Mostly, the very purpose of an export plan is to identify the steps needed to initiate global sales. First of all, the firm has to identify the export potential for its products or services. There are a plethora of ways to analyse the export potential of a product like using an export readiness assessment tool. However, in the first place, check the performance of your products in the domestic market itself.
Acceptance in the Home Market
For instance, if your company is making profit in the domestic market, there is every chance that it would make in the international market too, particularly in places where similar conditions exist with that of the home market. Another important criterion for evaluating the export potential is by looking into its unique features or Unique Selling Proposition (USP). A product or service for which a substitute is hard to find, the export potential would be very high. The chance of successful survival is possible under such instances.
By the Law of Demand
That being said, we cannot always say that a product losing its appeal in a domestic market finds it difficult to survive in an international market. Imagine a product that has been successful for a very long time in the domestic market is now facing a decline in demand. This reduction in demand may be a result of market take-over by a more advanced product with much more sophistication. Under such instances, the former product can find a good market abroad in places where such sophisticated, expensive products are considered as luxury goods.
Evidently, such products survive in international markets provided the above circumstances prevail. This basically gives a clear idea about the demand for a product in the target market. In other words, if there is no demand for your products, it is better not to put your endeavour in it.
In addition to this, you have to consider customer profiles such as your existing users, the geographic and climatic factors affecting its use and so on. Also check if there is any need for modifications when it gets introduced in the foreign target markets. The shelf life of a product that is to be exported, its packaging, technical and regulatory requirements, transportation requirements, transportation costs, its influence on competitive pricing, the efficiency with which the target market process shipments, the need for local partners, after-sales support and many more comes under consideration.
Ability to Meet Home and Overseas Market Demands
Apart from these, an exporter has to analyse thoroughly if the demands of both domestic and target markets abroad can be met. In fact, evaluating the ability to withstand the pressures of demand from all markets is key to find the export potential of a product. It is advised to strike a balance so that the demand is met with an adequate amount of supply.
An export plan with the export product list would help companies a lot in identifying the export potential of products. A detailed export plan encompasses all of the aspects discussed above. It certainly verifies the readiness of product/s for export and every intricacy concerning its successful launch in the target market.