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INsight
SUSTA's INsight newsletter is published quarterly.

Spring 2011INsight excerpts

Using Social Media for International Success: Part 1
News from the North: Labeling in Canada
MAP Branded Helps Georgia Company Grow
Changes to Your Branded Marketing Plan? No Problem!
Peru TPA Boosts U.S. Agricultural Exports

Winter 11 INsight excerpts

Using Social Media for International Success: Part 1

While traditional marketing solutions like advertising, referrals and public relations are still very important to your business, social media has become a part of the marketing puzzle and can be used in some interesting and time-saving ways. Twitter, Facebook and the myriad of other social media tools can be an effective (and fun) way to reach new customers and create stronger bonds with loyal fans.

The University of Maryland's Smith School of Business recently did a study that shows the relationship between social media and small businesses and found that the technology adoption rates in the U.S. have doubled in the past year.

In an article published by social media news site Mashable, Dallas Lawrence, managing director at Burson-Marsteller's Proof Integrated Communications, says, "I think what we're seeing in the last 12 months is the trickle-down effect of social media from the major Fortune 500 and global companies who have been putting significant resources into large-scale outreach efforts. Social media really has replaced the phone book and your billboard advertising of the past - it's the easiest and lowest threshold of entry for [business owners] to do marketing."

Blogs, for example, are fast and simple to create, easily findable via really simple syndication (RSS), and can promote ongoing conversations with readers. A blog can be used to pull in new traffic and business. You can use it as a how-to guide, a showcase for new products or just a way to give your audience any new information on your industry or your business.

Microblogs like Twitter (or business versions like Yammer) are useful for quick customer support, a bit of marketing, listening to customers and link sharing. Combining a call to action with useful information, all inside 140 characters, is something that takes practice, but it is also a great way to connect and show some personality. Just make sure your tweets are not too personal.

Public networks like Facebook and LinkedIn can be used for marketing, recruitment, prospecting and brand enhancement. But you don't own the content, and it is difficult to monitor the comments your "fans" can post. It's important to add value, not just pitch your products. Facebook Fan Pages' audience consists of "fans." These are the Facebook users who have elected to "Become a Fan" of your business in order to receive updates about your company. The updates show up on that Facebook user's "wall" (a profile page) as they are added to the Fan Page. Many popular business Fan pages, including Victoria's Secret®, Toyota®, and Starbucks®, have thousands or tens of thousands of users who display Fan page updates on their walls.

Small businesses still have a ways to go when it comes to truly engaging in the realm of social media. Many small businesses think that using social media is too time-consuming, but the old standbys of emailing, phone calls and faxing take a lot of time too. Social media can not only cut down on those, but also helps you connect to a wider group of people on a more personal level.

Look for Part 2 of this article in the next issue of INSight, where we will share tips for how you can use social media to help your international bussiness efforts.

News from the North: Labeling in Canada

Canada recently announced that food manufacturers have 18 months to adhere to tighter rules dealing with the labeling of food allergens. Brewers will be exempt, but the amended rules target food allergens, gluten sources and sulfites, which will have to be clearly identified on packaging.

When the new regulations come into force on August 4, 2012, all pre-packaged foods being sold must be in compliance with the new regulations. This includes imported and domestically produced foods sold at all levels of trade in Canada.

The new regulations also require manufacturers to use plain and simple language when listing the allergens and gluten sources.

Other changes to labeling regulations include:

Mustard seed will be added to the regulatory definition of food allergens.
Spelt and kamut will be declared as "wheat" for allergen labeling purposes.
The changes emphasize the use of common names and words. For example, a label could say "soy" or "hydrolyzed vegetable protein (soy)" instead of the more vague "hydrolyzed vegetable protein."

This should help consumers that are living with deadly allergies make more responsible purchases. Health Canada estimates that five to six percent of young children and three to four percent of adults in the country suffer from food allergies.

To read more about these labeling changes, click the link to Health Canada's website on our Facebook page. SUSTA's activity managers and in-market consultants will also work with companies planning to participate in our upcoming Canada activities to make sure they are aware of these labeling changes.

