February 2011

Will 2011 bring you a new market?

Dear Reader

If one of your resolutions for 2011 was to identify new opportunities for your business, this edition of Better Insight is for you. In it, you’ll find a handy checklist designed to help you decide if now is the right time to take the plunge and enter a new export market. If you get it right, the rewards can be considerable.

Will you enter a new market in 2011? Read on to find out if this is one resolution you should definitely keep!

Happy reading!


Martin Holliss

e: martinh@research-insight.com
t: +44 1235 812 456
m: +44 7931 376501

Thinking About Entering a New Market?

The first step to finding a new opportunity for your business is understanding what opportunities are out there. Our checklist below will help you think about the opportunities that exist in export markets. There might well be some you hadn’t considered before.

Why do you want to enter a new market?
Of course, the main reason is likely to be potential demand – but you may have other reasons too, such as achieving economies of scale, learning from competing on a larger stage or responding to what your competitors are doing.

In which overseas markets are people buying identical or similar products or services to the ones you offer?
For example, if one of your immediate competitors is active in a particular country, that could signal a developing market that you could take advantage of too.

Which of the markets you’ve identified have the greatest potential?
This might not necessarily be only in terms of sales. There could be other opportunities too. For example, reaching a new sector or demographic with your product.

What barriers will you face in entering these markets and how will you overcome them?
Among the barriers you might come up against are legislation, a dominant competitor, distribution issues and culture and language.

Why do customers in the markets you’ve identified buy what you and your competitors are offering?
The reasons could be very different to what you expect. For example, is your product seen as everyday in your domestic market but viewed as a luxury item in your new target market(s)? If so, how you could price and market it accordingly?

What can you do differently from and/or better than your competitors?
And how are they likely to react to your entry into ‘their’ market? For more help with researching competitors, take a look at our November newsletter
.

What are the sales growth trends in each market in which you are interested?
If the market is mature, for example, will you be able to differentiate yourself enough to make an impact? If you’re breaking new ground, are you large enough to shoulder the costs of developing the new market?

Tips for Entering a New Market

Keep an open mind
New opportunities are opening up all the time. Some analysts, for example, are pointing to the CIVETS (Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa) as potential growth markets in the next few years.

Think strategy, not just sales
It’s easy to let the possibility of increased sales influence your broader objectives for your business. So be sure to ask yourself how entering a particular market will fit with the purpose and vision of your business.

Focus on your potential customers
By working through our checklist, keeping an open mind, and continually asking yourself what your prospective customers want, you’ll be well on the way to developing a strong, customer-aligned offer.

LinkedIn Question

This month we have posted a question on LinkedIn: “Has entering a new overseas market been good for your business?”

Click on the link above to contribute with your views and comments, and we will endeavour to answer them if we can.

Resources

UK Trade and Investment’s Export Marketing Research Scheme will help you carry out export marketing research on all the major aspects of an export venture. And if your company has fewer than 250 employees, you may be eligible for a grant of up to 50% of the cost of the research project.