16
IMD’s business is to set-up, start-up, train, manage to profit- ability, and then fade out always working as a special department within the client’s company. For 18 years Safety-Kleen had 25% growth, each quarter, in both sales and profits. They had a convenient solvent-exchange service. Using a month-to- month lease they placed a red sink on top of a red drum of solvent at each users premises. The sink circulated solvent to clean oil and grease from metal parts. Around the world people had a need to degrease parts and had been doing it the same way with a bucket and a brush. The Safety-Kleen sink filtered out the dirt and was safe, clean, and convenient way to clean parts. Every month Safety-Kleen exchanged a drum of clean recy- cled solvent with the customers’ dirty used solvent, cleaned the sink, and sold related accesso- ries. Dirty solvent was taken to company owned recycle centers and distilled to remove impuri- ties ecologically disposing of all waste and maximizing the life of the solvent. IMD Group was retained to open the Asian Markets for Safety-Kleen. Over 5-years, IMD found & negotiated joint- venture and license partners, setup branch operations, trained branch managers, rode with and trained truck servicemen, and advised the shaping of the busi- ness in each market. Operating in Safety-Kleen uniforms and using Safety-Kleen business cards IMD Group crated and established substan- tial and profitable business in all 7 branches across Japan as well as in Hong Kong, Taiwan, and Korea. After the operation was prof- itable and the personnel trained, IMD gradually faded out and direct Safety-Kleen personnel provided corporate services to the joint ventures and licensees. Safety-Kleen—Solvent Recovery Service Toyoda–Forklift Manufacturing Toyoda is the parent company of Toyota automotive. They wanted to establish a manufac- turing plant in Columbus Indiana and asked for IMD’s assistance. IMD worked for 3-years be- fore startup to qualify foundries and machine shops to supply all the US supplied castings for the forklifts. For the first 18 months of production IMD supplied fully machined parts under the world famous just-in-time KANBAN system achieving a perfect deliv- ery and quality record as a listed supplier before fading out after company personnel were hired and trained to take over. IMD qualified and trained suppliers to fit Toyota’s system and served through the start-up. INTERNATIONAL MARKET DEVELOPMENT GROUP LLC 2004 Since 1976 Volume 28 — Issue 1 Successful Start-ups IMD Work Market research Strategy planning Profitability analysis Project implementation Management to success Operations training Distributor networks Licenses & joint ventures Business development In This Issue: TPC Training Systems Div, D&B - Maintenance 2 Bell & Howell, DeVry University - Electronics 2 Delta Oil Corp. - Resins & Refractories 2 Sun Ace - Mobile Homes 3 Maeda Shell Service Co. Ltd. - Hand tools 3 A-Team Company - Compressed air filtration 3 Egis Corporation - Electronic shielding 4

International Market Penetration

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Page 1: International Market Penetration

IMD’s business is to set-up, start-up, train, manage to profit-ability, and then fade out always working as a special department within the client’s company.

For 18 years Safety-Kleen had 25% growth, each quarter, in both sales and profits. They had a convenient solvent-exchange service. Using a month-to-month lease they placed a red sink on top of a red drum of solvent at each users premises. The sink circulated solvent to clean oil and grease from metal parts.

Around the world people had a need to degrease parts and had been doing it the same way with a bucket and a brush. The Safety-Kleen sink filtered out the dirt and was safe, clean, and convenient way to clean parts.

Every month Safety-Kleen exchanged a drum of clean recy-cled solvent with the customers’ dirty used solvent, cleaned the sink, and sold related accesso-ries.

Dirty solvent was taken to company owned recycle centers and distilled to remove impuri-

ties ecologically disposing of all waste and maximizing the life of the solvent.

IMD Group was retained to open the Asian Markets for Safety-Kleen. Over 5-years, IMD found & negotiated joint-venture and license partners, setup branch operations, trained branch managers, rode with and trained truck servicemen, and advised the shaping of the busi-ness in each market.

Operating in Safety-Kleen uniforms and using Safety-Kleen business cards IMD Group crated and established substan-tial and profitable business in all 7 branches across Japan as well as in Hong Kong, Taiwan, and Korea.

After the operation was prof-itable and the personnel trained, IMD gradually faded out and direct Safety-Kleen personnel provided corporate services to the joint ventures and licensees.

Safety-Kleen—Solvent Recovery Service

Toyoda–Forklift Manufacturing Toyoda is the parent company of Toyota automotive. They wanted to establish a manufac-turing plant in Columbus Indiana and asked for IMD’s assistance.

IMD worked for 3-years be-fore startup to qualify foundries and machine shops to supply all the US supplied castings for the forklifts.

For the first 18 months of

production IMD supplied fully machined parts under the world famous just-in-time KANBAN system achieving a perfect deliv-ery and quality record as a listed supplier before fading out after company personnel were hired and trained to take over.

IMD qualified and trained suppliers to fit Toyota’s system and served through the start-up.

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

2004 Since 1976 Volume 28 — Issue 1

Successful Start-ups

IMD Work

• Market research

• Strategy planning

• Profitability analysis

• Project implementation

• Management to success

• Operations training

• Distributor networks

• Licenses & joint ventures

• Business development

In This Issue:

TPC Training Systems Div, D&B - Maintenance

2

Bell & Howell, DeVry University - Electronics

2

Delta Oil Corp. - Resins & Refractories

2

Sun Ace - Mobile Homes

3

Maeda Shell Service Co. Ltd. - Hand tools

3

A-Team Company - Compressed air filtration

3

Egis Corporation - Electronic shielding

4

Page 2: International Market Penetration

The TPC Training Systems Co. created 154 self-study training courses for adults working in plant maintenance. Courses were combined to create career development paths. Maintenance requires that the workers know how to safely apply up to 45 different skill trades.

Designed for hands-on op-erators, the courses allowed as much time as each learner needed until they achieved a 95% understanding of the ma-terial.

