Company Guidelines
Market Access Grant (MAG)
1.
OVERVIEW:
The aim of the Market Access Grant is to incentivise companies to develop viable and sustainable market
entry strategies for new/existing products and services in new/existing geographic markets.
A well planned market entry strategy requires a company to undertake a 5 stage market validation. The
purpose of the market access grant is to encourage companies to undertake this systematic approach.
These 5 stages are:
5 Stages of Market Validation
1
Market opportunity identified and validated
2
Channel to market identified
3
Go to market strategy in place
4
Target customer(s) identified and quantified, - Specific market
opportunity, product/service solution proposed and validated
5
Detailed sales & marketing implementation plan for target
market(s) completed
6
Review of market plan
The market, the sector and the stage of the company’s development will determine the point at which the
individual company is in this process. Market research as generally understood is to determine whether a
market opportunity exists. In this context market validation takes the company further through the next
stages to develop a market entry strategy which includes channel identification, go-to-market strategy,
validated customers, value proposition and implementation plan.
What Constitutes a “New Geographic Market”?
If a company is already trading in the proposed geographic market and has an established sales track
record, as opposed to ad-hoc or opportunistic sales, it will not be eligible for a Market Access Grant for that
market. However if the company is planning research for a new product or service in this market, then this
may be considered.
Note: Companies looking to explore opportunities for their existing products / services in existing
geographic markets can consider applying for alternative Enterprise Ireland support.
A geographic market is an internationally recognised country. In certain situations, a business case can be
made that a new market exists within a country’s national boundaries for example due to linguistic, cultural or
climatic reasons, or in the case of large countries, distance from existing market.
Where it is planned to pursue the research for multiple geographic markets, this may be considered provided
the above is complied with.
1.2 The Aim of the Market Access Grant:
The grant will assist a company, to investigate the potential of introducing new or existing products/services
to a new market or new products to an existing market by undertaking a structured and phased research
project over a period of up to 18 months. The maximum available support under the Market Access Grant
will be €150,000 under De Minimis Aid.
1.3
State Aid basis
The Market Access Grant is approved as De Minimis aid. A company may be approved up to €200,000 in De
Minimis Aid in any 3 year period.
•
•
•
•
•
•
The major activities to be covered in the Market Access Grant are;
Market research using consultants and/or clients own staff to validate the market opportunity (may be
new staff in the market or in Ireland or staff seconded to the project),
Cost of consultants to include the development of marketing strategies, customer value proposition,
and online/PR strategy,
Office rent
Trade fair participation (Not for Large Companies)
Collateral development costs
Purchase of reports and databases
See table in Appendix 1.
1.4
Application Process
Companies can apply for funding following discussions with their Enterprise Ireland Development Adviser
and/or the Market Advisor for the relevant target market.
2.
ELIGIBILITY:
2.1
Eligible Companies
The grant is open to existing clients of Enterprise Ireland, Shannon Duty Free Zone and Údarás na
Gaeltachta that meet all of the following criteria:
1.
2.
3.
4.
OR
A manufacturing or eligible internationally traded services company, and
Small and Medium Established sized companies engaged in eligible activities
Company must have demonstrated the capacity to internationalise
Trading for more than 5 years, with sustainable annual revenues of at least €500k
The company that has traded for less than 5 years that has achieved sustainable revenues of
€500K, is EBITDA positive in the last 9 months and can demonstrate sustainable future positive
EBITDA.
Note – Large Companies: Enterprise Ireland will consider applications from Large Clients on a case by
case basis where; the proposed target market is a high growth market as defined by EI and/or it can be
clearly shown that EI support will be pivotal in driving a desired behavioural/organisational change in the
client. e.g. undertaking formal structured market research prior to the launch of a product / service in an
overseas market for the first time. In addition, the “Need for Support” will need to be clearly articulated for
large companies.
2.2
Eligible Projects
Projects which demonstrate a structured approach to;
•
Researching and validating opportunities for a new product/service in a new or existing geographic
market[s] or
•
Researching and validating opportunities for an existing product /service in a new geographic market[s]
The structured approach in each project is to be determined by the company on the basis of the specific
needs of the marketplace and the stage of development of the company.
Number of Market Access Grants per Company
The number of Market Access Grants is determined solely by the company’s available De Minimis Aid
balance.
2.3
Eligible Activities
The eligible activities supported under the Market Access Grant include;
1.
Human Resources:
The salary cost incurred including an allowance for overheads of personnel in the company to carry out
research in the market to develop and validate a market plan including a go-to-market strategy. This
resource may be
•
a new employee based in Ireland and/or in the overseas market
•
a current member assigned for a specific period of time to undertake the project
•
The CEO/MD's salary costs are not eligible if the CEO relocates to the market. If the CEO is involved
in the project from Ireland their costs can be supported at a maximum of 30% of salary which is
capped at €80K.
