Hamman Marketing Associates • PO Box 3852 • Johnson City, TN 37602-3852

+1 (423) 467-9864 • Skype: hammanmarketing

Ten Critical Questions Before Entering the US MarketKnow the Risks and Rewards

Knowing the risks and rewards of selling in the US market before you start can save you time and money and make the difference between success and failure. The rewards are obvious: you may capture new sales opportunities, gain advantages over the US competition and improve your bottom line profits overall. However, success is not guaranteed. Failing to understand and comply with the overwhelming rules and regulations can be catastrophic.

Here are 10 important questions you need to answer before you act:

1. What are the risks involved in selling products and services in the US? The US market is enormous. It is a mature market with many entrenched market leaders. To secure a niche for your products with US buyers requires a unique marketing strategy and a considerable investment of time, resources, and money. Before you begin the challenging and tedious entry process, you must calculate its impact on your current domestic business.

2. What are the financial considerations? The costs of physically moving your product to the US are considerable. The investment includes the commitment of additional personnel and capacity as well as the enormous brokerage, insurance, warehousing, reshipping, and sales & marketing costs involved. Without sufficient financial resources, even the best products are at a disadvantage.

3. What are the management considerations?Does your company have solid reasons for pursuing the US market? Is management committed to allocating the necessary resources for a successful entry? Management’s desire to travel at company expense is not motivation enough to risk the company’s future—nor is finding a quick fix for cash flow difficulties by dumping excess inventory, or hoping for a quick jump in sales. Understand that successfully competing in the US market requires taking a long view that can tax your dedication and resources. It can be a fabulous opportunity, but make sure that your management’s motivation and commitment are sincerely in the company’s best interest.

Hamman Marketing Associates • PO Box 3852 • Johnson City, TN 37602-3852

+1 (423) 467-9864 • Skype: hammanmarketing

4. What human resource investment is required? The export business is a highly specialized field that requires a dedicated person within your company who can manage it on a day-to-day basis. Is there someone with the proper skill set already within your organization, or will you need an experienced consultant? Your human resources are just as important as your financial investment to assure the greatest opportunity for success.

5. What are the operational considerations? A successful US market entry can strain your existing production capacity. Are you equipped to handle an influx of US orders without disrupting your domestic business? Will there be additional production costs? Are there product or package design modifications required? How will those modifications impact your current production process and capabilities?

6. What do you know about your product’s US trade channels? Every US product has its own distribution channel. Often there are several alternative channels available, and making the right choice for your product can be confusing. It is vital that you understand channels, mark-up, and profit expectations for each distribution layer. For example, in the US food business, there are importers, brokers, distributors, and sales representatives involved in getting your products onto the grocery shelves, and each group has different expectations and rules about what will be required of your company in order to support sales of your brand at the store level. Whatever your product category, make sure you understand what will be required to go to market.

7. What are the regulatory compliance issues? The Food and Drug Administration (FDA) sets the standards for food and medicine manufactured in the US and around the world. The FDA also mandates very specific ingredient, packaging and labeling requirements. You may be required to register your factory and provide prior shipment notifications. The FDA, working in conjunction with the US Customs Service and other regulatory organizations, make certain that shipments are inspected upon arrival at US ports. A misstep in packaging, labeling, listing ingredients, or shipment registration and notification could lead to a refused shipment, resulting in enormous financial losses and potential prosecution. Make sure you understand how your products are affected by these organizations.

Hamman Marketing Associates • PO Box 3852 • Johnson City, TN 37602-3852

+1 (423) 467-9864 • Skype: hammanmarketing

8. Who will carry your banner into the battle for a share of the US Market?Failing to invest in sales support within the US is a critical error. It is a common fallacy that buyers will simply stumble upon your product and immediately place a purchase order with a Letter of Credit. Any market share you acquire will have to be won away from your competition, which is not an easy task. To avoid pitfalls and sure failure, it is essential to retain the services of a qualified sales specialist for your industry niche. We can help you find experienced professionals who will become an integral part of your US marketing plans.

9. How will you support your product in the US market? Comprehensive US support for your products occurs on many levels. You need business-to-business (B to B) and business-to-consumer (B to C) advertising, public relations, trade and consumer publication exposure, trade show participation, and often, trade missions to bring prospective US buyers to your factory to learn first hand about your products and production capabilities.

10. What is the next step to sell your product in the US market?Knowing beforehand what it takes to enter the US market—that it requires patience, extensive financial and human resource commitments, and competent US-based sales help is a good start in the right direction. Once you have answered the above questions and are confident you want to proceed, take the next important step toward the US market by contacting Hamman Marketing and speaking to a USMEP professional: Call us at +1 (423) 467-9864, or contact us via email at: info@help2market.us, or via Skype by adding hammanmarketing to your contact list.