For start-up companies or a pre-existing ones, entering a new marketing can be daunting and stressful as there are many requirements and obstacles when entering a new market but the potential for growth and revenue are endless, so this is one of the main contributors to a business to enter a new market or for a start up to enter a specific market for that reason.
There are a lot of factors to take into consideration when entering a new market as a lot preparations are required such as market research, product/service compatibility, competitors and market share and brand awareness. But with the right level of preparations from a business with things like market research, competitors, market value, product/service integration and target audience.
Before you begin expanding into different territories, you have to make sure that you have the internal resources to pull it off. Do you have the people and capital that you’ll need to expand into new markets? If not, do you have the ability to secure what you need? Expanding into a new market may seem like a great idea, but not every business is ready for it. Make sure yours is by doing an internal assessment prior to the launch.
Research the market.
Before you expand, you have to determine what your competitors are already doing in the new market. Are there any gaps in their distribution? Do you have ideas on how to improve on their marketing strategies? It might be a wise idea to talk to your wholesale distributor and see if he has any advice for you. Since wholesale distributors work directly with the retailers, they hear a lot of feedback about what’s selling, what’s not, and what customers are demanding. Tapping into this knowledge may give you an edge over what your competitors are already doing.
Once you’ve done the research on your market, you may find that customers in other territories have different preferences than the customers you already serve. For example, let’s say you sell vanilla scented candles, but have found that customers in the new market prefer fruitier or feminine scents. In this scenario, it might be wise to expand your product line as you enter these new markets.
Start marketing early.
Some companies make the mistake of waiting until the product has entered the new territory to begin marketing efforts. However, brands should always be proactive and start aggressive marketing campaigns prior to the launch in a new market. Utilize all channels including social media, billboards, television and radio, that are relevant to your brand. Keep the message consistent, and when you begin to work with wholesale distributors, make sure that the signage they use in stores matches your other branding efforts. All of this marketing will help stir up consumer interest and create buzz around your product before you even get there!
So in conclusion, preparation when entering a new market is key, as going into the market blind will cost you and your company valuable time and money and getting it wrong will set your company back and not only would you lose the market you were interested in going into you would also lose money as it takes an investment to enter a new market and if you do not have the capital to back it up it will cause a problem.