Global business expansion considerations

Expanding your business to the global stage has certain key considerations. This is the view of Mr. Justin Letschert the CEO of Union-Swiss. Letschert was the speaker that the University of Stellenbosch Business School (USB) business breakfast gathering held on 27 June.

The first thing businesses must realize is that expansion to global markets can not be exclusively done by just starting a new export division. The experts, who established and managed the business and brands on the local market, must be involved in the executing of the strategies for entering global markets.

South African brands may have brand equity on the local market, but on the global stage is just another product. This implies that entering a new market is launching this new product form scratch.

Government regulation and duties, capital expenditure (cost) and the lack of established networks are some of the main difficulties in entering new global markets.

Letschert indicated that a simple calculation can determine the most viable international markets. By adding a country’s GDP/ Capita ranking and the population rankings the possible best export markets can be identified. This figure gives a more accurate indication of potential markets. The top 10 countries on this list are USA, Japan, Germany, UK, France, Italy, Canada, Spain, South Korea, Russia.

The cost of the media in the specific country as well as the duties and regulations must be taken in consideration when evaluation potential new international markets. Language and counterfeit problems must also be taken into consideration when evaluating proposed new markets.

Letschert emphasized the importance of effective distributors in foreign countries. These distributors must be able to communicate and deliver what they are hired for.

Letschert further added that to succeed in the global business area you must out-think the opposition. The geographical and other practical drawbacks imply that you cannot out-do the opposition, you must out-think them.

You must conduct your business in a more professional manner than the first world standards. The reason for this is because the foreign market participants have preconceived negative ideas about (South) African businesses. You must give them no reason to believe or confirm their preconceived ideas.

Letschert concluded by quoting Mr. Koos Bekker form Naspers. Bekker once said that it is difficult for first world countries to do business in China. South Africa is not from the first world which gives us a business advantage. South African tenacity is your biggest advantage when we compete and enter new global markets.

Marketers must take holistic view at the brand experience

Differentiation is becoming harder every year with products and services commoditizing, consumers zapping away the ads, and an economic downturn reducing marketing budgets by an average 3%.

Smart marketers respond by taking a holistic view at the total brand experience. Apple, for instance, took the portable music market by storm by offering an exclusive service -- iTunes -- in combination with its MP3 player. Verizon improved its Web site with interaction optimization tools and raised its conversion rates by 36%. What are other marketers doing to differentiate their customer experience?

Take a business-driven approach.

Where is the money in improving the experience? Recent research from Forrester shows that good customer experience correlates highly to loyalty -- especially when it comes to consumers' plans for making additional purchases. Marketers in any industry can justify their customer experience investments with the savings they generate in client acquisition and the additional revenues from upselling and cross-selling.

Develop online communities.

As ever more consumers become active in social networks like Facebook, marketers have started to develop branded communities to engage with clients and non-clients. A successful community is not a fortunate accident but the result of careful strategic planning, an orchestrated launch involving the firm's brand advocates, and ongoing interaction with the community members by a dedicated social media team.

Turn employees into brand advocates.

Bad service is the No. 1 reason why consumers switch brands. To motivate and empower frontline staff to live and breathe the brand values, marketers develop employee brand advocacy programs improving their knowledge, attitudes, and behaviors. Restaurant chain Garden Fresh, for instance, has empowered its staff to make any on-the-spot decision to improve client satisfaction. As a result, the number of loyal clients has been increasing by almost 50% each year since the program launched.

Inflation and economic uncertainty are hitting the European wine markets

Inflation and economic uncertainty is hitting consumer markets across Europe, with retailers telling wine companies that value is more important to shoppers than ever.

But Chris Losh points out that even during the good times, the wine sector has been too price-led, and with consumers now tightening their belts it will be that much harder for wine companies to push through necessary price increases.

How quickly the consumer trend has shifted from saving the planet to saving the pennies! Whereas the era-defining phrase for ‘06 and ‘07 was ‘carbon footprint’, for the last six months economists can perm any two from ‘credit crunch’, ‘housing crash’, ‘oil price’ and ‘energy crisis’ and still have metaphorical change left over for ‘inflationary pressure’.

Wine marketers must take note of these changes in the market. Brand strategies must focus on value and sustainability as well as brand leveraging strategies

Most popular global wine brands

Gallo is the most popular global brand with Hardy's of Australia being the runner up, with USA owning the maximum Top 100 wine brands, though no brand has made it to the top 10 slots in the spirit and wine category, declares an annual independent survey.

Compiled by Intangible Business, the report titled 'The Power 100- The World's Most Powerful Spirits and Wine Brands 2008' has evaluated over 10,000 brands across the world.

The brand numbering is based on the assessment of both the financial contribution of each brand alongside their strength in the eyes of the consumer.

Smirnoff has been adjudged as the top brand overall followed by Johnny Walker.

Intangible Business is the world's leading independent brand valuation consultancy, specialising in the valuation and development of brands. It has valued and advised some of the world's biggest brands from a management, legal and financial point of view.

The study uses a robust methodology which takes into account the consumer's perception of brand strength and its financial performance. A panel of leading international drinks experts score each brand on a variety of measures and these scores are combined with hard volume data to create a league table of the most powerful international drinks brands in the world.

