Needle in the haystack Market research techniques

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Needle in the haystack?Market research techniques

• Wade Merritt
• Maine International Trade Center
• September 27, 2007

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What are we talking about?

• Researching international markets, specifically
  to
• Identify most likely markets
• Determine competition
• Identify potential customers
• Specify market segments
• Establish price

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Keys to successful research

• Know what youre talking about
• Whats your product?
• Who are you selling to in existing markets?
• Look for answers to specific questions
• But dont always expect specific answers
• Not everything can be found on the Internet

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Four steps

• Classify your product
• International trade statistics
• Market information, including duties
• Identifying contacts

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Step 1 Identification Classification

• Identify and classify your product
• Youd be surprised how many people havent done
  this what is it?
• Harmonized System/Schedule B numbers
• Not the same as SIC codes!
• Statistical resources often depend on this and
  it helps those of us in trade services help you

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Classification

• Harmonized (import) and Schedule B (export) are
  similar but not the same
• www.census.gov/foreign-trade/schedules/b
• dataweb.usitc.gov/scripts/tariff2006.asp
• rulings.cbp.gov

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Step 2 Using statistics

• Two questions
• Where is my product being sold to?
• Where is my product being sold from?
• WISERtrade
• www.wisertrade.org (need password)
• Provides numerous international trade databases
• UN Comtrade
• unstats.un.org/unsd/comtrade
• Access to international trade flows between third
  countries
• Strategis
• strategis.ic.gc.ca
• Canadian trade data

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Step 3 Market information

• US Department of Commerce
• www.export.gov
• US Department of Agriculture
• www.fas.usda.gov

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Online Federal resources

• Country commercial guides (CCG)
• Broad overview of national economy
• Industry sector analysis (ISA)
• Broad overview of particular sector
• Includes list of major contacts, publications,
  etc.
• Not all industries for all countries
• International market insight (IMI)
• Usually focused on subsector, national region, or
  specific opportunity

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Online Federal resources

• Attaché reports
• Similar to an ISA, but for agriculture (includes
  food and some forest products)
• Foreign agricultural import requirements (FAIRS)
  reports
• No analogue at Commerce, but a comprehensive
  review for agricultural products

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Other sources of information

• Industry associations
• As common in foreign markets
• Often have commissioned research on their sectors
• Membership lists
• Industry publications
• Trade journals
• Industry association publications
• Foreign government publications
• Strategis, TradeNZ, Austrade

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Step 4 Identifying contacts

• Internet resources
• Strategis (Canada strategis.ic.gc.ca)
• iCRIQ (Quebec only www.icriq.com)
• Kompass (Europe/Worldwide www.kompass.com)
• Europages (Europe www.europages.com)
• Thomas Register (Worldwide www.thomasregister.co
  m)
• AccessAsia (Asia www.accessasia.com)

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Other resources

• US Department of Commerce
• www.export.gov
• US Department of Agriculture
• www.fas.usda.gov
• Private consultants
• State trade offices
• Tread lightly and call us first.

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Putting it all together

• (a walkthrough)

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Live Lobster

• Leads came in from Boston Seafood Show
• Industry publications, other suggestions
• EU, Canada, Asia
• States top export markets
• Canada, Italy, France

First step?
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Classify your product whats the HS code?
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Next?
Where are similar products going already? (or,
how much is going where?)
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Use trade statistics to identify likely markets
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Canada
Italy
Korea
France declining, but good potential Canada
different animal.
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Identify relevant market research export.gov!
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Determine duty/tax rate via export.gov.
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Find your potential clients via Kompass (or
online)and do your thing!
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Things to remember

• Figure out your HS code as soon as you can it
  helps all of us!
• Remember its not just duties and taxes look out
  for regulations as well.
• E-mail is great but nothing beats a phone call
  or face-to-face
• Do your due diligence whos your buyer?

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Maine International Trade Center

• 511 Congress Street
• Portland, ME 04101
• [phone]
• merritt_at_mitc.com
• www.mitc.com