Breaking into a new market is never easy. But good timing, sufficient planning, and lots of research and analysis can help you win over that new customer. Here are some key steps and tips on successfully executing new market penetration:
Analyse the Sector
The most important aspect of expanding into new markets is intelligence. Doing lots of market research will help you develop an in-depth understanding of market growth rates, forecasted demand, competitors as well as potential barriers to entry. Market Analysis is essential and must be completed before you build your strategy.
Review the Competitive Landscape
A Competitor Analysis report is another fundamental part of your research; the questions you need to be asking are who your biggest competitors are, what their value proposition is, who their customer is, their pricing structure, and how they stand out from other suppliers.
Develop a Strategy
Once you have completed your market research, it’s time to build your business strategy. It’s important to have a document in place before moving forward. This plan should include everything from marketing penetration planning and customer profiling to marketing and PR.
Define Your Target Market
Within your new market sector, you will need to consider everything from demographics and location to common interests to define your target customers. You also need to decide which customers you are going to target in the short, medium and long term. And you may also need to prioritise potential markets based on strategic fit.
Develop Market Entry Options
Once your target customers have been defined, you will need to decide how to deliver the goods / services to your new target market. At this point, you may also need to consider the financial implications such as organic vs. inorganic growth (or a combination of both).
Appoint a Sales Team
When targeting a new market, it may feel like you’re starting from the bottom again. So it’s time to get back to basics, especially with sales techniques. Appoint a special sales force to help you with this new venture or re-train existing resources.
Identify Your Ideal Customer
Once you get the ball rolling, you can start to identify your ‘ideal customer’. Keep your eyes on the data and you may be able to establish a niche client very quickly. Continuing to sell within your niche will help you build your reputation, and never underestimate the power of customer success stories to help you sell to another customer in the same boat.
Build Your Reputation
There is no better business than referral-based business because half the job is already done for you. Word of mouth marketing is invaluable so ensure you offer the highest standard of service to develop a good reputation within your market.
Invest in Marketing
Whether you choose to take advantage of free social media tools or you plan on investing into bigger campaigns, it’s important to always budget. There are so many ways you can market your product (including events, online marketing, print advertising, POS marketing and more), so decide how your money will be divided into these areas.