Opening up and conquering new markets requires a thorough analysis of the market and meticulous preparation. Starting from a longlist, those markets that are promising are identified according to defined criteria. From the remaining shortlist, the markets with the best market opportunities are prioritised. You can then begin to develop these new markets in a structured and analytical manner. Strategic decisions require profound knowledge about markets, market forces and competitors. Especially when entering new markets at home and abroad, comprehensive preparation for market entry is important.
Four approaches to opening up new markets
1. use of new distribution channels
2. addressing new target groups
3. regional expansion
4. international expansion
Opportunities and risks in opening up new markets
Entering new markets brings both opportunities and risks for your company. We reduce the risks arising from a lack of market knowledge or misjudgement so that you can successfully take off in your new market.
Questions you should ask yourself if you want to enter new markets
- Which country, region, customer segment or industry sector do you want to enter?
- What is your market entry strategy?
- Do you want to enter the market through a joint venture, acquisitions or partnerships?
- With which market positioning are you entering the market?
Finding the right international market
Companies face the challenge of finding the right markets for their products and services. If these target markets are countries, there is a list of about 200 potential countries to choose from, which are in principle possible sales markets. To avoid relying on "friends" and gut feelings, the "right" markets should be identified analytically. Ask yourself the following questions:
Form of market entry
- Does a local presence make sense?
- Should the market first be sounded out with commercial agents?
- Are there other local sales agents or cooperation partners that can be used?
Demand for the product
- What is the purchasing power?
- What are the buying habits?
- What market potential can be assumed?
- What is the market volume/size?
- How is the market developing (is it increasing, stagnating or decreasing)?
- Would the product have to be adapted to local characteristics? (Price, quality, packaging, etc.)
- What competitors are there in the market? A few big ones, many small ones?
- What are their market shares?
- What is the current pricing policy & can I keep up with my offer here?
- Is there a "grey, unofficial market" that also has to be taken into account?
Financing & Funding
- Are there state or federal subsidies that can be used?
- Are there initiatives, e.g. joint participation in trade fairs?
- Are there any special features with regard to import and export regulations and customs requirements?
Special features of the market
- How stable is the country?
- What is the legal situation like - also with regard to the enforceability of one's own demands?
- How stable is the current currency & what are the currency fluctuations of recent years?
- Can one get on with English as a business language or which language is used?
- What is the local infrastructure like in terms of energy supply, transport routes, etc.?
- Are there religious, political or other local characteristics that are relevant?
Market development for an international outsourcing provider
We supported an international outsourcing provider in gaining a foothold in Germany. The overall market and competitor positioning were analysed and matched with the client's existing portfolio of services. Based on this, the offer was adapted for the specific market. Together we developed and implemented a sales strategy to conquer the new market.
Entering new markets
We support you in opening up new markets with a market entry strategy including opportunity and sales planning for this market.
Planning to expand into a new market?
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Market development is the process of 'opening up' a new market, working on it from the outset.
International market development is the process of entering new foreign markets, where previously only the domestic market or certain foreign markets have been served.
Market development costs are the financial outlay required to enter a new market. This includes assessing the right market, the preparatory work and the actual costs of entering the market.
In particular, the conditions in the target country need to be carefully assessed. This includes the legal situation, the stability of the economy and currency, the local language, the infrastructure and much more.