Do you know why many businesses fail to succeed upon entering new markets? One of the major reasons behind it is their weak market entry strategy. Launching a business and entering a new market might seem easy on paper, but when put into practice, it requires overcoming various hurdles and obstacles. A well-rounded and strong market entry strategy is a basis for a business’s long-term success and stability.
Shikana Group specializes in investment advisory services. Their advice will not only help you develop a tactical marketing strategy but also navigate barriers to entry and long-term risk management. Given their expertise, if you follow the advice below, the market entry process will be smooth and hassle-free for you.
1. Educate yourself about the size of the market and its potential growth
If you decide to enter a new market without prior knowledge of its inner workings, you are most likely to be unsuccessful. A comprehensive market assessment is essential to determine if your operations would be able to survive and grow within the market or not. To evaluate the market size and its growth potential, you must address such as:
- a) What type of consumers would be attracted to my product/service?
- b) Do my consumers have a growth potential? If so, then by how much?
- c) What factors will facilitate my growth in this market?
- d) What factors will hinder my growth in this market?
- e) How many competitors do I have, and who are they?
- f) What is the market share of my competitors?
- g) What is the regulatory environment, and would it serve as an obstacle or facilitator for my business growth?
Once you answer these questions, you will clearly know if the market you plan to enter serves more risks or rewards. It will help you decide if the market is suitable to achieve your business goals or not. If the market seems beneficial, you can use the gathered data to develop a well-rounded market entry strategy for your business.
2. Get a hold of the pricing scenario
Once you have a fair idea about the market’s size and potential growth, you must thoroughly examine the pricing landscape. To decide the right price for your product, you must educate yourself about:
- a) Your competitors’ prices
- b) Consumers’ willingness to pay
- c) Production costs
- d) Fixed incremental costs
- e) Consumer perception of competitors’ products
Knowing these aspects will help you decide the accurate range for your products. Wrong entry prices often serve as a basis for business failures; therefore, it is essential for you to determine a price that gives you a hand above your competitors and also attracts customers to your product.
3. Choose your mode of entry wisely
You must thoroughly think about how you should get your products in the market and to the consumers. The options you can go for include:
- a) Selling directly to end-users
- b) Selling through intermediaries such as wholesalers or distributors
- c) Selling directly to consumers but with the help of a sales agent.
- d) Selling through online platforms
- e) Partnering with a local business (franchising, licensing, joint venture, or co-production)
You must decide your final mode of entry by considering various internal and external factors such as government policies, type of industry, infrastructure conditions, and intellectual property rights. You can also look at previous successful market entries to form your decision.
Looking for assistance?
A structural approach to developing a successful market entry strategy will save both your time and money. Shikana Group offers one of the best investment advisory services, so you do not need to worry anymore. Their in-depth knowledge of East African markets will allow you to make the right decisions. You can call them in case of additional queries.