11 opinions of Russian entrepreneurs and managers. We initially focused our business on foreign markets, especially English. Given that our services are mainly B2B for us was immediately apparent the need to open a company in offshore jurisdiction for more convenient work with corporate clients. As for the marketing aspects of entering foreign markets and attract customers to B2B services, our experience is likely typical.
We certainly stepped on a lot of classic mistake that occurs most of the companies expanding into overseas markets. In the first six months after its launch we spent a lot of money, time and energy to participate in various major European and American exhibitions, where they tried to “light up” and meet with major potential customers. We spent a lot of money on customized advertising articles. The result was close to zero. Lost money and time – its a great pills that help to rethink the nature of the universe, to get rid of illusions and hallucinations.
We had to significantly rethink their own positioning and strategy capture the universe. As a result, we came to the strategy of “guerrilla marketing” and partnership model of expansion into new markets. We completely stopped spending money and time engaging in a costly and senseless from the point of view of quick returns international exhibitions. Instead, we began to work actively with LinkedIn.
Make a portrait of a potential client, find the right people and start with them in meaningful dialogue. Efficiency several orders of magnitude higher, and the cost of the relevant contact is about zero. We stopped spending money on paid advertising. Instead, we focused on communicating with industry “influencers”.
Experts and teachers. We came and showed our product, demonstrated its capabilities, gave “drive” in the tail and mane. Once the experts opened the “depth of our depths,” they on their own initiative and completely free began to write reviews and reviews on our platform in their blogs and really important for the industry sites. These articles and reviews immediately began to cause us a real major international clients such as Unicredit Bank, Tata, Sonova.
We just realized that we are not training and not a training company to teach people its not our business. We are a technology company that creates unique services and tools for those who teach managers, coaches entrepreneurs and executives of other companies. Due to this discovery we found an optimal model for entrance into a new market. We began forming a partnership network of local training companies, which on one hand can sell and offer educational and training decisions, but they need a fundamentally new competitive products and the exit channel outside of their local markets. We started to sell these companies franchise.
As a result, in six months we have established a network of 15 partners in different countries. Brazil, Colombia, India, Israel, and so on. For six months we went to more than 15 countries in which we have a competent partner provider who understands the specifics of local markets. One of our key target segments – the universities and business schools.
I must say that this is a fairly specific segment. In this long chain of decision-making and long cycle deals. As a rule, the initiator of the inclusion of a new tool in the educational process is a passionate teacher. But, as practice shows, to work with each teacher separately and to show him all the charms of the platform is a very expensive process. It can take years, and to predict the result of hard.
A teacher by nature a researcher, he is interested in the process of learning the platform capabilities, we are also an important deal. And preferably not in the next decade. Therefore, in order to close a deal with a University or business school, it is necessary to simultaneously meet the following two conditions. Positive feedback about the product from the teacher and his students, and contact with the distributor of the budget (Dean and administration). We long struggled with effective tactic approach to international institutions, but the decision eventually born spontaneously.
In two weeks we organized on the basis of our platform free international championship management for students of universities and business schools Simformer Business Cup. We got contacts of a few dozen international student and University associations. I asked them to help us in organizing such an event (several responded with great enthusiasm).
? Placed an announcement of the event in relevant groups in social networks. ? Sent by several thousands of universities and business schools. As a result, our international student online championship management within two weeks received nearly 400 teams from 40 countries. Many universities and business schools simultaneously tried our solution, everyone was happy, many quickly became our clients. We received a lot of positive public feedback and hundreds of universities around the world learned what Simformer, and why they need it.
Our direct costs for this event totaled exactly $0. We spent two on the organization and presented several dozen annual licenses as prizes to the winners. Had planned to reach self-sufficiency within six months after the launch. In reality released in the break-even point in 15 months. The reason is simple.
