For a large number of producers, penetrating new markets is the key to enterprise growth, especially when sales have saturated local markets. In this regard, exports create opportunities that could translate into significant financial rewards. The key to satisfying this goal, especially at the onset, requires a significant amount of research - taking time to fully understand market dynamics - coupled with a well-informed, strategically sound, 3 to 5-year marketing plan.
Some of the most important questions that research should answer includes: Are there any direct competitors? Is there a need for our product? Who are the people that will buy them? Does everyone understand what we have to offer? How will we let them know our products are available? How will we get our products to them? The list goes on.
All too often, producers are short sighted, only seeing market size and sales potential. They fail to understand that penetrating new markets takes a coordinated effort within the company, a sizable financial investment and more work than most marketers are prepared to support. In fact, it could take several years before things start to pay off. It's no wonder we see so many new products drop out of the running after just one or two years.
For international producers, it's common for them to forget that the products they offer, and in some cases, the country in which they operate, are a complete mystery to their intended audience. Based on my own engagements in Georgia as well as in several countries on the African continent, I've learned that the country of Georgia is all too often confused with the U.S. state. In Africa, home to 54 countries, each with their own history, culture and foodways, Americans know the continent but not much else. As far as they're concerned, Africa is the place with all the elephants, giraffes and hippos. It doesn't take long before the need for education as part of the overall marketing process becomes apparent.
Plus, there can be distinctive culinary differences that will limit product acceptance. While Americans may not understand or recognize the point of origin, they're certainly not going to understand what to do with products with unfamiliar names such as fonio, jollof, berbere, khachapuri, zafrana or ajika.
The bottom line is that producers need to fully understand marketplace dynamics. Whenever I deliver export-oriented seminars and workshops, the first thing I recommend is "take a vacation." In other words, before a company invests in an export program, they should go to the target market and see what it looks like, visit stores, meet with distributors, make connections and find ways to accurately gauge opportunity. No matter how good they think their products are, without a well-researched and strategically sound market-entry plan, it's probably better to stay home and see what untapped opportunities can be uncovered in their own back yard.
Jeffrey Spear has been working with a global community of food producers and foodservice operators for more than 45 years, supporting new product introductions and brand growth through insightful research, well-conceived marketing strategies and creatively inspired designs. He is also an accomplished food writer, formulating recipes, publishing cookbooks and developing editorial content for a variety of trade and consumer publications. If you're looking to penetrate new markets, enhance the impact of your brand, or simply need someone to tell your story in ways that are visually and emotionally appealing, give Jeff a call: 904 685 2135 - or shoot him an email: jeff@studiospear.com
With more than 345 million people, the United States represents incredible opportunity for food producers. Getting products placed on shelves, especially while enticing consumers to recognize and buy them, is a challenge that many fail to overcome.