TPC wanted to establish international business over time without spending much development money. Over 4-years, IMD set up distributors in 22 countries.

Focusing on the Spanish lan-guage areas, IMD facilitated Spanish translations of key modules for use at General Motors plants in Saltillo Mexico and negotiated with the Gov-ernment use TPC as the basis for certifying tradesmen in Mexico.

IMD created positive cash

flow from the start and faded out when the division was sold.

laboratory analysis, territory sales, product manager, market manager, distributor manager, and manufacturing assistant to vice president of international operations.

He moved to Belgium and set up manufacturing licenses in England, Sweden, Germany, Spain, Holland, Italy and Japan. During the startups, he trained production workers, labora-tory technicians, sales managers and salesmen in various cul-

James Antonic worked in several foundries and steel mills during school interims and started his own foundry supply company in Wisconsin, one of the metal casting US centers.

Delta Oil manufactured over 175 formulae with several firsts in the metal casting indus-try and merged James's com-pany into Delta where he worked throughout all depart-ments advancing through posi-tions in warehouse-supply,

tures to make Delta’s products safely, to apply Delta’s prod-ucts correctly, and to eliminate scrap using the most appropri-ate products.

From Belgium, James started International Market Development Group working and living in England, Japan, and the United States. IMD creates new market penetration strat-egy for manufacturing compa-nies and implements them from hands-on, to profitability.

Technical Publishing Div. —Dunn & Bradstreet

Delta Oil Company—Foundry Resins & Refractories

Bell & Howell Inc.—DeVry Institutes of Technology Saudi Arabian Air Force and Nigerian Army projects, IMD developed and presented a $54 million courseware develop-ment proposal to the Asian Development Bank which was the first non building an equip-ment proposal ever made. The world bank approved the ex-penditure for Indonesia.

Working throughout India and SE Asia, IMD created pro-jects to extend the DeVry ex-pertise worldwide and faded out when B&H decided to give

up the $54 million grant and to not rotate their instructors overseas to train the Indone-sian instructors.

Bell & Howell sold home-study electronics training to GI’s and wanted to eliminate that business and concentrate on their successful DeVry Schools division. 98% of DeVry graduates were hired within 90 days of graduation by major companies.

IMD managed the train out and inventory elimination of the home-study and packaged the DeVry curricula into a licensable product. After ac-counting for the costs of the

Page 2 Successful Start-ups

Page 3: International Market Penetration

Sun Ace Homes Co. Ltd. wanted to import small mobile homes in Japan as a new busi-ness and retained IMD to in-vestigate the US market and negotiate technology tie-ups with American makers. Be-cause of the structural defect claims they were getting about the imported American homes, they asked IMD to arrange a manufacturing business for them in Japan.

IMD researched the Ameri-can building methods and sourced the steel fames, tires, components, and furniture in

America and all the wood, cabinetry, shingles, and insula-tion in Canada.

Over 3-years IMD assisted Sun Ace in setting up their factory, acquiring tools, design-ing floor plan layouts, setting the benchmarks, reducing costs, improving the time to build, and defining labor tasks.

The factory became the largest maker of mobile homes in Japan. IMD used the lowest-cost fastest-construction meth-ods found in America and Europe. Instead of using tradi-tional 2x4 stick construction,

IMD instituted the method of building wall and roof panels in a factory, moving them to the assembly line, and then erecting the panels quickly on a floor that was pre-attached to a steel chassis. Roof panels completed the shell and tradesmen fin-ished the units.

Sun Ace wanted to create a new and profitable business. IMD enabled them to set up, manufacture, and capture mar-ket share in the shortest time without making the costly mis-takes that frequently occur in a totally new start-up business.

from the compressed air while providing a specific level of particulate filtration. Once the products were installed, they filters had to be changed every 1~3 months to main the air quality. This also became a razor-&-blade type of business with an ever growing book of residual filter replacement sales.

The A-Team not only sold and installed all the units, but also maintained them changing the filters as needed using a

The A-Team wanted to become a supplier to Malaysian industry with a product that it could sell and would supply a continual income stream from replacement parts.

IMD created the products, the business model, and the new market penetration with sales tools and products that would create an ongoing profit-able industrial supply business. The products were a family of various sized air filters that removed all the oil and water

modified regimented control system that IMD had used when it set-up the Safety-Kleen business in Japan and La-Man in Japan.

IMD developed a complete business for a Malaysian group of start-up entrepreneurs, cre-ated all of the products, litera-ture, training materials, and management controls needed to successfully and profitably manage the business before fading out.

Sun Ace Homes Co.—Japanese Mobile Home Manufacturer

A-Team Ltd.—Malaysian Industrial Supplier

Maeda Shell Co. Ltd.—License with The Stanley Works

tried to write their own license with a maker of Compocast™ polyurethane hammers they first had to buy product but received bad product and could not return it. The Stanley Works, makers of hand tools, had just bought the company and refused to deal with the Japanese company because of their own Japanese division.

IMD was able to convince The Stanley Works Chairman, CEO, President, and Interna-tional Vice President to grant an exclusive manufacturing license for Maeda Shell service who subsequently became the largest user of cast polyure-thane in Japan as they devel-oped their business.

IMD’s knowledge of busi-ness methods in Japan, Amer-ica, and negotiation skills en-abled IMD to bridge the gap and effect a successful outcome to what had been an impasse.

Maeda Shell Service Co Ltd. is a supplier to Toyota that asked IMD to create a for it a mini-conglomerate of technical licenses to enable it to increase their services and sales to Toy-ota.

IMD found and arranged licenses for precision casting, electroless nickel plating, brush plating, phenolic resin coating of core making sand, and sprayed polyurethane wear coatings.

