Author: originals

The Foodeshow, the first international meeting for all actors of the food industry

Les opérateurs du secteur de l’industrie agroalimentaire ont désormais leur rendez-vous virtuel ! En effet, The FoodEshow, premier salon international virtuel du secteur tiendra sa première édition les 8 et 9 septembre 2020.

La pandémie du Covid-19 a changé le monde impactant profondément les économies et la manière de collaborer. The FoodEshow se veut le reflet de ce changement en rassemblant, sur une seule plateforme les acteurs de l’agro-industrie de plus de 50 pays du monde : acheteurs, importateurs, prestataires de services, agences gouvernementales, organismes de promotion et soutien aux innovations, marketeurs et communicants, etc. Les organisateurs du salon, le cabinet de conseil et mise en relation professionnelle wink Consulting et le cabinet de conseil en stratégie et management Greativa Consulting Group, attendent ainsi 200 exposants et 3.3000 participant.e.s du secteur.

Source : Food Magazine 

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Multicultural branding for global brands

Whenever you enter a fast-food chain restaurant anywhere in the world, the first impression you get is a strong presence of the host country’s culture. These global brands have marketing and promotions departments working around the clock to cater to multicultural markets’ needs. They always focus on multicultural branding. These strategies can take the form of local menu items or more authentic interior design. This type of branding is all about creating a shared value system with the nations where multinational companies operate. This article looks into the different techniques of Multicultural branding and its impacts.

Local Festivals

The best way to go about is to keep bringing up the local festivals. McDonald’s example will remain persistent throughout this article. McDonald’s UK has exclusive deals and offers when Christmas is around, or when the football season is in the air. The happy meal toys, local menus, and even the uniform of staff change according to festivals.

Local Culture

Similarly, all multinational companies adapt to connect with the local culture. Why would they go through all the trouble? It is because they could not afford to be alienated from the competition. The customer base needs to connect with a company to increase its sales. Global brands are always trying to invade new markets, which is made possible thanks to the multicultural branding. McDonald’s in Pakistan would change the uniform to the traditional dress of Shalwar Qameez in the Eid season. The effort to connect with the local culture pays off well for the global brands to retain the customers.

General Acceptability

The multinational brands must be accepted by the native people of a country where they operate. The multicultural branding raises the acceptability level among the masses. McDonald’s fast-food restaurant in India does not promote beef products, as it does not fit the Indian culture. Alternatively, when operating in Egypt, all doors, display areas, and packaging will be highlighted with the word Halal. It is an acceptable form of meat in the country. Global brands need to make themselves generally acceptable by the population to enhance their market share.

Care for the Community

Global brands are always working towards empowering the youth, local community, or even minorities. They usually run charities within the selected country. They also include words of the local language in their marketing campaigns. These are all efforts to show that the brand is supportive to the residents of the territory. When the global corporates engage with the community, it does not make them a foreigner anymore but a compassionate entity. McDonald’s Corporation sponsors local sports events and leagues to stand alongside the city. They also run educational charities, empowering the disabled, or endowing youth. The care for the community builds customer loyalty, which is excellent for business.

To conclude, Multinational branding is a doorway used by global companies to penetrate new markets and open new business horizons.

The importance of branding for sales

There are many ways to sell a product. The most effective way is to connect with customers’ emotions. Branding helps you build that connection. A customer is always attracted to the brands that share the same values with him or her. Those similar values, which are mutually shared by a brand and its end consumer, make a brand stand out. The emotional connection of shared interest is highlighted by branding.

Beat the Competition

Successful branding is all about creating recognition, sharing a story, forming an identity, and building loyalty. A repeat customer is a satisfied customer. You could have the best product quality, the finest articulation, or the most precise attention to details, but what makes your product stands out is branding. If a product has a better-perceived value than competitors, it sells well. When a company starts focusing on branding for sales, they try to be friends with their customers, better than the competitors are. Think of yourself as a buyer. When you are shopping for perfume, would you just pick any name out of the shelf? Would you choose the brand which is familiar to you and which has an association with you? The same goes for the major portion of end consumers, they prefer products with good branding.

