Market entry challenges
Entering the market with a new product involves various challenges. These include, for example, knowing who the target group is and who has a sufficiently high willingness to pay. If you know the ideal customer for your own offering, it is also important to understand where and how to address them in the best possible way. Therefore, the definition of the target group should be followed by an analysis of customer needs and values as well as suitable communication and sales channels.
Another challenge is to set the optimal time frame. After all, an overly ambitious timetable for market entry and its financing leads to decisions being made in haste, and it is no longer possible to implement all the measures necessary for successful market entry. A carefully developed go-to-market strategy helps to overcome all these hurdles.
Definition of the strategic basis for market entry
On the way from the product idea to the market entry strategy, it should first be clarified what added value the product offers:
- Is it an innovation that can be used to address a new target group?
- Are there already comparable offerings, but the new product offers specific benefits or improvements?
This is followed by the integration of the product vision into the overall strategy. The budget as well as time and personnel resources are defined in line with the priorities. In the case of a particularly innovative product, for example, the focus could be on establishing it quickly in the market in order to get ahead of the competition.
Selection of suitable target segments
Another important step is the selection of suitable target segments in which the product is to be positioned. Central to identifying the segments with the best fit is detailed market data. This allows not only market size and growth to be assessed, but also the competitive landscape and entry barriers that the company must first overcome. In this way, the overall potential of a market entry can be precisely estimated.
The right pricing
It is also necessary to answer the question of how revenue is to be generated with the product. The definition of a revenue model is closely linked to the pricing of the product. In the pricing process, a strategy should be defined for setting the price, but also for enforcing this price. The individual requirements of each market also play a role.
The market entry map
Once a solid foundation has been laid for the go-to-market strategy, concrete goals can be defined: Which customers from the selected target segments should be addressed? The most attractive customer groups can be identified, for example, on the basis of sales potential or opportunities for customer retention. Next, the sales model should be adapted to the requirements of the market. Direct sales with the company’s own sales team are just as conceivable as cooperation with intermediaries if resources are available.
It’s all in the mix
Precisely tailored communication plays a major role in strategy development. The right mix enables relevant messages to be optimally communicated to the target customers. The preferences of customers for a certain type of approach must be ascertained and evaluated in advance. If several channels are used, they should be harmonized by means of structured multi-channel management. To be able to reflect changes in the market, it is essential to regularly reassess the success of communication via the various channels.
Detailed roadmap for implementation
To keep track of all the important aspects and steps of the market entry strategy, a detailed roadmap is needed in which relevant milestones are recorded. In particular, it should contain a concrete timetable that makes it easy to see whether the market launch is still on schedule or needs to be readjusted. To guarantee maximum flexibility, different scenarios can also be integrated into the roadmap, for example in response to different anticipated developments.
Structure as a strong framework
A solid structure is essential to successfully implement the defined roadmap. The internal organization must be defined and a sufficient infrastructure must be available in good time. It is also important now to nominate the staff responsible for individual topics and task areas such as the management of communication channels. In this context, different company divisions and departments such as marketing and sales should not be considered independently of each other. In a further step, these structuring measures should be consolidated in processes. It is particularly important to consider the necessary know how on the part of the company and the individual staff responsible. This is because knowledge and resources are rarely already fully available, so that restructuring or training must be carried out. Once a possible need has been identified, it must be included in the schedule. This is how a successful and timely market entry can be achieved.
Project experience with go-to-market strategies
Over the past years, Roll & Pastuch has already provided strategic and operational support for various market entries:
- Conceptual design of a go-to-market strategy for a leading global medical device manufacturer including market analysis, segmentation, multi-channel concept, market model and detailed implementation roadmap
- Market analysis, target customer definition, definition of service offering and target price per segment with value argumentation and processing roadmap for a leading Asian technology group
Design your market entry
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