Forecasts usually are significantly more optimistic than the harsh reality. Our initial hypothesis about product positioning, value proposition, target audience and its needs, the optimal business model, effective marketing channels and sales drivers, market entry was either not entirely true or completely not true. All this inevitably led to a chain of experiments, test new hypotheses and, therefore, financial and time losses. On the way out we made about $250 thousand, but in reality spent twice. We did not foresee that it will take at least six months to experiment and validate market hypotheses.
At the initial stage of the cycles of transactions was significantly higher than expected, and the conversion of the sales funnel significantly below our original forecasts. One of the biggest challenges for scaling B2B business is the cultural differences and business traditions in different markets. Different markets have different dynamics of doing business and different ways and traditions of doing business. Illustrate with specific examples.
If you sell something to the Chinese – they will have to tamp at a price to the last, until you eat all your brain. But after you kind of agree on the conditions, the Chinese client all the same will ask for another enormous discount, the right to life use of your product and preferably the source code. At the moment we are involved in negotiations with one of the largest and richest of the Beijing universities, which on a blue eye assures us that they are quite unbearable poor, they have no money and have to scrape the bottom of the barrel, selling the last remnants of the rice. But I believe that the Chinese have done great job.
And it is necessary to bargain. And we try to learn from them. If you sell something to the rich Arab countries (Qatar, UAE), if you position the product not as the exclusive artifact that no one in the universe is not, and why the price is so incredibly high, you will likely not get the contract. So, not knowing the local specifics, we lost one major deal with a potential value of €300 thousand, when offered our licenses for standard European price and referred to the fact that some European universities use our solutions.
If you sell something to some University in Singapore, no matter how wonderful your product, no matter how wanted to your client, you will be required to carry out your proposal through a single public tender portal. Your proposal must correspond to a sufficiently large set of formal criteria that your client often affect not able. In Singapore we lost a deal worth about $120 thousand because our price was 9% higher than the other, but not very suitable Singapore University decisions. There are bureaucratic disadvantages, but full transparency.
If you really have a competitive solution to Singapore to work need. You just want to learn how to issue tender documents and to work with the portal of public procurement. If you sell something in Angola, or a number of other African countries, know that if the client said that he really like and you can send the contract to be signed a day later, he will be signed no sooner than six months. There is no hurry, theres a completely different pace of life, and six months by their standards is lightning haste.
Now we have a “final” stage of the second transaction with the largest University in Angola. Please urgently send the contract, because the rector has almost recovered the money was about six months ago. I hope by may 2017 we will close it. If you sell something in Central Asia (e.g. Tajikistan), be ready to do business “in patsanski”.
And the fact that you can “throw”, no matter what level the transaction takes place. If you have no connections at the governmental level, and you work in the B2B sector, this probability is higher than the average. Last year we won in Tajikistan, the world Bank tender for the supply of solutions to teach local officials the skills of management. At stake was approximately €130 thousand. After we have prepared all the tender documents and won the bid, our Tajik partner safely disappeared with the money of the world Bank.
If you plan to sell something in Brazil, keep in mind that Brazilian customers are very difficult to pay abroad. There are a number of significant limitations. It is desirable to have a com domain.br and processing, supporting operations with the Brazilian payment systems. Here we have lost nothing, we were lucky with our Brazilian partner.
Of course, when entering foreign markets the hardest thing is to face each situation with what is surrounding you the global reality is much more diverse and frozen in you paradigms, and the reality in different places of the globe behaves often quite unpredictable, unnatural and illogical. At first you think its that way, but after you gain some critical mass of such situations, and experiences and begin to understand the diversity of the world, in you there is flexibility, expanding horizons and comes the ability to create synergies, add a harmonious jigsaw puzzle of acidic and square. And then you become able to do great global business. Rather, you become able to realize his great global idea, which incidentally is becoming a global business. For the past couple of years we have a office in Stockholm.
