Enter the market with a thud!
Most people say right timing is everything for a successful business move. But when it comes to the market, there are a lot many factors that come into play, and mastering all of these results in creating a perfect market entry strategy unique to your business.
What’s the first that comes to your mind when we say market entry? – Either a new entry in the market or an existing company that is scaling up or expanding. To enter the market smoothly, the first and foremost thing to do is to check the grounds you plan to lay your foundation on. How do you do this? The answer is simple – ‘Market Research’.
To win the market, you need to understand your target audience and their cultural nuances which will help your offering withstand the market pressure. 94% of consumers discontinue brand relationships if messaging is not on point. Let’s consider Tesla for example. We all know that Tesla plans to enter India shortly. However, India is a developing economy and the average income of a person in India does not allow the larger population to afford a Tesla. The larger population of India consists of the youth and half of them are still pursuing their studies or are unemployed due to the covid situation. In such a case, will Tesla profit by entering the Indian market or will it live a short-lived life? Only time will let us know.
Market research for your startup or business expansion is a great company assistant. You need to research to uncover the other side of the coin, which all this time has been hidden from the rest. Outsourcing your market entry strategy research to companies like Maction not only proves to be profitable but also saves time, money, and resources.
But the question is, HOW?
How to Create a Winning Market Entry Strategy for Your Business?
How to create a winning market entry strategy for your business in three easy steps:
Define Goals & Objectives: The first and foremost step is to set a baseline for your entry. Jot down the exact targets you expect to meet and quantify them in achievable milestones. These include but are not limited to – business goals for expansion or entry, your sales target, the specific product or service you plan to offer, your target market, timelines, and actionable steps to achieve these goals, budget, and other resources.
Industry Attractiveness: Before jumping in or launching a new product in the market, it is always advisable to measure the depth of attractiveness for your product in your target market. There are various questions that you need to look at and answer. These include but are not limited to –
- What is the potential of your target market?
- What is the growth rate of the market?
- What is the size of the market?
You need to study and thoroughly analyze your target consumers’ behavioral and spending patterns. This can be done through surveys. Surveys help in understanding the demand for the product in your market and put you in a better position to redo your market entry strategy according to the newly learned data points.
Identify Which Segment To Focus On: They say, if you don’t have a market, you should create one. However, unless you have an extraordinary product or service, nobody will be interested in the first place. So, how to get this momentum going? Simple. Just answer the question – “Where to play?”
This can be done with the help of competitive benchmarking and product-market fit analysis.
For instance, if you are launching a new sunscreen in the market, your product will not work if you aim for consumers in Antarctica. It’s practically not possible. However, on the contrary, if you sell your product in Asia, Africa, or warmer regions, your product will sell out like hot cake. That’s exactly where market research comes into play. With thorough market research, you know where your product will be in demand so that you can meet the supply. Because if not, then what’s the point, right?
Consumer Behaviour: One of the most crucial factors that play a key role in your market entry strategy is consumer behavior. It is essential to study and understand the cultural differences and ethnicity of the geography you plan to launch in. Let’s take an accessory brand for example. Say you wish to introduce wigs in the market and you chose Riyadh as your target market. Facts stated, your product won’t do well in the market because the majority of the women wear hijabs and as a part of their culture, they are not allowed to remove them. Hence, no one will be interested in your product.
Alternatively, if you try to launch a new cosmetic in the market, you need to be very careful with the making of the product. It should be animal and nature-friendly to be accepted in the market. These are little things that will set you apart from your competitors and market research helps you do just that and much more.
Doing this all by yourself might seem daunting. This is where Maction comes into play. With strong industry expertise and global presence, Maction has helped clients in framing a winning market entry strategy.
Distribution Channels: Your choice here totally depends on the model you wish to operate through. Be it B2B or B2C, you need to map out the exact manner in which you wish to open the doors to your products and service to your target market. You can choose from varieties of options ranging from an online store to a brick and mortar, that doesn’t matter. However, market research will give you an upper hand in making this decision as it places the most profitable options right in front of you to choose from.
How To Win Over Your Market: If you’re selling your products and services to a large number of people, you’ll be spending more money on marketing than you need to. A marketing campaign must be planned and laser-focused to succeed. Focus on a distinct target market for each of your primary services or product specializations, and create tactics that are tailored to each niche. Lastly, consider a detailed market study to finalize what product/ service features to have, which distributor channel to prefer, and what type of market positioning has to be taken.
The Bottomline
Risk has always been there in the market. However, for your product or service to stand the initial windfall and pressure from your competitors, you need to have a master plan and a greater entry strategy in place to enter the market with a thud! A customized and well-drafted market entry strategy not only gives you a kickstart on your business path but also aligns you with your long-term business goals towards profits.
