Entering into a new market is one of the most effective way to leverage on the core service & product for growth. But likewise, the risk that is involved is also proportionately high. A set of proper analysis is required to accurately assess the potential of each market opportunity, because one bad decision can have an immense impact on your business.
Investing the appropriate level of resources in market analysis, selection, and entry method can create a foundation for success in the chosen market. Based on various analysis and reports, here are 4 common challenges to resolve before the market entry.
1. Lack of Understanding On The Local Dynamics
It may be easy to assume that every market’s needs are standardized across the globe. But differences in the smaller details can be a game changer on the demand of your product & services. Clearly defining your market may seem like a simple step, but before you identify who you want to sell your product to, it is essential to first understand the market dynamics before sending in your troops.
2. Lack of Credibility In The New Market
One of the challenge during new market entry is relating and convincing the target prospect to trust in the service & product. This is usually due to the lack of understanding and awareness. Existing vendors have the advantage of a proven performance record which is something that new companies entering into the scene need to catch up to by providing more evidences of the credentials & reliability of their services.
3. Deciding The Right Investment Allocation For The Project
Entering into a new market is a high stake maneuver because the chance of loss are relatively high. Being able to cut loss when necessary is also part of the plan. But the having enough resource investment may be the key attribute to whether the entry will be a success or not.
4. Getting the Right Talent To Execute Out The Plan
Already worldwide, organisations are facing an issue with finding the right person for the job. And workers who have done well in certain markets are not necessarily the right person as well in a different market, and this is especially true in new markets where local cultures matters.
So if you want to enter into a new market with lesser risk on your investment, what’s a better alternative?
Before deciding to fly over your best talent to a new market and incurring expenses such as air-flights and accommodation for their stay there. First ensure that the market is primed to accept and receive your products & service by engaging a local sales force on a contractual basis.
The benefits of doing so are aplenty but the immediate advantage is that the additional expenses on air-tickets & accommodation are now converted into a form of investment with potential Return of Investments (ROI). It can be used to hire local help who knows and understand the language of the local market.
Engagements on a contractual basis also allows flexibility for the company to navigate away easily if the market response are not favourable from the outreach efforts.
If the market response is favourable, the company will be more assured and confident to invest into market penetration.
About Canvass Consulting
Canvass Consulting is a turnkey sales agency for companies to engage on a short-term basis for new market sales feasibility studies. Our key service helps our clients generate more revenue streams by executing sales efforts on their behalf in the local market and our strength lies in the ability to penetrate the market efficiently & effectively within a short period of time to provide our clients clarity on the market’s response to their products & services.
At Canvass Consulting, we are your local sales team that helps discover revenue potentials in new markets while reducing your risk, time, human resources & cost in your bid for expansions beyond your shores.
Contact us for a further discussion.