Successful in Germany- Market 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

Quality of the product

Choose the right local partner

Good contacts/network(Cluster!)

Service

Good knowledge of the market

Cost performance ratio

Technological advance of the productConcrete economic concept for the market entry

Reliable businesspartners

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 representatives3. Open a company in Germany 4. Cooperation with an agent

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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

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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

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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

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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

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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

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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€

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Information about sectors and business in germany

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Marktinformationen

How to find a partner?

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Der Bundesverband Großhandel, Außenhandel, Dienstleistungen e.V. ist die führende Organisation für Großhandel, Außenhandel und Dienstleistungen in der Bundesrepublik Deutschland.

Centralvereinigung Deutscher Wirtschaftsverbände für Handelsvermittlung und Vertrieb

VBIDeutscher Verband Beratender Ingenieure

Trade fairs in germany

Quelle: Austellungs- und Messeauschuss der Deutschen Wirtschaft

You can find information about all the trade fairs in germany in slovene language here:

www.portal-sejmi.si

One of the most important marketing tools in germany are trade fairs

Our partners in germany

• 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!

Challenges & Experience

For further questions please dont hesitate to get back to our experts for the german market.

Thank you for your attention!

Simon Pöpperlstellv. Geschäftsführer

Telefon: +386 1 252 88 62 E-Mail: simon.poepperl@ahkslo.si http://slowenien.ahk.de