MAP Branded Helps Georgia Company Grow

American Tanning and Leather Company in Georgia is not new to exporting, but each new market has its own challenges. With new markets and more sales as a result of their participation in the Market Access Program (MAP) Branded, American Tanning was able to create four new positions over the last year. In 2010, the company's overall export sales increased by 15% compared with the previous year.

Ms. Christy Plott Redd, Sales and Marketing Director for American Tanning, said that the company has also taken advantage of Generic activities to gain access to new foreign markets. "That is the way we started. We went on missions and were able to find agents in those markets. SUSTA did all of the groundwork, which really helped. The time they saved us made a huge difference."

American Tanning and Leather Company was recently listed as number 24 on the "2010 Bulldog 100" awards given by the University of Georgia Alumni to Georgia-owned companies that have had the most growth. According to Ms. Plott Redd, much of that growth can be attributed to the company's participation in SUSTA programs.

Russia, China and Italy have all been markets where they have been able to establish distributors and introduce new products with the help of MAP funding. In 2010, American Tanning reported over $34,000 in sales to Russia. They project another $50,000 in sales to the market in 2011. China is a newer market for the company but is growing quickly for them, with over $10,000 in export sales for 2010, but $100,000 expected by the end of 2011 thanks to their MAP Branded promotional activities in the market. American Tanning had established sales of more than $152,000 in Italy in 2009, and with the help of funds from MAP Branded, they reported nearly $630,000 in sales in 2010 and project $800,000 in 2011.

Ms. Redd was eager to discuss her experience: "SUSTA and its wonderful staff, along with the Florida Department of Agriculture, have been essential to our business growth. We have been pleased with both the MAP Branded and Generic marketing programs SUSTA offers, and we have seen real results that affect our company in a positive manner."

Changes to Your Branded Marketing Plan? No Problem!

So, you've been approved for Branded funds for 2011, but find that some things have changed and maybe you need to tweak your marketing plans. Did you know that you can make changes to your MAP Branded contract? We want you to get the most out of your Branded funds, so we are making it easier than ever to amend your international marketing plan. Even though the application is a contract that details what markets you plan on going to and the activities you will participate in once you are there, you can still update your plan with our quick and painless amendment process.

For instance, you may already have funds to promote your products in Canada. After just one visit, you find that things are going so well, you need to participate in more Canadian activities to really jumpstart your efforts in the market. You can submit an Activity Plan Amendment Request (APAR) to add funds to your original Branded marketing plan. Like the application, any new funds you request are subject to a 6% administration fee.

Another scenario could be that you planned to go to two different markets using Branded funds. In one country there was a natural disaster, which has stalled your promotional efforts. However, a third country is showing more promise than you anticipated when you submitted a Branded application. You can file an APAR to add this new market to your Branded plan and transfer funds that were already approved for the other country. In this case, there would be no fee for making a change to your contract.

Other reasons to submit an amendment include: adding a new Foreign Third Party contact (importer/distributor), adding new product(s), attending a new show in your market, or withdrawing from the program.

Just like the application process, to be sure you can be reimbursed, APARs need to be reviewed and approved before going forward with promotions. Amendments are usually less time-consuming and can be approved more quickly than applications.

You can download APAR forms at www.susta.org/services/map_application.html - check the bottom of the page for links to the forms that best suit your needs. Please submit amendments to Branded Program Director Deneen Wiltz at deneen@susta.org, or call 504-568-5986 if you have questions.

Peru TPA Boosts U.S. Agricultural Exports

Peru is the fastest-growing market in South America for U.S. exporters of agricultural products, with an increase of 258 percent between fiscal years 2006 and 2010. Strong economic growth in the country, a growing middle class, and stronger currency, combined with the effects of the Peru Trade Promotion Agreement, allowed the United States to surpass Argentina to become Peru's top supplier in 2010, with roughly 30 percent of the market.

Due to benefits of the TPA such as tariff elimination and phase-out, imports of some high-value products increased significantly between 2008 and 2010. U.S. pulses, poultry meat, beef and snack food exports rose and have potential for continued growth as Peru's middle class expands and the country's gross domestic product rises.

SUSTA-region companies can take advantage of the benefits of the Peru TPA during an upcoming trade mission this May focusing on value-added food products. Visit www.susta.org/events to learn more about how you can capitalize on one-on-one meetings with buyers and experience the market firsthand through retail tours organized by SUSTA representatives.

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