Breaking into the
American Technology Market
An Essential Guide for Foreign Manufacturers
Breaking into the
American Technology Market
An Essential Guide for Foreign Manufacturers
© 2012 Global Marketing Partners, Inc.
No part of this eBook may be reproduced in any matter without the
express written
consent
Global Marketing
Partners, Inc.
© 2012
GlobalofMarketing
Partners, Inc.
No part of this eBook may be reproduced in any matter without
the express written consent of Global Marketing Partners, Inc.
Disclaimer
This guide was written based on a several decades of combined
experience in launching thousands of products through hundreds of
companies in the channel. While we hope this guide is helpful and offers
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vary widely, so use any advice provided here at your own risk.
The American IT Supply Chain
2-Tiered Distribution Channel
The “channel” - the two-tiered (wholesale) distribution supply chain. In this chain, manufacturers sell
information technology (IT) products to distributors who sell to resellers who in turn sell the hardware
and software to end-user businesses and individuals.

GLOBAL
TECHNOLOGY
DISTRIBUTION
COUNCIL
•
•
•
•
•
•
60% of all IT products bought and sold in the U.S. flow
through the “Channel”
5 billion+ of credit extended to the IT channel each year
2 Million+ configurations annually
50,000+ individual customers monthly
150 Million+ items shipped each year
100 Million+ software licenses managed annually
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
3
Pre-Launch Preparation
Eight must-do’s before your launch (1-4)
1)
2)
Study the Market



Estimate the market size & potential
Run a Competitive Analysis
Do your SWOT Analysis
Set Goals
A Goal has: Qty, Revenue, and Date
Know where you are going before you throw yourself into the trip
3)
Fix on a Channel Sales Strategy




4)
Direct (requires extensive domestic infrastructure)
Brick & Mortar Retail (most expensive)
e-Tail (least expensive fix costs – popular for emerging vendors)
Solution Providers/VAR resellers (marketing & training at the distributor and reseller
levels)
Choose Your Target Market
Target end-user  Target Reseller  Target Distributor
Who is your customer and how will you get to them?
Carefully choose the partners with whom you will be spending your time and resources
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
4
Pre-Launch Preparation
Eight must-do’s before your launch (5-8)
5)
Develop a Marketing Plan



6)
Put together Your Financial Plan





7)
Product price strategy
Allocate resources and commit to marketing budget
Understand all your costs
Allow for Currency Fluctuations
Plan in advance how you will measure your success & ROI
Do Your Legal & Regulatory Due Diligence

8)
How will you promote your product in the U.S.? How will you support your customers?
3 layers of marketing plan: Consumer, Reseller Co-op, Distribution
Customer service and support – key to U.S. success
Patent and trademarks infringements search, get insurance. Material safety
datasheets may be necessary for transportation, find an U.S. attorney ahead of time.
Establish a U.S. Point of Presence

Third party warehouse and logistics for shipments out, returns warehouse, toll-free
customer service number , etc.
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
5
U.S. Market Expectations
What to know about Consumer Expectations
End-User Expectations

Home & SMB Consumers:
Value. Ergonomic. Compatibility. English. Support.
Warranty.
Available @ Favorite Store. Returnable.
— In Stores: Eye-catching-confidence-inducing Packaging.
Stocked Deep.
— On Internet Store: Strong Reviews. Rich Content.

Business Consumers:
— Immediate Customer Service
(preferably free)
— Easy to find “contact info” on website
(company’s address and phone #, not just an email us form to fill in)
— Downloadable Drivers
— Trouble Shooting Guide, FAQs, Usage Tips on website
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
6
U.S. Market Expectations
What to know about Packaging
Packaging Expectations

Retail Strategy
— Always invest in good design.
— Don’t get creative on size and shape
stick with the standards.
— Consider anti-theft if over $100.
— Hanging package design should also
stand-alone.

Internet/VAR Strategy Only
— Outer box can serve as shipping to cut re-pack cost.
(but clearly marked)
— Package design shifts to inserts.
(re-confirm confidence in buying decision – avoid buyer remorse)
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
7
U.S. Market Expectations
What to know about Shipping
Shipping Expectations
Study Your Partner’s Routing Guides
(fines for non-compliance)

Bar Code: EAN/UPC Version A on all product
packaging and master cartons (www.gs1ca.org)

Packing Slip: Required w/each shipment
If the shipment has multiple Purchase Orders and/or multiple packing
slips, a Master Packing Slip is required

Minimize Small Parcel Shipments
A shipment is defined as the total number of cartons shipped on a given
day to the same distribution center from the same vendor
location. Shipments over maximum allowances should be sent via LTL.

