How to Prepare your Product to Enter a New Market
One of the biggest opportunities that companies can take is exploring market expansion. Previously we introduced how companies can identify if they are ready to expand, as well as how companies can identify if their team or mindset it ready, but in this article, we will be exploring what you can do to prepare your product for a new market.
Preparing for a new market is a complicated process, but it can be simplified with the right knowledge and preparation. There are multiple areas which you can explore to potentially prepare yourself and your product for your new target market. Below are some of our tips and advice to guide you through this process.
Evaluate if there is need and opportunity for your product
The success of any business in a new market is dependent on how well you can navigate that market. This means being able to identify a need and evaluating if there is an opportunity for your product in the new market.
Market research should be done before deciding to enter a new market, but there are some simple ways you can get started. You should look at the size and location of the market, as well as its competition, before making your final decision.
You can start this evaluation by identifying:
- Market size – is the new market big enough for your product or service to succeed?
- Accessibility – how easy is it for you to access and talk to your target audience? Remember to look not only at language and distance barriers, but also explore regulations and cultural elements too.
- Positioning – refine your unique selling point and position yourself well against competitors in the market.
- Profitability – Consider what resources you would need to go into this new market and calculate what your return on investment would be.
Research your potential customer and get to know them
An important step in preparing for a new market is to research the potential customer base and identify their needs. You should not try to change you product completely, but rather focus on how you can make adjustments to be more attractive and suitable to your potential customers.
This can be done through a variety of methods, but we believe that talking to your customers is the most effective method. Survey those that are your customers at the moment, and may be related to your new target market. For example, are people from your new target market already using your product, and why?
Next, you would need to research your competitors in the market, and the types of customers they currently have. Identify how you differentiate from them and what your unique selling point is in comparison.
Understand your Capability Map
When entering a new market, we need to look at our capabilities and what the market opportunity looks like in order for us to decide if this is the best move. To see what opportunities there are, you can use a capability map which helps define different areas of expertise that your company has at its disposal, as well as gaps in those areas so that we know where our weaknesses are.
By mapping out your capability, you will be able to understand what steps would need to be taken in the new market and what resources would need to be improved upon in order to achieve the desired results. Properly defined capability maps are able to help save money, decrease risk and enable business growth.
Questions to ask yourself
- Do you have any existing customers who are already based in your target market? Have you spoken to them?
- Is the new market you are targeting large enough to support and grow your product?
- Have you explored your TAM (Total Addressable Market), SAM (Serviceable Addressable Market) and SOM (Serviceable Obtainable Market)?
- Is your target market accessible for you? Are you able to support your customers there easily?
- Have you researched who your competitors are in the new market? Have you identified who their customers are?
- Have you made a capability map for your company? Have you identified what areas you need to address in order to service your customers in the new market?
Interested in joining a dynamic program to support you through your Market Entry needs and collaborate with you to achieve commercial outcomes. Explore one of our market entry programs now! Applications are currently open for South Korea, United Arab Emirates and United Kingdom.
This article is part of the Understanding Market Expansion Series, stay tuned for more articles and insights.