Four Steps for New Market Development to Help You Enter a New Market and Grow Your Business
When entrusted with growing their firm, brand managers and marketing managers frequently attempt to enter new markets and grow their business through new market development.
Business expansion is an exciting area, but it can also be dangerous for a company. With the correct approach and market expansion strategy, breaking into a new market can expand your company’s reach, recognition, and profitability. It also brings with it new obstacles and rivals.
We walk you through four suggestions for successfully expanding your company into new areas.
Table of Contents
1- Identify Your Goals
Knowing what you’re striving towards is necessary for success. Explain your approach for entering the market and why it is the best one compared to alternatives like the creation of new products or the expansion of existing markets. Additionally, you should evaluate your brand communication plan. You will have a clear focus for the remainder of your preparation by outlining the why and what success looks like.
These objectives must span the short- and long-term and be acceptable, measurable company goals.
- When do you plan to introduce your brand ?
- When should the scale be completed ?
- What percentage of the market do you hope to capture, and from where will this market share come
- How will the company’s growth affect the value of its brand ?
- What else will the brand expansion offer, besides money ?
The short-term nature of income and target achievement will invariably take precedence over the long-term view of brand development, brand value, and brand equity in many organisations. To build long-term brand health over 5–10 years, a marketer must develop a plan, set goals, and support those goals with financial investments.
In order to assist the achievement of the short- and long-term business goals, you need also make sure that the marketing team, executive team, and board are all aligned on your business objectives.
2- Examine a new market
Research will support the operational execution of the brand expansion and serve as the foundation for the strategic development of what is arguably the most important stage in entering new markets.
To successfully join a new market, you must comprehend it better than all of your rivals, as well as your current product and brand values in relation to it.
Understanding and defining the pain point your product or service is addressing in relation to that new market is important when investing in research and intelligence for new market development. It is crucial to dispel any presumptions you may have regarding the product’s direct and simple transferability into a new setting.
Social and cultural variations might affect how people view your brand and product. Determine your new market’s audience:
- What issue are you addressing on their behalf ?
- What task do they need to complete ?
- What location are they in ?
- What do they find interesting ?
- What ethnic characteristics do they have ?
- What would you say about their demographics ?
Join forces with a reliable research partner who can provide qualitative and quantitative research for the expansion of your new market. You can also have in-depth discussions with your potential clients in new markets by sitting down with them. The ideal customer, personas, customer journey, and go-to-market plan may then be mapped using this data, and tested as part of your study.
3- Observe the competition
Your research will include competitive analysis. It is essential to do a thorough competitor analysis to research current companies in the new market you have chosen. You will have a better awareness of the market and the environment in which you will need to compete if you have a solid understanding of your competitors’ brand promise, value proposition, and product.
You must have a compelling value proposition, a compelling product offering, and a go-to-market plan that can outperform and overcome established rivals. It is a higher risk proposition for the firm to enter this market if your primary point of differentiation is price and you will need to spend a lot of money on brand awareness.
Before entering the market, use your research to determine if there is anything that your company needs to change or improve.
4- Choose your entry strategy for the market.
You can develop your go-to-market plan if you have a clear understanding of what success looks like, who your target market is, and how the market is currently competitive.
You must consider your brand hierarchy and architecture when deciding whether to enter a new market and decide if it is appropriate to do so as-is or whether to make an investment in a new brand. You might even wish to collaborate with an established brand in that industry.
It’s crucial to manage your brand’s visual identity and presentation for a new audience in order to make yourself understood and recognisable in crowded markets. Using automated meta-data and other features of a tool like Brandfolder Content Automation, you can adapt existing templates and collateral for new markets. This kind of functionality makes it easier and faster to establish a market position.
Trying to break into a new market may be expensive, especially when done incorrectly. You may grow your company by creating new markets if you plan well, do thorough research, and know your go-to-market approach.
Are You Prepared To Develop A New Market Plan ?
You must be ready to lead your clients on an engaging journey when you enter a new market.
Learn how to empower your team to design an engaging customer journey at every stage of the funnel in this on-demand webinar to eventually increase revenue.