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