Chose Sweden because I wanted to test with European entrepreneurs, and in the Scandinavian countries and the Internet penetration rate is high, and a small business is very developed. In General, in many respects, Sweden has seemed to us interesting. In addition, we found the right person who was ready to take over the development office. Before entering the Swedish market, we already had enough income to invest in expansion. We made a separate business plan in Sweden, which meant the investments in the operating structure, marketing and development.
Expenditure on the development and adaptation of the system for the Swedish market we made a mistake about two times. Marketing and operating expenses – hit, but this is not our exact forecast, but with strict control of costs (we continued to control them from Moscow). In just the first year, planning to invest about 15 million rubles. Faced a lot of difficulties, from ignorance of the language and the problems with certification in international payment systems for accepting Swedish kronor, to the peculiarities of mentality and negative attitude to Russia (already there were sanctions). We learned to hide “Russian ears”, to introduce an Irish company.
Over time, our representative actually took on the role of the payment provider, the site is fully translated into Swedish and was no longer anywhere to show that we are not “indigenous Swedes”. As it turned out, the Swedes really do not like all not Swedish. To reach the payback planned for the year, but two years have passed and we have not yet reached. The reason is the barrier to taking the product and market entry were higher than expected. To large-scale marketing campaigns and large infusions of us were not ready, and “on the sly” to gain 200-300 clients was not so easy as we hoped.
Not knowing the brand and doubting his “shvedskoy”, no Swede, and even a former Russian who moved to Sweden, I will not give even 100 crowns. In addition, it turned out that the Swedes are quite “stingy”, and unlike Russian, is not inclined to experiment. Our main mistake was in the speed of attraction of new customers, their average bill and the income that flowed from these indicators. We expected to reach 300 active clients during the year, but could hold out only up to 100. We are pretty tightly controlled costs, but not earned as much as they wanted.
On the European market we first came in 2014 when he won the competition of the Finnish government Finlanding. We drove across the country, met with faculty, administration, and decided to go big. On the one hand, we are modernizing education and sell classes of innovations, including our development of equipment which you can use to teach children programming, robotics and 3D printing, and with another – to train teachers and offer subscription to our training materials. There is a myth that in order to enter the foreign market, you just have to translate everything into English and to export products. We succumbed to the temptation and took the path of least resistance.
It was a big mistake. Each country has its own linguistic and cultural characteristics in relation to the whole, from the packaging to the education system, and simply translated into English is, of course, not an option. Initially we planned to achieve breakeven for the year, but now we see that more time is needed. Its a different country, where even time flows differently. In this regard we have missed in the budget.
Originally planned €200 million, but will have to spend more. Now “Robbo” has a representative office in Finland, where employees who speak Russian and Finnish languages. They live in this country, understand the needs of the target audience, but in Finland and Russia services and products different. “Robbo” had their own mugs of robotics – “Robbo Club” — which spread across the franchise, and we already knew how to act. We sold a franchise, provide materials and together with a foreign partner, they were processed and localize.
Now we are negotiating with India, the US and China, and are on the path of joint cooperation, hard work and localization. Partners are the driving force of the business abroad. They will help to overcome the peculiarities of local mentality and business environment. They will be able not only to develop the market, taking into account all the nuances of their region, but also to solve the most routine tasks, such as taxation, payment and so on. Before you sign a contract, you must be sure you have found the right partner and will not lose time in vain.
To compile a pool of potential partners, ask yourself three questions: ? The potential partner serves our target audience?. ? Partner friendly business model. Are they willing to use our guidelines for business to adhere to is dictated by the channel and the pricing policy?. ? We well understand how our software can help our partners to achieve their goals?.
To process a list of partners better in person, no remote communication will not give “shifty eyes”. Obligatory condition of success is the involvement of the owner or leader in a primary business communication. We develop mobile applications for field employees. Merchandisers, sales representatives, couriers, pizza and even plumbers. Business with such personnel are everywhere, so it is logical that we started the global expansion.
