With the proliferation of the Internet, the whole world is a marketplace to launch your business, product, or service, connecting consumers and businesses at a fast pace. You need to be armed with a clear strategy, which may not guarantee success but would be a starting point when it comes to market expansion.
When considering new markets to launch or expand your product, a due diligence process is an important one, but it shouldn’t be hasty. The risk associated with expanding to a new market is high; hence, the feasibility of your product’s success should be assessed first.
Here are the building blocks you need to have before thinking of market expansion for your product.
Market and Customer Analysis
Entry to a new market demands thorough market research. The dynamics of the market needs to be looked into thoroughly. Knowing your demographics (age, gender, education level, income), a mix of your customers and their interests in a particular market is crucial here. Market analysis, either done in-house or by engaging a market research company should include a gap analysis to make sure there is a demand for your product or service, a forecast demand, market growth rates, potential competitors and barriers to enter due to taxes or regulations. A product gap analysis against local products and a SWOT analysis against a local competition is required, amongst other things, in a competitive marketplace.
Leverage Partnership or Joint Venture
A new market poses a new set of challenges; hence, a partnership or joint venture would mitigate many risks when it comes to entering and navigating in new and unfamiliar terrain. Find partner companies who know the local market and will help with the distribution strategies with their localization services. They will be familiar with the applicable local laws and business practices, which your business can leverage. The partners can help build local sales and customer service teams to market to and service customers better. Merging with another company with a strong market presence and a financial standing can also be considered.
Distribution is key to be able to expand your product and boost revenue, while competition and price are crucial aspects too. A distribution channel can be a department store, retail shop, reseller, mobile app, or the Internet. With fast changes and technological innovations happening, the distribution channels are not the same. Your sales method and sales team will affect the bottom line, as much as a customer-centric distribution channel and infrastructure, so select and empower the sales team to help you break into the new market.
Once you have a somewhat clear understanding of the market and customer base, then goals, budgets, timelines of marketing campaigns, KPIs and success metrics need to be defined, based on which your business will make forays into the new market. Marketing the product or service should align with your brand or business goals. The message for the new market is critical as it should be relevant and localized. Consider participating in industry trade fairs to see whether the product will have traction in the future or not. Exclusive preview as part of the ‘product unveiling’ in the new market, offering discounts and exclusive offers, could create excitement. Adding urgency by making a limited offer, either time-wise or inventory-wise, will give people an incentive to buy and try the product swiftly.
Special offers floated in social media and through online platforms, and paid advertising will help in entering a new market, so social media marketing plan becomes not just part of the overall marketing plan but should be the responsibility of a dedicated in-house team or a consulting company you hire. Free giveaways in a social media contest attract attention and drive traffic to the site, store, or business and help connect with customers in a new market. Email marketing should not be relegated to the back, as its importance cannot be stressed more.
Please contact us to know how NeuroTags technology helps brands to decide the strategy for market expansion.