"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?> "; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

"; echo "   - "; echo mysql_result($result,$i,"name"); echo " "; $i++; } ?>

Marketing Areas
The primary market in Ireland consists of Dublin (population of 925,000), Cork (185,000), and Limerick (80,000). These three cities, together with their environs, account for about half of Ireland's population, including the most affluent customers. Separated from 60 to 160 miles apart, these cities form a triangle encompassing most of Ireland's commercial and economic activity as well as its most fertile agricultural areas (see map).

Dublin, as the capital, serves as the primary channel through which goods and services flow into Ireland. With one-third of the country's population located in the Greater Dublin area, Dublin serves as the political and commercial centre of Ireland. Most of the large purchasing organisations wholesalers, retail buying co-operatives, and department stores have their headquarters there. The Port of Dublin handles more tonnage than any other port and contributes to the city's pre-eminence.

For American exporters, Dublin is the logical starting place for any program aimed at sales to the Irish market.

Cork, the second largest city in Ireland, is a major port and serves as the regional centre in southern Ireland. It has easy access by truck or rail to all regions in Ireland and ready links with European ports. The third most important business and commercial centre is Limerick. The city, with its port facilities, is located by the Shannon River, some 60 miles from the Atlantic Ocean. Perhaps even more important, the city is only 15 miles from the Shannon Airport, a principal stop for transatlantic air traffic and Ireland's free trade centre. Situated near sea, air, rail, and highway links, Limerick is a natural distribution centre for Ireland's western provinces as well as a location to serve the European markets.
Back to Top

Distribution Methods
The introduction of products into the Irish market is uncomplicated and may be achieved by several methods. Product representation throughout Ireland is facilitated by the compact market and may be achieved with any of the following distribution methods to cover the entire area, depending on the expected sales volume and marketing techniques:

- Establishing a sales office in Dublin to serve Ireland and provide a distribution base for Western Europe.

- Selling through an agent or distributor whose activity may cover specified areas, the entire country, or include European sales.

- Selling through established wholesalers or dealers.

- Selling directly to department stores, chains, retailer cooperatives, consumer cooperatives, or other purchasing organizations.

Distribution methods differ with the product and with individual situations, and they must be tailored to fit the particular market conditions in each instance. U.S. companies can use their experience in successful distribution techniques in the United States as a good guide for approaching the Irish market. Generally, consumer goods are best sold through a distributor carrying stocks for immediate delivery and sale, whereas capital goods and industrial equipment are most effectively handled through a commission agent. In the case of certain raw materials with low markups and for capital goods and supplies for which there are limited numbers of potential users or buyers, direct selling probably will be most effective.

The U.S. exporter would be ill-advised, after having appointed a representative firm, to provide only product literature and samples and then expect to have good sales results. Regular communications and visits to the representative, particularly when newly appointed, by seasoned sales personnel or company technicians can provide information on market developments and assist in the solution of any problems. Regular submission of sales reports can be a vital link to analysing sales results and identifying potential problems before a serious one occurs. The Irish can purchase from international sources and expect well designed, high quality products, with efficient after sales service. Thus, an effective servicing system also should be incorporated into distribution plans.
Back to Top

Appointing an Agent or Distributor
Since Ireland represents a compact market, foreign firms customarily have one exclusive representative for the entire country, but it is common for the representative to appoint subagents to cover certain sectors of the market if sales volume and profit margin warrant. Also, a sales representative located in Ireland is in an ideal position to market a product throughout all of Western Europe.

Frequently, American firms will also rely on the Irish distributor to handle the details of labelling and packaging for European preferences regarding the product. The careful selection of a dynamic representative is important for successful sales over the long term. The selection of a good sales representative is also essential because the EC legislation is restrictive regarding the termination of agents and distributors. The European Community Council Directive EEC 86-653 sets forth conditions on termination of a commercial agent and provides for appropriate compensation. Also, Irish legislation protects the interests of distributors as well.

