SUSTA ~ INsight March/ April 2009

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INsight
SUSTA's INsight newsletter is published every two months.

March/April 2009 INsight excerpts

Trade Show Budget Strategies
Close Deals at Overseas Promotions.
Branded Update: Trade Show Exemption
Branded Program to Keep Diversified Products in 2009
Malaysia Eats Up Western Cuisine

January/February 2009 INsight excerpts

November/December 2008 INsight excerpts

Trade Show Budget Strategies

If your boss, or your boss's boss, demands that you cut your budget by 5% or 10% or even more, what would you cut first?

Here are some tips industry veterans shared that can give you a place to start - and where not to cut first:

If you've measured your trade show program's performance and can prove its success, be vocal about advocating for your program - don't just take proposed blind cuts lying down. "Measurement is your friend" as those who measure are twice as likely to keep their budgets. Your corporate executives may want to reduce costs, but they will also recognize the value of bringing in revenue at a good return on investment.

Don't panic, keep your head and you will survive this downturn.

Recognize that if there are fewer attendees at a show, the tire-kickers will be weeded out, so the higher-quality attendees will remain. Your booth staffers will have an easier time getting higher-qualified leads.

Trim booth space at bigger shows - especially if there are fewer attendees expected.

Eliminate under-performing shows - assuming you've been measuring already and know which shows bring the least return for the cost.

Rent your exhibit properties to avoid large capital expenditures and add flexibility.

Move more towards modular exhibits to lower shipping, drayage, storage and refurbishing costs, plus provide greater flexibility to adapt to changes.

Don't cut booth staffers unless you really expect to have too many in your booth. For example, if you have a show where it costs you $50,000 to exhibit, and you trim 2 of your 8 staffers to save $2,000, you will cut your costs by only 4%, ($2,000 divided by $50,000) but potentially trim your leads by 25% (2 divided by 8). That decreases your ROI with minimal savings.

Similarly, don't automatically cut your pre-show and at-show promotions budgets unless you have been measuring and know they don't bring much impact compared to their cost. For example, if promotions have been only 10% of your budgets but bring in an additional 30% of your qualified leads, then trimming your promotions will actually reduce your ROI.

Write a brief of your measurement objectives before your show - and share it with your exhibit house. You'll be on the same page before starting design - and be more likely to get an exhibit that helps deliver the results you need.

Extend your exhibit's reach before and after the show by setting up an event and exhibit-specific micro-website that previews what attendees will see, allows them to set up appointments before the show, and stays up after the show is over.

~Used by permission of Skyline Exhibits, www.skyline.com

Close Deals at Overseas Promotions.

Some companies might consider scaling back their marketing and promotional activities in the face of a tough economy in the U.S. and throughout the world. But savvy business owners know that when everyone else is cutting back, it can be their company's chance to shine. If you are looking for ways to stand out from the competition and find new business in 2009, check out www.susta.org/events, where we are listing more promotional opportunities than ever before for firms that are ready to go international. With trade shows, missions and other promotions in over 30 countries, you are bound to find the ideal opportunity to take your products global and increase export sales!

A sampling of our upcoming events include:

Africa
Agrifood Manufacturers Expo
HACE Trade Show
Asia
Seoul Food and Hotel
Food Taipei
Food and Hotel Malaysia
China Alligator Skin and Hide Trade Mission
Food and Hotel China
IFE India
Europe
Russia Alligator Trade Mission
Le Show Moscow
Sweet Eurasia
World Food Moscow
Anuga
Latin America
Vinitech America Latina
Expo Retail Chile
Middle East
Food Arabia Trade Show and Mission
Pacific Rim
Hospitality New Zealand
Fine Food Australia

.Or Let Us Bring the Buyers to You!
Other events will bring foreign buyers from all over the world to the United States to meet with suppliers at major trade shows, as well as in cities throughout our region. Don't miss your chance to meet with buyers close to home at these shows and reverse trade missions (RTMs):

American Food Fair-NRA
Germany-Austria Reverse Trade Mission
Hong Kong Reverse Trade MissionM
Mexico Reverse Trade Mission
India Reverse Trade Mission
Korea Reverse Trade Mission
New York Fancy Food
Tourism Turf Reverse Trade Mission

Look for more details on the Events page at www.susta.org, and in our monthly Email Updates. Upcoming promotions are added frequently and details do change, so search the calendar at least once a week to see if any new events have been added for the markets you want to target. Some participation fees are eligible for 50% reimbursement under the Market Access Program Branded, which matches the cost of participants' expenses for exhibiting at and traveling to international trade shows, as well as other marketing activities. Contact SUSTA's office to learn about more opportunities to connect with buyers, or to inquire about the MAP Branded reimbursement program.

