The purpose of this export marketing plan is to assist ABC Manufacturing in the creation and execution of an international strategy. This is accomplished through evaluating current company conditions, investigating global trade patterns, identifying and prioritizing promising international markets, identifying market entry strategies, and providing a step-by-step guide to implementation. The suggestions and conclusions included in this plan are mostly based on secondary research. However, current company practical experience is also considered. The report focuses primarily on market data; some political and economic risk data is also taken into account.

The market data provided should help company executives decide which markets to enter. This plan should be approached as a living document, able to be updated and revised in response to market conditions and lessons learned. To this end, an exhaustive list of resources has been included in the Appendix, and all information sources have been documented throughout the plan. This plan was developed by the Florida Small Business Development Center (FSBDC) at the University of North Florida in consultation with ABC Manufacturing management, Enterprise Florida, Inc. and the U.S. Commercial Service.

General Goals Goal 1: ABC Manufacturing has grown by 65% over the past few years in large part due to passive export sales. With this export marketing plan, ABC Manufacturing aims to develop and implement a proactive international strategy to assist the company in growing sustainably by testing assumptions against outside research and by properly allocating resources to support this effort. Goal 2: Identify emerging markets with growth potential. Become the market leader in these markets to offset growing international competition in mature markets. Goal 3: Develop international expertise, whether in-house or through a team of outside experts, in to ensure long-term success in international sales. This includes solving existing export questions, creating support strategies for international clients and providing education to key staff members.

Scope and Methodology

The conclusions in this report were reached by extensive secondary international market research and examination of trade data. The company’s practical experience is also taken into account. First, a search was conducted with ABC Manufacturing to identify the correct Harmonized System Commodity Classification Codes (Schedule B Numbers) in to examine the trade patterns for these products. Additionally, other relevant success indicators were evaluated, top countries were then prioritized and recommendations were made. A detailed explanation of market indicators is explained in the “Market Analysis” section. The market data provided should help company executives decide which markets to enter. The aforementioned research as well as an overview of competitors and an action plan with a $25,000 budget for start-up process will help the company build its overall exporting strategy. Background information on the company was gathered from interviews with the ABC Manufacturing Executive team in addition to thoroughly reviewing the company’s website and marketing collateral. A complete listing of the resources used to compile this report can be found in the Appendix. ABC Manufacturing will have continuous support of the Florida Small Business Development Center at

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ABC Manufacturing UNF, Enterprise Florida, and the U.S. Commercial Service to execute this plan. Company Overview and Analysis About ABC Manufacturing ABC Manufacturing is a full-service, precision manufacturing facility of 15 employees based in Jacksonville, Florida. Since its inception in 1993, the company has strived to bring to market the highest quality aftermarket products for repairing rigid and flexible endoscopes. In the early 1990s, then owner John Smith began to see a need for readily available repair and replacement products in the third party endoscope repair industry. Because of this need, ABC Manufacturing was formed in 1993. After just three years, the company’s inventory grew to over 500 product lines. ABC Manufacturing has since increased inventory to over 1,500 lines and serves a vast, worldwide market of independent service organizations, surgery centers and hospitals in over 50 countries.

Mr. John Smith, CEO, approves major financial decisions, leads general business strategy and new business development. Mr. George White, General Operations Manager handles procurement, quality control, reverse engineering, and inventory control. Mr. Catalino Muñoz, VP of Global Business Development, manages international strategy and development. A former employee residing in Brazil, Mr. Erlane Oliveira, is ABC Manufacturing’s distributor in Brazil.

Export Readiness Assessment

The following internal aspects were analyzed to determine feasibility of ABC Manufacturing’s export operations expansion:

Organizational Readiness: From the CEO throughout company hierarchy, there is a consensus within the organization to pursue an aggressive export strategy. Currently Mr. Muñoz handles international sales, while the company’s Brazilian partner maintains a significant client base throughout South America. Company executives understand the time commitment to realize international success, and are aware that they will have to dedicate a considerable amount of human and financial resources to the international trade expansion. Company Readiness: Having been in business for 22 years, ABC Manufacturing has built lasting business relationships and has accumulated considerable know-how of their manufacturing and customer service processes, creating a strong domestic brand. The company employs a horizontal management structure, which allows for decisions to be made quickly and provides for greater flexibility than that of a larger, more bureaucratic company. These characteristics provide a competitive advantage and make it difficult for newer companies in the industry to compete as efficiently. With this being said, the company owner and executives are committed to implementing an international strategy, and they understand such a strategy is long term. Financial Readiness: ABC Manufacturing has a steady positive working capital position with sales growth trending up approximately 36% over the past four years. Management understands that an export strategy may require using short-term profits to achieve long-term gains. The company should have adequate cash, savings, or access to capital to finance production and marketing efforts. Management should also understand that the company may need to wait longer for payments. The more direct or aggressive the expansion plan, the more cash is required. Each investment must be balanced against the expected profit opportunities and their impact on building long-term owner and shareholder value of the company.

ABC Manufacturing Product Readiness: ABC Manufacturing’s competitive advantages come not only from experience but also because they offer a very large product line catering to the most frequently used endoscopic equipment bands in the industry. ABC Manufacturing products are known for their high quality and by being “made in the USA” carry the internationally-recognized standard of quality.

Products and Services Analysis

ABC Manufacturing manufactures replacement endoscopic equipment to original equipment manufacturer (OEM) specifications for use in bronchoscopes, colonoscopes, gastroscopes, and ureteroscopes. An ISO Certified company, ABC Manufacturing employs SolidWorks and MasterCam CNC design programs to manufacture replacement parts for major brands such as Dyonics, Fujinon, Linvatec, Olympus, Pentax, Stryker, Storz, and many more. Research in this export marketing plan focuses on the Olympus product line as company management finds it to have the greatest export potential.

Customers choose ABC Manufacturing products because they specialize in manufacturing out-of- warranty and hard to find replacement parts for surgical equipment used to perform minimally invasive procedures. The company serves as a “one-stop shop” allowing customers such as endoscopy repair facilities to extend the life of the scope, which provides a cost benefit both to the repair facility and to the end user. In the past, repair facilities would seek out ABC Manufacturing, although the company has noted increased competition from European and Australian manufacturers. As a means to curb the strain from increasing competition, the company increasingly generates leads through trade shows, website optimization, and through active marketing in South America through their distributor, Mr. Oliveira. ABC Manufacturing makes an extra effort to ensure it collects, documents, and maintains customers’ specifications and internal production information to deliver the expected product right the first time. Having international customers has reinforced this process, because the company understands how much time and money can be wasted if the exported product does not meet expectations.