Before entering into any agreement with a partner, the American principal should first review the provisions of Irish law with a qualified attorney. The legislation regarding unilateral termination of distribution agreements is designed to provide the local distributor with some degree of protection and monetary compensation when an agreement is terminated by the grantor, for reasons other than cause. The legislation will apply regardless of any clause in the agreement itself, and the parties may not deviate from the legislation as long as the distribution agreement is in force. Three kinds of agreements are covered by Irish legislation:

- Exclusive distributorships, where the distributor has the sole right to sell specified goods within a defined area.

- Quasi-exclusive distributorships, where the distributor sells almost all the specified products within a defined area.

- Informal distributor arrangements under which the grantor imposes heavy obligations on the distributor and which would cause damage to the distributorship if the grantor terminated the agreement.

In the absence of mutual agreement, or the failure to meet contract obligations, a distribution agreement of indefinite term cannot be terminated by the grantor without reasonable notice or fair compensation. In general, grantors should consider protecting themselves by entering into agreements for definite periods rather than an indefinite period. Also, specific minimum performance clauses should be considered, such as percent of distributor's sales, minimum annual sales, number of business contacts to be made, etc., and proposing that foreign law and a foreign forum have jurisdiction.
Back to Top

EU Legislation on Agents
Under EU legislation, a commercial agent is a self-employed intermediary who has continuing authority to negotiate the sale or the purchase of goods on behalf of another person, or to negotiate and conclude such transactions on behalf of the principal. Each party is entitled to a written document setting out the terms of their contract. The minimum termination notice is 1 month for the first year of service, 2 months for the second year, and 3 months for the third year and subsequent years.

Agents must be compensated if they brought the principal new customers or increased the volume of existing business. The amount of indemnity may not exceed a figure equivalent to an agent's annual remuneration over the preceding 5 years or the average of the period in question. The indemnity is not payable if the principal has terminated the contract because of default by the agent or if the contract is terminated on grounds of age, infirmity, or illness of the agent. The local district offices of the International Trade Administration of the U.S. Department Commerce offer an Agent/Distributor Service (ADS) to help U.S. firms find agents or distributors in Ireland and other countries.

Manufacturers seeking an Irish agent to service the domestic and European market should visit Ireland to make an appraisal of the relative merits of prospective agents. Besides acquainting the U.S. exporter directly with local market conditions and special sales characteristics, a visit also provides an opportunity to discuss policy and sales campaigns with the agent, review responsibility for customs fees, taxes, labelling, business procedures, and payments. These responsibilities should always be clearly defined before undertaking a long-term relationship.

A continued close working contact between the American firm and the agent or distributor is very desirable and should be developed early in the relationship. Certain products and equipment require servicing to maintain their useful life. The U.S. exporter should determine if this is needed and develop a distribution network to include such servicing by qualified personnel. To build trust, loyalty, and marketing skills, U.S. producers frequently bring their agents or distributors to the United States for training and marketing assistance.
Back to Top

Wholesale and Retail Channels
According to the latest census, there are some 34,000 retail and 2,500 wholesale outlets in the Irish Republic. The distribution system, especially at the retail level, still consists of small outlets by American standards. Nevertheless, the Irish distribution system is moving toward larger, more economically viable units to meet changing market needs. The increased tempo of commercial and industrial activity, as well as suburban development, is bringing about changes in the distribution system.

Wholesalers supply a variety of services to associated small retailers, including sales promotion, advertising, and retail training. In some cases, they combine as a group to purchase from manufacturers and then distribute the goods to their customers. Retail outlets in Ireland range from the large department stores to the small shop owned and operated by an individual. Although most retail outlets are small, such enterprises are decreasing in number as efficiencies of scale and purchasing power become the major competitive factors bearing on profit margins. A trend toward larger outlets has been under way, with the formation of chains, expansion of department stores, establishment of medium-size department stores, and the development of chain stores under single management.

Discount firms, especially those handling consumer electronics and domestic appliances, are still increasing, and the number of self-service stores is rising steadily. Self-service is not confined to small merchandising units as department stores and gas stations also have incorporated this sales technique in their operations.

There is increased acceptance of the retail franchising concept by the Irish business community and consumers. This form of marketing now represents some 7 percent of retail sales and is rapidly growing. Franchising has been on the increase due to changes in consumer buying patterns, the spread of suburban living, greater affluence, and an increase in the number of working women. There are few regulations concerning franchising and none that limit market access to U.S. firms.

