitability, level of customer service etc.?
■ What are the smaller emerging markets for my product?
■ How did these markets develop over the past three to five years?

• MARKET TRENDS ➧ TYPICAL SUBJECTS AND QUESTIONS:

■ What are the major trends in product development in EU countries in terms of
characteristics, dimensions, colours and materials?
■ What are typical consumer trends in these countries?
■ What are the main trends in fashion and do they change quickly?

• GROWTH AND TRENDS ➧A FEW SOURCES:

You can find information about market trends in CBI market surveys, in articles
in trade magazines or on sector based portals (Appendix 1). You may also find
information in part of reports from on-line business information providers (see
Chapter 3.1.1).

General information on all markets can be found in on-line newspapers e.g.

www.ft.com as well as in some consumer magazines related to your product.

If trends in fashion are important in your business, you can find trend forecasts in
trade and consumer magazines. Each year CBI provides two fashion forecasts
which can be downloaded from the download plaza at www.cbi.nl.

36
3.1.6 Market targeting and segmentation

Set your priorities on a few target markets

Now you may decide to concentrate on a few growing markets, especially if start with a few markets
your company is new to exporting. You can divide these prospective markets into: when new to exporting

• Primary markets, where you can expect a relatively fast payback against your
investment at a relatively low risk. These markets are also referred to as pilot or
target markets.

• Secondary markets expose your company to a greater risk. But if you have enough
resources and approach them, they are still capable of generating profit.
You could target these markets after you have gained more experience in the EU.

• Tertiary markets may be interesting to approach actively in the future. But for the
time being, an indirect approach is preferable e.g. producing for local manufacturers.

• MARKET TARGETING AND SEGMENTATION ➧ TYPICAL QUESTIONS:

■ Now that I know the market size, growth and trends, what are the best markets
for my product in terms of opportunities and niches?
■ Is there a special interest in e.g. product made with material from your country?
■ Can I approach some markets simultaneously e.g. Belgium or Denmark?
■ How can I segment my primary markets further e.g. by region, by consumer
group, by product etc.? Can I quantify these segments?

• MARKET TARGETING AND SEGMENTATION ➧A FEW SOURCES:

Information about market segments can be found in CBI market surveys, in
articles in trade magazines or at national statistics offices and local Chambers
of Commerce.

See also sources under Market size at Chapter 3.1.1.

Segmentation in consumer markets

Once you have decided on your primary markets, the next step is to get control over opportunities may be
these markets. You will have to narrow your search (desk research and Internet in different areas
research) by focussing in on segments within these markets. For example, you
could start by collecting information on particular regions.
NORTH
Most EU countries can be divided into the so-called NORTH WEST
4,6 million
4,2 million
Nielsen areas, which are quite common in business. Bilbao
NORTH EAST
4,4 million
For example, Spain is divided into 7 areas (see map).
Zaragoza
Try to find as much as you can on local population,
BARCELONA
major cities, households, consumer groups (by age, metropolitan
3,9 million
sex, life stage), economics (e.g. unemployment rate, CENTRE MADRID metropolitan
5,0 million
consumer expenditure level), local characteristics, 3,8 million

hospitability to foreign suppliers etc.

Balearic Islands
Valencia
Most exporters start business in the Barcelona and
EAST
Madrid metropolitan areas. Through research, you 5,6 million
could discover that the North (Bilbao) or the East
(Valencia) could be much more promising to start. Sevilla Málaga
In addition, you may have fewer competitors in
these regions. SOUTH
8,0 million
37
Other segmentation variables
In addition to regions, you can segment consumers in your primary markets by many which segmentation
other variables, e.g. by age, income level, life stage to more complex variables, e.g. variable is relevant?
lifestyle. Once you know which variable is most relevant to your product you can col-
lect information from e.g. national statistic offices and magazines. Try to identify and
quantify relevant consumer segments or market niches. For example:

• The Immigrant population - by nationality, age, sex, generation -1st or 2nd.

• Special habits - eating, cooking, dressing, shopping, exercising etc.
• Affinity with products from developing countries - people who visited your country,
symphasize with your continent etc.

Segmentation in industrial markets

Industrial markets have fewer and larger buyers who expect a personal approach and
a customized product offer. Products are changed from time to time and once the
relationship is there, it is important to keep in close contact.

The most important segmentation variable when researching industrial markets is to which end user
recognise the end user industries or organisations for your product or service. industries?
For example, vegetable oil is a natural ingredient, which can be supplied to the food
processing industry, to the cosmetic industry or to the pharmaceutical industry.

Once these end users are identified, you will have to classify the people in the orga-
nisation who take the buying decisions. Here, a buying centre consists of all people
of the organisation who play a role in purchase decisions, such as:

• Initiators users or others in the company who request something to be purchased.

• Influencers e.g. technical staff who define specifications and also judge offerings.
• Deciders and approvers who both decide on the new purchase.
• Buyers who select the suppliers, formulate the requirements and conduct the
negotiations.

38
3.1.7 Competitors

From the information on trade flows (see - Chapter 3.1.3) and on the main players
(see Chapter 3.1.4) you already have an idea who the main competitors are and where
they are from.

You now need to take a closer look at these competitors, especially in your primary spying on your
markets. You can collect this data by desk research and Internet research. Trade competitors
magazines frequently publish market analyses with estimates of
market shares by main players, their history, their target groups,
positioning and reasons behind their success or failure.

You can find other information at exhibitions, by carrying out

store checks, on competitors websites, in annual reports,
brochures with their product ranges, via themes/concepts in
promotional material (e.g. advertisements, in-store promotion)
or by simply buying some of their products.

If you already have a contact in your primary market, you can

ask him/her to buy some samples and comment on e.g. their
quality or price level.

You could ask as a ‘customer’ for a list of dealers for your com-
petitors in your primary markets. This gives you an indication
of how they are organised in these markets.

You can also find information on your competitors by field research e.g. at exhibitions
or by conversations with experts in your sector or by a contact in the primary market.
• COMPETITORS ➧ TYPICAL QUESTIONS:
■ Who are the materials suppliers and manufacturers in my primary markets?
■ Is there much competition in these markets?
■ What sort of competitive products are on offer? How much do they sell/year?
■ What are the prices and where are they sold (e.g. small shops, chain stores)?
■ What product concepts do they use and how are they promoted?
■ What are the market shares of the key players and of my direct competitors?
■ How are they organised and do they have nationwide distribution?
■ What are the strengths and weaknesses of my main competitors?
■ How many competitors are there from my own country?

• COMPETITORS ➧A FEW SOURCES:

Information about market players, importers, wholesalers, retailers, manufacturers much can be found
and competitors is available in CBI market surveys (from CBI at www.cbi.nl). out at exhibitions
You may also find information through trade fair catalogues (often available on-
line at the website of the trade fair organizer), or in parts of reports from on-line
business information providers.

