Category Archives: Market Intelligence

Seven Tips for Online Marketing Success in a Down Economy

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Smart companies know that the last thing you should do in a down economy, which is what builds great companies, is to stop marketing because out of sight, out of mind is never more true than it is in troubled times. Plus, with so many of your competitors blindly freezing the marketing budget, with less forward-thinking companies marketing these days, those of you who do consistently market and build a brand presence become front of mind, and the first invited to the table.

To help you get started, here are the doctor‘s top 7 tips for marketing online in a down economy.

  1. Understand Your Audience
    Who are you trying to reach? What do they look for online? Where do they go to find it?
  2. Understand the Avenues at Your Disposal
    Once you’ve identified where your audience goes, you then need to understand the audience of the sites they visit before you choose any as potential investments. For example, 50% of your audience reads CNN. Does that mean you should you advertise on CNN? Considering that CNN gets over 1,000,000 visits a day, if you have a niche product that you are targeting at 5,000 companies, this says that your audience comprises less than 0.5% of CNN’s readership on a good day. Not good odds of your ad being seen by the right individual. You want to find a site where the majority of it’s readers are from your target audience.
  3. Target Niche Sites and Bloggers
    The best way to reach your target audience is to advertise on niche sites and blogs where the majority of their traffic is your potential customer base. A blog with 10,000 unique visitors a month that likely has 70% of it’s readers in your target market is ten times as attractive as a major site with 100,000 unique visitors a month that would likely have only 0.70% of it’s readership in your target market.
  4. Focus on Building Your Brand
    It used to be all about impressions. Then it was all about clicks. Now it’s shifting to leads. But the leaders know it’s all about impressions through a trusted channel (and recent research is proving this out). There’s a difference between selling trinkets to tourists and selling enterprise software and services. The first is an impulse buy. The second is a calculated decision, after a budget becomes available, made by individuals who will not always be ready to buy when you’re ready to sell and who are very busy and likely will not have the time to research your offering when they first see your ad. That means you need them to remember your brand so that they’ll look you up when the next budget cycle comes near and they are researching the solutions they want to acquire. They’re most likely to remember you if they see your logo time and time again on a trusted site that they visit every few days.
  5. Avoid Sites with “Set-Up” or “Hidden” Fees and Prices
    Let’s face it … there’s not much work to adding your logo to a page, re-directing a URL, or cutting an invoice off of a standard agreement. The price should be all-inclusive and straight-forward, because if you can’t trust the price, can you trust the site?
  6. Look for Prominence
    Just like people will not notice your logo on a printed page with a dozen other logos crowding the page, people will not notice your logo on a crowded web-page that has more advertising than content. You want to make sure that the site limits the number of advertisers/sponsors it will accept at any one time to a small number (my recommendation is at most 7, since psychologists tell us this is the maximum number of pieces of information an average person can process at any one time in their short term memory) and that your logo is at the top of every page, because, let’s face it, most readers don’t scroll all the way down on a page that’s 3, 4, 5, or even 10 screens deep.
  7. Target the Campaign
    Use your understanding of the site’s audience to tailor welcome pages specific to what they will be looking for. And keep the content current and relevant.

Panjiva Was Right — It is Doom and Gloom!

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If you’re been following Panjiva, namely their blog, their press releases (sign up at your own risk), you know that they’ve been preaching doom and gloom for months where global trade and supplier viability is concerned. Well, this has been backed up by a recent CPO Agenda survey, summarized in their recent article on “balancing the cost-risk equation”, that found that nearly half of the respondents have already experienced the bankruptcy of at least one key supplier since the year started and that over three quarters are (very) concerned about the prospect of other key suppliers going out of business before the year is over.

In plain English, if you haven’t lost a key supplier yet, it’s just a matter of time before you do. The only question is, will you know which one before the shipment fails to arrive and the line goes dead?

Who Reads Sourcing Innovation?

Educated, informed, driven individuals like you … who care more about education, innovation, and self-improvement than the gossip of the day. You’re in good company. Last week, over a 5 day period, a sample of approximately 1,000 randomly-selected unique IPs were traced back to 888 unique organizations. Here are 88 random companies. As one smart and informed individual remarked, it’s a “who’s who of global sourcing“.

