“If you fail to plan, you are planning to fail!”: Marketing strategies and entering new markets

Doesn't everyone want to be successful and increase profits? Of course, but how does one maintain the steady climb to the top? 

Some companies diversify their existing products and reinvigorate their brand with their existing customer and market base. Whilst others look at new or emerging markets to penetrate especially when the demand and profits are not there in their existing market, it can be time for a shift in direction. 

To achieve this growth and stability one must look carefully and invest a great deal before entering new markets. This means that they need to understand the market, the customers, and their own company abilities to be successful in this new area. 

This is when market research and developing new market strategies come into play. It is not wise to think that existing strategies will work with a new market either. Failing to plan, plan to fail…

After watching a video on entering new markets, i found that when competing for growth and entering a new market, you must really understand the market you are about to jump into. Being agile, adaptable and cost competitive helps to engage stakeholders.  But also, there needs to be an understanding of how the company can drive that new market, how they can resource it and what they can bring to that market. To really get to know what and how, a plan needs to be developed, a strategy on how to enter the new market. By doing this you can capture more value which means more margin and of course mitigate risks. 

I think that by entering a new market you have to be extremely organised in your approach and know all of the risks. It can't be cobbled together and is just something that happens. I agree that by doing your home work and understanding each element of the new market will set you up for the best opportunities and hopefully success. 

I would think that there have been some shocking exits for a number of companies because they were not adequately prepared or didn't have an understanding of what they were getting into. They failed to plan...We all weigh up the risks and opportunities in our day to day lives (sometimes it works out and other times it doesn't but you analyse all the information to make a call) so why would it be different when trying a new market?

And what if this new market isn't local? That's a whole different kettle of fish. Here you're looking at cultural challenges when exploring new and unfamiliar locations. Not only are there differences in costs of changing or investing in a new location but there are so many cultural elements that need to be taken into consideration. Again, the entering new markets video showed how some companies invest in neighbouring countries but tended to not venture further. Although there are risks, the chances of there being huge differences and misconnects was lower than moving off-shore or greater distances. For example asia pacific based companies tended to focus on neighbouring asia pacific locales that were in their proximity, Western Europe chose to focus on entering areas in Eastern Europe. They didn't over extend themselves by venturing too far away.

I think by starting out small and keeping things closer to the home base makes it easier to manage, maintain and eventually grow. Just like little stepping stones… one step at a time. Be successful close to 'home' and continue the push to new areas. 

So having a well thought out and detailed plan that understands what your competitors are doing, where they are going, your new customers and the market itself will help with entering a new market... it will either make you or break you.

RM