There are also generic business directories. The most important generic on-line
directories are Europages and Kompass. The business directories offer multiple
search filters, like product group, market, company type, company size etc. Use of
the business directories is free of charge. In addition to some market reports, Dunn&
Bradstreet provides financial information on any (registered) company in the EU.
www.europages.com www.kompass.com www.dnb.com

Information on players and business directories (or platforms) can be found on

sector based portals - see Appendix 1.
39
3.1.8 Consumers / buyers

Quantitative research
Once you have chosen your target markets, you will have to find out more details on quantifying your
consumer groups and buyers. In consumer markets, quantitative research leads you to target group
a general profile of a chosen consumer target group. Here you try to quantify as much
as possible. For example, if you are exporting chocolate and want to start in the UK,
you may find out the following interesting target group:
Heavy users of chocolate bars, who are female, live in Northern England, are aged
between 17 and 22 years and have an average annual income of £18,000 and 25,000.
The more figures you can obtain about your consumer target group, the more you will
be able to estimate the size of your potential market.

• CONSUMERS / BUYERS PROFILE ➧ TYPICAL QUESTIONS:

■ Who are the consumers / buyers who are interested in my product?
■ How can you define and describe them?
■ Where are they? How can they be located?
■ How often are they likely to buy? Where do they usually buy?
■ In case of consumers: Who are the opinion leaders (pop artists, football
players etc.)?
■ Why do / will they buy (e.g. convenience, quality, price, fashion etc.)?
■ What do buyers think of their existing products/services?
■ What would encourage them to switch?

• CONSUMERS / BUYERS PROFILE ➧A FEW SOURCES:

Desk research
Information about consumers and buyers can be found in CBI market surveys,
trade magazines, national statistic offices, trade association reports or on portals.
In order to get a better feel for consumer markets, you could have a look at con-
sumer magazines, popular TV programmes or Internet sites visited by your target
group. Information about buyers can be found in trade magazines and on websites
of their company. You may also find information on target groups in parts of
reports from on-line business information providers (see Chapter 3.1.1).

Field research
During visits to exhibitions, you could ask buyers or talk with editors of maga-
zines. Other low cost methods to gain an impression are:
- In store observations (how consumers go around - how they look etc.).
- Asking the opinions of some people you know in your target market.
- Internet research by yourself (e.g. using Questionnaire).

Qualitative research
In qualitative research, you try to understand more deeply
your consumer target group by investigating their buying
habits, intentions and attitudes. You can measure your
product in relation to your competitors’ products.

You will need to find this out by field research and hire
research specialists in your target countries. They have
different techniques e.g. questionnaires-interviews-group
discussions-counting-image tests etc. They can be carried
out on an incidental (ad-hoc) or on a continuous
(omnibus) basis.

40
3.1.9 Internal Analysis and SWOT

After your Export Market Analysis, you must assess whether your company is able to
enter your chosen markets i.e. by doing an Internal Analysis. Then, a SWOT analysis
can help you to decide whether or not to start exporting to the target markets.

Internal Analysis
Especially if your company is new to exporting, you should do a company audit and
establish whether you can use your resources without jeopardizing your domestic
sales efforts. Elements to be assessed include: product standards, production capacity,
flexibility, logistics, sales force, financial strengths, capabilities etc.

You have to ask yourself for example, if you can meet the extra production capacity
needed to supply export markets? Can you finance the investment required for
product adaptation and machinery? Are you able to deliver in time? etc...

SWOT Analysis
Now that you know the size of your markets, their requirements, structure, develop-
ment, segments, niches and your main competitors, you can combine all this with
your own capabilities by making a SWOT analysis.

Here you should take two points of view:

• Opportunities and threats in the marketplace

From your Export Market Analysis you have an idea which EU countries to
approach. It is now the time to start analysing all the collected data you have.
So far, you may have used a Research Action Plan (example see Chapter 2.3)
in which you summarized the findings on each subject and country. Some of
these summary conclusions should provide you with enough insight into the
opportunities and threats in these markets.

• Your own strengths and weaknesses

The internal analysis you have done, should provide you with insight into your
own strengths and weaknesses.

Try to optimise your strengths and see how you could overcome weaknesses in the
future and how to deal with threats in the market place.

The outcome of your SWOT analysis, the possibility of overcoming your weaknesses
and the degree of risk when entering these markets, are important in your decision
- whether or not to start exporting to your targeted markets.

41
3.2 STAGE 2 Decision making and formulating objectives

From your SWOT Analysis, you should have enough confidence to decide which Stage 1
markets to enter in the coming years. The result of this analysis should tell you if • Export Market Analysis
you are able to export, especially when there are more market opportunities (than
threats) and if your company is strong enough to start this venture.

Once you have made a positive decision, you are ready to formulate your objectives.

Analysis of all collected information enables you to narrow down your view and
decide which markets to approach and when to do this. In these decisions, you have
to include an element of control over your own efforts in the next few years. This
implies that you have to set marketing targets, sales targets, distribution targets,
awareness targets etc. for each target market. These together form your export • Internal Analysis
objectives.
• SWOT

Stage 2
• Decision making and
formulating objectives

Stage 3
• Market Entry Strategy

• Export Marketing Plan

Stage 4
• Evaluation / Feedback

42
3.3 STAGE 3 Market Entry Strategy and Export Marketing Plan

Market Entry Strategy - MES Stage 1

After your objectives are clarified, you have to choose the best strategy to achieve • Export Market Analysis
them. There are several Market Entry Strategies in which you can deal with different
levels of strategic involvement in different countries. For example, as a new exporter,
you could start exporting your product direct to a primary market e.g. Spain by using
an importer. At the same time, you can try to get a foothold in other EU countries.

Here you could choose for an entry strategy, i.e. producing as a contract manufacturer
for French and Italian suppliers. This will give you an entry into these secondary mar-
kets at a minimal risk and investment. Once you are successful in the Spanish market,
you can change your entry strategy by exporting to France and Italy.
• Internal Analysis
Some possibilities to enter EU markets are:
• SWOT

PRODUCING WITH INVESTMENT MINIMAL INVESTMENT

Stage 2
Licensing Assembly • Decision making and
Franchising Joint Ventures formulating objectives
Contract manufacture Acquisition
Strategic alliance Strategic alliance

Stage 3
EXPORTING DIRECT CHANNELS INDIRECT CHANNELS • Market Entry Strategy

• Export Marketing Plan

Agents via Domestic organizations
Importers Trading houses
Retailers Export house
Contractors Strategic alliance Stage 4
E-commerce • Evaluation / Feedback

Export Marketing Plan - EMP

Once you have your Market Entry Strategy clarified, the next step in the Export
Process is to put this strategy into practice. Here you need to draw up an Export
Marketing Plan in which you have to decide on your marketing tools (see also
overview at the beginning of this Chapter).

During stage 3 when deciding your MES and preparing an EMP, you will have to
do research on marketing tools (product, price, place, promotion).
By being well informed, you will be more confident in managing these tools in
order to achieve your objectives and in measuring their effectiveness (Chapter 3.4).

43
3.3.1 Product and positioning

You have already found out in Chapter 3.1.2 how to comply with quality standards your product standing
and non-tariff trade barriers in your target markets. You also know the market de- out from competitors
velopments, niches, consumers and competitors. The next step is to find the right
positioning to achieve a good product-market match.
So you need to find out whether your product needs much adaptation
in terms of design, size, packaging, related accessories etc.