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2.
Overheads:
The overhead support is a contribution towards the travel, subsistence and accommodation costs
associated with the employee.
3.
Consultants:
The funding of third party expertise to develop and validate all elements of the company’s marketing
plan for the launch of product(s) in the new overseas market (or new products in an existing market)
including:
•
researching the market
•
identifying routes to market
•
identifying potential market contacts
•
developing a market strategy and plan
•
developing a customer value proposition
•
validating a market strategy including consultation with target customers, channel partners and/or
strategic partners
This also includes specialist consultancy (concerning the launch of the product) in the following areas;
•
Legal costs
•
Specialist advice on IP and trade mark protection
•
CRM consultancy
•
Recruitment
•
Public relations consultancy
•
Online and social media consultancy
4.
Rental of Temporary Office Space:
Where a presence in the market is required to carry out market or target customer research, the cost of
renting office accommodation will also be covered
5.
Trade Fairs (not available to Large Companies):
The cost of a company's first-time participation in any recognised Trade Fair outside Ireland may be
eligible for assistance. This includes the costs incurred while preparing and participating in the Trade
Fair, taking a stand at a Trade Fair or simply visiting the Trade Fair.
Participation at conferences, symposiums, stand alone company events, fairs, demonstrations or
meetings are not eligible for support.
Second and subsequent participation in the same Trade Fair may be eligible if it is being held in a
different country from previous approvals. If a client has only attended a Trade Fair previously (i.e. did
not take a stand), they may apply for support for the same Trade Fair at a later date.
6.
Materials:
Cost of the materials necessary to validate the marketing plan to include;
•
Development of marketing collateral for market test
•
Purchase of information from specialist market research companies
•
Translation / interpreting costs
The eligible activities are covered in greater detail in Appendix 2 which outline the potential stages and
related costs in undertaking an internationalisation expansion project
Projects are eligible based on the following matrix
Product
Existing
Products
New
Products
Market
New
Market
Existing
Market
YES
YES
No
YES
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2.4
Eligible Costs
1. Wages and Salary Support:
Wages and salary costs of personnel assigned to the project can be supported. The maximum eligible
salary is €80,000 per annum exclusive of employer’s PRSI and bonuses.
The CEO/MD's salary costs are not eligible if the CEO relocates to the market. If the CEO is
involved in the project from Ireland their costs can be supported at a maximum of 30% of salary
which is capped at €80K.
Completed time sheets will be required for all employees on the project.
Note: New Permanent Full Time salaried employees or existing employees will be eligible for wages
and salary support. Part-time/contract staff or consultants paid by invoice will be treated as consultancy
under this option. Total salaries are not to exceed 80% of the overall project spend.
The company has the option to;
a. Place an existing or new employee(s) in market for the purposes of undertaking the project
assignment and/or
b. Appoint new employee(s) /re-assign new employee(s) who would be based in Ireland to undertake
market research
2.
Overheads:
Overheads are eligible up to a maximum of 30% of wages and salaries.
3.
Consultancy:
Appoint a local market expert/consultant to undertake the New Market Research assignment:
Companies choosing to hire an industry expert or consultancy firm, in a target market, to undertake the
new market research assignment will be eligible for support at a 50% grant rate towards the cost of one
or more consultants.
The following rates apply; €1,500 per day for first 20 days; €900 per day for day 21-30 and €700 per
day for all subsequent days. The reducing rates apply to each consultancy firm.
Other specialist consultancy:
Public relations:
Cost of consultants to research a public relations strategy
Marketing:
Cost of consultants to assist with customer value proposition development.
Localising online presence:
Costs of localising online presence
CRM consultancy:
Costs to advise on setting up of customer relationship systems
Professional Fees:
A company can apply for support towards the costs of a local consultant(s) to assist the company
employee with the new market assignment for example legal, HR, IP / Trade Mark costs,
Interpreting / Translation costs and taxation issues relating to the new market assignment
4.
Rental of Temporary Office Space:
Up to a maximum of €25,000 expenditure for office rent in the new market for a period of time that is
continuous, where the office is to be used for the purposes of the new market assessment only and not
for sales activities.
Note: There must be a lease or rental agreement for office space in the company or employee name.
Lease of an apartment/domestic residence will not be supported as it is covered under overheads for
the in-market employee.
5.
Trade Fair costs (not for Large Companies); Participation and Attendance:
The cost of a company's first-time participation at any recognised Trade Fair outside Ireland may be
eligible for assistance. This includes the costs incurred while preparing and participating at the Trade
Fair, taking a stand at a Trade fair or simply visiting the Trade fair. Participation at conferences,
symposiums, stand alone company events, fairs, demonstrations or meetings are not eligible for
support.