When Maeda Shell Service

Pursuing

Profitability

for Clients

World-Wide

Page 3 Since 1976 Volume 28 — Issue 1

Page 4: International Market Penetration

1500 Colonial Blvd. Suite 102

Fort Myers Florida 33907 U.S.A.

Phone: 239-872-4143 Fax: 603 388 0385

www.IMDGroup.com

Since 1976, IMD Group has successfully started up new businesses for clients in 39 countries and sold in 105 countries.

IMD’s international penetration uses only the client’s name to set up and man-age markets until they are successful. Agents, representatives, distributors, licen-sees, contract manufacturing, and joint-venture networks are set-up and managed by an experienced, professional, international project outsource team using a sys-tem that has proven to be quick, cost effective, and profitable in all the major world markets.

Using IMD’s proven international market development methods, obtaining 5% of domestic sales in 20 countries doubles the client’s business with large shipments and with secure payments thereby self-funding the business expansion.

Using IMD’s step by step methods of finding, securing, and creating new busi-ness profit centers, client’s are able to sell new products or services to their exist-ing customers usually at a higher profit margins, acceptability, and convenience.

IMD protects client’s Intellectual Property, drafts and negotiates all their agree-ments, sets up the network, manages to profitability, and trains the client’s person-nel to carry on after IMD fades out once the project is self-sustaining.

Both large companies with specific needs and small companies with overall needs have benefited from IMD’s proven new business strategies.

Call to see how we can benefit your company!

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

several professors theories that had been commonly accepted. IMD worked with roll-stock laminators and converters to teach them the methods of adhering metal to their sub-strates and fabricating the lami-nates into demonstration prod-ucts displaying the shielding

A Japanese steel maker developed a manufacturing technique to produce a 30 micron thin sheet of soft iron one meter wide and 100 me-ters long to laminate to sub-strates. These laminates were the most effective and lowest cost way to shield sensitive electronic parts from magnetic and electronic interference.

IMD was asked to create an American company, the techni-cal information, the marketing materials, and the sales intro-ductions to the American Elec-tronic Marketplace. IMD gen-erated a booklet of graphs comparing all of the commonly used shielding materials on one sheet for all frequencies of interference.

This was the first time such work was accomplished in the United States and disproved

abilities of the Iron-Shield™.

Laminating converters were licensed to make and distribute products throughout America. Technical papers were written and published in trade journals, and the trade name Iron-Shield™ became known in the industry until the Japanese company quit production of the metal and stopped export of the materials to America.

IMD established the com-pany, the products, the techni-cal literature, the image, and the brand in the United States in 2-years.

Egis Corporation—Magnetic shielding

Penetration Strategies & Hands-on Implementation

Page 5: International Market Penetration

to lower the cost of the raw materials taking advantage of the improved strength.

IMD performed all of the field testing work for the practi-cal applications of the inventor and created awareness of the best method of utilizing and diverting waste products from dump sites by creating a benefi-cial use for the “F” ash while lowering cement usage.

A professor of chemical engineering at Kansas State University developed a chemical reagent mixture that improved the strength of cement by 30% when 1/2 of 1% was added to the de-dusting water during the clinker grinding process or in the mix. He was selling the mixture to encapsulate hazard-ous waste in concrete for deep sea burial overseas.

The chemical mixture also sensitizes “F” grade fly ash to become part of the cement binder system. “C” ash is sold and used in concrete but ”F” ash, produced by electric utility plants burning soft coal, had no use and the utilities paid to have “F” ash dumped in land fills until his invention. The professor asked IMD to commercialize his mixture.

IMD Group manufactured the chemicals in bulk and for 2 years ran ASTM tests of the chemical at cement producing plants, in sewage treatment

encapsulating plants, at concrete block plants, and in foreign countries with waste “F” ash and other high carbon ashes.

When “F” fly ash was used in concrete admixtures, the results were qualified as a low cost water reducer and also as a cement binder extender. Up to 25% of “F” ash could be substi-tuted for cement in the admix with no loss of strength but with improved properties.

Using “F” ash with the chemical reagent lowered the price of pouring concrete pads to compete against asphalt and protected the concrete against chemical, water, and UV attack.

Using the chemical reagent in the cement grind produced a stronger cement or allowed the cement producer

Pozzolin Plus Inc.—Chemical Reagent for Cement and F-ash

Malaysia—Rice Drying Plants Malaysia was experiencing a 40% loss of value because their rice drying operations cracked too many grains of rice and, therefore, had to be sold at a lower price per ton.

IMD Group was retained to research and develop a rice handling, drying system, plant, and storage that would reduce such losses to no more than 15% using best methods.

IMD researched the grain drying industry, identified the cause of the problem, and worked with engineers to de-sign the correction. Presenta-tions were made with American professors and unique design equipment makers in Malaysia to win the contract tenders.

IMD coordinated all parts of the solution to the problem.

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

2004 Since 1976 Volume 28—Issue 2

Successful Projects

IMD Work

• Market research

• Strategy planning

• Profitability analysis

• Project implementation

• Management to success

• Operations training

• Distributor networks

• Licenses & joint ventures

• Business development

Inside this issue:

Fel-Pro - Gasket License

2

La-Man - Air Filters

2

Val-test - Do It Yourself Wholesale coop

2

Super Pots - Flower Pots

3

Showa Laminating - Packaging Patent

3

Bajrai Trading - Saudi DIY Study

3

JMD Co. Ltd. - Metal Epoxies

4

Page 6: International Market Penetration

Fel-Pro, the largest pro-ducer of gaskets in America, kept in on-hand inventory com-plete gasket sets for every car made in the world.

Their laboratories worked with new engine developers to optimize sealing different parts of the engine against water and gas leakage. Modern engines use different metals and com-posite plastics. Each has a dif-ferent rate of expansion and contraction requiring special sealing chemicals and methods.

Diesel engines are most

difficult to gasket because of their higher operating tempera-tures and pressures.

