We have made step-by-step instructions relevant regardless of time and circumstances for those who are planning or are already preparing to enter a new market. Particular emphasis was placed on the crisis – a period when complex and demanding process acquires new features, challenges, and often unprecedented opportunities.
Stock up on tea/coffee/patience and perseverance and read our material
In this article you will learn about:
Let’s begin with why did you set a goal to enter a new market. This may seem simple but right now, as you’re reading this, make it clear: How did this idea come to you? This is 10% of the way and will help to clarify the next steps.
When reading the step-by-step instructions, remember the initial goal, and choose the appropriate option.
Perhaps you have a significant part done based on your experience and the history of an existing business – this will significantly reduce the preparation process.
We will guide how to
For example, to become exotic for the local consumer, thus to stand out from the crowd. A possible option is when the selected market segment is filled with similar products: plenty of choices, but none of the competitors stand out, and your product will be able to take a worthy place. Often the desired goal is to occupy a higher price segment than before.
Various examples – almost anything that comes to your mind but with authentic, local (place of origin) characteristics:
The globalized world makes it harder to stand out, you are less likely to surprise the potential customers. Therefore, the main focus should be on unique product characteristics that weren’t available before. New emotions, customer experience, new techniques for daily actions– you choose what to present as a brand new feature.
Explore the following components: current market competitors, new market competitors, what are the fundamental differences/similarities. Guidelines for analysis: business model, product characteristics from creation to promotion and sales, customers, trends, Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis).
We prepared an actual example of what SWOT analysis looks like and you can use the same approach for competitor analysis. The company everyone heard about – Microsoft. You will get the idea quickly with the following key points :
Based on the current situation (or opportunities available now): market segment, geographic location, demographics. It is most practical to choose a target market that is slightly ahead of your current position. The main emphasis is on “slightly”: entering a new market is complicated enough to focus on, rather than trying to do everything at once.
Further growth and expansion will be determined later while sustainability and consistency are fundamental for entering the new market.
Keep reading for more information on each of the topics!
A more specific level after the target market – an approximate portrait of the consumer (it also reflects the target audience).
It’s an estimated general idea of who might need your product: age, hobbies, occupation, favourite brands, etc. Buyer persona depends on the data you have, so it may change over time.
Buyer persona portrait makes business processes more specific on every stage. You consciously give up your own vision of what is better in favor of the idea of “walking in clients’ shoes” and offering what they need.
Let’s be concise: we prepared real examples for each of the market entry options.Your task then is to choose the most suitable one for further expansion in a new market.
Are there any other market entry opportunities?
There’s another option, often considered as alternative or complementary to one of the previous information. Igor Ansoff Matrix (The Ansoff Matrix, also known as the Product/Market Expansion Grid) was developed in the middle of XX century and remains effective nowadays:
How to use it?
The four quadrants offer market expansion options and identify possible risks according to the desired goals. The role of this scheme is to make sure once again that entering a new market is the optimal scenario for business promotion.
With this matrix, you move from the safest to the most risky strategy:
It’s easier to enter a new market if you have a business partner who shares common goals and has relevant experience, and can take on some of the duties and responsibilities.
Cooperation is optional: if you planned a similar idea before, now is a good time to try. The partnership should be declared as detailed agreements with both parties’ positions. An additional guarantee of the success of the cooperation is a lawyer helping with the formalities and their precise formulation.
The idea of cooperation that the RGray offers is not to go into unexplored spaces yourself and to conclude with the support of a business partner.
Apple and IBM announced strategic partnership in 2014 to use each party’s strengths and achieve results they would not get working separately. Both enterprises are world leaders (as well as competitors) in the market and companies’ management found key targets to develop in cooperation:
– factors that positively affect doing business in a particular market compared to other participants.
How to make sure it’s a competitive advantage? Think about the value your company offers to customers: Why do they make a choice in your favor and keep coming back?
Having reached this stage, you probably know what’s your competitive advantage. Any doubts left? Use Competitors Analysis – it’s easier to notice what you have and competitors don’t, and vice versa.
How do other companies do that? Take a look at 5 examples:
Figure out your financing needs to entail identifying the sources of income and taking into account all current and future expenses, with an aim to meet an individual’s financial goals. This is pretty clear: making ends meet taking into account current opportunities, profits, expenses (especially unscheduled).
an effective way to organize workflows and interact with potential customers, leads, existing customers.
You can find alternatives where the funnel is claimed to be ineffective. We do not agree, because the marketing funnel is a reliable way to organize and improve lead generation processes, customer awareness, and build long-term trusting relationships.