Here are the wine brands that find a spot in the Top 100 spirits and wine brands:

1. Gallo Gallo USA (18)

2. Hardy's Constellation Australia (19)

3. Concha Y Toro Concha Y Toro Chile (21)

4. Robert Mondavi Constellation USA (36)

5. Yellow Tail Casella Wines Australia (38)

6. Beringer Fosters USA (44)

7. Jacobs Creek Pernod Ricard Australia (47)

8. Sutter Home Trinchero Family Est. USA (52)

9. Lindemans Foster Australia (60)

10. Blossom Hills Diageo USA (63)

11. Wolf Blass Fosters Australia (75)

12. Kendall-Jackson Kendall-Jackson USA (82)

13. Banrock Station Hardy Wine Co. USA (83)

14. Penfolds Fosters Australia (84)

15. Inglenook Robert Mondavi USA (86)

16. Torres Torres Spain (88)

17. Kumala Vincor Int. South Africa (98)

Chile, Spain and South Africa seem to be the party spoilers for the USA and Australia who have virtual brand monotony.

France may not enjoy the brand popularity in the still wine section but has a near monopoly in the sparkling wine sector with only Freixenet (49) and Martini (100) give some competition to Champagne brands.

Moet Chandon is the obvious king (14). Other brands enjoying a spot in the Top 100 Spirits and Wine Brands are Veuve Clicquot (26) also owned by LVMH. Other brands at the fag end of the ceremonial parade are Laurent Perrier (73), Piper Heidsieck (74), Mumm (76), Dom Perignon (79), Taittinger (91) and Nicolas Feuillatte (99).

How will the economic slowdown affect the global drinks market?

The global economic slowdown will affect all aspects of business. The global drink market will also be affected as consumers' priorities change.

In a report form Intangible Business they indicate that the current economic slowdown will inevitably impact the global drinks market but the extent of its impact remains unclear. Recent figures reveal that American consumers are already reducing their number of shopping trips as they begin to feel the pinch of an economic downturn.

This trend is likely to spread across the globe as consumers look for value rather than luxury and there will be a decrease in the demand for premium products. The USA is a key market for many of the brands in the Power 100 and they will surely feel the pressure of an economic slowdown. Yet despite the threat of a global economic demise, the drinks industry has a history of remaining relatively buoyant in times of economic decline.

Business Golf Etiquette

Business Golf etiquette has become a very important aspect of effective social business skills. In South Africa many business relationships are formed on the Golf Course. But unfortunately many potential business relationships were destroyed by a lack of Business Golf etiquette.

When you are hosting or invited to a business golf date, take advantage of this opportunity to project a positive image of yourself by demonstrating proper Business Golf Etiquette.

Follow these Business Golf Etiquette Tips to a tee and not only will you and your partner enjoy the day, you will also stand out as being polished, professional and trustworthy.

Scout’s Motto

Be prepared. Arrive early to get organized and to practice. Plan ahead and identify the outcomes you want from the day. These goals are just as important as any other business meeting. Prepare sound bites for your company or yourself that you can draw on if needed.

Don’t be green about the greens

Never attend a golf event for business purposes if you don’t first make the effort to learn the basic game and the lingo. You’ll only embarrass and alienate yourself and your company. Take lessons or attend a clinic.

Behave yourself

The links is not the place for you to get in touch with your inner child. No tantrums, throwing of clubs, foot stamping, swearing, whining, making excuses or indulging in other demonstrations of poor sportsmanship. Conversely, when you are playing well, be gracious. Don’t interpret the relaxed environment as an opportunity to behave in a manner unsuitable for the office, such as making jokes, gestures or remarks that may be considered by others as offensive.

Business or birdie

There is a time and place for everything. Spend the day building rapport and developing relationships. Only talk business if your guest brings it up first. Otherwise, save it for the 19th hole.

You Got Game

Don’t compromise your credibility by playing badly unless, of course, you are an Oscar winning actor. Don’t gloat when you are playing well, instead, turn it into a compliment, “You must be bringing me luck, this is my best game this year!” Sincerely compliment specific aspects of your partner’s game. Never coach or give unsolicited advice. If you are a beginner, warn your partner about your skill level and make sure they are o.k. with it.

Be an Etiquette Eagle

1. No cell phones / pagers/ PDA’s.
2. Always be ready for the next shot – don’t make others wait unnecessarily.
3. Never brag or complain about the cost of membership or green fees.
4. Take care of the course, remove your tees, replace kicked-up turf and rake after a bunker shot.
5. Don’t walk into or cast shadows over someone’s putting line.
6. Maintain a safe golf cart speed.
7. Get out of the cart whenever your opponent does.
8. Dress appropriately. If in doubt, call the club.
9. No cheating or creative scorekeeping.
10. Don’t distract other golfers by loud talking, laughing, and crinkling food wrappers.

Don’t let your manners be your handicap. Ace this opportunity to make a good impression and create shared memories that will enhance your business relationships and increase your bottom line.

 

Zuma- Africa's most influential person -Time Magazine

 Time Magazine has revealed its list of the 100 most influential people in the world in 2008, in which it “recognises the men and women whose power, talent or moral example is transforming the world”.  

The list is divided into five subsections - Leaders And Revolutionaries, Builders And Titans, Artists And Entertainers, Scientists And Thinkers and Heroes and Pioneers. 

South Africans Jacob Zuma (8^th) and Ocsar Pistorius (23^rd) made this list. Jacob Zuma were judged to be the most influential person from Africa while Oscar Pistorius were deemed to be the most influential sport person.  

The paralympic athlete, Oscar Pistorius, was deemed to be the 23^rd most influential person in the world and the most influential sportsperson in the world. Pistorius is the 3^rd most influential person in the Heroes and Pioneers subsection. Only Brad Pitt and Angelina Jolie, and Oprah Winfrey are deemed to be more influential than him.  

Jacob Zuma is deemed to be the most influential man in Africa and the 8^th most influential man in the world. The Dalai Lama, Vladimir Putin, Barack Obama, Hilary Clinton, John McCain, George W. Bush and the Chinese president Hu Jintao are judged to be more influential than Zuma.