Reaching a specific market

Discussion in 'International Business' started by PolyVerba Multilingual, Aug 8, 2019.

  1. PolyVerba Multilingual

    PolyVerba Multilingual UKBF Newcomer Free Member

    3 1
    Hi All,

    We are a business that provides Multilingual Sales & Marketing solutions to businesses looking to trade in new markets outside of the UK. We bridge the gap into these markets through a multilingual sales and marketing team. Essentially, we can establish a brand in a new country, take products/services to market and generate enough revenue for our clients that they can then invest in setting up fully in that country.

    The clients we've found and are now working with are thrilled with the service we offer and often say, they wouldn't have necessarily broken into these new markets because of the risk involved, had they not started working with us. We offer rolling monthly contracts for less than half the price of hiring one person to do this job for them, meaning risk is very low in comparison.

    Our problem is that we're struggling to reach businesses that need this service, yet we know there's lots of them out there. We of course know how to market, we do it for our clients, but in nearly all cases, a target audience is obvious. With ours, it is not, the clients we have vary in industry massively. We've done Google Ad words, we are all over social media, we do cold calling and utilise lead sites like Bark and Bidvine but to find clients who need our services is proving challenging.

    I've observed posts on here for the last few months and there are clearly some great business minds on here so I guess I'm reaching out to you guys to lean on your experience and ask if you can offer any advice that can help me solve this issue.

    Thank you for taking the time to read this.

    Regards

    Paul
     
    Posted: Aug 8, 2019 By: PolyVerba Multilingual Member since: Apr 12, 2019
    #1
  2. AllUpHere

    AllUpHere UKBF Ace Free Member

    3,109 1,123
    Do you have a marketing plan in place, or are you making it up as you go along (genuine question)?
     
    Posted: Aug 8, 2019 By: AllUpHere Member since: Jun 30, 2014
    #2
  3. PolyVerba Multilingual

    PolyVerba Multilingual UKBF Newcomer Free Member

    3 1
    In all honesty, while we plan for our clients....for ourselves, very much as we go
     
    Posted: Aug 8, 2019 By: PolyVerba Multilingual Member since: Apr 12, 2019
    #3
  4. billybob99

    billybob99 UKBF Regular Free Member

    1,291 312
    I was pretty much the same, literally making it up as I went.

    It was probably pot luck that I managed to scale to a team of 20 people and clients paying £10k a month retainers - then when it kind of all slows down you feel the squeeze and wish you had some sort of marketing plan.

    Probably best to get that sorted first.
     
    Posted: Aug 9, 2019 By: billybob99 Member since: Apr 23, 2013
    #4
  5. The Byre

    The Byre UKBF Ace Free Member

    9,154 3,612
    You really have to set aside a large part of your turnover for marketing. In some fields, this can be a larger share than your production costs.

    Here's an example - TV sound-bar. Let's build some really good active digital (HDMI input) sound-bar. 5.1 sound - complicated? No. The HDMI-to-analogue card will cost you just $8 in batches of 100. We have R&D of $10k - that's enough to build prototypes and let our pet technician try all sorts of designs for about one month and ideas to make our sound-bar better than the competition. He/she does this using off-the-shelf stuff bought here in the UK. At the same time, the buying dept. is souring the Interweb, looking for the right suppliers for speakers, amp units, cross-overs and HDMI-to-analogue cards.

    Two other things have to happen - we need to know what price to charge and we need a housing builder. Nice, sexy wooden housings are probably best built in-house and if we are already in the hi-fi business, we should have all that already set-up. So our set-up or origination costs can be about $15k or £13k.

    Our market research tells us that £399,- is a sweet spot, with another at £599,- for those that want something really good.

    So far, so good!

    For the sake of argument, I'll say the one has marginal production costs of £100 and the other of £150. We wholesale them for £240 and £360 net, so our gross mark-up is £140 and £210. In the first year of the product's life, we really have to put pretty much all of that into marketing, if we are to get that turkey off the ground. That's £150 build costs and £210 marketing costs per unit.

    Good and well-targeted marketing is not free!

    In your case, you will probably need to have trade-fair presence at several trade-fairs every year, a killer website, write actual physical letters to prospective clients and you may have to hit them again and again until they bite!

    You will also have to work the other side - I know the German market and Germans are VERY reluctant to buy British, especially after recent developments. In many technical fields, they regard UK products to be inferior and assume that they will be badly built. Also, German businesses are often reluctant to do business with UK companies because of the over-reliance (in German eyes) on debt. They perform the usual due diligence and see a mountain of debt and little or no equity - and assume that the company will probably fail soon, so it's best not to bother with them!

    You have to persuade them otherwise!
     
    Posted: Aug 9, 2019 By: The Byre Member since: Aug 13, 2013
    #5