Increase the Market Share

Branding is not about the logo, TV commercials, radio ads, Social Media campaigns, the tag line, or the corporate culture of the company. It is about ALL. Branding has to do with everything mentioned above to help you form a bonding with the consumer. Customer loyalty can be guided. When you start selling your products with clear branding, it provides credibility. A happy customer is a referral. The whole concept is about a vibe that a customer gets from your product. If your branding is focused on customers and not your products, you will increase the market share even in a saturated market. When out shopping, customers will remember your product in the vast aisles of supermarkets.

Softer for new products

Once the road works are completed through solid branding, you can launch new products with a lot of ease. Branding helps you in all the future endeavors of your company. Increasing product lines is crucial for the enhancement of sales. Once the branding process is effectively put in place, the newly introduced products will have to just follow the same pattern. The strategy for the move forward is laid down crystal clear. Thus, branding is vital for sales in one way or another.

Indulgent for Investors

Organizations are always in need of fresh investments to grow sales. Branding is all about creating a rapport for your enterprise. It provides you with a unique identity that is recognized by both customers, investors, and employees. The strong media presence and press appearances establish the position of a thought leader. By investing in its brand strategy, the company’s odds of securing funding go up significantly. Finally, it is not only about selecting catchy colors for your product; branding is the face of your company. It guides what people should feel about your organization and consequently increasing sales.

Imports crash in April, as expected

The country’s import decreased 62 per cent year-on-year to $1.95 billion in April as industrial production has almost come to a halt due to the ongoing shutdown to tackle the spread of the coronavirus.

The settlement of letters of credit (LCs), or generally known as import, also declined 53 per cent in April from a month earlier, when the figure stood at $4.17 billion, according to data from the central bank

Source; www.thedailystar.net

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Differentiation factors of the product internationally

Every business dreams of a Competitive edge! 

R&D works around the clock to differentiate its product from its competitors. When you are exporting and penetrating markets worldwide, it is a different ball game. It is crucial to distinguish your product on a shelf from related merchandise. If you want to gain exponential sales, the best way to go about is to identify the differentiation factors of the product. This understanding will help you trade effectively in the international markets.

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Product differentiation adds value to the business; it is the reason why your consumers will choose you over your competitors. The most acute factors that play a role while differentiating your product are listed below:

 

Unique merits

Every business needs a core competency, and similarly, all products need exclusive qualities. When you advertise your product, you ought to focus on the particular uniqueness of your merch. It could be a special ingredient, health benefit, organic nature, taste, durability, or design. If you have no unique advantage over your competitors after careful evaluation, you need to market it differently. Your service or after-sale services can play a critical role in international markets.

 

Origin

You can differentiate your business in the offshore markets by advertising the origin of the product. For example, if you are selling fruits, stressing on where they were produced, how those farms rank number one in the world, etc. People in the international marketplace love purchasing things from different origins; it gives them a sense of association. Especially if you have many immigrants in that targeted country from your home nation, they will be the first ones to buy. Everyone loves buying pasta that was made in Italy.

Price

Price is a critical differentiator factor of the product in the global markets. China plays big on this merit because they usually have economies of scale, and their production costs are economical. They always try to bid a price that is even cheaper than the locally produced merchandise of that country. Pricing below the generally accepted norm will make your product different. For that, you need to understand all the price points in place. Your research on the price trends will matter a lot when setting up your price in that demography.

 

 

Types

The most crucial differentiation factor for a product is knowing which type of differentiating you are encountering. There are three main kinds of the discussed topic. The horizontal level is when your quality and price are equal to the competition, and you need to differentiate by positioning your brand in the consumer’s mind based on their class. The other type, Vertical differentiation, is when your competitors have different prices, and you score your product with a brand name. The simple distinction, the third type, is where you have a horizontal level of rates and scope. Still, you market your products targeted on relationships or manufacturing standards. Once you fathom the types, you will know what you are going into.