First, in 2016, came to the Czech Republic, then in the UAE. In 2017 we leave in the USA, Canada and Latvia. In the Czech Republic we chose to concentrate on design and marketing, and the sale, implementation and support of products to give partners. We always work through partners. Primarily because the foreign partners know the local market and the needs of potential clients.
Czech language and also know — without it here in any way, especially at marketing events. Working through partners allows us: To offer a localized product is tailored to the needs of market and customers.To avoid the overhead associated with opening and maintenance of offices, call centers, support services. Otherwise, the product will be more expensive that the client wont like.Not spending resources on search of scarce experts.
In the Czech Republic in our field now employees dictate terms in the labor market, not employers. This applies, above all, strong sales employees. About payback too early to say. Our exit plan, “a plus” for foreign markets — 1-2 years.
It seems that the year will not have time. Not all hypotheses that were confirmed in Russia, working in the Czech Republic. For example, Czech Telecom companies dont need apps for field employees, unlike Russia. The difficulties and oddities that we encountered:
In the Czech Republic is not very popular English application, at least in our area. Had to translate interfaces into Czech. When deciding for entrepreneurs play a key role feedback from local companies, not advertising in search engines and paid publications in society. Therefore, you first need to accumulate “Czech portfolio”, and when the company will share successful experience of using your product, then there will be a steady demand.
What helps us: In the Czech Republic many entrepreneurs. Every fifth in the country among the leaders of the company, or has permission to business activity. Most companies in the country — small firms with 10-20 employees.
As in the Czech Republic we orientirueshsya on the small and medium business, it is for us. Here appreciate the work of others and are willing to pay for solution to some problem, rather than spend time on independent study. This feature of the best any it company.
In the Czech Republic with a high level of trust between entities. Document management is easier than in Russia. Often billed invoice is sufficient to guarantee payment of services and conditions of their provision could be coordinated by post. The less bureaucracy, the better for any company. Overall, the cost of unskilled Lida is obtained in the range 50-100 Euro.
About the same cost, the application of local companies that promote similar products (not our direct competitors). But of course, we want to reduce the cost. In 2016 the company “vokord” launched a major international expansion aimed at entering markets of the Gulf countries, Europe, USA and Canada. When entering foreign markets, we have invested considerable effort to understand the specifics of the legislation in each of the countries where we planned to grow their business. In our area related to the video surveillance and biometrics, it is important to consider all existing constraints.
For example, in some middle Eastern countries there are prohibitions on the obtaining of images of women. There are also certain requirements for the use of the received data. In addition, in the preparatory phase we have spent efforts on the analysis of markets and the changing specification of product lines. For each region it was necessary to form its own set of products and solutions, which, on the one hand, would meet the needs of the market and with other legal requirements. The companys own funds invested in the implementation of this phase has not exceeded $200 thousand.
In most countries, as in Russia, we held on to the affiliate sales model. We tried to choose one partner, a distributor, who will be able to develop business in the country, in different segments. In major markets such partners may be a few. At the same time, they may meet either for a defined territory or market segment (e.g., commercial sector, transportation applications and so on). The term of the payback depended on market.
In some countries, particularly in Western Europe, in North America, we continue to invest in development, market research, promotion of our products. In other regions, for example, some CIS countries and India, we already have a stable operating business. Our investment in the project are mainly related to the certification and localization of products as well as participation in various promotional events. Now we are within the previously established indicators. The total volume of investments in the future two to three years will amount to just over $9 million.
In early 2016, we have adopted a sales strategy, one of the areas which is access to the markets of USA, Europe, Turkey, South Africa and several countries in Latin America. We clearly defined the profile of our customer in these countries, and not tried in the first phase to cover all. For the foreign market can be concluded partnership agreements with system integrators in the country. This allows you to reduce costs in the promotion of product and focus on working on specific projects, the success of which will serve as a driver for further product promotion. When entering foreign markets need to clearly understand that potential customers will be other expectations from your product and the motives which impel them to purchase can be radically different from the motives of customers in Russia and CIS.
