Making the decision to begin exporting is an exciting milestone for any business. That said, a great deal of planning is required to ensure that your exporting journey goes smoothly.
A Market Entry Strategy (MES) is your business’ plan for how best to deliver your goods or services in a new target market. A winning MES helps set your business up for success and can help avoid common pitfalls in the exporting journey.
Below are five key tips to consider as you build your MES.
Tip #1: Research, Research, Research
Market research is essential to the success of your MES, as it helps you pinpoint your target audience, identify competitors, learn about market trends and understand how all these components impact your export journey.
Many businesses begin with secondary market research. Secondary market research involves gathering answers and insight from information collected by someone else. You might also hear this referred to as desk-based research, because you can do it all from the comfort of your computer, making it a low-cost and effective place to begin crafting your MES.
Secondary market research pulls from a range of resources, including websites, reports, surveys, summaries from focus groups or even social media. A market research checklist can help you plan your research, so you know you have the information you need.
Tip #2: Determine How to Get From A to B
A key element of your market entry strategy is just that – determining how to enter the market.
Referred to as the mode or method of entry, there are a range of different ways to get your products and services to your new customers in your target market:
- With direct exports, you run the show. You are responsible for working directly with your customer base, organizing everything from contracts and marketing to shipping and invoicing.
- Indirect exports enable you to work with a foreign distributor or representative to market your goods or services.
- Partnerships offer the opportunity to work closely alongside a local business that aligns with your own. By partnering with another business in your target market, you can share ideas and resources and learn about the local economy.
- Acquisitions enable you attain or invest in a business in your target market, helping you quickly gain access to a new customer base.
Tip #3: Stand Out in a Crowded Market
To entice new customers in your target market, you need to know your business’ unique selling proposition (USP). In other words, what makes your goods or services different from all the other goods and services in the market? You can begin to pinpoint your USP by answering a few initial questions:
- Who is your target customer? What pricing, marketing, and packaging will resonate with this audience?
- Who are your competitors in this market, and how is your product or service unique?
The answers to these questions will change based on your target market, as your business will have a different USP from one market to the next.
Once you have a strong understanding of what you offer to your target market, you need to determine whether your business is ready for the ups and downs of exporting. There are many aspects that determine your export readiness, but a few key areas of consideration include:
- Resourcing: Do you have the staff to support market research, international marketing, additional paperwork and increased production?
- Funding: Do you have the finances necessary to cover the direct and indirect costs of exporting? It can take time to establish a reliable customer base in a new market, so it’s best to arrange sufficient funding in advance.
- Product Readiness: Is your product or service ready for the international market, or will you need to adapt to suit the tastes of your new customers?
Tip #4: Expect The Unexpected
While your business may be well-prepared to tackle the quirks of domestic markets, exporting offers a range of unique things to consider.
- Environmental differences: If your target market has a different climate than your own, you may need to consider new ways of shipping and storing products to decrease the risk of your product getting damaged. For example, a bag of chips may burst in high altitudes, or a chocolate bar might melt in hot climates.
- Cultural and geographic differences: Around the world, people have different tastes and preferences. If you export consumable products, you may need to adjust the flavour profile of your product to meet the expectations of your new customers.
Language differences: Cultural preferences aren’t confined to taste. Before exporting your products, research your business name and logo to ensure there are no unwanted meanings in other languages or cultures. Don’t forget to translate any written content in your packaging or marketing into the preferred language of your target market. Consulting a local translator will help you capture all the cultural nuances.
Tip #5: Build Your Network
While secondary research is an excellent place to start your MES, you might not be able to find answers to all your questions online.
By visiting your target market in-person, you can get a clearer sense of what a typical retail space looks like, how products are displayed, how services are marketed, and what type of products are popular. You can also connect directly with your potential customers, getting a clearer sense for their tastes and preferences.
International travel may not be possible for everyone, but there are still plenty of opportunities to get specialized insights closer to home. Consider attending webinars, networking events or seminars focused on export and international trade in your local community. These events let you hear first-hand where the unexpected challenges in exporting are, and what the benefits could be for your business.
Start Planning Your Market Entry Today
Unsure which mode of entry is best for your business? Do you have questions about how to update your packaging? Can’t find networking events near you?
Export Navigator has an abundance of resources to help you get the answers and information you need. Reach out to an export advisor today to get started.