  • Aerospace Distributors
  • Alcan Aluminum Corp
  • Amazon.com
  • Ameriprise
  • Army & Air Force Exchange Service
  • AT&T
  • Bank of America
  • Bell Canada
  • Boeing
  • Canadian Tire
  • Caterpillar
  • Chevron
  • Cisco Systems
  • Computer Sciences Corporation
  • Continental Airlines
  • Cox Enterprises
  • Data General Corporation
  • Deere & Company
  • Defense Research Establishment (Canada)
  • Deutsche Post
  • Earnst & Young
  • Eaton Corporation
  • Emerson Electric
  • Ericsson
  • Fisher Scientific
  • Fox Entertainment Group
  • Fujitsu
  • General Electric
  • GlaxoSmithKline
  • Google
  • Harcourt General
  • HCL Technologies
  • Henry Ford Hospital
  • Hertz
  • Hewlett-Packard
  • Hitachi Credit America
  • Home Depot
  • Honda
  • Honeywell International
  • IBM
  • Intel Corporation
  • Johns Hopkins University
  • Johnson & Johnson
  • JP Morgan Chase & Co.
  • Kohler Company
  • KPMG
  • Kodak
  • Kroger
  • Loblaws Companies
  • Loyola University Chicago
  • MIT
  • Merck and Co.
  • Molson Coors
  • Motorola
  • NBC Universal
  • Nordstrom
  • Northrop Grumman
  • Oracle Corporation
  • Oxford Brookes University
  • Perseco North America
  • Pratt & Whitney Canada
  • Praxair
  • Raytheon Company
  • Research in Motion
  • Rhodes University
  • Royal Melbourne Institute of Technology
  • Samsung
  • SAP
  • SAS Airline
  • Schneider National
  • Shell
  • Siemens
  • Solar Turbines, Inc.
  • Sony
  • Staples
  • Sun Microsystems
  • Suncor
  • Tata
  • Texas A&M University
  • Time Warner Telecom
  • United Nations Office
  • United Parcel Service
  • University of California
  • Uponor
  • Virgin Media
  • Wachovia
  • Wal-Mart Stores
  • Whitepages.com

Like you, these readers are globally focused … and global. Even though about 95% of Sourcing Innovation’s readership, as you would expect, is from North America, Europe, and Asia, in that order (in a rougly 63%, 17%, 15% split), Australasia, South America, and Africa are also increasingly represented. In fact, the last month saw traffic from 168 countries.

SI’s readers are also numerous (and growing monthly). On an average day, around 1,000 of your intelligent and innovative peers will visit Sourcing Innovation, and in an average month, at leat 11,000 of your global counterparts will be here with you, collectively hitting the site about 150,000 times. (And, as I’ve pointed out before, that traffic is on par with many of the “leading” publications in the space, and was enough to secure Sourcing Innovation top blog on three of the five top external traffic ranking sites. See the archived posts, linked on the sidebar.)

I’ve seen some ridiculous claims on websites about readership levels, which is a shame, because it penalizes those of us who provide accurate data. For example, if a site that publishes new content daily claims to have a regular readership of 10,000, yet it only gets 20,000 hits a month, that says the “average” reader only visits the site 2 times a month, which makes no sense. Remember, the numbers have to add up and make sense. If they don’t, they’re just wrong.

I’ll outline in my next post about how to make sense of the confusing jumble of web statistics thrown at you. In Sourcing Innovation’s case, the “average” reader visits 2 to 3 times a week and accesses about 10 pages a month. Most accesses are home page accesses (which allows the reader to catch up on all the posts since their last access). This is about the regularity you’d expect from experienced and informed supply chain leaders who are too busy to spend a lot of time reading blogs, yet take the time to make Sourcing Innovation an integral part of their news, research, and continuing development efforts.

FTZs Help U.S. Companies Save Millions During Tough Economic Times

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Today’s guest post is from Matt Gersper, founder and president of Global Data Mining.

While no one likes difficult and tough economic down cycles, periods like the one we’re in now serve the useful purpose of helping companies increase their focus on business process improvement — for example, by exposing inadequate global trade processes in order to improve them. Global trade, despite the current downturn, is in a long-term growth cycle. Combined U.S. imports and exports increased from under 100 billion dollars in 1968 to nearly 3,500 billion dollars in 2008 — with almost half that total growth occurring in the last decade.

Given this reality, it’s critical that business executives and global trade directors leverage current economic challenges to create fast and significant international trade process improvements, carefully investing limited capital in those areas where it can get the biggest bang for the buck. One excellent way to do this is by taking advantage of the U.S. Foreign-Trade Zone (FTZ) program.

Analyze Your Trade Data

“Foreign-Trade Zones can save U.S. importers millions of dollars and will often improve the speed of the supply chain,” explains Tommy Berry, President and CEO of PointTrade Services. Berry has been involved in more than 150 FTZ sites in 29 states, helping his clients save hundreds of millions of dollars over the past 20 years.

