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Brand managers and marketing managers tasked with business expansion often look to enter new markets and expand their business through new market development.
An exciting space, business expansion nevertheless can be risky for a business. It brings unfamiliar challenges and new competitors, but with the right approach and the right market development strategy, entering a new market can give your business increased reach, more awareness and more profits.
We talk you through four tips on how to expand your business into new markets successfully.
Success is only achieved if you know what you are aiming for. Be clear about why you are entering the market and why this is the right strategy over other options like new product development or extension of existing markets. You’ll also want to review your brand communication strategy. By clearly articulating the why and what success looks like, you will have a clear focus for the rest of your planning.
These goals need to be both reasonable and measurable business goals and work across both the short- and long-term.
In many organizations, it is inevitable that the short-term nature of revenue and target achievement will trump the long-term view of brand development, brand value and equity. However, a marketer needs to establish a strategy and goals to build long-term brand health over 5-10 years, and support those goals with an investment to achieve them.
You should also ensure the marketing team, executive team and board are all aligned around your business goals to provide support in achieving the short- and long-term business goals.
Arguably the most critical step in breaking into new markets, research will underpin the strategic development and operational execution of the brand expansion.
You need to understand your new market - and your existing offering and brand values in relation to your new market - better than all of your competitors to successfully enter a new market.
When investing in research and intelligence for new market development, understand and define the pain point you are solving with your product or service, as it relates to that new market. It is essential to discard assumptions you might have about the direct and easy transferability of the product into a new space.
Cultural and societal differences can impact the perception of your brand and offering. Identify your new audience in the new market:
Align with a good research partner who can deliver both qualitative and quantitative research for your new market expansion. You can also sit down with your future customers in new markets and have in-depth conversations with them. With this information, you can then map the ideal customer, personas, customer journey and go-to-market strategy and test this as part of your research.
Part of your research will be competitor research. It is crucial to perform an in-depth competitor analysis to study existing businesses in your selected new market. A strong understanding of your competition, their brand promise, their value proposition and their offering will ensure you better understand the market and the environment in which you will need to compete.
Your value proposition, offering and go-to-market strategy need to be strong enough to beat out and withstand established competition. If your only differentiator is price, and you will need to buy extensive brand awareness, it is a higher risk proposition for the business to enter this market.
Use your research to determine if there is anything your business should change or improve before entering the market.
Once you know what success looks like, who your audience is and what the competitive situation looks like, you can build your go-to-market strategy.
As part of your decision to enter a new market, you need to look at your brand hierarchy and architecture and determine if it is suitable as-is or whether you need to invest in a new brand. You may even want to enter into a partnership with a brand that already exists in that market.
Controlling your brand presentation and visual identity for a new audience is vital, in order to help them understand and recognize you in crowded markets. A tool like Brandfolder Content Automation allows you to take existing collateral and templates and customize it for new markets using automated meta-data among other things. Functionality like this makes it cheaper and faster to build out market position.
Entering a new market is a costly exercise, especially if done poorly. By planning well, conducting extensive research and knowing your go-to-market strategy, you will be able to expand your business through new market development.
When you enter into a new market, you need to be prepared to take your customers on a meaningful journey.
Tune into this on-demand webinar to learn how to empower your team to create an engaging customer journey at every stage of the funnel – and ultimately drive more revenue.
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