7 Ways to enter an international market

Outline:

Video Presentation

7 Ways To Enter An New International Market

What To Do When Entering A New Market

Who To Partner When Entering A New Market



7 Ways To Enter An New International Market



Direct Exporting

Direct exporting is selling directly into the market you have chosen using the resources you already have. You are in charge of promoting the products but many companies turn to agents or distributors to represent their products further in the market in this way, agents become the face of your company.


Partnering

When entering international markets, collaborating is almost a must. Partnering can take a range of forms, from a straightforward co-marketing partnership to a complex production and distribution strategic partnership. In those markets where the society, both corporate and social, is radically different from your own, collaboration is an especially valuable approach as local partners offer local community expertise and connections.

Piggybacking

This is especially unusual method of accessing the internationalmarket.. You will want to contact 2nd companies ( who are not your direct competitors) to see if your goods or service can be used in their inventory for international markets if you have a particularly fascinating and special product or service that you offer to big domestic businesses that are already in global markets.


Licensing

Licensing is a relatively sophisticated system where a corporation transfers the license to another company to use a product or service. If the purchaser of the license has a significant market share in the market you wish to enter, it is an especially effective tactic.


Franchising

For businesses that have a repeatable business model (e.g. food outlets) that can be quickly transferred into other countries, franchising works well. One thing you want to make sure is that Your business model can be either very distinctive or have good name awareness and can be seen worldwide.

Joint Ventures

Joint ventures are a special type of collaboration that includes the formation of a third entity that is operated separately. It is the form that usually takes 1+1=3. Two firms plan to work together in a specific market, whether regional or commodity, and to accomplish this by forming a third entity. Typically, risks and benefits are divided equally. Sony/Ericsson Mobile Telecommunications is the perfect example of a joint venture. (We typically advice advocate the formation of joint ventures for service companies) so that they can reach Japan

Buying a Company

The most suitable entrance method could be the acquisition of an established local business in certain markets. This could be that the company has considerable market share, you are a direct rival or this is the only way for the company to join the market due to country regulations. This is usually the most expensive way to enter the market.


Let’s talk about Direct export and partnering as we help these two cases & these are the simplest forms out of all we discussed.


Manufacture Home base ( Exporting ) Exporting is when you make your products inside of the country

The benefits of exporting:

  • You are manufacturing products in home based thus, it is less risky than overseas based manufacturing, you have more control in overseeing product quality, consistency and manufacturing cost.

  • Gives an opportunity to "learn" overseas markets before investing in physical presence in a foreign market

  • Exporting is chapter than producing outside of the country as you have to find manufacture and train people how to make the products


You can also choose to manufacture your products in the targeting country

At some point, when your sales volume increases, it might make sense to set up a manufacturing facility in the targeting country.


What To Do When Entering A New Market



Research the market

  1. Demand validation

  2. Gaining insights around industry and market overview of the US market

  3. Predicting and Measuring market size

  4. Understanding Demographics and Psychographics by working on user persona

  5. Estimating locations

  6. Analyzing Competitor


Now when you answer these six questions, you should have a better understanding in the market you are going into so you can try to come up with goals in the new market to help you navigate through the market entry activities.


  • Setting the goals

And Remember you are just entering the market, so have the projection of growth with different time frames. The first few years, it makes more sense to invest in business than expect the revenues right away. You should be investing in things like learning about potential customers, marketing and branding mostly.


Revenue based goals:

  1. Identify revenue goals.

  2. Figure out specific purchases you need to get.

  3. Determining the closing rate and the number of opportunities.

  4. Identifying the quantity of marketing qualified leads. ( cold reach out)

  5. Identifying the numbers of sales qualified leads. ( personalized reach out)

  6. Estimating the number of visitors to your website and other channels

Other things you might want to consider include:

  1. Production based goals such as numbers of marketing materials made and distributed

  2. Distribution channel goals such as how many effective channels did you find?

  3. Awareness based goals such as how many social media reach, website tractions, media mention you created etc..

  4. Partnerships based goals such as How many influencers and local affiliates you made working relationship with

  5. Community building based goals such as How much time being spent on community building, how many interaction made with customers on social media

  6. Market insight learning based goal - such as how accurately were you able to learn about the customers’s interest and demands ?


  • Creating strategy & Executing the strategy

  1. Localize the brand presence and messaging specific to the target market

  2. Understanding where the attention is in the local market

  3. Picking up the right media distribution channels, creating contents and distributing contents and measuring the success and repeat

  4. Learning what gets traffic and adjust creative production

  5. Finding branding partners, including all size of media, influencers & bloggers

  6. Finding sales partners & prospects such as direct potential buyers, affiliates, agents etc..


Who To Partner When Entering A New Market


3 ways to do this: You can hire a American Market consultant / export agent / a local marketing agency


A USA consultant can help you research and understand the market that is specific to your needs. Then help you identify the goals and create strategy


American Export agent or a distributor can help you prepare an export plan, make contact with potential buyers, negotiate deals with the buyers and handle the logistics and documentation of the exports. Some agents even do marketing efforts on behalf of you.

A local marketing agency can help you through all the processes mentioned from market research to strategy execution by bringing their own local knowledge as an organization.


But how can you find these people when you are in Japan?

Finally, there is a 4th way.


A business coordinator like us who can act as a consultant and a business sourcer of the USA market can help you craft a market entry strategy and find a local partner to execute the plan and manage the project on-goingly so you can have a best shot at entering US market smoothly using local a service without a headache.


In any way you choose to enter the new market, doing a successful brand building, and marketing is critical in entering a new market. Brand is the first thing you want to start building when entering the new market in order for you to be profitable long term. So whoever you choose, make sure to choose a partner who can advise you on a good branding strategy in the targeting country.




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