A key component of any exporter's business plan is market research. Exporters use market research to gain critical insights into the unique nuances of their respective industries and to gauge receptivity of their products in foreign lands.

An earlier article (May/June INsight 2005) explored the benefits of secondary research, which involves gathering data from existing sources, such as government sources, published sources and commercial sources. This article will explore the unique benefits of primary research, which is the gathering and analyzing of data compiled firsthand from key sources through surveys, in-depth interviews, focus groups, and other methodologies.

Primary research is uniquely effective for gaining in-depth knowledge of the attitudes and behaviors of particular groups, such as buyers, importers and foreign consumers. Primary research provides answers to key questions pertaining to such issues as the market environment, promotions development and tracking, optimal price structures, and product development/refinement for specific markets.

The following are examples of knowledge that can be gleaned through primary market research.

Understand Which Categories Have Room For New Product Entries. As tastes and preferences change, it is important to anticipate trends. This is one of the most difficult challenges for exporters, and one that can be greatly facilitated by market research. Proper research is critical to understanding where consumer demand has been either unaddressed or insufficiently met by existing products. Research might focus on entire consumer groups or select sub-groups and might also include buyers to arrive at critical insights on where opportunities exist.

Understand What Motivates Buyers in Selected Markets. Previous research conducted for SUSTA suggests that American companies on average may not sufficiently consider cultural differences when approaching potential buyers overseas. Additionally, there appears to be insufficient involvement by some suppliers in working closely with importers as partners in product promotion. To gain insight into these and other important considerations for successful importer-exporter relationships, in-depth interviews may be employed with potential buyers and foreign attachés in targeted markets.

Price Products for Maximum Profit While Sufficiently Motivating Demand. The old adage, "Price your product according to what the market will bear" is good advice but not very specific. Pricing considerations obviously are highly market dependent. Understanding foreign demand and competitive pricing is critical for successful and ongoing exporting efforts. To uncover optimum price levels, price elasticity studies are employed to derive a pricing that will maximize profit potential while stimulating demand.

Assess Promotional Effectiveness and Return on Investment. Market research can help businesses refine and target their promotions to deliver more effective promotional campaigns. Research may be conducted to understand the key factors for effective trade shows, invitation-only banquets and dinners. Business to business communications, such as collateral pieces and advertising, can also be refined through market research to deliver maximum appeal and effectiveness. Finally, by monitoring promotional executions, assessments can be made as to their level of effectiveness on motivating buyers.

As a final note, the wise exporter does not rely on a single research project to guide his business decisions for perpetuity. It is important to keep a thumb on the pulse of the industry across the globe. Periodically monitoring targeted markets and re-evaluating action plans are keys to staying on top of the ever-changing export industry.

~Article by Focus Research, Inc.
www.focusresearchinc.com

Two recent events in Central America spotlighted Sureña (southern) products as part of SUSTA's Central America Initiative. A constraint when approaching consumers in Central America is the lack of information regarding the uses of many products we introduce. SUSTA seeks to familiarize consumers with the uses and quality of southern U.S. products through cooking demonstrations and tasting events.

In October 2005, a menu promotion at the Abbracci de Icarus restaurant (www.abbracci.net) at Plaza Itskatzu highlighted southern cuisine. Plaza Itskatzu is considered one of the best restaurant areas in San José, Costa Rica. Leveraging a relationship forged during the 2004 Culinary Training program, SUSTA obtained the assistance of Chef Henry Arguello, director of the Escuela Gourmet ARCAM, to serve as a menu consultant and to train restaurant personnel. A buffet of eight main dishes and two desserts featured southern cooking styles, including Low Country, Creole, Cajun, Tex-Mex, and Barbecue. To enhance the southern experience, the restaurant was decorated with "Sureña" signs and a jazz band performed during the event.

Nearly 50 buyers, media, and other industry leaders attended the event, which focused on establishing direct contact with the local importers, especially representatives from supermarkets, and introducing them to southern U.S. food. The group included representatives from key supermarkets including Automercado (a high-quality products chain) and CSU (the largest chain in the country).