IMD arranged a meeting with Marusan Co. Ltd. In Japan to exchange diesel gasket tech-nology. Working with both sides, IMD negotiated contract details of the joint venture agreement for the creation of a new company.

The joint venture agree-ment package used 7 separate agreements to bind the compa-nies, create confidentiality, establish each company as a

distributor of the other, share in research and development, license manufacturing, license trademarks and trade names, and establish the buy-sell terms between the parties.

All of the agreements were negotiated and drafted to be manageable by company execu-tives while covering all aspects of the business.

Only after that process were the agreements given to the attorneys for their opinions about the legality and protec-tion of their respective clients.

turer incentives. In the 2-step distribution system, the goods first pass to a local WD instead of directly to the retail outlet. The WD provides an inventory backup and storage of low cost large volume items that have seasonality and that the manu-facturer can not inventory (such as plastic ice chests).

IMD quickly recognized that the discounts available to 2-step buying groups were not only larger than the retailer

Val-Test is a 2-step whole-sale co-operative buying group for Do-It-Yourself (DIY) ware-house distributors (WDs) sup-plying hardware, paint sundries, plumbing goods, electrical products, variety items, and marine products.

WDs combine their pur-chases for better discounts and terms with the manufacturer. Val-Test acts as a clearing house for the combined orders and handles special manufac-

discounts, but also lower than the manufacturer’s own export departments.

IMD introduced and ar-ranged for a Japanese WD to become a member of the Val-Test DIY buying and coordi-nated the first round of export containers for their start up.

IMD also helped the Ameri-can Hardware Association to penetrate the Japanese market over a 3-year time span.

Fel-Pro—Marusan Gasket license

Val-test Company—Cooperative Do-It-Yourself Buying Group

La-Man—Compressed Air Filtration

target market areas around the world then located, negotiated, and trained the sales network, designed the marketing and sales literature, set up the ex-port packages, licensed a con-tract manufacturer, trained the distributors and salesmen, and managed development until the business was profitable.

Using the razor/razor blade concept, higher profitability and commissions were enabled using Safety-Kleen type supply methods and controls.

La-Man patented an air filter that converted liquid water in that is harmful to all processes using compressed air into harmless water vapor that is not harmful to any process.

The system required that low cost filter elements to be changed at regular intervals. The compressed air filter busi-ness is very cost conscious and competitive.

IMD created business plans for warehouse distributors in

Page 2 Successful Projects

Page 7: International Market Penetration

IMD was asked by a seed company to investigate better and more cost effective ways to raise and keep plants when grown from seed, cuttings, or transplants.

During the investigations IMD was not able to find lower cost media or containers, but did invent and develop a patent position for creating flower pots made from sand. Certain sands were non-porous to water yet porous to air. This helped to oxygenate the root systems of the plants. By in-

corporating fertilizers in the sand walls of the pots, acceler-ated growth was achieved.

Plants in the new pots were impossible to over-water (the main killer of houseplants) as excessive water was dissipated uniformly through the walls and evaporated preventing root rot that occur when non-porous pot’s drain holes are plugged.

IMD researched the most common pot sizes, designed, and fabricated molds to manu-facture them in large quantity. Machinery was sized to enable

the manufacturing operation to fit on a truck so that the mo-bile factory could pull into a green house or nursery and produce the quantity and sizes needed without the costs of scrap, breakage, warehousing, and delivery.

Unique packaging was also designed so that 6 pots would nest inside a Styrofoam cooler chest . The women used the pots and the men used the coolers for their purposes.

IMD created a new business by thinking out-of-the-box.

the way business was being conducted. IMD uncovered both the overt and covert eco-nomic driving factors and the incentives and disincentives to business conduct in the King-dom.

A detailed report concluded that a DIY store did not have sufficient infrastructure to be successful and that the current competitors would reduce prices until the new business was forced out.

Mohammad A. Bajrai Trad-ing Est. is an importer in Saudi Arabia. They asked IMD to spend several weeks in country to determine if a Do-It-Yourself (DIY) store similar to Lowes or Home Depot would be profitable if located between Al Jubail and Dammam.

IMD traveled throughout the country, visited stores, met with manufacturers, toured industrial complexes, and stud-ied processes in plants to learn

During the investigations, IMD did uncover an unfulfilled need for certain industrial products and distribution that would fit in the Bajrai core business and competency.

Bajrai moved to hire James Antonic full time to set up the operation, but he declined due to other commitments. Bajrai in the months following, did establish a profitable business based on the suggestions and direction that IMD had pro-posed in its report.

Super Grow Inc.—Sand Flower Pots

Bajrai Trading—Saudi Arabian Home Depot Business Evaluation

Showa Laminating Co. Ltd.—Anico Interactive Packaging

other uses for the chemical, and prepare a group of poten-tial licensees to be makers and users of the product.

IMD ran tests at major fast food chains, meat packers, restaurant supply houses, and restaurants. New markets were found for shoe insoles and in other products. After successful testing, users wanted to license the manufacture of the chemicals. The maker who appointed Showa as their exclusive agent

and director denied Showa the original formula to license and provided a non-working for-mula that failed in all of the repeated tests.

IMD had successfully taken the product through tests for major sales markets and an-swered the FDA concerns about the gaseous interaction with foods. Even though Showa paid for IMD time and effort, all of the potential users were disappointed.

Winner of the best new product award in Japan, Anico was a chemical mixture that was laminated between two sheets of normal bag plastic and generated oxygen through the inside layer. When formed into a bag, the oxygen became interactive with the materials inside the bag. The result was that stored foods lasted many times longer without discolora-tion or deterioration.

IMD was asked to develop field trials in America, find

Pursuing

Profitability

for Clients

World-Wide

Page 3 Since 1976 Volume 28—Issue 2

Page 8: International Market Penetration

1500 Colonial Blvd. Suite 102

Fort Myers FL 33907

Phone: 239 872 4143 Fax: 603 388 0385

www.IMDGroup.com

Since 1976, IMD Group has successfully started up new businesses for clients in 39 countries and sold in 105 countries.