Positioning refers to how you want consumers (or buyers/customers) to

think of your product in relation to those of competitors. A good positioning
strategy for exporters from developing countries is ‘the country of origin’
effect (e.g. special skills, special material, ethnic design etc.).

Try to find out where most of your competitive products are made e.g. in
China and other Asian countries. Based on the results you can distinguish
your product from the mass produced articles by adding something special
or an USP (Unique Selling Proposition).
It remains important to match this speciality with your target group. An
interview, discussion, or co-operation with a designer in your primary
market would be useful to give the product a ‘local touch’.

You can gather information mainly by desk research and some field
research. Try to find answers to some of the following questions:

• PRODUCT ➧ TYPICAL QUESTIONS:

■ What are the main applications for my product in each target market?
■ Can my product fit in a certain lifestyle? Differences by market?
■ In which life stage is my product in my target markets in terms of:
introduction-growth-maturity-saturation-decline?
■ What is required to adapt my product in these markets?
■ How can we make a difference vis-à-vis the competition?
■ Do I need to work with local designers in these countries?
■ How to make my product concept and line (which products and accessories)?
■ What should be the design, shape, size, colour and package?
■ How brand sensitive is the market?
■ How can I register my product to protect its patent, design or trademark?
■ Do I need an export licence for my product and for which countries?

• PRODUCT ➧A FEW SOURCES:

Information about your product can be found in CBI market surveys (‘segmenta-
tion’) and CBI’s ‘Export Planner’ - giving details on what to consider when deci-
ding onyour product strategy. You may also find information in parts of reports
from on-line business information providers (see Chapter 3.1.1), competitors’
sites, trade and consumer magazines, fashion forecasts, trade associations or on
sector based portals (Appendix 1).

You could buy some competitive products or observe at exhibitions how they are
presented. During visits, you could ask buyers or talk with editors of trade maga-
zines. Other field techniques are: In store observations or asking opinions of people
you know in your target market.

You will have to find out detailed information (e.g. consumer opinions, attitudes
and perceptions) together with research specialists. You can contact the Export
Licensing Unit in your country or the Customs in the target market to find out if
you need a licence and how to apply for it.
44
3.3.2 Prices and margins

Setting a good price in your primary markets is

a key element in your Marketing Entry Strategy.
Price is the first point of comparison. Consumers
and buyers always evaluate your product against
the competition.

In your Export Market Analysis you already

have an idea about the prices at each level in the
supply chain (see Chapter 3.1.4) and competitors’
prices (Chapter 3.1.7). Instead of only working
out your cost and adding some mark-up ratios,
you now need to check the prices more in detail.

You could start from a broad view e.g. monitoring the price developments on the
world market. Afterwards you narrow down to your target market by finding out what
consumers are prepared to pay for your product.

You can gather as much as you can by desk research using the Internet. However, you
have to collect most information by field research e.g. conversations with buyers and
store checks. When researching price, try to answer the following questions:

• PRICES ➧ TYPICAL QUESTIONS:

■ What are the price developments on the world market regarding my product? can you meet price
■ How price sensitive are consumers / buyers in my target markets? levels in your
■ How much of each type of my product is being sold? At what retail prices? markets?
■ Can I meet this retail price level?
■ How strict are the discount structures and trade margins in each market?
■ What price will buyers be willing to pay?
■ What is the most ‘reasonable’ or ‘tactical’ buyers’ price level according to
some of your local contacts in the field?
■ Are there regional retail price differences per country? Why?
■ When are the seasonal sell-out periods? What are the usual consumer discounts?

• PRICES ➧A FEW SOURCES:

Check retail prices through retailers’ websites, or visit shops when you are in an
EU country. Pick up a catalogue in these shops. You, or someone else in your
primary market, could do a store check. Research different types of stores (dis-
count-chain-specialist) and do it in different regions (cities-towns-villages).

Try to get some detailed information on margins from buyers or other people with
some knowledge of the market structure.

Some interesting sources for information on world market prices are:

www.public-ledger.com (commodities) - Check the site for the subscription fee.

www.todaymarket.com - The today market website offers a free trial for 7 days -
Subscription fee is US$ 25 per month.
www.intracen.org - ITC Market News Service - Subscription fee US$ 200 per year.

www.fintrac.com/gain/prices - Website of the Global agribusiness information

network, that provides information about wholesale prices of fruits, vegetables,
herbs and flowers. It is free of charge and on various markets in USA, Latin
America, Europe and Japan. Depending on the market, the information can be
between 1 and 7 days old.
45
3.3.3 Place and distribution

From your Export Market Analyses you are now familiar with the structure of the
supply chain, the number of operators and competitors in your target markets.
After you have decided your Market Entry Strategy, you have to select a distribution
channel (see MES - Chapter 3.3).

Once you have made a selection, it is important to note

that, by selecting one channel, other distribution channels
are often automatically excluded from your market.
So try to get as much information beforehand so that you
can select the right trade partner at the first attempt.
You are expected to build up a serious relationship with
him. Even if you are still unsure about his capabilities,
you cannot simultaneously start a business relationship
with his competitor while still dealing with him.

As you are already familiar with the supply chain, it is

now time to gather the details. Further information on
choosing a partner can be found in CBI’s ‘Export Planner’.
You can find out most information on distribution channels
by desk research using the Internet. When comparing retail structures in more than find out details before
one country, be aware of the use of different categories of retailers in each country. contacting buyers

• DISTRIBUTION CHANNELS ➧ TYPICAL QUESTIONS:

■ Details on the supply chain – manufacturers; importers; agents; wholesalers;
retailers; contractors; end-users?
■ What are the latest trends in distribution? Can this influence my business?
■ Who in this chain would be the best trade partners in my primary markets?
■ What are their advantages/disadvantages? How can I get in touch with them?
■ Do these partners serve retail outlets frequently visited by my target group?
■ What are suitable in-store themes in which my product concept will fit?
■ What level of after sales or customer service is required in these markets?

• BUYERS / CUSTOMERS ➧ TYPICAL QUESTIONS:

■ What do buyers think of their existing suppliers and products/services?
■ What would encourage them to switch to your product?
■ What are the listing fees of retailers e.g. supermarkets – for which period?
■ What is the buying policy of large retailers? Branches in other target markets?
■ Can they provide me tracking data? What system do they use?

• DISTRIBUTION CHANNELS /BUYERS ➧A FEW SOURCES:

Information can be obtained from the CBI market surveys and Export Planner
(check the link plaza at www.cbi.nl), trade associations and Chambers of Commer-
ce. Also, check local newspapers and trade magazines which regularly interview
store managers and other key persons in the supply chain.

During visits, you could do some in store observations, get an idea of in-store the-
mes and ask opinions of store managers. It is useful to know beforehand if your
product fits into the store concept when approaching buyers. When you are not
able to do it yourself, ask local people to check some stores.

