Ireland West International Trade Centre
Dia Dhuit! Mary Rodgers Classic Irish American. US Market entry and sales specialist. Trainer, Mentor, Optimist. Ph: 086.3298976 @Statesideportal www.statesidesolutions.com
Morning Session… 1 The US is open for business – An Overview 2 The Rhode Island Project – Overview 3 Sales & Marketing – Reference Sales 4 Deliverables for Rhode Island Project
PART ONE The US is Open for Business
Irish companies directly employ an estimated 80,000 people within 227 companies at over 2,600 locations, in all 50 States across the US – American Chamber of Commerce 2015
US Landscape – an overview Population of over 318 million. 1 Million live in Rhode Island. Irish companies have invested $34 billion in the US economy USA is Ireland’s single largest market 627 Irish Companies exporting to the US Unemployment rate 5% lowest since April 2008
US Landscape – an overview Exchange Rate 1:09 - expensive to do business Cultural ties between the US and Ireland extend to business Banking not as advanced payments often still made by check. Sceptical of buying online from foreign companies, merchant number can fix this.
US Sector Clusters
PART ONE
Rhode Island Clusters Jewelry Upstream Chemicals Downstream Chemicals Leather Goods Fishing More info: Rhode Island Employment and Clusters
US taxes an Overview Sales Tax : Every state has it’s own rate of sales Tax. New York 8.5% on clothing over $110. Rhode Island no sales tax on clothing less than $250, but specialty clothing items like sportswear are subject to sales tax. Tax added at register. Selling on Amazon: Product code is key so that Amazon charge appropriate sales tax for each state. Sellers need to be careful here as they will still be liable and may loose sales. Tax Year: April 15 th is the deadline for personal Tax filings. Everyone must file a return. A State and Federal return. Maximum personal Federal taxis 39% Corporation Tax: Subject to state and Federal Tax. Every state offers incentives.
Statutory Corporate Tax Rates
PART TWO VISA OPTIONS
Visa Options “The visa waiver program is not a revolving door” - Deirdre O’Brien Immigration Attorney @US Visa Expert
VISA OPTIONS
PART THREE Sales & Marketing
“It’s not a race to the bottom, don’t try and compete on price we want quality products at a fair price” - Jesus Leal Novartis
“We will always meet with an Irish Company – the door is open, they just have to ask” - Donna Drummond Northwell Hospital System
“They don’t listen, they come in and pitch but no one is asking questions or listening to our answers” - Rebecca Cenni Atrium Staffing
Preparing for US market entry Enterprise Ireland Research Library – Competitive research Check availability of company name First trade show should be fact finding Competition/Expert meetings - advisory boards build credibility Understand International USP may be different than indigenous market Speak to a lawyer early in process to understand compliance requirements You pay for what you get price your services accordingly
Sales & Marketing First sales will be loss leaders: Companies need to know their breakeven point. Manage expectations and understand sales cycle Reach and Frequency key – who is representing the brand. Online sales companies will need to get a merchant number Ensure Pilot sites are relevant and you have resources to implement/ NDA and guidelines Distributors: Establish guidelines be aware of exclusive agreements Consider a beachhead strategy: Direct Sales, Contract, Distributor, Resellers Continually assess market conditions – Market Drivers
DIASPORA Get your Network on!
Kinsley Akins – Diaspora Matters <iframe width="640" height="360" src="https://www.youtube.com/embed/yQ_ y5LgM7D0" frameborder="0" allowfullscreen></iframe>
Irish Diaspora in the US
Diaspora America’s Most Irish Metros #U.S. Metro % Irish ancestry 1 Boston, MA 20.4% 2 Middlesex County, MA 16.9% 3 Peabody, MA 15.8% 4 Albany, NY 15.6% 5 Syracuse, NY 15.0% 6 Worcester, MA 14.8% 7 Camden, NJ 14.8% 8 Philadelphia, PA 14.2% 9 Long Island, NY 13.1% 10 Wilmington, DE-MD-NJ 13.0% Among 100 largest metros. Primary Irish ancestry only.
