Successful in GermanyMarket Entry Strategies
Homework done?
• What is so special about my product/service in
comparison with products/services which are already
present in germany?
• Is there a market –entry strategy?
• Who in your company is responsible for the project
„Market entry germany“?
• Does the person have the basic qualification (knowledge
of german culture,language)?
• Do you have a budget for entering new markets?
Homework done?
• Do you have a homepage in german language?
• Do you have info material (Flyer, Broschure, product
presentation) in german language?
• Verification about your certificates? (ISO/TÜV)
Homework done?
• Information about your industry in germany like market
volume, competitors, prices of the competitors
• Costs (for costumers, storage, transport...)
• Verification about your certificates? (ISO/TÜV)
• Do you need special permissions for your
product/service in Germany?
Homework done?
•
•
•
•
Who is your costumer?
B2b
Private
Public sector
Homework done?
• How much time can you spend daily for the foreign
trade business?
• Are your employess prepared for working abroad
(Language skills?)
• Are there structural changes planned in the managenent
if your company in the near future?
Factors of success on the german market
Choose the right local
partner
Reliable businesspartners
Good contacts/network
(Cluster!)
Good knowledge of the market
Cost performance ratio
Service
Quality of the product
Concrete economic concept
for the market entry
Technological advance of the product
Financing????
How to find the right partner?
AHK Slowenien –
Your bridge to the german market
We…
 provide Information
 solve problems
 offer services
 connect you
.
Which cooperation models are existing in
germany?
1. Exclusive representation through one Sales
Partner
2. Cooperation with sales representatives
3. Open a company in Germany
4. Cooperation with an agent
.
Which cooperation models are existing in
germany?
1. Exclusive representation through one Sales
Partner
+ Exclusivity, ideal for a special product with a special peer group
? Network of the partner has to be exellent
.
Which cooperation models are existing in
germany?
2. Cooperation with sales representatives
+ big and well organised network in germany
+ represents usually complementary products/services
+ from the german costumer side sales representatives are well accepted
?+ take a provision
? Again: network /structure of the costumers
.
Which cooperation models are existing in
germany?
3. Open a company in Germany
Makes sence in sensitive sectors (food,health care, bio) where it is important tobuild
up trust towards the end costumer.
Usually a company is established when there is already a high export rate to germany.
+ Germany trade and invest offers you support free of charge
+ regional subsadies in Germany, especially for innovation/start up companies
.
Which cooperation models are existing in
germany?
4. Cooperation with an agent
+ Builds up a Business relationship to costumers/partners in professional
way through his/her network
+ Defines together with you the market entry strategy
+ Organises individually for you meetings with potential clients/partners in
Germany
+ Individual, quicks, focused on your aim
?Costs
.
Which cooperation models are existing in
germany?
Costs?!
•
•
•
Sales representatives work on a comission basis (calculation of the
endprice is important!!)
If you have an exclusive sales representative a salary will have to be paid
Agents: normally a project is charged by hours
.
Which cooperation models are existing in
germany?
Costs?!
•
•
•
•
•
Example: Cooperation with an agent:
Project for 6 months (Establishing market entry in Germany)
1-2 hours/day (Mailings, Meetings, cold calls)= 20-40 Hours for 6 Months
Costs per Hour ca. 90,30 Hours x 90€ = 2700€
.
Information about sectors and
business in germany
Marktinformationen
.
How to find a partner?
Centralvereinigung
Deutscher Wirtschaftsverbände
für Handelsvermittlung und Vertrieb
VBI
Deutscher Verband Beratender Ingenieure
Der Bundesverband Großhandel, Außenhandel, Dienstleistungen e.V.
ist die führende Organisation für Großhandel, Außenhandel und
Dienstleistungen in der Bundesrepublik Deutschland.
Trade fairs in
germany
One of the most important marketing tools in
germany are trade fairs
You can find information about all the trade
fairs in germany in slovene language here:
www.portal-sejmi.si
Quelle: Austellungs- und Messeauschuss der Deutschen Wirtschaft
Our partners in germany
Challenges & Experience
• A successful market entry needs approximately two years of
professional preparation
• For most of the slovene companies the main challenge is to
establish the FIRST contact in the german market
• „Open the door“
• For the first contact it is important to build up trust!
• Good Practice: a lot of slovene companies cooperate
succsessfully and already for a long time with german companies
• Slovene people know the businessculture in germany very well
• Slovene companies know what is important to establish a
longlasting cooperation
Challenges & Experience
The perfect market entry:
1. Professional Market analyses
 Competitors
 Answers the question: Is Germany waiting for my
product/service?
2. Result of the analyses:
 yes, it makes sense to enter the market- go on!
 No, it will be hard : a lot of competitors, price performance,
quality- think&stop! Do i need to change my product? Is it more
suitable for another market?
Challenges & Experience
The perfect market entry:
3. Market entry
 Consult an agent if you cannot do it on your own!
 Arrange a meeting with the agent and discuss the strategy
 Result can be: Find sales agents for me!
 Set the time table for the project and prepare the marketing
material
4. Meet the sales agents/contacts
 They will sell for you, if you are not satisfied- change them
 Start with one region (very often its Bavaria or other southern
countries of Germany) and spread your network of sales
representatives
Challenges & Experience
The perfect market entry:
5. Be present on Trade fairs
 Support your agents
 Be present on trade fairs to gain new contacts, also to the end
costumers
6. Long term
 Build up a trustful relationship with your partners and clients
7. Congratulations- you did it!
For further questions please dont hesitate to get back to our
experts for the german market.
Thank you for your attention!
Simon Pöpperl
stellv. Geschäftsführer
Telefon: +386 1 252 88 62
E-Mail: [email protected]
http://slowenien.ahk.de