You could find buyers through exhibition catalogues, trade portals and at sites of
business platforms (by sector - by country/region).
Through your shipping agent and potential trade partner you can find out how
much you must invest in logistics, stock keeping and transportation costs.
46
3.3.4 Promotion

The role of promotion is to effectively communicate the necessary information to

your target market so that people are encouraged to make a purchase decision in your
favour. So it means here all types of informative communication with buyers (or cus-
tomers) and end-users (consumers) within your target group - including ad-vertising,
sales promotion, exhibitions, telesales, personal selling, free publicity, sponsorship etc.
More detailed information can be found in CBI’s Manual ‘Your Image Builder’.

What competitors do
When collecting data, you could start with your
competitor’s promotion. Much can be gathered
by desk research using the Internet. Also try to
find some advertisements, free publicity by your
competitors in magazines.

Other information can be found at competitors’

websites, in annual reports, in brochures with
their product ranges.

At exhibitions and during store checks, you can

get an idea of their themes/concepts in their
promotion to their customers and to end-users.

What form your promotion should take

Here you have to find out what form of promotion you or your distributor could do get an idea of in store
which will give you the highest return on your investment in the end. promotion tools
Try to find answers to some of the following questions:

• PROMOTION ➧ TYPICAL QUESTIONS:

■ What are the trends in promotion in my target markets (tools and approach)?
■ What are the best trade fairs to visit and to participate in?
■ What are relevant trade magazines for advertisements or free publicity?
■ What are the best seasons for promotion in my target markets?
■ How can I reach my target group?
■ Would Direct marketing be a feasible option to reach them?
■ Can I measure the effectiveness of my promotional efforts? How?
■ How can my USP best be communicated to my target group?
■ How important are price promotions? Differences country and channels?
■ Are there many cultural differences in approaching in my target markets?
■ How much do these promotional tools cost? In store promotion? Sampling?

• PROMOTION ➧A FEW SOURCES:

Information about promotion can be found in CBI market surveys and in the
manual ‘Your Image Builder’ which can be downloaded from www.cbi.nl . You can
also get an impression from trade magazines or via sector based portals (Appendix 1).

Also check information in parts of reports from on-line business information pro-
viders (see Chapter 3.1.1). By field research you can get a feel for in store promo-
tion including competitors’ promotion.

Information about trade fairs, worldwide, can be obtained free of charge from the
following trade fair databases:
www.tsnn.com
www.exhibitions-world.com
47
3.4 STAGE 4 Evaluation and Feedback

After you have implemented your Export Marketing Plan, you will have to evaluate Stage 1
your target markets and judge how effective the marketing tools were. Maybe the • Export Market Analysis
market conditions changed or new opportunities emerged. This implies new research
into your target or into new markets.

After a period of one year you should evaluate whether you have taken the right deci-
sions with regards to your marketing tools. You should measure their effectiveness
direct from your own sales reports or check the questions below with your importer or
other contacts in your target markets.

1 Product (concept testing)

• Internal Analysis
• PRODUCT ➧ TYPICAL QUESTIONS:
■ How much of each type of product is being sold (volume and value)? • SWOT
■ Did my product concept appeal to my target group?
■ Does my product or packaging need to be modified? In which markets?
■ How can I improve the quality of my product? Stage 2
■ Which products or accessories can I add next year? • Decision making and
formulating objectives

2 Prices (acceptance, consistency)

• PRICES ➧ TYPICAL QUESTIONS: Stage 3
• Market Entry Strategy
■ Was my price level too high/low in primary markets?
■ Are the price levels still controllable in each of my markets? • Export Marketing Plan
■ Did end-user prices remain consistent throughout these markets?
■ Have competitor’s prices changed? Why?
■ How effective was my price reduction in e.g. April- June (volume and value)?
Stage 4
• Evaluation / Feedback

3 Place (change channel in country/region?)

• PLACE ➧ TYPICAL QUESTIONS:
■ Evaluation of distribution channel in primary markets.
■ Through which channels did my product sell best (e.g. specialist -mail order)?
■ What are the prospects of this channel for future sales/orders?
■ Which new countries to approach?

4 Promotion (awareness, cultural differences)

• PROMOTION ➧ TYPICAL QUESTIONS:
■ How effective were my promotional efforts?
■ Did my target group become more aware of my product and in what sense?
■ Were there any misunderstandings with regards to message or language?

48
PART 4 ORGANISING MARKET RESEARCH
In part 2, the six-step research process was explained, with the major techniques in
how to collect your information, whereas part 3 showed what you need to research
during the Export Marketing Stages.

Part 4 focuses on the practical side of your research in terms of preparation, budget,
involvement of other people and organisation of your collected data.

4.1 Research preparation and budget

When to start?
When starting up a research process, you will need to estimate a reasonable deadline
for the collection of data and when you want to have all information analysed. categorize at each step
You could set dates for an Export Market Analysis country by country using the and stay focused on
Research Action Plan (see example in Chapter 2.3), categorizing the countries and your target
research subjects.

You should start the collection of information at least one month

before analysis. Asking for information (e.g. by e-mail, fax)
from trade associations or trade press may easily take a couple
of weeks before youreceive it, even when reminding people a
few times.

How much time do you need?

An average research process easily takes up 2-3 months, especial-
ly when you research several EU countries from overseas.

Information on southern EU countries is not easy to get from the

Internet. This implies that you sometimes have to wait a long
time before people send you the information.

In addition, you undoubtedly need to translate some parts of the

information and read through all collected data.

Still there is no standard indication of time and the length of a

process depends on the complexity of your research problem.

Market research never stops

Once you have started to do market research you will have to
do it continuously. With ongoing monitoring, you can stay in
control of developments in your target markets and anticipate your opportunities. monitoring markets
In addition, you will definitely be taken more seriously by your trade partners and and opportunities
other contacts in your markets.

How much budget to reserve?

Any form of structured research implies that you have to reserve a budget as accu-
rately as possible. If you know well beforehand the available budget, it will avoid
problems e.g. with research specialists or business information providers.

If there is only a small budget available, this will give you at least an indication of
what is possible and what restrictions you must keep in mind. For example, if you
can afford to hire a research specialist.

Sometimes there may be no budget at all. In this case, the time you need to spend
will have to be allocated with the permission of others.

49
General information on EU countries and much information
on the Internet is free of charge. However, you should not
forget the telephone costs. When searching on the Internet,
you will find out that the more specific information you
want,the more expensive it will be. Most business informa-
tion providers want you to pay in advance by a valid
credit card.

CBI is an exception. They make market reports and articles

available to exporters and BSOs in developing countries at
no charge.

Nevertheless, even if new Internet technology makes access

to information much easier, you still need to make a commit-
ment in terms of budget. However, the money will generally
be well spent, since you will be guarded from making expen-
sive mistakes later on in the export process. Being well infor-
med means being well prepared, which will enhance your
chances in the market.

you need to make

commitments

50
4.2 Involving other people in research

What can you collect by yourself?