The adjustment of our understanding of customer needs takes time. This is despite the fact that we always tried to find a partner who understands the market. But it does not always work immediately to find a partner in a specific country or with a specific client. Plus there were some difficulties with communication if the country is not English or for client English is a second language.
The payback was 5 years after the beginning of scientific development, but slightly missed the timing. The main reason is the adjustment of the monetization models and refocus industry, where demand for our solution was higher. In addition, following the global development of technology, we have had to adjust their set in the proposed solution. The sales cycle was longer than initial expectations. However, it is typical for high-tech venture projects in the B2B sector.
We arrived in the USA to open an office sales services our R&D company. The first thing I realized. Conditions it products in which Americans live is very different. For example, a large number of users use Yelp, Snapchat, Craigslist, which is not popular in Russia. To create a competitive product in the U.S. market, you need to feel the experience of using local services, to study them familiar patterns of consumption of the product content.
Well, a portfolio that works for us in Russia, it is not appreciated in the United States. Valued experience working with American companies. In Russia we have a reputation, ratings, profiles on social networks. Here we have a brand recognizable among potential customers. In the US our local achievements mean nothing, we started this branch from scratch in a new reality.
Until we have a strong brand in the local market, we can only sell through personal contacts, people who trust us personally and to our agents, not the brand of “Technocracy”. We met through Facebook with people in the USA who was interested to open a representative office of our company. When we arrived in the USA, our partners gave us a networking session with U.S. businessmen and representatives of Russian it-parties. There went the first orders, which are then initiated word of mouth. Thus, we did not make initial investments in marketing.
Without the cost of marketing we have been able for six months to earn more than $50 thousand. Now we have an office in San Diego, however, the majority of sales still happens through networking our partners and agents. The same Agency model is effective for us in Europe. We regularly deal with companies from Switzerland, England, Germany, China. For a start, we did not require large investments, because the sales office service R&D is located in the office of a food company, which develops our partners with us.
We have no cost state in the U.S., because our agents work for a percentage of the contract amount upon transaction. I believe that we are moving in the right direction, and not just not losing money, but also earn. In the near future, we expect to invest approximately $50 thousand in marketing activity. One of our Israeli clients — Forex-broker to whom we provide services for processing electronic payments — told us about the problem faced. We are talking about the theft of leads, client data.
The investment they put into attracting new clients is extremely high, accordingly, the cost per Lida is also high — on average starts from$20. Surprisingly, it is no solution that would protect data from internal and external threats in the market. We used the experience and knowledge of the payment industry, in which the protection of personal data is core business. Initially, we did not anticipate entering the market with our decision, do it under customers request. Accordingly, the first stage of a significant investment on our part in the project was not.
Then we realized that in the absence of competing proposals, we need to output Leads Protecting System on the market, and began to take a more active stage of product development, which involved our staff developer. In may 2016, we have presented a solution to a wide audience at the largest industry exhibition. From that moment began active negotiations with brokers, trading platforms. We noted an interesting feature. To many LPS showed interest, the product presentation was held on “cheers” – such solutions on the market do not exist and does not exist until now.
To be able to protect themselves from theft leads very inspired by our potential customers, but with the conclusion of the contract, no one was in a hurry. These difficulties were associated with a certain inertia business. Players dont want to change, although the projected gains from such changes is impressive. In addition, we ourselves found it difficult to determine the cost of the solution. Again analog LPS does not exist, in fact, no competitive market, so pricing is very difficult.
The business environment in Israel is such that for the most part, many travelers decide. Networking has helped us to introduce a solution to interested customers. We have in this country for several years running partner who frontul product sales and is personally acquainted with persons who make decisions in the companies. We had no sales plan, but we expect that by the spring of 2017 we will already have several contracts with trading platforms or brokers. As a result, their first contract was signed only in mid-April 2017.