Samples from eighteen southern U.S. companies were featured in a tabletop display. The menu promotion was a success - diners reported that the food was excellent, the chefs were impressed with the products, and guests took samples back to their offices to review in detail. Additionally, the Abbracci restaurant will introduce southern U.S. dishes to their menu.

Southern U.S. cuisine was also showcased in September at the Expo Hoteles y Restaurantes (EXPHORE) trade show. SUSTA's Central American Initiative team exhibited products from the region and offered samples to visitors during the show. About one-third of the 3,000 managers, distributors, vendors, and suppliers attending EXPHORE visited the Sureña booth to learn about products and watch Louisiana Chef Roy Lyons prepare southern dishes. Visitors were attracted to the booth by the scents of jambalaya, fish, fried chicken, shrimp étouffée, and ribs. The Sureña booth also attracted visitors with U.S. branded foods, including cheese, cookies, crackers, candy, and ham. Many visitors who were unfamiliar with southern food were introduced through Chef Roy's culinary flair and SUSTA's presence at the show.

Since southern U.S. products are new to the market, SUSTA's Central America Initiative will educate key audiences on the quality and uses of products from the region. The promotions at Abbracci and EXPHORE introduced southern U.S. cuisine to the Central American palate.

The SUSTA staff would like to thank all of the individuals and organizations that contacted us through hundreds of emails, telephone calls and mail.

Your expressions of concern, prayers and offers of assistance are deeply appreciated, and we will be forever indebted to all of you.

We would especially like to thank the people at FAS and to the associates MIATCO and Food Export USA-Northeast and state representatives of their regions for their direct assistance. Your actions truly epitomized the strengths and brotherhood of the people of the United States of America.

Although Chinese consumers are interested in American food, their awareness of southern U.S. products is limited. In cooperation with SUSTA, Vivian Xian of the FAS Agricultural Trade Office in Guangzhou led a media team on a tour of the U.S. in September 2005. The trip offered an opportunity for the Chinese media team, including representatives from Hotel Yummy magazine and Guangdong Television, to acquire first-hand knowledge of the diversity of cuisines and products from the region.

The team toured restaurants, farms, and food manufacturers in Atlanta, Georgia, Oklahoma City, Oklahoma, and Louisville, Kentucky. One of the trip's highlights included a tour of the expansive Georgia State Farmers' Market by the Georgia Department of Agriculture. The Farmers' Market is similar to the Jiangnan Market in Guangzhou, one of the largest in mainland China. The main difference between the two markets is that instead of functioning through a walk-in format, most of the business at the Georgia State Farmers' Market is conducted over the phone or through an online ordering system.

The Oklahoma Department of Agriculture coordinated a tour of Chef Kurt Fleischfresser's restaurant and a visit to a Slow Food USA Fall Picnic - a great follow-up to SUSTA's 2004 Southern Food Promotion in Guangzhou, in which Chef Kurt was featured. The media team met Chef Kurt as he prepared food in the context of the southern town of Oklahoma City.

In Kentucky, the team learned about Bourbon distilleries and was taught to use bourbon in cooking. Thanks to the Kentucky Department of Agriculture, the team better understands the process behind bourbon, a product growing in popularity in China.

Through the cooperation of the Georgia, Oklahoma, and Kentucky Departments of Agriculture, the visiting media team gained insights into the quality, safety, and taste of cuisine from the southern U.S. Extensive coverage of U.S. food products and regional cuisines will be featured through a series of television program and magazine articles in China.

SUSTA would like to thank the Georgia Department of Agriculture for arranging a program for the South China media team with very short notice. The team was originally scheduled to visit New Orleans, but due to Hurricane Katrina, SUSTA made last minute changes to the itinerary.

Upcoming Generic industry promotions in the SUSTA region are listed at www.susta.org/events_2005.html.

The SUSTA staff and office have weathered Katrina and we have returned to our normal offices at the World Trade Center in New Orleans. We were fortunate in that the entire staff has been able to return to New Orleans and all of our personnel are working full time on MAP and EMO programs.