The European Union has issued regulation EEC 4087/88 regarding franchising which provides a unified code for the 15 member states. Its main thrust concerns price fixing, transfer pricing, non competition clauses, and exclusive dealing. It also exempts certain franchise agreements from the EC antitrust regulations. The Irish Franchise Association, 13 Frankfield Terrace, Summerhill South, Cork, was established in 1985 to promote proper business standards in this sector.

Mail-order sales account for a very small part of total Irish retail sales. Certain firms have used this technique successfully in combination with their usual retail outlet operation. Promotion is carried out by catalogue or by newspaper advertisements with no personal contact. Hobby centres, do-it-yourself, auto supply centres, and discount stores also are enjoying great success.
Back to Top

Consumer Profile
When seeking sales in Ireland, American firms should remember that the average Irish consumer is young; about one-half the population is under 28 years of age (see Table 1). The birth rate is the highest in Europe, and the Irish youth tend to remain at home longer than their U.S. counterparts. The past few years have witnessed a significant rise in the standard of living, and despite high unemployment, Ireland's young consumers still have high expectations for the future.

The Irish have friendly ties with Americans and are aware of U.S. styles, cultural activities, and events. Many have visited or lived in the United States or have close relatives in America. The average consumer has an international outlook and a world of consumer products from which to choose.

Quality, pricing, and proper marketing are all sensitive elements in the decision-making process. Private consumption is increasing by 3 to 4 percent annually. The average gross weekly household income in 1987 was $347 with an weekly expenditure of $312. The analysis of weekly expenditures follows:

Table 3 - OWNERSHIP OF CONSUMER DURABLES

Back to Top

Transportation
There are direct air connections between the United States and the Republic of Ireland. Ireland has international airports located at Shannon, Dublin, and Cork. Aer Lingus, Ireland's government-owned airline, operates domestic air services as well as cross-channel flights to and from the continent of Europe. It also operates transatlantic services between Ireland and the United States. Numerous American carriers provide service to Ireland with direct flights from the United States.

The state-owned railroad system, Coras Iompair Eireann (the Transport Company of Ireland or CIE), operates rail and bus service throughout the country, including some urban and tourist bus service. CIE also operates several hotels and has a road freight service. Road haulage is an important form of freight movement although the roads are not up to European standards. CIE may be contacted by writing to Heuston Station, Dublin 8. In addition to CIE, there are private licensed hauliers providing road freight service. Of these, only about 125 are authorised to operate throughout the whole of Ireland. Information on licensed trucking firms may be obtained from: Irish Road Haulage Assn., SCD House, Ballymount Road, Dublin 2.

The principal Irish ports are Dublin, Waterford, and Cork. These ports maintain dock and storage space, container terminals, roll-on/roll-off, and bulk handling equipment. They feature good inland transportation connections by rail and road. The ports have frequent sailings to the United Kingdom, France, and other points. Direct ocean shipment to the United States is infrequent with most goods transshipped at Liverpool or other British ports. Belfast, Northern Ireland, also is a large port serving the Republic.
Back to Top

Utilities
The Electricity Supply Board (ESB), a statutory corporation established in 1927 to develop the Shannon hydroelectric system, operates 28 generating stations. The energy sources used are coal, 41 percent;gas, 27 percent; peat, 17 percent; oil, 8 percent; and hydro, 7 percent. ESB also sells and repairs appliances and provides an international consultancy service. Bord Gais Eireann (Irish Gas Board), organised in 1976 as a state-sponsored body, develops and distributes natural gas. It oversees the development of offshore gas fields, pipelines, and service to industrial and household consumers.
Back to Top

Advertising
A full range of advertising media is available in Ireland. Two of the three national radio stations and the two television stations broadcasting in Ireland are the monopoly of Radio-Telefis Eireann (RTE), a state-owned corporation. There are also a large number of private radio stations operating.

