GDP Size, Performance & CompositeConsumer + Government + Investment + (Imports - Exports)Economic Sectors % Agriculture, % Services, % Industrial
BESTMARKETS
Best Market Opportunities
CULTURECulture
Social
Economic
PoliticalLegal
Technology
Hot Markets for Canadian Exporters
Analyze and select best markets based on social, legal, economic, political, technology factors
Economic indicators de�ne the health, structure and stability of a market
Social and culture norms in�uence customer value perceptions about companies, people and products, services, and shape relationships and buying behaviors
Legal de�nes the rules by custom or treaty recognized by nations as binding in their bilateral / multilateral relations with one another
Political environment de�nes security and stability, and shapes �scal and monetary policies
Technology determines level of market sophistication and competitive landscape
+4%
+6%Decoding ASEAN Markets
1
Hot Markets for Canadian Exporters
Analyze and select best verticals exhibiting growth momentum
Identify high-growth verticals in each market that align with products and services o�ered, and company abilities
Select best customer samples and interview key decision makers, diagnosis situation, and identify products and services used & why?
Determine value propositions that di�erentiate and add meaningful and relevant customer value
Value must translate into customer gains
GROWTHVERTICALS
High GrowthVerticals
Mining
Manufacturing
Shipbuilding
Construction
Utilities
Petrochemical
Oil & Gas
Services
US VS.THEO SR
Competitive ValuePropositioning
+12%
%-6
Agriculture
Strategic Gain
Personal Gain
Economic Gaini.e. New product reduces maintenance cost
i.e. Stronger partnership with top-tier supplier
i.e. New product o�ers better serviceability
Decoding ASEAN Markets
2
Value-added Buyers
Price Buyers
Premium Buyers
C 23%
A 12%
B 65%
Seek alternatives
Burrowing up
PODUCTPRICERProduct & Price
Positioning
High qualityMany featuresHigh price
Low qualityFew featuresLow price
Hot Markets for Canadian Exporters
Analyze and select the best customer buyer categories to position and compete
A) Premium buyers – Discerning buyers who accept only top-tier brands o�ering the highest quality in products with the most features, along with priority services. They are willing to pay the highest level price premium.
B) Value-added buyers – Buyers who expect high quality products and services that meet speci�c needs. They normally accept products with less features and are willing to pay a price premium based on relevant perceived value.
C) Price buyers – Buyers who seek products that are of adequate quality at the best possible price, and have less concern about quality, service levels and consistency
6 - $412.50 › Channel Sell Price / Customer Cost
5 - $288.75 › Channel 5% Internal Costs
4 - $275.00 › Channel 25% Duty Cost
3 - $220.00 › Channel 10% Logistics Cost
2 - $200.00 › Company Selling Price at 50% GM
1 - $100.00 › Company Manufacturing Cost
Export Price $200.00 at 50% GM
1. Cost-plus Pricing Model (Traditional Model)
1 - $385.00 › Channel Sell Price / Customer Cost
2 - $269.50 › Less Channel 30% Pro�t
3- $256.67 › Less Channel 5% Internal Costs
4 - $205.33 › Less Channel 25% Duty Cost
5 - $186.67 › Less Channel 10% Logistics Cost
6 - $100.00 › Company Manufacturing Cost
Export Price $186.67 at 46% GM
3. Value-based Pricing Model
1 - $350.00 › Channel Sell Price / Customer Cost
2 - $245.00 › Less Channel 30% Pro�t
3- $233.34 › Less Channel 5% Internal Costs
4 - $186.67 › Less Channel 25% Duty Cost
5 - $169.70 › Less Channel 10% Logistics Cost
6 - $100.00 › Company Manufacturing Cost
Export Price $169.70 at 41% GM
2. Market-based Pricing ModelMarket Price is CAD 350.00 (examples only to illustrate process)
Price should be value-based and within the threshold of customer affordability
10%Premiumover market priceachievable
Decoding ASEAN Markets
3
CHANNELPARTNERS
Channel Partnerships
Hot Markets for Canadian Exporters
Analyze and select best channel partners to optimize target customer reach
Channel partners should be segmented and selected by market, region, and verticals served
Channel partners should be selected based on their access to target customers, �nancial capabilities, and sales and marketing resources
Promotion activities must align with markets, channels, verticals and end customers
Manila
Davao
Cebu
PROMO ONTICAMPAIGN
Promotion Campaign
1 Market3 Regions Multiple verticals
Educate
Above the line
Below the line
Decoding ASEAN Markets
4
Focus Selling on Best Customer ProspectsBESTCUSTOM SER
Hot Markets for Canadian Exporters
Analyze and select best customer prospects based on economic value & probability of success
Decoding ASEAN Markets High
Economic ValueSales Revenues &Pro�tability
High Probability of Success Low
80% Focus 20% Focus
Leave for Competitors
Channel PartnersManage
Determine Target Customers 80/20 FocusIn alignment with business resources & capabilitiesBy revenue / pro�tability & probability of success
Diagnose Customer Situation and NeedsValue perceptions & buyer behaviors di�er by region, vertical and customerSales must understand customer speci�c problems & severity, and needs before o�ering solutions
Di�erentiating Products / Services Demonstrate customer speci�c value through, “Features that Matter” Value must address needs & translate into one or more relevant customer gains
Deliver Compelling Customer Focused Presentation Sales must deliver compelling focused propositions to all stakeholders Moreover, convince skeptical decision makers, justify price & defend pro�tability
Document Outcomes Successes become references, marketing tools & customer preservation projectsNonsuccesses become learning experiences and ongoing prospect follow-up projects
Strategic Gain
Personal Gain
Economic Gaini.e. New product reduces maintenance cost
i.e. Stronger partnership with top-tier supplier
i.e. New product o�ers better serviceability
5