Please direct all future correspondence to our normal New Orleans location:
SUSTA
2 Canal Street, Suite 2515
World Trade Center
New Orleans, LA 70130
Telephone: (504) 568-5986
Fax: (504) 568-6010

We have placed the highest priority on the processing and payment of MAP Branded claims, and being back in our permanent offices will allow us to work more efficiently and effectively.

SUSTA has also been notified that with the passage of the MAP program to its full authorized level of $200 million for this fiscal year, we will be receiving additional funding for our MAP programs. We are continuing to accept and process MAP Branded applications and urge all southern companies that qualify for the MAP Branded program to submit their applications and/or talk to our Branded department. Please see page 7 for program updates. Information about MAP Branded eligibility and the application process can also be found at www.susta.org/services/map.html.

Canadian International Food & Beverage Show
Toronto, Canada
February 19-21, 2006

Companies seeking to enter the Canadian market are invited to exhibit in SUSTA's pavilion at the 2006 Canadian International Food & Beverage Show (www.crfa.ca/tradeshows/foodbeverage). The show attracts buyers from the foodservice, retail and wholesale sectors, presenting a ripe opportunity for exporters to gain exposure in this market. In 2003, Canada imported over $9 billion worth of U.S. agricultural products. Canadian per capita consumption of red meat, poultry and fish exceeds 200 pounds per year, and the growing trend of grilling these products creates an opportunity for suppliers to introduce sauces, seasonings, and other condiments to consumers. Participants in the SUSTA pavilion will receive booth space at the show, as well as the benefits of the Canada Connect program, such as a pre-show briefing, matchmaking with key distributors, and trade leads. For more information, contact Ms. Cindy Martel (cmartel@ag.state.wv.us), Jeff Justice (jeff.justice@ncmail.net), or Terry Ovalle (terry.ovalle@agr.state.tx.us).

Monterrey Retail Business Encounter Mission
Monterrey, Mexico
February 2006

Mexico is the United States' third largest commercial partner, importing $8 billion in U.S. agricultural products in 2002. The full implementation of NAFTA and the modernization of the country's distribution network and financial system make Mexico an attractive market for U.S. exporters. SUSTA will sponsor a trade mission to Monterrey in February 2006 to bring together U.S. suppliers and Mexican buyers. The mission will include a seminar and tabletop display, as well as prearranged one-on-one meetings. A reception featuring southern dishes prepared by a SUSTA chef will highlight the quality of U.S. products and methods of preparing them. Suppliers that attend the show may display products for free. Companies that do not attend may send product samples and literature for SUSTA representatives to display for a $100 fee. These suppliers will receive trade leads from the event. Contact Carmen Arjona de Rukos (ladeptag@sureste.com) or Erica Skrine (eskrine@agr.state.ga.us) for more information about this activity.

Eastern Europe Retail Promotion
Brno, Czech Republic
March 2006

Poland and the Czech Republic have over 55 million inhabitants, half of whom are under the age of 40. These younger consumers seek quality and brand-name products, which are imported and sold in foreign-owned hypermarkets. SUSTA will exhibit at the SALIMA trade show in Brno, Czech Republic, from March 7-10 to increase industry awareness of products from the southern U.S. An in-store promotion is also planned for this region, where SUSTA will target retail consumers with demonstrations, signs, recipe cards and product samples. For more information, contact Corry de Wit (georgiausagcdewit@arcadis.be).

Reverse Trade Missions to Boston Seafood Show
Boston, Massachusetts
March 11-13, 2006

SUSTA will sponsor two reverse trade missions bringing buyers to the International Boston Seafood Show (IBSS) (www.bostonseafood.com) to meet suppliers of fish and shellfish from the southern U.S. On March 11, the day before the show, SUSTA and other cooperators - including MIATCO, WUSATA, Food Export USA, the Alaska Seafood Marketing Institute, the Catfish Institute, and the FAS Agricultural Trade Office in Paris - will host 25 seafood importers from around the world. The buyers will be matched with U.S. suppliers for one-on-one meetings based on product interest. A seafood showcase center will feature a variety of high-value U.S. fish and shellfish, for viewing by buyers.

