46 MARCH 2016 Neil Gaught says unrealistic expectations can scuttle even the most robust food manufacturer’s export promise You’ve got all your ducks lined up. Your product is in place and ready to go. You’ve got a representative in Europe who promises to be your spokesperson in all the right places, and you’re expecting immediate responses from the marketplace. All your hard work is about to pay off, big time. Or is it? Nothing successful is easy to achieve, and there are plenty of snags along the way for the uninitiated. Getting into the four or fi ve top-of-mind brands based on a clearly articulated proposition in your particular market is where you NEED to be, but competing on price is not sustainable for New Zealand companies at the bottom of the world. One of the most important factors to consider is the need for ambassadors on the ground in the market you are targeting. If you or a trusted colleague can’t do it yourself, pick someone who completely understands and is committed to your company and its strategy. In Europe, particularly, I often strike company representatives who clearly work independently of the ‘Mothership’ and have distain for ‘head offi ce’. This lack of engagement around an agreed and well-rolled-out strategy can lead to reputational issues… something you really don’t need. One of the issues I tend to encounter with New Zealand exporters is unrealistic expectation. Hyped-up entrepreneurs arrive in Europe on the back of massive success at home or around Australasia, and expect the same success here. It has to be taken on board that there are at least 10 times more competitors working in your genre here (and perhaps hundreds or thousands), and that Europe doesn’t share a single culture and language. What works in one country may not in another, even if it’s right next door. It’s also completely unrealistic to land at Heathrow with fi ve thousand pounds in your back pocket for a full-on marketing campaign. Good budgets are essential and, while social media now offers free access to markets, nothing comes without a price. How you use your money is almost as important as how much you have. I am always incredulous, therefore, that New Zealand companies don’t get together and pool resources. Sharing niche networks, knowledge and experience is the single most obvious benefi t of living at the bottom of the world, but a lot of food manufacturing sectors appear to be self-serving and self-centred. The wine industry is an example – many of the companies understand exactly what they produce and who for, and many are nailing it – but the industry itself is tarred with back-biting and mistrust. It’s not hard to find great Kiwi brands doing well overseas…Villa Maria and Comvita to name two. They do well because they punch well above their weight, understand the values and preferences of their audiences, articulate the brand well and consistently understand that a promise delivered builds a positive reputation. As a result, they attract top staff, marketers and loyal customers. But you’d have to say those ‘great ones’ haven’t been as numerous lately. Ask yourself, what’s new? Who’s new? New Zealand is one of the world’s successful economies, but new ‘hotties’ like Ghana, with economic growth hitting 16-17% yearly, represent a new competitive threat that Kiwi food manufacturers have to be fearful of. I come across plenty of young companies high on Australasian success wanting to enter lucrative European markets to make a quick buck. They need time to learn that for most, exporting is an investment and it’s usually a long-time thing. Neil Gaught is a Beachhead Adviser for New Zealand Trade and Enterprise based in London, and specialises in defi ning and developing reputation-building positioning strategies for exporters around the world. He lived in New Zealand for six years until 2009, working with some of the country’s top corporate and public-sector bodies. neilgaught.com NEIL’S TIPS: • Do your homework - ask the right people the right questions at all levels in your target market to understand who they are and what they actually want. • Understand completely who your competitors are, how they are positioned and how they position themselves in the marketplace . • Be open, active and energetic – join/build networks, collaborate, share, encourage and engage at home and in your export market. L A S T W O R D Neil Gaught
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