However, despite a growing international reputation, only around 10% of the company’s turnover is achieved through exports. Prompted by a number of lucrative Middle Eastern contracts, gained via recommendation, Cornish Stairways began to think seriously about developing an export strategy. Chairman Michael Jordan explains: “Ours is a bespoke product targeted at the very top end of the market. We chose Dubai as a potential export market due to the high concentration of prestigious construction projects and the preponderance of English-speaking architects and contractors.” The company approached the Export Marketing Research Scheme at BCC for assistance in formulating a marketing research strategy that would enable it to determine the potential for such a specialised product. The scheme also provided a grant to help fund the cost of a 10 day fact-finding trip to Dubai. “My research confirmed that there was indeed, an excellent marketing opportunity in and around Dubai,” says Michael. “However, I was surprised to discover how much cheaper the labour costs were there in comparison to the UK – up to 80% lower in some cases. This led to an important change in our marketing strategy. We found that it was better in many cases for Cornish Stairways to provide the design expertise and for the product to be made and fitted in Dubai. Without this change in focus, the costs of labour would have made our product uncompetitive.”
The company also found it invaluable to gain an insight into the Arab culture through face-to-face meetings. As a result of some of the personal contacts forged, Cornish Stairways was subsequently invited to tender for – and won – contracts to supply the prestigious Burj Al Arab and Jumeirah Beach Hotels.
Michael concludes: “Marketing research is the critical first step in formulating a successful export strategy. As an SME, we can’t afford to make mistakes and the export marketing research helped to uncover some important information about the way the market operates in Dubai, from which we could work out the best way to approach it. As a result of this trip, I estimate that we have been able to generate additional export income of around £200,000.”