IMD’s international penetration uses only the client’s name to set up and man-age markets until they are successful. Agents, representatives, distributors, licen-sees, contract manufacturing, and joint-venture networks are set-up and managed by an experienced, professional, international project outsource team using a sys-tem that has proven to be quick, cost effective, and profitable in all the major world markets.

Using IMD’s proven international market development methods, obtaining 5% of domestic sales in 20 countries doubles the client’s business with large shipments and with secure payments thereby self-funding the business expansion.

Using IMD’s step by step methods of finding, securing, and creating new busi-ness profit centers, client’s are able to sell new products or services to their exist-ing customers usually at a higher profit margins, acceptability, and convenience.

IMD protects client’s Intellectual Property, drafts and negotiates all their agree-ments, sets up the network, manages to profitability, and trains the client’s person-nel to carry on after IMD fades out once the project is self-sustaining.

Both large companies with specific needs and small companies with overall needs have benefited from IMD’s proven new business strategies.

Call to see how we can benefit your company!

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

metals to a condition that would wear better than a new part. Belzona was developing their business in America and Europe. IMD introduced the Japanese connection and the Japanese opened a new com-pany to deal exclusively with this product.

The profit margins enabled JMD to quickly establish a na-tionwide business and group of distributing maintenance ex-perts penetrating all major industries across Japan.

IMD assisted JMD in setting up offshore operations, learn-ing the repair techniques, un-derstanding the chemical han-dling requirements, and in training the supervising con-sultants before fading out leav-ing behind a profitable function-ing business that fit the needs in the country and abilities of the JMD company.

A Japanese company wished to find a new and profitable business to open in Kariya Japan. After meetings and in-vestigations in Japan and Amer-ica, IMD found that a need existed for maintenance repair compounds. The current method in Japan was to have all equipment makers (EMs) main-tain their equipment without a need for factories to have their own maintenance departments.

IMD predicted that this was a trend too expensive to con-tinue and that there would be a maintenance gap between the EMs and in-plant maintenance that could be filled by supervis-ing consultants who supplied repair materials and trained the plant’s personnel in their use and application.

IMD found a full line of metal epoxies that repaired warn, eroded, or corroded

Japan Market Development Co. Ltd.—Metal Epoxies

Penetration Strategies & Hands-on Implementation

Page 9: International Market Penetration

generators to supply energy and lower the trucked in fuel re-quirements. IMD also started projects to bring internet satel-lite links to remote areas for reasonable costs.

IMD identified products to manufacture and developed methods for an economy to operate not only within the small community but also to interface profitably with the Canadian and United States

Throughout Canada there are enclaves of aboriginal natives living on government land or deeded reservations known as the First Nation. Conditions in these small communities are not good. Many are in remote loca-tions and not serviced by elec-tricity, telephone, water, or waste treatment.

IMD was asked to quote on a project to build 3 self-sustaining communities in remote wilder-ness areas. There were no roads to the area or airfields at the locations. All of the materi-als would have to be delivered in the dead of winter over the

“Winter Roads” carved by bull dozers over the frozen lakes, or airlifted to the locations.

The challenge was to train the people living in the communities to build everything at their site and to develop an ongoing busi-ness that would create a sus-tainable economy for them.

IMD submitted its proposal and was awarded the contract for the buildings and utilities, pending funding. David Douglas a famous architect from Canada was chosen to design the layout and infrastructure for the com-munity.

IMD researched energy effi-cient building products, energy conserving lights and appliances, specialized water treatments, and low energy waste treatment to minimize the annual energy requirements.

IMD developed relationships with solar and wind electricity

First Nation—Energy Efficient Communities

Sanfilippo—Nuts IMD was asked to supply Macadamia nuts to a major brewery overseas for them to supply along with their beer. Macadamia nuts are expensive and grown by combines in only a few areas of the world.

IMD sourced the nuts at a large private label supplier in Chicago and delivered them in large number 10 cans. The

brewery did not have a good packaging idea and IMD sug-gested that the nuts be pack-aged in their existing small beer

cans. All of the small cans, 6-packs, boxes, and cartons were in inventory and immediately modified for their new product.

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

2004 Since 1776 Volume 28—Issue 4

Successful Projects II

IMD Work

• Market research

• Strategy planning

• Profitability analysis

• Project implementation

• Management to success

• Operations training

• Distributor networks

• Licenses & joint ventures

• Business development

Inside this issue:

Silvico - Prosthetics

2

Hytec Kisco - Water Purifers

2

Zumach - Anti-graffiti Paint

2

Fairwater - Silica Sand

3

MCL - Factory Location Study

3

- Repair chemicals In Russia

3

OSI - Battery Ovens

4

Page 10: International Market Penetration

Silvico is a small company that had developed a line of brassieres for mastectomy patients. They had many types of lingerie and filled one or both sides with weighted or non-weighted fillers to match the remaining breast. They were the leaders in the industry and able to exactly match the weight, size, and shape of the remaining breast. They also had a full line of products that were used imme-diately after surgery before the healing was complete.

IMD was asked to introduce their product line in England to the socialized health care sys-tem and to get their products certified and accepted for use.

IMD found that their prod-ucts were too expensive and not aligned to the type of pros-thetic that was being supplied by British Health.

The owners then asked IMD to help them package their company for sale.

IMD analyzed their technol-ogy, account books, customer

base, sales methods, and repu-tation in the industry and wrote a company offering pro-spectus that Silveco used to introduce their business and successes to finally sell their business.

IMD was asked to introduce the paint in the United King-dom where there was a great problem with graffiti at bus stands and in train depots.

IMD took the product to England and arranged several tests at various councils au-thorities responsible for the upkeep of property and at the bus companies and bus authori-ties.

