Export Odyssey
Brief:
Kepley Biosystems INC is a biosystems company aimed at the advancement of stronger environmental solutions to problems we
face in the world currently. Creating different items which are solutions and changes to how people do things. The company
specializes in many items like Organo Bait which is a synthetic crustacean bait with the focus on putting a dent in forage fish
depletion. Another focus of Kepley Biosystems INC is their extended research in crabs. Horseshoe crab horseshoe offers
information on many diseases and is studied all over the world for their impressive body fluids and blood. Kepley Biosystems
INC has an effective and humane way of doing this research as well as trying to put a stop to the killing of these horseshoe these
experiments around the world. One of the more popular items that Kepley Biosystems has invented is Kepley K9 strategic scent
solution. This product is impressive in its mechanics using a dog’s strong sense of smell to help prevent the common problem of
“accidents” in areas where they shouldn’t happen. Many times dogs are adopted and taken back to the shelter of adoption because
of these accidents. Kepley has created a product that aims at reducing or rather relocating the spot of these accidents. This
product is almost like a scent laxative that allows the dog to defecate at the appropriate time and on schedule with the owner’s
schedule. This product is the focal point of our marketing strategy.
2. Current Marketing Strategy
• Target Marketing- The current target market for this product is Dog owners, Pet shops, and Dog shelters.
• Differentiation- Strategic scent differs from competitors through the use of specific science to create a unique product
that works to help solve the problem of dog accidents.
• Competitors- There aren’t many competitors to strategic scent as it is its unique product with not many other products
similar to it.
• Product- Kepley K9 has a lot of differences that make it more unique than most products. Backed by science Kepley
offers up more proven satisfaction and offers instant results. The ability for the strategic scent to increase the odds of
defecation amongst dogs while also being controlled by the owner allows for the schedule to be controlled by the
owner. This works better and faster than most products also being more accessible by the owner of the product. Not
requiring a feeding but just a drop of the solution on the paw.
• Price- Strategic scent stimulant is priced pretty reasonably currently at the price of 11.99. When looking up other dog
stimulants they are priced at about a similar price. They are all around 10-15 dollars but Strategic scent does not require
you to feed the dog.
• Place- For a place, this product is distributed through amazon and different dog shows around the area and country.
• Promotion- Currently Kepley biosystems promotes this product through google ads, Dog podcasts, and local press.
These are the current promotion strategies by the company and are working for the time being.
3. Export Strategy of the Firm
Kepley Biosystems is yet to export any products therefore, this export will make this firm a first-time exporter.
4. Harmonized System Code (HS) for your product
The Strategic Scent product made by Kepley K9 has not been exported outside of the United States before our meeting. After
conducting research and having discussions with Kepley, about what the product is used for, how it is used, and how it was
brought about, the team concluded that Strategic Scent is an assistive walking tool. When locating a Harmonized System Code,
we ran into issues of determining what this product would categorize as. Due to the product being innovative there were no
similar products to Strategic Scent. Focusing on what the product was made for we concluded that the product was made to
encourage dogs to use the bathroom faster and help the person walking the dog shorten the duration of expectancy of when
during the walk.
We chose to associate this product with code 4201006000, this code pertains to products that mention/use walking aids. Given
that there aren’t many codes focusing on pets specifically, dogs, we found a code that would relate the most closely to which
concerned walking aids like leashes, harnesses, muzzles, and dog coats. Even though Strategic Scent is very different, we can still
use this code as a surrogate for dog-related products.
5. Net shift Analysis
Top 20 Import
Markets
Top 5
Import Markets
(Based on Quantitative Analysis)
Re-ranking of
Top 5 Markets
(Based on Quantitative and
Qualitative Analysis)
Top Export
Target
1. Spain 1. Korea, Republic of 1. Netherlands 1. Netherlands
2. France 2. Netherlands 2. Australia
3. Netherlands 3. Australia 3. Korea, Republic of
4. Korea, Republic of 4. Spain 4. France
5. Italy 5. France 5. Spain
6. Denmark
7. Australia
8. Hong Kong, China
9. Norway
10. Argentina
11. Panama
12. Switzerland
13. Israel
14. United Arab
Emirates
15. Turkey
16. Iran, Islamic
Republic of
17. Egypt
18. Sweden
19. Greece
20. Qatar
When re-ranking our top five, we considered the changes in growth rates, United States and total imports, as well
as the trade restrictions that came with those countries. We put the Netherlands at number one mainly because they are
the only country of the top five that is trending positively for U.S. imports, coming in at a 24% increase. The only concern,
even though there are little to no trade restrictions there, is that they have a “Buy European” model pushed by their
government. The solution to this we found at Trade.gov, where you can contact the U.S. Commercial Service in the
Netherlands and try to get approved by their government to prevent our product from being marketed against in favor of
European alternatives.
We put Australia at number two on our list, even though it is currently trending down on U.S. imports at -28%. The
reason that it still makes number two on our list of potential countries is because it has the least amount of decrease out
of all the countries that are trending down regarding U.S. imports. Australia is still seeing a 3% increase on total imports,
so we believe there is still an achievable market that we can reach. Even though they do not have a buy local campaign, a
challenge we would face would be the tariffs that are placed on imports. From what we have found, the tariffs are not
significantly high so we believe we can still be successful here in this market.
Republic of Korea is coming in third on our re-ranked list due to the increase in local production and other
countries’ imports. In the past four years, there has been a decrease of 89% in U.S. imports there, while their total imports
have increased by 10%. Even with these statistics, we can see us being successful here due to the good relationship the
U.S. has with Korea, seeing no restrictions on our imports. The only issue is that the Korean government has started
providing subsidies for local business, which is seeing more competition if we chose to enter this market.
At the bottom of our list, we have France coming fourth and Spain coming in fifth. We are going to discuss these
two countries together since they both share the same qualitative data, both being a part of the European Union. Both
countries are trending down on U.S. imports, seeing France down 43% and Spain down 57%. Even Spain is trending down
on total imports showing -3%, while France is staying relatively the same at just about 0%. The reason why these are our
last two picks of the top 5 is because both countries are trending down on American products and are part of the
European Union. The E.U. does encourage trade with the U.S. considering their relationship, however, the tariffs on the
imported goods to the members of the E.U. are more costly then of the previously mentioned Australian tariffs. Even
before the re-ranking the Netshift Analysis had these two countries at the bottom of our rankings, so we feel comfortable
leaving them in those bottom two positions.
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