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Food manufacturer – Export Assessment
AGERON analyzed current situation of the company on the national market (structure of employment, financing, production, quality and team management systems, technological development etc.), diagnosed its competitive position (among others advantages of the product offer, structure of the sector and competition, appropriate distribution channels, quality of marketing tools applied, customers segmentation) and the state of macro environment.
Export potential of the company was assessed based on collected data. Diagnosis was very positive for the client, although weak points were also indicated; they have to be improved in order to limit risks related to entering foreign markets with a wide offer. Nevertheless, export potential was estimated high enough to open the doors to export onto many markets, including the more difficult, namely further ones.
Based on Export Assessment’s activities and tools of strategic management applied in this module, export strategy was formulated – recommendations included diversification of export markets in order to fully use export potential of the company and limit risk related to entering just one market.
All the conclusions from Export Assessment were used by AGERON to formulate Export Development Plan for the company, which became a base for client applying for the programme ‘Passport to Export’.
Food manufacturer – Funding Monitor
Financing is the main challenge in case of such wide export activities (10 markets, 15 promotional trips abroad, production of information materials and obtaining international quality certificates). Project for the Labinscy company was financed from the European Union’s funds within Innovative Economy Operational Programme 2007-2013, Action 6.1 ‘Passport to Export’.
Obtaining financing was of key importance. Export Development Plan written by AGERON had to reliably indicate export potential of the Labinscy company and underline the best justified activities, worth financing. Application for financing (written together with the company handling settling applications for the European Union’s fund) had to be correct both in the formal and content aspect. Applying for financing was successful and resulted in client signing agreement with the Wielkopolska Agency for Enterprise Development which carries out Action 6.1 for the Ministry of Regional Development.
While implementing project (expected to be completed in the middle of 2015) AGERON continuously makes sure to fulfill formal criteria typical of the Union’s programmes. In dynamic business reality it might be a challenge to adjust project to our needs. Applications, annexes, changes in schedules are everyday reality of the project, thanks to which AGERON gains more experience in administrative support for entrepreneurs acting within Union’s financing of export activities.
Food manufacturer – Market Selector
In line with export markets diversification strategy set in the Export Assessment module, Market Selector aimed at finding a few markets with different features.
The most attractive mature markets could be found in Western Europe. Southern-Western European markets turned out to be interesting as they are less saturated than Polish market in terms of competition; additionally they are important due to geographic proximity. The list of markets was completed with Middle Eastern markets, where the demand for food products is still significant, which is related also to a big number of consumers from Europe and US living there.
Eventually client was advised to expand to 10 foreign markets. We recommended also the most suitable promotional tools for these markets – the most important ones included European food products fairs, but also brand fairs, visited mainly by the commercial chains; economic missions on each market, obtaining certificates needed on selected markets and producing promotional materials dedicated to each market as well as adjusting website to foreign markets’ recipients’ needs.