The products worked very well in all applications. The

Zummach is a small paint manufacturing company special-izing in industrial coatings. They developed one of the first polyurethane two-part paint that resisted graffiti.

Once the polyurethane is fully polymerized the surface is impregnable. Any paint sprayed or painted onto the cured surface, can be easily removed with solvents. The solvents have no effect on the polyurethane.

difficulty was that the painting crew had to stay until the poly-urethane completely dried. If graffiti was sprayed on semi-cured polyurethane, it could never be removed.

IMD reported the problem back to Zummach and they began to reformulate the paint to shorten the cure time and eliminate the waiting time.

Their reformulated paints were then sold in England.

Silvico—Mastectomy Prosthetics

Zummach—Anti-Graffiti Paint

Hytec-Kisco—Water Treatment product was not suited to the foreign markets in IMD’s ex-perience and the product was too high priced with too low a margin for anyone to take a manufacturing license.

IMD was then asked to de-velop a prospectus to spin off the product from the company as a stand alone profit center for a van type business.

IMD wrote the prospectus and created a likely scenario

for a prospective buyer show-ing the business plan, sales forecasts, and potential profit-ability which the company used to successfully sell the product and all of its tooling, literature, and inventory.

Hytec-Kisco is a company that produces water softening equipment for home and com-mercial use. They had spent a lot of money developing a re-verse-osmosis (RO) water purification unit and the tooling for all the plastic parts. The RO unit was large and sat on top of a kitchen counter where space was always at a premium.

IMD was asked to develop foreign sales for their units. IMD declined because the

Page 2 Successful Projects II

Page 11: International Market Penetration

Fairwater silica sand is part of the St. Peter deposit that runs from upper Minnesota to Georgia. The sands are 99.97% pure silica and are uniquely suited for certain industrial uses. Sands are mined, washed, dried, and classified (run through a series of screens to create a fixed percentage of each size sand grain in the makeup of the sand).

A fixed weight of sand is put through a stack of screens with finer and finer openings and the supplier must guarantee the amount retained on each

screen to be consistent from delivery to delivery. Such in-dustrial sand is usually sold based on the freight rate from the pit to the plant because the processing costs are similar from pit to pit.

IMD was asked to sell Fair-water’s sand and capture busi-ness from the competitor in the border areas and to pene-trate into the competitor’s territory.

IMD developed relationships with the industrial users and then created test data to prove

that the trace elements in Fair-water Silica improved the oper-ating characteristics of the sand and reduced customer’s scrap during manuracturing.

Based on demonstrations in-plant and customer’s own test data, IMD was able to capture significant business from the competitors in spite of higher costs.

The Fairwater silica company was able to grow and become a more dominant player in the local industries consumption of highly processed silica sand.

improve the yield, and enable more oil to be refined. In addi-tion IMD was asked to present maintenance repair and rebuild-ing chemicals that were criti-cally needed in the run down industries in Russia.

IMD sourced the chemicals and technology to improve the oil extraction percentages and worked to establish a joint testing program for determin-ing the best chemicals to use.

IMD also sourced a full offer-

Russian oil fields were de-pleting and hot water was being pumped into the wells to ex-tract the residual oil. This created a thick emulsion of oil and water that was difficult to separate before distillation.

IMD was asked to source and present American chemicals that could break the emulsions,

ing of maintenance chemicals, created the instruction manu-als, and PowerPoint presenta-tions to train the maintenance workers and users of the prod-ucts in Russia.

Fairwater—Silica Sand

Russia—Oil Well Drilling Demulsifiers & repair compounds

MCL—Metal Casting Foundry Location Study IMD researched the markets and raw material costs for their type of products and did com-parative analyses of optimum locations and delivered costs of raw materials at each location as well as end product delivery costs to MCL’s customers.

Based on IMD’s accuracy in developing the information, MCL opened its foundry and has established their foundry as one of the premier suppliers to the Japanese transplants.

MCL is a precision foundry that wanted to establish an metal casting center in America to supply the Japanese manu-facturers that were locating around the country.

IMD was retained to survey the current competition, find a suitable manufacturing location, and to gather competitive cast-ing costs from high production foundries that made the same type of castings.

Pursuing

Profitability

for Clients

World-Wide

Page 3 Since 1776 Volume 28—Issue 4

Page 12: International Market Penetration

1500 Colonial Blvd. Suite 102

Fort Myers FL 33907

Phone: 239 872 4143 Fax: 603 388 0385

www.IMDGroup.com

Since 1976, IMD Group has successfully started up new businesses for clients in 39 countries and sold in 105 countries.

IMD’s international penetration uses only the client’s name to set up and man-age markets until they are successful. Representatives, distributors, licensees, and joint-venture networks are set-up and managed by an experienced, professional, international project outsource team using a system that has proven to be quick, cost effective, and profitable in all the major world markets.

Using IMD’s proven international market development methods, obtaining 5% of domestic sales in 20 countries doubles the client’s business with large shipments and with secure payments thereby self-funding the expansion.

Using IMD’s proven methods of finding, securing, and creating new business profit centers, client’s are able to sell new products or services to their existing customers usually at a higher profit margins, acceptability, and convenience.

IMD protects client’s Intellectual Property, drafts and negotiates their agree-ments, sets up the network, manages to profitability, and trains the client’s person-nel to carry on after IMD fades out once the project is self-sustaining.

Both large companies with specific needs and small companies with overall needs have benefited from IMD’s proven new business strategies.

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

ences between the various types of battery plate drying ovens and the OSI oven.

Company photos were used to illustrate the international catalogs, and the most probable markets were selected to in-

Battery plates drying ovens are a very specialized type of industrial oven. Lead acid car batteries are made up of a stack of plate containing reac-tive chemical compounds that create electricity and store it when immersed in battery acid. The plates are actually frames into which the chemical com-pound is pressed. The com-pound must then be dried be-fore the battery is assembled.