The Irish cable television system is available in urban areas with about one-third of the population having cable service; another third having multi-channel service, which includes British TV transmissions; and the remaining third receiving only RTE television programming. Radio-Telefis Eireann has a code of standards established by the Advertising Standards Authority of Ireland with which all advertisers must comply. Advertising film must be approved before showing. Detailed advertising rates can be obtained from Radio-Telefis Eireann, Advertising Sales Division, Donnybrook, Dublin 4.

Ireland has approximately 60 newspapers and 150 periodicals or trade magazines. The Dublin dailies are the only newspapers having national distribution. There are three daily morning and two daily evening papers published in Dublin. The Irish Independent (morning) has the largest circulation, followed by the Evening Press and Evening Herald. The Irish Times (morning) has the smallest circulation in Dublin, but reaches the important business and finance market.

The principal advertising media are the press, 40 percent; television, 36 percent; radio, 15 percent; and outdoor, 9 percent. Cinema is primarily a support medium with a strong reach among the 15 to 24 year olds. There are numerous advertising agencies with a wide range of services. The large ones provide a full range of advertising services and are members of the Institute of Advertising Practitioners, which is closely associated with the American Association of Advertising Agencies (AAAA). Advertising agencies utilise every medium available to advertisers: direct mailings, press, radio, television, point-of-sale advertising, posters, and public transportation placards. Other promotional techniques, such as coupons, samples, premiums, and prizes, are also used.

Laws covering gaming and lotteries as well as restrictive trade practices are strictly enforced by the government. Firms advertising and selling goods should obtain local advice regarding provisions of the laws and consumer acceptance of the promotional or marketing approach. The names of Irish advertising agencies, market research organisations, and management and public relations counselling firms may be found in such publications as the "International Directory of Market Research Houses and Services," American Marketing Association, 420 Lexington Avenue, New York, NY 10017, (212) 687-3280 and the "Directory of Marketing Research Agencies and Management Consultants in the United States and the World," Bradford, P.O. Box 276, Fairfax, VA 22030, (703) 560-7484.

Firms engaged in market research in Ireland are all headquartered in Dublin. These firms provide the usual range of services, including store audits, consumer surveys, product field testing, attitude and motivation research. In general, if the advertising technique works well for your particular product line in the United States and elsewhere in Europe, the Irish market should also be receptive to your theme. There are differences, however, and local opinion should be obtained first for a specific strategy that calls for a major commitment of resources.
Back to Top

Trade Fairs
Exhibitions are a cost-effective method to enter a foreign market and meet a wide range of buyers interested in a particular industry sector. Sales professionals find that trade fairs attract extensive buyer attendance and frequently can be used to gauge acceptance and pricing of new products and observe the competition. In the course of a few days, a new market entrant will be able to generate more qualified and motivated prospects than by using any other sales approach. New products are frequently introduced at trade shows so that competitive products can be identified and evaluated as they emerge in the marketplace providing important marketing information. Fairs are particularly useful for introducing a new product to the market or for finding an agent, distributor, or representative.

Due to the proximity of Ireland to major trade shows in European cities, the Irish trade fairs tend to attract a more local trade and consumer buying audience. The most important of the Irish trade fairs is the Spring Show & Industries Fair. It covers farm machinery, consumer goods, and almost any product one might wish to display. This event attracts wide attendance and traditionally commences on the first Tuesday in May at the Royal Dublin Society Grounds in Dublin. In addition, a number of specialised trade fairs are confined to specific product categories. The most significant are listed below:

- Holiday and Leisure Fair. Annual event in January or February. Irish Trade and Technical Exhibitions, Ltd., Belgrave House, 15 Belgrave Road, Rathmines, Dublin 6.
- ENQUIP (Engineering/Industrial Equipment). Annual event in February. Royal Dublin Society, Ballsbridge, Dublin 4.
- COMPUTEX (International Computer Exhibition). Annual event in February. SDL Exhibitions Ltd., 68 Fitzwilliam Sq., Dublin 2.
- Spring Show and Industries Fair. Annual event in May. Royal Dublin Society, Ballsbridge, Dublin 4.
- INTRON (Irish Electronics Instrumentation Automation Exhibition). Annual September event. SDL Exhibitions Ltd., 68 Fitzwilliam Sq., Dublin 2.

Click Here for a complete listing of Irish Trade Shows and Events.

Back to Top