Challenge Advisory is extremely useful to any company wishing to expand their brand to new and foreign markets. Client with Challenge Advisory benefit from over fifty years of experience throughout its functional new market entry team to provide you, the client with a substantial network of resources to help with expansion nationally and even globally.
By choosing Challenge Advisory as consultants for new market entry, clients will ensure that their brand will be successfully integrated into any new market the client desires with great value in any investment. The market entry process for any client will be fast and effective, with improved success and minimized risk, allowing for thorough tests of the market before the client decides to invest in the long term.
Challenge Advisory provides the client with the management services they require in a new country, optimizing logistical chains and providing regular reports to ensure the client is fully satisfied. Should the need arise, Challenge Advisory will also manage the litigation associated with expanding to a new country; we have a wide range of contacts in all corners of the globe to ensure that any transition is as smooth as possible.
We provide the client with support services such as product localisation, presentations, marketing collateral, bid and proposal support, promotional activities, trade events and business development in an effort to familiarise the client and their product with their new surroundings.
Challenge Advisory’s approach to new market entry is thorough; we offer detailed market evaluations, effective business plans and structured strategies that give the client the market presence they require to thrive in their desired region. Challenge Advisory’s new market team will work closely with the client, benefiting from our network of executive connections. We offer flexibility and scalability depending on the success of the client’s venture, and will provide detailed infrastructure for the client in their desired market.
Market Research - Challenge Advisory provides the client with extensive foreign market research including feasibility studies, market overview and analysis, and identification of business opportunities. We also provide detailed qualitative and quantitative research.
Entry Strategy - Challenge Advisory provides the client with assistance designing and developing a product strategy for localization, and liaise them with distributors, suppliers, joint ventures, franchisers and other partners.
Marketing and Promotion - We create detailed marketing strategies tailor-made for your chosen market, equipping the client with the marketing materials and strategies required to gain a significant foothold in the region of choice.
Testing - Challenge Advisory can help the client to minimise risk by signing off on a pilot project designed to imitate a large-scale initiative without adversely affecting resources.
Planning - We assist the client in constructing a detailed action plan for their chosen market, including marketing plans, campaigns, and clearly defined milestones to ensure the strategy is realised satisfactorily.
Exit Strategy - If the marketing strategy is unsuccessful, Challenge Advisory can also assist in adapting and changing to suit the market, or to devise an exit strategy that minimizes the damage caused.
An Effective Approach
Any new market will have entrenched competition, often with many years’ experience of the market, a presence and a level of trust and existing relationships with the key decision makers. Any competitor with high levels of customer service, reasonable pricing and a progressive attitude to new products and solutions will be difficult to dislodge and all that can be done is to nibble away at their second tier accounts while building awareness in their key accounts.
The focus should therefore be on competitors that have an issue with service, pricing, new products or have become complacent. A focus on pricing should be lowest on the priority list but in any marketplace there will be the opportunity to attack on service and complacency. Potential customers will always be receptive to new solutions that address their needs.
To overcome existing relationship and market presence issues it is often best to attack new markets where the business already has some presence in the key customers, perhaps supplying minor items at a relatively low level. If this is not possible then finding a suitable partner (particularly a sales organisation) with existing access to key decision makers if often the key to success.
New market entry in B2B markets then is always a challenge but assuming the potential is researched appropriately, a strong plan is in place and the business has its key people on-board there will always be potential opportunities where entrenched competitors drop the ball.
Expanding into a new market can be an effective way to leverage your core business for growth. But it takes a disciplined process to accurately assess the potential of each growth opportunity, because a bad bet can bog down your business.
Investing the appropriate level of resources in market analysis, selection, and entry method can create a foundation for success in the chosen market. We suggest following five steps to properly assess the opportunities and risks of a new market.
Define the Market
Clearly defining your market may seem like a simple step, but before you identify who you want to sell your product to, it is difficult to understand their needs. You’ll want to consider the demographics, location, and common interests or needs of your target customers.
Perform Market Analysis
Expanding into new markets involves a great deal of market research in addition to target customers. You’ll want to develop an in-depth understanding of market growth rates, forecasted demand, competitors, and potential barriers to entry. This is particularly important if you are looking to enter a relatively undefined market.
Assess Internal Capabilities
Much of your decision on how to enter a new market (build, buy, or partner) is driven by an internal capabilities assessment. During this stage, you should ask yourself questions like: How much of our core competencies can we leverage? Do we have sales channels/infrastructure/relationships in place? What time-to-market considerations exist?
Prioritize and Select Markets
Once you’ve completed the market analysis and internal skills assessment, it is time to prioritize potential markets for expansion. Markets should be prioritized based on the strategic fit and your ability to serve them. Answer questions like: are there gaps in this marketplace that we can fill (and do so better than our competitors)? What value do we deliver to this market, and how much would the market be willing to pay for it?
Develop Market Entry Options
Once you’ve selected an attractive market, you’ll want to determine the appropriate level of organic investment vs. expanding through a series of acquisitions (or some combination of the two). If you have complementary infrastructure or sales channels in place, you might want to consider an organic approach to growth. The key steps here are to develop the business plan, case for investment, and implementation work plan, including owners, timelines, tasks, and key milestones to enter. If you are entering an entirely new market, with limited core assets to leverage, you should consider a joint venture/partnership or acquisition. These options require target identification, prioritization, due diligence, deal negotiation and close. Prior findings can be leveraged to identify the appropriate mix of market entry options that is linked to the business’s core competencies, assets, and overall strategy.
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