IMD was asked to prepare international sales manuals and explanations of the ovens, the features that separated their ovens from the competition, and to resize the ovens so as to fit into open top export containers.

IMD analyzed the competi-tion and drafted explanations of the features, benefits, advan-tages, and appeal of the differ-

troduce the company and its products.

OSI used the IMD informa-tion in its search for export markets and today has over 600 ovens in operation world wide.

OSI—Battery Plate Drying Ovens

Penetration Strategies & Hands-on Implementation

Page 13: International Market Penetration

any design house to be built in panels in a factory and erected on-site in 1-day with a crew of 5, and energy saving community building techniques for remote energy poor locations.

After 3-years the CEO was not able to fund the com-pany and IMD withdrew to help other companies develop new markets profitability.

ACT is a Florida start-up company that has a patent on the use of composite pultrusion parts to create the support framing for residences and buildings. These materials are stronger than steel and lighter than wood. They are also fire-proof, termite proof, black mold proof, earthquake proof, and windproof up to 450 MPH (200 m/sec).

IMD was initially contacted to help with a license negotiation for China and subsequently retained to redesign the busi-ness model, products, and draft a new business plan that would make the ACT product com-petitive with concrete block and wood framing.

Over 3-years IMD also created a manufacturing technology campus design and integration of separate component plants that could accomplish those goals and create a vertical mo-nopoly within a year of start-up.

The plan was modeled after larges scale manufacturing cen-ters found in America, Japan, and Europe and combined all of the items needed to completely enclose a home from the ele-ments.

IMD negotiated strategic alli-ances with raw material suppli-ers, equipment makers, and located 50 top level managers to join ACT when the CEO secured the required financing.

IMD also provided strategy for sustainable housing in rural and urban centers, methods of construction that would enable

Advanced Composite Technology, Inc.—Pultrusion Homes

Sipco Co—Stay-In-Place Concrete Forms

A Japanese company patented expanded metal for use as con-crete forms and the system for enabling them to be built into the finished walls, floors, and roofs on-site, prior to pouring. Entire footings, houses, bins, dams, retaining walls, and other structures are first erected and then normal slump concrete is pumped in to complete the structure in one continuous pour. The forms were low cost

and became part of the finished wall strengthening it, eliminating clean up and storage costs, and enabling buildings to be cast in place much closer to neighbor-ing buildings.

IMD was asked to introduce the system to major users in the United States. The products were imported and demon-strated to the concrete forms

makers, concrete industry rep-resentatives, builders, utilities, developers, & contractors

INTERNATIONAL

MARKET

DEVELOPMENT GROUP LLC

2004 Since 1976 Volume 28—Issue 3

Successful Technology

IMD Work

• Market research

• Strategy planning

• Profitability analysis

• Project implementation

• Management to success

• Operations training

• Distributor networks

• Licenses & joint ventures

• Business development

Inside this issue:

Weber Tackle -Fishing tackle

2

Universal - Circuit Boards

2

Russell T. Gillman - Machine Tools

2

Nilordor - Deodorizers

3

Durapipe - Plastic Air Pipe

3

J&M - Thread lockers

3

Yamato - Chemical Patent

4

Page 14: International Market Penetration

Weber tackle was the largest maker of fishing tackle in the United States and wanted to expand their sales to the Carib-bean basin fishing areas. IMD was retained to do a market analysis and to build a network and manage the penetrations country-by-country.

IMD analyzed the fishing tackle business in Venezuela and traveled with the com-pany’s representative to visit his customers. Competitors were visited and a simple busi-ness plan developed.

All Weber’s distributors were earning a ten percent commission on what they sold after their customers made a secure payment to Weber and Weber had collected the pay-ment. Salesmen were not-enthusiastic and a lot of paper-work was required.

IMD created a unique system approved by Weber and their distributors that did not in-crease the cost of any item to the buyers, did not cost Weber any extra money, and that in-creased the commissions to the representatives from 10% to

45%. They were required to do very little extra work to increase their profits while Weber had reduced work..

The sales network caught on fire and no other supplier could get the attention or commit-ment of the Weber representa-tives that also carried other competitive products. Orders started rolling in.

IMD’s international orders were not sufficient, however, to save Weber from bank-ruptcy due to their domestic sales problems.

and their associated parts sup-pliers. IMD displayed the parts in Caracas Venezuela at the new South American industrial exposition site.

Many companies had never seen these types of precision locating spindles, horizontal slides, round positioning tables, and vertical slides and were surprised to find that they could design and build their own machines to improve their quality, lower their costs, and

Gilman makes machine tool modules. Machine design engi-neers around the world build prototype and high perform-ance machines by assembling precision modules, control logic circuits, and motor drives. Russell T. Gilman makes a full line of precision parts to build and automate machine tools and precision tools.

IMD was retained to survey a growing South American mar-ket for manufacturing plants

increase their productivity and surpass their competitors.

IMD identified those engi-neers capable of creating their own machines and developed the relationship between them and the Russell T. Gilman com-pany in Wisconsin for their future needs. All of the dem-onstration modules exported to Venezuela were sold by the one week show and delivered to the buyers in several coun-tries.

Weber Tackle– Terminal Fishing Tackle

Russell T. Gilman— Machine Tool Modules

Universal Circuits—Printed Circuit Boards facturing plants that were all running at 98% efficiency with less than 1/4% rejects. Low cost competition was coming from Asia and US sweat shops.

IMD visited European elec-tronics companies and PCB makers to contrast their way of conducting the business with the way business was done in the United States.

The evaluation and sugges-tions IMD encouraged them to

locate the headquarters off shore and to represent foreign PCB makers before they set up their own direct sales network.

The international insight and suggestions along with the con-fidential parts of the report and subsequent advice helped Uni-versal to plot their forward development and corporate evolution into their future as a key supplier in the electronics industry against growing low cost competition.