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How to choose your distribution channel for export

Way to go, if you are already an exporter or aspiring to become one! Choosing the distribution channel could be a difficult decision, and it may not guarantee growth in your business. How to decide which distribution channel is the right fit for your export business is technical.

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There are numerous distribution channels for export business. You could be directly exporting, which means you approach your buyer viz a viz and close a deal to start your business proceedings. Many companies prefer dealing with the manufacturer or a supplier directly. Alternatively, you could choose the option of E-commerce. It is a simple way of approaching your potential buyers, and digital marketing is the best tool. If you don’t have a background in IT, freelance digital marketing experts could solve your problem. This service would help promote your product in the destined country. Alternatively, you could use the old-fashioned way of hiring an intermediary, a commission agent, who would contact the buyer and secure a deal for you. It is essential to consider all the options and come up with the best strategy. We will simplify the process for you.

 

 

Competitors

Firstly, you need to analyze the distribution channels of your competitors. People who are in the same business as you, and maybe more experienced, have a selected distribution channel. You must assess the effectiveness of that channel; evaluate the outcome and the experience. After the evaluation, you need to decide what’s best for your business and your clients. It is also important to note here that you do not blindly copy what your competitors are doing. The point we are making here is that you do your due diligence of research and analysis. The onus is on you to decide whether to go with the same channel or choose a similar one.

 

 

Cost

You need to consider the cost factor when deciding the distribution channel. If Indirect Exporting is proving expensive for you, you can always start approaching the clients with your efforts while remaining ethical. You cannot merely steal your commission agent’s client as it does not seem noble. However, if the client approaches you or you start using the Direct Export Channel, it might prove more beneficial for your business. Thus, the related costs to a distribution channel are the deciding factor.

 

Strategy

Once you are in the process of choosing which distribution channel is the go-to for your export business, it is best to create a strategic road map first. Here you will line out everything from start to end of the trading process. You could also judge from different options of E-commerce or direct/indirect selling, and rank the selections accordingly. Plan your progress with the help of advance-planning. You could also hire the services of an export consultant to rate your different plans. Still, the efficient way is to run a virtual analysis either by you or by an expert.

 

 

Change the channel

If your current network is not working out well for you, choose another. It is essential to keep assessing your business strategies and evolving with time. If your selected distribution channel for exports is not cost-effective or the results are not satisfactory, you could add another distribution-channel. Online marketing, for instance, could be added to your current choice. Alternatively, you could change the export channel altogether. After all, this is your business. You will always need to choose what’s looking best for your profits and customers.

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How to insure my products

The largest trade corporations were not built in a day – you need to start small. There is always a risk factor when you commence business activities, and you don’t want to lose the empire you had built whether it’s small or large. You will need appropriate coverage for the unforeseen fails over the course, such as theft and fire hazards. When you are importing or exporting any commodities, it should cover the damages of those products if reported by the client.

In some countries, it is required by the state to get the organizational assets insured. However, in other nations, it is not the law to have Insurance for your products. The developing countries’ businessmen don’t opt for a proper insurance plan; thus often suffer miserably in case of accidents. Whereas, the developed nations abide by the insurance regulations more promptly. The premium seems like a drop in the ocean when the insurance companies cover a considerable loss. Before diving into the Product insurance niche, it is crucial first to understand the business-related types of insurances briefly.

There are many distinct insurance types when it comes to business-related coverage. It starts with property insurance, which includes your office, factory area, or the selling outlets. Property insurance covers accidents like fire, short circuit, water damage, and several other mishaps. Vehicular insurances, the second type, is where the transporting trucks and cars are protected against God-forsaken road accident. The third insurance category is related to the employees, and it is called Compensation insurance for workers. Another classification of Indemnity is Professional Liability Insurance. This part is a mistake cover-up where your client was harmed in any way.

