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Project Manager of Schwanden for starting exports

Läderach, the confectionery company, expands to far-off markets with Project BXA Management

BXA Projektmanagement, a company with its head office in Schwanden, is one of the over hundred partner companies of Fargate AG, an enterprise with global operations for Swiss exports. Managing director, Beat Widmer, currently has the opportunity to carry out project management in export marketing on behalf of Läderach. Last Thursday, he introduced the partnership with Fargate at the technology center at Linth. The business partner, Jürg Läderach, reported on his initial experiences in the same forum.

By organizing this event, the young entrepreneur, Beat Widmer, managing director of BXA Projektmanagement, wanted to give entrepreneurs and decision-makers within companies an insight into the main factors at work behind the forging of new partnerships in the field of exports. By citing the example of a particular client, which in this case was Confiserie Läderach, he wanted to demonstrate how Fargate was planning to build bridges to international target markets. The pantomime artist, Christoph Staerkle was also invited to provide a cultural interlude to the event.

Beat Widmer briefly outlined the evolution of the company from an enterprise which has moved from "lean management" to an "enterprise of core competencies" to its final stage of transformation into what is called a "fractal enterprise". He views the latter as an opportunity for offering a "virtual" container of products and services to "fill the virtual spaces in an entrepreneurial manner". BXA Projektmanagement is engaged in building up business contacts. It offers services in the spheres of consultancy, coaching and training and its service offer is in a modular format.

Expanding to far-off countries

Läderach Chocolatier Suisse, a company with its head office at Ennenda, entered into a partnership with Fargate with the firm resolve of expanding its export operations. The task of project management for export marketing is being handled by BXA Projektmanagement. The same afternoon, the managing director of the company, Jürg Läderach, spoke about the four months of his experience with Fargate AG. In Fargate, he sees an opportunity for bigger SME's to realize their desire of exporting their products to far-off countries. Läderach Chocolatier Suisse deals in confectionery items such as chocolate candy, chocolates, seasonal articles, semi-finished products as well as dessert and aperitif specialty items.

The confectionery company Läderach with three production centers in Switzerland, Germany and Romania and 380 employees on its payroll, has a total annual turnover of 45.5 million Swiss Francs. Exports account for 31 percent of the total turnover. Fargate, as its contractual partner, looks after export marketing for the company exclusively for the production center based in Switzerland. The Ennenda plant, which has 180 employees, boasts an annual turnover of 32 million Swiss Francs.

Outsourcing partner for exports

Läderach had hitherto been hunting for its export partners in fairs, through word-of-mouth publicity or export promotion agencies such as Osec [Swiss Office for Trade Promotion]. Jürg Läderach does not want to run down any of these options, especially that of word-of-mouth publicity. But in due course of time, some weaknesses inherent in the old system started coming to the fore. Amongst other points, he states that the search for export partners was often not conducted aggressively enough and that it was difficult to keep proper track of the activities of the export partners.

By handing over charge of the export sector to a specialized service-providing company like Fargate, Jürg Läderach sees an opportunity of exploring international markets in a more efficient manner. This is made possible by means of a systematic analysis of the distant market carried out with the help of the local satellites who would loyally safeguard Läderach's interests. Thanks to this co-operation with Fargate, many solid contacts have already been established in three of the seven target markets. Moreover, this has also paved the way for numerous other business opportunities for Läderach.

Role of product manager

"How much money can an SME allocate for exports?" This is one of the main questions confronting Fargate, explained board member, Tony Bächle, in his introductory presentation of new enterprises in the Swiss export market. A Swiss company intending to export to foreign countries has the option of choosing from amongst the various traditional contractual partners such as Osec, Swiss Export, Swiss Chambers of Commerce and Industry, diplomatic missions and consulates. However, before they can enter the target markets with the help of these channels, companies often tend to stumble over the details especially at the time of forging links to international markets, Tony Bächle cautions.

When a company hands over the task of tapping international markets to a company like Fargate, it assumes the role of product manager and operates in the local markets through its satellites. International communication is effected through the internet. Thus, with the help of Fargate, the client can step onto a readymade international platform since Fargate with its 130 satellites is already present in over 35 countries spanning the globe.

For bigger SMEs'

At the time of evaluating the export potential of a company, it is necessary to clarify who the most interesting distribution partners would be. As part of the requirements of a contractual partner, the company concerned should have its registered office in Switzerland and be able to show an annual turnover of 20 million Swiss Francs. Apart from that, it should already be engaged in exports as well as be in a position to raise an investment budget of 50,000 to 100,000 Swiss Francs. Fargate on its part, would strive to attain a turnover of 1 million Swiss Francs in exports as its target. As the sales initiator, it would be entitled to a share of the profits generated from this business.

Today, Fargate can speak of its wide and varied experiences gained at the time of opening up markets in numerous countries all over the world. This includes all the countries in Central Europe, the North American states and some Latin American countries like Argentina, Brazil, Chile, Cuba and Mexico. Asian countries such as China, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand and Vietnam, as well as Australia and New Zealand also form part of this list. The Fargate story started in the year 1996, when the pilot company, Tozai AG, was established. Two years later, Fargate was born out of this company. Today, the company domiciled at Technopark in Zurich, employs 10 persons in Switzerland.

Jean-Daniel Urben, Editor