Most of the desk research using the Internet can be done by yourself or within your by yourself, trainees
company. You could also have the data collected by trainees or students under your or students
supervision. It is important though, that he or she can work orderly, is persistent, can
deal with lots of information (sorting, categorizing) and can judge when to stop sear-
ching. It would be ideal to have someone who knows some foreign languages.

Desk research can be also outsourced to specialised

researchers or consultants, who can do customised
research for you, but you will have to pay for it.

The advantage of doing the research yourself, or under

your supervision, is that you have the full market
understanding and you know better than other people
what you need .

On the other hand, it will cost you much time in the

beginning to find the right sources. You may also find
it hard to judge their reliability, especially some of the
sources on the Internet.

As for field research, you should visit the international market and get a personal
understanding of customer needs. Visiting an exhibition provides a good opportunity.
Try to do some research at the show itself and in the city where it is held. Although
using a local researcher may seem more expensive, do not underestimate the costs
of doing it yourself. Besides the time and money spent on the trip, you need time for
preparation. You will need to find organisations and make appointments. An option
could be to hire a consultant in the target market, who prepares an itinerary for you
and who joins you during the trip.

When to involve a research specialist?

Outside help can be useful if you do not have enough knowledge and experience in specialists could save
house. Researchers who are well informed and have many contacts in your product your time
sector can provide much information in a short period. They also could give you
additional information, which they may think to be relevant for your strategy.

In case of field research, you probably will discover research methods you would not
have used yourself, because of the complexity and time-factor. Moreover, to prepare
questionnaires, sample a target group, run hundreds (or even thousands) of personal
interviews (or telephone interviews) and run a statistical analysis are no small tasks.

An important advantage of commissioning the research to an outside specialist is that a neutral view and
there will be an independent, un-biased view and outcome. On the other hand, research credibility to buyers
specialists can be very expensive. So seriously consider beforehand, whether they are
really needed and the potential result would be worth your investment.

RESEARCH ➧ BY YOURSELF OR BY A SPECIALIST

By yourself By a research specialist

- Self understanding and familiarisation - Entrepreneurs are biased

- Networking - Gives much credibility to others

- Flexibility in terms - Use scientific methods for sampling

- Flexibility in methodology - Use methods for extrapolation (forecasts)

51
How to work with research specialists?
Some misunderstandings and myths about market research (see
Chapter 1) have been created by market research communities.
Some of them formed a mystique around their own profession
and the services they provide.

Some research specialists, especially large research companies,

developed their own jargon and their own approaches. They
claimed they have the only people who were properly trained
- the research priests - who were able to conduct reliable market
research.

In some cases they are correct because research professionals

do have the experience, the accuracy, and specific knowledge
of consumers, especially in their own country.

But for you, a useful research specialist should be someone who

can find his/her way in EU information sources, who is able to
collect information quickly, who speaks some foreign languages
and has some knowledge of your sector. He/she must be trained
to analyse quickly and thoroughly and should be able to give
you the right answers in order to tackle your research problem.

Once you have decided to work with research specialists (see also
Chapter 2.2), the research process is very important in order to
prevent any misunderstandings. Please note other items such as:

• The briefing: a document in which you and the specialist agree on the research
objective, process, planning, methodology, deliverables (e.g. report, CD Rom
etc.) and cost of the research project. After meeting the specialist, he will write
a briefing (or research proposal) on which you have another meeting, to make
sure he can do the job and to avoid all kinds of misunderstandings (wrong
problem definition, wrong target group etc.). At the end the specialist will make
a de-briefing on which you finally agree.

• Always ask a few research specialists: compare their skills, relevant expertise,
ability to do the job fast and on the spot and their costs. If you ask them to make
a proposal on a no win no fee basis, it would be polite to send them a small
letter letting them know that you are not continuing the job with them.

• Advance payment 50%: once you agreed have to start the research, do not be
surprised if they ask you to pay 50% in advance to finance their initial costs.

Once the research has been completed, you should expect to

receive a comprehensive report on your researcher’s findings,
in answer to your brief. The researcher will also provide
recommendations on your best route forward and any further
research that may be useful to you.

52
4.3 Organising your data and information

Data, information, knowledge and intelligence

These words are often confused. The intelligence pyramid below shows how intel- interchangeably used
ligence is acquired when following the steps of the research process, as described in
Chapters 2.5 and 2.6.

• Data is the raw material from which intelligence is ultimately derived. It includes
all kinds of facts, complete or incomplete, in various degrees of accuracy and can
be formal or informal (e.g. opinions, feeling, suspicions).

In smaller companies, marketing decisions are often driven by informal rather data are ingredients to
than formal data, due to a lack of money and time, or that management feels that prepare the recipe
its informal data is sufficient for the task. Companies already have all sorts of
data on markets in which they operate, most of which is in the directors or
managers heads. Often there is no time to make it available to others, to collect,
sort and filter these data into information.

• Information is obtained by filtering data and convert it into categories and

patterns. Here contradictions, omissions and inaccuracies in data are identified
and the overall picture of the market and its opportunities is made more complete.

• Knowledge is obtained by further analyses of information through interpretation

of all relevant information, with the aim to understand what it means.

• Intelligence results from the transformation of knowledge by predicting how the

market will develop and how to take action.

ACTION

INTELLIGENCE
predicting

KNOWLEDGE

understanding

INFORMATION
filtering

DATA

53
What to do with all data collected?
Most of all data collected will provide you suggestions for a planned entry into EU keep all data and
markets. Undoubtedly you have come across secondary or primary data, which you categorize it
will not need immediately. Some of this data or pieces of information may raise new
questions. In order to stay focussed on the relevant issues, ignore them. However,
you still should categorize them (e.g. by country, by subject) and keep them aside
for later analysis or for future research. You can use pieces of information more than
once. Depending on the purpose, data often can be recycled for various applications.

Setting up a marketing information system - MIS

You can get the best out of your collected data by setting up a MIS. This is a tool
to collect, verify, analyse, store and regularly feed out information to all people who
are somehow involved in marketing decisions.

It may take some time to set up such a system, depending on the form of your MIS. sharing information
But once it is established, all people involved can benefit from its functional capabi- with others
lities, particularly when you have created your own electronic database.
With the help of some specialised computer software, you can automatically incor-
porate data feeds to your MIS from the Internet and from other external sources. In
addition, a MIS is often designed to make sure that:

• Market research and market analyses are done regularly.

• Internal and external data and information sources are fully used.
• The collected and stored information is tailored to your specific requirements.
Which form does an MIS have?
Many marketing information systems are electronic, but this is not a necessity. your own library in
In fact, you create your companies’ own library. You could rely entirely on written hardcopy...
records and keep all data categorized in hardcopy. The advantage of hardcopy is that
it reads much easier - than on a screen - and people can quickly find what they are
looking for. On the other hand, hardcopy takes much space.

An electronic MIS can be developed relatively easily by using a Microsoft Access ... or in an electronic
database. You can label information with: subjects/countries/keywords/year/source - database
variables which make retrieval of data easy. Such a database can be easily published
on a website or Intranet, so it can be shared by other people in the organisation.

An MIS could also be a combination of data in hardcopy (e.g. books, magazines,

papers and reports), CD ROMs and data held in computer files.

