Year after year, we hear about ambitious market entries going kaput. Take for example Target’s Canadian expansion, which came to a grinding halt within two years of entering the country. Why is it that so many organizations fail to succeed in new markets? While the idea of entering a new market might seem viable on paper, few actually come to fruition. To be successful, you need to plan your market entry strategy based on a thorough understanding of the market landscape and the competitive and regulatory environment. Based on our experience of helping clients penetrate into new markets, we’ve outlined four steps for a successful market entry strategy.
1. Understand the size of the market and its growth potential
It’s impossible to succeed in a new market without first understanding your market. You’ll need to assess the market landscape and find out if there’s considerable opportunity for growth. Start by researching your target customer segment, market drivers, and regulatory and environmental trends, etc to estimate the size of the demand and supply. It is at this stage that you’ll need to consider what your competitors are offering to be able to identify a unique value proposition.
2. Analyze previous market entries by companies similar to yours
Determining the right entry model helps you find the right audience and set the right price. This can be done by assessing previous entries by other players in your target market. It is also essential that you evaluate the advantages and disadvantages of the different entry modes to select the best-suited model for your entry strategy.
3. Identify the right business partners
Once you’ve pinned down on the mode of entry, it’s time to evaluate the right partners, such as distributors, suppliers, marketing agency, and so on. Ensure that they have the right industry-focus and capabilities required to sell in your target market. Analyze their company financials, value proposition, and service offerings to able to establish mutually-beneficial partnerships.
4. Determine which product to launch first
Customers often remember brands by their first product. So it’s important that you choose one that immediately resonates with your target audience and showcases your unique value proposition. Identify your launch product based on factors such as the market need, level of competition, the uniqueness of the product, and price attractiveness.
Download our case study to find out how a baby care products manufacturer based in Turkey planned a successful market entry strategy using Netscribes’ outside-in approach.
Get in touch with us to know more about how Netscribes can support your market entry strategy.