Global Events Approach versus In-country Strategy
At the recent MEI conference focussing on Russia and global events, one of the presenters stressed the role played by adopting an in-country strategy when targeting global event related opportunities.
We are sure that many entrepreneurs and marketers would approve of the approach, and they would agree to dedicate resources and investment to such well-funded and “tangible” targets. The same managersmight be less enthusiastic however about allocating similar resources to development in an oversea country or specific territory. Export development is usually driven by a less pragmatic approach, opportunities may appear longer term and are not so easily identifiable, as, for example, the Olympic Games, where stadiums and hotels are subject to strict completion deadlines. To most marketers business opportunities must be looked at coldly and realistically. However, taken to the extreme, such a position could result in a complete dismissal of an export development campaign.
We were therefore very interested indeed to read from a fellow presenter that he had listed “in-country strategy” among his key solutions for tackling major events. Pressed by participants to develop on this idea, heexplained as follows:
Firstly it is almost unavoidable that, when targeting such a project, a company should have “boots on the ground” to liaise effectively with local stake holders (commercial, technical, logistics etc…). The reasons for this are many, ranging from time differences to cultural integration, and reputation, to simple convenience. Whatever they may be, they are so considerable that they can raise the challenge to such a level that a local presence, either via a subsidiary or local representative, becomes highly desirable.
The second set of reasons complements the first one, but focuses on image and communication. It is extremely difficult to be credible to local decision makers if one only seems to be interested in ‘spot’ business and ignores completely the rest of the local market. In other words, without a long term commitment, a company could easily gain a reputation for being interested only in quick and easy profits.
Whether one decides to set up a local subsidiary, and go as far as hire local staff and invest in buildings and equipmenor, on the other hand, one focuses on developing relationships with local partners, is another question. Sdecision may be considered and evaluated alongside many different parameters, internal and external to the company. One may also want to consider what should be the route to market,and what kind of marketing resources and involvementshould be allocated. All these issues should be carefully addressed, but one point remains: trying to do business at global eventswithout an in-country strategy may well prove fruitless.
