For MDACI, it is obvious that strategic category of export opportunities (SCEO) is “Job One” for export managers. MDACI’s export countries are divided into Three (3) categories: Strategic, Priority, and Opportunistic. This approach filters countries by “size of the prize” and investments required for each category of country. The basic rationale is that a company should allocate different resources to develop a large country like Brazil and Nigeria, compared to a medium size country like Belgium versus the Bahamas, Jordan or Senegal. Too frequently, we see companies handcuff all markets to one export program, with common strategy, pricing, and invest models for all countries. MDACI help you minimize risk using this approach.
|Country Profile||Investment Required||Business Model||Examples|
|Strategic (Focus)||Large Country (pop. 50mm +) High GDP High Category BDI Global Retailers High Complexity||Significant Investment in Brand support. Market Research Management Visibility||Local Office or Distributor or Joint Venture||Japan, USA Mexico, China, Germany|
|Priority (Manage)||Mid size Country (pop. 10 mm+) High GDP High Category BDI Mid Complexity||Moderate investment in brand support. Managed by Export Manager||Distributor||Argentina, Australia, Canada, Taiwan/Korea, South Africa, Benelux,Saudi Arabia,|
|Opportunistic (Profit)||Profitable Opportunities. Low GDP Countries Low Complexity||Minimal/no investment in brand support||Distributor or Direct to Retailer||Caribbean Central America Middle East Africa|
Category analytics always vary by company. Absolute population is just one factor warranting consideration. Other criteria include size of the category, proximity to your producing plant, as well as per capita spending power. For example, most USA based exporters sell far more to Puerto Rico, an island with 4 million people, than they do to China or Brazil. As a result, some USA brand owners place a strategic focus on the Caribbean Basin countries adjacent to the USA and process only occasional opportunistic shipments to complex countries such as China. Sooner or later this Companies will suffer a production reduction and therefore low income due to market saturation.
MDACI role is to bring you the market close to your producing plant at the cheapest possible cost.
Mix of Countries
Most companies can dedicate focus on a strategic launch into only one or two “strategic” countries at a time. It is appropriate to create a growth plan aimed at a mix of strategic, priority, and opportunistic countries.