Is your company a candidate for such savings? The first step in finding out is to get hold of your own trade data. Many companies don’t realize they can order a data file with a complete five-year history of all their U.S. import transactions for $500 or less. The necessary forms can be downloaded for free at the Global Data Mining (GDM). Companies like GDM can then analyze your data to calculate the potential savings you would have realized had your company operated in an FTZ over the past year.

The trade data experts at Global Data Mining have analyzed more than three million U.S. import entries that collectively represent over $159 billion in import value — and have identified billions of dollars in potential savings for their clients. Using a repository of trade data analytics that is not limited to FTZs, they have developed nearly 60 unique reports that can analyze your trade data, quantify opportunities, identify required resources (both internal and external), quantify costs and calculate the return on investment (ROI).

Making the FTZ Business Case

What kind of savings are we talking about? Figure 1 (below) illustrates the projected savings realized from utilizing an FTZ for a company with $100 million in annual imports. Estimated savings in the first year alone in this example exceed $1,500,000. This total comes from the following: broker fee savings: $129,800; merchandise processing fee (MPF) savings: $274,780; duty deferral savings: $900,000; and re-export savings: $250,000.

On top of that, ongoing annual savings are estimated at nearly $700,000 without even counting potential savings from inverted tariffs; duty elimination on waste, scrap, and yield loss; security and insurance savings, and inventory tax savings.

Figure 2 (below) illustrates the estimated costs and ROI. “In the first year,” says Berry, “this company would need to invest $336,500 and $162,000 a year after that.” “However,” he adds, “the ROI on this investment would amount to $1,218,080 in the first year and $528,580 annually after that.” That’s a first year return of $3.62 for every $1 invested in setting up an FTZ. “Your CFO is not seeing deals like this every day!” notes Berry.

Building the Database

One key to gaining the full benefits of an FTZ — or any other international trade process improvement — is making certain that you have effective parts master database management. That means answering questions like: What data is required? What data currently exists? Who “owns” the different data elements? Where does the data reside today? In what format? Where should the data reside for the future solution? How will it be validated? How will it be integrated? How will it be updated?

Executive Leadership

To survive in this challenging economic environment, business executives and global trade directors need to upgrade and optimize inefficient international trade processes. Doing so will reduce duty spend, accelerate supply chain speed, improve compliance, mitigate risk and improve executive visibility. Global trade remains among the last frontiers of corporate process improvement. A one dollar investment in this area can return $5, $10 or even $20. Imagine the impact returns of this magnitude could have on your 2009 and 2010 business plans.

Thanks, Matt.

Figure 1. Analyzing the Data: Direct Financial Benefits
Fact Pattern Assumptions 1st Year On-going
Regular 1529 Entries 1,500 entries
Estimated average broker fee per entry: $90 1,500 x $90 $135,000 $135,000
52 x $100 (with weekly entry) ($5,200) ($5,200)
Broker Fee Savings $129,800 $129,800
Estimated average MPF per entry: $200 1,500 x $200 $300,000 $300,000
52 x $485 (with weekly entry) ($25,220) ($25,220)
MPF Savings $274,780 $274,780
Imports: estimated $100 million
Average Inventory: estimated $36 million Cost of Capital: 4%
Average Duty Rate: 2.5% $36 million x 2.5% $900,000 $36,000
Re-export: estimated $10 million
Re-exports average 10% of total imports $10 million x 2.5% $250,000 $250,000
Estimated 1st year savings in an FTZ $1,554,580
Recurring annual savings estimate
(assuming same volumes)
$690,580
(Source: Global Data Mining)
Figure 2. Making the Business Case:
Estimate Costs to Create True Return on
Investment
Fact Pattern Assumptions 1st Year On-going
Estimated Set Up Costs:
FTZ Application-PTI Consulting Fee Application/activation $100,000
Continued FTZ/Customs consulting $20,000
FTZ Board Filing Fee $6,500
FTZ software license/installation $100,000
Maintenance fee yearly $10,000
Ongoing automation FTZ/Customs system $15,000
FTZ Administrative Staffing:
In-house 2 people
FTZ administrative management
services (PTI)
$25,000 $100,000
FTZ Grantee Fees (TBD) (TBD)
(one-time costs + annual fee)
Miscellaneous travel expenses, etc.
Mass Class TM Trade Data Services $100,000 $15,000
CI Alerts $2,500 $1,000
TI Alerts $2,500 $1,000
Costs/Expenses $336,500 $162,000
Estimated Net FTZ Savings vs. non FTZ
environment
$1,218,080
($1,554,580 – $336,500;
see Figure 1)
$528,580
($690,580 – $162,000;
see Figure 1)
(Source: Global Data Mining)