3 tips to consider before entering a new market
Updated: Dec 10, 2018
Amazon is one of the world’s leading online retail giants, yet in Australia, their presence was almost non-existent – until recently. They’re the newest addition to the Australian retail landscape, after finally expanding Down Under in December last year.
So, like Amazon, if your company has spotted an opportunity, perhaps with a new product or service, new region or route to market, or to target new audiences, there are a few things to consider before your business takes the plunge.
Determine if there’s a demand
Whether they’re companies or individuals, understanding the profile of your potential customers in a new market is one of the simplest ways to determine if there's a demand for your offering, and how you can create a point of difference – crucial elements for a successful business.
Information about your potential and new audience such as demographics (who they are), behaviours (what they do) and psychographics (how they think) are all vital insights that will help your business understand and decide if the new market is a good fit. At Appco Australia, we work with our clients across various markets to increase their customer and donor bases. We’re highly knowledgeable and experienced in helping clients gain traction in new markets through successful direct marketing campaigns.
Don’t underestimate the power of market research
Many entrepreneurs often overlook one of the fundamentals when expanding their business’s horizons – market research. Sure, you can make assumptions about what’s happening in the market but things often and do change rapidly, so it's a good idea to gather factual, well-researched data that will support your strategy.
It may seem complex or time-consuming, however, market research is actually one of the most effective and simplest ways businesses can understand market trends, determine market share and maintain their competitive edge. Getting this part right from the start can save you a lot of headaches down the track, not to mention time and resources.
Create a strong team
The idea of expanding into a new market can be exciting, but, maintaining your core business will still need to remain a priority. Managing both can be a balancing act, so you will need a strong team that will support your vision.
The resources you require will depend on your diversification strategy. If your company is planning to launch an entirely new enterprise, away from your core business, does your team have any experience in or knowledge of the new market?
If your strategy is to launch a new product within the existing enterprise, will current team members be able to handle additional work? It’s a good idea to review your available expertise to see how your resourcing plan may look if you decide to expand.
Expanding a business is exciting, but there are associated risks so, before you rush in, smart businesses like Amazon spend the time confirming there is demand for their products or services, conduct thorough market research to guide their decisions, and have a solid team in place to help deliver their strategy and vision.