Export Plan Template Essay Sample

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A. Cover page

B. Table of contents

C. Executive Summary

D. Company Description
1. The Export Team
• Identify specific individuals and their positions which have been assigned
• responsibilities for export development
• Identify international skill sets and knowledge (languages, culture, international marketing, logistics, transportation, documentation, banking, politics, economics,legal, financial, etc.)

2. Goals and Objectives
• Overall goals and objectives for the company
• Export goals and objectives: how does the exporting activity contribute to achieving the overall goals and objectives?

E. Product/Service Description
1. Domestic and International Products and/or Services
• Unique selling attribute or competitive advantage(s)
• Typical profile of end users
• Describe required product modifications
• Seasonality and life cycle of your product or service
• Intellectual property protection

2. Growth Potential
• Domestic and existing international market(s)
• New products/services research and development
• New intellectual property protection

F. New Foreign Marketplace Analysis
1. Rationale for Exporting

2. Rationale for Selected Foreign Market

3. Country Profile
• Political, economic, social conditions
• Regulatory environment
• Legal structure
• Fiscal/taxation structure
• Infrastructure conditions (e.g. roads, ports, rail, airports, telephones, and communications, etc.)
• Cultural and business practices
4. Industry Profile
• Broadly identify direct customers (e.g. buyers, agents, distributors, trading houses) or actual end users (e.g. individuals, businesses) and current market trends • Competitive Analysis

• Overall competitive conditions
• Existing competitors: strengths, weaknesses, opportunities, and threats (SWOT) in the foreign marketplace
• Unique selling attribute or competitive advantage(s) of each
• Existing sources of production and channels of distribution
• Marketing practices used

• Typical payment terms offered

G. Market Entry Strategies
1. Strategic Alliance, if applicable (co-marketing, co-production, joint venturing, licensing, franchising, etc.)

2. Target Customer Profile
• Direct customer (buyers, distributors, trading house)
• Who will they be?
• Demographics or company characteristics
• Purchasing decision makers
• Actual end users (individuals, families, elderly, youth, businesses)
• Purchasing decision makers
• Total market size and future growth potential

3. New foreign market product or service description(s)
• Typical usage by the end users (what problems are being solved?)
• Unique selling attributes or competitive advantage(s)/market niche
• Describe required product modifications
• Product characteristics (design, styles, colors, etc.)
• Quality characteristics
• Product specifications standards(health and safety)
• Labeling, packaging, markings, language(s)
• Seasonality and life cycle of the product or service
• Foreign intellectual property protection (tradename, trademarks, trade secrets, patents, industrial designs, copyrights, etc.)

4. Pricing Strategies
• Export costing analysis
• Pricing constraints
• Legislation (anti-dumping, price controls, etc.)
• Current market pricing (if necessary, consider typical profit margins in distribution chain) • Price sensitivity (market acceptance of higher or lower price) • Market penetration pricing strategy (market skimming, penetration pricing, flexible pricing, static pricing)

5. Sales and Promotion Strategies
• Sales methods (company representative, subsidiary or affiliated company, foreign agent, foreign broker, mail order/Internet orders)
• Promotion methods
• Advertising availability and regulatory constraints (newspapers, magazines, radio, television, Internet, posters, flyers, letters, etc.)
• Demonstrations, trade fairs, trade missions, etc.

• Promotional tools (samples, in-store giveaways, discounts, consignment, etc.)
• Promotional message (consider cultural, religious, lifestyle/image, economic influences, etc.)
• Sales financing support, pre-arranged financing for purchaser
• Performance bonds and guarantee requirements

• After sales services (returns, repairs, warranties, maintenance, training, • communications/hotlines, etc.)

6. Logistics and Transportation
• Time lines between order processing and delivery (contract negotiations, production, invoicing, collections, deliveries, communications, etc.) • Negotiated delivery terms – Incoterms
• Requirements and availability of warehousing and storage • Inventory control methods
• Freight insurance requirements
• Methods of transport, identify special needs (e.g. refrigeration, heated, humidity sensitive, etc.) • Usage of professional services intermediaries (freight forwarders and customs brokers) • Documentation (import, export, health, quotas, inspections, customs preapprovals) • Packing and marking requirements

• Service or employment contracts (accreditation requirements, VISAS, immigration issues)

H. International Law (legal counsel required)
1. Dispute Resolution considerations to address in your sales contract: • Mediation/Arbitration clauses: an agreement to attempt to resolve conflicts prior to commencing litigation procedures. • Law of contract: the chosen legal system under which the contract is enforced. • Venue: the jurisdiction of the court, i.e. where will the case be heard? • Attornment: agreement of the parties to be bound by the court’s decision in that chosen jurisdiction. • Securing Payment: if decision is favorable, how will you collect and who will enforce the collection agreement?

2. Language consideration: the language used to bind the parties within the sales contract.

3. Contract terms and Conditions
• Incoterms
• Currency of payment and exchange rate
• Method of payment (cash, letter of credit, documentary collection, open account,barter, counter trade, consignment) • Product measurement methods and quality standards
• Insurance,
• Warrantees, after sales services, etc.

4. Product Liability considerations: applicable foreign laws and regulations.

5. Intellectual Property: the protection in the foreign market(s) required to maintain ownership.

6. Sales Agent and/or Distributor agreements
• consideration of foreign laws and regulations that affect agreement o commissions
o territory
o duties
o authority
o termination

I. Financial Analysis (accounting advice recommended)
1. Facility and Equipment Requirements: detailed list of capital expenditure items specific to supplying the export market.

2. Sales Forecast: for each export market
• numbers of units exporting
• price/unit
• total sales (three to five year forecast, provide monthly details for year one)

3. Cost of Goods Sold: for each export market (refer to export costing sheet) • number of units exporting
• cost/unit
• total cost of goods sold.

4. Projected International Income Statement: international sales less cost of goods sold and international overhead expenses to obtain projected net profit.

5. Projected International Cash Flow: expected expenditures of cash and receipt of cash, consider the time elements from the Logistics and Transportation portion of the business plan.

6. Breakdown Analysis: number of units and dollar sales to cover cost of goods and international overheads.

7. Financing Requirements: identify term financing and working capital requirements, equity contribution and collateral available to secure needed financing.

8. Financing Sources: identify type of financial support

J. Risk Management
1. Country Risk: assessment of political, regulatory and economic conditions, contingencies for problems (e.g. pre-payments, insurance, etc.)

2. Commercial Risk: assessment of creditworthiness, contingencies for non-performance such as default, refusal to accept goods, insolvency.

3. Currency Risk: contingencies for maintenance of value, (e.g. contractual value maintenance, forward contracts, currency options, etc.).

4. Internal Risk: contingencies for ensuring adequate manpower skills and availability, control over production and distribution costs.

5. Market Risk: contingencies for changes in domestic and foreign market conditions.

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