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Second and subsequent participation at the same Trade Fair may be eligible if it is being held in a
different country from previous approvals. If a client has a only attended a Trade Fair previously (i.e. did
not take a stand), they may apply for support for the same Trade Fair at a later date
6.
Materials:
Reports: Cost of purchasing reports and databases relating to a new market/sector are eligible up to a
maximum of €25,000.
Marketing Collateral: The development cost of marketing collateral for use in a new market is eligible.
The cost can include designing collateral, localisation, market specific value proposition messaging and
translation up to a maximum of €20,000.
3.
INELIGIBILITY:
3.1
Ineligible Companies
Companies whose products are listed in Annexe 1 to the EU Treaty (TFEU) which include:
•
Horticulture companies
•
Fish processors
•
Other primary producers
3.2
Ineligible Activities:
The following activities will not be considered for support.
•
Sales related activities
•
Research into expanding market activities in the Irish market
•
Research into existing markets, for existing products
•
Activities relating to export aid, for example any support towards the setting up of a permanent overseas
office, the setting up of a distribution network or any costs which could subsidise the unit costs of the
final product or service.
3.3
Ineligible Costs:
•
Relocation costs
•
Visa and other documentation costs
•
Renting an office in an existing market
•
Any costs related to the establishment of a distribution network
3.4
Funding Levels
Funding will be by way of grant. The maximum level of grant support per project is up to €150,000 up to a
maximum grant rate of 50%. There is no limit on the number of applications for which a client can seek
support. Current “Value For Money” (VFM) measures (e.g. cost per job) will apply.
4.
APPLICATION PROCESS:
4.1
Application Documentation
The following documents need to be completed by the client and submitted to CSU@enterprise-ireland.com
to constitute a valid application:
•
•
•
Application Form - The application form for Market Access Grant is not available on the Corporate Site.
Following discussion with the client, the DA should forward a copy of the application form to the client
for completion.
Annual Audited Accounts
Latest Management Accounts
Please note that if a consultant is assisting the client in the preparation of the application that the final
submission to CSU needs to be made by the company seeking support.
The Start date of the project is the date of receipt of application by CSU. Any costs incurred by the company
prior to this date will be deemed ineligible.
The company will need to specify milestones in the completion of the project and these must relate to the
stated aims of the grant, i.e.
1. Detailed validation of the target market to be undertaken
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2.
3.
4.
5.
Development a “Go To Market” strategy
Validation of potential opportunities with target customers / partners
Development of a detailed sales and marketing implementation plan
STANDARD CONDITIONS IN THE LETTER OFFER:
1.
2.
3.
Prior to the release of grant payments in excess of 50% of the total amount approved, the company
shall submit an interim report on the project and Enterprise Ireland’s [XX] Department to be satisfied
with the interim report”.
Where a specific consultant is not named in the application, (whether based in Ireland or the overseas
market(s)), the Company shall, prior to a consultant being appointed to the Project, provide Enterprise
Ireland’s [XX] Department with details of the consultant to be engaged and the daily rate to be paid.
Appointment of the consultant is subject to Enterprise Ireland’s [XX] Department being satisfied with the
daily rate and that the consultant(s) is suitably qualified.
Prior to the purchase of any report in respect of the Project, the Company shall advise Enterprise
Ireland’s [XX] Department of the provider and the scope of the materials/collateral costs and Enterprise
Ireland’s [XX] Department shall be satisfied that the report is in in line with the Market Access Grant
approval.
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Appendix 1: 5 Stages of Market Entry
The following diagram shows how the Market Access Grant will support clients.
Stage
1
Supporting Clients Using
the Market Access Grant
Task
Outcome
Related Costs and Activities
Research to determine
Market opportunity
Consultant
market opportunity in a
identified and
Co staff in market*
specific market
validated
New recruit in market *
Co staff seconded to project in
Ireland *
Procurement of research reports
and databases
2
Research to identify
route to market
Route to market
identified
Consultant
Co staff in market *
New recruit in market *
Co staff seconded to project *
Procurement of research reports
and databases
3
Research to identify
partners
Channel to market
identified
Consultant
Co staff in market *
New recruit in market *
Co staff seconded to project
4
Identify potential end
customers
Target customers
identified and
quantified Specific
market opportunity,
product/service
solution proposed
and validated
5
Market Development to
create tools and
processes to deliver an
implementation plan
Detailed sales &
marketing
implementation plan
for target market[s]
completed
Consultants *
Co staff in market *
New recruit in market *
Own staff seconded to project*
Key manager
Business links programme
CRM management and training
Database development
Customer value proposition
developed by consultant
Trade fair
IP protection costs
Online development costs
Collateral development costs
PR development costs/Interpreters
6
Implementation of
Marketing Plan
Evaluation
Sales generation
Ineligible for Support
* Includes costs such as rent, travel subsistence etc
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