International Market Selection)Techniques and Analysis(

Dr. Mahmoud Fath-AllahEconomist, Foreign Trade Advisor

Trade Facilitation Project (TFP(

September 17-18, 2013

This study/report/brochure/booklet (specify) is made possible by the support of the American people through the U.S. Agency for international Development (USAID). The contents of this (specify) are the sole

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Contents

- International Market Selection.- Product/ Market expansion.- ITC Market Analysis Tools.

International Market Selection

Product-Market Expansion Grid

Market Penetration Strategy

When the product is in the current market, it can still grow. There are three major approaches to increasing current product's market share:

1. Encourage current customers to buy more. 2. Attract competitor’s customers. 3. Convince non-users to use the product.

Market-Development Strategy

When the current product is launched in a new market, there are three approaches to develop the market:

1. Expand distribution channels. 2. Sell in new locations. 3. Identify the potential users.

Product-Development Strategy

When a new product is launched in the current market, the intensive growth strategies could be to:

1. Develop new features. 2. Develop different quality levels. 3. Improve the technology.

Diversification

When a new product is launched in a new market, diversification makes good sense as better opportunities are found outside the present business. The diversification strategies are of three types:

1. Concentric Diversification Strategy: Develop new products with the earlier technology for new segments 2. Conglomerate Diversification Strategy: Develop new products for new markets. 3. Horizontal Diversification Strategy: Develop new products with new technology for old customers.

Discussion

ITC Market Analysis Tools

• Trade Map.

• Market Access Map.

• Trade Competitiveness Map.

• Standard Map.

• Investment Map.

Bubble graphs in Trade Map

Adapted to each analytical need:

• National supply vs. international demand

• National supply vs. international demand growth

• Export performance relative to market demand

• Prospects for market diversification

Positioning products according to growth rates and changes in market share

Product Life-cycle

Babies Stars

Dogs Cash cows

High

MarketGrowth

Low

Product Life Cycle

Portfolio model of product selection based on stage in life cycle

Low HighRelative Market Share

Babies Stars

DogsCash cows

Farm-direct Organic coffee

Specialty coffee

Instant coffee

High

MarketGrowth

LowLow High

Relative Market Share

Bubble size is proportional to sales of product

National supply vs. world demand

National supply vs. world demand

Prospects for market diversification

Growth in demand for a local product

Thank you