After signing the contract, the customer said he was ready to buy the solution three times more expensive. It makes us rather pleased – we now have a better orientirueshsya in the real value of our solution. Despite the fact that our expectations for sales LPS was not justified, we are confident that we will be able to shake the market. The only investment that we were planning and planned to do to “lose” market is the participation in exhibitions. For our target audience, we are not novices, they know us already as we work with several large companies, provide them your payment solution.
During the year we participated in three shows and spent about $33 million. Our company develops cloud services for business under the brand Dodidone. Is an electronic trading platform Doditrade, cloud telephony and instant messenger for business Dodicall, corporate e-mail Dodimail and cloud storage Dodibox. We go out simultaneously on the markets of Russia, great Britain, Germany and the Scandinavian countries. Until the end of 2017, we have plans to France, Italy, Israel and the United States.
The business model Dodidone implies the existence of a representative office and company-telecommunications operator in each country of operation, which allows us not only to respect local legislation, but also to better understand the needs of business in each region. Entering a new market, we conduct market research and organize surveys of the target audience. Depends on the choice of positioning and future strategy. On his experience convinced that it is necessary to adapt to each market. Market research can be done by regular staff, but only on the condition that they have a similar experience.
It is important to explore potential customers, because. Their problems differ from country to country and, therefore, consumer preferences are different. Primary market information collected through participation in exhibitions and major international conferences. For example, recently attended Mobile World Congress in Barcelona. In the UK in may, it will host The Business Show, which will also introduce our services.
We asked for support in the international trade Department of the British Embassy, which assists companies with market research and business adaptation to local realities. Consulted with the Embassies of Germany and France, which allowed us to obtain additional information. We also entered into the relevant international associations to establish communications with the business community to participate in events and to communicate directly with potential customers and partners. We are already part of the Swiss e-Commerce Association Netcomm Suisse and the British Federation of communication services. Came to the conclusion that the positioning of services Dodidone in Russia and in the countries of Europe should be different.
Our target audience is small and medium businesses, but in Russia we are promoting cloud services for business, and in Europe – focus on international electronic Commerce. To this conclusion came after analyzing the economic trends and the market situation of each country. Studied the competitors, their numbers and marketing tactics, speak with the local experts. Consultation with someone who knows the market inside out, able to save a considerable promotion budget and reduce the number of errors. When planning a budget you need to prioritize.
If the company only entering the market, the main costs are associated with obtaining the information (marketing research, focus groups with customers, participation in exhibitions and conferences). But these costs are fairly easy to predict, as there are fixed prices for such services. Harder when the company is included in the competition. We recommend to estimate the approximate marketing costs of competitors. To predict the exact budget for promotion is not easy, so initially put 15-20% for unexpected expenses and look for possible ways of saving.
For example, a focus group can be marketing of the Agency through dedicated it platforms or independently. And costs will continue to vary significantly. There is no universal recipe. All depends on the capabilities of the team and its international relations. Due to the fact that our company is a Telecom operator, we need to obtain a license in each country of operation.
Thats why our market entry in a new country begins not only with marketing but also with resolving a number of legal issues. GetIntent is an international company with its own programmatic technology procurements, Internet advertising. We founded it in 2012 in Moscow. GetIntent was the only Russian ad tech company that during the crisis period in 2014 made a strategic decision to go abroad and not afraid of high competition on the biggest advertising market in the world – in the United States. There the market size of programmatic advertising in 2016 will be about $24 billion, and in Russia, according to various estimates, from 6 to 6.5 billion rubles.
In the summer of 2014 we opened an office in new York. To find the first clients turned out to be quite easy, “learned about” the peculiarity of the US market. Actual technology there is one company out of ten, the other 9 are simply repackaging someone elses technology and sales. And we caught the wave, offering the market an honest product – a proprietary technology for the automated purchasing of advertising. In addition, GetIntent offered the most transparent model in the format of self-sevice, that is, self-management of advertising campaigns.