SUSTA will also host a group of 10 Korean buyers for a reverse trade mission during the Boston Seafood Show. U.S. suppliers can make direct contact with these leading seafood buyers during pre-arranged meetings at the show and site visits in the SUSTA region afterward. For more information on both of these missions, contact Shirley Estes (sestes@vaseafood.org).

Food and Drink Expo
Birmingham, United Kingdom
March 19-22, 2006

This year marks the debut of SUSTA's new Southern Originals pavilion at four regional trade shows in the European Union. Suppliers who exhibit with SUSTA will receive a turnkey package of trade show services designed to help convert leads from the show into sales. Participants will display products in a highly visible and attractive pavilion, and will benefit from pre-show activities, strategic support, and post-show follow-up from a SUSTA in-market representative. The $4,500 participation fee is 50% reimbursable for companies enrolled in the MAP Branded program. For more information, contact Victoria Mejia (vmejia@neo.rr.com).

Canada/South Florida Agribusiness Trade Mission
Miami, Florida
March 27-April 1, 2006

Miami-Dade College will sponsor a trade mission bringing together Canadian buyers and U.S. suppliers of both horticultural and food products in Miami. U.S. suppliers of interiorscape plants as well as food and beverages are invited to attend a reception and dinner on March 27, followed by three days that will include briefings, one-on-one meetings, and networking with Canadian buyers and other suppliers. For more information, contact Evelyn Benson of the Florida Foreign Trade Association at (305) 471-0737 or Alejandro Gonzalez of the Foreign Agricultural Service at (416) 646-1656.

European Seafood Exposition
Brussels, Belgium
May 9-11, 2006

European demand for fish and shellfish makes the E.U. the world's third largest consumer of seafood. In 2003, the U.S. exported $625 million in fishery products to Europe, $3.1 million of which was edible. To make the most of this opportunity for southern U.S. seafood exporters, SUSTA will exhibit for the tenth year at ESE, the largest seafood event in the world (www.euroseafood.com). Participants in ESE's 2005 edition reported over 700 trade leads gathered at the show, including 65 among SUSTA participants alone. Suppliers who exhibited with SUSTA in the pavilion made $2 million in sales immediately after the show and anticipated $44.1 million in sales over the next year. To participate, contact Dot Williamson (williad@doacs.state.fl.us) or Shirley Estes (sestes@vaseafood.org).

With a growing population and an abundance of restaurants and five-star hotels, Hong Kong and China are appropriate locations for SUSTA's foodservice promotion, in its third year. Recent activities occurred in Hong Kong, Shanghai and Guangzhou, China.

Three Chinese consultants visited Oklahoma City, Oklahoma and Charlotte, North Carolina in September 2005 to learn about foodservice products from the southern U.S. The Chinese consultants met with producers and exporters during one-day sessions in the respective cities.

Upon their return to Asia, the consultants provided SUSTA a list of products that have good market potential. The chosen products were shipped to Hong Kong for a seminar, which took place September 27. A Chinese chef prepared the products at the Hong Kong Jockey Club for a well-attended event. Chinese importers took interest in U.S. soy products and seafood.

The second sets of seminars were held in Shanghai and Guangzhou, in October. The Shanghai seminar featured a U.S. chef and a local Japanese chef from a 5-star hotel. At the Guangzhou seminar, SUSTA's U.S. chef and a local chef from Hong Kong prepared several dishes using the imported products.

The participating suppliers, who sent product samples to the event, received trade leads from interested importers and distributors.

China presents U.S. exporters with abundant sales opportunities. In recent years, U.S. products have been accepted by Chinese traders and have developed a reputation of high quality. Under SUSTA's China Initiative, our in-country representative Shanghai Shengming Company offers market entrance services to educate U.S. exporters about China and identifies market opportunities.