What sort of information should be in a MIS?

Of course, this varies from company to company but most common categories are:
INTERNAL DATA AND INFORMATION
- Company data showing sales by product category, customer category, distribution
channel and price level, margins, profit, inventory levels, promotional expenditure.
- Forecasts of sales and new markets.
- News and gossip coming from sales reports, news, trends from external sources.

EXTERNAL DATA AND INFORMATION

- Market information which enables you to monitor your performance. This includes
market size, average order size, demand by product group, by country, by market
segment, by trade channels, price /product developments, consumer trends etc.
- Market restrictions including quality standards, ntb’s and tariffs.
- Competitors information covering products, changes in market share, prices,
promotional activities, staff changes and new developments.
54
CHECKLIST NOTES

Checklist for researching your chances to targeted EU markets

RESEARCH PROCESS AND ORGANISATION

■ What is your research problem based on your current situation? Chapter 2.1
■ Which desk research techniques including Internet search? Chapters 2.2.1 and 2.2.2
■ Structure your research by drawing up a Research Action Plan? Chapter 2.3
■ Which information you already have? What are the best sources? Chapters 2.2, 2.3 and 2.4
■ - Check for relevant information in trade magazines, trade associations, BSOs, portals etc
■ - Check the Internet sites and times of the relevant trade fairs
■ What additional data is required by e.g. field research? Chapter 2.2.3
■ Preparing your research and how much budget can you reserve? Chapter 4.1
■ What can you do by yourself? Or what can your staff or trainees do? Chapter 4.2
■ How to organise your data and information? Chapter 4.3

EXPORT MARKET ANALYSIS

■ Taking a broad view, getting familiar with your markets - which countries to start with?
■ - Country, culture, economy and market size Questions-Chapter 3.1.1
■ - Market requirements e.g. quality standards, nbt’s, tariffs, quota Questions-Chapter 3.1.2
■ - Trade flows - imports and exports intra and extra EU Questions-Chapter 3.1.3
■ - Market structure - supply chain and price sensitivity Questions-Chapter 3.1.4
■ Narrowing your view, choosing your markets
■ - Market growth and trends and market niches Questions-Chapter 3.1.5
■ - Prioritize by targeting primary, secondary markets Questions-Chapter 3.1.4 and 3.1.6
■ - Segmentation by region - age, sex, income, life stage Questions-Chapter 3.1.6
■ Looking further into your target markets
■ - Competitors and main players Questions-Chapter 3.1.7
■ - Details of consumer target group - how to describe them? Questions-Chapter 3.1.8

INTERNAL ANALYSIS and SWOT ANALYSIS

■ Summarize your own strengths - weaknesses and opportunities - threats for your product
in primary markets, always bearing in mind the unique selling points to your target group

DECISION MAKING and OBJECTIVES

MARKET ENTRY STRATEGY and EXPORT MARKETING PLAN
■ How to decide on your marketing tools?
■ - PRODUCT: positioning, adaptation, concept Questions-Chapter 3.3.1
■ - PRICE: world prices, retail prices, margins, tactical price Questions-Chapter 3.3.2
■ - PLACE: identify best channel, selection partner, buying process Questions-Chapter 3.3.3
■ - draw up a list of interesting business contacts and check their sites
■ - PROMOTION: what competitors do? Your own promotion tools Questions-Chapter 3.3.4

EVALUATION AND FEEDBACK

■ Check the effectiveness of your strategy and tools Questions-Chapter 3.4

55
NOTES

56
APPENDIX 1 - USEFUL INTERNET SITES NOTES

Some product specific vertical portals are:

car parts • www.autonewseurope.com

medical devices • www.devicelink.com
seafood • www.fis.com
fruits • www.fruitnet.com
flowers • www.flowerweb.com
fresh food • www.freshinfo.com
food • www.foodtrader.com
furniture • www.furnitureweb.com
food ingredients • www.ingrid.net
processed food • www.foodnavigator.com
herbs and spices • www.herbs.org
leather • www.leathernet.com
organic products • www.organic-europe.net
organic products • www.organics.com
textiles • www.textileweb.com
market places • www.eceurope.com and
www.alibaba.com

general • www.cbi.nl (link plaza) or

the International Trade Centre (ITC) tool P-maps
www.p-maps.org

• Other Internet sites of trade portals, trade associations,

trade fairs and trade press, can be found in the Appendices
of CBI market surveys

57
APPENDIX 2 - USEFUL ADDRESSES
INTERNATIONAL Tilastokeskus - Statistics Finland
International Trade Center (ITC) E-mail: tiedotus.tilastokeskus@stat.fin
Division of Product and Market Development Internet: www.stat.fi
E-mail: itcreg@intracen.org
Internet: www.intracen.org
FRANCE
International Standardisation Organisation (ISO) COLEACP
E-mail: central@iso.ch E-mail: coleacp@coleacp.org
Internet: www.iso.ch Internet: www.coleacp.org

FAO Federation of French Chambers of Commerce

Publication and Information coordinator E-mail: service@acfi.cci.fr
E-mail: info@fao.org Internet: www.cci.fr
Internet: www.fao.org
INSEE - Institut National de la Statistique et des
Etudes Economique
AUSTRIA E-mail: info@insee.fr
Austria Federal Economic Chamber Internet: www.insee.fr
E-mail: wkoe@wkoe.or.at
Internet: www.wko.at
GERMANY
Österreichisches Statistisches Zentralamt BFAI, Federal Office of Foreign Trade Information,
E-mail: info@statistik.gv.at Germany, Berlin Office
Internet: www.statistik.at Internet: www.bfai.de

Association of German Chambers of Industry and

BELGIUM Commerce
Belgian Chambers of Commerce E-mail: dikh@berlin.dihk.de
E-mail: fedcci@cci.be Internet: www.diht.de
Internet: www.fedcci.be
Statistisches Bundesamt
Institut National de Statistique E-mail: info@statistik-bund.de
E-mail: desk@statbel.mineco.fgov.be Internet: www-ec.statistik-bund.de
Internet: www.statbel.fgov.be

GREECE
DENMARK Athens Chamber of Commerce and Industry (ACCI)
The Danish Import Promotion Office for products E-mail: info@acci.gr
from developing countries (DIPO) Internet: www.acci.gr
E-mail: dok@commerce.dk
Internet: www.commerce.dk NSSG - National Statistical Service of Greece
E-mail: info@statistic.gr
Danish Chamber of Commerce Internet: www.statistics.gr
E-mail: handelskammeret@commerce.dk
Internet: www.commerce.dk
IRELAND
Danmarks Statistik Chambers of Commerce of Ireland
E-mail: dst@dst.dk E-mail: info@chambersireland.ie
Internet: www.dst.dk Internet: www.chambersireland.ie

Central Statistics Office

FINLAND E-mail: info@cso.ie
The Central Chamber of Commerce of Finland Internet: www.cso.ie
E-mail: keskukauppakamari@wtc.fin
Internet: www.keskukauppakamari.fi

