Pricing and Receiving Payment
In going into export certain key elements must be factored into your plans that will guide you to price your products correctly and profitably. These include; insurances, taxes (excise and import),
- Practices (difference in language, cultural, social and business styles),
- Partnerships (strategic alliances to strengthen your market presence) and
- Protection (against risks relating to payment, intellectual property or travel, especially where it is the first time, and the importer is from a country not familiar, it is advisable to request
fora Letter of Credit.
However, where relationship and trust
HOW TO PENETRATE EXPORT MARKET
beginby taking a look at what your business is all about.
- What products do you want to export?
- Why are they unique (competitive advantage)?
- And what value does it offer customers?
- What are your current strengths and weaknesses and how will these affect your ability to compete in the export market?
SWOT analysis is a useful method of summarizing all the information generated during the export planning.
- To apply your own SWOT analysis, start by creating a heading for each category – ‘Strengths’, ‘Weaknesses’, ‘Opportunities’, and ‘Threats’.
- Under each of these, write a list of five relevant aspects of your business and external market environment.
- Your final analysis should help you develop short and long term business goals and action plans, and help guide your market selection process.
- Business strengths are its resources and capabilities that can be used as a basis for developing a
competitive-advantage. Examples of such strengths include:
- Closeness to ECOWAS and Central Africa markets
- Utilization of ECOWAS Trade Liberalisation Scheme if your products are registered.
- Easy access to the African markets.
- No Visa requirement to travel to ECOWAS Countries and neighbouring Central African Country (Chad and Cameroun)
- The absence of certain strengths may be viewed as a weakness. For example:
- New in the export market.
- New product brand in your industry.
- The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:
- Growing population and expansion of the middle class in the ECOWAS region and Africa in general.
- Nigeria government economic diversification through
- Export Incentive for non-oil export (like; EEG Scheme).
- The common external tariff adopted in the ECOWAS region since 2015.
- Changes in the external environment also may present threats to the firm. Some examples of such threats include:
- Existence of known brands in the industry
- High logistics cost.
- Activities of
The final component of a great international marketing plan is the implementation. Once the planning is effectively done, then the company is ready to export
PRODUCT DEVELOPMENT AND DESIGN
- Decide on the product to export.
- Know the species available.
- Conduct analysis & secure Certifications.
- Cost & priced products.
- Package and Label product.
- Know the peak seasons.
- Know the correct HS Classification.
- Make Brochures/Catalogue of your products.
- Prepare Catalogues and Product Profiles.
Prepare samples for exhibitions
Proper documentation of the appropriate licences and certificates relevant to the product for export is germane to ensuring successful export journey in the long run. Conversely, incomplete or incorrect documentation can prevent the goods from getting to the desired destination or customer. Your export documentation begins with the organization’s certificate of incorporation to clean certificate of inspection (CCI) issued by the pre-shipment agency.
Export from Nigeria requires the documents listed in the exported in the export documentation folder;
EXAMPLES OF INSTITUTIONS PROVIDING EXPORT DOCUMENTATION AND SOME TYPICAL DOCUMENTS
NESS – Nigeria Export Supervision Scheme
NEPC – Nigerian Export Promotion Council
NCS – Nigeria Customs Service
CAC – Corporate Affairs Commission
CCI – Clean Certificate of Inspection
NXP – Nigeria Export Proceeds Form
SGD – Single Goods Declaration Form (C2C10)
NAFDAC – National Agency for Food and Drug Administration and Control
SON – Standard Organization of Nigeria
Export Logistics and Procedure
- Bill of Lading (both by Air and Sea) endorsed by NCS
- Commercial Invoice (if it is by road)
- It contains the following items;
- Quantity of export
- Value together with freight if paid by the exporter
- Bank information ( i.e. remittance advice)
- Domicile account number
- Swift number
- IBAN number –where applicable
- Correspondence Bank (name & address)
STRATEGIC APPROACH TO EXPORT OFFER
description :Species and Colour,
- Incoterms: FOB, C&F, CIF
- Mode of transportation
CONTINENTAL EXPORT DESTINATIONS FOR NIGERIAN PRODUCTS
African: Textiles, Confectionaries, Plastics, Bathroom Slippers, Biscuits, Juices, Milk Products, Building Materials, etc.
Asian: Cashew Nuts, Sesame Seeds, Solid Minerals, etc.
Europe: Natural Rubber, Wooden floor tiles, Commodities, Lump, Hardwood Charcoal, Processed Shrimps, Vegetable, Yams, Snails, Chilies, Nuts, Horns & Tips, Gum Arabic, Cassava, etc.
Middle East: Copper Ingots, Spices, etc.
USA: Ginger, Seafood, Processed food, Rubber, etc.
EXPORT FUNDING INSTITUTIONS
- Commercial Banks
- CBN Export