Expo 2012, platform for export marketing promotions

Prasanna PERERA, Marketing and Management Consultant, Chartered Marketer, CIM U.K.

With the Expo 2012 round the corner, there is no better moment to highlight the need for aggressive export marketing of Sri Lankan products and services. Increasing export revenue is the need of the hour for Sri Lanka and this article will address this aspect.

Ceylon Tea

In a recent article there was a cry for Sri Lanka to explore new markets, given the strife prevailing in key markets such as Libya, Syria, Iran. Middle Eastern countries account for about 55% of Sri Lankan / Ceylon Tea exported. This is a definite cause for concern and new markets must be aggressively pursued. In my opinion, China and India need to be focused, since their sheer size is always attractive, coupled with a strong tea drinking culture. Sri Lanka also needs to focus on the quality of the tea, since any reversals in this regards would be a stumbling block in increasing exports. The demand for tea in global markets is strong and all Sri Lanka needs is dynamic international marketing, combined with world class quality.

Gems and Jewellery

It is heartening to note that export values of Gems and Jewellery have been growing in the past few months. Here again, precious gemstones need to be marketed, as Sri Lankan blue sapphires are indeed simply the best. Branding of Sri Lankan gems and jewellery needs to be done to command further premiums. The participation in the several upcoming exhibitions is a must, to canvass new customers and markets.

Spices from Sri Lanka are second to none. However, Sri Lankan spices are not branded and positioned. A common identity under the slogan "Sri Lankan Spices - the best of the Orient" will be greatly beneficial to boost export volumes. Sri Lanka should concentrate on the more "exotic" spices, since the profit margins would be higher.

Rather than concentrating on dedicated coconut (DC), value added products should be given priority. Countries such as Indonesia and Malaysia have exported value added coconut based products such as coconut water, coconut cream, pinocolada, coconut juice etc., Sri Lanka needs to concentrate on such products rather than on DC alone.

Porcelain-ware

In terms of quality our porcelain-ware is second to none. Brands such as Dankotuwa, Noritake and Royal Fernwood come easily to mind. Aggressive marketing of Sri Lankan porcelain-ware in export markets is what is required. Here again positioning Sri Lankan porcelain-ware as the "best" can provide the required differentiation.

Sri Lanka as a nation has several products that have what is termed the "Country of Origin (COO)" advantage. This advantage needs to be exploited in marketing these products globally. Sri Lanka can learn from countries such as India (Tata, Leyland), Indonesia (Coconut), Malaysia (Palm Oil), Korea (Electronics, Motor) and Japan (Motor, Electronics, ICT).

In export marketing, creating a differential advantage is very important. For Ceylon / Sri Lanka Tea, the differential advantage is quality, since Ceylon Tea is recognized as the finest in the world. The quality advantage should be coupled together with the country-of-origin advantage and aggressive brand marketing. In the case of Sri Lankan apparel, we are recognized as a high quality destination. Responsible garments (garments without guilt), coupled with a literate work force and a quality focus will take Sri Lankan Apparel to great heights.

Building strong Sri Lankan apparel brands in export markets is the need of the hour. "Amante" is a great example of what branding can do in international markets.

To make Sri Lanka excellent in export marketing, the varied stakeholder groups must work together, towards a common objective i.e. to increase export revenue through value added exports. Working together is the problem in Sri Lanka, as certain parties put their interests in front of common goals. Unless this is addressed, a unified, coherent export related strategy will be hard to implement. A good starting point is the Expo 2012 exhibition, where all stakeholders will be present. Using the Expo 2012 as a base for an integrated stakeholder strategy would be ideal. Maybe the Export Development Board (EDB) should take the leadership in this regard.

To conquer export markets, pricing is a crucial element. To provide competitive prices, Sri Lanka exporters need to focus on improving productivity, to reduce the cost of production. Besides automation, productivity enhancements will come from training the workforce.