An interesting Insurance clause is Business Interruption Insurance amidst the crisis. This fragment is suited best for disasters like COVID19. If a company had this insurance plan and suffered from closure or needs rebuilding after the pandemic, the income loss may be covered. It could be included in the overall comprehensive Insurance Package of an organization. Furthermore, the insurance niche related to the products is interpreted as Product Liability Insurance

Product Liability Insurances provides treatment to the claims of third parties, that is to say, the damage reported by consumers. For instance, if your client used your merchandise and suffered from bodily harm, property loss, sickness or death. The food industry often suffers from problematic outcomes associated with food products. If your customer ate the ketchup sold by your company, and it causes diarrhea or vomiting, you would be held responsible for the consequences. Usually, the insurance providers also cover the legal proceedings related to the issue. There is always risk involved with your products having adverse effects on the client, and a third-party can raise complaints or even sue your organization.

Manufacturing fault or design disarray are the common grounds for the need for Insurance. If you left out any required information on the packaging, or the safety warnings were not correct, you can face the penalties. Any small business can purchase an insurance policy, but they should be covering legal costs too.

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Understand the payment instruments

There is no Free lunch in the corporate world, but a brutal circle of payments. A client cannot purchase “something for nothing,” and businesses are all about the circulation of payments. One owner pays for the services of his employees and the materials by vendors. The vendor makes that payment to another business entity, so on and so forth. Thus, the sweet round of economics is all paid up in a vicious ring.

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There are different types of payment instruments used by entrepreneurs, where some are incredibly modern ways like “cryptocurrency”. Since not all organizations are comfortable with this digital currency, we will be sharing old-school or rather classic payment instruments currently in practice. There are specific financial instruments, for example, letters of credit and bill of exchange, etc., and we will discuss those in detail.

The letter of credit

If we simply define the term, it is a document issued by a banking institution to a different bank. It is a documentary credit that is widely utilized in international trade to an exporter. The trustworthy bank provides a guarantee in order to pursue the trade business smoothly. LC assures an exporter that the buyer’s payment will be cleared on time and for the exact amount. If the seller finds out the payment is not made due to buyer’s inability, the bank will remain liable to clear the amount to the trader.

Telegraphic Transfer

TT is a medium of foreign remittance, which pays the funds via telegraphic transfers. It is basically a bank transfer in the electronic form from buyer to the seller through a bank. It is a relatively old process used by traders and has changed into an open account method in many countries. A trader in Egypt, for instance, pays his local bank and they will send a fax to their foreign branch or affiliate to clear the payments on a mentioned date. The exchange rate is quite suitable in the T/T way.

Payments against documents

Also known as Cash against Documents CAD, This payment term involves the Exporter instructing the bank to hand over the necessary documents to the importer after dues are cleared. CAD is used when the buyer completely pays the attached bank draft or bill of exchange. This method is easier for both sides of the trade and less expensive than a letter of credit. Document against payment or DAP sees clear instructions to the bank about dispatching those documents only when the importer clears the whole amount.

Clean Foreign Bill of Exchange

A foreign bill of exchange is a standard payment method in the import and export industry when there is established trust between both parties. Usually, trading business involves repetitive business with the same buyer or seller, and there is no risk involved in the transaction. If both accept the creditworthiness of each other, the Exporter prepares this document and sends it to the commercial bank in the buyer’s territory. The relevant documents are also sent with the payment. The importer will ultimately withdraw this financial instrument with ease.

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Good practices for accessing the food industry export market

We have listed the effective ways of accessing the export industry by a food exporter. Here is the kick-off.

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Market Needs

Once we have identified a target market to export our food products, It is crucial to grasp the conceptual desires of customers of that specific market niche. We will need to understand the emotional and practical needs of our audience to secure our volume of business. When a Food Industry’s Exporter wants to be successful while making the first impression in the international market, they identify the gaps.