Universal made printed cir-cuit boards (PCBs) for a variety of electronic customers and had other businesses relating to electronic components and also stuffed the boards with parts as a sub-component supplier to electronic manufacturers.

IMD was retained to give them suggestions about the future of the industry and ad-vice about shaping their busi-ness against foreign competi-tion. IMD visited their manu-

Page 2 Successful Technology

Page 15: International Market Penetration

Nilodor developed a concen-trated chemical mixture differ-ent from masking agents that caused people’s noses to be-come confused in the detection of bad odors. The mixture was so potent that only one drop eliminated unpleasant odors in a 12 x 12 x 8 foot room for 24 hours.

While the chemical eliminated unpleasant odors, potentially dangerous odors were easily detected. The company had several delivery methods from the tap-a-drop and wick to timed spray release. Their

other chemical mixtures elimi-nated industrial odors in sew-age plants, rendering plants, and in industrial processes.

IMD was retained by a com-pany in Japan to develop the relationship and license with Nilodor so they could make and supply industrial deodor-ants and re-odorants through-out Japan.

IMD studied the various mechanisms used to sense odors and developed a business plan that would deliver suffi-cient volumes of product to

create the level of profits de-sired by the Japanese and the training materials for the sales-men in Japan.

Within 2-years, a variety of products from Nilodor’s base chemistry was being used in every major automotive manu-facturing plant’s foundries, core making, and molding depart-ments.

The Japanese imported con-centrates, diluted them, and bottled products for sales throughout SE Asia to expand their business.

around the world. IMD was retained to create a profitable industrial business for a Japa-nese client.

IMD researched and found a window of opportunity existed to introduce chemical anaero-bic thread lockers, pipe seal-ants, anti-seize compounds, cyanoacrylate “crazy glues,” and lapping compounds. Those products were needed but not widely used in Japan.

IMD arranged tie-ups as a Millions of threaded fasteners are used every day in factories

distributor, licensee, and manu-facturer for such products from America and developed delivery methods that were simple and convenient for the users in Japan enabling the salesmen to keep ample sup-plies of all products continu-ously on hand in each plant, replenishing them once a month and issuing an invoice for the amount consumed.

Nilodor—Mal-odor Eliminator

J&M Co., Ltd.—Chemicals for Threaded Fasteners

Durapipe—ABS Plastic Compressed Air Pipework

inside surfaces and electrical connections at each end of the outside surface. Pipes were inserted into the socket and connected to an electrical control box that heated and melted the polyethylene creat-ing a continuous fused plastic joint.

IMD arranged meetings with Japanese utility companies and displayed the technology with representatives from the UK.

IMD matched compressed air

pipe with the La-Man com-pressed air water eliminators introducing a compressed air van business in Japan specializ-ing as a maintenance outsource supplying clean dry compressed air for precision applications.

Durapipe is a well known European supplier of special-ized Industrial pipe. They asked IMD to introduce two lines of pipes into Japan. The first was a yellow polyethylene pressurized natural gas pipe. The second was ABS pipe that replaced copper and iron pipe used for compressed air.

Durapipe had a unique pat-ented socket to join two gas pipes. The sockets were made with heat elements near the

Pursuing

Profitability

for Clients

World-Wide

Page 3 Since 1976 Volume 28—Issue 3

Page 16: International Market Penetration

1500 Colonial Blvd. Suite 102

Fort Myers FL 33907

Phone: 239 872 4143 Fax: 603 388 0385

www.IMDGroup.com

Since 1976, IMD Group has successfully started up new businesses for clients in 39 countries and sold in 105 countries.

IMD’s international penetration uses only the client’s name to set up and man-age markets until they are successful. Representatives, distributors, licensees, and joint-venture networks are set-up and managed by an experienced, professional, international project outsource team using a system that has proven to be quick, cost effective, and profitable in all the major world markets.

Using IMD’s proven international market development methods, obtaining 5% of domestic sales in 20 countries doubles the client’s business with large shipments and with secure payments thereby self-funding the expansion.

Using IMD’s proven methods of finding, securing, and creating new business profit centers, client’s are able to sell new products or services to their existing customers usually at a higher profit margins, acceptability, and convenience.

IMD protects client’s Intellectual Property, drafts and negotiates their agree-ments, sets up the network, manages to profitability, and trains the client’s person-nel to carry on after IMD fades out once the project is self-sustaining.

Both large companies with specific needs and small companies with overall needs have benefited from IMD’s proven new business strategies.

INTERNATIONAL MARKET

DEVELOPMENT GROUP LLC

mix was reduced below its critical point but had no shelf life problems as long as the water in the mix % remained above its critical level.

Water was removed by using a vacuum to pull dry air through the porous core mix. Previously all cores were made by pressurized blow machines that required excessive sealing and clamping. Once the resin was polymerized, soaking in water would not weaken the bonds. When the metal was cast, the only gasses evolved were CO and CO2.

IMD patented its invention in Japan and assigned it to Yamato for their use. Yamato paid for the laboratory, monthly time charges, and a successful com-pletion bonus when the tech-nology, formulae, patent, and equipment design drawings were turned over to Yamato.

Yamato is a progressive foundry in Japan that was trying to develop a new core binder resin system that was ecologi-cally acceptable, low cost, and highly productive. IMD visited their company, saw their de-velopment struggles, and made some formula adjustments on-site that resulted in improved cores and improved casting quality.

IMD was retained by Yamato to develop a completely new binder system that could be patented, manufactured, and sold by them in addition to using it for all their own pro-duction.

Over 2-years IMD set up an R&D laboratory and developed prototype core making equip-ment. The new resin binder invented by IMD was water soluble, and polymerized as soon as the % of water in the

Yamato Manufacturing—Havcore patent

Penetration Strategies & Hands-on Implementation