Two such opportunities arose in November . With the support of Shanghai Shengming, southern U.S. products were promoted at the China Chain Store and Franchise Association (CCHA) trade show in Beijing and the China Fishery Expo in Guangzhou.

CCFA China is one of the largest chain store and franchise shows sponsored by the Chinese association. The show's exhibitors and visitors came mainly from the local network of retailers, distributors and wholesalers. SUSTA shared a booth with sister organizations Food Export USA, MIATCO, and WUSATA. The booth educated buyers about the U.S. regions with posters and fliers. SUSTA distributed CD-Roms containing links to SUSTA's online directory of exporters.

The China Fishery Show, held November 10-13, is one of the largest and most dominant seafood shows in China. Visitors include retailers, traders, distributors, and decision makers from hotels and restaurants, and manufacturers. At the show, Guangzhou's Agricultural Trade Office shared information about networking through SUSTA's programs and distributed materials encouraging buyers to learn more about U.S. companies.

Chinese buyers were favorable to SUSTA's in-market consultant and southern U.S. food products. Both shows were determined successful in increased exposure of southern products in China. SUSTA's consultant will follow up with buyers, who expressed interest in products from the region, and SUSTA will post trade leads online at www.susta.org/foreignbuyers/trade_leads.html.

Learn more about the China Initiative and services offered by our in-market representative at www.susta.org/services/gip_china.html.

As a new calendar year begins, SUSTA's Branded Department would like to share a few tips and advice for new and returning MAP Branded program participants.

Fiscal Year-2004 Evaluations Due: End of year evaluations were emailed to participants that applied for funds and submitted expenses. Please submit your evaluation soon. The evaluations are used to gather sales information and program success data for SUSTA, which ensure that MAP funds remain available for companies in the future. Also, please contact SUSTA is you are willing to share a success story regarding your export experiences. Such narratives are submitted along with statistics to Congress and also help SUSTA obtain program funding. Contact SUSTA's Branded Department to share your success!

Fiscal Year-2005 Expense Claims: Branded claims may be submitted anytime during this fiscal year. Companies have 60 days after conducting promotional activities to submit expenses, which are processed on a first-come-first-served basis.

Extra Money Available: The USDA's Foreign Agricultural Service has granted SUSTA extra funding for the current MAP Branded program year. Both new and returning companies can visit www.susta.org and begin an online application. New companies will need to create a profile in SUSTA's online database. Contact the SUSTA office if you need assistance.

SUSTA's MAP Branded Program assists U.S. producers of high-value food and agricultural products by providing matching funds for export promotional activities. Companies can receive up to 50% reimbursement for international marketing activities. Visit www.susta.org/services/map.html#eli for a list of eligible expenses. SUSTA's fiscal year runs from October 1 to September 30. If your company is interested in applying for FY-2005 funding, however, you may be reimbursed for eligible activities that occur between the date your application is approved and the last date of this fiscal year (September 30, 2006).

If you have questions about the MAP Branded Program, contact Deneen Wiltz (deneen@susta.org) or Maria Landrau (maria@susta.org). Learn more about the program online at www.susta.org/services/map.html.

As of December 5, 2005, SUSTA has resumed operations from our usual location in the New Orleans World Trade Center. Staff members are available by telephone at (504) 568-5986 from 8:00 a.m. to 4:00 p.m. daily. Voice messages may be left on the office phone system. Staff will no longer check voicemail on the post-Katrina temporary phone numbers. Please send all correspondence, claims documentation, and faxes to our office, as mail and delivery services in downtown New Orleans have resumed.

Thanks for your support and understanding during the transitional period following Hurricane Katrina. We look forward to working with you in 2006!

SUSTA staff members are now working with the marketing representatives from the Department of Agriculture in our member states to arrange seminars and one-on-one visits with companies this spring. The visits will educate companies about Generic industry promotions, the MAP Branded program, Export Readiness Training, and other SUSTA programs for exporters of U.S. food and agricultural products.

If you would like to meet with a SUSTA representative when we visit your state, contact your local state Department of Agriculture's international marketing staff. Contact information for member states is posted online at www.susta.org/staff/index.html.