Proper Palletization; stacking,
stretch-wrapped/banded

Use a shipping company that provides tracking on
your shipment and can provide proof of delivery.
Do not ship via Postal Service.
Avoid These
Common Errors
• Non-compliance
with Small Parcel
Maximums
• Incorrect barcode/UPC
label used on product
• Failure to provide
Packing List
• Incorrect Standard
Pallet used
• Pallet mis-stacked or
mislabeled
• Weak pallet or carton
material
• Excess or Double
Shipments
• Shipping Product to
Wrong Location
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
8
Your Website’s Channel Role
Channel Partner Expectations
 Rich Product Content Source
– 3rd party data fulfillment companies
get most product content straight
from your website
 Customer Service & Resource Center
– Contact info
– Drivers, manuals, etc.
 Drive Sales
– Direct Sales & Provide Leads to Key Resellers
(selling direct off your website weakens channel relationships and full solution sales participation)
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
9
The Distributor’s Role
In the channel
 Economies of Scale
•
•
•
•
•
One-stop source for resellers
Ship delivery on any order size
Cost effective fulfillment of Web sales
Most accurate/best in class
Breaks bulk: Receives product on pallets or case packs
then pick, pack, & ship
• Stocks Product
 Access to Resellers
•
•
•
•
•
Big distributors sell to 50,000 + U.S. resellers
Preferred source
Supplies credit on aggregate orders & consolidates payments
Serve all types of resellers
Vendor marketing opportunities to touch resellers
 Custom Reseller Services
•
•
•
•
SLA guarantees with big resellers
EDI interfaces
Custom Private Label drop ships to end-users
Pass-through marketing
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
10
Distributors
What they Expect from Manufacturers
Profit
•
•
•
•
$50 + distribution cost
Most favored nation pricing
Stable channel pricing structure
Back-end Rebates
Sales
•
•
•
•
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
Drive sales to resellers
Co-op marketing support
Minimum sell-through
Growth
@2012 Global Marketing Partners | September 2012 Edition
11
Distributors
Who’s Who and Who They Serve
Major U.S. Distribution Companies
VARs
Solution Providers
System Integrators
System Builders
Gov/Ed Resellers
B&M Retailers
e-Tailers
Internet Resellers
VARs
Solution Providers
System Integrators
System Builders
Gov/Ed Resellers
B&M Retailers
e-Tailers
Internet Resellers
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
VARs
Solution Providers
System Integrators
System Builders
Gov/Ed Resellers
CE FOCUS
VARs
Solution Providers
Gov/Ed Resellers
B&M Retailers
e-Tailers
Internet Resellers
@2012 Global Marketing Partners | September 2012 Edition
VARs & Solution Providers
Who’s Who & What They do
Major U.S. Technology VARs
VARs/Solution
Providers/Integrators
 Integrate
Solutions
 Layer Service
 Trusted Advisor
Role with
Customers
 Support B2B
Customers
Accenture
ACS
ASAP Software
Atos Origin
ADP
Axciom
BAE
BearingPoint
Booz Allen Hamilton
Brightpoint
BT Global
CACI
Capgemini Group
CDW
Ceridian
CGI Group
Cognizant
CompuCom
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
ComputerScienceCorp
Convergys
Deloitte Consulting
Diebold
Dimension Data
DST Systems
DynCorp
EDS
Fidelity
Fiserv
Galileo by Travelport
General Dynamics (AIS)
Getronics
Harris
IKON Office Solutions
Insight Enterprises
L-3 Communications
Lockheed Martin
Metavante
Northrop Grumman
NTT Data
PC Connection
Perot Systems
Qwest Communications
Raytheon Technical
Services
SAIC
Software House Int’l
Siemens IT
Tata Consultancy Services
Unisys
Verizon Info Sys
World Wide Tech
@2012 Global Marketing Partners | September 2012 Edition
13
Retailers
Internet and Brick & Mortar
Major U.S. Technology Retailers
Retail & eTailers
 Provide Traffic
(opportunity to sell)
 Merchandise
Product
 Avenue for
Promotion
 Build Brand
Awareness
Software Retailers
Electronic Boutique /
GameStop (4400+)
Computer & CE Stores
ABC Warehouse (41)
Apple Stores (125)
Best Buy (1200+)
Fry’s (34)
H.H. Greg (84)
MicroCenter (21)
P.C. Richard (51)
Mass Merchandisers
CVS (6200+)
Kroger (2500+)
Radio Shack (6000+)
RiteAid (5000+)
Target (1500+)
Walgreen's (6100+)
Wal-Mart (4100+)
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
Warehouse Clubs
BJ’s Wholesale (170)
Costco (529)
Sam’s Club (580)
Office Superstores
Office Depot (1200+)
Office Max (9000+)
Staples (2000+)
Military Resellers
AAFES (147)
EURPAC (53)
Nexcom (44)
Entertainment Resellers
Blockbuster (7800+)
Discover Channel (45)
F.Y.E. (800+)
Musicland Group (900+)
Toy’s R Us (1500+)
Virgin Megastores (11)
Internet Retailers
4Sure.com
Amazon.com
Antonline
Bestbuy.com
Buy.com
Dell
eCost.com
Gateway
Insight
NewEgg.com
Outpost.com
PC Connection
PC Nation
Zones
Scholastic
Staples.com
TechDepot
TechWave
TigerDirect
@2012 Global Marketing Partners | September 2012 Edition
NEED MORE INFORMATION ON
LAUNCHING IN THE US MARKET?
Ready to Launch in the USA?
Call Global
We can set you up with a U.S. office, get you national distribution,
design a product launch campaign and start selling your product to
resellers.
Rachel Zacharia
Business Development Manager
rachel@globalwrx.com
818.874.3216
www.globalwrx.com
Global Marketing Partners, Inc. | 28038 Dorothy Drive Agoura Hills, Ca. 91301 USA | All Rights Reserved
@2012 Global Marketing Partners | September 2012 Edition
15