Marketing in the Global Marketplace International Lessons Learned

1. Marketing in the Global Marketplace International Lessons Learned SC International Trade Conference Charleston Place * Charleston, SC May 27, 2008 Dana M. Hicks Managing Director Perlitz Strategy Group - Americas

2. International Lessons Learned • Target Market Research • Channels to Market • Product Adaptation • Product Literature • Product Pricing • Travel Tips

3. Target Market Research • Target countries that “Buy American” • Confirm market for your product exists • Estimate market size and growth • Identify & quantify market segments • Identify major competitors • Profile each major competitor • Determine & articulate the competitive advantage(s) for your product or service

4. Attractive Target Markets • NAFTA Countries – Canada & Mexico • Close proximity, easily reachable • Reliable supply chains • Same time zones as USA • Free Trade Agreement (FTA) Markets • Existing – Australia, Bahrain, Canada, DR-CAFTA, Chile, Israel, Jordan, Mexico, Morocco, Oman, South Korea • Pending – Columbia, Panama, Peru, South Korea

5. Channels to Market • Identify feasible channels to market • Agent, Rep, Distributor, SI, VAR, Other • Define criteria for desirable channels • Identify & profile top potential partners • Consider US Dept of Commerce Gold Key Service and partner search • Use in-country SC Dept of Commerce trade specialists where available • Canada, Germany-Western Europe, China, Japan

6. Product Adaptation & Packaging • Local market approvals – CSA, IEC, EU • Voltage & frequency for target market • Name appropriate in local language • Multilingual product labels and packaging • Metric dimensions, weights, units • Minimize size & weight of packaging • “Green” biodegradable packaging

7. Product Literature • Point of purchase displays and signage in local language • List metric dimensions and weights • Design/layout brochures & flyers so they can be printed locally • Leave ample “blank space” in original English literature for translation

8. Product Pricing & Sales • Benchmark in-country end user pricing • Cost plus transfer pricing if shipping to a company subsidiary • Optimize supply chain to reduce landed cost and boost margins • Pros and cons of “ex-factory” sales • Sell and invoice in U.S.$ if possible

9. Travel Tips • Maintain low profile • No college or pro sports team wear • No flashy jewelry • No big, obtrusive luggage tags • Learn a few words of local language • Learn some facts about your destination’s culture & history • Know & understand currency exchange rates • Know local tipping practices

10. S.C. International Trade Coalition Includes federal, state, and private organizations involved in promoting international trade. S.C. Department of Commerce http://www.SCcommerce.com U.S. Commercial Service of the U.S. DOC www.export.gov S.C. State Ports Authority http://www.port-of-charleston.com S.C. Department of Agriculture http://www.scda.state.sc.us S.C. Forestry Commission http://www.state.sc.us/forest/ S.C. World Trade Center, Charleston http://www.scwtc.org The Export Consortium http://www.exportconsortium.com S.C. District Export Council http://www.scdec.org City of Columbia Office of Economic Development http://www.columbiascdevelopment.com

11. Thank YouMerci, Danke Schön,Muchas Gracias, Grazie Mille,Domo Arigato, Xie Xie NiQuestions? Dana M. Hicks Perlitz Strategy Group - Americas dana.hicks@perlitz.com www.perlitz.comwww.pipelineplanner.com

12. International Trade Impact on SC • $16.56 billion in exports in 2007 • Ranked 9th among 50 states • In 2007, SC’s Largest Export Markets: Germany, Canada, Mexico, UK, China • Germany replaced Canada as #1 export market for SC exports in 2007 • From 2006 to 2007 SC’s fastest growing markets were in the Western EU, specifically Germany, Belgium, France, Spain, Sweden, and Switzerland • Other fast growing markets for SC exports: Argentina, Brazil, Chile, Australia, South Africa, UAE

13. Impact of Trade on SC • SC Economy Increasingly Diverse • Leading Export Sectors in 2007: vehicles, machinery, plastics, electrical machinery, rubber, paper and paperboard, organic chemicals, optics and medical equipment, wood pulp, and manmade staple fibers • Export-supported jobs in 2007 accounted for 9% of SC’s total private sector employment • Average national percentage is 7.2%. • Ranks 14th in number of jobs linked to exports

14. Importance of Exports to SC Economy • Exports mean higher wages for SC workers • Export-related jobs pay wages that are 13-16% higher than other jobs. • In the high-tech field, hourly earnings are 34% higher than the national average. • Exports mean growth in SC jobs & job security • U.S. export-related jobs have grown several times faster than total employment. • Exports have accounted for the majority of U.S. manufacturing jobs created in the last few years.

15. U.S. Commercial Service • Worldwide network • 105 Export Assistance Centers throughout the U.S. • Charleston, Columbia, and Greenville, SC. • 157 offices in 84 countries • One-on-One Long Term Export Counseling 95% of your potential customers live outside the United States

16. SC Office Columbia International Trade Division 1201 Main Street, Suite 1600 Columbia, SC 29201-3200 Telephone: 803.737.0400 Overseas Offices Toronto, Canada Munich, Germany Yokohama, Japan Shanghai China S.C. Dept. of Commerce www.SCcommerce.com

17. South Carolina Our mission: Supply specialized expertise to small and medium-sized businesses that are interested in exporting. Encourage Small Business Exporters to take advantage of Federal, State and Local resources. District Export Councils (DECs) are organizations of leaders from the local business community, appointed by successive U.S. Secretaries of Commerce, whose knowledge of international business provides a source of professional advice for local firms.