What is the purpose of this section?
The Target Market section of your export plan should include subsections addressing the following topics:
Start working on the Target Market section of your export plan
Why is this important?
- Which countries presently import your type of product from the United States? (for example, snack food, dairy products, pet food, and so forth)
- Of the markets you listed, have imports of your type of product increased or decreased over the past five years?
- What countries are likely to have the type of customer you now serve? For example, if most of your company's current customers are high-income households, it is not likely that your product would do well in a low-income, developing economy.
- What do you see as the three to five most promising countries to investigate as potential importers of your product?
- What are the demographics of the country like: what age, what income, what education, what standard of living do they have, what religion(s) do they practice? What cultural idiosyncrasies exist and how might they influence the acceptance of your product type? How urbanized is the population? How do these characteristics compare with the primary consumers of your product type in the U.S.?
- How are products typically distributed in that country? What demands would that make on your company?
- If you were to market your product in this country, who would your major competitors be? Include potential competitors in that country, in the U.S., and in other foreign countries.
- In what ways do routine business practices in the country differ from those in the U.S.? What demands would that make on your company?
- How stable is the political situation in the country?
- How stable are economic conditions in the country? Is the economy growing or declining?
- Is the foreign currency exchange rate between the U.S. and the country relatively stable or is it volatile? This has important implications for the selling price and competitive positioning of your product.
- What does your assessment of potential markets tell you?
- What target market(s) will your company focus on in this export plan? Why?
Continue on to the Product section of your export plan