Businesses entering new markets face countless challenges including the pressure to be recognized. Apart from diversifying the product line, there is the additional pressure of maintaining relevance. According to statistics, 50% of businesses look forward to generating additional income from new products and services. With that in mind, here are some strategies to consider when entering a new market.
1. Intensify your marketing activities
This is a non-negotiable strategy for businesses entering new markets. A product launch creates an opportunity to interact directly with the market, which comprises end users and business intermediaries. Nobody wants to introduce a new product onto the market only for it to get rejected. Even worse, the product may lose its relevance after a short-lived high performance. You must consider these issues in your marketing activities and align them with your market entry plans.
Hopefully, when you access resources like Jeff Walker’s product launch formula review, it will draw your attention to vital factors to consider when developing your marketing strategy. If you have already been in the business market, it would be wrong to assume you already have a customer base. If you want to improve your chances of succeeding, your diversification strategy should be well-defined in all marketing activities. Companies like Cosmopolitan Magazine suffered a huge defeat with their new product, Cosmopolitan Yogurt. Marketing experts believe that the company’s diversification strategy was poorly incorporated into marketing activities. Subsequently, the new product failed to compete with other existing brands.
2. Decide on your mode of entry
Your mode of entry into the new market will determine what needs to go into your strategic plan. Entering a new market differs from starting a business for the first time. For many companies that do this, statistics indicate that they have been operational for at least five years. This means they already have ample business market experience. This often offers some advantage over first-timers or newcomers.
In choosing your mode of entry, deciding how to get your product onto the market is recommended. For example, are you willing to deal directly with the end user? If that option does not align with your operations, how about dealing with wholesalers and distributors? In business, they are the intermediaries between companies and the consumer. When you decide your mode of entry, you can then proceed to facilitate your sales process.
3. Research your market
Have you wondered why “New Coke” failed to make it after it entered the market? The Coca-Cola Company noticed a decline in sales and thought it wise to gain renewed access to the market by introducing a new product line. Since it was coming from the Coca-Cola Company, consumers loved the new product. Unfortunately, they were not impressed when the original beverage was taken off shelves and replaced with New Coke.
For years, new market entry experts say poor research contributed hugely to the failure. This means the risk of failure is extremely high when your market research is poor. It is advisable to consider existing competition, trends, needs and consumer perceptions of your new product. You must tackle your research from a detailed angle to avoid throwing your market entry out of order.