58
ITALY SPAIN
Italian Union of Chambers of Commerce Spanish Chamber of Commerce
E-mail: unioncamere@unioncamere.it E-mail: postmaster@camerdata.es
Internet: www.unioncamere.it Internet: www.camerdata.es

ICE - National Institute for Foreign Trade INE - Instituto National de Estadistica
E-mail: sitoece@ice.it E-mail: info@ine.es
Internet: www.ice.it Internet: www.ine.es

ISTAT - Instituto Nazionale di Statistica

E-mail: dipdiff@istat.it SWEDEN
Internet: www.istat.it Chamber of Commerce
E-mail: info@chamber.se
Internet: www.chamber.se
THE NETHERLANDS
CBI (Centre for the Promotion of Imports from Statistiska Centralbyrån
developing countries) E-mail: swestat@scb.se
E-mail: cbi@cbi.nl Internet: www.scb.se
Internet: www.cbi.nl

CBI / AccessGuide SWITZERLAND

E-mail: cbi@accessguide.nl
Internet: www.cbi.nl/accessguide
Netherlands Chamber of Commerce
E-mail: site@vvk.kvk.nl
Internet: www.kvk.nl
CBS - Centraal Bureau voor de Statistiek
E-mail: infoservice@cbs.nl
Internet: statline.cbs.nl
NORWAY
The Norwegian Agency for Development
Cooperation (NORAD)
E-mail: postmottak@oslo.norad.telemax.no
Chamber of Commerce
E-mail: mail@chamber.no
Internet: www.chamber.no
SIPPO (Swiss Office for Trade Promotion)
E-mail: info@sippo.ch
Internet: www.sippo.ch
Bundesamt für Statistik
E-mail: information@bfs.admin.ch
Internet: www.statistik.admin.ch
UNITED KINGDOM
Association of British Chambers of Commerce
E-mail: info@britishchambers.org.uk
Internet: www.britishchambers.org.uk
ONS - Office for National Statistics
E-mail: info@statistics.gov.uk
Internet: www.statistics.gov.uk

Statistisk Sentralbyrå
E-mail: ssb@ssb.no
Internet: www.ssb.no

PORTUGAL
Portugese Chamber of Commerce
E-mail: mcr@port-chambers.com
Internet: www.port-chambers.com

INE - Instituto National de Estatistica

E-mail: ine@ine.pt
Internet: www.ine.pt

59
APPENDIX 3 - RECOMMENDED READING NOTES

GENERAL
Desk research
Paul Hague, Kogan Page, 1994, ISBN 0749412178

Do your own market research

Paul Hague and Peter Jackson, Kogan Page, 3rd ed, 1998, ISBN 0749426527

The International handbook of market research techniques

Robin Birn (editor), Kogan Page, 2nd ed, 2002, (paperback) ISBN 0749438657
(The hardback version is: The Handbook of international market research techniques,
Robin Birn (editor), Kogan Page, 2nd ed, 2000, ISBN 0749426160)

Introducing marketing research

Paul Baines and Bal Chanarker, John Wiley and Sons, 2002, ISBN 0471497703

Marketing research: an applied approach

TC Kinnear and JR Taylor, McGraw-Hill, 5th ed, 1996, ISBN 0071144188

The Marketing research process

Margaret Crimp and Len Tiu Wright, Prentice Hall, 4th ed, 1995, ISBN 0132028395

The Market research toolbox: a concise guide for beginners

Edward McQuarrie, Sage Publications, 1996, ISBN 0803958560

Buying market research

Peter Jackson, Kogan Page, 1994, ISBN 0749413751

Marketing research for managers

Sunny Crouch, Butterworth-Heinemann, 2nd ed, 1996, ISBN 0750604883

INDUSTRIAL
The Industrial market research handbook
Paul Hague, Kogan Page, 3rd ed, 1992, ISBN 0749407743

Researching business marketing: a handbook of business-to-business

marketing research
K Sutherland (editor), Kogan Page, 1994, ISBN 0749414979

TECHNIQUES
Constructing effective questionnaires
Robert A Peterson, Sage Publications, 2000, ISBN 0761916415

Interviewing
Paul Hague, Kogan Page, 1993, ISBN 0749409185

Mail and Internet surveys: the tailored design method

D Dillman, John Wiley and Sons, 1999, ISBN 0471323543

Presentations and report writing

Paul Hague and Kate Roberts, Kogan Page, 1994, ISBN 0749412275

Inside information: making use of marketing data

DVL Smith and JH Fletcher, John Wiley and Sons, 2001, ISBN 0471495433

60
GLOSSARY NOTES

Apparent consumption
Rough estimation of consumption, which is calculated by the production figure and adding
the imports minus the exports and inventory level in that year. This method is often used in
FAO statistics.

Apparent sales
Rough estimation of sales if you know the number of companies or retail outlets in a coun-
try or region selling your product. By estimating their average sales per year, you may get
a picture of what is being sold in that year.

Bookmark
A file on your computer in which you can store all the URLs of useful Internet sites which
you frequently visit. In Explorer, you can create bookmarks in the ‘favourites’ which you
can see on the menu bar.

Briefing
A document which confirms the requirement for, and scope of, a proposed research project.
Among others, the research objective, process, planning, methodology, deliverables (e.g.
report, CD Rom etc.) and cost of the project should be mentioned and agreed by both parties.

Browser
A program on your computer which enables you to ‘browse’ or quickly navigate through a lot
of information. Microsoft Internet Explorer and Netscape Navigator are dominant browsers.

Business information providers

These are research companies and information providers offering online reports or parts of
reports at a high cost. You can also buy up-to-date information reports online. You often
will have to pay in advance on-line by a valid credit card. Examples are Frost&Sullivan,
LexisNexis, Euromonitor, Marketresearch.com.

Consumption or consumer expenditure

This is is calculated on the basis of a large sample survey commissioned by the National
Statistics offices (every 4 years) or large research companies.

Consumption per capita

Consumption or retail sales in a country divided by the total national population.

Customised research
Desk and/or field research done by research specialists and which are tailored to your needs
or to your specificresearch problem.

Data
Data (primary and secondary) is the raw material from which marketing intelligence is ulti-
mately derived, similar to the raw ingredients used to make a recipe dish.

Desk research
The technique to collect secondary data from existing sources, which can be subdivided into
internal (e.g. data within your company) and external sources (e.g. Trade Association, Busi-
ness Support Organisation, Internet etc.).

Field research
The collection of primary data in the target markets by using interviews, questionnaires,
store checks, product tests etc.. It focuses on details and opinions of consumers or buyers
related to your specific product. Field research is mostly done on the spot and usually fol-
lows desk research.

61
Industry sales NOTES
Sales figures, often provided by trade associations. These sales figures also include sales to
export markets, which you will have to deduct to calculate the domestic sales.

Information
The process of digesting the data and convert it into patterns. During this process, you try
to collect all categories, to reconcile contradictory items, to interpolate missing information,
to identify inaccurate data and deepen the overall picture of your target markets.

Intranet
Internal databases which are set up by companies and organisations with all information
relevant to all their employees, branch offices and sometimes to their clients.

