Expanding into a new market is sure to be scary for many businesses. Sometimes, you have no idea what to expect and what might happen when you make the decision to move operations. It can easily turn out as rewarding or a nightmare, depending on how you plan and execute everything. Hopefully, the former will be your portion when you take on the strategies that we will list in this blog. So, here are five of them that you need to note down:
Define the Market
You’ll be able to define the market once you carry out some research and feasibility study. Once you carry out the research, you’ll be able to know whether the market is ideal for your business. Some of the information that you’ll need to collect includes:
- The size of the market.
- Consumer perceptions and culture.
- Market trends.
- Domestic and international competition.
- The kind of value proposition you bring in.
- Barriers to entry.
- Government support.
All of these factors will help you to define the market appropriately. Figure out what will make your products or services unique and attractive to customers. Make changes to your product with your industrial design team to create tweaks that can relate to the local market. Remember that they have probably been getting the same services from local companies and businesses. Thus, as you expand, what are you offering that’s different from the rest.
Oftentimes, many companies and businesses expanding to new territories ignore the degree of competition that’s involved. If you can’t define how you will be different in that new market, then it’s better off to halt the expansion plan.
Understand Your Customer
Who are you targeting? What is the target market? What do your potential customers want or like? These are some of the questions that you need to ask yourself whenever you’re making the expansion to a new market.
You don’t just move into a new market without learning about consumer tastes and preferences. Tastes and preferences tend to differ from one place to another. Thus, if you assume that what your locals love is what the international market will cherish, then you might be in for a rude shock.
When trying to understand your customer, learn about their business culture. This will act as a guide on what they will want to associate themselves with.
Develop the Strategy Document
You need to come up with a strategy document that will outline all the plans you have put in place for expansion. How you’re going to do it, what you should consider, etc. You need to write down the fine details of your market entry strategy.
Avoid keeping everything in your head, as having it on paper will help in actualization. The strategy document will also be useful when you’re seeking financing. It will also act as a planner for your export marketing. You can either hire a professional to make one for you, or make one yourself. Later on, a lawyer, banker, or accountant can pass through it to ensure that it’s perfect.
Keep an Eye on Competition
Yes, there will always be competition. However, little or much, you need to keep it in mind. When you’re making your strategy, you should refer to the competition and find ways to differentiate yourself. When you differentiate yourself from the competition, you will get the right ways to target the market. Consumers will see clearly any differences that you show from the other market participants.
Consumer culture, tastes, and preferences will also guide you when you’re trying to analyze the type of competition that you will have. You need to keep an eye on local blogs and news sources too, as they have vital information that may affect you.
Decide How You Want to Enter the Market
How are you planning to enter the new market? You have to outline a clear path and strategy to help you get into the market. Determine if it is suitable as is or whether you need to invest in a new brand. This is because consumer tastes and preferences tend to differ from one place to another. Thus, you might have to completely rebrand when you’re getting into a new market. This will help you fit in with what the locals expect.
Final Thoughts
These strategies will help you enter and expand into a new market quite easily. You need to take note of them and work your way into getting your business operational in a foreign land.
About Author
Felix is the founder of Society of Speed, an automotive journal covering the unique lifestyle of supercar owners. Alongside automotive journalism, Felix recently graduated from university studying business law and finance and enjoys helping students and other young founders grow their projects.