“It is that quality of the Irish – that remarkable combination of hope, confidence and imagination – that is needed more than ever today. The problems of the world cannot possibly be solved by sceptics or cynics, whose horizons are limited by the obvious realities. We need men who can dream of things that never were, and ask why not” President John F. Kennedy Address to Dáil Éireann, 1963
PART FOUR Legal & Logistics
US Company Set up… The Basics Types of Entity selected important for Taxes Company set up basic entity cost $2000 Bank account will be needed (Silicon Valley) US Phone Number /Office /FEIN Function of US entity important for taxes “Sales and Marketing” entity Every State has it’s own IDA seek out incentives
Hiring Options 1099: Similar to self employed responsible for own taxes Full time Hire: Total Compensation – Salary, benefits, 401k Contractor: Hire through an agency - 30% margin but none of the logistics to be handled At Will hiring: Easier to hire and fire Hiring Documents : Handbook/ Offer Letter/Vacation Managing Expectations: Managing Staff remotely/ Reference checking/ Sales
Twitter @ProvidenceRI #GoProv ****Top 50 places to visit in 2016*** - NY Times
PART FOUR Making a plan for the US
What do you know about your US market opportunity? • Market size and trends • Customer profiles including demographics • How do customers use my product? • Alternative solutions used by customers – status Quo • Competitors & market share • Power of suppliers • Buying process and decision makers • Regulation and compliance issues • Cost of Sale • Logistics and supply chain
US Market Research Specific market • Assessment of a Industry information (used US market Information to develop (relates to your • (general marketing plans) product category) information about a country) • Product • Market size • Economic • Pricing • Segmentation • Social / Cultural • Distribution • Competition • • Promotion Political / Legal • Consumer • Technological
US Primary Research Primary Research is the process of gathering original information directly from individuals who have access to it . • Competitive analysis • Speaking to employees/vendors/Users • Completing your own customised market research questionnaire, interviews studies (Survey Monkey) • Engaging in customised product evaluations
Methods of Primary research Focus Group Surveys Experiments Qualitative and Quantitative Panel Interviews
Focus Group Research
“ Market research that's already compiled and organized for you. (“desk research”) Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry.
• State or regional Agencies (EDC in Massachusetts) • Local government and industry associations -Nyc.gov/ Enterprise Ireland • National Associations (AMA.org) • Trade Shows and Conferences (Showcase) • Webinars/seminars (Competitor analysis) • Networking Groups (“Meet ups”/Irish Diaspora/ Niche Market groups) • USA Statistics in Brief http://1.usa.gov/HExevZ • Industry reports: Economist Intelligence Unit, Forrester or Ibis World. • Individual Company Research: Hoovers, Orbis, Kompass and LinkedIn
Example of Secondary Market Research US Sector Clusters
Do you have a Niche offering? A niche market is a focused, targetable portion of a market that addresses a need that is not already being addressed and targets a narrowly defined group of target costumers In order to define your Niche market you must • Know your USP (what make you stand out from your competitor) • Have completed market research to know your costumer base will purchase • Choose a niche market that’s available • Market, market, market
What does a niche look like? Extreme Sports enthusiasts History Buffs Motor Home Owners Carpet Cleaner Business Owners Pizza Restaurant Owners Winter Camping Enthusiasts Siamese Cat Owners Geriatric Dentists Baby Boomers Landscape Company Owners
THE MEETING “THE FIRST 90 SECONDS OFTEN DETERMINES TONE OF MEETING”
THE FORMALITIES Introductions Confirm connection Thank prospect confirm why you are here Elevator pitch - 3 differentials/USP “We are here today because...” Probing Questions Next Steps – Close Follow Up
Sell the value and benefits of your product Tell the prospect about how your products can cut costs, reduce time, increase profits-and then quantify it using facts and figures – Stats impress and are quotable. Keep them simple. Talking about how you’ve helped someone else might pique their interest, too. Research must be relevant
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