Product Fits

Another good practice for accessing the food industry’s export market is to ensure that the value your product is offering must match the customer needs. If the competitors do not appropriately serve a targeted segment in that particular export market, it is your cue to jump right in and balance the product fit. Your product’s core value should match the effectiveness of the distribution channel. The supply chain is crucial in providing the right product fit to meet the precise demands of customers.

Food Safety Standards

There is a trend in the food industry’s export markets, which is on the rise in recent years, to favour the products that have food safety standards in place. Packaging Food Standards, for instance, are vital to ensure the safety and quality of the goods in transit. Furthermore, Labelling standards are required by law in many countries, and you might be exporting to one of those regulated countries. It is obligatory to label the food products to caution end consumers with any sensitivities they might have. Gluten, grain or other food allergies should be mentioned on the product to make its mark in the export industry.

Production Capacity

An excellent practice to access the food industry’s export market is to ensure you have the means and facilities to meet the increased demand. If your production capacity is not up to the mark or if you are not equipped to produce in bulk, you might have repercussions beyond imagination.

Budgeting

Budgeting is not the same when it deals with the food industry’s export market. An organization needs to consider the placement of extra staff, not only senior levels but junior levels as well. Extensive travelling comes into play for the initial research and period of exporting the food industry’s products. All in all, a company needs to be prepared financially to access the export market. An export business might take one year to flourish exponentially, and the firm needs to have advance budgeting for that period, based on estimates.

It is safe to assume that the food industry’s Exporter will not fail while accessing the international markets if he follows these effective practices. It starts at pinpointing the market needs and finding the right product fit. A business which considers food safety standards gains the best customer satisfaction. If a trader adopts these good practices, and he has the production capacity and appropriate budgeting; the sky is the limit.

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Three actions to maintain your position in international markets

A research conducted by Sandhya Keelery suggests that Indian Agribusiness has seen a burgeoning rise in recent years and foresaw a 350 billion USD business in 2022. Gone are the days when only farming was considered the Agricultural industry. In today’s world, Chemicals, Crop distribution, Machinery, Seeding, Retail sales and many more domains are all part of international exchanges.  

Do you wish to expand your consumer base?  You need to execute an efficient global strategy to achieve a higher amount of business and, consequently, maximizing your profit ratio. We have listed what international strategy to adopt for your business below:

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International Events

Seminars and Exhibitions take place throughout the year. Therefore, companies have to participate in it to maintain their visibility, contact with potential clients and their knowledge of the market. These dealings are crucial for establishing connections and build relations. The relationship you create with vendors, buyers, even competitors in those meetings, will scale up your business in the international market. The conferences also provide you with a chance to display your products as well. Seeds distribution, for example, is promoted with a display counter showcasing your products in the symposia. You get to attend sessions with consultants and enrol in training workshops as well. The atmosphere broadens your horizons and makes you think out of the box. The build-up to your company’s profile can play a significant role in your quest.

After-Sale Services:

You could have all the technological advancements in your pocket, the best organic techniques in your resume, but it could all go wasted. You need to retain your customers! Your buyers need to keep coming back for your products, and the best way to ensure the retention of your clients is After-Sale Services. The problem with selling internationally is that you are mostly dealing through online communication means, and the handling of customer complaints is not efficient. You could set up and offshore call center, or invest in a local presence, be it through the office or a service center. If you are dealing with Agri-Machinery, and your client faces a mechanical hazard, your prompt service will ensure the customer will find you again.

Data:

Information is the secret ingredient. Developed countries’ individuals need transparency and access to information. When you are marketing your product or selling it, you need to provide all the required information. If your business is food-related, you need to let out the info about calories, vitamins, minerals, expiration, and origin, etc. Furthermore, you must maintain data of your current clients or potential customers. You can do this by creating an Email Subscription list,  Telesales, and Memberships. Your record should contain the contact information, customer profile, purchase history with you. Harness the data and use it for introducing a new product or upselling your real commodity.

All in all, keeping your foot on Data, Services, and showcasing through the professional channel will make all your dreams come to life.

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