In 2015, revenue was $6.9 million, for a year and a half we hooked up more than 50 U.S. clients, and has licensed its technology major ad tech companies in the United States. Now we have 85 clients in the United States. Revenue for 2016 is $18 million and increased by 2.6 times compared to the year 2015.This growth was made possible for several reasons: Business GetIntent characterized by extremely high retention rate of customers — over 90%, customer churn is virtually no. The company is constantly developing its products, improves the quality of customer service.
Therefore, in addition to the influx of new customers, quickly grow old. As a result, revenues from clients who started working with the company in 2015, has increased more than two times in 2016. ? In 2015, industry leaders was evident trend in demand for video advertising. Therefore we invested in the development of the video platform in 2015, has made its own important functions. Viewability viewability tracking and optimization.
That video provided more than 50% of revenues in 2016. ? The company has managed to build an effective sales system and to reduce the cycle of the transaction, due to the fact that I found my target market — technology advertising agencies that already have expertise in programmatic. Such agencies tend to use all the most advanced programmatic technology, and understand the value of all the functions that we offer. Therefore, the date of signing of the contract is significantly reduced, compared to those companies that have no experience with programmatic. Summarize all the history a check-list from the Agency ABD that you must have for going abroad.
A turnover of 100+ million per year. As can be seen from the experience of the companies, $250 million is the average budget for a new solution to a new market. Therefore, either the company should be external funding for the project, its turnover of 100 million rubles a year.
This will help safely (i.e. without cash shortages) to enter the world market, to conduct experiments to clarify needs, finding partners, marketing, prepare and localize products and documentation, and wait for the addiction of the market to your decision. The product, adapted to the expectations of local clients. In new markets might require rework solutions for the needs and expectations of local customers. To predict the need and to lay the time for completion can be in the process of communicating with potential partners, when you find out their opinions about the future of your product.
But even before the expansion, make sure that the solutions your company are stable is a prerequisite for success in a new market. In particular, the stability affects the speed and efficiency of building a partner sales channel. If the solution is unstable, it is better to wait – at least due to the extra time and cost, because frequent changes to the product will require continuous learning partners.
As a maximum, you can spoil your reputation and close this market. Adapted to the mentality of the buyers of the sales process. There should exist a formal and intuitive sales process that adapts partner with the manufacturer.
The first “buy” decision partner, then he promotes it to their Resellers and customers. Our advice here. Initially to build relationships in a fully transparent manner, that is to create rules and strictly monitor compliance on both sides. Then feedback from the market will always be available, the partner will get that filtered to give ready feedback, and even to advise.
Partners need to provide their vision of the market and the development process, but if there is no clear development strategy from the manufacturer, no partner it will not give. It may be a single sale, but expect a multiple of annual growth do not have to. Pool right partners. Depending on the business culture in the country from the manufacturer can be a partner of master distributor responsible for all sales. Or more responsible for B2B, B2C and OEM.
It is important to understand that the partner will promote the decision, if the terms of cooperation will have to have, as corny as it may sound. For this it is necessary to correctly determine the local price, channel depth, channel policy (discounts to various partners), marketing strategy. All of this must come from the vendor and clearly performed partner. The willingness to wait 12-18 months.
And not just wait a “mold” of partner your business partner interested in the success of your product in the country. The partner must come up with the initiative to adapt development strategies to the realities of the market, price offers, generating localized content. It is important to fully support partner in the process as he develops a solution on the market. One of the incentive factors might be the promotion budget which youll spend together with a partner.
It is necessary to Supplement the budget of the partner, well if in a ratio of 50 to 50, and set a number of conditions to reduce costs on both sides. For example, the price upper limit is for buying advertising in the media and the presence of the Manager in key activities.