Intelligence
Intelligence or market intelligence results from the transformation of knowledge by predic-
ting how the market will develop and how it can be acted upon.

Keyword
The way you describe the subject you are searching on the Internet. Keywords can be any-
thing e.g. name of a product, country, person, company or a title of a book or even a com-
bination of words.

Knowledge
Further analyses of information by an interpretation of all relevant information in order to
understand what it means.

Marketing Information System - MIS

This is a tool to collect, verify, analyse, store and regularly feed out information to those
people responsible for making marketing decisions.

Market players
Domestic and foreign suppliers such as importers, manufacturers who have a considerable
share in the market. Suppliers with the largest share are the ‘main players’ who dominate
that market.

Market research
The collection and analysis of information about markets, organisations and people to sup-
port better export marketing decisions.

Market segmentation
Subdividing a market into distinct categories of consumers - or end-users industries - with
similar wants and behaviour patterns. A market can be also segmented into other categories
e.g. by product, by season etc.

Research Action Plan

A plan which you have to make yourself giving you a structure and basis for monitoring
and reviewing the progress in your research.

Perception
The process by which people select, organize and interpret information to form a meaning-
ful picture.

Portal
A starting point for research on the Internet. They usually have a subject focus e.g. by
product (food, ingredients, jewellery) by science or as a general starting point for research
on the web (e.g. Yahoo). All information portals are designed to be ‘one-stop-shops’ for all
your information needs.

Positioning
Positioning is a term used to refer to how you want consumers (or buyers) to think of your
product or service relative to those of competitors.
62
Primary market data NOTES
In this case, you or a professional researcher collects data directly from the foreign market-
place through interviews, surveys, and other direct contact with representatives and potential
buyers.

Quantitative research
Can be done to find out a general profile of your consumer target group in terms of general
characteristics such as country, region, sex, age, income etc.

Qualitative research
This is often used to understand more deeply your target group in terms of their culture,
attitudes, feelings and motivations for using a product.

Research subject
The subject you need to find the information about such as countries, market size, target
groups, trends, players, trade channels etc.

Research process
Research programmes are usually structured in a 6-step process. In each process, you can
combine different research subjects using different techniques.

Research technique
A method to collect primary or secondary data such as desk research or field research.

Retail sales
Total sales without sales tax by all retail outlets in a country for a product, product group or
sector. Although product categories are too broad it still will be a good point of reference to
compare EU countries.

Sample
The number and the characteristics of people (e.g. French young male, aged between 20
and 30 years old, living in Paris) who are selected for a piece of field research and who
should represent a percentage of your target group.

Secondary market data

Data from various sources, such as trade statistics for a country or a product. Working with
secondary sources is less expensive and with the internet, you can find much in on-line
databases and portals such as market developments, product standards, market access, trade
regulations, prices, buyers’ platforms, statistics and much more.

SWOT
Strength-Weakness / Opportunity-Threat analyses from which you have to set your export
marketing objectives.

Tracking data
Retail sales of specific product groups and up-to-date, measured quarterly instead of yearly.
This information is collected through cash registration systems or scanners and registered
by research specialists such as Nielsen, Taylor Nelson or NPD, which is reliable but very
expensive.

USP
Unique Selling Proposition i.e. how consumers can recognize that your product or brand is
standing out by being special or different from competitive products or brands.

URL
Uniform Reference Locator or an Internet address, similar to a street address in that it
identifies a particular location (Web server or file on that server) on the Internet.

63
CBI: YOUR EUROPEAN PARTNER FOR THE EUROPEAN MARKET business-to-business activities and general export market entry support.
Key elements usually include technical assistance in fields such as
The CBI (Centre for the Promotion of Imports from developing countries) is an product adaptation, improving production, implementing regulations and
agency of the Dutch Ministry of Foreign Affairs. The CBI was established in 1971. standards and export marketing and management assistance.
The CBI’s mission is to contribute to the economic development of developing
countries by strengthening the competitiveness of companies from these countries Training programmes
on the EU market. The CBI considers social values and compliance with the most Training programmes for exporters and BSOs on, among others, general
relevant environmental requirements to be an integral part of its policy and export marketing and management; trade promotion; management of
activities. international trade fair participations and developing client-oriented
market information systems. The duration of the training programmes vary
CBI offers various programmes and services to its target groups: between two days and two weeks and are organized in Rotterdam or on
location in developing countries.
Market information
A wide variety of tools to keep exporters and Business Support Organisations BSO development programme
(BSOs) in developing countries in step with the very latest development on the EU Institutional support for capacity building for selected business support
market. organisations.
These include market surveys and strategic marketing guides for more than 40 The programme is tailored to the specific needs of participating BSOs and
product groups, manuals on export planning and other topics, fashion and interior can include train-the-trainer assistance, market information systems
forecasts and the CBI News Bulletin, a bi-monthly magazine. This information can support and staff training. CBI’s role is advisory and facilitative.
also be obtained from our website at www.cbi.nl For all information on non-tariff
trade barriers in the EU CBI has a special database, AccessGuide, at Please write to us in English, the working language of the CBI.
www.cbi.nl/accessguide
And finally CBI’s Business Centre is offering free office facilities, including Centre for the Promotion of Imports from developing countries
telephones, computers, internet and copiers for eligible exporters and BSOs. Centrum tot Bevordering van de Import uit de ontwikkelingslanden
Market reports, international trade magazines, cd-roms and much more can be
consulted in the information section of the business centre. Mailing address:
CBI
Company matching P.O. Box 30009
The company matching programme links well-versed suppliers in developing 3001 DA Rotterdam
countries to reliable importing companies in the EU and vice versa. The online Phone +31 (0) 10 201 34 34
matching database contains profiles of hundreds of CBI-audited and assisted Fax +31 (0) 10 411 40 81
exporters in developing countries that are ready to enter into various forms of E-mail cbi@cbi.nl
business relationships with companies in the EU, as well as many EU companies Internet www.cbi.nl
interested in importing or other forms of partnerships such as subcontracting or
private labelling. Office:
WTC-Beursbuilding, 5th Floor
Export development programmes (EDPs) 37 Beursplein, Rotterdam, The Netherlands.
EDPs are designed to assist entrepreneurs in developing countries in entering and
succeeding on the EU market and/or in consolidating or expanding their existing
market share. Selected participants receive individual support over a number of No part of this publication may be sold, reproduced in any form or by any
years by means of on site consultancy, training schemes, trade fair participation, means without the prior permission of CBI
Disclaimer
The information provided in this manual is believed to be accurate at the time of writing.
It is, however, passed on to the reader without any responsibility on the part of CBI or
the authors and it does not release the reader from the obligation to comply with all
applicable legislation.

Neither CBI not the authors of this publication make any warranty, expressed or implied,
concerning the accuracy of the information presented, and will not be liable for injury or
claim pertaining to the use of this publication or the information contained therein.

No obligation is assumed for updating or amending this publication for any reason,
be it new or contrary information or changes in legislation, regulations or jurisdiction.

Illustrations by: Raymond Hendriks

Photo courtesy: Searce