Branded Update: Trade Show Exemption

The graduation exemption for Branded companies exhibiting at select international trade shows has been extended for the 2009 program year. While companies graduate from a country market after receiving Branded reimbursement in that market for five years, there are certain trade shows for which Branded participants may still use funds after the graduation period has passed. Some of these major world trade events are Anuga, IPM, Gulfood, FOODEX and HOFEX. A full list of these shows can be downloaded at www.susta.org/map_news.html, or you may request a copy of the list from the Branded Department.

Branded Program to Keep Diversified Products in 2009

The Foreign Agricultural Service has notified SUSTA that companies with Diversified Agricultural Products (DAP) are eligible for the 2009 Market Access Program Branded. While company approvals are made on a case-by-case basis, suppliers promoting the following product types may apply for Branded funds under DAP:

Personal care/health and beauty products

Energy-related products

Alternative building materials and interior furnishings

Products must be derived from agricultural sources, and their content must be at least 50% U.S. agricultural origin. Like other food and agricultural products that qualify for the Branded program, DAP items must be promoted under a brand name and identified as "Product of the U.S.A." or "Made in Louisiana." DAP products must also be non-durable, meaning that they need to be replaced within three years.

Companies interested in learning more about applying for Branded funds under DAP should contact Deneen Wiltz, Branded Program Director, to discuss product eligibility and the application process. Applications from DAP companies, as well as other Branded-eligible suppliers, are still being accepted for the 2009 program year. The Branded application, as well as more information about eligible products and activities, can be found online at www.susta.org/services/map.html.

Malaysia Eats Up Western Cuisine

Malaysia is currently the eighth-wealthiest nation in East Asia and boasts an affluent economy that grew by 6.3 percent in 2007. Malaysia's food service sector has been growing at a rapid rate of nearly 7 percent annually over the past five years and is currently valued at $5.5 billion. As consumer spending on imported food and beverage products increases, the market is forecast to grow by 7 to 10 percent over the next three to five years.

Food trends in Malaysia vary widely, as the 27.7 million residents of this diverse nation dine out on a regular basis. The country's cuisine style is heavily influenced by neighboring Asian nations, creating a unique mixture of Chinese, Indian, Malay and Middle Eastern cuisines. The diverse consumer base, comprised of both young, urban residents and nearly 21 million tourists yearly, favors a variety of food products from local street vendors, cafes, food courts, restaurants, bars and fast-food or other restaurant chains over pre-packaged convenience or grocery store items. The rapid modernization of Malaysia has influenced the urban community, tourists and business travelers to demand more variety in their food and beverage products, leading to an increased interest in Western-style cuisine from Australia, Europe and the United States, offered through chain and fine dining establishments.

Fine dining establishments are typically reserved for special occasions in Malaysia. The festival months from October through February are a popular time of year for upscale dining, when restaurants aim to showcase diverse ingredients and dishes. Private catering business also increases around the busy festival season, and both restaurant and catering contacts can be valuable assets for southern U.S. exporters interested in this market. Executive chefs, who have a heavy influence on buyer purchasing decisions, are also important contacts in Malaysia's food sector. Malaysian buyers prefer fresh, specialty and exotic ingredients.

The Food and Hotel Malaysia trade show takes place just before the festival season, and SUSTA's pavilion will offer an opportunity for southern U.S. suppliers to make contact with Malaysian buyers and chefs. Visit www.susta.org/events for details on this activity, as well as other upcoming activities in Asia. To find more information on the Malaysian market, visit the Foreign Agricultural Service's website at www.fas.usda.gov and search Attaché Reports under Market and Trade Data.

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