Can everything be as simple as this picture? Yes, there is no need to complicate when a proven approach works. At the same time, there is plenty of room for creativity and innovation. For example, in the first stage (Awareness), you choose to attract potential customers, communication channels, advertising, etc. It is also an opportunity to offer useful materials/tips/ideas that are not directly related to sales.
A bright company example is Tinder. No matter if you used it or not but you definitely heard of it because that’s how their Awareness stage works.
When did you hear about it for the first time? Perhaps a friend told you or someone was spilling the tea over the new romance “Oh, they started dating on Tinder”. You learned about the company even without any certain advertisements!
However, this way you will be remembered, you will take confident steps to create new customers – the funnel offers many options for the development of events based on certain stages.Is it possible to modify the funnel? Yes, these are not strictly defined rules, some situations involve reducing certain sections of the funnel path or adding new ones as needed.
Сompany image, PR, building a business strategy based on cultural, macro- and microeconomic characteristics, consumption culture in the selected market – each of these areas impacts the perception of you as a new business in the market. Gradually thought-out representation of the company helps to establish itself as a professional among competitors and win the favor of new customers. Also, it contributes to being effective in the Awareness stage of your marketing funnel.
Related: 7 Steps to Build a Quality Brand
Modern market does not tolerate neglecting small things. Thus, the primary task of a competent representation of the company is to not be rejected in the new market.
You need a convenient website to promote your business online. If you don’t have one – we strongly recommend working on it and fill in with relevant content. A quality website designed specifically for an online business is a great investment and will return quickly.
Having a website, the business will grow many times faster. It’s not about a few percent or several times growth. An online audience is absolutely everyone who can find a company online and learn about your business – it’s a huge scale.
Mobile application development is a more specific case and we’re not going to persuade everyone to develop a mobile application. However, this isn’t the case with the company’s website – an absolute must-have.
There are several scenarios:
The main areas of work for the promotion of online business:
It performs great together: business analytics state that digital marketing budgets tend to increase every year. Meanwhile, online promotion is 40% cheaper than offline marketing and its potential is unlimited.
…are two different things. You need both to measure different processes and business performance.
Key Performance Indicators (KPI) show if you reach the goals you defined for a certain period of time. You set the scale to estimate if your plans are attainable and if everyone works hard enough to achieve the desired KPI. Motivation is KPIs key component that’s why you don’t set unrealistic expectations for your workers.
Every KPI is a metric, but not every metric is a KPI. Business metrics are objective current indicators and exist regardless of whether or not they fit into your KPI.
Example: gross margin is one of the key business metrics but you do not necessarily include it to every worker’s KPI list. If we’re talking about business KPI, this is significant. However, for the first few months in a new market, you might even have different priorities than gross margin. Another example is the customer satisfaction rate – a standard KPI but not a business metric.
At some point, RGray agency was in the shoes of a market newcomer. From our company’s experience, the uber important KPIs while entering the new market are a number of Customers Acquired, Customer Acquisition Cost, and Coverage (how many people have heard about my company/product).
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” —Charles Darwin.
The economic crisis always occurs together with the social crisis and related response in society. Events of this magnitude are reflected at every step, so it is worth taking into account consumers’ preferences, priorities, and purchasing power. A crisis is a period of a sudden change of values, a time when secondary things fade into the background, become redundant, and an unjustified waste of money.
It’s worth mentioning business during the current pandemic crisis. However, this is not the first and not the last crisis for the world economy – its development is cyclical and constantly experiences ups and downs. Catching the right moment is one of the important ideas.
What first comes to mind when you hear about the Economic crisis? Unemployment? Reductions in enterprises? Difficulties in doing business? This is exactly what happens, but you should not forget about the other side for you as an ingenious entrepreneur: it’s a time of unexpected successful decisions and opportunities that rarely happen in normal times. For many reasons, entering a new market can be successfully combined with a period of crisis.
Changes that have positively affected the business and allowed to prove itself from a new angle:
What do potential customers expect from you as a business during the crisis?
You can’t be too careful about business
From business during the crisis period, we gradually moved to risk management. The task of the latter is to anticipate, prevent and, if necessary, find optimal solutions for the smallest issue that may occur.
This is an extremely practical approach, which indicates your readiness for a serious step – entering a new market. We advise the following ideas:
We prepared more information on the following topic for the US specifically – Must-have elements for your Go To Market strategy for the US market. Our guide will be useful for those who set ambitious goals and make efforts to achieve them.
We are glad you have read so far.
Make sure everything is clear with the Final Checkpoints:
We shared our experience and step-by-step instructions for entering a new market. RGray Team sincerely wishes you good luck and we’re always ready to help – you know where to find us:)